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THE CITY OF 5 CITY COUNCIL AGENDA REPORT pL£ASANTON. March 21, 2017 City Manager's Office TITLE: ADOPT AN URGENCY ORDINANCE AND INTRODUCE AN ORDINANCE TO REAUTHORIZE THE PUBLIC, EDUCATIONAL, AND GOVERNMENTAL (PEG) FEE IN MUNICIPAL CODE §6.54.060 ON STATE CABLE FRANCHISEES OPERATING WITHIN THE CITY OF PLEASANTON SUMMARY Pursuant to State law, cities may establish a fee to support public, educational, and governmental (PEG) channel facilities. Pleasanton has done so in Municipal Code §6.54.060. However, the California State Utility Code §5870(n) states that a PEG fee ordinance must be reauthorized upon expiration of an applicable state franchise. AT&T, Inc. operates within the City under a state video service franchise that expires on March 30, 2017. To ensure the continued receipt of this PEG fee, it is recommended that the City Council adopt an urgency ordinance, as well as introduce an ordinance, to reauthorize the PEG fee on state cable franchisees operating within the City of Pleasanton. RECOMMENDATION Adopt an Urgency Ordinance (requires 4/5ths vote) reauthorizing the Public, Educational, and Governmental (PEG) fee in Municipal Code §6.54.060 applicable to state cable franchisees operating within the City. Also introduce a regular ordinance for the same action in the event of challenge to the urgency ordinance. FINANCIAL STATEMENT Adoption of the proposed urgency ordinance and regular ordinance would result in the City's continued collection of PEG fees for the support of public, educational, and governmental access channels. These PEG fees are collected as a State Franchise fee from the State Franchise Holder (AT&T, Inc.) equal to five percent (5%) of Gross Revenues. Franchise fees are collected quarterly, within forty five (45) days after the end of each calendar quarter. For FY 15/16, the City of Pleasanton collected $255,673.89 in PEG funds as a result of the State Franchise fee.