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<br />CITY COUNCIL MEETING DATE: <br /> <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />REQUEST FOR <br />COUNCIL ACTION <br /> <br />August 18, 2008 <br />TITLE: <br /> <br />APPROVED <br /> <br />ORDINANCE ADDING <br />DIVISION 6 TO CHAPTER 15 <br />REGARDING STATE <br />FRANCHISED VIDEO SERVICE <br />PROVIDERS <br /> <br />o As Recommended <br />o As Amended <br />o Ordinance on 1 sl Reading <br />o Ordinance on 2nd Reading <br />o Implementing Resolution <br />o Set Public Hearing For <br /> <br />tZ4~ <br /> <br />CITY MANAGER <br /> <br />CONTINUED TO <br /> <br />--- <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Adopt an ordinance adding Article II, Chapter 15, Division 6 of the Santa <br />Ana Municipal Code regarding State franchised video service providers. <br /> <br />DISCUSSION <br /> <br />On September 29, 2006 Governor Schwarzenegger signed AB 2987 to become <br />effective January 1, 2007. Also known as the Digital Infrastructure and <br />Video Competition Act of 2006 (DIVCA), this bill established a new <br />framework for the regulation of cable television. In summary, this <br />statute states that cities no longer have the authority to issue <br />franchises to video providers, and that the authority to issue new <br />franchises is held solely by the California Public Utilities Commission <br />(CPUC) . <br /> <br />Pursuant to DIVCA, the City of Santa Ana acquires certain rights and <br />responsibilities with respect to state video franchise holders, and <br />included in such rights is the requirement that the City receive a state <br />franchise fee as compensation for the use of the public rights-of-way for <br />the provision of video services. This Ordinance requires state franchise <br />holders to remit a state franchise fee equal to five percent of gross <br />revenues. In addition, state franchise holders must pay an additional <br />Public, Educational, and Government (PEG) facilities support fee equal to <br />one percent of that state franchisee's gross revenue, to be used for PEG <br />purposes consistent with state and federal law. Both of these fees are <br />comparable to the fees that Time Warner is paying the City under our <br />existing franchise agreement. <br /> <br />The City will be able to audit the state franchise holders' records to <br />the extent reasonably necessary to ensure compensation is in accordance <br />with State law. In addition, state video franchise holders must comply <br />wi th all applicable state and federal customer service and protection <br />standards pertaining to the provision of video services in Santa Ana. <br /> <br />50A-1 <br />