1. Franchise fee. The Operator shall pay to the City on a quarterly basis, on or before April 30, July 30, October 31, and January 31 of each year, a percent of the total Gross Revenues (as defined in this Ordinance) of the Operator during the immediate past quarter together with a financial statement listing the gross receipts and revenues of the Operator during that quarter. The percent of total Gross Revenues shall equal the percent in the Franchise and shall be consistent with applicable law. Notwithstanding anything contained herein to the contrary and in the event that the City is authorized by federal law to either increase or decrease the maximum permissible franchise fee amount, then the City shall have the right to change the franchise fee amount, without the consent of the Operator, provided that the Operator has received at least ninety (90) days prior written notice from the City of such change.

2. Verification. All books and records showing the Gross Revenues of the Operator shall be open at all reasonable times to the inspection of the City or agent appointed by the City in order to insure compliance with the terms of this Ordinance and/or the Franchise.

3. Additional compensation. In any payment amount is not made on or before the dates specified, the Operator shall pay interest on the amount due at the prime rate as listed in the Wall Street Journal on the date that the payment was due, compounded daily, calculated from the date the payment was originally due until the date the City receives the payment. The acceptance of any payment by the City may not be construed as a release or as an accord and satisfaction of any claim the City may have for further and additional sums payable as a franchise fee under this ordinance or for the performance of any other obligation of the Operator.

4. Pass-through fees. Any Operator “Pass-through” or itemization of franchise fee costs on subscribers’ bills shall be in accordance with applicable law.