A. A licensee, in consideration of the privilege granted under a license for the use of public rights of way to construct and operate a cable system, must pay the city five percent (5%) of the licensee's gross revenues within its license area during the period of its license. A licensee must pay the license fee due to the city for the preceding quarter within thirty (30) days of the end of that quarter.
B. Any payment of license fees to adjust for a shortfall in the quarterly payments for the preceding year must be made no later than the filing date for the annual financial statements as specified in subsection D of this section. An adjustment for any overpayment will be credited in one or more subsequent quarterly payments.
C. Unless a license agreement provides otherwise, a licensee must file with the city within thirty (30) days of the end of each quarter a financial statement showing the gross revenues received by the licensee during the preceding quarter and the number of subscribers.
D. A licensee must file within three (3) months of the end of its fiscal year the licensee's or the licensee parent's annual financial statements for the preceding year audited by a certified public accountant. The licensee will bear the cost of the preparation of all financial statements.
E. The city may inspect and audit any books and records relevant to the calculation of gross revenues, and recompute any amounts determined to be payable under the license. The reasonable cost of the audit, up to the amount determined to be due to the city, will be borne by the licensee if the annual payment to the city for the preceding year is increased by more than three percent (3%) as a result of the audit.
F. In the event that a license payment is not received by the city on or before the due date, interest will be charged from the due date at the annual interest rate then charged for unpaid federal income taxes. In addition, the licensee will pay a late charge of five percent (5%) of the amount of the payment. Interest and late charges will not be imposed for any payment necessary as a result of the yearly adjustment provided for in subsection D of this section, if the payment to correct for a shortfall does not exceed ten percent (10%) of the total payments made during the year. In the event such payment exceeds ten percent (10%) of the total payments made during the year, the licensee will be liable for interest and late charges for the entire amount due.
G. When a license terminates for any reason, the licensee must file with the city within ninety (90) days of the date the license operations stop an audited financial statement showing the gross revenues received by the licensee since the end of the previous fiscal year. Adjustments must be made at that time for license fees due to the date that the licensee's operations ceased. (Ord. 05-589, 5-23-2005)