For the use of the Streets, each Licensee shall pay License Fees in the amount prescribed by Section
5.75.502, below.
(SCC 690 § 1, 1987; SCC
786 § 1, 1989)
During the term of each License, each Licensee shall pay to
the Cable Television Commission an amount equal to 5% per year of
the Licensee's annual Gross Revenue.
Said fees shall be paid quarterly not later than August 1, November
1, February 1, and May 1 for the preceding three month period ending,
respectively, June 30, September 30, December 31 and March 31. Not
later than the date of each payment, each Licensee shall file with
the Clerk of the Board of Directors of the Cable Television Commission
and with the Governing Bodies of the County and Cities a written statement
signed under penalty of perjury by an officer of the Licensee which
identifies in detail the sources and amounts of Gross Revenues received
by a Licensee during the quarter for which payment is made.
No acceptance of any payment shall be construed as an accord
that the amount paid is, in fact, the correct amount, nor shall such
acceptance of payment be construed as a release of any claim which
the Commission may have for further or additional sums payable under
the provisions of this section.
(SCC 690 § 1, 1987; SCC
786 § 1, 1989)
Any License Fees which remain unpaid after the dates specified in Section
5.75.502 above shall be delinquent and shall thereafter accrue interest at the maximum legal rate until paid. As used in this section the maximum legal rate shall be that rate set forth in Section 685.010 of the California
Code of Civil Procedure, as amended from time to time, or any successor California statute establishing the rate interest accrues for money judgments.
(SCC 690 § 1, 1987; SCC
786 § 1, 1989; SCC 1225 § 5,
2002)
Not less than annually, the Licensee shall provide the Cable Television Commission with a unqualified certification of an independent certified public accountant certifying the accuracy of the quarterly License Fee payments paid within the preceding 12 months pursuant Section
5.75.502 above. Said certification shall be prepared in accordance with generally accepted accounting standards as established by the Financial Accounting Standards Board (FASB).
(SCC 690 § 1, 1987; SCC
786 § 1, 1989)
a. For purposes of the gross revenue calculations required by Section
5.75.502 above, the phrase "financial interest" as used in Section
5.75.012(f) above shall include but not be limited to:
1. Any contract in which the Licensee or any named owner thereof is
to receive a percentage of the gross revenues and/or a percentage
of the net income of the other party to the transaction by reason
of the activities encompassed by said contract;
2. Any debt relationship in which the Licensee or any named owner thereof
as debtor borrows funds at a rate more advantageous than that generally
available to similarly situated entities of similar credit worthiness;
3. Any debt relationship in which the Licensee or any named owner thereof
as creditor receives a rate of interest exceeding that which would
otherwise be paid by a similarly situated debtor of similar credit
worthiness;
4. Any option or warrant to purchase the stock or other equity interest
in an entity or entity related to an entity which generates revenues
arising from or attributable to the operation of the system;
5. Any debt relationship which has conversion privileges to a form of
equity of the nature described in the preceding subsection.
b. For purposes of the gross revenue calculation required by Section
5.75.502 above, the phrase "arising from or attributable to operation of the cable television system" as used in Section
5.75.012(f) above shall include but not be limited to:
1. Any activity, product or service which generates revenue of any type
whatsoever and which is offered to the subscribers of the system by
means of the system or any related service;
2. Any activity, product or service which is revenue producing and is
offered to the subscribers of the system by any medium other than
the system including but not limited to direct mail and home delivery
if the system's subscriber list or any portion thereof is utilized
for purposes of solicitation;
3. Any activity, product or service in the production or provision of
which any of the assets of the system including but not limited to
cable, production facilities, and administrative facilities, are included,
unless reasonable consideration is paid to the system for such utilization;
4. Any television programming or other services offered to the citizens
of Sacramento County within the term of the License by any means of
delivery whatsoever where such programming or services are or could
be offered by means of the system.
(SCC 690 § 1, 1987; SCC
786 § 1, 1989)
The Auditor of the Cable Television Commission may, from time-to-time
during the term of a License prescribe standards governing the nature,
extent and type of accounting system and accounting procedures utilized
by a Licensee and require changes in accounting standards or procedures
utilized by a Licensee, for the purpose of promoting the efficient
administration of the License Fee requirements of this chapter. Any
such standards shall be in writing, shall be filed with the Clerk
of the Board of Directors of the Commission, and shall be mailed to
the Licensee to whom directed. A Licensee shall promptly comply with
all such standards.
During the term of each License, the Cable Television Commission may, not more frequently than once each year, conduct an audit of the books, records and accounts of the Licensee for the purpose of determining whether the Licensee has paid License Fees in the amounts prescribed by Section
5.75.502, above. The audit may be conducted by the Auditor of the Commission or by an independent certified public accounting firm retained by the Commission, and shall be conducted at the sole expense of the Commission. The party conducting the audit shall prepare a written report containing its findings, and the report shall be filed with the Clerk of the Board of Directors of the Commission, and mailed to the County, Cities and Licensee. Each Licensee shall make available for inspection by authorized representatives of the Cable Television Commission, its books, accounts, and all other financial records at reasonable times and upon reasonable advance notice for the purpose of permitting exercise of the authorities conferred by this section.
(SCC 690 § 1, 1987; SCC
786 § 1, 1989)