BEVERLY HILLS AGENDA REPORT Meeting Date: February 7, 2017 Item Number: D 8 To: From: Subject: Honorable Mayor & City Council Laurence S. Wiener, City Attorney AN ORDINANCE OF THE CITY OF BEVERLY HILLS REAUTHORIZING THE CITY S PUBLIC, EDUCATIONAL, AND GOVERNMENTAL ACCESS SUPPORT FEE Attachments: 1. Ordinance RECOMMENDATION It is recommended that the City Council move to waive the full reading and introduce the attached ordinance of the City of Beverly Hills to reauthorize the City s Public, Educational, and Governmental Access Fee codified in Section 6-2-502.C of Article 5, of Chapter 2, of Title 6 of the Beverly Hills Municipal Code. INTRODUCTION In accordance with state law, the City imposes a 1% Public, Educational and Governmental ( PEG ) access fee on all state franchised video service providers operating within the City to support PEG programming facilities. Unless this ordinance is reauthorized, the 1% PEG access fee will expire on March 30, 2017. DISCUSSION In 2006, the California Legislature adopted the Digital Infrastructure and Video Competition Act ( DIVCA ), which changed the manner in which video services are regulated by replacing local franchising with a state franchising system administered by the Public Utilities Commission. DIVCA requires state franchise holders to offer at least three PEG channels to each community in which they operate. DIVCA also authorizes cities to adopt an ordinance imposing a fee on state franchise holders to support PEG programming facilities. The City Council established such a fee on November 13, 2007 by adopting Ordinance No. 07-0-2535 to require video service providers who have been issued state franchises to pay the City a PEG access fee of 1% of the video service provider s gross revenues. Page 1 of2 B0785-0001\2037694v3.doc
Meeting Date: February 7, 2017 DIVCA also provides, however, that any ordinance adopting a PEG access fee shall expire, and may be reauthorized, upon the expiration of the state franchise. Public Utilities Code section 5870. Pacific Bell Telephone Company d/b/a SBC Pacific Bell Telephone Company d/b/a AT&T California ( AT&T ) received a state video franchise to operate within the City on March 30, 2007. This franchise will expire on Match 30, 2017. The City s PEG fee will therefore expire on March 30, 2017 unless the City Council reauthorizes the fee. The proposed Ordinance would reauthorize the City s PEG fee and therefore preserve funding available to support PEG programming facilities. FISCAL IMPACT The Ordinance will reauthorize a 1% PEG access support fee that the City currently receives. For fiscal year 15-16 the fee was $90,145.76. If the City Council does not reauthorize the PEG access support fee, the City will not receive further PEG access fees from video service providers operating under state franchises within the City. However, please be aware that the PEG access fee is passed along to the consumer. Laurence S. Wiener, City Attorney Approved By Page 2 of 2 B0785-0001\2037694v3doc
Attachment 1
ORDINANCE 17-0- AN ORDINANCE OF THE CITY OF BEVERLY HILLS REAUTHORIZING THE CITY S PUBLIC, EDUCATIONAL, AND GOVERNMENTAL ACCESS SUPPORT FEE WHEREAS, Section 5870(n) of the Public Utilities Code, which was enacted as part of the as the Digital Infrastructure and Video Competition Act of 2006, authorized the City adopt an ordinance establishing a fee on state-franchised video service providers to support public, educational, and governmental access channel facilities; and WHEREAS, the City adopted an ordinance establishing such a fee, which is codified in Section 6-2-502.C of the Municipal Code; and WHEREAS, Section 5 870(n) of the Public Utilities Code states that such an ordinance shall expire, and may be reauthorized, upon the expiration of a state franchise. WHEREAS, the first state franchise to include the City, 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 expire on March 30, 2017; NOW, THEREFORE, THE CITY COUNCIL Of THE CITY OF BEVERLY HILLS DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council hereby reauthorizes the fee on state-franchised video service providers to support public, educational, and governmental channel facilities codified in Section 6-2-502.C of the Municipal Code, which fee shall remain unchanged and in full effect as to all state-franchised video service providers. Section 2. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall remain in full force and effect. Section 3. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk s certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City. B07$5-0001\2038462v1.doc
Section 4. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (3 1st) day after its passage. Adopted: Effective: ATTEST: JOHN A. MIRISCH Mayor of the City of Beverly Hills, California BYRON POPE City Clerk (SEAL) APPROVED AS TO FORM: APPROVED AS TO CONTENT: LAURENCE S. WIENER City Attorney MAHDI ALUZRI City Manager BO785OOOl\2O38462v1 doc -2-