§ 9. Compensation to the City.  

Latest version.
  • Grantee hereby contracts and is hereby obligated during the terms of this franchise ordinance to pay to the City a sum equal to five percent (5%) of the gross annual receipts of the Grantee, provided that the parties may re-negotiate this provision in the event that federal or state statutes or regulations allow or mandate a higher or lower amount. Any payments made by the Grantee to the City in connection with franchise renewal proceedings, transfer of ownership, or as compensation for costs incurred by the City in connection with the franchise shall not be deemed as any portion of a franchise fee.

    Such payments shall be made in monthly installments, based upon actual receipts, 30 days after the end of the month to which such payments shall apply. True-up payments shall be made when necessary at the end of each calendar year this ordinance is in effect, payable within 60 days. Grantee shall also provide such annual accounting reports as may be reasonably requested by the City in addition to monthly supporting data in order for the City to properly verify compliance with this ordinance.

    The City or its authorized representative shall have the right to periodically audit the books and records of the Grantee to verify that compensation has been correctly computed and paid. The Grantee agrees to reimburse the City for the reasonable costs of such audit if the audit discloses that the Grantee has paid 98% or less of the compensation due the City for the period of such audit. In the event the accounting rendered to the City by the Grantee herein is found to be incorrect, then payment shall be made on the corrected amount within thirty (30) days of written notice, it being agreed that the City may accept any amount offered by the Grantee but the acceptance thereof by the City shall not be deemed a settlement of such item if the amount is in dispute or is later found to be incorrect. The Grantee agrees that all of its relevant books, records and documents and all of its contracts and agreements shall at all reasonable times be open to the inspection and examination of the officers of the City and the duly authorized agents, auditors and employees of the City for the purpose of verifying said report, or for any other lawful purpose.

    The Grantee shall correctly code all customers and receipts from service within the corporate limits of the City. Such coding shall be updated to reflect annexation and other changes in City boundaries, customers, and receipts from service within thirty (30) days of notice or reasonable knowledge of any such change or modification. In the event of large annexations, the Grantee may request additional time in writing which request will not be unreasonably denied by the City.