RES-11003 Reauthorizing OMC ChapterRESOLUTION NO. 11003
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ORANGE REAUTHORIZING
OMC CHAPTER 13.81 RELATING TO CABLE
TELEVISION FRANCHISE FEES.
WHEREAS, in 2006 the California Legislature adopted Assembly Bill 2987, "the Digital
Infrastructure and Video Competition Act of 2006" (the "Video Act ") which became effective
January 1, 2007; and
WHEREAS, under the Video Act any entity using the public right -of -way at least in part
to provide video service (programming services, cable service or open video services) has the
choice of obtaining a franchise with the local agency or a state franchise until January 1, 2008,
after which a state franchise must be obtained; and
WHEREAS, under the new law, a holder of a state franchise may be charged a franchise
fee of five percent of its gross revenue from subscribers within the City's limits, or the percentage
of gross revenue currently paid by incumbent City cable operators, whichever is less; and
WHEREAS, the Video Act permits the City to adopt an ordinance requiring a state
franchisee to pay an additional one percent of gross revenue for Public, Educational and
Government ( "PEG ") purposes, said ordinance being adopted by the City Council as Ordinance
No. 14 -07 creating Orange Municipal Code Chapter 13.81; and
WHEREAS, pursuant to the Video Act, a local entity must reauthorize its ordinance in
order to continue to collect PEG fees upon the expiration of the state franchise; and
WHEREAS, the City has been notified of the expiration of Cox Communications state
franchise; and
WHEREAS, this reauthorization of Ordinance No. 14 -07, establishing OMC Chapter
13.81 will allow the City to continue to claim a five percent franchise fee and a one percent fee for
PEG purposes.
NOW, THEREFORE, the City Council of the City of Orange resolves, finds and determines,
on the basis of the facts set forth in the agenda report presented to it and any testimony received at the
meeting at which this matter was considered, as follows:
1. The City Council hereby reauthorizes the adoption of Ordinance No. 14 -07 creating
Orange Municipal Code Chapter 13.81 foregoing recitals are true and correct.
ADOPTED this 9th day of May 2017.
Teresa/E. Smith, Mayor, City of Orange
ATTEST:
Mary E. M?JhF, City Clerk, Cit range
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF ORANGE
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that
the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange
at a regular meeting thereof held on the 9th day of May 2017, by the following vote:
AYES: COUNCILMEMBERS: Alvarez, Whitaker, Smith, Murphy, Nichols
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
Mary E. ity Clerk, City nge
Resolution No. 11003