HomeMy WebLinkAboutOrdinance #4130 ORDINANCE NO. 4130
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
RE-ESTABLISHING FEES FOR STATE FRANCHISED
VIDEO SERVICE PROVIDERS
WHEREAS, the Legislature of the State of California has enacted the Digital
Infrastructure and Video Competition Act of 2006 set forth in Public Utilities Code section 5800
et seq., which authorizes State Franchises; 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 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
Pursuant to the Digital Infrastructure and Video Competition Act of 2006 ("Act"), the
City of Huntington Beach and the Public Cable Television Authority ("PCTA") acquire certain
rights and responsibilities with respect to state video franchise holders ("State Franchisees"); and
The PCTA adopted an ordinance on March 14, 2007, wherein the PCTA agreed to
impose certain fees on cable providers within the PCTA's jurisdiction; and
Included in such rights is the requirement that the City of Huntington Beach, 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
On April 16, 2007, City adopted an ordinance establishing fees for State Franchised
video service providers; 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
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ORDINANCE NO. 4130
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;
Some State Franchises within the PCTA's jurisdiction will expire and are expected to be
renewed in 2017; and
Public Utilities Code section 5870(n) provides that the PEG fees must be reauthorized
upon the expiration of an applicable State 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
Support Fee equal to one percent (1%) of gross revenues to be used in a manner consistent with
law as provided in Section 5870(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.
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ORDINANCE NO. 4130
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 20th day of March , 20 17
Mayor
ATTEST: Q APPROVED A ORM:
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City Clerk City Attorney N�o
REVIEW N APPROVED: INITIATED AND APPROVED:
Ci an4ger ssistqpt City Manager
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17-5650/153050/RLS 2/16/17/DO 3
Ord. No. 4130
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU, 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 March 6,2017, and was again read to said City
Council at a Regular meeting thereof held on March 20,2017, and was passed and
adopted by the affirmative vote of at least a majority of all the members of said City
Council.
AYES: O'Connell, Semeta, Delgleize, Hardy, Brenden, Peterson
NOES: None
ABSENT: Posey
ABSTAIN: None
I,Robin Estanislau,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 Wave on March 30,2017.
L 11'
In accordance with the City Charter of said City.
Robin Estanislau, City Clerk City Clerk and ex-officio Clerk
Senior Deputy City Clerk of the City Council of the City
of Huntington Beach, California