§ 16.64.010. Franchise fee payments to 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:

1.

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

2.

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:

1.

Three percent of the gross revenues to the county;

2.

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.)