Long Beach Utility Franchise Fees - City Rules
In Long Beach, California, utility franchise fees are imposed under city authority and administered through the municipal code and franchise agreements with private and public utilities. This guide explains where to find governing language, what typical franchise fee structures cover, how enforcement and penalties work, and practical steps to confirm obligations for a utility or a business that pays or collects franchise fees. Refer to the City of Long Beach Code of Ordinances for the controlling provisions and any executed franchise agreement. City of Long Beach Code of Ordinances[1]
Scope and when franchise fees apply
Franchise fees often apply to utilities that use public rights-of-way to provide services—examples include cable, gas, electric, water, and telecommunications. The fee mechanism may be codified in a general franchise chapter of the municipal code or implemented through an individual franchise agreement between the city and the utility operator. The municipal code and any active franchise agreement determine which services are subject to fees, fee bases (gross receipts, linear feet, or per-account charges), and payment schedules.
Typical fee structure and accounting
- Basis: franchise fees are commonly calculated as a percentage of gross revenues from utility services provided within city limits.
- Rate: specific percentage rates and allowable deductions are set by ordinance or by franchise agreement and can vary by utility type.
- Reporting: utilities typically must submit periodic reports supporting the fee calculation and payments.
- Payment schedule: monthly or quarterly payments are common; exact due dates are defined in the controlling document.
Penalties & Enforcement
Enforcement of franchise fee requirements is handled by the city department or office designated in the code or franchise agreement. The municipal code provides the enforcement framework, but specific fines, daily penalties, or interest rates are often detailed in the ordinance or the franchise contract.
- Fine amounts: not specified on the cited page.
- Escalation: first, repeat, or continuing offence escalations are not specified on the cited page.
- Non-monetary sanctions: may include orders to comply, requirements to submit corrected reports, withholding of city approvals, or referral to city attorney for civil action; specific remedies depend on the ordinance or agreement.
- Enforcer: the City department named in the ordinance or franchise agreement (commonly Finance or Public Works) enforces the fee; complaints and audits are channeled to the listed office.
- Inspection and complaint pathways: utilities and residents can contact the enforcing department or file complaints as described in city procedures.
- Appeals/review: appeal routes and time limits (for audits, assessments, or penalties) are established by ordinance or contract; if not stated in the controlling document, time limits are not specified on the cited page.
Applications & Forms
The controlling ordinance or franchise agreement will specify required reports and any city forms. If no standard form is published, the city typically requires written reports or adopted accounting statements; the cited consolidated municipal code does not publish a universal franchise fee form.
Action steps for utilities and businesses
- Locate the active franchise agreement or ordinance that applies to your utility service.
- Prepare and retain documentation supporting gross receipts and deductions used to calculate fees.
- Submit timely payments and reports according to the schedule in the controlling document.
- If assessed, follow the city appeal procedure and meet any stated deadlines to preserve rights.
FAQ
- Who must pay a franchise fee?
- Any utility or service provider that operates under a city franchise or uses public rights-of-way as defined in the controlling ordinance or franchise agreement.
- Where are the rates published?
- Rates are published in the franchise ordinance or in the executed franchise agreement; consolidated code text may not include rate schedules for individual contracts.
- How do I dispute an assessment?
- Follow the appeal or protest procedure set out in the ordinance or franchise contract and contact the enforcing department for deadlines and submission requirements.
How-To
- Identify whether your service is covered by a Long Beach franchise ordinance or an executed franchise agreement.
- Obtain the specific franchise agreement or ordinance language from the City Clerk or municipal code repository.
- Compile accounting records and prepare the required fee report per the controlling document.
- Submit reports and payments to the designated city department, and retain proof of submission.
- If you receive an audit or assessment, request the basis, review supporting calculations, and file an appeal within stated deadlines.
Key Takeaways
- Franchise fees are governed by ordinance or individual franchise agreements; review the applicable contract.
- Maintain clear revenue records to support fee calculations and audits.
Help and Support / Resources
- City Clerk - Municipal Code and Records
- Public Works - Franchises and Concessions
- Finance Department - Fees and Treasury