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Home My WebLink AboutAGENDA REPORT 2017 0301 CCSA REG ITEM 09B ITEM 9.B. CITY OF MOORPARK,CALIFORNIA City Council Meeting ACTION: /. , , �� Li-454 £ Lit LI 5- , BY: • MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Brian Chong, Administrative Services Manager ,►j� DATE: February 21, 2017 (CC Meeting of 3/1/17) SUBJECT: Consider Adoption of an Urgency Ordinance Reauthorizing the City's Public, Education, and Governmental (PEG) Fee, and Introduction of an Ordinance Reauthorizing and Readopting the PEG fee for the Same Purpose, and a Determination That These Actions Are Exempt from the California Environmental Quality Act BACKGROUND In 2006, the State of California enacted the Digital Infrastructure and Video Competition Act (DIVCA), which allowed cable television operators to enter into statewide video franchise agreements, rather than separate franchise agreements with local municipalities. DIVCA allows local municipalities to pass an ordinance requiring state video franchisees to pay a Public, Education, and Governmental Access (PEG) fee to support PEG channels, such as Moorpark's MPTV channel. In 2007, the City adopted Ordinance No. 350 to establish a PEG fee of 1°A3 of gross revenues of a state video franchise holder. However, pursuant to state law, such ordinances expire upon expiration of a state franchise. AT&T obtained a state franchise in 2007, and it expires on March 30, 2017. To ensure that the City's PEG fee does not lapse, the City must reauthorize the fee prior to this date. DISCUSSION Pursuant to California Public Utilities Code § 5870(n), local entities may adopt ordinances establishing a fee to support PEG channel facilities, up to a maximum of 1% 254 Honorable City Council March 1, 2017 Page 2 of the franchisee's gross revenues. The City adopted Ordinance No. 350 on June 6, 2007 to establish a PEG fee of 1% of gross revenues. AT&T obtained a state video franchise for the Moorpark area in 2007, and its ten-year term is expiring. The City must therefore reauthorize its PEG fee ordinance. There is no proposed change to the PEG fee, so there will be no fiscal impact to the City of Moorpark's video and television subscribers. Urgency Ordinance If the City does not reauthorize its existing PEG fee by March 30, 2017, then the City's PEG will expire until such time as it is readopted. Thus, if this ordinance does not become effective until thirty days after its second reading (the second reading would take place on March 15, 2017, based on the current City Council meeting schedule), the PEG fee would lapse, potentially jeopardizing the City's ability to communicate with its residents-through PEG channel programming. A lapse could also lead to confusion among state video franchisees operating within the City regarding the payment of PEG fees to the City. If the non-urgency ordinance is adopted immediately following its second reading on March 15, 2017, and becomes effective on April 15, 2017, then the urgency ordinance will cover the period of time between March 31, 2017 and April 14, 2017, and ensure that the City's fee will remain in effect without interruption. Effect on Charter/Spectrum Customers Prior to the enactment of DIVCA, the City had one active cable television franchise agreement, which is now controlled by Charter/Spectrum. Adoption of the proposed ordinances will affect neither Charter/Spectrum nor its customers because the Charter/Spectrum franchise agreement contains its own PEG support requirement. CEQA The Community Development Director has reviewed the contents of these ordinances and determined that adoption of these ordinances are exempt from the provisions of the California Environmental Quality Act (CEQA) by the general rule that CEQA only applies to projects that may have a significant effect on the environment. 255 Honorable City Council March 1, 2017 Page 3 FISCAL IMPACT Adopting the proposed ordinances would enable the City to continue collecting PEG fees from AT&T past March 30, 2017. The City collected approximately $32,000 in such fees in FY 2015-16 and approximately $13,000 through the first half of FY 2016- 17. Beginning in 2019, staff estimates that PEG fee revenue would increase by approximately $10,000 per year, when the Charter/Spectrum City franchise agreement would have expired. STAFF RECOMMENDATION 1) Waive full reading and adopt Urgency Ordinance No. . (ROLL CALL VOTE REQUIRED); and 2) Introduce Ordinance No. for first reading, waive full reading, and place this ordinance on the agenda for March 15, 2017, for purposes of providing a second reading and adoption of the ordinance. Attachment 1: Draft Urgency Ordinance Attachment 2: Draft (Non-Urgency) Ordinance 256 ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY OF MOORPARK REAUTHORIZING THE CITY'S PUBLIC, EDUCATION, AND GOVERNMENTAL (PEG) FEE, AND MAKING A DETERMINATION UNDER CEQA WHEREAS, the Digital Infrastructure and Video Competition Act of 2006 (Public Utilities Code § 5800 et. seq., or DIVCA) went into effect on January 1, 2007; and WHEREAS, DIVCA allows local entities to establish Public, Education, and Governmental (PEG) fees of up to 1% of gross revenues to be paid by state video franchise holders; and WHEREAS, on June 6, 2007, the City Council adopted Ordinance No. 350, to create a PEG fee of 1% of gross revenues; and WHEREAS, Section 5870(n) of the Public Utilities Code states that such an ordinance shall expire, and may be reauthorized, upon the expiration of a state video franchise; and WHEREAS, the state video franchise held by AT&T will expire on March 30, 2017; and WHEREAS, the Community Development Director has reviewed the contents of this Ordinance and determined that adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) by the general rule that CEQA only applies to projects that may have a significant effect on the environment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council has reviewed the Community Development Director's determination that this ordinance is exempt from CEQA and concurs that the ordinance does not have the possibility of having a significant effect on the environment and is therefore exempt from CEQA. SECTION 2. Urgency Findings. The City Council finds as follows: (a) Currently, the City depends upon PEG fees to support PEG access channel facilities, which are essential to providing city residents and businesses with important civic programming, including emergency alerts and governmental news and information. Pursuant to Public Utilities Code Section 5870(n), the City's PEG fee codified in Section 5.07.020(c) of the Moorpark Municipal Code will expire upon the expiration of a state video franchise. AT&T 257 currently holds a video state franchise that will expire on March 30, 2017. If this fee is not reauthorized by March 30, 2017, the City may lose funding for its PEG programming facilities. Any loss of funding could jeopardize the City's ability to timely communicate with its residents regarding matters of public importance. A lapse of funding may also lead to confusion among state video franchisees operating within the City regarding the payment of PEG fees to the City. (b) Therefore, the City Council finds and determines that the immediate preservation of the public peace, health, and safety requires that this ordinance be enacted as an urgency ordinance pursuant to Government Code Section 36937(b) and take effect immediately upon adoption. If this ordinance does not become effective immediately, but instead becomes effective thirty days after its second reading, funding for City PEG facilities could lapse, jeopardizing the City's ability to communicate with residents who rely on the City's PEG channel for emergency alerts and governmental news and information. Therefore, this ordinance is necessary for the immediate preservation of the public peace, health, and safety, and its urgency is hereby declared. SECTION 3. The City Council hereby reauthorizes the PEG fee on state video franchise holders to support public, education, and governmental channel facilities as codified in Section 5.07.020(c) of the Moorpark Municipal Code. SECTION 4. If any section, subsection, sentence, clause, phrase, part or portion of this ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses, phrases, parts or portions be declared invalid or unconstitutional. SECTION 5. This urgency ordinance shall become effective immediately upon adoption. 258 SECTION 6. The City Clerk shall certify to the passage and adoption of this ordinance; shall enter the same in the book of original ordinances of said City; shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council at which the same is passed and adopted; and shall publish notice of adoption in the manner required by law. PASSED AND ADOPTED this 1st day of March, 2017. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 259 ORDINANCE NO. AN ORDINANCE OF THE CITY OF MOORPARK REAUTHORIZING AND READOPTING THE CITY'S PUBLIC, EDUCATION, AND GOVERNMENT (PEG) FEE, AND MAKING A DETERMINATION UNDER CEQA WHEREAS, the Digital Infrastructure and Video Competition Act of 2006 (Public Utilities Code § 5800 et. seq., or DIVCA)went into effect on January 1, 2007; and WHEREAS, DIVCA allows local entities to establish Public, Education, and Governmental (PEG) fees of up to 1% of gross revenues to be paid by state video franchise holders; and WHEREAS, on June 6, 2007, the City Council adopted Ordinance No. 350, to create a PEG fee of 1% of gross revenues; and WHEREAS, Section 5870(n) of the Public Utilities Code states that such an ordinance shall expire, and may be reauthorized, upon the expiration of a state video franchise; and WHEREAS, the state video franchise held by AT&T will expire on March 30, 2017; and WHEREAS, the Community Development Director has reviewed the contents of this Ordinance and determined that adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) by the general rule that CEQA only applies to projects that may have a significant effect on the environment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council has reviewed the Community Development Director's determination that this ordinance is exempt from CEQA and concurs that the ordinance does not have the possibility of having a significant effect on the environment and is therefore exempt from CEQA. SECTION 2 . The City Council hereby reauthorizes and readopts the PEG fee on state video franchise holders to support public, education, and governmental channel facilities as codified in Section 5.07.020(c)of the Moorpark Municipal Code. SECTION 3. If any section, subsection, sentence, clause, phrase, part or portion of this ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have adopted this ordinance and 260 each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses, phrases, parts or portions be declared invalid or unconstitutional. SECTION 4 . This ordinance shall become effective thirty (30) days after its passage and adoption. SECTION 5 . The City Clerk shall certify to the passage and adoption of this ordinance; shall enter the same in the book of original ordinances of said City; shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council at which the same is passed and adopted; and shall publish notice of adoption in the manner required by law. PASSED AND ADOPTED this day of , Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 261