Ventura Municipal Code Art. 7 Franchise Fee

A franchisee will pay the city a franchise fee in an amount equal to five percent of gross revenues or such higher amount as may be permitted under applicable law, or such lesser amount as may be set forth in a cable franchise grant. (Ord. No. 99-38, § 4, 10-18-99)

Unless otherwise specified in a cable franchise grant, a franchisee will pay the franchise fee due to the city on a monthly basis. Payment for each month will be made to the city not later than 45 days after the end of each month. (Ord. No. 99-38, § 4, 10-18-99)

Unless a cable franchise grant provides otherwise, a franchisee or other entity subject to a fee under this section will file with the city within 45 days of the end of each calendar quarter a statement showing the franchisee’s or such entity’s gross revenues during the preceding quarter and the number of subscribers served. Penalties will not be imposed pursuant to Section 6.460.955 for failure to pay the full amount owed for any month in the quarter covered by the statement where:

A. The underpayment was submitted, with interest, along with the quarterly statement;

B. The franchisee submitted monthly payments based on the best revenue information available to it. (Ord. No. 99-38, § 4, 10-18-99)

The city’s acceptance of any franchise fee payment will not be construed as an accord that the amount paid is in fact the correct amount, nor will such acceptance of such franchise fee payment be construed as a release of any claim the city may have for additional sums payable. (Ord. No. 99-38, § 4, 10-18-99)

The franchise fee is not a payment in lieu of any tax, fee, or other assessment of general applicability (including any such tax, fee or assessment imposed on both utilities and cable operators or their services), consistent with 47 U.S.C. Section 542(g)(2). (Ord. No. 99-38, § 4, 10-18-99)

A. A franchisee or other entity subject to a franchise fee under this provision will file within 90 days following the end of each of its fiscal years a statement setting forth the computation of gross revenues used to calculate the franchise fee for the preceding year and a detailed explanation of the method of computation showing:

1. Gross revenues by category (e.g., basic, pay, pay-per-view, advertising, installation, equipment, late charges, miscellaneous, other); and

2. What, if any, deductions were made from gross revenues in calculating the franchise fee (e.g., bad debt), and the amount of each deduction.

B. The statement will be certified by an independent certified public accountant, the chief financial officer of the franchisee paying the fee, or such other person authorized and qualified to make representations on behalf of such franchisee regarding its revenues. (Ord. No. 99-38, § 4, 10-18-99)

A. The city may, from time to time, and upon reasonable advance written notice, inspect and audit any and all books and records reasonably necessary to the determination of whether gross revenues and franchise fees have been accurately computed and paid.

B. If, as a result of the audit, it is determined that the franchisee has underpaid the franchise fees owed in an amount exceeding five percent of the franchise fees actually paid or $10,000, whichever is less, the reasonable cost of the audit will be borne by the franchisee responsible to pay the fee.

It will be the franchisee’s responsibility to have all books and records necessary to satisfactorily perform the audit readily available in the city to the persons performing the audit, or at such other convenient location as the city and a franchisee may provide in a cable franchise grant.

C. Nothing in this section expands or extends the document retention period set out in this code. (Ord. No. 99-38, § 4, 10-18-99)

Should the city not receive a franchise fee payment on or before the due date set forth above, or is underpaid, the franchisee subject to the fee will be charged interest from the due date at an interest rate equal to three percent above the rate for three-month federal treasury bills at the most recent United States Treasury Department sale of such treasury bills occurring before the due date of the franchise fee payment. (Ord. No. 99-38, § 4, 10-18-99)

In the event that a cable franchise terminates for whatever reason, the franchisee will file with the city within 90 calendar days of the date its operations in the city cease (the “termination date”) a final statement of gross revenues for the period from the beginning of the calendar year in which the cable franchise terminated to the termination date, which statement will contain the information and be certified as required by this article. (Ord. No. 99-38, § 4, 10-18-99)

In the event of any holding over after expiration or other termination of any cable franchise granted hereunder, without the city’s consent, the franchisee will pay to the city the maximum franchise fee permitted by applicable law. (Ord. No. 99-38, § 4, 10-18-99)