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Item 4.
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| City Council Regular | |
| Date: | 12/20/2021 |
| Title: | PH and 1st Reading - Minor Text Amendments to TDS Metrocom Cable System Franchise Ordinance, Article 7-1800, BMCC |
| Presented by: | Stacy Tenney |
| Department: | Legal |
| Presentation: | Yes |
RECOMMENDATION
City Staff recommends Council conduct a public hearing and approve first reading of minor ("housekeeping") amendments to Article 7-1800, Cable System Franchise.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
City staff and TDS Metrocom, LLC (TDS), seek joint approval of two text amendments to clarify the parties' intentions of terms in Article 7-1800, BMCC. The need for clarification and amendments was realized while using Article 7-1800, BMCC, as a template for the cable system renewal franchise with Spectrum Pacific West, LLC, doing business locally as Charter Communications, which was adopted on December 13, 2021.
The first text amendment seeks to amend the definition of "Gross Revenues" in Section 7-1801(2)(b), BMCC, to clarify that Public, Educational and Governmental (PEG) fees are not included in the definition of "Gross Revenues"; these are fees of general applicability which the City imposes on TDS to collect from its subscribers and cannot be included as gross revenues in calculating the 5% franchise fee owed to the City under the franchise pursuant to federal law. The second text amendment seeks to amend Section 7-1808(h)(2), BMCC, to clarify the parties' intent that the Grantor (the City) is only required to show the previous year's budgeted PEG expenditures and use if requested by TDS. Thus, the parties are seeking to amend the apostrophe in "years"" so it is a singular unit referring to the previous "year's" PEG capital support fee rather than the vague reference to "years''" that could be interpreted to mean any number of years. Both amendments would clarify and provide the same terms as have been adopted in the Charter cable system franchise.
STAKEHOLDERS
City of Billings and TDS Metrocom, LLC
ALTERNATIVES
City Council may:
- Approve; or,
- Not Approve
FISCAL EFFECTS
No fiscal effects.
SUMMARY
The proposed "housekeeping" amendments to the TDS franchise, specifically to the definition of "Gross revenues" Sec. 7-1801 (2)(b), and Sec. 7-1808 (h)(2), BMCC, clarify and correct the intentions of the City and TDS and will provide the same terms as the competitive cable system franchise with Spectrum Pacific West, LLC, doing business locally as Charter Communications, adopted December 13, 2021.