79-07 Fees Paid by Video Service

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WHEREAS, R.C. Section 1332.32 provides that the VSP Fee shaii be zero percent (0%) of gross revenues unless the City determines by Ordinance that the VSP Fee will be a percentage of gross revenues not to exceed five percent (5%) of gross revenues; and WHEREAS, R.C. Section 1332.32(C)(2) further requires the City to provide ail video service providers offering service in the City with notice of the VSP Fee requirements within ten (10) days of receiving notice from the video service provider that it will begin offering service in the City, or the video service provider is not required to pay the VSP Fee to the City; and WHEREAS, R.C. Section 1332.32(B)(2)(g) provides that the VSP Fee is paid on a base of gross revenues consisting of revenues received from subscribers only, unless the City specificaiIy detemtines, by Ordinance uniformly applicable to ail video service providers, that advertising revanues also be included in the base of gross revenues on which the VSP Fee is paid; and WHEREAS. R.C Section 1332 32(B)(2)(g) requires the City to promptly notify affected video service providers of the Ordinance determining to include advertising revenues in the base of gross revenues on which the VSP Fee is paid, bu! provides that the reqmremem *o include advertising revenues in the base of gross revenues does not take efi'ect until the first day of the first calendar quarter that begins more than thirty (301 days at~er giving such notice: and WHEREAS, in order to minimize the negative financial hnpacr of the statewide fianchising law on the City it is the intent of this Council to charge the maximum Video Service Provider Fee with the mos~ expansive definition of gross revenues ailowed by law; and WHEREAS, in order to provide timely ootice to a video service provider of the VSP Fee, it is necessary for this Council to determine now that the percentage of gross revenues that shall be paid as the VSP Fee is five percent (5% ~ and that advertising revenues shail be included in the base of gross revenues on which the VSP Fee is paid, and to authorize the Mayor to provide notice of the VSP Fee to a video service provider within ten (103 days. of the City receiving notice that a video service provider will begin providing service in the City; and WHEREAS. this Council by a vote of at least five (5/ members elected thereto determines that this ordinance is an emergency measure, and that th/s ordinance shail take effem at the earliest date possible as set forth in ARTICLE III. SECTONS I0 and 13 of the SECOND AMENDED CHARTER OF THE CITY OF LAKEWOOD. and that it is necessary for the immediate prese~:vafion of the public property, heaith and safety, and to provide for the usuai daily operation of municipal deparananrs, more specificaiiy to establish at the earliesl possible time the terms and conditions of the video service provider fee applicable to a video service provider operating under a state-issued video service authorization in order to ensure that the City continues to receive appropriate fees from persons providing video and/or cable servme m the City using the City's rights-of-way NOW. THEREFORE, BE IT ORDAINED BY THE COLrNCIL OF THE CITY OF LAKEWOOD, OHIO: SECTION 1. In accordance with the requirements of R.C~ 133232, and subject to its taking effect, all video service providers providing video service in the City pursuant to a video service authorization obtained from the Director of the Ohio Department of Commerce shall pay Video Service Provider Fees ("VSP Fees") in the mnount of five percent (5%) of gross revenues received from providing video sarvice in the City, which gross revenue base shall include advertising revenues as permitted and defined by RC 1332 32(B)(2)(g). The VSP Fee shall be paid quarterly, not sooner than forty-five (45) days nor later than sixty (60) days after the end of each calendar quarter. SECTION 2 The Mayor is hereby authorized and directed, upon receipt of notice from a video service provider that it will begin providing video service in the City pursuant to a state- issued video service authorization, to provide such video service provider with notice of the VSP Fee as determined by this Council above, which notice will be given by overnight (return receipt) or certified mail or other manner of delivery no later than ten (I0) days frown receipt of the provider's notice s12303-2 2