(a) Priority of Requirements. The Franchisee shall comply with all the requirements of this Chapter and any agreement resulting therefrom, and any amendments to this Chapter. In the case of any conflict between the Agreement and this Chapter, mandatory provisions in this Chapter which were in effect at the time of adoption of the agreement shall control. Mandatory provisions of this Chapter which are adopted after the effective date of the Agreement shall not apply to that Agreement but shall apply to new agreements with other cable companies and to renewal and successor agreements with the Franchisee.
(b) Franchise Fee. The Franchisee shall pay to the City an annual fee equal to 5% of its annual Gross Revenue derived as a direct or indirect result of operating the Cable System within the City. (The definition of Gross Revenue and the basis of its calculation may be found in Oxford Code Section 731.06(v).) This payment shall be in addition to any other tax or payment owed to the City by the Franchisee.
(c) Quarterly Payments. Franchisee shall pay the Franchise Fee due to the City in quarterly installments. Each installment shall be paid within thirty (30) days of the end of each calendar quarter and calculated from the Franchisee's Gross Revenue's from that quarter or portion of a quarter year. Each payment shall be accompanied by report showing the system's revenues and their sources, the computation of the fee, and other facts relevant to the fee as may be required by the City. This report shall be prepared in a manner as agreed to by the City and Franchisee, and shall be in addition to the annual report required by this section.
(d) No Release. The acceptance of any payment, specifically including, but not limited to, Franchise Fee payments, shall not be construed as an accord that the amount accepted was the amount actually due the City. The acceptance of such payments shall not be construed as a release of any claim the City may have for additional sums payable under this Chapter or Agreement, unless a separate written release is executed by the City. All amounts paid shall be subject to audit by the City.
(e) Interest on Late Payments. If any payment, such as Franchise Fees, fines, or other penalty, is not made within the time specified in this Chapter, Agreement, or amendments thereof, then the Franchisee shall pay interest on the amount which is overdue. The interest shall accrue from such date and be calculated at the annual rate of 12% or the highest rate permitted by law, whichever is less.
(f) Audit. The City shall have the right to audit the Franchisee's books and records for the purpose of this section. The City may inspect the books and records at the Franchisee's office during normal business hours and may copy any document, at the City's expense. If the audit shows a different amount due than was actually paid, then the appropriate party shall pay the difference with interest within thirty (30) days of the conclusion of the audit. In the event that the audit discovers an error greater than 3% in the Franchisee's favor, then the Franchisee shall pay, in addition to the difference, the entire cost of the audit.
(g) Not Franchise Fees. The Franchisee acknowledges and agrees that except for payments expressly required under Oxford Code Section 731.12(b) above, none of the payments, contributions, services, equipment, facilities, support, or other activities to be provided or performed by the Franchisee at the direction of the City or in connection with the construction, maintenance, up-grade, or operation of the Cable TV System are franchise fees chargeable against the compensation payments to be paid to the City under Oxford Code Section 731.12(b) hereof.
(Ord. 2439. Passed 1-2-96.)
(Ord. 2439. Passed 1-2-96.)