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34-38.1. State Franchise Fees.Any state franchise holder operating within the incorporated areas of the City shall pay to the City a state franchise fee equal to five percent (5%) of gross revenues.

34-38.2. Payment of Franchise Fees.The state franchise fee required pursuant to this Section 34-38 shall each be paid quarterly, in a manner consistent with California Public Utilities Code section 5860. The state franchise holder shall deliver to the City, by check or other means, which shall be agreed to by the City, a separate payment for the state franchise fee not later than forty-five (45) days after the end of each calendar quarter. Each payment made shall be accompanied by a report, detailing how the payment was calculated, and shall include such additional information on the appropriate form as designated by the City.

34-38.3. Audits.The City may audit the business records of the holder of a state franchise in a manner consistent with California Public Utilities Code section 5860(i).

34-38.4. Late Payments.In the event a state franchise holder fails to make payments required by this section on or before the due dates specified in this section, the City shall impose a late charge at the rate per year equal to the highest prime lending rate during the period of delinquency, plus one percent (1%).

34-38.5. Lease of City-Owned Network.In the event a state franchise holder leases access to a network owned by the City, the City may set a franchise fee for access to the City-owned network separate and apart from the franchise fee charged to state franchise holders pursuant to Section 34-38, which fee shall otherwise be payable in accordance with the procedures established by this section.