2011/04/20 Council Agenda Packet

conditions, strikes,labor disturbances,lockouts, war or act of war(whether an actual declaration of war is made or not),insurrection,riots,act of public enemy,actions or inactions of any government instrumentality or public utility including condemnation, accidents for which the Franchisee is not primarily responsible, fire,flood, or other acts of God, or work delays caused by waiting for utility providers to service or monitor utility poles to which Franchisee's FTTP Network is attached, and unavailability of materials and/or qualified labor to perform the work necessary. 1.13 Franchise Area: The incorporated area(entire existing territorial limits)of the City and such additional areas as may be included in the corporate(territorial)limits of the City during the term of this Franchise. 1.14 Franchisee: Verizon Northwest Inc.,and its lawful and permitted successors, assigns and transferees. 1.15 Government Access Channel: An Access Channel available for the use of the City. 1.16 Gross Revenue: All revenue, including any and all cash,credits,property,or consideration of any kind,as determined in accordance with generally accepted accounting principles,which is earned or derived by Franchisee and/or its Affiliates,received from Franchisee's provision of Cable Service over the Cable System in the Franchise Area. Gross Revenue shall be reported to the City using the"accrual method"of accounting. Gross Revenue shall include the following items so long as all other cable providers in the Service Area include the same in Gross Revenues for purposes of calculating franchise fees: (a) fees charged for Basic Service; (b) fees charged to Subscribers for any service tier other than Basic Service; (c) fees charged for premium Channel(s),e.g. HBO,Cinemax, or Showtime; (d) fees charged to Subscribers for any optional,per-channel,or per-program services; (e) charges for installation,additional outlets,relocation,disconnection, reconnection,and change-in-service fees for video or audio programming; (f) fees for downgrading any level of Cable Service programming; (g) fees for service calls; (h) fees for leasing of Channels; (i) rental of customer equipment,including converters(e.g. set top boxes, high definition converters, and digital video recorders) and remote control devices; (j) advertising revenue as set forth herein; (k) revenue from the sale or lease of access Channels)or Channel capacity; (1) revenue from the sale or rental of Subscriber lists; (m) revenues or commissions received from the carriage of home shopping channels; (n) fees for any and all music services that are deemed to be a Cable Service over a Cable System; (o) revenue from the sale of program guides; EVERETT 4 Seattle-3388207.8 0010932-00119