§ 10-9. Franchise fee.

(a)

The grantee shall pay a franchise fee in the amount of five (5) percent of its gross revenues, as defined in the franchise agreement. Franchise fees shall be in addition to any other tax, charge, fee, or payment due to the city by the grantee.

(b)

All payments due from grantee to the city shall be made quarterly.

(c)

Each payment shall be accompanied by a financial statement setting forth the basis for the computation and specifically showing the gross revenues to support the period covered by the payment, and for the year.

(d)

The city shall have the right, upon thirty (30) days written notice, to inspect the grantee's records to verify the accuracy of the amounts payable under the franchise. The right of audit and re-computation of any and all amounts payable under the franchise shall always be accorded to the city. The grantee shall provide to the city only those records and reports which pertain specifically to the cable system and facilities and operations under this franchise and only the financial records of the revenues earned by the grantee from the facilities and operation of the cable system within the city. The books and records shall be made available to the city at its offices.

(e)

Except as otherwise provided by law, no acceptance of any payment by the city shall be construed as a release or as an accord and satisfaction of any claim the city may have for further or additional sums payable as a franchise fee under this article or for the performance of any other obligations of the grantee, provided, however, that a payment shall be considered final upon completion of any audit.

(f)

In the event that any franchise payment or re-computed amount is not made on or before the dates specified in the article or franchise agreement, grantee shall pay as additional compensation an interest charge, computed from such due date, at an annual rate equal to the then-current prime interest rate as publicly announced by the Detroit office of the NBD Bank, or its successor, in effect on the due date, plus one percent for the period the payment was due.

(Ord. No. 80-512, § 1, 6-24-97)