Division 5 — Administration and Enforcement

All cable operators shall pay a franchise fee to the city in an amount equal to five percent of the cable operator's gross revenues. The cable operator shall make franchise fee payments on the first day of each quarter year, or at such other times specified in the franchise agreement. Franchise fee payments shall be submitted together with documentation of the cable operator's gross revenues in such form as may be required by the city from time to time. (Ord. 02-883 § 2, 2002)

All cable operators shall pay compensation to the city for use of public property in an amount equal to five percent of the cable operator's gross non-cable revenues. Payments shall be submitted to the city on the first day of each quarter of each calendar year together with documentation of the cable operator's gross non-cable revenues in such form as may be required by the city from time to time. (Ord. 02-883 § 2, 2002)

In consideration of the use of public property, any person other than a cable operator who provides cable service or any other telecommunications service over a cable system for which charges are assessed to subscribers but which are not received by a cable operator shall pay a fee to the city in an amount equal to five percent of that person's gross revenues and gross non-cable revenues. The cable operator whose cable system is used by such person shall collect the foregoing fee from such person no later than the tenth (10th) day prior to the close of each calendar quarter and shall remit the fee to the city no later than the first (1st) day of the following calendar quarter. If the cable operator fails to collect or remit all or part of this fee, the cable operator shall be directly liable to the city for payment of the uncollected or unremitted fee. (Ord. 02-883 § 2, 2002)

The city has the right to inspect and audit all of the cable operator's books and records and those of its affiliates relevant to an accurate determination of the total amount of the cable operator's gross revenues and gross non-cable revenues. The cable operator shall make such records available to the city within 14 days of the city's request. Such records shall be available for inspection by the city at the cable operator's office within the city during normal business hours. Such records shall be retained by the cable operator for a period of at least five years. The city will bear the cost of any such audit; provided, however, that if such audit indicates a franchise fee underpayment of three percent or more of the amount due, the cable operator shall reimburse the city for all reasonable costs relating to the audit. Any additional amount due to the city as a result of the audit shall be paid within 30 days following written notice to the cable operator, which notice shall include a copy of the audit report. If the cable operator believes the audit report is in error, it may send a written response to the city describing the error in lieu of making the payment. If the city disagrees with the response, it shall notify the cable operator in writing, after which the cable operator shall pay the additional amount due within 30 days. The city may elect to perform such audit jointly with one or more other government agencies which regulate affiliated systems. (Ord. 02-883 § 2, 2002)

In the event that the cable operator does not make any payments required by this chapter on or before the date due, a late payment penalty shall accrue at a rate of one and one-half percent month on the unpaid amount until paid. (Ord. 02-883 § 2, 2002)

The cable operator shall maintain at its local office within the city, and shall make available for inspection and auditing at that office within seven days after receipt of a written request by the city, complete and accurate books, records, strand maps, plans and other materials of the cable operator which are reasonably related to the city's review of the cable operator's compliance with this chapter and the franchise agreement. To the extent that an affiliate of the cable operator aggregates information relating to the cable system together with information bout other cable systems, the cable operator shall have copies of such records available for inspection and auditing at the local office within seven days after receipt of written request by the city. The city shall maintain the confidentiality of any of the foregoing records to the extent that they are not public, contain sensitive business information and confidentiality is permitted by law. (Ord. 02-883 § 2, 2002)

• A. The cable operator shall at all times make and keep on file in the office of the community development director current, full and complete plans and records to a scale and form approved by the community development director, showing the exact location of all cable system equipment installed or in use in streets, alleys and public places in the city.

• B. The cable operator shall file with the community development director, on or before the last day of March of each year, a current strand map or set of strand maps drawn to a scale and in the format designated by the community development director, showing all cable system equipment installed in streets, alleys and public places of the city during the previous year.

• (Ord. 02-883 § 2, 2002)

• A. The cable operator shall at all times during the existence of any franchise issued hereunder maintain in full force and effect at its own cost and expense the following policies of insurance:

  1. A general comprehensive liability insurance policy with minimum liability limits of two million dollars ($2,000,000.00) combined single limit per occurrence for bodily injury, personal injury and property damage;

  2. An automobile liability policy with minimum liability limits of two million dollars ($2,000,000.00) combined single limit per accident for bodily injury and property damage; and

  3. Workers' compensation insurance with minimum policy limits as required by state law.

• B. All of the foregoing policies (except workers' compensation insurance) shall all name the city, its officers, officials, agents, employees and volunteers as insureds, and shall be primary to any insurance maintained by the city. The precise terms of these policies, including but not limited to liability limits, deductibles, acceptable insurers and other terms, shall be specified in the franchise agreement.

• (Ord. 02-883 § 2, 2002)

The cable operator shall indemnify, defend and hold harmless the city and its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with the cable operator' s enjoyment of the franchise hereunder, or its failure to comply with any of its obligations contained in the franchise agreement or this chapter, or arising out of the construction, installation, maintenance, operation or removal of its cable system, except such loss or damage which was caused by the sole negligence or willful misconduct of the city. (Ord. 02-883 § 2, 2002)

Within 30 days after the effective date of a franchise agreement, the cable operator shall deposit with the city an irrevocable letter of credit in the amount set forth in the franchise agreement in a form and with an institution approved by the city. The letter of credit may be drawn upon by the city for the purpose of remedying any noncompliance by the cable operator with any provision of this code or the franchise agreement.

(Ord. 02-883 § 2, 2002)

The granting of a franchise pursuant to this chapter nay create an interest subject to property taxation pursuant to California Revenue and Taxation Code Section 107 et seq. The cable operator shall be solely responsible for payment of any such taxes. (Ord. 02-883 § 2, 2002)