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City of San Leandro <br />Meeting Date: March 20, 2017 <br />Staff Report <br />Agenda Section:File Number:17-132 ACTION ITEMS <br />Agenda Number:10.C. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY: <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for an Urgency Ordinance to Reauthorize the City’s Public, <br />Educational and Government Fee as Provided in Section 5-7-115 of the San <br />Leandro Municipal Code <br />RECOMMENDATIONS <br />Staff recommends that the City Council waive reading, introduce, and adopt the attached <br />urgency ordinance reauthorizing the City’s public, educational, and government (“PEG”) fee <br />as provided in Section 5-7-115 of the San Leandro Municipal Code. <br />SUMMARY AND BACKGROUND <br />In accordance with state law, the City imposes a one percent (1%) PEG channel facilities fee <br />on all state-franchised video service providers operating within the City to support PEG <br />programming. State law provides that a city’s PEG fee ordinance must be reauthorized upon <br />expiration of a state franchise. AT&T’s state franchise expires on March 30, 2017. <br />Under Section 5-7-115 of the San Leandro Municipal Code, the City’s PEG fee is <br />automatically reauthorized unless a franchise holder gives 60-days’ prior written notice to the <br />City that its state franchise will expire. AT&T did not provide the required 60-days’ notice to <br />the City. Therefore, under the City’s Municipal Code, the City’s PEG fee ordinance will be <br />automatically reauthorized when AT&T receives its new or renewed state franchise. <br />Although staff believes that the City’s PEG fee will be automatically reauthorized under the <br />terms of the City’s Municipal Code, to account for inherent uncertainty related to the state <br />franchise renewal process, and to ensure continuity in PEG funding if or when AT&T’s <br />franchise is renewed, staff recommends that the City Council adopt an urgency ordinance <br />specifically declaring that the City’s PEG fee is reauthorized. The urgency ordinance will take <br />effect and be enforced immediately upon the commencement of AT&T’s new or renewed <br />state franchise under the Digital Infrastructure and Video Competition Act of 2006. <br />Page 1 City of San Leandro Printed on 3/13/2017 <br />184