A. In consideration for the privilege to use the City's public rights-of-way in the operation of its cable system, and because the City will incur costs and expenses in regulating and administering the franchise, Grantee shall pay to the City a franchise fee in an amount equal to five percent (5%) of Grantee's gross revenues, unless a greater amount is authorized by applicable law.
B. The franchise fee shall be paid quarterly and must be received by the City not later than 45 days after the close of each calendar quarter.
C. Concurrently with the payment of franchise fees, Grantee shall provide to the City a statement verified by a financial officer of Grantee that sets forth gross revenues for the previous calendar quarter, listing every revenue source and describing gross revenue computations.
D. On an annual basis, Grantee shall file a statement certified by a financial officer that sets forth all gross revenues for the previous calendar year, listing every revenue source and describing gross revenue computations.
If the City has any objections relating to that report, the City shall have 30 days to notify Grantee and to request additional information. Grantee shall have 30 days to provide additional information to resolve any objections to the City's satisfaction.
E. At any time during the term of a franchise, the City has the right to conduct, or require Grantee to obtain, an independent audit by certified public accountants approved by the City of all records of Grantee related to gross revenue reports or computations. Grantee shall pay all costs of that audit. Grantee shall cooperate with any such audit and shall make readily available all information requested by the City without regard as to whether information is contained in "documents" (as defined in the Public Records Act) or other media in the possession or under the control of Grantee.
The certified public accountants shall be required to certify in the audit that the Grantee is in compliance with this chapter and the franchise agreement. Grantee shall maintain in a readily accessible place all relevant financial records for a minimum of four years after any payment period that such records pertain to.
F. If any franchise fee payment is not made by the due date, interest shall be charged monthly at a rate of one percent (1%). In addition, if any franchise fee is not paid in full within 15 days after Grantee's receipt of notice from the City concerning the delinquency of that payment, a late fee in the amount of five percent (5%) of the delinquent amount shall be assessed.