(A) Within 30 days after receipt of a written request for payment, the grantee shall remit to the government the verifiable costs, up to a maximum of $5,000, which the government may incur in connection with the transfer or change in control of a franchise granted hereunder. The 30-day period shall not begin unless and until the grantee receives copies of all invoices for which the government seeks reimbursement. Any and all payments made pursuant to this division shall constitute franchise fees pursuant to federal law and FCC rules; provided, however, that grantee shall neither credit such payments against any franchise fees due under § 116.44 nor pass such fees through to subscribers unless and until the total amount of franchise fees remitted to the government by the grantee exceeds 5% of grantee's annual gross revenue received from subscribers within the city.

(B) For the reason that the roads of the government to be used by the grantee in the operation of its system within the boundaries of the government are valuable public properties, acquired and maintained by the government at great expense to its taxpayers, and that the grant to the grantee to use the roads is a valuable property right without which the company would be required to invest substantial capital in right?of?way costs and acquisitions, the grantee shall pay to the government a franchise fee in an amount equal to 3% of grantee's gross revenue.

(C) The government reserves the right to review the amount of the franchise fee annually and to increase it up to the maximum fee or tax on grantee's gross revenue permitted by federal or state law. The government shall give the grantee 60 days notice before raising the franchise fee.

(D) The payment of the franchise fee shall be in addition to any other tax or payment owed to the government by grantee.
 
(E) The franchise fee shall be payable quarterly to the government and the grantee shall file a complete and accurate report, signed by and certified as accurate by an officer of the grantee, of all gross subscriber revenues received within the territorial limits of the city during the previous three-month period, and the payment shall be made to the government no later than 45 days after the expiration of the quarter when due. The gross revenue report from operations of the grantee within the franchise area shall be prepared by a qualified financial officer in accordance with the codification of statements on auditing standards promulgated by the American Instituted of Certified Public Accountants and shall include: a schedule of gross revenue by category by month; a schedule of the number of subscribers by category of service by month; and a schedule of gross revenue upon which the franchise fee is based.

(F) Upon 15 days written notice, the government shall have the right during normal business hours to inspect the grantee's income records at the grantee’s regional office, and the right to audit and to re?compute any amounts determined to be payable under this chapter; provided, however, that such audit shall take place within 12 months following the close of each of the grantee's fiscal years. If, as a result of such audit or review, the government determines that grantee has underpaid its fees in any 12-month period by 10% or more, then, in addition to making full payment of the relevant obligation, grantee shall reimburse the government for all of the reasonable costs associated with the audit or review, including costs for attorneys, accountants and other consultants. Any additional amount due to the government as a result of an audit or review shall be paid within the 45 days following written notice to the grantee by the government, which notice shall include a copy of the audit report and copies of all invoices for which the government seeks reimbursement.

(G) In the event that any franchise payment or recomputed amount is not made on or before the applicable dates heretofore specified, interest shall be charged from such date at the rate of the prime rate plus 3% per month, compounded monthly, for the period of delinquency. For purposes of this division, the prime rate shall be the federal funds rate published in the Wall Street Journal on the date that the franchise fee payment or recomputed amount is due as specified in division (E).

(H) The government reserves the right to require the grantee to collect any consumer or other tax or other fee that may be imposed by the government, the Commonwealth of Kentucky, or the federal government on cable services and/or additional subscriber services.

(I) No acceptance of any payment by the government shall be construed as an accord and satisfaction that the amount paid is in fact the release of any claim that the government may have for further or additional sums payable under this chapter.
(Ord. 940.7A, passed - - )

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