13.25.080 Franchise fee.
A. Annual Fee. In consideration of the rights and benefits granted pursuant to the franchise, franchisee shall pay to the city each year during the life of the franchise beginning April 1, 2014, an annual fee derived from revenue received by that franchisee from solid waste management and collection service boundaries of the city. The franchise fee shall be five percent of gross revenues.
B. Quarterly Payments. The franchise fee required by this section shall be paid quarterly, and shall be due and payable within 30 days of the end of the calendar quarter. Accompanying the payments described above, franchisee shall file with the city manager or designee a statement showing the amount of the gross revenues received by the franchisee for services provided pursuant to this chapter for the calendar quarter immediately preceding the calendar quarter in which such statement is filed. There will be a reconciliation of final gross revenues on the quarterly report ending September 30th of each year for the prior fiscal period, which is October 1st through September 30th.
C. Review of Records – Annual Audit. Franchisee shall make available for inspection, copying and review by the city manager or designee, at any time during normal work hours, all records in the franchisee’s possession that the city manager or designee deems relevant to verifying the accuracy of fees paid to the city, to regulating rates or to carrying out any responsibility that the franchisee or the city has under this chapter.
1. No more often than once during any 12-month period, city may request an audit of the books, records and accounts of franchisee by a certified public accountant or such other professional chosen by the city to verify the accuracy of fees paid to the city, subject to the approval of the audited franchisee; provided, however, that such approval shall not be unreasonably withheld. Franchisee agrees to have its books, records and accounts audited and further agrees to pay for such auditing services. The report of the certified public accountant or other professional shall be conclusive and final. In the event such audit report discloses any difference of payment due either to the city or franchisee through error or otherwise, such payment shall be due and payable within 30 days of discovery or determination of the error. If payment is owed by the city to franchisee, the city shall reimburse the franchisee for payment for the portion of the services attributable to the audit that results in the franchisee receiving such payment from the city.
2. If payment is owed by franchisee to the city, and the difference of payment due is more than the greater of $500.00 or two and one-half percent of the franchise fee, or if the franchisee is found to have violated any other term or condition of this chapter, then, notwithstanding any other provision of this chapter, the city may request an additional audit during the next 12-month period with all expenses of such additional audit paid by such franchisee.
D. Late Payments – Interest. Should franchisee fail or neglect, for 60 days or more after any quarterly payment shall become due and payable, to make the quarterly payment, the city shall provide written notice of failure of payment to franchisee. Upon notification of failure to pay, franchisee will have 60 days to remit payment to the city. If franchisee fails to pay within said 60-day period, the city may charge interest retroactive to the due date, at a rate of nine percent per annum, and may at its option either continue the franchise in force and proceed by suit or action to collect the payment, or declare a forfeiture of the franchise because of the failure to make payment, but without waiving its right to collect earned franchise payments and interest. [Ord. 872 § 5.4, 2014.]