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(A) For the reason that the streets of the city to be used by the grantee in the operation of its cable system within the boundaries of the city are valuable public properties acquired and maintained by the city at great expense to its taxpayers, and that the grant to the grantee to use the streets is a valuable property right without which the grantee would be required to invest substantial capital in right-of-way costs and acquisitions, the grantee shall pay to the city an amount equal to 5% of the grantee’s gross annual revenue received by the grantee from the operations of its cable system to provide cable services within the franchise area. If the statutory 5% limitation on franchise fees is raised or the federal statute deletes the franchise fee limitation entirely, then the franchise fee may be subject to renegotiation.
(B) This payment shall be in addition to any other generally applicable tax or payment owed to the city by the grantee.
(C) The franchise fee shall be payable quarterly to the city within 45 days after the end of each calendar quarter, and shall be accompanied by a complete and accurate certified statement of all of the grantee’s gross revenues for the period.
(D) The city 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. Any additional amount due to the city as a result of the audit shall be paid within 30 days following written notice to the grantee by the city, which notice shall include a copy of the audit report.
(E) The period of limitation for recovery of any franchise fee payable hereunder shall be four years from the date on which payment by the grantee is due.
(F) The grantee shall pay interest on any net franchise fee underpayment for the calendar year at the annual prime rate - or the maximum rate allowed by law, whichever is less - from 45 days after the end of the calendar year until the date the payment is received by the city.
(Ord. 1846, passed 12-7-98)