2010-302s:Uegahour documentslordinancesUfteg subscriber fee ord.docx
ORDINANCE NO. 2010-302
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ESTABLISHING THE NEW
PUBLIC, EDUCATION AND GOVERNMENT (PEG) SUBSCRIBER FEE RATE AS ONE
PERCENT OF THE CABLE PROVIDERS' GROSS REVENUE; AUTHORIZING AND
DIRECTING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A LETTER TO
ALL DENTON CABLE PROVIDERS; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, pursuant to section 66.006 of the Texas Utility Code in regards to Public,
Education, and Government (PEG) subscriber fees, "On the expiration of the incumbent cable
service provider's agreement, the holder of a state-issued certificate of franchise authority shall
pay a municipality in which it is offering cable service or video service one percent (1%) of the
providers' gross revenues, or at the municipality's election, the per subscriber fee that was paid to
the municipality under the expired incumbent cable service provider's agreement;" and
WHEREAS, during this transition from local franchise to state franchise, the City has a
one-time opportunity to change the PEG subscriber fee collected by all cable providers; and
WHEREAS, pursuant to City of Denton Ordinance 2004-181 and pursuant to section
66.009 of the Texas Utility Code, all cable providers within the Denton city limits are required to
collect a PEG fee from every cable subscriber; and
WHEREAS, the City's PEG fee is $0.50 per subscriber, per month and remitted to the
City on a quarterly basis; and
WHEREAS, the City Council finds that it is in the interest of the City of Denton to
establish the PEG subscriber fee as one percent of the cable providers gross revenue per month;
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance are
incorporated herein by reference.
SECTION 2. The City Council approves setting the PEG subscriber fee as one percent of
the cable providers' gross revenue per month effective January 1, 2011.
SECTION 3. The City Council approves that the PEG subscriber fee be remitted
quarterly no later than 45 days after the expiration of the date for which payment is due.
sAlegal\our documents\ordinances\10\peg subscriber fee ord.docx
SECTION 4. The City Manager, or his designee, is authorized to execute a letter to all
Denton cable providers regarding the new PEG subscriber fee rate as set forth in Attachment A,
which is attached and made a part of hereto.
SECTION 5. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the 4d
day of 2010.
L
MARK A. BURROUGHS, YOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPWOVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
T
BY
Page 2
Exhibit A
1OtF
D ENT O N 215 E. McKINNEY DENTON, TEXAS 76201 • (940) 349-8200 • FAX (940) 349-8236
CITY MAMA ER RRI E
November 16, 2010
Charter
Verizon
Grande
Re: Public, Education, and Government (PEG) Subscriber Fee
Dear (Name):
Pursuant to Section 66.006(b) of the Texas Utility Code, "On the expiration of the incumbent cable
service provider's agreement, the holder of a state-issued certificate of franchise authority shall pay a
municipality in which it is offering cable service or video service one percent of the provider's gross
revenues, or at the municipality's election, the per subscriber fee that was paid to the municipality under
the expired incumbent cable service provider's agreement, in lieu of in-kind compensation and grants."
With the adoption of Ordinance No. 2010 - XXX and effective January 1, 2011, the City has elected to
change the Public, Education, and Government (PEG) subscriber fee, which is currently collected from
cable providers in the city, from $0.50 cents per subscriber, per month, to 1 percent of the gross revenue
of your cable services. The ordinance requires PEG fee payments continue to be made quarterly to the
City, so as to remain consistent with the other cable system PEG fee payments in Denton. The ordinance
also requires that the payment shall be made to the City no later than 45 days after the expiration of the
date for which payment is due. A complete and accurate verified statement of the total cable subscriber
count during the period for which the quarterly payment is made must accompany your payment.
If you have any questions or need additional information, please contact our Cable Television Supervisor,
Billy Matthews at (94) 349-7272.
Sincerely,
George C. Campbell
City Manager
Attachment: Ordinance No. 2010-
"Dedicated to Quality Service"
www.cityofdenton.com