§ 93-12. Franchise fees.

A. 

Because the Township finds that the streets of the county, state and Township to be used by the grantee in the operation of its system within the boundaries of the franchise area are valuable public properties acquired and maintained by the county, state and Township at great expense to its taxpayers; and the grant to the grantee to the said streets is a valuable property right without which the grantee would be required to invest substantial capital in right-of-way costs and acquisitions; and the administration of this chapter and the franchise imposes upon the Township additional regulatory responsibility and expense; and the presence of the grantee and its facilities places additional burdens upon the Township administration and road departments and the volunteer fire company serving the area which is supported by the Township; a grantee of any franchise hereunder shall pay to the Township a franchise fee in an amount as designated in the franchise agreement up to the maximum amount permitted under applicable federal, state or local law. The present maximum franchise fee allowable is 5% of gross annual revenues.

B. 

In the event that any franchise fee payment or recomputed amount is not made on or before the dates specified in the franchise agreement, the grantee shall pay as additional compensation an interest charge, computed from such due date, at the annual rate equal to the commercial prime interest rate of the Township's primary depository bank during the period that such unpaid amount is owed.

C. 

The franchise fee shall be payable as specified in the franchise agreement and shall commence as of the effective date of the franchise. The Township shall be furnished at the time of each payment with a statement certified by the grantee's chief financial officer reflecting the total amounts of gross revenues for the period conveyed by the payments. This statement shall include a line item for each applicable revenue source and the amount of revenue received for each source as listed in the definition.

[Amended 3-8-2006 by Ord. No. 298]

D. 

The Township shall have the right to inspect the grantee's income records and the right to audit and to recompute any amounts determined to be payable under this chapter for a period of five years from the date of payment. Audits shall be at the expense of the Township, unless the audit discloses an underpayment in any one year of 5% or more, in which case the costs of the audit shall be borne by the grantee. Grantee shall pay interest at the rate of 6% per annum. Any additional amount due the Township as a result of the audit shall be paid within 30 days following written notice to the grantee by the Township, which notice shall include a copy of the audit report, unless written notice of disagreement is filed by the grantee with the Township within such time.

[Amended 3-8-2006 by Ord. No. 298]