Chapter 4.06
STATE VIDEO SERVICE FRANCHISES
Sections:
4.06.030 Compliance with chapter.
4.06.050 State franchise fees.
4.06.100 Lease of city-owned network.
4.06.110 Customer service and consumer protection standards.
4.06.120 Penalties for violations of standards.
4.06.130 Construction in the public way.
4.06.150 Participation with other utilities.
4.06.160 Underground services alert.
4.06.170 Emergency alert systems.
4.06.180 Interconnection for PEG programming.
4.06.010 Purpose.
This chapter is applicable to all video service providers who are eligible for, and have been awarded, a state video franchise under the California Public Utilities Code Section 5800 and following (the Digital Infrastructure and Video Competition Act of 2006) to provide cable or video services in any portion of the city. [Ord. 2018-193 § 3].
4.06.020 Rights reserved.
The rights reserved to the city under this chapter are in addition to all other rights of the city, whether reserved by this chapter or authorized by other applicable law, and no action, proceeding or exercise of a right shall affect any other rights which may be held by the city. [Ord. 2018-193 § 3].
4.06.030 Compliance with chapter.
Nothing contained in this chapter exempts a state franchise holder from compliance with all ordinances, rules or regulations of the city now in effect, or which may be hereafter adopted, which are not inconsistent with this chapter or California Public Utilities Code Section 5800 and following, or obligations under any franchise previously issued by the city, insofar as those may be enforced under California Public Utilities Code Section 5800. [Ord. 2018-193 § 3].
4.06.040 Definitions.
For purposes of this chapter, the following terms, phrases, words and their derivations shall have the meaning given herein. Unless otherwise expressly stated, words not defined in this chapter or AVMC 1.02.010 (Definitions), including but not limited to “gross revenue,” “cable service,” “video service provider” and “video service,” shall be given the meaning as set forth in the Digital Infrastructure and Video Competition Act of 2006, California Public Utilities Code Section 5800 and following, as amended from time to time.
“Applicable law” means all lawfully enacted and applicable federal, state and city laws, ordinances, codes, rules, regulations and orders as the same may be amended or adopted from time to time.
“Applicant” means any person submitting any application required under the California Public Utilities Code Section 5800 and following.
“City manager” means the city manager of the city or his or her duly authorized designee.
“Construction” and similar formulations of that term mean the named actions interpreted broadly, encompassing, among other things, installation, extension, maintenance, replacement of components, relocation, undergrounding, grading, site preparation, adjusting, testing, make-ready, excavation and tree trimming.
“Director of financial services” means the director of financial services or his or her designee.
“Director of public works” means the director of public works or his or her designee.
“DIVCA” means the Digital Infrastructure and Video Competition Act of 2006, California Public Utilities Code Section 5800 and following, as may be amended from time to time.
“Material breach” means any substantial and repeated failure of a video service provider to comply with service quality and other standards as defined in California Public Utilities Code Section 5900.
“May” is permissive.
“PEG” means public, educational, or governmental access.
“Shall” is mandatory.
“State franchise” means a franchise issued by the California Public Utilities Commission to provide cable service or video service, as those terms are defined in DIVCA, within any portion of the city.
“State franchise holder” means a person who holds a state franchise.
“Subscriber” means the city or any person who legally receives any cable service or video service from a state franchise holder delivered over that state franchise holder’s network. [Ord. 2018-193 § 3].
4.06.050 State franchise fees.
A. Any state franchise holder operating within the city shall pay to the city a state franchise fee equal to five percent of the gross revenues of it, or any affiliate, that is subject to a franchise fee under California Public Utilities Code Section 5860.
B. The city manager shall promptly send any state franchise holder that notifies the city that it intends to provide video service in the city a copy of the ordinance codified in this chapter and a notice designating the person to whom the state franchise fee payments should be made. [Ord. 2018-193 § 3].
4.06.060 PEG fees.
A. Effective April 1, 2018, as permitted by Section 5870(n) of the California Public Utilities Code, every state franchise holder operating within the boundaries of the city shall pay a PEG fee in the amount of one percent of the state franchise holder’s gross revenues to be used to support PEG facilities consistent with law.
B. To the extent reauthorization is required by law, this chapter, including the PEG fee in the amount of one percent of gross revenues, is reauthorized, which reauthorization shall be effective for so long as such reauthorization is required by law, upon the expiration of a state franchise as to each affected state video franchise holder. [Ord. 2018-193 § 3].
4.06.070 Payment of fees.
The state franchise fee required pursuant to AVMC 4.06.050, and the PEG fee required pursuant to AVMC 4.06.060, shall each be paid to the city quarterly, in a manner consistent with California Public Utilities Code Section 5860. The state franchise holder shall deliver to the city, by check or other means specified by the city, a payment for the state franchise fee and a separate payment for the PEG fee not later than 30 days after the end of each calendar quarter. Each payment made shall be accompanied by a summary explaining the basis for the state franchise fees, containing such information as the director of financial services may require consistent with DIVCA. [Ord. 2018-193 § 3].
4.06.080 Audits.
The city may audit the business records of the holder of a state franchise in a manner consistent with California Public Utilities Code Section 5860(i). [Ord. 2018-193 § 3].
4.06.090 Late payments.
In the event a state franchise holder fails to make payments required by this chapter on or before the due dates specified in this chapter, the city shall impose a late charge at the rate per year equal to the highest prime lending rate during the period of delinquency, plus one percent. [Ord. 2018-193 § 3].
4.06.100 Lease of city-owned network.
In the event a state franchise holder leases access to a network owned by the city, the city may set a franchise fee for access to the city-owned network separate and apart from the franchise fee charged to state franchise holders pursuant to AVMC 4.06.050, which fee shall otherwise be payable in accordance with the procedures established by this chapter. [Ord. 2018-193 § 3].
4.06.110 Customer service and consumer protection standards.
Each state franchise holder shall comply with all applicable customer service and consumer protection standards to the extent consistent with California Public Utilities Code Section 5900, including, but not limited to, all existing and subsequently enacted customer service and consumer protection standards established by state and federal law and regulation pertaining to the provision of video service. [Ord. 2018-193 § 3].
4.06.120 Penalties for violations of standards.
A. The city shall enforce the provisions of AVMC 4.06.110.
B. The city shall give the video service provider written notice of any alleged material breach of the customer service standards and allow the video provider at least 30 days from receipt of the notice to remedy the specified material breach.
C. For material breaches, as defined in California Public Utilities Code Section 5900, by a state franchise holder of applicable customer service and consumer protection standards, the city may impose the following penalties:
1. For the first occurrence of a material breach, a fine of $500.00 may be imposed for each day the violation remains in effect, not to exceed $1,500 for each violation.
2. For a second material breach of the same nature within 12 months, a fine of $1,000 may be imposed for each day the violation remains in effect, not to exceed $3,000 for each violation.
3. For a third material breach of the same nature within 12 months, a fine of $2,500 may be imposed for each day the violation remains in effect, not to exceed $7,500 for each violation.
D. Any penalties imposed by the city shall be imposed in a manner consistent with California Public Utilities Code Section 5900.
E. The city manager is authorized to provide any notices required under California Public Utilities Code Section 5900. The city manager may coordinate with the Office of Ratepayer Advocates to protect consumers in the city.
F. A state video franchise holder may appeal a penalty assessed by the city manager to the city council within 60 days of the initial assessment. [Ord. 2018-193 § 3].
Cross-references: violations and penalties generally, Chapter 1.06 AVMC; appeal procedures generally, Chapter 1.10 AVMC.
4.06.130 Construction in the public way.
Except as expressly provided in this chapter, the provisions of AVMC Title 10 (Streets and Sidewalks), and all city administrative rules and regulations developed pursuant to AVMC Title 10, as now existing or as hereafter amended, shall apply to all work performed by or on behalf of a state franchise holder in any public way. [Ord. 2018-193 § 3].
4.06.140 Permits.
A. Prior to commencing any work for which a permit is required by AVMC Title 10, a state franchise holder shall apply for and obtain a permit in accordance with the provisions of AVMC Title 10. A permit application is complete when the state franchise holder has complied with all applicable laws and regulations, including but not limited to all city administrative rules and regulations, and all applicable requirements of Division 13 of the California Public Resources Code, Section 21000 and following (the California Environmental Quality Act) and preparation of plans and specifications as required by the director of public works.
B. The director of public works shall, in the exercise of reasonable discretion as permitted by state law, either approve or deny a state franchise holder’s application for any permit required under AVMC Title 10 within 60 days of receiving a complete permit application from the state franchise holder.
C. If the director of public works denies a state franchise holder’s application for a permit, the director shall, at the time of notifying the applicant of denial, furnish to the applicant a detailed explanation of the reason or reasons for the denial.
D. A state franchise holder that has been denied a permit by final decision of the director of public works may appeal to the city council by filing a written notice of appeal with the city no later than 10 days from the date of the director’s decision. The written notice of appeal shall be filed in duplicate with the city clerk and shall state the grounds for such appeal and the specific factual and/or legal errors committed by the director. The city clerk shall forthwith transmit one copy of the notice of appeal to the council. The director shall transmit to the council all maps, diagrams, records, papers, and files that constitute the record in the action from which the appeal was taken. The city council may, by resolution, affirm, reverse or modify, in whole or in part, the director’s denial decision, after it has held a hearing thereon, which it may continue for any reason it deems proper and reasonable. All decisions of the director shall be final unless appealed within the time period prescribed.
E. The issuance of a permit under AVMC Title 10 is not a franchise, and does not grant any vested rights in any location in the public way, or in any particular manner of placement within the public way. A permit to place cabinets and similar appurtenances aboveground may be revoked and the permittee required to place facilities underground upon reasonable notice to the permittee. [Ord. 2018-193 § 3].
4.06.150 Participation with other utilities.
Each state franchise holder shall cooperate in the planning, locating and construction of its network in utility joint trenches or common duct banks with other telecommunications providers. [Ord. 2018-193 § 3].
4.06.160 Underground services alert.
Each state franchise holder shall be a member of the regional notification center for subsurface installations (underground services alert) and shall field mark, at its sole cost and expense, the locations of its underground network facilities upon notification in accordance with the requirements of Section 4216 of the California Government Code and any other applicable law. [Ord. 2018-193 § 3].
4.06.170 Emergency alert systems.
Each state franchise holder shall comply with the emergency alert system requirements of the Federal Communications Commission in order that emergency messages may be distributed over the state franchise holder’s network. [Ord. 2018-193 § 3].
4.06.180 Interconnection for PEG programming.
Each state franchise holder, and each incumbent cable operator, shall negotiate in good faith to interconnect their networks for the purpose of providing PEG programming. Interconnection may be accomplished by any means authorized under Public Utilities Code Section 5870(h). Each state franchise holder and incumbent cable operator shall provide interconnection of PEG channels on reasonable terms and conditions and may not withhold the interconnection. If a state franchise holder and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement, the city may require the incumbent cable operator to allow the state franchise holder to interconnect its network with the incumbent cable operator’s network at a technically feasible point on the state franchise holder’s network as identified by the state franchise holder. If no technically feasible point for interconnection is available, each state franchise holder will make an interconnection available to each channel originator providing PEG programming to an incumbent cable operator, and will provide the facilities necessary for the interconnection. The cost of any interconnection will be borne by the state franchise holder requesting the interconnection unless otherwise agreed to by the state franchise holder and the incumbent cable operator. [Ord. 2018-193 § 3].
4.06.190 Notices.
A. Each state franchise holder or applicant for a state franchise shall file with the city a copy of all applications or notices that the state franchise holder or applicant is required to provide to the city under DIVCA.
B. Unless otherwise specified in this chapter, all notices or other documentation that a state franchise holder is required to provide to the city under this chapter or the California Public Utilities Code shall be provided to the city manager. [Ord. 2018-193 § 3].