(A) Unless a franchise agreement provides otherwise, a franchisee, in consideration of the privilege granted under a franchise for the use of public rights-of-way to construct and operate a cable system, must pay to the city five percent (5%) of the franchisee's gross revenues derived from the operation of its cable system within the city during the period of its franchise. Franchise fees are payable quarterly. A franchisee must pay the franchise fee due to the city for the preceding quarter within thirty (30) calendar days of the end of that quarter.
(B) Any payment of franchise fees to adjust for a shortfall in the quarterly payments for the preceding year must be made no later than the filing date for the annual financial statements. Adjustment for any overpayment will be credited to subsequent quarterly payments.
(C) Unless a franchise agreement provides otherwise, franchisee fee payment shall be accompanied by a financial statement showing the gross revenues received by the franchisee during the period covered by the payments and the number of subscribers served at the end of the period.
(D) A franchisee must file within three (3) months of the end of its fiscal year the franchisee's annual financial statements for the preceding year audited by a certified public accountant or certified as accurate by the franchisee's chief financial officer. The franchisee will bear the cost of the preparation of such financial statements.
(E) The city may inspect and audit any and all books and records of the franchisee, and recompute any amounts determined to be payable under the franchise. The cost of the audit will be borne by the franchisee if the annual payment to the city is increased by more than five percent (5%) as a result of the audit.
(F) In the event that a franchise fee payment is not received by the city on or before the due date, interest will be charged from the due date at an interest rate of one and one-half percent (1 1/2%) per month. In addition, the franchisee will pay a late charge of five percent (5%) of the amount of such payment. Interest and late charges will not be imposed for any payment necessary as a result of the yearly adjustment provided for in subsection (B) above, if the payment to correct for a shortfall does not exceed ten percent (10%) of the total payments made during the year. In the event such payment exceeds ten percent (10%) of the total payments made during the year, the franchisee will be liable for interest and late charges for the entire amount due.
(G) When a franchise terminates for whatever reason, the franchisee must file with the city within ninety (90) calendar days of the date its operations cease a financial statement, audited by a Certified Public Accountant (CPA) or certified by the franchisee's chief financial officer, showing the gross revenues received by the franchisee since the end of the previous fiscal year. Adjustments will be made at that time for franchise fees due to the date that the franchisee's operations ceased.
(Ord. 90-11-15, passed 11-15-90)