Los Angeles County Municipal Code Ch. 16.64 Compensation to the County

A.

As consideration for the franchise granted, franchisee shall pay to the county in lawful money of the United States, during the life of the franchise, for each and every year, including the year of granting the franchise, according to the "franchise payment period" as defined in Chapter 16.58, five percent of its gross revenues derived from the authorized franchise service area(s), that are received by franchisee pursuant to Section 16.58.320.

B.

Said franchise fee shall be computed as follows:

Franchisee shall pay a minimum monthly fee as provided in the ordinance granting the franchise;

Annually the franchisee shall pay the percentage fee of five percent of its gross revenues less the total minimum monthly fee(s) paid during the franchise payment period.

C.

Franchisee shall make the monthly fee required herein payable on the first day of each month during the life of the franchise. Franchisee shall make the annual percentage payment concurrently with the filing of the reports required by Section 16.60.180.

D.

Said franchise fee payments shall be distributed by county as follows:

Three percent of the gross revenues to the county;

Two percent of the gross revenues shall be placed in an interest-bearing trust fund account as approved by the auditor- controller of the county.

E.

Commencing January 1st after the first full calendar year of operational service to subscribers, the amount of the minimum monthly fee shall be subject to an annual readjustment on each January 1st for the remainder of the term of the franchise. Franchisee shall recalculate the monthly fee amount to provide that said monthly fee amount shall be in an amount no less than 90 percent of the total franchise fee payment due to the county for the preceding calendar year, said 90-percent amount to be prorated by 12 to determine the monthly fee amount to be paid during the current year.

F.

Franchisee and the director may mutually agree to modify the method or amount of minimum monthly fee payments. Any such modification shall consider the annual franchise period as being based on a calendar year.

G.

Any overpayment of franchise fees paid during the previous annual payment period shall be credited to future franchise fees in succeeding franchise fee payment years, and shall be deducted from the monthly fee amounts or annual percentage amounts as required by the ordinance granting the franchise. At such time as overpayment has been made, franchisee shall notify the auditor-controller of the county of franchisee's intention to deduct any said overpayment(s) from the current monthly fee amount(s) due and indicate the scheduling of any such deduction(s).

H.

In addition to the foregoing, the county reserves the right to change its fees if after a public hearing it determines good cause is found and such action is not in conflict with federal laws, FCC rules and regulations or the laws of the state of California.

(Ord. 88-0159F § 1 (part), 1988.)

In addition to the foregoing franchise fee payments, the franchisee shall pay the county department of public works, within 60 days after the end of each calendar year, during the life of the franchise, an initial construction charge for all new construction during said calendar year, calculated at a rate of $100.00 per mile or fraction thereof for all lines and cables laid during the preceding franchise payment period within the authorized franchise service area.

(Ord. 88-0159F § 1 (part), 1988.)

In the event any amount paid is incorrect in the judgment of the auditor-controller of county, it may order the payment of such additional sum or sums as it may find thereunder.

(Ord. 88-0159F § 1 (part), 1988.)

In the event franchisee fails to make any payments for the franchise on or before the dates due as hereinabove provided, franchisee shall pay as additional consideration the following amount: a sum of money equal to 10 percent of the amount due. For each period of late payment of any fee extending beyond 30 days of the due date, in addition to the 10-percent late payment charge, an assessment of interest shall accrue at one percent per month. The added charge(s) for late payment shall be added to, and be due and payable with, the next succeeding payment. The county shall not be obligated to notify the franchisee of the accumulation of late payment charges.

(Ord. 88-0159F § 1 (part), 1988.)

A.

Franchisee shall keep and preserve, for a period of five years after the date of each franchise payment period, all records necessary to determine the amount of such franchise fees or other payments due under Sections 16.64.010 and 16.64.020. Franchisee, upon demand by county, shall make such records available for inspection and audit by county or its authorized representative, within the county of Los Angeles.

B.

At all reasonable times, the franchisee shall permit county, or its duly authorized representative, to examine all property of the franchisee erected, constructed, laid, operated or maintained pursuant to the franchise, together with any appurtenant property of the franchisee, and to examine, audit, and transcribe any and all books, accounts, papers, maps and other records kept or maintained by the franchisee or under its control which relate to the operations, affairs, transactions, property or financial condition of the franchisee with respect to the franchise.

(Ord. 88-0159F § 1 (part), 1988.)

If the report of gross revenues made by the franchisee should be found to be less than the amount of gross revenues disclosed by audit and observation, franchisee shall pay the delinquent amount and all charges required by Section 16.64.050 within 30 days of billing thereof. In the event that the additional franchise fee amount due to county exceeds two percent of the total amount which should have been paid as determined by such review or audit, and there is no reasonable basis for the failure to report or pay thereon, franchisee shall pay the cost of the audit.

(Ord. 88-0159F § 1 (part), 1988.)

County reserves the right for cause to require franchisee to obtain, at franchisee's cost, an independent audit by a certified public accountant on an annual basis, or as otherwise required by the director. The certified public accountant shall be required to certify in the audit that franchisee is in compliance with the ordinance granting the franchise. This right shall be in addition to the county's right to conduct audits.

(Ord. 88-0159F § 1 (part), 1988.)