34-17.1. Franchise Fee Rate.A Grantee shall pay to the City an amount equal to five (5) percent of the gross revenues derived from the operation of its cable system in the City, or the maximum fee permitted by federal law, if larger.

34-17.2. Late Payment Fee.A Grantee shall pay interest as a late payment fee on all overdue payments. The interest shall be the maximum permitted by California law, unless otherwise provided in the Franchise.

34-17.3. Franchise Fee is Separate Fee.The Franchise fee shall be paid in addition to fees, charges, or assessments required by the City (including, but not limited to, business license fees), unless such fee, charge, or assessment must be treated as a Franchise fee under the Cable Act.

34-17.4. Audit.The City may arrange for and conduct an audit of the financial records of a Grantee, its contractors, subcontractors, or affiliates for the purpose of verifying Franchise fee payments. The City shall notify the Grantee in writing at least seven (7) days prior to the date of the audit, and the Grantee shall make available for inspection and copying its books and records, and those of any affiliate as may be relevant to the determination of gross revenues and Franchise fees due. Grantee shall make the records available to the City at the Grantee’s expense at the Monterey City Hall.