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City of Ashland, Oregon / City Recorder / City Council Information / Packet Archives / Year 2004 / 05/18 / Telecom. ORD

Telecom. ORD

[Council Communication]  [Attachments]

Council Communication
Title: Second Reading of an Ordinance Amending the Definition of Gross
Revenues to Exclude Revenuefrom Cable Modems under the
Telecommunications Chapter of the Ashland Municipal Code.
Dept: Legal Department
Date: May 18, 2004
Submitted By: Paul Nolte
Approved By: Gino Grimaldi, City Administrator

Synopsis: Telecommunication providers within the public rights of way are now required to pay a 5% franchise fee on all telecommunication gross revenues generated within the city. This ordinance amends section 16.04.040.L of the Ashland Municipal Code to remove cable modem fees from the calculation of gross revenue.
Recommendation: Adopt the amendment.
Fiscal Impact: The fiscal impact was described at the first reading of this ordinance as approximately $50,000 per year that the city would no longer be receiving from AFN. The other cable company has never paid the fee.
Background: The provision of cable modem services is a telecommunication service under the city's telecommunication code (Title 16 of the Ashland Municipal Code). AFN was granted a telecommunications franchise in 1999 and has paid all fees due under the franchise. The other cable company has never paid based on an FCC ruling which is now in litigation. This amendment will level the playing field until the litigation over these issues is resolved at the federal level.
Attachments:
• An Ordinance Amending the Definition of Gross Revenues to Exclude Revenue from Cable Modems under the Telecommunications Chapter of the Ashland Municipal Code

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