Article II — FEES

Any state franchise holder operating within the Town shall pay to the Town a state franchise fee equal to five (5) percent of the gross revenues of it or any affiliate that may be subject to a franchise fee under California Public Utilities Code section 5860.

(Ord. No. 2163, 8-4-08)

Any state franchise holder operating within the Town shall pay to the Town a PEG fee equal to one (1) percent of the gross revenues of it or any affiliate that are subject to a franchise fee under California Public Utilities Code section 5870.

(Ord. No. 2163, 8-4-08)

The state franchise fee required pursuant to section 31.20.010, and the PEG fee required pursuant to section 31.20.020, shall each be paid to the Town quarterly, in a manner consistent with California Public Utilities Code section 5860. The state franchise holder shall deliver to the Town, by check or other means specified by the Town, a payment for the state franchise fee and a separate payment for the PEG fee not later than forty-five (45) days after the end of each calendar quarter. Each payment made shall be accompanied by a report, detailing how the payment was calculated, containing such information as the Town Manager may require, consistent with DIVCA. Unless the Town Manager provides otherwise, the summary statement shall identify:

(1)

Revenues received from subscribers, by category, with service revenues broken out by service levels;

(2)

Any charges to subscribers for which revenues were received, but on which a franchise fee was not paid;

(3)

Where the fee is paid on an allocated portion of revenues received, the total revenues received; the allocation factor; and how the allocation factor was calculated.

(Ord. No. 2163, 8-4-08)

The Town may audit the business records of the holder of a state franchise in a manner consistent with California Public Utilities Code section 5860(i).

(Ord. No. 2163, 8-4-08)

In the event a state franchise holder fails to make payments required by this chapter on or before the due dates specified in this chapter, the Town shall impose a late charge at the rate per year equal to the highest prime lending rate during the period of delinquency, plus one (1) percent.

(Ord. No. 2163, 8-4-08)

In the event a state franchise holder leases access to a network owned by the Town, the Town may require a fee for access to the Town-owned network separate and apart from the franchise fee charged to state franchise holders pursuant to section 31.20.010, which fee shall otherwise be payable in accordance with the procedures established by this chapter.

(Ord. No. 2163, 8-4-08)