HomeMy WebLinkAboutOrd. No. 2021-1449 Urgency Reauthorizing Collection of State Video Franchise Hodler Fee and Codifying the PEG
ORDINANCE NO. 2021-1449
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE AMENDING SECTION 5.60.050OF THE LAKE ELSINORE
MUNICIPAL CODE REAUTHORIZING THE CITY’S CONTINUED COLLECTION
OF THE STATE VIDEO FRANCHISE HOLDER FEE AND CODIFYING THE
PUBLIC, EDUCATIONAL, AND GOVERNMENT ACCESS FEE (PEG FEE)
WHEREAS, Section 5870(n) of the Public Utilities Code, which was enacted as part of the
Digital Infrastructure and Video Competition Act (DIVCA) of 2006, authorized the City to collect a
State Video Franchise Holder Fee of 5% of gross revenues earned by the cable operator and to
adopt an ordinance establishing afee on state-franchised video service providers to support
public, educational, and governmental access channel facilities(“PEG Fees”); and
WHEREAS,the City’s video franchise regulations are set forth in Chapter 5.60 of the Lake
Elsinore Municipal Codeand Section 5.60.050 regulating Franchise Payments should be
amended pursuant to DIVCA and the state video franchise regulations to reauthorize the City’s
state video franchise fee and to establish the PEG Fee on all state-franchised video service
providers operating within the City; and
WHEREAS, Government Code Section 36937 expressly authorizes the City Council to
adopt an urgency ordinance for the immediate preservation of the public peace, health or safety;
and
WHEREAS,this Ordinance will reauthorize the City’s ability to charge telecommunications
companies a State Video Franchise Holder Fee and a PEG Fee.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WALNUT, DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1.The above recitals are true and correct and incorporated fully herein.
SECTION 2.Section 5.60.050 “Franchise Payments” of the Lake Elsinore Municipal
Code is hereby amended and restated in its entirety as follows:
“5.60.050 Video Franchise and PEG Fees.
A. Video Franchise Fee. Any video service provider, cable service or video
system service provider holding a state issued franchise pursuant to the Digital
Infrastructure and Video Competition Act of 2006 (the “Act,” Public Utilities Code
5 5800 et seq.)or a City of Lake Elsinore franchise operating within the boundaries
of the city shall pay a fee to the city equal to five percent (5%) of the gross revenue
of that state video franchise holderor local franchisee.
B. PEG Fee. Any state video franchise holder or a City of Lake Elsinore
franchise operating within the boundaries of the city shall also pay the city a fee
equal to one percent of the gross revenue of that state video franchise holder,
which fee shall be used by the city for any Public, Education, and/or Government
(PEG) purposes consistent with state and federal law.
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The PEG fee required to be paid by this section shall be remitted to the city
within forty-five (45) days after the end of the fiscal year for which the fee is being
paid, regardless of when during the fiscal year video services commenced being
offered in the city. Each payment shall be accompanied by a summary explaining
the basis for the calculation of the PEG fee. If the video service provider does not
pay the PEG fee when due,the video service provider shall pay a late payment
charge at a rate per year equal to the highest prime lending rate during the period
of delinquency, plus one (1) percent. If the video service provider has overpaid its
PEG fee, it may deduct the overpayment from its next annual payment.
In addition, any state franchisee that has held a locally issued franchise
agreement shall, consistent with Public Utilities Code section 5870, continue to
fully provide and support PEG channel facilities and institutional networks and to
provide cable services to community buildings to the maximum extent permitted
by law.
C. Gross Revenue. “Gross revenue” for the purposes of A. and B. , (b)
above, shall have the definition set forth in California Public Utilities Code section
5860.
D. Audit. Not more than once annually, the city manager or the manager's
designee may examine and perform an audit of the franchisee’s business records
showing the gross receipts from which its franchise payments pursuant to (a) and
(b) above are computed. No acceptance of any franchise fee payments shall be
construed as a release or as an accord and satisfaction of any claim the City may
have for further or additional sums payable under this chapter or for the
performance of any other obligation hereunder.”
SECTION 3.Commencing from, and after effective date of this Ordinance, the fees
established by Section 5.60.050 shall remain unchanged and in full effect as to all state-franchised
video service providers to the maximum permitted by applicable law and shall automatically be
reauthorized upon the expiration of any existing or future Video Franchise Certificate Franchise(s)
held by any state–franchised video provider operating within the City. The Ordinance shall
automatically and continually renew upon the future expiration of Video Franchise Certificate
Franchise(s) until such time that the City Council takes formal affirmative action to cease the
renewals.
SECTION 4.The City Council finds, pursuant to Title 14 of the California Code of
Regulations, Section 15273, that this Ordinance is exempt from the requirements of the California
Environmental Quality Act (CEQA) which provides a statutory exemption from CEQA for fees and
charges imposed for the purposes of meeting agency operating expenses.
SECTION 5.This Urgency Ordinance is enacted pursuant to the authority conferred
upon the City by Government Code Sections 36937 and shall be in full force and effect
immediately upon its adoption by a four-fifths (4/5) vote of the City Council. This Urgency
Ordinance shall take effect immediately upon adoption and shall become operative on March 23,
2021.
SECTION 6.The adoption of this Urgency Ordinance is necessary for the immediate
preservation of the public peace, health, or safety, as those terms are defined in Government
Code Section 36937(b), in at least the following respects: The City only recently received notice
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of the state-issued franchise andexpiration of the city-issued franchise held by the City’s cable
provider, and hence the need for reauthorization of the video franchise fee and PEG Fee, such
that it is essential that the City adopt the above stated Ordinance authorization immediately.
Accordingly, this Ordinance shall take effect immediately upon adoption.
SECTION 7. If any section, subsection, subdivision, sentence, clause, phrase, or portion
of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance
and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof,
irrespective of the fact that any one or more section, subsection, subdivision, sentence, clause,
phrase, or portion thereof be declared invalid or unconstitutional.
PASSED,APPROVED,ANDADOPTED at a regular meetingoftheCityCouncilof the
rd
CityofLakeElsinore,California,on this 23day of March2021.
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss.
CITY OF LAKE ELSINORE)
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that
Urgency Ordinance No. 2020-1449was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of March 23, 2021and that the same was adopted by the
following vote:
AYES:Council Members Tisdale, Johnson, and Manos; Mayor Pro-Tem Sheridan;and
Mayor Magee
NOES:None
ABSENT:None
ABSTAIN:None
Candice Alvarez, MMC
City Clerk