(A) Application of franchise fee.
(1) The town finds the following:
(a) The public ways of the town and state to be used by the grantee in the operation of its system within the boundaries of the franchise area are valuable public properties acquired and maintained at great expense to its taxpayers;
(b) The grant to the grantee to the public ways is a valuable property right without which the grantee would be required to invest substantial capital in right-of-way costs and acquisitions; and
(c) The administration of this chapter or the franchise imposes upon the town additional regulatory responsibility and expense.
(2) Therefore, a grantee of any franchise hereunder shall pay to the town a franchise fee in an amount as designated in the franchise agreement. The town reserves the right to change the franchise fee as stated in the franchise agreement, by adopting an ordinance establishing the new franchise fee rate and allowing reasonable notice to the grantee for administration of the change. This franchise fee payment shall be in addition to any other fee and commence as of the effective date of the franchise. The town shall be furnished a statement of the payment by the Vice-President for Finance of the grantee, reflecting the total amounts of gross annual revenues and computations for the period covered by the payment.
(B) Franchise fee in addition to other tax. This payment shall be in addition to any other tax or payment of general applicability owed by the grantee to the governments or other taxing jurisdiction. Payment of the franchise fee made by grantee to the town shall be in addition to any and all taxes of general applicability which are now or may be required hereafter to be paid by any federal, state or local law.
(C) Acceptance by the town. No acceptance of any payment by the town shall be construed as a release or as an accord and satisfaction of any claim the town may have for further or additional sums payable as a franchise fee under this chapter or for the performance of any other obligation of the grantee.
(D) Failure to make required payment. In the event that any franchise payment or recompute amount is not made on or before the dates specified herein, grantee shall pay as additional compensation an interest charge, computed from the due date, at the annual rate equal to the commercial prime interest rate of the town’s primary depository bank plus 3% during the period that the unpaid amount is owed.
(E) Quarterly payments. The franchise fee and any other costs, charges or damages assessed shall be payable quarterly to the town. The grantee shall file a complete and accurate verified statement of all gross annual revenue within the franchise area during the period for which the quarterly payment is made, and the payment shall be made to the town not later than 45 days after the expiration of each calendar quarter. Quarterly computation dates are the last day in the months of March, June, September and December.
(F) Audits. The town shall have the right to inspect the grantee’s income records and the right to audit and to recompute any amounts determined to be payable under this chapter. Audits shall be at the expense of the grantee if the additional amount due is greater than 2% of the amount paid. Any additional amount due to the town as a result of the audit shall be paid within 30 days following written notice to the grantee by the town which notice shall include a copy of the audit report.