Loading...
HomeMy WebLinkAboutCC AG PKT 2007-11-05 #G e e e AGENDA REPORT DATE: November 5, 2007 TO: Honorable Mayor and Members of the City Council THRU: David N. Carmany, City Manager FROM: June Y otsuya, Assistant City Manager SUBJECT: Cable Franchise Ordinance SUMMARY OF REQUEST: Adopt Ordinance Number 1563, An Ordinance of the City of Seal Beach Amending City of Seal Beach Municipal Code Title 6-Chapter 6.10 by Adding a New Section 6.10.085. DISCUSSION: At its meeting of October 22, 2007, the City Council introduced an ordinance adding a new section to the City of Seal Beach Municipal Code for Franchises-Cable, Video and Telecommunications that will preserve the City's ability to collect a PEG support fee for each holder of a state franchise under new state law, the Digital Infrastructure and Video Competition Act of 2006 (DIVCA). RECOMMENDATION: Staff recommends that City Council adopt: "Ordinance Number 1563, An Ordinance of the City of Seal Beach Amending City of Seal Beach Municipal Code Title 6-Chapter 6.10 by Adding a New Section 6.10.085. Submitted by: J NOTED AND APPROVED: o~ ""-" David N. Carmany, City Manager Attachment: Ordinance Amending Municipal Code Agenda Item G ORDINANCE NUMBER 1563 e AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING CHAPTER 6.10 OF TITLE 6 OF THE SEAL BEACH MUNICIPAL CODE BY ADDING A NEW SECTION 6.10.085 THE CITY COUNCn. OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS: Section 1. Chapter 6.10 of Title 6 of the Seal Beach Municipal Code, which is titled "Cable, Video and Telecommunications," is amended by adding a new Section 6.10.085 to read as follows: , 6.10.085. Snecial Provisions ADDlicable to Holders of State Video Franchises A. Fee for SUDDort of PEG Access Facilities and Activities. e 1. The City Council has determined that the public interest will best be served by imposing, to the extent authorized by applicable law, comparable financial obligations upon similarly-situaled multichannel video programming providers that are franchised to provide video services within the City. Consistent with the City's policy of requiring franchisees to provide financial support for public, educational, and governmental (PEG) access channel facilities and activities, a fee is established as set forth below in subparagraph (3). 2. On December 31, 2006, the City's incumbent cable operator was contractually obligated to pay an annual fee of $75,000 to support PEG channel facilities and activities. This fee is in excess of one percent (1%) of the cable operator's reported gross revenues, and it is approximately equivalent to 1.20% of the reported gross revenues. The term "gross revenues" shan be defined as set forth in Califomia Public Utilities Code Section 5860. 3. The City hereby establishes and imposes upon any state video franchise holder operating in the City a fee, separate from the five percent (5%) franchise fee, to support PEG access channel facilities and activities. This separate fee is in the amount of one and twenty-eight hundredths percent (1.20%) of a video service provider's gross revenues. The restrictions and limitations set forth below in subparagraph (4) apply to this PEG access support fee. 4. The fee in support of PEG access channel facilities and activities specified above in subparagraph (3), as applied to a state video franchise holder, is subject to the following provisions: a. The fee must not exceed three percent (3%) of the holder's gross revenues, as the term "gross revenues" is defined in the Public Utilities Code section 5860. b. The fee will terminate upon expiration of the state video franchis.. but it may be reauthorized by ordinance adopted by the City Council. e c. If the imposition of this fee, or any component thereof, is determined to be contrary to or inconsistent with the provisions of Public Utilities Code section 5870 by subsequent legislative action, judicial decision, or administrative interpretation, then an alternative fee for PEG support obligations may be imposed by ordinance adopted by the City Council. d. The fee established by this paragraph (A) shall be remitted quarterly to the City Treasurer and must be received not later than 45 days after the end of the preceding calcndar quarter. The fee payment shall be accompanied by a summary that describes an sources of the gross revenues upon which the fee is based, which Ordinance Number 1563 summary must be verified by a responsible [maneial officer or employee of the video service provider. B. Franch;", Fee. e A state video franchise bolder operating in the City shall pay to the City a franchise fee that Is equal to five percent (591)) of the gross revenues of that state video franchise holder. The term "gross revenues" shall be defined as set forth in Public Utilities Code section 5860. C. Audit Authority. Not IJlOIe than once annually, the City may examine and perfOnD. an audit of the business records of a holder of a state video franchise to ensure compliance with all applicable statutes and regulations related to the computation and payment of franchise fees. D. Cu..tnmer Service Penalties Under State Video Franchi.... 1. The holder of a state video franchise ahall comply with all applicable state and federal customer service and protection standards pertaining to the provision of video service. 2. The City shall monitor a state video franchise holder's compliance with state and federal customer service and protection standards. The City will provide to the state video franchise holder written notice of any material breaches of applicable customer service and protection standards, and will allow the state video franchise holder 30 days from receipt of the notice to remedy the .~ified material breach. Material breaches not remedied within the 3D-day time period will be subject to the following monetary penalties to be imposed by the City in accordance with state law: a. For the first occurrence of a violation, a monetary penalty of $500 shall be imposed for each day the violation remains in effect, not to exceed $1,500 for eaeli violation. e b. For a second violation of the same nature within 12 months, a monetary penalty of $1,000 shall be imposed for each day the violation remains in effect, not to excoed $3,000 for each violation. c. For a third or further violation of the same nature within 12 months, a monetary penalty of $2,500 shall be imposed for each day the violation remains in effect, not to exceed $1,SOO for each violation. 3. A state video franchise holder may appeal a monetary penalty assessed by the City within 60 days. After relevant evidence and testimony is received, and staff reports are submitted, the City Council will vote to either upbold or vacate the monetary penalty. The City Council's decision on the imposition of a monetary penalty shall be final. E. citv Res"""se to State Video Franchise ADtllications. 1. Applicants for state video franchises within the boundaries of the City must concurrently provide to the City complete copies of any application or amendments to applications filed with the Califomia Public Utilities Commission. One complete copy must be provided to the City Manager. 2. The City will provide any appropriate comments to the califomia Public Utilities Commission regarding an application or an amendment to an application for a stale video franchise. e Ordinance Number 1563 e F. PEG Access Channel CaoacilV. 1. A state video franchise holder that uses the public rights-of-way shall designate sufficient capacity on its network to enable the carriage of at least three public, educational, or governmental (PEG) access channels. 2. Additional requirements relating to PEG access channels are as follows: .. A state video franchise holder is subject to payment of the PEG support fee specified above in paragraph (A). b. PEG access channels shall be for the exclusive use of the City or its designees to provide public, educationa~ or governmental programming. c. Advertising, underwriting, or sponsorship recognition may be cpried on the PEG access channels for the purpose of funding PEG-related activities. d. The PEG access channels sball be carried on the basic service tier. e. To the extent feasible, the PEG access channels shall not be separated numerically from other channels carried on the basic service tier, and the channel nwnbers for the PEG access channels shall be the same channel numben used by the incumbent cable operator unless prohibited by federal law. f. After the initial designation of PEG access channel numbers, the channel numbers shall not be changed witheut the prior written consent of the City, unless the change is required by federal law. g. Each PEG access channel shall be capable of carrying a National Television System Committee (NTSC) television signal. e G. Interconnection. Where technically feasible, a state viden franchise holder and incumbent cable operator shall negotiate in good faith to interconnect their oetworks for the purpose of providing PEG access channel programming. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. State video franchise holders and incumbent cable operators shall provide interconnection of the PEG access channels on reasonable tenns and conditions and may not withhold the interconnection. If a state video franchise bolder and an incwnbent cable operator cannot n:ac:h a mutually acceptable interconnection agreement, the City may require the incwnbent cable operator to allow the state video franchise holder to interconnect its network with the iocwnbent's network at a technically feasible point on the holder's network as identified by the bolder. If no technically feasible point for interconnection is available, the state video mchise holder sball make an interconnection available to the channel originator and sball provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by the state video franchise holder requesting the interconnection unless otherwise agreed to by the parries. H. Emer-ncv Alert Svstern and Emefl!eocv Overrides. A state video franchise holder must comply with the Emergency Alert System requirements of the Federal Communications Commission in order that emergency messages may be dislributed over the bolder's network. Provisions in City-issued franchises authorizing the City to provide local emergency notifications shall remain in effect, and sball apply to all state video francbise holders in the City for the duration of the City-issued mchise, or until the tenn of the franchise would have expired had it not been terminated pursuant to subdivision (m) of Section 5840 of the California Public Utilities Code, or until January I, 2009, whichever is later. e Ordinance Number 1563 I. Encroachment Permit ADDlications. e 1. As used in this section, the term "encroachment pennie' means any pennit issued by the City relating to consttuction or operation of facilities by the holder of a state video francbise. 2. The City shail either approve or deny an application from a holder of a state video francbise for an encroachment pennit within 60 daya of teeeiving a completed application. 3. If the City denies an application for an encroachment pennit, the City sball, at the time of notifying the applicant of the denial, furnish to the applicant a detailed explanation of !he reasoo for the denial. An applicant may appeal the City's denial of an encroaclunent permit application to the City Council. A written notice of appeal stating the facts of the matter and the grounds for appeal shall be filed with the C:;ty CierI< within ten days of the denial. The City Clerk shall set the matter for bearing at a regular meeting of the City Council and shall give the appellant wri~ notice of the time and place of hearing at least five days before the hearing. The decision of the City Council taken after the appellant has had an opportunity to be heard will be final. Section 2. This ordinance shall become effective 30 days after its adoption. Section 3. The City Clerk is directed to certify to the adoption of this ordinance and to cause this ordinance to be published or posted as required by law. PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a meeting thereof held on the 5th day nf November , 2007. Mayor e ATTEST: City Clerk STATEOFCALlFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Undo Devine, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing ordinance is an original copy of Ordinance Number ~ on file in the office of the City Clerk, introduced at a meeting held on the 22nd day of October , 2007, and passed, approved and adopted by the City Council of the City of Seal Beach at a meeting held on the -2!!l- day of November. 2007 by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers and do hereby further certify that Ordinance Number ~ has been published pursuant to the Seal Beach City Charter and Resolution Number 2836. e City Clerk