(A) Franchise fee.
(1) Any grantee shall pay to the city, during the life of the franchise, a sum equal to 5% of the gross quarterly receipts of the grantee, provided, however, that in no event shall the franchise fee for any 12-month period ever exceed 5% of the sum of the grantee's gross quarterly receipts for such period. Grantee shall also pay to the city when due such other sums as may be provided for in the franchise agreement. In no event shall the fee be more than that authorized by applicable federal and state law. Such fee by the grantee to the city shall be payable on or before the thirtieth day following the end of each respective calendar quarter during the term of the franchise, by delivery of the same to the City Clerk. All payments made hereunder shall be made in lieu of any business license, occupation tax or similar levy.
(2) In the event that the above payments and financial statements are not received by the city within ten days of the specified due dates, grantee shall pay to the city a late charge to cover administrative, bookkeeping and other expenses attendant thereto, of 2% of the amount due for such calendar quarter plus interest at the rate of 10% per annum on any late payment computed from the date due to the date of payment.
(B) Financial statement. The grantee shall file with the city, within 60 days after the expiration of any calendar year (or portion thereof) during which such franchise is in force, a financial statement prepared by an independent certified public accountant who is satisfactory to the Council and certified by the chief financial officer of the grantee, showing receipts of grantee during the calendar quarters (or portion thereof in the case of an initial or final quarter) in the preceding calendar year.
(C) Inspection; audit. Upon written request made at least seven days in advance during normal business hours, any duly authorized representative of the city shall have the right to inspect and audit the grantee's records showing the gross quarterly receipts from which its franchise fee payments are computed. Any such inspection or audit shall take place within 36 months following the respective month and records thereof in question. If an underpayment in excess of 5% of the franchise fee for any calendar quarter is determined in such inspection or audit conducted by or at the direction of the city, then the cost of such inspection or audit shall be borne by the grantee.
(D) Acceptance by city. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim that the city may have for any sums payable under this chapter or for the performance of any other obligation hereunder.
(Ord. 94-09, passed 9-12-94)