G-847 - 11/27/2007 - TAX - Ordinances Supporting Documentsr
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AGENDA ITEM
Regular Board of Trustees Meeting
of
November 27, 2007
ITEM 6A.
IN
SUBJECT: An Ordinance Establishing a Cable /Video Service Provider Fee and PEG Access
Support Fee and Amending Title 5 of the Village Code
FROM: Bruce F. Kapff, Information Services and Purchasing Director
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move that the Village Board adopt the attached
Ordinance, which establishes a Cable/Video Service Provider Fee of 5% and PEG Access
Support Fee of 1%, and Amends Title 5 of the Village Code.
Background/History:
Illinois law now permits video service providers, such as AT &T, to obtain state - issued
authorization to provide video services to municipalities.
Under this law, municipalities should pass a Service Provider Fee and PEG (public, education,
and governmental) Access Support Fee Ordinance. The law authorizes municipalities to charge
providers a fee of five percent of gross revenues — or the same fee paid by incumbent providers.
Additionally, municipalities have the right to activate PEG channels and charge a support fee for
such channels of at least one percent of gross revenues — or the same fee paid by incumbent
providers, even if greater than one percent.
Attached is the Ordinance (based on IML sample ordinance) establishing Service Provider and
PEG Access Fees. The Service Provider fee is five percent (5 %), the same as Comcast's
franchise fee. The PEG Access Fee is at the statutory one percent (1 %).
Recommendation:
That the Village Board adopt the attached Ordinance, which establishes a Cable/Video Service
Provider Fee and PEG Access Support Fee, and Amends Title 5 of the Village Code. 1
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