(A) Unless a franchise agreement provides otherwise, a franchisee, in consideration of the privilege granted under a franchise for the use of public rights-of-way to construct and operate a cable system, must pay to the city 3 % of the franchisee's gross revenues derived from the operation of its cable system within the city during the period of its franchise. Franchise fees are payable quarterly. A franchisee must pay the franchise fee due to the city for the preceding quarter within 45 calendar days of the end of that quarter.
(B) Any payment of franchise 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. Adjustments for any overpayment will be credited to subsequent quarterly payments.
(C) Franchise fee payments shall be accompanied by a financial statement showing the gross revenues received by the franchisee, with separate subtotals for each type of service for which a separate charge is made, during the period covered by the payments and the number of subscribers served, with subtotals reflecting the number for each type of service, at the end of the period. The financial statement shall be certified as accurate by an official of the franchisee who is knowledgeable and responsible for its preparation.
(D) The city may inspect any and all books and records of the franchisee specifically relating to its compliance with its franchise fee obligations, and recompute any amounts determined to be payable under the franchise. The cost of the inspection will be borne by the franchisee if the annual payment to the city is increased by more than 10% as a result of the inspection.
(E) (1) In the event that a franchise payment is not received by the city on or before the due date, interest will be charged from the due date at an interest rate of 1.5 % per month. Interest will not be imposed for any payment necessary as a result of the yearly adjustment provided for in division (B) above, if the payment to correct for a shortfall does not exceed 10% of the total payments made during the year.
(2) In the event the payment exceeds 10% of the total payments made during the year, the franchisee will be charged for interest on the shortfall.
(F) When a franchise terminates for whatever reason, the franchisee must file with the city within 90 calendar days of the date its operations cease a financial statement, certified by the franchisee's general manager, showing the gross revenues received by the franchisee since the end of the previous fiscal year. Adjustments will be made at that time for franchise fees due to the date that the franchisee's operations ceased.
(1989 Code, § 115.23) (Ord. 1988, passed 11-9-1992)