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ORDINANCE NO. 2008-01 INTRODUCED BY: Mayor Rinker and Council as a Whole AN EMERGENCY ORDINANCE PURSUANT TO OHIO SENATE BILL 117 REQUIRING ALL VIDEO SERVICE PROVIDERS TO PAY FRANCHISE FEES AS DEFINED UNDER REVISED CODE 1332.32 TO INCLUDE ADVERTISING REVENUES AND TO SET A FRANCHISE FEE PERCENTAGE OF AT LEAST FIVE PERCENT (5%) FOR ALL VIDEO SERVICE PROVIDERS WITHIN THE VILLAGE AND DECLARING AN EMERGENCY. WHEREAS, Senate Bill ("SB") 117 was introduced in the Ohio Senate on March 15, 2007; and WHEREAS, with few modifications, the Bill was passed by the House and Senate and signed into law; and WHEREAS, the Bill became effective on September 24, 2007; and WHEREAS, pursuant to Senate Bill 117, a municipal corporation may enact an ordinance that uniformly applies to all video service providers and provides for the inclusion of advertising revenues in the definition of gross revenues pursuant to R.C. 1332.32(B)(2)(g) and sets forth the percentage of franchise fee revenues to be paid in the amount of five percent (5%) pursuant to Revised Code 1332.32(C)(1)(b); and WHEREAS, the Village wishes to enact such ordinance to require franchise fees to be paid on total advertising revenues as defined below and to set that rate for the payment of franchise fees based on gross revenues to be five percent (5%) and for both provisions to be uniformly applied to all video service providers within the Village. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF MAYFIELD VILLAGE, OHIO, THAT: Section 1: All video service providers within the Village shall be required to pay franchise fees on advertising revenues as defined as the net revenue received by the video service provider for advertising on its subscription-based video service within the Village. If the revenue is derived under a regional or national compensation contract or arrangement between the video service provider and one or more advertisers or advertising representatives, the amount of revenue derived by the applicable locality shall be determined by multiplying the total net revenue received by the video service provider under the contract or arrangement by the percentage resulting from dividing the number of subscribers in the Village by the total number of regional or national subscribers that potentially receive the advertising under the contract or arrangement. Section 2: A five percent (5%) franchise fee shall be charged on gross revenues payable by all video service providers in the Village.