HomeMy WebLinkAbout2017-03-28 - AGENDA REPORTS - REAUTHORIZATION OF PEG FEE (2)Agenda Item: 8
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: fill
DATE: March 28, 2017
SUBJECT: SECOND READING OF AN ORDINANCE FOR THE
REAUTHORIZATION OF CITY PUBLIC, EDUCATIONAL, AND
GOVERNMENT ACCESS (PEG) FEE COLLECTION AUTHORITY
UNDER STATE LAW
DEPARTMENT: City Manager's Office
PRESENTER: Nick Robles
RECOMMENDED ACTION
City Council:
Conduct a second reading and adopt an ordinance entitled: "AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA,
REAUTHORIZING THE PUBLIC, EDUCATIONAL, AND GOVERNMENTAL (PEG)
ACCESS FEE."
2. Find that the following proposed action is exempt from the California Environmental
QualityAct ("CEQA") pursuant to State CEQA Guidelines Section 15061 (b)(3); general
rule.
BACKGROUND
At the March 14, 2017, regular City Council meeting, an ordinance was introduced and passed to
second reading to reauthorize the Public, Educational, and Governmental Access (PEG) fees.
In California, franchising and regulation of cable television (TV) and video providers is
governed by the Digital Infrastructure and Video Competition Act of 2006 (DIVCA). DIVCA
shifted franchising of cable TV and video operators from the local to the state level, and included
a variety of provisions specifying what local agencies could require of cable TV and video
providers. One provision of DIVCA, allows local entities to establish by ordinance a fee equal to
one percent of operators' gross revenues on video services here locally, which can be used solely
to support Public, Educational and Government Access (PEG) channels capital expenditures.
The City Council amended Santa Clarita's Telecommunications Ordinance - Chapter 4.22 of the
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Municipal Code - in November 2007 to incorporate requirements for video providers franchised
by the state in conformance with DIVCA. The amendments included establishment of the PEG
Fee for state -franchised providers.
The City collects approximately $509,000 annually in PEG Fees, which fund capital
improvements to PEG facilities, replacement of equipment for the television related items in the
Council Chambers and purchase programming for the channel.
The current state -issued franchises for the two video providers operating in Santa Clarita, AT&T
expires March 2017 and Charter Spectrum Communications (formerly known as Time Warner)
expires January 2018. AT&T applied for renewal of its state franchise in December 2016.
Following a streamlined procedure, the California Public Utilities Commission approved a new
10-year AT&T franchise term effective March 30, 2017. Staff anticipates that Charter will
similarly apply for and be granted renewal of its state franchise before its initial franchise term
ends.
The conclusion of the initial 10-year terms of the state franchises is significant because DIVCA
states that local one percent PEG Fee ordinances "...shall expire, and may be reauthorized, upon
the expiration of the state franchise." At present, it is unclear whether re -authorization of the
City's PEG Fee ordinance is required upon expiration of the AT&T and Charter video franchises.
However, staff has observed that other local agencies, including the City of Los Angeles, have
sought re -authorization of their PEG Fee ordinances as AT&T's initial statewide franchise comes
to an end.
Although a reasonable argument may be made that DIVCA's expiration language does not apply,
there is the possibility that PEG funding could be lost unless the fee is reauthorized. As such,
staff recommends the City Council approve the draft ordinance.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
There is no cost related to carrying out the recommended action and it will not have any indirect
or support cost requirements.
However, not approving the action could result in a potential loss of PEG fees which amount to
approximately $509,000 annually.
ATTACHMENTS
Santa Clarita PEG Ordinance 2017
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Ordinance No.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, REAUTHORIZING THE PUBLIC, EDUCATIONAL,
AND GOVERNMENTAL (PEG) ACCESS FEE
WHEREAS, Section 5870(n) of the Public Utilities Code, which was enacted as part of
the Digital Infrastructure and Video Competition Act of 2006, authorized the City of Santa
Clarita to adopt an ordinance establishing a fee on state -franchised video service providers to
support public, educational, and governmental access channel facilities; and c
WHEREAS, on November 13, 2007, the City of Santa Clarita adopted Ordinance
Number 07-8 to establish such a fee; and Z
WHEREAS, Section 5870(n) of the Public Utilities Code appears to indicate that such an
ordinance shall expire, and may be reauthorized, upon the expiration of a state franchise; and
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WHEREAS, California Video Franchise Certificate Franchise No. 0002 granted to
Pacific Bell Telephone Co. d/b/a SBC Pacific Bell Telephone Co. d/b/a AT&T California, will 0
expire on March 30, 2017; and w
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WHEREAS, this ordinance is not intended to impose a new or increased fee, but rather is T_
intended to reauthorize the already existing PEG fee at the same level, to the extent such �
reauthorization is required by State law in order to continue to collect said fee. ti
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA
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DOES ORDAIN AS FOLLOWS:
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SECTION 1. The City of Santa Clarita hereby reauthorizes the fee on state -franchised
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video service providers to support public, educational, and governmental channel facilities
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adopted in Ordinance Number 07-8, and referenced in Santa Clarita Municipal Code Section
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4.22.020. The fee shall remain unchanged and in full effect as to all state -franchised video
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service providers.
SECTION 2. Environmental Findings. The City Council exercises its independent
judgment and finds that this ordinance is not subject to the California Environmental Quality Act
(CEQA) pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14,
Chapter 3, sectionl506 I (b)(3) because the activity is covered by the general rule that CEQA
applies only to projects which have the potential for causing a significant effect on the
environment and it can be seen with certainty that there is no possibility that this Ordinance may
have a significant effect on the environment.
SECTION 3. Severability. If any section, subsection, sentence, clause, or phrase of this
ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision will not affect the validity of the remaining portions of this
ordinance. The City Council declares that it would have passed this ordinance and each and
every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional
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without regard to whether any portion of the ordinance would be subsequently declared invalid
or unconstitutional.
SECTION 4. Effective Date. This ordinance takes effect 30 days from the date of its
adoption.
SECTION 5. Publication. The City Clerk shall certify to the passage of this Ordinance
and shall cause the same to be published as required by law.
PASSED, APPROVED, AND ADOPTED
2017.
Mayor M
Attest:
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City Clerk 0
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STATE OF CALIFORNIA ) 00
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA ) r
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Ordinance 17- was regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the day of 2017. That thereafter, said
Ordinance was duly passed and adopted at a regular meeting of the City Council on the day
of 2017, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
AND I FURTHER CERTIFY that the foregoing is the original of Ordinance and
was published in The Signal newspaper in accordance with State Law (G.C. 40806).
CITY CLERK
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