2.10.350 Fee in lieu of franchise fee.

   (a)   In lieu of the franchise fee required by Section 2.10.250, an OVS franchisee shall pay to the city a fee in an amount equal to five percent of the gross revenues of the OVS franchisee or its affiliates, or such other amount as may be specified in the franchise; provided, however, that if the franchise specifies an amount, that amount shall be subject to modification in the event federal limits on fee payments are modified and other operators are subject to the same modified fee.

   (b)   A person leasing capacity from an OVS operator other than a person whose revenues are included in the payment made under Section 2.10.350(a) shall pay the city a fee in lieu of the franchise fee required by Section 2.10.250 of five percent of the gross revenues of such person.

   (c)   Notwithstanding the foregoing, where the OVS franchisee charges a person other than an affiliate, to use its 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 that person fully recovers the use payments through the charges to its subscribers and pays a fee on those charges pursuant to Section 2.10.350(b); then the OVS franchisee may deduct from its gross revenues the use payments it receives from that person.

(Ord. 4636 § 31, 2000)