Chapter 5.43
STATE VIDEO FRANCHISES
Sections:
5.43.030 State Video Franchise Fees.
5.43.050 Customer Service Penalties Under State Franchises.
5.43.060 City Response to State Franchise Applications.
5.43.010 Definitions.
A. For the purposes of this chapter, the following words, terms, phrases, and their derivations have the meanings given herein. Terms defined in the Digital Infrastructure and Video Competition Act of 2006 shall have the same meanings herein unless expressly defined otherwise. When not inconsistent with the context, words used in the present tense include the future tense, and words in the singular number include the plural number.
“Gross revenue” shall have the definition set forth in Section 5860 of the California Public Utilities Code.
“PEG” means Public, Educational and Government.
“PUC” means the California Public Utilities Commission.
“State franchisee(s)” means any holder of a State franchise.
“State franchise(s)” means a franchise that is issued pursuant to the Digital Infrastructure and Video Competition Act of 2006.
B. Words, terms, or phrases not defined herein shall first have the meaning as defined in Digital Infrastructure and Video Competition Act of 2006 and then special meanings or connotations used in any industry, business, trade, or profession where they commonly carry special meanings. If those special meanings are not common, they will have the standard definitions as set forth in commonly used and accepted dictionaries of the English language. (Ord. 2023-22 § 292, 2023; Ord. 2007-9 § 1 (part), 2007)
5.43.020 Purpose; Authority.
Effective January 1, 2007, the PUC has the authority to grant State Franchises to provide video service. Pursuant to the Digital Infrastructure and Video Competition Act of 2006, the City has been given certain rights and responsibilities with respect to State Franchisees. These include, but are not limited to, the receipt of a franchise fee and a fee for PEG purposes, both based on a percentage of the Gross Revenues of the State Franchisees, as well as the establishment and enforcement of penalties for violations of customer service rules. The purpose of this Chapter is to exercise the rights, responsibilities, and authority granted the City by the Digital Infrastructure and Video Competition Act of 2006. (Ord. 2007-9 § 1 (part), 2007)
5.43.030 State Video Franchise Fees.
A. Any State franchisee operating within the boundaries of the City of Newport Beach shall pay a fee to the City equal to five percent of the gross revenue of that State franchisee.
B. Any State franchisee operating within the boundaries of the City of Newport Beach shall pay an additional fee* to the City equal to one percent of the gross revenue of that State franchisee, which fee shall be used by the City for PEG purposes consistent with State and Federal law. (Ord. 2023-22 § 293, 2023; Ord. 2007-9 § 1 (part), 2007)
* Code reviser’s note: Ord. 2017-5, Section 1, provides, “The City’s PEG fee imposed in NBMC Section 5.43.030(B) is hereby reauthorized to the extent required by California Public Utilities Code Section 5870(n). All state franchisees operating within the City, including but not limited to the AT&T Franchise, the Cox Franchise, and the Time Warner Cable/Spectrum Franchise, shall continue to collect and remit the PEG fee as required in NBMC Section 5.43.030(B), which fee shall remain unchanged and in full effect as to all state franchisees. The City Council expressly intends for this ordinance to apply retroactively to the expiration and renewal of the AT&T Franchise and/or the Cox Franchise to the extent either or both such franchises expire prior to the effective date of this ordinance.”
5.43.040 Audit Authority.
Not more than once annually, the City may examine and perform an audit of the business records of a State Franchisee to ensure compliance with Section 5.43.030. (Ord. 2007-9 § 1 (part), 2007)
5.43.050 Customer Service Penalties Under State Franchises.
A. State Franchisee(s) shall comply with all applicable State and Federal customer service and protection standards pertaining to the provision of video service.
B. The City Manager shall monitor the compliance of State franchisee(s) with respect to State and Federal customer service and protection standards. The City Manager shall provide the State franchisee(s) written notice of any material breaches of applicable customer service standards, and shall allow the State franchisee(s) 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 shall be subject to the following penalties by the City Manager:
1. For the first occurrence of a violation, a fine of five hundred dollars ($500.00) shall be imposed for each day the violation remains in effect, not to exceed one thousand five hundred dollars ($1,500.00) for each violation.
2. For a second violation of the same nature within twelve (12) months, a fine of one thousand dollars ($1,000.00) shall be imposed for each day the violation remains in effect, not to exceed three thousand dollars ($3,000.00) for each violation.
C. A State franchisee may appeal a penalty assessed to the City Council within sixty (60) days. After relevant speakers are heard, and any necessary staff reports are submitted, the City Council will vote to either uphold or vacate the penalty. The City Council’s decision on the imposition of a penalty shall be final as to the City but subject to judicial review pursuant to California Code of Civil Procedure Section 1094.5. (Ord. 2023-22 § 294, 2023; Ord. 2007-9 § 1 (part), 2007)
5.43.060 City Response to State Franchise Applications.
A. Applicants for State Franchises within the boundaries of the City of Newport Beach must concurrently provide complete copies to the City of any application or amendments to applications filed with the PUC. One complete copy must be provided to the City Clerk, and one complete copy to the City Manager.
B. The City Manager shall provide any appropriate comments to the PUC regarding an application or an amendment to an application for a State Franchise. (Ord. 2007-9 § 1 (part), 2007)