Clearlake Municipal Code § 12-17 Franchise Fees

A grantee shall pay to the City an amount equal to five (5%) percent of the gross revenues derived from the operation of its cable system in the City, or the maximum fee permitted by Federal law, if larger. (Ord. #80-97, S17)

Unless otherwise specified in a franchise agreement, a grantee shall pay the franchise fee due to the City on a quarterly basis. Payment for each quarter shall be made to the City not later than thirty (30) days after the end of each calendar quarter. (Ord. #80-97, S17)

Unless a franchise agreement provides otherwise, a grantee or other entity subject to a fee under this provision shall file with the City within thirty (30) days of the end of each calendar quarter a financial statement showing the grantee’s or such entity’s gross revenues during the preceding quarter and the number of subscribers served. (Ord. #80-97, S17)

In the event that a franchise fee payment is not received by the City on or before the due date set forth in subsection 12-17.2 above, or is underpaid, the grantee will be charged interest from the due date at an interest rate equal to three (3%) percent above the rate for three-month Federal Treasury Bills at the most recent United States Treasury Department sale of such Treasury Bills occurring prior to the due date of the franchise fee payment. In addition, the grantee subject to the fee will pay a late charge of five (5%) percent of the amount of the unpaid or underpaid franchise fee payment. (Ord. #80-97, S17)

The franchise fee shall be paid in addition to fees, chargers, or assessments required by the City (Including, but not limited to, business license fees), unless such fee, charge, or assessment must be treated as a franchise fee under the Cable Act. (Ord. #80-97, S17)

The City may arrange for and conduct an audit of the financial records of a grantee, its contractors, subcontractors, or affiliates for the purpose of verifying franchise fee payments. The City shall notify the grantee in writing at least seven (7) days prior to the date of the audit, and the grantee shall make available for inspection and copying its books and records, and those of any affiliate as may be relevant to the determination of gross revenues and franchise fees due. Grantee shall make the records available to the City at the grantee’s expense at the Clearlake City Hall or at another location agreed to by the grantee and the City. (Ord. #80-97, S17)