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HomeMy WebLinkAboutResolution No. 06-11 Charter Cable In-Kind Compensation RESOLUTION NO. 06-11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNIVERSITY PARK, TEXAS, ELECTING TO RECEIVE THE PER SUBSCRIBER FEES PAID TO THE CITY UNDER THE EXPIRED CABLE FRANCHISE AGREEMENT WITH MARCUS CABLE ASSOCIATES, L.L.c. DIB/ A CHARTER COMMUNICATIONS IN LIEU OF IN-KIND COMPENSATION AND GRANTS. WHEREAS, Marcus Cable Associates, L.L.C. d/b/a Charter Communications ("Charter") currently operates a cable franchise television system pursuant to a franchise granted by the City Council of the City of University Park, Texas, on March 15, 1995 by Ordinance No. 95/11 and extended by Ordinance No. 05/07 adopted on March 1, 2005 (collectively, "franchise agreement"); and and WHEREAS, said franchise agreement between the City and Charter has expired; WHEREAS, on February 17,2006, Charter was granted a certificate of franchise authority from the Public Utility Commission of Texas for the provision of cable services within the City of University Park; and WHEREAS, Section 66.005 ofthe Public Utility and Regulatory Act requires the holder of a certificate of franchise authority to pay a franchise fee of five percent of gross revenues, as defined by state law; and WHEREAS, Section 66.006(b) of the Public Utility and Regulatory Act grants municipalities the authority to elect to receive one percent of a cable service provider's gross revenues in lieu of in-kind contributions or the per subscriber fee that was paid to it under the expired incumbent cable service provider's agreement; and WHEREAS, the holder of a state-issued certificate is entitled to recover any fee imposed by the state and paid to the municipality from the cable service provider's customers; and WHEREAS, the City does not wish to enact a new fee on residents who are Charter customers; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF UNIVERSITY PARK, TEXAS: 1. In lieu of in-kind contributions and grants, the City Council elects to receive the same payment on a per-subscriber basis as required by Charter's expired franchise agreement. 2. The City Council acknowledges that Charter did not pay a per-subscriber fee to the City under the expired franchise agreement. 3. The City Council does not require Charter to collect from subscribers in the City of University Park any additional in-kind compensation or grants beyond the 5% franchise fee required by state law. 4. Charter shall not be required to remit to the City of University Park, any additional in-kind compensation or grants beyond the 5% franchise fee pursuant to Section 66.006(b) of the Public Utility and Regulatory Act. 5. Company. The City Manager shall send a certified copy of this Resolution to the 6. This Resolution takes affect immediately upon its adoption. ADOPTED THIS 20th DAY OF June, 2006. CITY OF UNIVERSITY PARK By: ATTEST: