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Ordinance 03-020 Establishes Franchise Fee on Cable TV Services CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHPIGTON ORDINANCE NO. 20 AN ORDINANCE OF THE CiTY OF SPOKANE VALLEY, WASHINGTON, ESTABLISHING A FRANCHISE FEE ON CABLE TELEVISION SERVICES TO PROVIDE REVENUE FOR GENERAL CITY SERVICES AND CAPITAL FACILITIES, AND SETTING PENALTIES FOR NON-COMPLIANCE. WHEREAS, the voters of the City of Spokane Valley on May 21, 2002 approved the incorporation of the City of Spokane Valley; and WHEREAS, 47 U.S.C. 541 and 542 provides that cities may impose fees upon persons who operate cable television businesses but requires that city fees on cable television businesses not be "unduly discriminatory against cable operators and subscribes"; and WHEREAS, R.CW 35A.47.040 allows the City to regulate the use of public right of way through the issuance of non-exclusive franchise agreements; and WHEREAS, the City Council has determined that the public interest is best served by implementation of a 5% franchise fee on cable television services, to be effective April 1, 2003; NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington, do ordain as follows: Section 1. Use and Accountability of Franchise Fee. All fees collected pursuant to this ordinance shall he deposited into the General Fund, and shall be used for the funding of general City services or capital facilities as the Council shall direct through its annual budget process. Section 2. Cable T.V. Franchise Fee. The fee provided for in this ordinance shall be known as the "Franchise Fee", and is levied upon the privilege of conducting cable television business within the City of Spokane Valley. Section 3. Definitions. (A) "Cable television" in accordance with limits set forth by federal law, includes all persons engaged in or carrying on a business and employing or providing a community antenna system of coaxial cables or other electrical conductors and equipment used or to be used primarily to distribute and receive television broadcast signals or radio signals directly or indirectly off-the-air and transmit them to subscribers for a fee all as further defined under the Cable Communications Policy Act of 1984, as amended. (B) "City Manager" means the City Manager of the City of Spokane Valley, P:lentail atnchmems\Ordinancc No 20,cable franchise fee.dac ;Th Washington, or designee. (C) "Gross revenue" means all revenue or receipts collected from any source in the performance of business excluding receipts or proceeds from the use or sale of tangible property and real property or any interest therein, proceeds from the sale of notes, bonds, mortgages or other evidence of indebtedness, or stock and the like, receipts from operations incidental to the performance of the particular business involved, and with a deduction on the amount of credit loss and uncollectibles actually sustained. (D) "Person" means any person, firm, corporation, association, or entity of any type engaged in a business subject to payment of fees under this ordinance. (E) "Taxpayer" means any person liable for the tax imposed under this Ordinance. Section 4. Franchise Fee - Amount. There is levied upon, and shall be collected from a person engaged in or carrying on the business of selling or the furnishing of cable television services, a franchise fee equal to five percent (5%) of the gross revenue derived from such business in the City during the period for which the fee is due. Section 5. Accountine Year. The 12-month period (or portion thereof) for purposes of this franchise fee shall commence April 1, 2003 and shall end December 31, 2003, and thereafter shall commence January 1st and shall end on December 31' with fees due during such periods or portions thereof. Section 6. Exceptions and Deductions. There is excepted and deducted from the total gross revenue upon which the fee is computed, so much of the total gross revenue as is derived from business which the City is prohibited from collecting a fee under the Constitution or laws of the United States and the Constitution or laws of the State of Washington. Section 7. Monthly Installments. The fee imposed by Section 4 herein shall be paid in monthly installments. Franchise fee payments shall be due and payable fifteen (15) days following the end of the monthly period in which the fee is accrued. For example, the April remittance shall be paid by May 15. On or before said due date, the franchise holder shall file with the City Manager a written return upon such form and setting forth such information as the City Manager shall reasonably require relating to the accurate computation and collection of this fee, together with the payment of the amount. Section 8. Records. Each person shall keep records reflecting the amount of the gross revenue on sales and services within the City, and such records shall be open at all reasonable times for the inspection of the City Manager or his designee to verify information provided on any record, or to determine whether such return is required to be filed. Section 9. Failure to Make Returns or to Pay the Fee in Full. if a person fails, neglects or refuses to make his return as and when required in this ordinance, the City Manager is authorized to determine the amount of the fee payable under provisions of Section 4 herein, and to notify such person of the amount so determined. The amount so fixed shall thereupon be P:\ernail attachments\Ordinance No 20,cable franchise fcc.doc the fee and be immediately due and payable, together with penalty and interest. Delinquent fees, including any penalties, are subject to an interest charge of 12 percent per year on the unpaid balance from the date any such fees become due as provided in Section 7 herein. Section 10. Penalty for Delinquent Payment. If a person subject to this fee fails to pay any fee required by this ordinance within fifteen days after the due date thereof, there shall be added to such fee a penalty of ten percent of the amount of such fee, and any fee due under this ordinance that is unpaid plus all penalties thereon shall constitute a debt to the City and may be collected by court proceedings, which remedy shall be in addition to all other remedies. Section 11. Overpayment of Fee. Money paid to the City through error, or otherwise not in payment of the fee imposed by this ordinance, or in excess of such fee, shall, upon discovery, be credited against any fee due or to become due from such person hereunder, provided however, that overpayments extending beyond one year prior to notification of the City shall not be refunded. If such person has ceased doing business in the City, any such overpayment shall be refunded to the person. Section 12. Noncompliance - Penalty. (A) No person subject to this ordinance shall fail or refuse to file returns or to pay the fee when due, nor shall any person make a false statement or representation in, or in connection with, any such return, or otherwise violate or refuse to comply with this ordinance or with any rule promulgated pursuant to Section 13 herein. A violation of this subsection shall be deemed a misdemeanor. (13) In addition to the interest and delinquent filing penalties set forth above, a willful violation of or failure to comply with this ordinance is a Class Il Civil Infraction (RCW Chapter 7.80), subject to a fine of up to $250 for each day that a violation continues. Section 13. City Administrator to Make Rules. The City Manager shall have the power to adopt and enforce rules and regulations not inconsistent with this ordinance or with the law for the purposes of carrying out the provisions thereof. Section 14. Appeal to City Council. A person aggrieved by the amount of the fee, penalties, interest or civil infraction fine determined by the City Manager or his or her designee, under the provisions of this ordinance, may appeal such determination to the City Council, or to the Hearing Examiner if the City Council so establishes. Section 15. Franchise Agreement. All persons subject to this ordinance shall execute a Franchise Agreement with the City upon a form approved by the City Council. No cable television service shall be furnished until such agreement has been executed by the person providing service and approval by the City Council. Section 16. Severability. If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other P:lemail anachmrnte\Ordinance No 20,cable franchise fcc.doc t section, sentence, clause or phrase of this ordinance. Section 17. Effective Date. This Ordinance shall be in full force and effect five (5) days aver publication of the Ordinance Summary, and on the date of incorporation- PASSED by the City Council this 9 day of January, 2003, Mayor, Michael Deleming ATTEST: 7n interim City Clerk, Ruth Muller Approved As To 'Form 7.4e7 4Z-- Into m ity A to ley, Stank , M. Schwartz Date of Publication: /1a. f Zoo, Effective Date- — I ;'.crosil athaclrmentsKirdinancc No 20,cable franchise fec-doc