Chapter 4.22
STATE VIDEO FRANCHISES

Sections:

4.22.010    Purpose and Application.

4.22.020    State Video Franchise and PEG Fees.

4.22.030    Audit Authority.

4.22.040    Customer Service Penalties Under State Video Franchises.

4.22.050    City Response to State Video Franchise Applications.

4.22.010 Purpose and Application.

This chapter is designed to regulate video service providers holding State video franchises and operating within the City.

On January 1, 2007, the State of California became the sole authority with power to grant State video franchises pursuant to the Digital Infrastructure and Video Competition Act of 2006 (“DIVCA”). Pursuant to DIVCA, the City of Santa Clarita shall receive a franchise fee and a fee for public, educational and/or government (PEG) purposes from all State video franchise holders operating within the City. Additionally, the City acquired the responsibility to establish and enforce penalties, consistent with State law, against all State video franchise holders operating within the City for violations of customer service standards. DIVCA precludes the City from adopting its own standards and grants all authority to adopt customer service standards to the State. DIVCA leaves unchanged the City’s authority to regulate the City’s existing cable franchises until the expiration of any such franchises. (Ord. 07-8 § 2, 11/13/07)

4.22.020 State Video Franchise and PEG Fees.

A.    Any State video franchise holder operating within the boundaries of the City shall pay a fee to the City equal to five percent (5%) of the gross revenue of that State video franchise holder.

B.    Any State video franchise holder operating within the boundaries of the City shall also pay the City a fee equal to one percent (1%) of the gross revenue of that State video franchise holder, which fee shall be used by the City for any public, educational, and/or governmental (PEG) purposes consistent with State and Federal law.

C.    In addition, any State franchisee that has held a locally issued franchise agreement shall, consistent with Public Utilities Code Section 5870, continue to fully provide and support PEG channel facilities and institutional networks and to provide cable services to community buildings to the maximum extent permitted by law.

D.    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. (Ord. 07-8 § 2, 11/13/07; Ord. 17-5 § 1, 3/28/17)

4.22.030 Audit Authority.

Not more than once annually, the City Manager or the Manager’s designee may examine and perform an audit of the business records of a holder of a State video franchise to ensure compliance with Section 4.22.020. (Ord. 07-8 § 2, 11/13/07)

4.22.040 Customer Service Penalties Under State Video Franchises.

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 the Manager’s 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 the Manager’s designee will provide the State video franchise holder written notice of any material breaches of applicable customer service standards, and will allow the State video franchise holder thirty (30) days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the thirty (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 up to five hundred dollars ($500.00) may be imposed for each day the violation remains in effect, not to exceed one thousand five hundred dollars ($1,500) for each violation.

2.    For a second violation of the same nature within twelve (12) months, a fine of up to one thousand dollars ($1,000) may be imposed for each day the violation remains in effect, not to exceed three thousand dollars ($3,000) for each violation.

3.    For a third or further violation of the same nature within twelve (12) months, a fine of up to two thousand five hundred dollars ($2,500) may be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars ($7,500) for each violation.

C.    A State video franchise holder may appeal a penalty assessed by the City Manager to the City Council within sixty (60) days of the initial assessment. The City Council shall hear all evidence and relevant testimony and may uphold, modify or vacate the penalty. The City Council’s decision on the imposition of a penalty shall be final. (Ord. 07-8 § 2, 11/13/07)

4.22.050 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 California Public Utilities Commission (PUC). One complete copy must be provided to the City Manager.

B.    Within thirty (30) days of receipt, the City Manager will provide any appropriate comments to the PUC regarding an application or an amendment to an application for a State video franchise. (Ord. 07-8 § 2, 11/13/07)