Title
Resolution to Approve a Renewal of the Uniform Video Service Local Franchise Agreement with DIRECTV, LLC
Memorandum
Attached for your review and approval is a resolution to approve a renewal of the Uniform Video Service Local Franchise Agreement with DIRECTV, LLC which acquired its interest in the agreement from Michigan Bell Telephone Company d/b/a AT&T Michigan (AT&T) effective August 11, 2021. The agreement was originally approved on April 16, 2007 and was renewed in April 2016 for a 10-year term.
The Agreement is in a form mandated by the Michigan Public Service Commission by an Order dated January 30, 2007, issued pursuant to the Uniform Video Service Local Franchise Act, 2006 Public Act 480 (MCL 484.3301 et seq.) (“Act”). The requested renewal is for a ten-year term. DIRECTV requested the renewal of its franchise agreement on February 18, 2026, and the Act requires the City to take action on DIRECTV, LLC’s application within 30 days after receipt.
In accordance with the Act and consistent with the current agreement, DIRECTV will pay a franchise fee of 5% of gross revenues which is the same fee paid by other video franchise local service providers. DIRECTV will pay PEG (Public, Educational and Government channels) fees of 2% of gross revenues consistent with the current agreement and those paid by other providers.
Pursuant to the Act, DIRECTV is not required to provide any other compensation or in-kind services to the City.
The proposed renewal agreement has been reviewed and is recommended for approval.
Staff
Prepared by: Tim Wilhelm, Deputy City Attorney
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney, Jr, City Administrator
Body
Whereas, In 2007 the City approved and issued a Uniform Video Service Local Franchise Agreement with Michigan Bell Telephone Company d/b/a AT&T Michigan;
Whereas, on September 19, 2016 the City approved a renewal of AT&T’s agreement for a ten-year term;
Whereas, On August 11, 2021, DIRECTV, LLC acquired AT&T’s Uniform Video Service Local Franchise Agreement, and on February 18, 0226 applied for renewal of same;
Whereas, Staff has reviewed the application and determined it is complete;
Whereas, The Uniform Video Service Local Franchise Act requires the City to act on DIRECTV, LLC’s application within 30 days after receipt; and
Whereas, The proposed renewal of the Uniform Video Service Local Franchise Agreement is in a form mandated by the Michigan Public Service Commission by an Order dated January 30, 2007, issued pursuant to the Uniform Video Service Local Franchise Act, 2006 Public Act 480 (MCL 484.3301 et seq.);
RESOLVED, That the City reserves all rights to challenge the legality of the Uniform Video Service Local Franchise Act or any part of it, reserves its rights in the event the legality of the Uniform Video Service Local Franchise Act is challenged by others and the Act or any part of it is found to be illegal, and reserves its rights to negotiate different or additional terms in this or future renewals of video service local franchise agreements;
RESOLVED, That notwithstanding and subject to the foregoing Resolved clause, the Mayor and City Clerk are authorized and directed to execute said renewal of the Uniform Video Service Local Franchise Agreement with DIRECTV, LLC after approval as to form by the City Attorney and approval as to substance by the City Administrator; and
RESOLVED, That notwithstanding and subject to the first RESOLVED clause, the City Administrator is authorized to take necessary administrative actions to implement this resolution.