The grantee shall pay annually to the City, by delivery to the Director of Finance, until this franchise is terminated, a sum equal to five percent of the gross annual receipts of the grantee. If, during any part of the franchise term, there is in effect a Federal or State limit regulating the franchise fee percentage to a lesser amount, such a limitation shall apply, but only for that period such limit is legally operational. Franchise payments required hereunder shall be in lieu of any business license, occupation tax or similar levy.
A. The grantee shall file with the City, by delivering to its Director of Finance, within ninety days after the end of each calendar year until this franchise is terminated and within thirty days after such termination, a financial statement certified by a certified public accountant, or person otherwise satisfactory to the City Manager, showing in detail the gross annual receipts, as defined in Section 3.14.010, of grantee during the preceding calendar year or portion thereof until such termination. Within fifteen days after the time for filing such statements, the sum hereinabove prescribed or any unpaid balance thereof for such calendar year or for such portion thereof, as shown by such statements, shall be so paid to the City.
B. The City shall have the right to inspect and audit the grantee's fiscal records. If any independent audit of the grantee's records directed by the City shows a franchise fee error in excess of two percent in the City's favor, the grantee shall assume all reasonable costs for said audit. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further additional sums payable under this section or for the performance of any other obligation hereunder. Any refusal of the grantee to file said verified statement, or to pay said percentage in full, at the time or in the manner hereinbefore provided, which refusal shall continue for more than fifteen days following notice thereof to the grantee from the City shall be grounds for the termination of this franchise as provided for in Section 3.14.050.
C. For any full calendar year for which said payments equal to five percent of the gross receipts amount to less than twelve hundred dollars, the grantee shall so pay to the City for such year an additional amount equal to the difference between the total of such payments and the sum of twelve hundred dollars. For any part of a calendar year for which period such payments amount to a total sum less than one hundred dollars multiplied by the number of months, measured from a beginning date in one calendar month to the same date in the next calendar month, and for any fraction of such a month, at the rate of one-thirtieth of one hundred dollars per day, in such period, the grantee shall so pay to the City for such period an additional amount equal to the difference between the total of such payments and the minimum rate of one hundred dollars per month. (Ord. 2326 § 1 (part), 1980).