(1) In addition to any other consideration supporting the award of a license by the city, including but not limited to the granting of the privilege to utilize the rights-of-way of the city pursuant to this chapter for the purpose of providing cable service, and the license agreement to construct and operate the system, the licensee shall pay to the city an amount equal to five (5) percent of gross revenues.
(2) It is the intent of the city that these license fees may be utilized, in the discretion of the mayor and council, to defray certain of the costs of local regulation of the licensee and the system, to support the development and maximum utilization of all PEG channels to generally encourage development of the system to full utilization and potential, and for other purposes.
(3) Payments due the city under this section shall be computed quarterly, for the preceding quarter, as of March 31, June 30, September 30 and December 31 of each year. Each quarterly payment shall be due and payable no later than thirty (30) days after the applicable computation date. Each payment shall be accompanied by a financial statement showing in detail the gross revenues of the licensee relating to the relevant calendar quarter as well as any other report required by section 7A-22.
(4) No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim the city may have for further or additional sums due and payable. The city or its designate shall have a right to audit all financial records of licensee reasonably necessary to the determination of whether gross revenues and franchise fees have been accurately computed and paid upon the giving of reasonable notice and during normal business hours. In the event an audit results in additional moneys owed the city, interest shall be charged at the rate of one (1) percent per month on the unpaid balance. If there is a dispute as to whether a particular item of revenue is within the scope of the term "gross revenues," records will be provided without prejudice to any claim the licensee might have that a franchise fee is not owed on such revenues. Provided that, a licensee may withhold revenue records for items that it claims are not "gross revenues" so long as the licensee (i) provides a certified statement describing the nature of the revenues contained in the records withheld and (ii) agrees, in its license agreement, to pay all costs, including attorney fees, that the city incurs should the city seek production of the records and ultimately prevail. Each licensee shall be required, in accordance with the terms of its license, to pay for any audit where the audit shows the licensee failed to pay the license fee due to the city.
(5) The payment required pursuant to this section shall be in addition to and not in lieu of any other tax, fee (including by way of example and not limitation, permit fees), or payment owed the city by the licensee pursuant to any other applicable provisions of this Code or laws of the state, unless the tax, fee or payment is required to be treated as a franchise fee under 47 U.S.C. § 542.
(Ord. No. 8937, § 2, 9-2-97)