City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01169 10/3/2023 Consent Item 7.
Agreement: Interagency Reimbursement Award with the Sacramento Metro Cable Television (PEG Funding) for FY2023/24
File ID: 2023-01169
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to accept and execute: 1) a Reimbursement Agreement with the Cable Television Commission (SMCTC) in the amount of $611,512 for expenditures associated with the technical upgrade of the Council Chambers and Historic Hearing Room; and 2) increase the revenue and expense budgets for the reimbursement of $611,512 in the Council Chamber/Hearing Room Program (A07001000).
Contact: Manuel Martinez, Interim IT Manager, (916) 808-8785, [email protected]; Darin Arcolino, Chief Information Officer, (916) 808-0403, [email protected] Presenter: None.
Attachments:
1-Description/Analysis
2-Agreement
3-Resolution
Description/Analysis
Issue Detail: The SMCTC is a joint powers agency that collects a 1% Public Educational, and Governmental (PEG) access channel fees from cable television operators to support PEG facilities.
The City is a member agency of SMCTC. SMCTC awards PEG funds to member agencies that request support for projects and services related to PEG access channels consistent with Federal restrictions on the use of PEG funds. The proposed agreement will memorialize the terms of SMCTC’s award to the City and the applicable federal restrictions of the City’s use of the PEG funds.
Council approval is necessary as the City Manager does not have the expressed authority to enter into the proposed agreement.
On September 1, 2023, the SMCTC awarded the City $611,512 in PEG funding for FY2023-24. Over
File ID: 2023-01169 10/3/2023 Consent Item 7.
the last ten years, the technology in the Council Chambers and Hearing Room have come to the end of its lifecycle and is technologically obsolete. Over the past several years, the City has relied on PEG funds awarded by the SMCTC to upgrade the audio and video systems and associated hardware components. This has occurred component by component, replacing various systems that were at end-of life or at the point of failure.
The PEG funding award will be used in accordance with federal restrictions to finish installing and integrating several new audio video presentation control hardware for our Historic Hearing Room and upgrading our broadcast camera system. Additionally, the funding will be used to replace aged and non-supported hardware in our City Hall Council Chambers to support remote meeting capability in several City Hall conference rooms. These upgrades will allow the rooms to act as public meeting overflow rooms with full audio and video participation capabilities. Other upgrades include the installation of new video presentation screens for the City Hall Plaza allowing for a larger number of citizens to monitor and participate in council meetings. The Media Control Room will also be upgraded with the replacement of aged and non-supported video distribution amplifiers, and other enhancements to our audio and video systems. This will allow for a robust transmission of our video production system into our streaming environments.
Policy Considerations: The proposed Agreement (Attachment 2) is in alignment with the Mayor and Council Budget Priorities and the Demonstration Partnerships Policy adopted by the Council on April 25, 2017 (Resolution No. 2017-0150).
Economic Impacts: Not applicable.
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The proposed agreement with the SMCTC will provide funding necessary for the upgrade/replacement of the audio/visual systems, lighting, and equipment in the Council Chamber and Hearing Room.
Financial Considerations: The Council Chamber/Hearing Room Program (A07001000, CIP Reimbursable Fund 3702) was established to record the reimbursement expenses for the equipment and services from the PEG award.
Local Business Enterprise (LBE): The project associated with this agreement is in partnership with the SMCTC. Therefore, the City’s LBE requirements are waived.
File ID: 2023-01169 10/3/2023 Consent Item 7.
DocuSign Envelope ID: A56494CC-E7B8-4O92-B051-6E2DB68131 BB
SACRAMENTO METROPOLITAN
CABLE TELEVISION COMMISSION
__.___,,_ 799 G Street, 4th Floor, Sacramento, CA 95814 • (916) 874-6661 • Fax: (916) 854-9666 • www.sacmetrocable .tv A Joint Powers Agency Representing Sacramento County and the Cities of Citrus Heights, Elk Grove, Folsom, Galt, Rancho Cordova and Sacramento
SACRAMENTO METROPOLITAN CABLE TELEVISION COMMISSION
PEG FEE FUNDING AGREEMENT FOR MEMBER AGENCY
FISCAL YEAR 2023-24
30 August
THIS AGREEMENT is entered into this __ day of ______ _
2023, by and between the Sacramento Metropolitan Cable Television Commission ("SMCTC") and the City of Sacramento, a political subdivision of the State of California ("Member Agency").
WHEREAS, SMCTC is a joint powers agency comprised of seven member jurisdictions (collectively, the "Member Agencies"), one of which is the Member Agency;
WHEREAS, commencing with the 2009-2010 fiscal year, SMCTC began collecting a 1 % Public, Educational, and Governmental ("PEG") access channel fees ("PEG Fee funding") from cable television operators to support PEG facilities;
WHEREAS, SMCTC anticipates that PEG Fee funds will be available to provide to its Member Agencies to support projects, programming, and services relating to PEG access facilities;
WHEREAS, SMCTC has received a request(s) for PEG Fee funding from Member Agency and hereby approves that request(s). A copy of Member Agency's approved request(s) is hereby incorporated by this reference; WHEREAS, federal law currently restricts the use of PEG Fee funding to capital costs and facilities; and
WHEREAS, SMCTC and Member Agency desire to enter into this Agreement to memorialize the terms under which SMCTC will provide PEG Fee funding to Member Agency, and to expressly set forth the restrictions on Member Agency's use of such funding.
DocuSign Envelope ID: A56494CC-E7B8-4O92-B051-6E2DB68131 BB Fiscal Year 2023-24 PEG Fee Funding Agreement - Sacramento
NOW, THEREFORE, SMCTC and Member Agency agree as follows:
1. Funding to Member Agency. SMCTC hereby agrees to provide to Member Agency the total not to exceed sum of SIX HUNDRED ELEVEN THOUSAND, FIVE HUNDRED TWELVE DOLLARS ($611,512), which consists of PEG Fee funding to be used solely for the purposes summarized in the table below and detailed in Exhibit "A" attached hereto and incorporated by this reference.
Fiscal Year 2023-24 PEG Project (See Exhibit A)
Historic Council Chamber PEG Equipment/ Facilities List $143,949 City Hall PEG Equipment/ Facilities List $467,563
TOTAL FY 2023-24 PEG FEE FUNDING REQUEST $611,512
The PEG Fee funding will be available during FY 2023-24 as set forth below.
2. Payment Contingent on Receipt of PEG Fees. Member Agency understands that the funding amount set forth in Section 1 will be made to Member Agency solely out of PEG fees collected by SMCTC from cable television operators. Such PEG fees are received in quarterly payments and SMCTC shall be under no obligation to pay to Member Agency the amount stated in Section 1, or any other amount, unless SMCTC receives sufficient PEG fees to make such payment. If actual revenue received through PEG Fees is less than anticipated, SMCTC is not obligated to pay Member Agency.
Payments to member agency will occur during the fiscal year and will be prioritized by the SMCTC based upon facility needs and available revenue; Member Agency will be reimbursed based on actual expenditures.
Member Agency further understands that SMCTC may enter, or has already entered, into similar funding agreements with other member agencies and with channel licensees that operate one or more of the SMCTC PEG channels. In the event SMCTC receives some, but not all of the PEG fees necessary to fund all such funding agreements, each member agency and channel licensee shall receive available PEG funds based on the criteria set forth above. If there are insufficient PEG fees to satisfy all funding requests during this fiscal year, members agencies not receiving all identified funding shall be entitled to a higher priority in the next fiscal year before any funding for new projects for the next year fiscal year is approved.
DocuSign Envelope ID: A56494CC-E7B8-4O92-B051-6E2DB68131 BB Fiscal Year 2023-24 PEG Fee Funding Agreement - Sacramento
3. Use of PEG Fee funding. Member Agency understands that the funding provided to it pursuant to this Agreement originated from PEG access channel fees. As a condition of accepting the PEG Fee funding, Member Agency agrees to use those funds only for capital expenditures and facilities related to the provision of cablecasting on the PEG channels and for no other purpose. SMCTC has both the responsibility and the right under this Agreement to monitor and audit the use of the funding allocated under this Agreement. Member Agency shall agree to cooperate fully with any audit requested by SMCTC.
Since applicable law does not specifically define those expenses that qualify as capital costs, SMCTC has developed a working definition of the types of expenses that it believes qualify for the use of PEG Fee funding.
SMCTC reserves the right to modify its working definition as the law on this topic develops. In accordance with SMCTC's working definition, PEG Fee funding may be used for the following expenditures: purchase of equipment, rental of facilities, purchase of so~ware, and tangible goods provided that a CPA certifies that the tangible goods qualify as capital expenditures pursuant to standard accounting practices. PEG Fee funding may not be used for the following expenditures: operations, training, maintenance, maintenance contracts/agreements, employment of staff, and hiring of persons to perform services. Member Agency shall provide for such fiscal control and funding accounting procedures as reasonably necessary to assure proper disbursement, accounting, and expenditures of PEG Fee funding.
Member Agency further understands and agrees that the PEG Fee funding provided by SMCTC was awarded based on a request from Member Agency and that the use of the PEG funds are limited to the expenditures outlined in that request as approved by SMCTC. If Member Agency determines that it will not proceed with the expenditures as set forth in the request approved by SMCTC during the current fiscal year, then Member Agency may (1) notify SMCTC that the Member Agency will re-submit the PEG Fee funding in the next fiscal year or (2) request an extension for use of the funds within sixty days of the expiration of the current fiscal year. The Executive Director may approve or condition such request in their discretion. The Member Agency may also request to modify the approved use of the funding. The Executive Director may consider and approve requests up to a total of $50,000 in the fiscal year if the requested change(s) is an allowable PEG Funding DocuSign Envelope ID: A56494CC-E7B8-4O92-B051-6E2DB68131 BB Fiscal Year 2023-24 PEG Fee Funding Agreement - Sacramento
expenditure. Requests above a total of $50,000 will require Commission consideration and action. The Executive Director may consider and approve any request as authorized by this section. The Executive Director may also elect to seek direction or action by the Commission on any such requests.
4. Indemnification. Member Agency shall, at its sole expense, fully indemnify, defend and hold harmless SMCTC and its member agencies, and in their capacity as such, the officers, agents and employees thereof, from and against any and all claims, suits, actions, liability and judgments for damages including reasonable attorneys' fees or otherwise.
For actual or alleged injury to persons or property, including loss of use of property due to an occurrence, whether or not such property is physically damaged or destroyed, directly or indirectly arising out of or attributable to, in whole or in part, the acts or omissions of Member Agency in connection with, related to, or in any way arising out of Member Agency's use of the PEG Fee funding provided to it under this Agreement.
Directly or indirectly arising out of or attributable to, in whole or in part, Member Agency's failure to comply with the provisions of any statute, regulation, or ordinance of the United States, the State of California, SMCTC or any local agency in connection with, related to, or in any way arising out of Member Agency's use or expenditure of the PEG Fee funding provided to it under this Agreement.
5. Attorneys' Fees. If any party to this Agreement commences any legal action against another party to this Agreement which arise out of this Agreement or the performance thereof, the prevailing party in such action may recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses and attorneys' fees.
6. Reimbursement Requirement; Record Retention. No later than June 1st for each fiscal year, Member Agency shall submit to SMCTC a copy of all invoices and receipts reflecting the expenditures made with such funds during the preceding fiscal year, a request for reimbursement from funds identified in Section 1 above and such other information as SMCTC may require. Any expenses or projects that have not been completed by June 15 of that fiscal year shall be subject to the provisions of section 3 above. SMCTC DocuSign Envelope ID: A56494CC-E7B8-4O92-B051-6E2DB68131 BB Fiscal Year 2023-24 PEG Fee Funding Agreement - Sacramento
shall reimburse Member Agency within a reasonable time of receipt of such documentation subject to the provisions of this Agreement, including Sections 2 and 3. Member Agency shall retain all records related to the expenditure of PEG Fee funds for a period of no less than three (3) years from the last expenditure reimbursed under this Agreement.
7. Unauthorized Use of PEG Fee funding. If SMCTC determines that Member Agency has used the PEG Fee funds provided to it under this Agreement for purposes other than capital expenditures and facilities, Member Agency shall return to SMCTC the total sum of those unauthorized expenditures within sixty (60) days of receipt of written notice from SMCTC.
8. Ownership of Facilities and Equipment. Member Agency shall own and be solely responsible for any facilities, equipment, or other items that it acquires with PEG Fee funding provided to it pursuant to this Agreement.
SMCTC shall have no obligations, and shall bear no costs, with respect to any facilities, equipment, or other items that Member Agency acquires with such PEG Fee funding.
9. No Right of Action. Member Agency understands and agrees that it has no right of judicial action against SMCTC for the failure of SMCTC to pay any or all of the funds to Member Agency under this Agreement. Such judicial actions include those at law and/or equity, including, but not limited to, any action to compel payment of the funds, any action for general or special damages, or otherwise.
10. Agreement Contains All Understanding. This document represents the entire and integrated agreement between the Parties, and supersedes all prior negotiations, representations or agreements, either written or oral regarding the subjects addressed herein. This document may be amended only by written instrument, signed by all Parties.
11. Effective Date of Agreement. This Agreement shall be effective on the date next to the signature of the Executive Director of the SMCTC, as authorized by the SMCTC Board on the 1st of September 2022.
DocuSign Envelope ID: A56494CC-E7B8-4D92-B051-6E2DB68131 BB Fiscal Year 2023-24 PEG Fee Funding Agreement - Sacramento
12. Terms. The term of the PEG Fee funding Agreement ends June 30, 2024.
CITY OF SACRAMENTO
By:
Title: -------------
Date: ___________ _
APPROVED AS TO FORM:
Sr. Deputy City Attny
City of Sacramento
ATTEST BY:
Sep 8, 2023
SACRAMENTO METROPOLITAN
CABLE TELEVISION COMMISSION
By:
Title: Executive Director
-------------
Date: ____ s_f 3_0_1_20_2_3 ____ _
DocuSign Envelope ID: A56494CC-E7B8-4O92-B051-6E2DB68131 BB Fiscal Year 2023-24 PEG Fee Funding Agreement - Sacramento
EXHIBIT A
CITY OF SACRAMENTO
FISCAL YEAR 2023-24 PEG FEE FUNDING REQUEST
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
October ___, 2023
REIMBURSEMENT AGREEMENT WITH THE SACRAMENTO METROPOLITAN CABLE TELEVISION COMMISSION FOR FY2023/24.
BACKGROUND
A. Sacramento Metropolitan Cable Television Commission (“SMCTC”) is a joint powers agency that collects a 1% Public Educational, and Governmental (“PEG”) access channel fees from cable television operators to support PEG facilities. SMCTC awards PEG fee funds to its member agencies to support projects, programming, and services related to PEG access facilities.
B. Federal law restricts the use of PEG fee funds. As a result, SMCTC enters into agreements with its member agencies to restrict the use of those funds in accordance with federal law. (See the Federal Communications Act section 611 et seq.)
C. The City of Sacramento (the “City”) is a member agency of SMCTC and the City’s Council Chambers and Historic Hearing Rooms are PEG access facilities.
D. Over the last ten years, the technology in the Council Chambers has come to the end of its lifecycle and is technologically obsolete. In the past several years, the City has relied on PEG funds awarded by the SMCTC to upgrade the system. This has occurred component by component, replacing various systems that were at end-of life or at the point of failure.
E. On September 1, 2023, the SMCTC awarded the City $611,512 in PEG funding for FY2023/24.
F. The PEG funding award will be used in accordance with federal restrictions to finish installing and integrating several new Audio Video presentation control hardware for our Historic Hearing Room and upgrading our broadcast Camera System. Additionally, the funding will be used to replace aged and non-supported hardware in our City Hall Council Chambers to support remote meeting capability in several City Hall conference rooms. These upgrades will allow the rooms to act as public meeting overflow rooms with full audio and video participation capabilities. Other upgrades include the installation of new video presentation screens for the City Hall Plaza allowing for a larger number of citizens to monitor and participate in council meetings. The Media Control Room will also be upgraded with the replacement of aged and non-supported video distribution amplifiers, and other enhancements to our audio and video systems. This will allow for a robust transmission of our video production system into our streaming environments.
G. The City Hall Hearing Rooms Technology Program (A07001000, CIP Reimbursable Fund 3702) was established to record the reimbursement expenses for the equipment and services from the PEG award.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1.
The City Manager or the City Manager ’s designee is authorized to enter into the Interagency Award Agreement with the SCMTC in the amount of $611,512 attached and made a part of this Resolution.
Section 2. The revenue and expenditure budgets for the Council C hamber/Hearing Room Program (A07001000) are increased in Fund 3702 (CIP
Reimbursable Fund) in the amount of $611,512.