(A) For the reasons that the streets and other public rights-of-way that are used by the licensee in the operation of its cable system within the boundaries of the town are valuable public properties acquired and maintained by the town at great expense to its taxpayers, and that the grant to the licensee for the use of said streets is a valuable property right without which the licensee would be required to invest substantial capital in right-of-way costs and acquisitions, and because the town will incur costs in regulating and administering the license, the licensee shall pay to the town an amount no less than 5% of licensee’s gross revenues (the “license fee”).
(B) Should federal regulations be amended in the future to allow the town to receive a greater fee than the fee set forth in division (A) above, then in that event, the town shall have the right to increase the fee as specified in the license.
(C) The payment of the license fee by the licensee to the town shall be made quarterly by delivery of the same to the Town Manager on or before the twentieth day of the following month, with a ten-day grace period. If such payment is not made by the next to the last business day of the following month, the town may impose interest at a rate of 1.5% per month commencing from the date payment should have been made and continuing until the payment is made. Fractions of a month shall be considered to constitute a full month for the purpose of computing interest. In addition to interest that may be assessed under this division (C), if licensee fails to pay any license fee before the end of such grace period, licensee shall be subject to the following civil penalties.
(1) A licensee who fails to pay the license fee or any portion thereof within the time prescribed shall pay a penalty of 10% of the unpaid fee, unless the licensee shows that the failure is due to reasonable cause and not due to willful neglect.
(2) A licensee who fails or refuses to pay a license fee or any portion thereof after notice and demand by the town shall pay a penalty of 25% of the unpaid fee, unless licensee shows that the failure is due to reasonable cause and not due to willful neglect.
(3) If the cause of failure to pay the licensee fee or any portion thereof is determined by the town to be due to civil fraud or evasion of the license fee, the licensee shall pay a penalty of 50% of the amount of deficiency.
(D) Under terms specified in the license, there shall be allowed as an offset against the license fee due under this chapter any amounts licensee paid to the town during the prior quarter in privilege license taxes; provided, however, that there shall be no offset to the extent that licensee made payments of privilege license taxes on any gross income (within the meaning of the privilege license tax ordinance) that is not included in gross revenues under this chapter.
(E) The town shall have the right to inspect the licensee’s income records and the town and licensee shall each have the right to audit and to recompute any amounts determined to be payable under this chapter; provided, however, that such audit shall take place within 36 months following the close of the licensee’s fiscal year for which the audit is desired.
(1) Additional amounts due to the town discovered in the audit shall be paid within 30 days following written notice to the licensee by the town, and said notice shall include a copy of the audit report; provided, however, that licensee shall not be required to pay such deficiency until 30 days after completion of the administrative review process if licensee commences such process pursuant to § 113.106(A). If there is a deficiency in the payment of license fees to the town of 10% or more, the town may assess the cost of the audit to the licensee.
(2) Amounts owed to licensee as a result of overpayment(s) of license fees shall bear interest and shall be refunded within 30 days following written notice to the town by licensee.
(3) In lieu of direct refund to licensee under division (E)(2) above, the town may elect to grant licensee a credit against subsequent quarterly license fee payments due pursuant to this chapter until licensee has recovered the amount of the overpayment.
(F) The cost to licensee of any town right-of-way construction permit, encroachment permit, inspection, zoning review, pavement restoration, and any other fee that town imposes, under town code requirements or otherwise, on licensee’s construction activities shall be included in the license fee paid to the town.
(G) Licensee shall be entitled to offset against license fees due to the town all costs that the licensee incurs for repair, renovation, restoration, or reconstruction to comply with any requirements of the town that exceed the repair and restoration requirements set forth in § 113.086, including, but not limited to, repair, renovation, restoration, or reconstruction required by any pavement restoration ordinance or similar ordinance adopted by the town and applicable to licensee. At the time license fees are due pursuant to this chapter, licensee shall provide to the town an itemized report detailing:
(1) The amount of license fees that would otherwise be due to the town without offset;
(2) A detailed report of all costs incurred by licensee and the portion of such costs that exceed the repair and restoration requirements of § 113.086 and that are being offset; and
(3) The amount of license fees, if any, being paid to the town after accounting for the offset.
(Ord. 2003-07, passed 9-25-2003)