(A) As compensation for any franchise granted, and in consideration of permission to use the public right-of-way in the operation of its cable system, and because the city will incur costs (other than application fees) in regulating and administering the franchise, grantee shall pay to the city a franchise fee
in the amount equal to five percent of grantee's gross revenue, or such other amount as the City Council may set by resolution.
(B) The franchise fee assessed shall be paid quarterly, to be received by the City Treasurer not later than 45 days after the close of each quarter of grantee's fiscal year.
(C) on a quarterly basis, grantee shall provide the city a complete and accurate statement verified by a financial officer of grantee indicating gross revenues for said month, listing every revenue source, and depicting gross revenue computations.
(D) On an annual basis, grantee shall, if requested by the city in accordance with § 4.04.1102, file a complete and accurate statement certified by grantee's chief financial officer, indicating all gross revenues for said year, listing every revenue source, and depicting gross revenue computations. If the city has any concerns or issues relating to contents of said report, the city shall have 60 days to notify grantee and request additional information. Grantee shall have 60 days to provide additional input and data to resolve any concerns or issues to the city's satisfaction. Thereafter, the city may, at its sole discretion, request that said statement be certified by an independent certified public accountant, at grantee's sole cost; provided, however, that any such request shall be made within 60 days after grantee's response is received.
(E) At any time during the term of a franchise, the city shall have the right to conduct an independent audit of any and all records of grantee that are related to gross revenue reports or computations. Grantee shall cooperate with any such audit making readily available any and all information requested by the city relating to the audit. In the event that any such audit indicates a franchise fee underpayment of five percent or more, grantee shall pay all costs of said audit. Grantee shall maintain in a readily accessible place all such records for a minimum of four years after any payment period that such record pertains to.
(F) In the event that any franchise fee payment is not made on or before the applicable dates heretofore specified, interest shall be charged monthly at a monthly rate of one and one-half percent. In addition, if any franchise fee is not paid in full within 15 days after receipt of notice from the city as to the delinquency of such payment, a late fee in amount of five percent of the delinquent amount shall be assessed.
(G) In the event grantee claims to have overpaid by more than five percent the amount of franchise fee actually due during any given quarter, it shall file an application with the city within one year after said payment was made. The failure to timely and properly make such claim as required herein shall constitute a waiver by grantee of any right to such claimed overpayment, whether by refund, offset, credit or any other accommodation. All such applications shall state the amount of claimed overpayment, the reason for the claimed overpayment, and sufficient documentation to allow the city to verify grantee's claim. Upon request by the city, grantee shall provide any further information that is deemed by the city to be relevant to said claim. All such applications shall be considered by the City Council, and the City Council's decision with respect to such applications shall be final.
(Ord. 4315, passed 11-12-96)