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Council to approve 10‑year DirecTV franchise; city to receive 5% franchise fee and 1.58% PEG support fee
Summary
Council placed a 10‑year cable franchise agreement with DirecTV LLC on consent; under the terms presented the city would receive a 5% franchise fee and a 1.58% PEG fee to support channel 8, and state law provides for automatic approval within 30 days if the city does not act.
Livonia City Council on Aug. 11 reviewed and placed on consent a 10‑year cable franchise agreement between the city and DirecTV LLC. The agreement carries a 5% franchise fee payable to the city and a 1.58% PEG (public, educational and government) fee to support the city's channel 8.
City attorney staff told council the agreement essentially continues existing terms previously held with AT&T and that state law governing franchising now provides for automatic approval within 30 days if a municipality does not act. "DIRECTV has actually taken over this agreement from AT and T. So they've offered us the same terms that they've always offered us, a 5% franchise fee and a 1.58% peg fee to support, channel 8," planning/law staff said. The staff memo noted that under current state law the agreement would be approved administratively in 30 days if not acted on by the council.
Council members asked about modern viewer features. Councilwoman Toye said she was "a little crabby" about the city retaining older equipment but the city's legal staff and the vice president said the provider has comparable features such as voice control and replay. The council placed the item on consent to appear on the Aug. 25 voting meeting agenda.
