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1*4 Ordinance No. 2007-105 WHEREAS, R.C. Section 1332.32(C)(2) further requires the City to provide all 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 specifically determines, by Ordinance uniformly applicable to all video service providers, that advertising revenues 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, but provides that the requirement to include advertising revenues in the base of gross revenues does not take effect until the first day of the first calendar quarter that begins more than thirty (30) days after giving such notice; and WHEREAS, in order to minimize the negative financial impact of the statewide franchising law on the City it is the intent of this Council to charge the maximum Video Service Provider Fee with the most expansive definition of gross revenues allowed by law; and WHEREAS, in order to provide timely notice 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 a VSP Fee is five percent (5%) and that advertising revenues shall Ue 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 (10) days of the City receiving notice that a video service provider will begin providing service in the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORTH OLMSTED, COUNTY OF CUYAHOGA AND STATE OF OHIO THAT: SECTION 1: In accordance with the requirements of R.C. 1332.32, 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 amount of five percent (5%) of gross revenues received from providing viaeo service in the City, which gross revenue base shall include advertising revenues as permitted and defined by R.C. 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 Cotmcil in Section 1 above, which notice shall be delivered in a manner that provides proof of timely delivery. 2 513259-1 ? . I