(a) Payment of franchise fee required. All businesses engaged in collection, removal, or disposal of solid waste material and operating within the town and who are franchisees shall pay to the town a franchise fee in an amount as designated in the franchise agreement, but in no event shall that fee be less than 5% of the gross annual revenues derived from commercial and residential solid waste collection and removal, which payments shall exclude bad debts, taxes and fees collected by the franchisee on behalf of any governmental entity. Franchise fees on roll-on/roll-off and construction debris, and recycling shall be as negotiated between a franchisee and the town. Unless otherwise provided for in the franchise agreement, the franchise payment shall become effective on the next customer billing cycle after 60 days from the effective date of the franchise. If in the future, the Town Commission approves a change in the franchise fee, as authorized by a franchise agreement, the town shall within 30 days of adoption of said rate forward a copy of same to the franchisee.
(b) Franchise fees in addition to other taxes or payments. Payment of the franchise fee made by the franchisee to the town shall not be considered in the nature of a tax, but shall be in addition to any and all taxes of general applicability which are now or may be rendered hereafter to be paid by any federal, state or local law.
(c) Acceptance by the town. Subject to applicable law, no acceptance of any payment by the town shall be construed as a release or as an accord and satisfaction of any claim the town may have for further or additional sums payable as a franchise fee under this code or for the performance of any other obligation of the franchisee.
(d) Failure to make required payment. In the event that any franchise payment or recomputed amount is not made on or before the dates specified herein, the franchisee shall pay as additional compensation an interest charge, computed from such due date, at an annualized rate equal to the commercial prime interest rate of the town's primary depository bank during the period that such unpaid amount is owed. Notwithstanding the foregoing, no interest shall be charged on customer accounts miscoded by the franchisee. As used in this code, PRIME RATE shall mean the annual rate of interest announced from time to time by the town's depository bank at the time interest is assessed. This rate may not be the best or lowest rate utilized by the depository bank. This variable rate as applied shall be adjusted on the date the prime rate changes.
(e) Periodic payments to be made. The franchisee shall make fee payments of monies due hereunder within 30 days of the end of each calendar quarter for franchise fees collected during the preceding quarter. Accompanying said payment, the franchisee shall also report its gross revenues by type of service within the town (e.g.- commercial solid waste disposal and removal, residential solid waste disposal and removal, removal of construction and demolition debris, and recycling) for the preceding quarter's period. Unless otherwise provided in a franchise agreement, quarter's shall end on the last day of September, December, March, and June of each year.
(f) Payments due in event of termination or expiration. In the event that the franchisee continues the operation of any part or all of the solid waste or other collection or recycling beyond the termination, revocation, or expiration of the franchise granted, it shall continue to pay to the town the franchise fee in the manner set forth in this code. This sub-section shall not be construed to authorize the operation of a franchise beyond the termination, revocation, or expiration of the franchise.
(g) Alternative fee contingencies. In the event that the franchisee's obligation to pay a franchise fee is held invalid by a decision of any court of competent jurisdiction or due to the actions of any legislative body, the franchisee shall negotiate with the town in good faith and shall agree to provide compensation to the town in lieu of the franchise fee. The amount of compensation shall, to the extent permitted by applicable law, as amended from time to time, be comparable to that which the franchisee would have otherwise paid as the franchise fee under the terms of the franchise agreement.
(h) Other fees and taxes. To the extent that any federal or state law or regulation may now forbid the town from assessing any type of fee or tax, upon repeal, modification, or judicial interpretation of said law or rule that would permit the town to assess said fee or tax, the town shall have the right to assess said fee or tax to the full extent authorized by law; provided, that the town shall first consult with the franchisee. If applicable law is modified to allow a fee or tax, the parties shall meet and confer within 90 days of notice from the town to in good faith negotiate franchise provisions to implement the collection of said fee or tax.
(i) Town's right to inspections. The town shall have the right to inspect the franchisee's records related to gross revenue records, to audit, and to recompute any fee amounts. No audit of the franchisee's records relating to gross annual revenues shall take place later than 36 months following the close of each of the franchisee's fiscal years. Audits that result in payment of 5% or more of franchise fees during the audit period, shall be at the expense of the franchisee. Any additional amount due to the town as a result of the audit shall be paid within 30 days of notice by the town, unless the franchisee disputes the results of the audit. The franchisee agrees to meet with the town and will attempt in good faith to resolve any differences. Thereafter, the additional amount due shall be subject to payment within 30 days after said additional amount is determined to be due by the franchisee and the town, or the town declares an impasse in the negotiations with the franchisee.
(Ord. 98-01, passed 2-18-98)