8.1 Franchise Fee. Company shall pay City throughout the term of this Franchise an amount equal to five percent (5%) of Company's Cable Gross Revenues for the purpose of administering this franchise and any other related ordinance. Once per calendar year City by resolution may elect to reduce such percentage to a smaller percentage, and by resolution in a subsequent calendar year may change or revoke such election. Such changes shall take effect sixty (60) days after passage of the resolution and payments shall be made quarterly, and are due within forty-five (45) days after the end of each calendar quarter.
8.1.1 Each payment shall be accompanied by a written report to City, verified by an officer of Company containing a detailed breakdown of the various components of the total revenue reported, including the number of customers served by basic cable service. Each quarterly report shall also show the previous quarter report(s) on one summary page. On or before April 30th of each year of this agreement, Company shall provide City with a detailed summary of gross revenues received during the preceding year, certified by an Officer of the Company.
8.1.2 City may audit Company to verify the accuracy of Franchisee Fees paid City. Any additional amount due City shall be paid within thirty (30) days of City's submitting an invoice for such sum, and if such sum shall exceed five percent (5%) of the total Franchise Fee which the audit determines should have been paid for any calendar year, Company shall pay City's cost of auditing that calendar year as well. Any payments for previously unpaid franchise fees shall be subject to a penalty fee of Eight percent (8%) annually (prorated) or the present cost to the city to borrow funds, whichever is greater.
8.2 Other Payments. The preceding fees and payments are in addition to all sums, which may be due City for property taxes (real and personal), income taxes, license fees, permit fees or other fees, taxes or charges, which City may from time to time impose.