1. Quarterly Franchise Payment. Grantee shall pay the City a fee of five percent of grantee’s annual gross revenue or such other maximum amount as allowed by applicable law. Such payment shall commence as of the effective date of the franchise or any renewal date. The City shall be furnished, on an annual basis, a statement within 120 days of the close of the calendar year, either audited and certified by an independent certified public accountant or certified by a financial officer of the grantee, reflecting the total amount of the revenue and all payments, deductions and computations for the period covered by the payment. Upon ten days’ prior written notice, City shall have the right to conduct an independent audit of grantee’s records, in accordance with generally accepted accounting procedures, and if such audit indicates a franchise fee underpayment of five percent or more, the grantee shall pay the actual costs of such an audit.
2. Acceptance by City. No acceptance of any payment by the City shall be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable as a franchise fee under this chapter or for the performance of any other obligations of the grantee.
3. Failure to Make Required Payment. In the event that any payment is not made as required, interest on the amount due, as determined from the annual gross revenues as computed by the City or its designee, shall accrue from the date of the required submittal at an annual rate of 12 percent.
4. Payment Schedule. The franchise fee shall be paid on a quarterly basis according to the following schedule: March shall be reflected in an April 30 payment; revenues for April through June shall be reflected in a July 30 payment; revenues for July through September in an October 30 payment; and revenues for October through December in a January 31 payment.
All cable revenues to the City shall be placed in the City’s General Fund, and allocated to the telecommunication department and/or telecommunications commission at the City’s discretion.