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HomeMy WebLinkAboutORD 5409Amends ORD:4413 CITY OF RENTON,WASHINGTON ORDINANCE NO.5409 AN ORDINANCE OF THE CITY OF RENTON,WASHINGTON, AMENDING CHAPTER 17,CABLE COMMUNICATION SYSTEMS,OF TITLE V (FINANCE AND BUSINESS REGULATIONS)OF ORDINANCE NO.4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON,WASHINGTON,"TO AMEND THE DEFINITION OF "GROSS REVENUES"AND THE REGULATIONS REGARDING THE GRANTING OF FRANCHISES AND TECHNICAL STANDARDS. WHEREAS,Chapter 17,Cable Communication Systems,of Title V (Finance and Business Regulations)is the Municipal Code that governs Cable Communication Systems;and WHEREAS,changing circumstances make it necessary to amend the existing Chapter 17; NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON,DOES ORDAIN AS FOLLOWS: SECTION I.Section 5-17-1,Definitions,of Chapter 17,Cable Communication Systems of Title V (Finance and Business Regulations)of Ordinance No.4260 entitled "Code of General Ordinances of the City of Renton,Washington,"is hereby amended so that the definition of "Gross Revenues"reads as follows: GROSS REVENUES:means,for purposes of Franchise Fee calculations,all revenue received by the franchisee or its affiliates,as defined in the Federal Cable Act,in whatever form and from all sources,derived from the operation of franchisee's Cable System to provide Cable Services,including any revenue received by the franchisee from any use of any component of the Cable System for any purpose by the Operator or by others.Gross Revenues shall include, without limitation,revenue received from:1)Cables Services;2)converter and 1 ORDINANCE NO.5409 equipment rentals;3)advertising;4)installations;5)sales occurring as a result of home shopping or similar programming;6)leased channels;7)sales of programming guides;8)Franchise Fees;and 9)fees,payments or other consideration paid by programmers and commissions on advertising accounted for in accordance with generally accepted accounting principles (GAAP).Gross Revenues shall not include revenues received from telecommunications services or revenues received by third parties unless such revenues are of a type normally received by the Franchisee prior to the date of this Franchise or would normally be received by a Cable Operator similarly situated in the ordinary course of business as compensation for use of the Cable System.Gross Revenues shall be determined without deduction for (l)any operating expense;(2)any accrual;or (3)any other expenditure,regardless of whether such expense,accrual or expenditure reflects a cash payment,and revenue shall be counted only once in determining Gross Revenues.Gross Revenues shall not include funds that the Franchisee is legally obligated to collect as sales or similar taxes imposed directly on Subscribers.This definition shall be construed so as to include all Gross Revenues to the maximum extent permitted by federal and state law,except to the extent specifically excluded in this section,and encompasses revenues that may develop in the future,whether or not anticipated.If a statutory change in state or federal law or a decision of the FCC or a court of competent jurisdiction expands the categories of revenue available to the City for the Franchise Fee assessment beyond those permitted under this definition as of the Effective Date,that change shall automatically be included in the definition of Gross Revenues under this 2 ORDINANCE NO.5409 Franchise,provided that the City imposes the same requirement upon any other similarly situated multichannel video provider over which the City has jurisdiction and authority to impose such fees. SECTION II.Section 5-17-8,Technical Standards,of Chapter 17,Cable Communication Systems,of Title V (Finance and Business Regulations)of Ordinance No.4260 entitled "Code of General Ordinances of the City of Renton,Washington,"is hereby amended by adding a new subsection,to read as follows: C.Technical Audit:Each franchisees shall annually provide to the City a certification signed by its vice president of engineering for the State of Washington,or other senior engineer as agreed upon by the City,certifying that its policies and procedures comply with all applicable laws and codes and that all known maintenance issues have been repaired in compliance therewith. SECTION III.Except for the changes indicated above,Chapter 17,Cable Communication Systems,of Title V (Finance and Business Regulations)remains intact. SECTION IV.This ordinance shall be effective upon its passage,approval,and thirty (30)days after publication. PASSED BY THE CITY COUNCIL this 15th day of September Bonnie Walton,City Clerk ,2008. APPROVED BY THE MAYOR this 15thdayof September ,2008. ~~k=-Denis Law,Mayor 3 ORDINANCE NO.5409 Approved as to form: et:...._....'2W~..--. Lawrence J.Warren,City Attorney Date of Publication:9/20/2008 (summary) ORD.1492:7/14/08:scr 4