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Item No. 14 <br />memorandum <br />TO: City Council <br />John Godwin, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: PUBLIC, EDUCATIONAL, & GOVERNMENTAL ACCESS CHANNEL (PEG) <br />AND PUBLIC INFORMATION OFFICER (PIO) <br />DATE: October 9, 2015 <br />BACKGROUND: Historically cable franchises were granted by local governments where a fee <br />was collected for the use of the city's right -of -way. In 2005, the state legislature allowed cable <br />companies to bypass local control by setting up a state - issued certificate of franchise authority. In <br />the City of Paris' case, the cable company did not invoke their right to a state issued franchise until <br />the local franchise expired at the end of 2009. At that point, the state franchise legislation applied to <br />the City of Paris. In addition to the 5% franchise fee allowed under the state franchise fee, the City <br />could also collect a I% fee for the purpose providing public, educational, and governmental <br />programming to citizens. While the State law imposed no restrictions on the type of expenditures <br />made from PEG funds, federal law dictates that this 1% fee can only be spent for capital items. <br />Under the state franchise, the City can require Suddenlink Communications to provide the City with <br />up to 2 PEG channels. The City would be required to provide at least 8 hours of programming each <br />day on a PEG channel. <br />STATUS OF ISSUE: Beginning in 2010, the City opted to collect this 1% fee for PEG purposes. <br />Information accompanying this memo outlines potential uses of a City PEG channel. The <br />underlying motivation for PEG channels is the transparency and easy access to local government. <br />BUDGET: The PEG franchise fee will more than provide all of the equipment needed for the City <br />to develop its own programming. Funding for one full time employee and other operational <br />expenses would have to be provided for by the City. <br />RECOMMENDATION: City staff is seeking the Council's direction regarding the setup and <br />operation of a PEG channel for the City. <br />