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R-10316City Council Meeting 6-24-08 Santa Monica, California RESOLUTION NO.iosis(CCS) (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SETTING FRANCHISE FEES FOR HOLDERS OF STATE VIDEO SERVICE FRANCHISES WHEREAS, in 2006 the State of California passed the Digital Infrastructure and Video Competition Act (DIVCA); and WHEREAS, under DIVCA the state allowed cable and video service providers to receive state issued franchises to operate within the state, including within the City of Santa Monica; and WHEREAS, under DIVCA any holder of a state issued franchise is obligated to pay a city a franchise fee equal to five percent of gross revenues as defined in DIVCA, unless a city sets a lower the franchise fee; and, WHEREAS, prior to DIVCA cable and video service providers operating within the City were required to obtain a franchise from the City; and WHEREAS, the City required prior holders of City issued cable and video franchises to pay the City a franchise fee of three percent; and WHEREAS, under DIVCA holders of a state franchise no longer need to obtain a City issued franchise to operate with the City of Santa Monica; and 1 WHEREAS, in 2007 the City Council adopted a local State Video Service Franchise ordinance, Santa Monica Municipal Code sections 6.109.010. et seq.; and WHEREAS, in .accordance with the City's State Video Service Franchise . ordinance holders of state issued franchises are obligated to pay the City a franchise fee of five percent as provided for in DIVCA, unless the City Council by resolution adopts a lower franchise fee; and WHEREAS, in accordance with the City's State Video Service Franchise ordinance the City Council wishes to establish a State Franchise Holder franchise fee of three percent, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. In accordance with section 6.109.030 of the Santa Monica Municipal Code (SMMC), any State Franchise Holder as defined in-SMMC section 6.109.020 shall pay the City a State Franchise Holder fee equal to three percent of gross revenues as defined in SMMC Chapter 6.109 and applicable law. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: 2 Adopted and approved this 24th day of June, 2008. ~b~ Ma r Pro Tem Bloom I, Maria Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Resolution No. 10316 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 24th day of June, 2008, by the following vote: Ayes: Council members: Censer, Holbrook, McKeown, O'Connor Mayor Pro Tem Bloom Noes: Council members: None Abstain: Council members: None Absent: Council members: Shriver Mayor Katz ATTEST: Maria M. Stewa ,City Clerk