Montague Municipal Code Art. IV Franchise Payments

The grantee shall pay to the city, during the life of the franchise, a franchise fee in an amount equal to five percent of the annual gross receipts of the grantee from the operations of its cable systems in the city; such fee shall be payable, on a quarterly basis, on or before the sixtieth day following the last day of each March, June, September and December during the term of the franchise, by delivery of the same to the city clerk. Any payment for a portion of a quarterly period shall be prorated. In no event shall the fees due to the city be more than that authorized by applicable federal and state law nor shall such fee include any tax, fee or assessment of any kind imposed by the city or other governmental entity on the grantee or any subscriber, or both solely because of their status as such. In the extent that the above payment is not received by the city within ten days of the specified time, the grantee shall pay to the city a late charge to cover administrative, bookkeeping and other expenses attendant to said payment of two percent of the amount otherwise due, plus interest at the rate of ten percent per annum on any late payment computed from the date due. (Ord. 93-03 §5 (part), 1993)

The grantee shall file with the city clerk, within sixty days after the expiration of each calendar year or portion thereof during which the franchise is in force, a financial statement prepared by a certified public accountant not otherwise employed by the grantee who is reasonable satisfactory to the council, showing and warranting the accuracy in detail the various categories and amounts of the gross receipts of the grantee during the preceding calendar year (or portion thereof). (Ord. 93-03 §5 (part), 1993)

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 receipts from which its franchise fee payments are computed. Any such inspection or audit shall take place within twenty-four months following the respective calendar year and records thereof in question. If an underpayment of the franchise fee in an amount exceeding five percent of the amount actually due to the city is determined in such inspection or audit conducted by or at the direction of the city, then the reasonable cost of such inspection or audit shall be at the expense of the grantee. (Ord. 93-03 §5 (part), 1993)

Except as provided above, 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 the provisions of this chapter. (Ord. 93-03 §5 (part), 1993)