Chapter 14.10
STATE VIDEO SERVICE FRANCHISE
Sections:
14.10.020 State video service franchise fees.
14.10.030 Minimum customer protection and service standards.
14.10.040 Customer service standards violations and penalties.
14.10.050 Encroachment permits.
14.10.010 Purpose.
By this chapter, the city of Cerritos provides for certain regulations applicable to those holders of a state video service franchise, issued by the state of California pursuant to the Digital Infrastructure and Video Competition Act of 2006, and doing business within the city. (Ord. 927 § 1 (part), 2007)
14.10.020 State video service franchise fees.
(a) Any holder of a state video service franchise that offers video service within the city shall calculate and remit to the city a franchise fee of five percent of gross revenues derived from the provision of video service within the city.
(b) For the purposes of any state video service franchise, “gross revenues” shall be as defined in Section 5860 of the California Public Utilities Code (“CPUC”), as amended.
(c) The state video service franchise fee shall be remitted to the city quarterly, within forty-five days after the end of the quarter, for that calendar quarter. Each franchise fee payment shall be accompanied by a summary explaining the basis for the calculation of the state video service franchise fee. If the franchise fee is not paid when due, the holder shall be liable for and pay a late payment charge at a rate per year equal to the highest prime lending rate during the period of delinquency, plus one percent.
(d) Not more than once annually, the city may examine the business records of a holder of a state video service franchise to the extent reasonably necessary to ensure full compensation of the franchise fee due the city. The holder shall keep all business records reflecting any gross revenues for at least four years after those revenues are recognized by the holder on its books and records. (Ord. 927 § 1 (part), 2007)
14.10.030 Minimum customer protection and service standards.
Any holder of a state video service franchise shall, at a minimum, comply with all applicable state and federal customer service and protection standards pertaining to the provision of video service. (Ord. 927 § 1 (part), 2007)
14.10.040 Customer service standards violations and penalties.
(a) The city shall provide a holder of a state video franchise written notice of any material breach of applicable customer service and protection standards, and shall allow the franchise holder at least thirty calendar days from the receipt of the notice to remedy the specified material breach. A material breach that is not remedied by the state video franchise holder within the remedy period shall subject the state video franchise holder to the following penalties to be imposed by the city:
(1) For the first occurrence of a material breach, a penalty of not more than five hundred dollars for each day of each material breach, not to exceed one thousand five hundred dollars for each occurrence of a material breach.
(2) For the second violation of the same nature within twelve months, a penalty of one thousand dollars for each day of each material breach, not to exceed three thousand dollars for each occurrence of the material breach.
(3) For a third or further violation of the same nature within twelve months, a penalty of two thousand five hundred dollars for each day of each material breach, not to exceed seven thousand five hundred dollars for each occurrence of the material breach.
(b) Any notice and any penalty may be issued or imposed by the city’s director of administrative services. Any notice shall be in writing. Notices shall be transmitted by United States Postal Service certified or registered mail, return receipt requested and postage prepaid, or by private commercial delivery or courier service for same day or next business day delivery with delivery and receipt signature required.
(c) The state video service franchise holder may appeal any finding of material breach or imposition of penalties to the city manager. Any appeal must be made within thirty calendar days of receipt by the state video service franchise holder of the finding of material breach or the imposition of penalties, and must be submitted in writing to the city manager’s office. Any appeal must contain a detailed explanation of why the applicant believes that the finding of material breach or the imposition of penalties was inconsistent with statutory requirements. The decision of the city manager shall be final.
(d) The city and any state video service franchise holder may mutually agree to extend the time periods specified herein. Any such agreement shall be in writing and executed by the city manager, or the city manager’s designee, and an authorized representative of the state video franchise holder.
(e) Any penalty imposed on the state video franchise holder shall be paid to the city. As provided for in Section 5900(g) of the CPUC, the city shall submit one-half of all penalties received from a state video franchise holder to the Digital Divide Account established in Section 280.5 of the CPUC. (Ord. 927 § 1 (part), 2007)
14.10.050 Encroachment permits.
(a) Prior to installing, constructing or maintaining a network, or any part thereof, within the city’s public rights-of-way, a holder of a state video service franchise shall obtain an encroachment permit from the city’s director of public works (the “director”).
(b) The director shall either approve or deny an application from a state video service franchise holder for an encroachment permit within sixty days of receiving a completed application.
(c) An “encroachment permit” means any permit issued by the city relating to installation, construction or operation of facilities in the city’s public rights-of-way relating to the provision of video service under a state video service franchise.
(d) An application for an encroachment permit is considered complete when the applicant has complied with all statutory requirements, including the California Environmental Quality Act (CEQA) of the Public Resources Code.
(e) The director’s denial of an application for an encroachment permit shall be in writing and shall contain a detailed explanation of the reason for the denial.
(f) An applicant whose application for an encroachment permit has been denied may appeal the denial to the city manager. Any appeal must be made within thirty calendar days of date of the denial letter, and must be submitted in writing to the city manager’s office. The city manager’s decision shall be in writing, and if denied, may be appealed to the city council within thirty days from the date of the city manager’s denial. Such appeal shall be submitted in writing to the city clerk. All appeals must contain a detailed explanation of why the applicant believes that the denial was inconsistent with statutory requirements. (Ord. 927 § 1 (part), 2007)