R-2012-01 not requiring PEG Fee by holders of a state issued certificated franchise authority

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A 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. nAOOCn AKIn AI']r]Ml1VCn 4-H7n %!/lam /-G 7()47 (SEAL)