A. 1. In consideration of the privilege granted under this Franchise for the operation of a Cable Communications System, and the expense of administration pursuant to the Franchise incurred by the County, a Grantee shall pay to the County an amount equal to five percent (5%) of the Gross Revenues of the Grantee, or such other maximum amount allowed by applicable law (the “Franchise Fee”).
2. The Grantee shall furnish, on an annual basis, a statement within 120 days of the close of the calendar year, audited and certified by an independent CPA, reflecting the total amount of the Gross Revenue and all payments, deductions and computations for the period covered by the payment. Such statement shall be accompanied by a certification identifying the independent CPA and a covenant that such CPA has no financial or equitable interest in the Grantee. Upon 15 days’ prior written notice, the County shall have the right to conduct an independent audit of the Grantee’s records related to the computation of the Franchise Fee. All records necessary for such audit shall be made available to the County or its designee at the County’s offices. If such records cannot be made available at a local office within the County, then the Grantee shall pay all reasonable costs associated with providing the County, or the County’s agent, access to such records. If such audit indicates a Franchise Fee underpayment of three percent or more, the Grantee shall promptly pay all of the County’s costs of such an audit; any Franchise Fee underpayment shall be paid to the County within 15 days after Grantee is furnished with a copy of said audit. After such time, the County may deduct the amount of such underpayment from the Grantee’s letter of credit.
B. Acceptance by the County. No acceptance of any payment by the County shall be construed as a release or as an accord and satisfaction of any claim the County may have for further or additional sums payable as a Franchise Fee or for the performance of any other obligations of the Grantee.
C. Failure to Make Required Payment. In the event that any Franchise Fee or recomputed amount is not made on or before the dates specified herein, the Grantee shall pay as additional compensation:
1. An interest charge, computed from such due date, of 10 percent per annum during the period for which the payment was due.
2. If the payment is late by 45 days or more, an additional sum of money equal to ten percent of the amount due in order to defray those additional expenses and costs incurred by the County by reason of the delinquent payment.
D. Payment Schedule. The Franchise Fee shall be paid each calendar quarter by the 15th day of the following month after each calendar quarter. Time is of the essence.
E. Pass Through. Any Grantee “pass through” or itemization of Franchise Fee costs on Subscribers’ bills shall be in accordance with federal law.
(Ord. O-200203-12-002, passed 3-5-2002)