(A) Parity among video service providers. 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 multichannel 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 division (B).
(B) PEG fee in effect on December 31, 2006. On December 31, 2006, the City imposed two separate fees to support PEG channel facilities and activities. When combined, these fees were in excess of 1%. In accordance with Cal. Public Utilities Code § 5870(n), the city may, by ordinance, establish a fee no greater than those separate fees.
(C) PEG access support fee. 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% of a video service provider's gross revenues, plus the sum of $0.13 per subscriber, per month. The payments of $0.13 per subscriber, per month, will terminate when the cumulative sum of $88,381.40 has been paid to the city over the term of the franchise, or any extension or renewal of the franchise. The restrictions and limitations set forth below in division (D) apply to this PEG access support fee.
(D) Restrictions and limitations. The fee in support of PEG access channel facilities and activities specified above in division (C), as applied to a state video franchise holder, is subject to the following provisions:
(1) The fee must not exceed 3% of the holder's gross revenues, as the term "gross revenues" is defined in Cal. Public Utilities Code § 5860.
(2) The fee will terminate upon expiration of the state video franchise, but it may be reauthorized by ordinance adopted by the City Council.
(3) If the imposition of this fee, or any component thereof, is determined to be contrary to or inconsistent with the provisions of Cal. Public Utilities Code § 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.
(Ord. 2007-07 § 2, 2007)