(a) Franchise Fee. As compensation for the benefits and privileges granted under this franchise and in consideration of permission to use the Grantor’s streets, the Grantee shall pay as a franchise fee to the Grantor, throughout the duration of this franchise, an amount as set by the fee schedule adopted by resolution. Accrual of such franchise fee shall commence as of the effective date of this franchise.

(b) Payments. The Grantee’s franchise fee payments to the Grantor shall be computed semi-annually for the periods ending December 31 and June 30. Each semi-annual payment shall be due and payable no later than forty-five (45) days after said dates.

(c) Acceptance of Payment and Recomputation. No acceptance of any payment shall be construed as an accord by the Grantor that the amount paid is, in fact, the correct amount, nor shall any acceptance of payments be construed as a release of any claim the Grantor may have for further or additional sums payable or for the performance of any other obligation of the Grantee.

(d) Franchise Fee Reports. Each payment shall be accompanied by a written report to the Grantor, verified by a certified public accountant or an officer of the Grantee, containing an accurate statement in summarized form, as well as in detail, of the Grantee’s gross revenues and the computation of the payment amount. Such reports shall detail all gross revenues of the cable system and shall be prepared in accordance with generally accepted accounting principles.

(e) Annual Franchise Fee Reports. The Grantee shall, within sixty (60) days after the end of each calendar year, furnish to the Grantor a statement stating the total amount of gross revenues and all payments, deductions and computations for the preceding year. Such statement shall be certified by a certified public accountant, who may also be the chief financial officer or controller of the Grantee, prior to submission to the Grantor.

(f) Audits. On an annual basis, upon thirty (30) days’ prior written notice, the Grantor shall have the right to conduct an independent audit of the Grantee’s records reasonably related to the administration or enforcement of this franchise, in accordance with generally accepted accounting principles. If the audit shows that franchise fees have been underpaid by five percent (5%) or more, the Grantee shall pay the total cost of the audit. The Grantor’s right to audit, and the Grantee’s obligation to retain records related to the franchise fee audit, shall be subject to the general limitation period for contract actions as set forth in Section 13-80-101(1)(a), C.R.S., as may be amended from time to time.

(g) Interest on Late Payments. In the event any payment is not received within forty-five (45) days from the end of the calendar year, such payment shall be deemed delinquent and shall accrue interest at the rate of one percent (1%) per month. If any payment is not received within seventy-five (75) days after the end of the calendar year, the Grantee shall be considered to have violated its obligations pursuant to this franchise, and shall be subject to the procedure for remedying such violation as set forth in Subsection 5-14(a) of this Article.

(h) Maximum Legal Compensation. The parties acknowledge that, at present, applicable federal law limits the Grantor to collection of a maximum permissible franchise fee of five percent (5%) of gross revenues. In the event that at any time during the term of this franchise the Grantor is authorized to collect an amount in excess of five percent (5%) of gross revenues as a franchise fee, then the Grantor may, by ordinance and upon giving the public notice and an opportunity to comment, increase the franchise fee, provided the maximum permissible franchise fee does not exceed seven percent (7%) of annual gross revenues, and provided that the Grantee has received at least ninety (90) days’ prior written notice from the Grantor of such amendment.

(i) Additional Commitments Not Franchise Fees. No term or condition in this franchise shall in any way modify or affect the 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 the Grantee’s gross revenues in any twelve-month period, the Grantee agrees that to the extent provided by applicable law, the additional commitments herein, except as set forth in Section (h) above, will not be franchise fees as defined under any current federal law, nor are they to be offset or credited against any franchise fee payments due to the Grantor, nor do they represent an increase in franchise fees to be passed through to subscribers pursuant to any federal law.

(j) Costs of Publication and Elections. The Grantee shall pay the reasonable cost of any election required to approve or disapprove this franchise and of publication of this franchise and any amendments thereto, as such publication is reasonably required by the Grantor or applicable law.

(k) Tax Liability. Payment of the franchise fee under this franchise shall not exempt the Grantee from the payment of any other license fee, tax or charge on the business, occupation, property or income of the Grantee that may be imposed by the Grantor, except as may otherwise be provided in the ordinance or ordinances imposing such other license fee, tax or charge. Any other license fees, taxes or charges shall be of general applicability in nature and shall not be levied against the Grantee solely because of its status as a cable operator as defined herein. (Ord. 731 § 1, 2004; Ord. 1161 §5, 2013)