HomeMy WebLinkAbout2008-05-13; City Council; 19440; Ordinance repealing municipal code section 5.28CITY OF CARLSBAD - AGENDA BILL
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05-13-08
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ORDINANCE REPEALING MUNCIPAL
CODE SECTION 5.28
DEPT. HEAD
CITY ATTY.
CITY MGR.
IX
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RECOMMENDED ACTION:
Introduce Ordinance No. NS-891 amending Title 5 of the Carlsbad Municipal Code Business
Licenses and Regulations by repealing, in its entirety, Chapter 5.28, of the Carlsbad Municipal
Code applicable to holders of local video franchises.
ITEM EXPLANATION:
The Digital infrastructure and Video Competition Act ("Act") was passed by the State
Legislature in September 2006 and effective January 1, 2007. The Act transfers the authority
for granting video services (often referred to as "cable") franchises from the local franchising
authority (i.e. counties and municipalities) and places it on the state. The Act designated the
California Public Utilities Commission ("CPUC") as the state agency that is charged with
granting and administering video services franchises. On or about April 1, 2007, the CPUC
began accepting applications for state-granted video services franchises from "new" entrants to
the video services market. In addition, the Act also required local entities to adopt local
regulations applicable to holders of state-wide video services franchises. The City amended
Title 5 of the Carlsbad Municipal Code on June 26, 2007 enacting Chapter 5.29 that
incorporated the state law changes and to maintain the City's ability to collect both a five
percent (5%) franchise fee and a Public, Education and Government (PEG) Fee. At that time,
there were 2 video service providers in Carlsbad. AT&T was operating under a state issued
franchise, subject to Chapter 5.29 and Time Warner Cable was operating under the authority of
the local franchise regulations, Chapter 5.28. Time Warner Cable, as the incumbent video
services provider in Carlsbad was not eligible to receive a state-wide video services franchise
until January 2, 2008. Time Warner Cable has since applied for and been granted a state video
services franchise that became effective January 2, 2008. There are no longer any video
service providers operating in Carlsbad under Chapter 5.28 local franchise regulations.
FISCAL IMPACT:
The Act maintains the ability of local entities to receive, from each state-wide franchisee
providing video services in its geographic area, a 5 percent (5%) franchise fee ("Franchise fee")
and a PEG fee of between 1 percent (1%) and 3 percent (3%) of the provider's gross revenues,
depending on the rate that was in effect on December 31, 2006. Under the Act, the City has
been and continues to collect a 1% PEG fee from both Time Warner and AT &T. Thus, the City
is collecting all available fees from video service providers operating within the City's
geographical boundaries. The City has realized approximately $1 million per year attributed to
Franchise fees. The City has realized approximately $120,000 per year for past PEG fees. Staff
estimates an increase of $30,000 in future PEG fees due to the Act's method of calculation of
PEG fees.
DEPARTMENT CONTACT: Denise Vedder, City Communications Manager, 760-434-2957
FOR C/7Y CLERK'S USE ONLY.
COUNCIL ACTION: APPROVED tf
DENIED O
CONTINUED D
WITHDRAWN D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER - SEE MINUTES D
Page Two
FISCAL IMPACT Continued:
Direct and in-kind benefits that were once negotiated as part of local cable franchises, such as
recording/airing of City Council meetings and providing free cable video services are no longer
required or available under the Act.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15738, this
action does not constitute a "project" within the meaning of CEQA and therefore, does not
require an environmental review.
EXHIBITS:
1. City Council Ordinance No. NS-891. repealing in its entirety, Chapter 5.28 of the Carlsbad
Municipal Code applicable to holders of local video franchises.
EXHIBIT #1
ORDINANCE NO. NS-891
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, REPEALING, IN ITS ENTIRETY
CHAPTER 5.28 OF THE CARLSBAD MUNICIPAL CODE
APPLICABLE TO HOLDERS OF LOCAL VIDEO FRANCHISES.
WHEREAS, the California Legislature adopted the Digital Infrastructure and Video
Competition Act of 2006 ("DIVCA") establishing a state video franchising scheme under which
holders of state-issued video franchises would be partially regulated by the California Public
Utilities Commission ("PUC") and partially regulated by local governments; and
WHEREAS, under DIVCA, the authority for granting franchises for video services (often
referred to as "cable") has been transferred from local jurisdictions to the PUC, including
regulating build-out and non-discrimination standards for state franchise holders, enforcing anti-
subsidiary provisions and imposing user and application fees; and
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WHEREAS, the City of Carlsbad has previously amended the Municipal Code to add
11 Chapter 5.29, necessary in order to preserve the City's authority to regulate state video franchise
holders and collect a franchise fee and a Public, Education and Government fee, to the extent
12 permitted under DIVCA,
13 WHEREAS, as of January 2, 2008, there are no longer any video service providers in
Carlsbad operating under Chapter 5.28.
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NOW THEREFORE, the City Council of the City of Carlsbad, California, does ordain as
follows:
SECTION 1: That Chapter 5.28 of the Carlsbad Municipal Code is amended by repealing Chapter
5.28, in its entirely, sections 5.28.010 through 5.28.250.
EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption and the
City Clerk shall certify the adoption of this ordinance and cause it to be published at least once in
a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption.
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INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on
the 13th day of May. 2008, and thereafter.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the
City of Carlsbad on the day of , 2008, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard.
NOES: None.
ABSENT: None.
ABSTAIN: None.
11 APPROVED AS TO FORM AND LEGALITY
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14 RONALD R. BALL, City Attorney
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16 CLAUDE A LEWIS, Mayor
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18 ATTEST:
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20 LORRAINE M. WOOD, City Clerk
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Repealing Section 5.28Repealing Section 5.28zzDigital Infrastructure and Video Digital Infrastructure and Video Competition Act passed January 2007Competition Act passed January 2007zzState is responsible for issuing State is responsible for issuing ““cablecable””franchisesfranchiseszzCity no longer has authority City no longer has authority
Repealing Section 5.28Repealing Section 5.28zzTwo video service providers in Carlsbad Two video service providers in Carlsbad ––could be more in the futurecould be more in the futurezzAll will be governed by state rules, local All will be governed by state rules, local ordinances no longer applyordinances no longer applyzzCouncil adopted state rules June 2007Council adopted state rules June 2007
Repealing Section 5.28Repealing Section 5.28zzState rules maintain ability to collect State rules maintain ability to collect franchise and Public, Education, & franchise and Public, Education, & Government FeeGovernment FeezzChannels for public access preservedChannels for public access preservedzzCable provider no longer obligated to Cable provider no longer obligated to provide support for televising meetings & provide support for televising meetings & community programmingcommunity programming
Repealing Section 5.28Repealing Section 5.28zzUnder state law, PEG fees can only be Under state law, PEG fees can only be spent on capital expensesspent on capital expenseszzPEG fees no longer directed to Carlsbad PEG fees no longer directed to Carlsbad Cable Television Foundation (CCTV) Cable Television Foundation (CCTV) zzCCTV to conclude business and disband CCTV to conclude business and disband by October 2008by October 2008