Ordinance - 2137ORDINANCE NO. 2137
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, AMENDING THE WEST COVINA
MUNICIPAL CODE SECTION 11-20 (a) FRANCHISE FEE AMOUNT
AND PAYMENT AND SECTION 11-20 (b) INSPECTION OF RECORDS
• WHEREAS, the West Covina Municipal Code may be amended by ordinance only; and
WHEREAS, the City of West Covina has accepted a settlement agreement from Charter
Communications with regards to the Franchise Fee Audit for the years 2000-2003; and
WHEREAS, the City of West Covina has agreed to reduce the amount of liquidated
damages from two (2) percent per month to one (1) percent per month in the event that franchise
fees are not received within the specified time; and
WHEREAS, Charter Communications has agreed to change the specified time that
franchise fees are due from July 30 and December 30 to within thirty (30) days of the new
quarterly schedule of January 30, April 30, July 30, and October 30.
NOW, THEREFORE, the City Council of the City of West Covina does hereby ordain as
follows:
SECTION NO. 1: West Covina Municipal Code, Section 11-20 (a) and (b) is amended
to read as follows:
See. 11-20. Franchise fee.
(a) Franchise Fee Amount and Payment.
Any grantee granted a franchise under this article shall pay to the City, during the life of such
franchise, a sum equal to five (5) percent of the annual total gross receipts and in addition
thereto, such other sums as may be provided for elsewhere in this article. If, during any part
of the franchise term, a federal or state limitation is imposed on the amount of the franchise
fee percentage, such limitation shall apply only for the time period such limitation is legally
operational. Franchise fee payment by the grantee to the city shall be made within thirty (30)
days following the close of each calendar quarter (i.e., on or before April 30, July 30, October
30, and January 30), by delivery of the same to the City Treasurer. Franchise payments
required hereunder shall be in lieu of any business licenses, occupation tax, or similar levy.
The grantee shall file with the City Finance Director, within ninety (90) days after the
expiration of the grantee's fiscal year or portion thereof during which such franchise is in
force, a balance sheet, and statement of profit and loss prepared in accordance with generally
accepted accounting standards and practices and certified by an independent certified public
accountant (CPA), showing in detail the gross receipts, as defined herein, of the grantee
during the preceding fiscal year, or portion thereof. It shall be the duty of the grantee to pay to
the City, within fifteen (15) days after the time for filing such statements, the sum
hereinabove prescribed or any unpaid balance thereof for the fiscal year or portion thereof
covered by such statements.
(b) Inspection of Records.
• The City shall have the right to inspect and audit the grantee's fiscal records. If any
independent audit of the grantee's records directed by the City show a franchise fee error in
excess of two (2) percent in the City's favor, the grantee shall assume all reasonable costs for
said audit. No acceptance of any payment shall be construed as a release or as an accord and
satisfaction of any claim the City may have for further additional sums payable under this
section or for the performance of any other obligation hereunder.
Ordinance No.2137
July 5, 2005
In the event the above payments are not received by the City within the specified time, the
grantee shall pay to the City liquidated damages of one (1) percent per month on the unpaid
balance in addition thereto.
•
PASSED AND APPROVED on this 5`h day of July 2005.
Mayor Shelley Sanderson
ATTEST:
JtA4�
City Clerk LauA Carrico
1, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing Ordinance was regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the 2151 day of June 2005. That thereafter said Ordinance
was duly adopted and passed at a regular meeting of the City Council on the 5'h day of July 2005,
by the following vote:
AYES: Herfert, Hernandez, Miller, Wong, Sanderson
NOES: None
ABSENT: None
ABSTAIN: None /y
City Clerk Laurie Carrico
APPROVED AS TO FORM
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City At orney Arnold arez-Glasman
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