(A) Following the issuance and acceptance of the franchise, the grantee shall pay to the grantor a franchise fee on gross annual cable service revenues in the amount and at the times set forth in the franchise agreement.
(B) The grantor, on an annual basis, shall be furnished a statement within 120 days of the close of the calendar year, either audited and certified by an independent certified public accountant or certified by an officer or authorized financial representative of the grantee, reflecting the total amounts of gross revenues 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 financial audit of grantee's gross annual cable service revenue and franchise fee records, in accordance with Generally Accepted Accounting Procedures (GAAP), and if such audit indicates a franchise fee underpayment of 2% or more, the grantee shall assume all reasonable documented costs of such audit.
(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 under this chapter or for the performance of any other obligation of the grantee.
(D) In the event that any franchise fee payment or payment of any adjustment to any franchise fee is not made on or before the dates specified in the franchise agreement, unless otherwise excused, grantee shall pay:
(1) An interest charge, computed from such due date, at an annual rate of 8%; and
(2) If the payment is late by 30 days or more, a sum of money equal to 5% of the amount due in order to defray those additional expenses and costs incurred by the grantor due to grantee's delinquent payment.
(E) Franchise fee payments shall be made in accordance with the schedule indicated in the franchise agreement.
(Ord. 1048, passed 1-22-02)