HomeMy WebLinkAboutR-2012-01 not requiring PEG Fee by holders of a state issued certificated franchise authorityA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE ELECTING NOT TO
REQUIRE THE REMITTANCE OF A PEG FEE BY HOLDERS OF A STATE ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY.
WHEREAS, Section 66.005 of the Public Utility and Regulatory Act requires
the holder of a certificate of franchise authority to pay a franchise fee of five percent
of gross revenues; and
WHEREAS, Section 66.006(b) of the Public Utility and Regulatory Act provides
that, to fund capital expenses associated with Public, Educational and Governmental
facilities, and in lieu of in -kind contributions and grants, a municipality may elect to
receive one percent of a cable service provider's gross revenues or the per subscriber
fee that was paid to it under the expired incumbent cable service provider's agreement;
and
WHEREAS,the holder of a state -issued certificate is entitled to recover any fee
imposed by the state and paid to the municipality from the cable service provider's
customers; and
WHEREAS, the City does not wish to further burden its citizens with the
additional fee authorized by Section 66.006(b) of the Public Utility and Regulatory Act;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LA PORTE, TEXAS:
1. The holder of a state -issued certificate of franchise authority shall not remit a
percentage or per subscriber fee to the City under Section 66.006(b) of the
Public Utility and Regulatory Act.
2. The City Manager shall send a certified copy of this Resolution to the Company.
3. This Resolution takes effect immediately upon its adoption.
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