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HomeMy WebLinkAboutOrdinance #3767 ` ORDINANCE NO. 3 7 6 7 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH ESTABLISHING FEES FOR STATE FRANCHISED VIDEO SERVICE PROVIDERS WHEREAS, pursuant to the 2004 Restated and Amended Joint Powers Agreement, the City of Huntington Beach ("City") is a member of the Public Cable Television Authority ("PCTA") for the purposes of exercising the common powers of its member cities relating to cable television;video service providers, and open video systems, and Effective January 1, 2007, the State of California("State") has the authority to grant state franchises for the provision of video service including cable television, video service providers, and open video systems, and Pursuant to the Digital Infrastructure and Video Competition Act of 2006 ("Act"), the City and PCTA acquire certain rights and responsibilities with respect to state video franchise holders, and Included in such rights is the requirement that the City, through the PCTA, receive a state franchise fee as compensation for the use of the public rights-of-way for the provision of video services, and All current cable television franchisees pay a franchise fee equal to five percent (5%) of Gross Revenues, and Pursuant to the Act, local entities may, by ordinance, establish a fee for the support of public, educational, and government access ("PEG") channel facilities, and The City of Huntington Beach and the PCTA have been authorized to examine the business records of a State Franchisee to the extent reasonably necessary to ensure compensation is in accordance with state law, and The PCTA will retain authority, without change, over all PCTA cable franchises until such time as the parties thereto no longer hold a PCTA franchise, or are no longer operating under a current or expired franchise, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby, ORDAIN AS FOLLOWS: Section 1: That State Franchisee(s) holders that offer video service within the jurisdictional boundary of the City of Huntington Beach will calculate and remit, a state franchise fee equal to five percent (5%) of gross revenues as provided in Sections 5860 and 5840(q)(1) of the Act. Section 2: That State Franchisee(s) holders that offer service within the jurisdictional boundaries of the City of Huntington Beach will calculate and remit, an additional PEG facilities 07-913/8702 1 Ordinance No. 3767 Support Fee equal to one percent (1%) of gross revenues to be used in a manner consistent with law as provided in Section 5800(n)of the Act. Section 3: The Franchise Fee and PEG Support Fee shall be remitted to the PCTA on a quarterly basis within 45 days after the end of each quarter for that calendar year. Each payment shall be accompanied by a detailed summary explaining the basis for the calculation of the Franchise Fee and PEG Support Fee. Section 4: Gross Revenues under Sections 1 and 2 above, shall be defined as is consistent with Section 5860 of the Act. Section 5: A late payment charge equal to the highest prime lending rate during the period of delinquency plus one percent (1%) will be applied to any payment made by a state video franchise holder for Franchise Fees and PEG Support Fees not received when due under Section 3 above. Section 6: Not more than once annually, the City of Huntington Beach and/or the PCTA may examine the business records of a State Franchisee(s) to the extent reasonably necessary to ensure compliance with the Act and this Ordinance. Section 7: Any Franchise Fee and PEG Support Fee levied and collected by the PCTA pursuant to this Act shall constitute a credit against any Franchise Fee or PEG Support Fee imposed herein. Section 8: This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of April , 2007. ATTEST: Cityfrk INITIATE D PROVED: REVIEWED AND APPROVED: Deputy City Ad m' istrator-City Services ity Administrator APPROVED AS TO FORM: 19 jCitttorne 3-t 07-913/8702 2 Ord. No. 3767 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 2nd day of April,2007, and was again read to said City Council at a regular meeting thereof held on the 16th day of April,2007, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Bohr, Carchio, Coerper, Green, Hansen, Hardy NOES: None ABSENT: Cook ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on April 26,2007. In accordance with the City Charter of said City Joan L. Flynn,City Clerk Ci Clerk and ex-officio flerk u I(' Deputy city clerk of the City Council of the City of Huntington Beach, California