Ordinance 2613-02 - Laserfiche WebLink

as in detail, of Grantee's Gross Revenues and the computation of the payment amount. Such reports shall detail all Gross Revenues of the Cable System. 3.5 Audits On an annual basis,upon thirty(30) days prior written notice,the City shall have the right to conduct an independent audit of Grantee's records reasonably related to the enforcement of this Franchise. If the audit shows that franchise fee payments have been underpaid by three percent (3%) or more, Grantee shall pay the total cost of the audit, such cost not to exceed five thousand dollars ($5,000) for each year of the audit period. The City's right to audit and the Grantee's obligation to retain records related to a franchise fee audit shall expire three (3) years after each franchise fee payment has been made to the City. 3.6 Late Payments In the event any payment due quarterly is not received within thirty(30) days from the end of the preceding quarter, Grantee shall pay interest on the amount due at the prime rate as listed in the Wall Street Journal on the date the payment was due, compounded daily, until the date the City receives the payment. 3.7 Alternative Compensation In the event the obligation of Grantee to compensate the City through franchise fee payments is lawfully suspended or eliminated, in whole or part, then Grantee shall pay to the City such other compensation as is required by law. 3.8 Maximum Legal Compensation The parties acknowledge that, at present, applicable federal law limits the City to collection of a maximum permissible franchise fee of five percent (5%) of Gross Revenues. In the event that at any time throughout the term of this Franchise, the City is authorized to collect an amount in excess of five percent (5%) of Gross Revenues, then this Franchise shall be amended by the parties consistent with such change to provide that such excess amount shall be added to the franchise fee payments to be paid by Grantee to the City hereunder. Conversely, in the event that at any time throughout the term of this Franchise, the City may only collect an amount which is less than five percent (5%) of Grantee's Gross Revenues for franchise fees due to a change in federal law, then this Franchise shall be amended by the parties consistent with such change to provide for such lesser percentage. 3.9 Additional Commitments Not Franchise Fee Payments No term or condition in this Franchise, including the funding required by SECTION 9. ACCESS, shall in any way modify or affect Grantee's obligation to pay franchise fees. Although the total sum of franchise fee payments and additional commitments set forth elsewhere in this Franchise may total more than five percent (5%) of Grantee's Gross Revenues in any twelve (12) Page 16 of 58