(A) A grantee shall pay to the city a franchise fee in an amount equal to 5% of the grantee's gross revenues, or such other amount as may be specified in the franchise ordinance; provided, however, that if the franchise specifies an amount, that amount shall be subject to increase or decrease should federal limits on fee payments be eliminated or changed. To the extent that grantee or its affiliates offer bundles of cable and non-cable services at discounted rates, and the matter is not otherwise resolved by GAAP principles or governing law, revenues attributable to cable service will be based upon a pro rata comparison of charges that apply to persons who purchase the cable services and non-cable services separately.
(B) GAAP applies. Records of cable system revenues and expenses shall be kept in accordance with Generally Accepted Accounting Principles (GAAP), without regard to the corporate level at which such records are maintained.
(C) Not in lieu of any other assessments, tax or fee. The franchise fee is in addition to all other fees, assessments, taxes or payments of general applicability that the grantee may be required to pay under any federal, state, or local law, in accordance with 47 U.S.C. § 542.
(D) Payments. Franchise fees shall be paid in accordance with the schedule set forth in this ordinance, and late payments shall be subject to the additional charges set forth in this Cable Ordinance.
(E) No accord or satisfaction. No acceptance of any payment by the city shall be construed as a release or an accord and satisfaction of any claim the city may have for further or additional sums payable as a franchise fee or for the performance of any other obligation of the grantee. However, the city may conduct an audit of franchise fee payments, and the city thereafter shall not claim franchise fees for the audited period outside any identified as due by such audit; every such audit shall occur not later than three years following receipt of a particular payment.
(F) Payment records. The city may, from time to time, and upon reasonable advance written notice, audit grantee's books and records necessary to determine whether gross revenues and franchise fees have been accurately computed and paid. Such audit does not extend to grantee's confidential or proprietary business records. In addition to paying all fees owed plus interest, in the event that the city reviews the grantee's franchise fee payments, and finds that the grantee has underpaid the fee owed for any year in an amount exceeding 10% of the franchise fees actually paid, grantee shall pay the reasonable cost of the city's review.
(Ord. 24-2002)