The Town finds that public rights-of-way of the Town to be used by a franchisee for the operation of a cable system are valuable public property acquired and maintained by the Town. The Town further finds that the grant of a franchise to use public rights-of-way is a valuable property right without which a franchisee would be required to invest substantial capital.
Each franchisee shall pay a franchise fee of 5% of gross revenues.
The franchisee shall file with the Town, within 30 days after the expiration of each of the franchisee's fiscal quarters, a financial statement clearly showing the gross revenues received by the franchisee during the preceding quarter. The quarterly portion of the franchise fee shall be payable to the Town at the time such statement is filed.
A. 
Payment of the franchise fee shall not be considered in the nature of a tax or in lieu of other taxes or fees of general applicability imposed by the Town.
B. 
The franchise fee is in addition to all other taxes and payments that a franchisee may be required to pay under its franchise agreement or any federal, state or local law and to any other tax, fee or assessment imposed by utilities and cable operators for use of their services, facilities or equipment, including any applicable amusement taxes, except to the extent that such fees, taxes, or assessments must be treated as a franchise fee under Section 622 of the Cable Act, 47 U.S.C. § 542.
C. 
No franchisee may designate the franchise fee as a tax in any communication to a subscriber.
In the event that any franchise fee payment or recomputation amount is not made on or before the required date, the franchisee shall pay additional compensation and interest charges computed from such due date, at an annual rate equal to the commercial prime interest rate of the Town's primary depository bank during the period such unpaid amount is owed, in addition to any applicable penalties or liquidated damages.
A. 
The Town shall have the right to inspect records, to require a franchisee to provide copies of records at the franchisee's expense and to audit and to recompute any amounts determined to be payable, whether the records are held by the franchisee, an affiliate or any other entity that collects or receives funds related to the franchisee's operation in the Town, including, by way of illustration and not limitation, any entity that sells advertising on the franchisee's behalf, for a period of five years from the date a payment was made, or, if no payment was made, from the date the Town believes payment was owed, after which time all payments are final.
B. 
A franchisee shall be responsible for providing to the Town all records necessary to confirm the accurate payment of franchise fees, without regard to by whom they are held. Such records shall be made available pursuant to the requirements of this chapter. The franchisee shall maintain such records for the term of its franchise agreement and any renewals or extensions thereof.
C. 
The Town's audit expenses shall be borne by the Town unless the audit discloses an underpayment of 5% or more of the amount due, in which case the costs of the audit shall be borne by the franchisee as a cost incidental to the enforcement of the franchise. Any additional amounts due to the Town as a result of the audit shall be paid within 30 days following written notice to the franchisee by the Town of the underpayment, which notice shall include a copy of the audit report. If recomputation results in additional revenue to be paid to the Town, such amount shall be subject to a ten-percent interest charge.
No acceptance of any payment by the Town shall be construed as a release or an accord and satisfaction of any claim the Town may have for further or additional sums due or for the performance of any other obligation of a franchisee or as an acknowledgment that the amount paid is the correct amount due.