(a) A grantee shall pay, for the use of City streets, public places and other facilities, as well as for their maintenance, improvement and supervision, a franchise fee, annually, in an amount set forth in the franchise, not to exceed five percent of the grantee's gross annual revenue. Payments are due on or before March 31 for the preceding year, and so forth. Duly authorized representatives of the grantee shall furnish a certificate with each payment reflecting the gross revenue, deductions and computations for the period covered by the payment. The computation of franchise fees shall be prepared in accordance with generally accepted accounting principles, as established by the Financial Accounting Standards Board (FASB).
(b) The City may, from time to time and upon reasonable notice, inspect and audit any and all books and records of the grantee relevant to the determination of gross annual revenues and the computation of franchise fees due, and may recompute any amounts determined to be payable under the franchise. The reasonable cost of the audit will be borne by the grantee if, as a result of the audit, the City determines that the grantee has underpaid the franchise fees owed in an amount exceeding five percent of the franchise fees actually paid.
(Ord. 581. Passed 12-13-95.)