REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Lori Ann Farrell Harrison, Interim City Manager
PREPARED BY: Antonia Graham, Assistant to the City Manager
Subject:
title
Adopt Ordinance No. 4180 repealing Ordinance No. 4130 and adding Chapter 3.50 to the Huntington Beach Municipal Code relating to State Video Franchises
Approved for introduction May 6, 2019 - Vote: 7-0
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Statement of Issue:
On January 22, 2019, the City Council voted to authorize the City Manager to execute a six (6) month Notice of Intent to Terminate the City's membership from the Public Cable Television Authority (PCTA).
Financial Impact:
This action will enable the cable television providers to directly remit approximately $605,000 in Public, Educational, Governmental (PEG) fees effective July 1, 2019, and will provide the opportunity to purse more cost-effective means of securing public access audio-visual services. The City will also receive approximately $3 million in cable franchise fees directly from the franchisees, instead of being passed through PCTA.
Recommended Action:
recommendation
Adopt Ordinance No.4180, "An Ordinance of the City Council of the City of Huntington Beach Repealing Ordinance No. 4130 and Adding Chapter 3.50 to the Huntington Beach Municipal Code Relating to State Video Franchises."
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Alternative Action(s):
If the City does not rescind this Ordinance, the funds will continue to be remitted to PCTA directly.
Analysis:
Local governments have traditionally received compensation for the use of the public right-of-way by cable television companies for the provision of video services in the community. The City currently receives 5% of the gross revenues from Frontier Communications (former Verizon) and Spectrum/Charter (formerly Time Warner Cable) through its membership in PCTA. PCTA annually collects approximately $605,000 in PEG fees from Huntington Beach ratepayers and withholds $152,000 in f...
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