Ione Municipal Code Art. IV Franchise Payments

Any grantee shall pay to the city, during the life of the franchise, a sum of up to five percent of the gross receipts of the grantee, and provide a financial statement for each calendar quarter, and in addition thereto such other sums as may be provided for in the franchise agreement. In no event shall the fee be more than that authorized by applicable federal and state law. Such fee by the grantee to the city shall be payable on or before the tenth day following the end of each month following each calendar quarter during the term of the franchise, that is February 10th, May 10th, August 10th, November 10th, respectively, of each year, by delivery of the same to the city clerk of the city. All payments made hereunder shall be made in lieu of any business license. However, the city expressly reserves its right to impose a utility users tax which shall not be in lieu of the franchise fee hereunder and licensee agrees to collect and remit any such utility users tax as may be directed by the city. If such a utility users tax is levied, the city and franchisee shall at that time negotiate how administrative expenses, if any, are to be shared.

In the event that the above payment and financial statement are not received by the city within ten days of the specified time, grantee shall pay to the city a late charge to cover administrative, bookkeeping and other expenses attendant to said payment, and for failure to file said financial statement, of two percent of the amount otherwise due, plus interest at the rate of twelve percent per annum on any late payment computed from the date due.

(Ord. 320 §5.1, 1991)

The grantee shall file with the city, on or before February 10th, after the expiration of any calendar year or portion thereof during which such franchise is in force, a financial statement prepared by an independent certified public accountant who is satisfactory to the council, showing and warranting the accuracy in detail the various categories and amounts of the annual receipts of grantee during the preceding calendar year (or portion thereof in the case of an initial year). It shall be the duty of the grantee to pay to the city, at the time of filing such statements, the franchise fee prescribed above or any unpaid balance thereof for the period covered by such statements.

(Ord. 320 §5.2, 1991)

Upon written request during normal business hours, any duly authorized representative of the city shall have the right to inspect and audit the grantee's records showing the gross monthly receipts from which its franchise fee payments are computed. Any such inspection or audit shall take place within thirty-six months following the respective month and records thereof in question. If an underpayment of the franchise fee is determined in such inspection or audit conducted by or at the direction of the city is found to be greater than two percent of the amount otherwise due, then the cost of such inspection or audit shall be at the expense of the grantee.

(Ord. 320 §5.3, 1991)

No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the city may have for any sums payable under this chapter or for the performance of any other obligation hereunder.

(Ord. 320 §5.4, 1991)