§ 5.16.620. Fee in lieu of franchise fee.

A.

In lieu of the franchise fee required by Part 3, an OVS franchisee shall pay to the city a fee of five percent of gross revenues.

B.

1.

A person leasing capacity from an OVS operator, other than a person whose revenues are included in the payment made under Section 5.16.620(A) shall pay the city a fee in lieu of the franchise fee required by Part 3 of five percent of the gross revenues of such person. For purposes of this Section 5.16.620(B)(1), the term gross revenues means all revenues, whether cash, in-kind or in any other form, of the person leasing capacity, or its affiliates, derived from use of the OVS to provide cable service in the city.

2.

Notwithstanding the foregoing, where a person, other than an affiliate, pays an OVS franchisee to use its franchisee's OVS (the "use payments"); and that person recovers those use payments through charges to its subscribers that are included in that person's gross revenues; and the OVS franchisee pays a franchise fee on those use charges; then that person may deduct from its gross revenues the use payments it makes.

(Ord. 12729 § 1 (part), 2006)