HomeMy WebLinkAboutR-1910 - Requesting retroactive franchise fees from TCI of Washington·..-~.'
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CITY OF MARYSVILLE
Marysville, Washington
RESOLUTION NO.1 <]1 ()
A RESOLUTION OF THE CITY OF MARYSVILLE
REQUESTING RETROACTIVE FRANCHISE FEES
FROM TCI OF WASHINGTON.
WHEREAS, in 1995, TCI changed its franchise fee calculation
methodology as the result of the ruling by the FCC; and
WHEREAS,the FCC decided that cable franchise fees should not be
considered as gross revenues in TCl's 5% franchise fee calculations; and
WHEREAS, at that time, TCI stopped passing through the franchise fee
on franchise fee to its subscribers; and
WHEREAS, the ruling was subsequently appealed, and in 1997, the Fifth
Circuit Court of Appeals overturned the FCC ruling and determined that the
amounts collected from TCI subscribers as franchise fees can be included in
gross revenues and are subject to franchise fee liability; and
WHEREAS, in order to recoup the fees owed to the City of Marysville
since 1995, TCI may retroactively pass these fees back to their customers; and
WHEREAS,at this time TCI has agreed to pay the City a lump sum of
$9,990.00 in back franchise fees, and has proposed passing the fees through to
customers over a period of time; and
WHEREAS,the Television Advisory Committee met on Thursday,
November 19,1998 and has recommended that the City request the back
franchise fees from TCI and that this money be set aside for use by the City's
television channel; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
MARYSVILLE,WASHINGTON AS FOLLOWS:
1. The City request payment of back franchise fees in the amount of
$9,990.00 from TCI of Washington in accordance with court decisions.
2. The City does not authorize TCI of Washington to collect back
franchise fees from customers over a one-year period.
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Resolution No./q 10
Page 2
3. The City believes authorizing collection of back franchise fees
would not be appropriate and in fact would be unfair to subscribers who may not
have subscribed to cable service during the period covered for retroactive fees.
4. Retroactive franchise fees shall be dedicated to the operation of
the City's cable access channel.
PASSED by the City Council and APPROVED by the Mayor this 7th day
of December,1998.
CITY OF MARYSVILLE
MAYOR
ATTEST:
APPROVED AS TO FORM:
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CITY ATTORNEY