(A) Within thirty (30) days after receipt of a written request for payment, the grantee shall remit to the government the verifiable costs, up to a maximum of five thousand dollars ($5,000.00), which the government may incur in connection with the transfer or change in control of a franchise granted hereunder. The thirty (30) day period shall not begin unless and until the grantee receives copies of all invoices for which the government seeks reimbursement.
(B) For the reason that the roads of the government to be used by the grantee in the operation of its system within the boundaries of the government are valuable public properties, acquired and maintained by the government at great expense to its taxpayers, and that the grant to the grantee to use said roads is a valuable property right without which the company would be required to invest substantial capital in right-of-way costs and acquisitions, the grantee shall pay to the government a franchise fee in an amount equal to three percent (3.0%) of grantee's gross revenue attributable to the cable service and non-cable service operations of the grantee within the territorial limits of the city.
(C) The government reserves the right to review the amount of the franchise fee annually and to increase it up to the maximum fee or tax on grantee's gross revenue permitted by federal or state law. The government shall give the grantee sixty (60) days notice before raising the franchise fee.
(D) The payment of the franchise fee shall be in addition to any other tax or payment owed by the government by grantee.
(E) The franchise fee shall be payable quarterly to the government and the grantee shall file a complete and accurate report, signed by and certified as accurate by an officer of the grantee, of all gross subscriber revenues received within the territorial limits of the city during the previous three (3) month period, and said payment shall be made to the government no later than forty-five (45) days after the expiration of the quarter when due. The gross revenue report from operations of the grantee within the franchise area shall be prepared by a qualified financial officer in accordance with the Codification of Statements on Auditing Standards promulgated by the American Instituted of Certified Public Accountants and shall include: a schedule of gross revenue by category by month; a schedule of the number of subscribers by category of service by month; and a schedule of gross revenue upon which the franchise fee is based.
(F) Upon fifteen (15) days written notice, the government shall have the right during normal business hours to inspect the grantee's income records at the grantee's regional office, right to audit and to re-compute any amounts determined to be payable under this chapter provided, however, that such audit shall take place within twelve (12) months following the close of each of the grantee's fiscal years. If, as a result of such audit or review, the government determines that grantee has underpaid its fees in any twelve (12) month period by five percent (5%) or more, then, in addition to making full payment of the relevant obligation, grantee shall reimburse the government for all of the verifiable costs associated with the audit or review, including costs for attorneys, accountants and other consultants. Any additional amount due to the government as a result of an audit or review shall be paid within the thirty (30) days following written notice to the grantee by the government, which notice shall include a copy of the audit report and copies of all invoices for which the government seeks reimbursement.
(G) In the event that any franchise payment or recomputed amount is not made on or before the applicable dates heretofore specified, interest shall be charged from such date at the rate of three quarters of one percent (.75%) per month, compounded monthly, for the period of delinquency.
(H) The government reserves the right to require the grantee to collect any consumer or other tax or other fee that may be imposed by the government, the Commonwealth of Kentucky, or the federal government on cable services and/or additional subscriber services.
(I) No acceptance of any payment by the government shall be construed as an accord and satisfaction that the amount paid is in fact the release of any claim that the government may have for further or additional sums payable under this chapter.
(Ord. 1999-13, passed 11-8-99)