SR-6-K (68)
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JAN 2 6 1999
CM KV f \cmanager\stfrpt\rr012699 wpd Santa Monica, Callforma
Council Meeting January 26, 1999
TO Mayor and City Council
FROM City Staff
SUBJECT Cable TelevIsion Franchise Application Fee
Introduction
This report requests that City Council establish an application fee associated With cable
franchise for the provIsion of cable televIsion and related services In the City of Santa
Monica
DIScussion
The cable ordinance of the City of Santa Monica, Chapter 6 108 of the Municipal Code,
gives broad authOrity for the City to establish a non-refundable filing fee payable to the City
In an amount as may be established by the City at the time of application No proposal for
a franchise shall be considered Without receipt of thiS fee Further, the code provides that
In the event that expenses exceed the total amount offihng fees collected from applicants,
that an applicant awarded a franchise shall reimburse the City for the excess cost Incurred
City review of an operator's franchise proposal IS complex and Includes analYSIS of the
operator's technical, financial and legal qualifications and an ascertainment of community
needs by the City ThiS review IS time consummg, expensive and more likely than not
reqUIres the City to hIre appropriate experts to assist In the analYSIS
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JAN 2 6 1999
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Staff recommends that a fee of $12,000 be established at the time of application to cover
the costs associated with the review of the appllcatron Thereafter at award, any other
associated costs beyond the Initial $12,000 would be recovered
BudgetlFlnancJallmpact
Staff anticipates receipt of cable franchise appllcatrons At this time It IS not possible to
estimate the amount of revenue to be derived from this process Funds received will be
deposited Into the Cable Fund at account #51-110-207-00000-0272-10000
Recommendation
Staff recommends the establishment of a $12,000 application fee for a cable franchise
applicant
Prepared by Kathryn Vernez, Asst to City Manager for Government Relations
Joseph Lawrence, Assistant City Attorney
Mike Dennrs, Fmance Director
Robm Gee, Cable TV Manager
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