(a) Following the issuance and acceptance of a Franchise and as compensation for the benefits and privileges granted under the Franchise and in consideration of permission to use Grantor's street and rights-of-way, the Grantee shall pay to the Grantor a Franchise Fee upon Grantee's annual Gross Revenues in the amount set forth in the Franchise Agreement. The Franchise fee shall be considered to be imposed by Grantor upon Grantee and not upon individual cable Subscribers. Grantee may list the applicable amount of Franchise Fees on the Subscriber's bills but such amounts shall be considered to be part of the rate approved by the Grantor in the case of regulated rates or charged by Grantee in the case of non-regulated rates and not as an amount in addition to such rate.
(b) The Grantor, on an annual basis, shall be furnished a Statement within one hundred twenty (120) days of the close of the calendar year, certified by an officer of the Grantee or audited by a Certified Public Accountant, reflecting and attesting to the total amounts of gross annual revenues and all payments, and computations for the previous calendar year. At any time and upon thirty (30) days prior written notice and no more than once per calendar year, Grantor shall have the right to conduct an independent audit of Grantee's records, in accordance with generally accepted accounting principles and if such audit indicates a Franchise Fee underpayment of five percent (5%) or more, the Grantee shall assume all reasonable costs of such an audit.
(c) Except as otherwise provided by law, no acceptance of any payment by the Grantor shall be construed as a release or as an accord and satisfaction of any claim the Grantor may have for further or additional sums payable as a Franchise Fee under this chapter or any Franchise Agreement or for the performance of any other obligation of the Grantee.
(d) In the event that any Franchise Fee payment or recomputed amount is not made on or before the dates specified in the Franchise Agreement, Grantee shall pay as additional compensation an interest charge, computed from such due date, at an annual rate equal to the prime lending rate plus one and one-half percent (1-1/2%) during the period for which payment was due.
(e) In the event any payment is not received within thirty (30) calendar days from its due date, Grantee shall further be assessed an additional amount with regard to the payment of one hundred dollars ($100.00) per day. In the event any payment is not received within seventy-five (75) calendar days from its due date, Grantee shall be assessed an additional amount with regard to the payment of five hundred dollars ($500.00) per day. Grantee's liability for such amount in such cases shall not be subject to but shall be in addition to remedies set forth in Section 755.29 herein for Franchise violations and may be taken from the Performance Bond in Accordance with Section 755.24 herein.
(f) Franchise Fee payments shall be made in accordance with the schedule indicated in the Franchise Agreement and shall be accompanied by a report in summarized form of Grantee's gross receipts during the period and the computation of the payment amount upon which revenues shall be listed by category, including but not limited to subscription revenues (such as basic and pay services), nonrecurring revenue (such as pay-per-view), and nonsubscriber revenues (such as advertising).
(g) Grantor represents that it is its intention to be able to charge up to the maximum amount of Franchise fees allowed by law which is presently set at five percent (5%). This maximum may be amended during the term of the Franchise by any higher maximum amount that may be set by FCC regulations or the Cable Act as the same may be amended from time to time. Grantor may change the percentage to be set forth in the Franchise. Agreement by ordinance or resolution of Grantor's Council and written notice to Grantee, as long as the same does not exceed the maximum amount Grantor is authorized to collect as allowed by law at the time of the change and as long as Grantor collects the same percentage from all other Cable Operators operating a Cable Television System in the Franchise area. Grantee shall implement the change within sixty (60) days of written notice of the same by Grantor.
(h) In the event the obligation of Grantee to compensate the City through Franchise Fees is lawfully suspended or eliminated, in whole or part, then Grantor may, upon written notice to Grantee, commence proceedings to amend the Franchise Agreement, it being Grantor's desire to obtain consideration similar to that provided by Grantee through Franchise Fees. Grantor and Grantee agree to negotiate such amendment in good faith; provided however, that nothing shall require Grantee to provide any goods, services, capacities or capabilities in lieu of Franchise Fees that are not generally provided by Cable System operators in lieu of the provision of Franchise Fees.
(i) No term or condition in this chapter or the Franchise Agreement shall in any way modify or affect the Grantee’s obligation to pay Franchise Fees. Although the total sum of Franchise fee payments and additional commitments set forth elsewhere in this chapter or the Franchise Agreement may total more the maximum allowable percentage of Grantee's gross revenues in any 12-month period, Grantee agrees that the additional commitments are not Franchise Fees as defined under any federal law, nor are they to be offset or credited against any Franchise Fee payments due to the Grantor, nor do they represent an increase in Franchise Fees to be passed through to subscribers pursuant to any federal law.
(j) Payment of the Franchise Fee under this chapter or the Franchise Agreement shall not exempt Grantee from the payment of any other license fee, tax, levy, assessment or charge on the business, occupation, services, property or income of the Grantee which is or may hereafter be lawfully imposed on all entities engaged in the same business as Grantee.