HomeMy WebLinkAboutCity Council Resolutions (R-12-3451)-01/05/2012RESOLUTION R-12-3451
A RESOLUTION OF THE CITY OF COLLEYVILLE, TEXAS, CONCERNING THE
PUBLIC, EDUCATIONAL, GOVERNMENTAL ("PEG") FEE PAYABLE TO THE CITY
UNDER CHAPTER 66, SECTION 66.006, TEXAS UTILITIES CODE
WHEREAS, Time Warner Cable, the local incumbent cable service provider in Colleyville,
Texas ("City") has provided notice to the City that it is terminating the local
cable franchise and will be applying for a State-Issued Certificate of
Franchise Authority (°SICFA") pursuant to Chapter 66, Texas Utilities Code,
as amended by SB 1087, 82"d Texas Regular Legislative Session, effective '
on or about January 1, 2012; and
WHEREAS, Chapter 66, Section 66.006 (b) provides that on the termination of the
incumbent cable service provider's agreement, holders of a SICFA shall pay
a municipality a one percent PEG fee in addition to the 5% franchise fee
required by Chapter 66, Sec. 66.005; and
WHEREAS, federal law provides that if the City spends the PEG fee on items other than
PEG capital cost items, the amount may be credited against the
5% franchise fee; and
WHEREAS, if a City receives the 5% franchise fee plus the 1% PEG fee under Chapter
66, and intends on spending the 1% PEG fee on non-capital PEG items, the
total 6% fee to be paid the City could be reduced by a like 1% amount,
leaving a net 5% percent franchise fee paid to the City; and
WHEREAS, the City has reviewed and considered the interplay between state and
federal law, the restriction on PEG Fee expenditures and fully understands
the consequences of its actions and of this Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Sec. 1. THAT at this time the City does not want to be restricted in its use of the
PEG Fee, and the City may spend a portion or the entire PEG Fee on items
other than PEG capital cost items.
Sec. 2. THAT the holders of SICFA in the City may take a credit for and deduct 1%
from the 6% in total fees due the City under Chapter 66 (5% franchise fee
and 1% PEG Fee), for a total 5% net payment to the City.
Resolution R-12-3451
Page 2 of 2
Sec. 3. THAT the City may repeal this Resolution at anytime, with an effective date
of the repeal being no less than 120 days after the repeal, with notice of the
repeal being provided to each of the SICFA's in the City within 30 days of
the repeal.
Sec. 4. THAT the city manager shall provide each SICFA in the City with a copy of
this Resolution.
Sec. 5. THAT this Resolution shall take effect immediately upon its adoption.
AND IT IS SO RESOLVED.
APPROVED BY A VOTE OF AYES, ~ NAYS AND ~
ABSTENTIONS ON THIS THE DAY OF 2012.
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ATTE : CITY OF COLLEYVILLE
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Cynthia Singleton, TRMC, CMC David Kelly
City Secretary Mayor