A.    OVS Operators. In lieu of the franchise fee required by this section, an OVS franchisee shall pay a fee of five percent of the gross revenues of the franchisee, its affiliates or any OVS operator of the OVS.

    B.    Persons Leasing OVS Capacity.

    1.    A person leasing capacity from an OVS operator, other than a person whose revenues are included in the payment made under subsection A of this section shall pay the city a fee in lieu of the franchise fee required by this section of five percent of the gross revenues of such person.

    2.    Notwithstanding the foregoing, where franchisee charges a person, other than an affiliate, to use its OVS (the "use payments"); and that person recovers those use payments through charges to its subscribers that are included in that person’ s gross revenues; and that person fully recovers the use payments through the charges to its subscribers and pays a fee on those charges pursuant to subsection A of this section; then franchisee may deduct from its gross revenues the use payments it receives from that person. (Ord. 645 § 1 (part), 2004)