(A) Following the issuance and acceptance of the franchise, the grantee shall pay to the grantor a franchise fee in the amount and at the times set forth in the franchise agreement. If the grantor has the authority to require compensation from the grantee for the use of the rights-of-way to provide telecommunications service, the grantee shall pay an in-lieu-of-franchise-fee payment as determined by grantor in accordance with by applicable law.
(B) The grantor, on an annual basis, shall be furnished a statement within 60 days of the close of the calendar year, either audited and certified by an independent Certified Public Accountant or certified by an officer of the grantee, reflecting the total amounts of gross receipts and all payments, deductions and computations for the period covered by the payment. Upon 30 days prior written notice, grantor shall have the right to conduct an independent audit of grantee's records to determine whether grantee has paid the franchise fee required.
If such audit indicates a franchise fee underpayment of two percent or more, the grantee shall assume all reasonable costs of such audit. No audit shall be conducted for any period prior to the date at which the applicable statute of limitations comes into effect.
(C) Except as otherwise provided by law, no acceptance of any payment by the grantor shall be construed as a release or as an accord and satisfaction of any claim the grantor may have for further or additional sums payable as a franchise fee or an in-lieu fee under this chapter or for the performance of any other obligation of the grantee.
(D) In the event that any franchise and/or in-lieu fee payment or recomputed amount is not made on or before the dates specified in the franchise agreement, grantee shall pay as additional compensation:
(1) An interest charge, computed from such due date, at an annual rate equal to the prime lending rate of any national bank selected by grantor, plus one percent during the period for which payment was due provided, that the grantor has notified the grantee that grantee's payment is untimely, within 30 days of the applicable due date; and
(2) If, after notification is provided in accordance with subdivision (1) above, the payment is late by 45 days or more, a sum of money equal to five percent of the amount due in order to defray those additional expenses and costs incurred by the grantor by reason of delinquent payment.
(E) Franchise fee payments shall be made in accordance with the schedule indicated in the franchise agreement.
(Ord. 912, passed 6-8-00)