Chapter 52.44
Video Franchises
Sections:
52.44.010 Regulation of State video franchises and City video franchises.
52.44.020 State video franchise and PEG fees.
52.44.040 Customer service penalties.
52.44.050 City response to State video franchise applications.
52.44.060 Extension of existing City video franchises.
52.44.010 Regulation of State video franchises and City video franchises.
Under State law effective January 1, 2007, the California Public Utilities Commission (CPUC) has the authority to grant State video franchises. The City will acquire certain rights and responsibilities with respect to State video franchise holders. These include the receipt of a franchise fee and a fee for public, educational and government (PEG) purposes, both based on a percentage of the gross revenues of State franchise holders, as well as the establishment and enforcement of penalties for violations of customer service rules. The City will retain authority, without change, over all City video franchisees until such time as they no longer hold a valid City franchise, or are no longer operating under a current or expired City franchise. The City may continue to grant, modify, renew, extend or terminate City franchises for video service until January 1, 2008. After January 1, 2008, the City may not grant new franchises, but may modify, renew, extend or terminate existing City franchises. For purposes of this chapter, the terms “City video franchise” and “City video franchisee” shall have the same meaning as the terms “City cable franchise” and “City cable franchisee.” (Ord. 1990 § 1, 2008)
52.44.020 State video franchise and PEG fees.
A. For any State video franchise holder operating within the boundaries of the City, there shall be a fee paid to the City equal to five percent of the gross revenue of that State video franchise holder.
B. For any State video franchise holder operating within the boundaries of the City, there shall be an additional fee paid to the City equal to one percent of the gross revenue of that State video franchise holder, which shall be imposed under the terms and conditions set forth in the Act. This fee shall be used by the City for PEG purposes consistent with State and Federal law.
C. “Gross revenue,” for the purposes of subsections A and B of this section, shall have the definition set forth in California Public Utilities Code Section 5860, as amended from time to time.
D. The City’s PEG fee as set forth in this section shall automatically be reauthorized in compliance with California Public Utilities Code Section 5870(n) upon the expiration of any existing or future State video franchise(s) held by any State franchised video services provider operating within the City, until such time as the City Council takes affirmative action to cease the renewals. (Ord. 2079 § 3, 2018; Ord. 1990 § 1, 2008)
52.44.030 Audit authority.
Not more than once annually, the City Manager or his or her designee may examine and perform an audit of the business records of a holder of a State video franchise to ensure compliance with CMC 52.44.020. (Ord. 1990 § 1, 2008)
52.44.040 Customer service penalties.
A. The holder of a State video franchise shall comply with all applicable State and Federal customer service and protection standards pertaining to the provision of video service.
B. The City Manager or his or her designee shall monitor the compliance of State video franchise holders with respect to State and Federal customer service and protection standards. The City Manager or his or her designee will provide the State video franchise holder written notice of any material breaches of applicable customer service and protection standards, and will allow the State video franchise holder 30 days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the 30-day time period will be subject to the following penalties to be imposed by the City:
1. For the first occurrence of a violation, a fine of $500.00 shall be imposed for each day the violation remains in effect, not to exceed $1,500 for each occurrence of the violation.
2. For a second occurrence of a violation of the same nature within 12 months, a fine of $1,000 shall be imposed for each day the violation remains in effect, not to exceed $3,000 for each occurrence of the violation.
3. For a third or further occurrence of a violation of the same nature within 12 months, a fine of $2,500 shall be imposed for each day the violation remains in effect, not to exceed $7,500 for each occurrence of the violation.
C. A State video franchise holder may appeal a penalty assessed by the City Manager or his or her designee to the City Council within 60 days of the initial assessment. After relevant speakers are heard, and any necessary staff reports are submitted, City Council will vote to uphold, modify, or vacate the penalty. The City Council’s decision on the imposition of a penalty shall be final. (Ord. 1990 § 1, 2008)
52.44.050 City response to State video franchise applications.
A. Applicants for State video franchises within the boundaries of the City must concurrently provide complete copies to the City of any application or amendments to applications filed with the CPUC. One complete copy must be provided to the City Clerk, and one complete copy to the City Manager.
B. Within 30 days of receipt, the City Manager will provide any appropriate comments to the CPUC regarding an application or an amendment to an application for a State video franchise. (Ord. 1990 § 1, 2008)
52.44.060 Extension of existing City video franchises.
Any entity providing video service under an expired City video franchise on January 1, 2007, shall hereby have the terms of its City video franchise extended on the same terms and conditions until January 2, 2008. The extension of a City video franchise does not preclude the City from further modifications, renewals, extensions or termination of that City video franchise. (Ord. 1990 § 1, 2008)