(A) A franchisee herein shall pay to the city as consideration during the life of the franchise the sum of not less than three percent of the annual gross receipts of such franchise. Such payment shall be in addition to any other payment owed to the city by the franchisee and shall not be construed as payment in lieu of personal or real property taxes levied by state, city, or county authorities. A franchisee shall annually file with the city 45 days after the expiration of each fiscal year a financial statement showing in detail the gross annual receipts as defined herein of the franchisee during that calendar year. It shall be the duty of the franchisee to pay to the city at the time of filing said financial statement the sums of consideration hereinabove prescribed.
(B) In the event the franchise should be terminated or forfeited prior to the end of the five year term, the franchisee shall immediately submit to the City Council a financial statement prepared as before required, showing the gross receipts of the franchisee for the time elapsed since the last period it paid to the city the required percentage of gross annual receipts, and the franchisee shall pay to the city not later than 30 days following the termination of the franchise, a like percentage of such gross receipts and any other sums legally due and owing to the city.
(C) In the event that any statement and/or payment is not made on or before the applicable date fixed in division (A) hereof, interest on such payments shall apply from such date at the current prime interest rate, but not less than 10% per annum.
(D) The city shall have the right to inspect a franchisee's records showing the gross receipts from which its franchise payments are computed and shall have the right of audit and recomputation of any and all amounts paid under the franchise. No acceptance of any payment by the city shall be construed as a release of or an accord or satisfaction of any claim the city might have for further or additional sums payable under the terms of this chapter or for any other performance or obligation of a franchisee hereunder.
(E) Payments of compensation made by a franchisee to the city pursuant to the provisions of this chapter shall not be considered in the nature of a tax, but shall be in addition to any and all taxes which are now or hereafter required to be paid by any law of the United States, the Commonwealth of Kentucky, or the city.
(F) Sales taxes or any other taxes which are collected from subscribers by a franchisee and are to be remitted to a governmental agency, shall be deducted from the annual gross revenues.
(G) Should the FCC or other governmental agency cease to regulate the amount of percentage sums payable hereunder, then in that event the City Council and any franchisee shall have the right to immediately renegotiate the sum and manner of calculation of franchise payments payable hereunder shall be conditioned upon and subject to agreement on same between the city and any franchisee.
(Ord. 92-06, passed 12-17-92; Am. Ord. 93-01, passed 5-20-93)