At the Aug. 1, 2011, work session, the Community 7 Television Board submitted a letter asking the City Council to adopt a 25-cent public education and government (PEG) fee per subscriber per month to Bresnan to support the public television station.  The PEG fee was authorized as part of an October 2010 agreement in which the Council approved the transfer of a non-exclusive franchise in Billings from Bresnan Broadband Holdings LLC to BBHI Holdings LLC after the two companies merged.

The transfer agreement requires the City to adopt a fee by a separate resolution on or after March 1, 2011.  The charge may be passed through to subscribers as  PEG fee at the cable company's option.  If it is approved no later than Sept. 1, 2011, Bresnan is required to provide transport to support transmissions in multiple formats, including high definition, to and from both the City' and the Yellowstone County Courthouse PEG playback/control center.

A resolution approving the fee is attached.  It requires a simple majority majority vote of the Council for approval.

The Council may:

• Approve the resolution;
• Postpone the resolution; or
• Deny the resolution.

The fee would have no direct impact on the City, but would produce about $80,000 a year in extra revenue for Community 7.  Community 7 Executive Director Lynne Turner-Fitzgerald presented information on the intended uses of the funds to the Council at the work session. 

The staff recommends approval of the resolution.