Ordinance 3077-08 - Laserfiche WebLink

7.3 Audit of Franchise Fee Payments: 7.3.1 The City, or its designee, may conduct an audit or other inquiry in relation to payments made by Franchisee no more than once every three (3) years during the Term. As a part of the audit process, the City or the City's designee may inspect Franchisee's books of accounts relative to the City any time during regular business hours and after thirty(30) calendar days prior written notice. 7.3.2 All records deemed by the City or the City's designee to be reasonably necessary for such audit, which shall include, but not be limited to, all records subject to inspection by the City pursuant to Section 9.2 herein, shall be made available by Franchisee in a mutually agreeable format and location. Franchisee agrees to give its full cooperation in any audit and shall provide responses to inquiries within thirty(30) calendar days of a written request. Franchisee may provide such responses within a reasonable time after the expiration of the response period above so long as Franchisee makes a good faith effort to procure any such tardy response. 7.3.2.1 If the results of any audit indicate that Franchisee (i) paid the correct Franchise fee, (ii) overpaid the Franchise fee and is entitled to a refund or credit, or(iii) underpaid the Franchise fee by three percent (3%) or less, then the City shall pay the costs of the audit. If the results of the audit indicate Franchisee underpaid the Franchise fee by more than three percent (3%) during the audit period, then Franchisee shall pay the reasonable, documented, third-party costs of the audit up to Five Thousand Dollars ($5000) per audit. 7.3.2.2 The City agrees that any audit shall be performed in good faith. If any audit discloses an underpayment of the Franchise fee of any amount, Franchisee shall pay the City the amount of the underpayment, together with interest as provided in Section 7.6. Any auditor employed by the City shall not be compensated on a success based formula, e.g., payment based on a percentage of underpayment, if any. 7.4 Limitation on Franchise Fee Actions: The parties agree that the period of limitation for recovery of any Franchise fee payable hereunder shall be three(3) years from the date on which payment by Franchisee is due. 7.5 Bundled Services: If Cable Services subject to the Franchise fee required under this Article 7 are provided to Subscribers in conjunction with Non-Cable Services, the Franchise fee shall be applied only to the value of the Cable Services, as reflected on the books and records of Franchisee in accordance with FCC or state public utility regulatory commission rules, regulations, standards or orders. 7.6 Interest on Late Payments. In the event that a Franchise fee payment or other sum is not received by the City on or before the due date, Franchisee shall pay in addition to the payment, or sum due, interest from the due date at a rate per annum equal to the prime rate as it appears in The Wall Street Journal on the date the payment was due, until the date it is paid in full. 8. CUSTOMER SERVICE EVERETT 14 Seattle-3388207.8 0010932-00119