§ 9-218. CABLE SYSTEMS FRANCHISE FEE.

(a) A cable system operator shall pay to the City of Fresno a franchise fee in an amount equal to 5 percent of gross revenues, or such other amount as may be specified in the franchise documents; provided, however, that the amount shall be subject to increase should federal limits on fee payments be eliminated or changed and other cable operators are subject to a higher fee.

(1)  For purposes of calculating the franchise fee, gross revenues shall include a fair proportion of all revenues attributable to franchised cable services which are delivered by the franchisee, regardless of method. If a franchisee bundles, ties or combines the sale of some or all of its services, whether or not authorized by this franchise, and assesses its subscribers only one charge, the combined revenue therefrom shall be allocated to gross revenues to the full extent which would have been charged by franchisee if the subscriber had received only franchised cable services. In no event shall the amount allocated to franchised cable services under the foregoing calculation exceed the lesser of (1) the total amount of combined revenue actually received by a franchisee for unbundled services, or (2) the net revenue derived when mandatory tariff rates (if any) imposed by a governmental authority for components of the bundled, tied or combined services are deducted from the combined revenue. A franchisee may not alter or change any payments or amounts of compensation to the city which may be dictated by another franchise, ordinance, agreement or by applicable law and which are related to use of the public rights-of-way in the provision of non-franchised cable services in the city.

(2) In the event that a franchisee bundles services that are included in the definition of gross revenue with other services not included, the unbundled amount of gross revenue will be based on the published rate for any service provided for in a cable communications system franchise. Exception can be made with a clear showing by the franchisee that services offered pursuant to a franchise were discounted along with an accounting of the amount of said discount.

(3) If a franchisee offers its subscribers any kind of discount for receipt of both franchised cable and non-cable services (which are not included in the definition of gross revenues), the discount may be applied proportionately to franchised cable services and non-cable services upon notification to the city of such discount methodology. Such notification shall include the amount of the discount being applied to each service and documentation demonstrating the promotion and billing of such discount.

(4) The definition of gross revenue is to be as inclusive as possible consistent with existing applicable law. If a change in federal law occurs subsequent to the effective date of this ordinance, such change shall not impact the gross revenues definition in such a way to reduce gross revenues - unless the change specifically preempts the affected portion of the definition above. (Added Ord. 2004-105, § 2, eff. 11-30-04).