Title
Ordinance to Amend City Code Related to Cable Television License Fees (Ordinance G-6652)
Description
This report requests City Council approval to amend Chapter 5, Article III, section 5.20, License Fees, of the Phoenix City Code to standardize the fee for all cable television and video service providers in accordance with Arizona State Law.
Report
Summary
In 2018 the State of Arizona passed legislation related to cable television providers, allowing them to enter into Uniform Video Service License Agreements with municipalities beginning Jan. 1, 2020. Current cable television franchise license holders can decide to continue to operate under their current franchise licenses, governed by Chapter 5 of the Phoenix City Code as well as federal law, or enter into a Uniform Video Service License Agreement, with provisions set by the State of Arizona. However, the new state law requires that in order for a municipality to collect fees from any video service provider, the municipality must have a law that states that all providers will be charged the same fee. This request is to amend the City Code to comply with this State requirement, in order to continue to collect revenue from cable television and video service providers. The five percent fee is not an increase; it is the same as what is paid by all current cable television providers. The City currently receives more than $10 million annually in cable television franchise license fee revenue. These fees are paid to allow providers to utilize the City's streets and rights-of-way to operate their systems.
Public Outreach
The intent to standardize the Cable Television Franchise and Uniform Video Service License fees was posted more than 60 days in advance of this meeting, and a Notice of Intent was posted more than 15 days prior, in accordance with State law.
Department
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone and the Information Technology Services Department.