HomeMy WebLinkAboutOrdinance No. 0860CITY OF MEDINA, WASHINGTON
Ordinance No. 860
AN ORDINANCE OF THE CITY OF MEDINA, WASHINGTON,
RELATING TO FRANCHISE FEES; REPEALING SECTION 5.04.015;
AMENDING SECTION 5.04.030; AND ADOPTING A NEW
CHAPTER 5.06 OF THE MEDINA MUNICIPAL CODE
WHEREAS, the City of Medina is classified as a non -charter code city under title
35A RCW; and
WHEREAS, RCW 35.21.860 provides authority for franchise requirements and fees
for cable television services as allowed by federal law;
WHEREAS, the City Council currently imposes a franchise fee of 0% upon gross
revenues derived from cable and sewer services provided within the City of Medina; and
WHEREAS, the City Council desires to amend the City Code to repeal the limitations
upon collection of franchise fees as described above and to adopt requirements applicable
to the imposition and collection of franchise fees; and
WHEREAS, the adoption of an ordinance pertaining to enforcement relates solely to
governmental procedures and contains no substantive standards respecting use or
modification of the environment and is therefore exempt from the requirements of the State
Environmental Policy Act pursuant to WAC 197-11-800(19);
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON,
DO ORDAIN AS FOLLOWS:
Section 1. Repeal of Section 5.04.15. Section 5.04.015 of the Medina Municipal
Code is hereby repealed in its entirety.
Section 2. Amendment of Section 5.04.030. Section 5.04.030 of the Medina
Municipal Code is hereby amended to read as follows:
5.04.030 Tax — Imposed.
From and after April 1, 1986, there is levied upon and there shall be collected from every
person, firm or corporation engaged in carrying on the following business for hire or for sale
of a commodity or a service within or partly within the corporate limits of the city the tax for
the privilege of so doing business as hereinafter defined.
A. Upon any telephone business there shall be levied a tax equal to zero percent of the
total gross subscriber station exchange revenues from business and residence
telephone service (excluding message units) from business in the city.
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B. Upon every person, firm or corporation engaged alone or in conjunction with another in
the business of selling or leasing telephone or telegraph or related communication
equipment at retail or to or for the public and thereafter installing, maintaining or
repairing the same, a fee equal to zero percent of the total gross income from such
business in the city; provided further, that this fee or tax shall not be imposed on any
business otherwise subject to fee or tax under this chapter nor on the business of
selling or installing telephone or telegraph or related communication equipment to
telephone or telegraph companies taxed under this chapter.
C. There is levied a tax on the sale, delivery or distribution of electricity or electrical energy
and for the privilege of carrying on said business, such tax to be equal to zero percent
of the total gross revenue derived from sales of such electricity to ultimate users within
the city; provided, however, that there shall not be any tax levied for the installation
charges of electrical units.
D. There is levied a tax on the sale, delivery, distribution or furnishing of natural gas for
domestic, business or industrial consumption and for the privilege of carrying on said
business, such tax to be equal to zero percent of the total gross income from such
business in the city; provided, however, that there shall not be any tax levied for
installation charges of gas energy units.
E. ((TheFe is levied a fFaRGhmse fee on the busine66 of the eperatiOR and sale of water and
P. There 06 levied a franGhi68 fee OR the business E)f the eperation and sale of seNiGes fW
Within -the-sits:
Q} There is levied a tax on the business of solid waste collection, transportation, or
disposal and for the privilege of carrying on said business, such tax to be equal to zero
percent of the total gross revenue derived from solid waste collection, transportation, or
disposal within the city.
((#:)) F. There is levied a tax on the business of transmitting television by cable and for the
privilege of carrying on said business, such tax to be equal to zero percent of the total
gross revenue derived from the sale of cable television services; provided, however,
that there shall be no tax levied on installation charges for cable television services, or
hookup charges for cable television services.
Section 3. Adoption of new Chapter 5.06. A new Chapter 5.06 of the Medina
Municipal Code is hereby adopted to read as follows:
Chapter 5.06
Franchise Fees
Sections:
5.06.010
Reservation of rights.
5.06.020
Franchise fees - amount.
5.06.030
Fees and compensation not a tax.
5.06.040
Franchise fee - payment.
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5.06.050 Unauthorized use.
5.06.060 Violation — penalty.
5.06.010 Reservation of rights.
The City of Medina hereby reserves any and all of its right and authority to impose
franchise fees in consideration for the City's authorization given to a franchisee to use or
occupy the public rights -of -way.
5.06.020 Franchise fees - amount.
A. All persons given a grant pursuant to a franchise, license, permit or other authorization
to use and occupy the public rights -of -way to provide services, whether or not such
services are provided to the general public, shall, in consideration for such grant and to
the extent the City may lawfully require such persons to do so, pay franchise fees to the
City in accordance with the terms and conditions of the applicable franchise agreement,
license, permit or other authorization.
B. Except as may be otherwise provided in the franchise, license, permit or other
authorization, the obligation of such person to pay such franchise fees to the City shall
survive the expiration, termination or revocation of the franchise, license, permit or other
authorization and shall be in full force and effect until such time as a new franchise,
license, permit or other authorization granting use and occupancy of the public rights -of -
way becomes effective or such person removes its facilities, if any, from the public
rights -of -way.
C. Franchise fees imposed pursuant to this section that are imposed upon gross revenues
derived from services provided within the City, shall not exceed a percentage of three
(3) percent of such gross revenues. Franchise fees imposed upon gross revenues
derived from services provided within the City pursuant a franchise, license, permit or
other authorization granted prior to the effective date of this section shall not be
assessed or collected to the extent such franchise fees exceed three (3) percent of such
gross revenues. The three (3) percent franchise fees limitation prescribed by this
subsection shall be changed to zero on January 31, 2012.
5.06.030 Fees and compensation not a tax.
Franchise fees, and any other compensation charged and paid for use or occupancy of the
public rights -of -way provided for in a franchise, license, permit or other authorization,
whether financial or in -kind, are separate from, and additional to, any and all federal, state,
local, and city taxes as may be levied, imposed or due from a franchisee, permittee or
licensee, its customers or subscribers or on account of the lease, sale, delivery or
transmission of services.
5.06.040 Franchise fee — payment.
A. Except as may be otherwise provided in an applicable franchise, license, permit or other
authorization, the fee imposed by this chapter shall be due and payable in quarterly
installments and remittance shall be made on or before the thirtieth day of the month
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next succeeding the end of the quarterly period in which the tax accrued. Such quarterly
periods are as follows:
1. First quarter, January, February, March;
2. Second quarter, April, May, June;
3. Third quarter, July, August, September;
4. Fourth quarter, October, November, December.
B. On or before said due date the person required to pay such franchise fees shall file with
the city clerk a written return, upon such form and setting forth such information as the
clerk shall reasonably require, together with the payment of the amount of the franchise
fee.
C. Recordkeeping.
Except as may be otherwise provided in an applicable franchise, license, permit or other
authorization or when franchise fees are not based upon revenues (e.g., linear feet of
occupancy), each franchisee, licensee and permittee shall keep records reflecting the
amount of revenues subject to the franchise fee, and such records shall be open at all
reasonable times to the inspection of the city clerk, or his duly authorized subordinates,
for verification of said franchise fee payment or for the fixing of the franchise fee of a
person who shall fail to make such returns.
D. Promulgation of rules and regulations.
The clerk for the city is authorized to adopt, publish and enforce, from time to time, such
rules and regulations for the proper administration of this chapter as shall be necessary,
and it is a violation of this chapter to violate or to fail to comply with any such rule or
regulation lawfully promulgated under this chapter; provided that, in the event of a
conflict between a term, condition, or provision of an applicable franchise, license,
permit or other authorization, and a rule or regulation authorized hereunder, the term
condition or provision of the franchise, license, permit or other authorization shall control
to the extent of the conflict.
5.06.050 Unauthorized use.
Any person occupying or using the public rights -of -way who is required under the Medina
Municipal Code to obtain a franchise, license, permit or other authorization from the City
prior to such use or occupancy as a condition of such use and occupancy to provide
services, shall be subject to payment of franchise fees for the period of such unauthorized
use and occupancy, to the extent that the City would have authority to impose franchise
fees if such person had obtained a franchise prior to such use or occupancy. Such
franchise fees shall be assessed and calculated in the same manner and rate or amount as
provided for under similar franchises, licenses, permits or other authorizations in the City,
and if no such similar franchises, license, permits or other authorizations exist in the City, in
the same manner at the highest rate or amount as may be provided for under similar
franchises, licenses, permits or other authorizations in comparable jurisdictions in
Washington state.
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5.06.060 Violation — penalty.
Except as may be otherwise provided in an applicable franchise, if any person subject to
this chapter shall fail to pay any franchise fee required by this chapter within thirty (30) days
after the due date thereof, there shall be added to such franchise fee a penalty of fifteen
(15) percent of the amount of such franchise fee, and any franchise fee due under this
chapter and unpaid, and 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 and
penalties provided for in the Medina Municipal Code, the applicable franchise, permit,
license or other authorization, or as provided at law or in equity.
Section 4. Severability. If any section, sentence, clause, or phrase of this
ordinance should be held to be invalid or unconstitutional by a court of competent
jurisdiction, such invalidity or unconstitutionality shall not affect the validity of any other
section, sentence, clause, or phrase of this ordinance.
Section 5. Effective Date. This ordinance shall take effect five (5) days after its
publication or the publication of a summary of its intent and contents.
PASSED BY THE CITY COUNCIL ON THIS 8 DAY OF NOVEMBER, 2010 AND
SIGNED IN AUTHENTICATION OF ITS PASSAGE ON THE 8 DAY OF NOVEMBER,
2010.
Approved as form:
Bruce Disen ,-City Attorney
Ordinance passed: 11/08/2010
Ordinance published: 11/11/2010
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Bret Jor an, Mayor
Attest:
F
Rac eI Baker, City Clerk