A. Every state franchisee operating within the boundaries of the town shall pay a franchise fee to the town in the amount of five percent of that state franchisee’s gross revenues derived from the operation of its network to provide cable or video services within the town.

B. For purposes of this chapter, “gross revenue” shall have the meaning set forth in California Public Utilities Code Section 5860.

C. A state franchisee shall remit the franchise fee to the town quarterly, within forty-five days after the end of each calendar quarter. Each payment shall be accompanied by a summary explaining the basis for the calculation of the franchise fee.

D. If a state franchisee fails to pay the franchise fee when due, or underpays the proper amount due, the state franchisee shall pay a late payment charge at an annual interest rate equal to the highest prime lending rate during the period of delinquency, plus one percent. (Ord. 569 § 7 (part), 2007)