HomeMy WebLinkAboutStaff Report 8836
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
January 22, 2018
The Honorable City Council
Palo Alto, California
SECOND READING: Adoption of an Ordinance Amending Chapter 2.11
of Title 2 of the Palo Alto Municipal Code to Reauthorize Public,
Education, and Government (PEG) Access Fees That Will Apply to
Comcast as it Provides Service Under its State Video Franchise (FIRST
READING: December 11, 2017 PASSED: 8-0 Fine absent)
This Ordinance was first heard by the City Council on December 11, 2017 and was passed 8-0
with Council Member Fine absent. It is now before you for the second reading.
ATTACHMENTS:
Attachment A: PEG Fees Ordinance (PDF)
Department Head: Beth Minor, City Clerk
Page 2
Attachment A
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NOT YET APPROVED
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 2.11
of Title 2 of the Palo Alto Municipal Code to Amend Section 2.11.070 (Public,
Education and Government Access Channel Capacity and Support) to Reauthorize
Comcast’s PEG Support Fee on Renewal of Its State Franchise
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
Palo Alto requires holders of State Video Franchises to pay a fee of $0.88 per residential
subscriber per month to support Public, Education, and Government (PEG) Access.
The City is required to reauthorize this fee by ordinance at expiration and renewal of each state
video franchise.
Comcast has notified the City that its state-issued franchise expires on January 2, 2018 and will
be renewed thereafter. Accordingly, the City reauthorizes the support fee for PEG access
according to the existing terms.
SECTION 2. Section 2.11.070 (Public, education and government access channel
capacity and support) of Chapter 2.11 (Video Service Providers- Applicable Requirements) of
the Palo Alto Municipal Code is hereby amended to read as follows:
2.11.070 Public, education and government access channel capacity and support.
(a) PEG Channel Capacity.
(1) A state franchisee shall designate and activate seven PEG channels on its
network. The state franchisee shall designate and activate the seven PEG channels within three
months from the date that the state franchisee receives a state franchise to provide video
service in an area including the city, provided, however, that this three-month period shall be
tolled for such a period, and only for such a period, during which the state franchisee's ability to
designate or provide such PEG capacity is technically infeasible, as provided in Section 5870(a)
of the California Public Utilities Code.
(2) A state franchisee shall provide an additional PEG channel when the
standards set forth in Section 5870(d) of the California Public Utilities Code are satisfied by the
city or any entity designated by the city to be responsible for PEG access channel capacity and
support.
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Attachment A
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(b) PEG Support.
(1) Amount of PEG Support Fee.
(A) Except as provided in subparagraphs (B) and (C), every state
franchisee operating within the jurisdictional boundaries of the city shall pay a PEG support fee
to the city in the amount of eighty-eight cents ($0.88) per month per subscriber within the
jurisdictional boundaries of the city.
(B) Upon the expiration of the Comcast Franchise or its earlier
termination pursuant to Section 5840(o)(3) of the California Public Utility Code, every state
franchisee operating within the jurisdictional boundaries of the city shall pay a new PEG
support fee to the city in the amount of eighty-eight cents ($.88) per month per subscriber in
the city.
(C) The PEG support fee established by the city pursuant to paragraph
(b)(1)(B) shall expire with respect to a particular state franchisee upon the expiration of that
state franchisee's state franchise, and the city shall, by ordinance, reauthorize the PEG support
fee for that state franchisee upon such expiration.
(2) The PEG support fee shall be used by the city for PEG purposes consistent
with state and federal law.
(3) A state franchisee shall remit the PEG support fee to the city quarterly,
within forty-five days after the end of each calendar quarter. Each payment shall be
accompanied by a summary explaining the basis for the calculation of the PEG support fee.
(4) If a state franchisee fails to pay the PEG support fee when due, or underpays
the proper amount due, the state franchisee shall pay a late payment charge at an annual
interest rate equal to the highest prime lending rate during the period of delinquency, plus one
percent or the highest rate allowed by California law, whichever is lower.
(c) PEG Carriage and Interconnection.
(1) State franchisees shall ensure that all PEG channels are receivable by all
subscribers, whether they receive digital or analog service, or a combination thereof, without
the need for any equipment other than that needed to receive the lowest cost tier of service.
PEG access capacity provided by a state franchisee shall be of similar quality and functionality
to that offered by commercial channels on the state franchisee's lowest cost tier of service
unless the PEG signal is provided to the state franchisee at a lower quality or with less
functionality.
(2) If a state franchisee and an incumbent cable operator cannot reach a
mutually acceptable interconnection agreement for PEG carriage, the city shall require the
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Attachment A
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incumbent cable operator to allow the state franchisee to interconnect its network with the
incumbent cable operator's network at a technically feasible point on the state franchisee's
network as identified by the state franchisee. If no technically feasible point of interconnection
is available, the state franchisee shall make interconnection available to the PEG channel
originator and shall provide the facilities necessary for the interconnection. The cost of any
interconnection shall be borne by the state franchisee requesting the interconnection unless
otherwise agreed to by the parties.
(d) Institutional Network and Other In-Kind PEG Facilities and Cable Service Support
Obligations. The incumbent cable operator's obligation to provide and support PEG channel
facilities and institutional networks and to provide free cable service to schools and other public
buildings as provided in the Comcast Franchise shall continue until July 25, 2010.
(e) PEG support fee reauthorizations.
(1) On expiration and renewal of AT&T’s state franchise on March 30, 2017, the
city hereby reauthorizes the PEG support fee.
(2) On expiration and renewal of Comcast’s state franchise on January 2, 2018,
the city hereby reauthorizes the PEG support fee.
SECTION 3. Severability. If any provision, clause, sentence or paragraph of this
ordinance, or the application to any person or circumstances, shall be held invalid, such
invalidity shall not affect the other provisions of this Ordinance which can be given effect
without the invalid provision or application and, to this end, the provisions of this Ordinance
are hereby declared to be severable.
SECTION 4. Effective Date. This ordinance shall be effective on the thirty-first date after
the date of its adoption.
SECTION 5. CEQA. The City Council finds and determines that this Ordinance is not a
project within the meaning of section 15378 of the California Environmental Quality Act
(“CEQA”) because it has no potential for resulting in physical change in the environment, either
directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is
subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it
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Attachment A
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can be seen with certainty to have no possibility of a significant effect on the environment in
that this Ordinance simply clarifies existing local regulations.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
______________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: ____________________________
City Manager
______________________________
City Attorney ____________________________
Director of Information Technology
____________________________
Director of Administrative Services
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