HomeMy WebLinkAboutSupplemental Information Received after Posting of Agenda - Item J correction6.10.085 Special Provisions Applicable to Holders of State Video Franchises.
A. Fee for Support of PEG Access Facilities and Activities.
1. The city council has determined that the public interest will best be served by imposing, to the
extent authorized by applicable law, comparable financial obligations upon similarly- situated multi-
channel video programming providers that are franchised to provide video services within the city.
Consistent with the city's policy of requiring franchisees to provide financial support for public,
educational, and governmental (PEG) access channel facilities and activities, a fee is established as set
forth below in paragraph 3 of this subsection.
2. On December 31, 2006, the city's incumbent cable operator was contractually obligated to pay
an annual fee of $75,000 to support PEG channel facilities and activities. This fee is in excess of 1 % of
the cable operator's reported gross revenues, and it is approximately equivalent to 1.20% of the reported
gross revenues. The term "gross revenues' shall be defined as set forth in California Public Utilities
Code Section 5860.
3. The city hereby establishes and imposes upon any state video franchise holder operating in the
city a fee, separate from the 5% franchise fee, to support PEG access channel facilities and activities. This
separate fee is in the amount of 1.20% of a video service provider's gross revenues. The restrictions and
limitations set forth below in paragraph 4 of this subsection apply to this PEG access support fee.
4. The fee in support of PEG access channel facilities and activities specified above in paragraph 3
of this subsection, as applied to a state video franchise holder, is subject to the following provisions:
a. The fee must not exceed 3% of the holder's gross revenues, as the term "gross revenues" is
defined in the Public Utilities Code Section 5860.
b. The fee will terminate upon expiration of the state video franchise, but it may be reauthorized
by ordinance adopted by the city council.
c. If the imposition of this fee, or any component thereof, is determined to be contrary to or
inconsistent with the provisions of Public Utilities Code Section 5870 by subsequent legislative action,
judicial decision, or administrative interpretation, then an alternative fee for PEG support obligations may
be imposed by ordinance adopted by the city council.
d. The fee established by this subsection A shall be remitted quarterly to the city treasurer and
must be received not later than 45 days after the end of the preceding calendar quarter. The fee payment
shall be accompanied by a summary that describes all sources of the gross revenues upon which the fee is
based, which summary must be verified by a responsible financial officer or employee of the video
service provider.
e A late payment charge equal to the highest prime lending rate during the period of delinquency
plus one percent 0%) %) will be applied to any payment made by a state video franchise holder for PEG
Support Fees not received when due.