Chapter 5.08
STATE VIDEO FRANCHISES
Sections:
5.08.040 PEG channels and PEG channel fees.
5.08.050 Customer service and consumer protection.
5.08.060 Penalty schedule for customer service and consumer protection violations.
5.08.070 Business records examination.
5.08.010 Purpose.
This chapter is designed to regulate video service providers, holding state video franchises, operating within the city. Beginning January 1, 2007, the state of California, through the California Public Utilities Commission (“CPUC”), has the sole authority to issue state video franchises pursuant to the Digital Infrastructure and Video Competition Act of 2006. (Ord. 18-03 § 1, 2018)
5.08.020 Definitions.
For the purpose of this chapter, the following terms, phrases, words and their derivations shall have the meaning given herein. Words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. Words not defined shall be given their common and ordinary meaning.
A. “DIVCA” means the Digital Infrastructure and Video Competition Act of 2006 codified at California Public Utilities Code Section 5800 et seq.
B. “City” means the city of Hughson.
C. “Franchise fee” is defined as set forth in the Public Utilities Code Section 5830, or its successor.
D. “Gross revenues” is defined as set forth in the Public Utilities Code Section 5860, or its successor.
E. “Holder” is defined as set forth in the Public Utilities Code Section 5830, or its successor.
F. “Material breach” is defined as set forth in the Public Utilities Code Section 5900, or its successor.
G. “State franchise” is defined as set forth in the Public Utilities Code Section 5830, or its successor.
H. “Video service” is defined as set forth in the Public Utilities Code Section 5830, or its successor.
I. “Video service provider” is defined as set forth in the Public Utilities Code Section 5830, or its successor. (Ord. 18-03 § 1, 2018)
5.08.030 Franchise fees.
A. Pursuant to the Digital Infrastructure and Video Competition Act of 2006 (“DIVCA”), the city shall receive a franchise fee from all state video franchise holders operating within the city. State video franchise holder shall pay the city a franchise fee equal to five percent of the holder’s gross revenues.
B. The franchise fee shall be paid to the city on a quarterly basis, within 45 days after the end of each calendar quarter. Each payment shall be accompanied by a summary detailing the basis of the holder’s calculation.
C. Failure to pay the required franchise fee shall result in a late payment charge at a rate per year equal to the highest prime lending rate, during the delinquency period, plus one percent. (Ord. 18-03 § 1, 2018)
5.08.040 PEG channels and PEG channel fees.
A. State video franchise holders shall provide, at a minimum, three public, educational, and government (“PEG”) channels. The PEG channels shall be exclusively used by the city, or its designee, to provide public, educational, and governmental channels.
B. Any PEG channel that is not utilized by the city for at least eight hours per day, as measured on a quarterly basis, may no longer be made available to the city, and may be programmed at the state video franchise holder’s discretion. At the time the city can certify to the state video franchise holder a schedule for at least eight hours of daily programming, the holder of the state franchise shall restore the PEG channels for use by the city.
C. The city shall determine the content to be provided over the PEG channels; the state video franchise holder is only responsible for the transmission of the city’s requested content.
D. The PEG channels shall be receivable by all subscribers without the need for any equipment other than the equipment necessary to receive the lowest cost tier of service.
E. The state video franchise holder shall pay to the city a PEG channel fee equal to one percent of the state video franchise holder’s gross revenues. Such fee shall only be used by the city as authorized under federal law.
F. The PEG channel fee shall be paid to the city on a quarterly basis, within 45 days after the end of each calendar quarter. (Ord. 18-03 § 1, 2018)
5.08.050 Customer service and consumer protection.
State video franchise holders shall comply with all state and federal customer service and protection standards pertaining to video service. The city shall enforce all of the customer service and protection standards with respect to complaints received from its residents. (Ord. 18-03 § 1, 2018)
5.08.060 Penalty schedule for customer service and consumer protection violations.
The following penalties shall be applied to state video franchise holders in material breach of customer service or protection standards.
A. The city shall give the video service provider written notice of any alleged material breach of the customer services standard. Any written notice may be personally delivered, mailed by prepaid, certified mail or overnight courier, or transmitted by facsimile or electronic mail transmission (including PDF). The video service provider shall have 30 days from receipt of the notice to remedy the specified material breach. Notice shall be deemed to have been given on the day the notice is personally delivered, three days after the notice is mailed by prepaid certified or registered mail, one working day after the notice is sent by overnight courier, or the day the notice is faxed or sent electronically.
B. First Violation. Video service provider shall be responsible for a monetary penalty, which shall be remitted to the city, in the amount of $500.00 for each day of each material breach, not to exceed $1,500 for each occurrence of a material breach, or the maximum amount allowable under DIVCA.
C. Second Violation. If a material breach has occurred and the city has provided notice and a fine or penalty has been assessed, and if a subsequent material breach of the same nature occurs within 12 months, the video service provider shall be responsible for a monetary penalty, which shall be remitted to the city, in the amount of $1,000 for each day of each material breach, not to exceed $3,000 for each occurrence of the material breach, or the maximum amount allowable under DIVCA.
D. Third and Additional Violations. If a third or further material breach of the same nature occurs within 12 months of first or second violation, and the city has provided notice and a fine or penalty has been assessed, the video service provider shall be responsible for a monetary penalty, which shall be remitted to the city, in the amount of $2,500 for each day of each material breach, not to exceed $7,500 for each occurrence of the material breach, or the maximum amount allowable under DIVCA. (Ord. 18-03 § 1, 2018)
5.08.070 Business records examination.
The city may examine, once per year, the business records of any state video franchise holder in order to verify the holder’s gross revenues. State video franchise holders shall retain all business records reflecting any gross revenues for at least four years. In the event that it is determined that the state video franchise holder has underpaid its required franchise fees by more than five percent during the examination period, the holder shall pay the reasonable and actual costs of the examination. Conversely, if the examination discloses that the holder has not underpaid franchise fees, the city shall bear the reasonable and actual costs of the examination. (Ord. 18-03 § 1, 2018)