Chapter 5.40
STATE VIDEO FRANCHISES

Sections:

5.40.010    Purpose and application.

5.40.020    State video franchise and PEG fees.

5.40.030    Audit authority.

5.40.040    Customer service penalties.

5.40.050    City response to state video franchise.

5.40.010 Purpose and application.

This chapter is designed to regulate video service providers holding state video franchises and operating within the city pursuant to that franchise. 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 Benicia 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 intends to exercise its authority 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. (Ord. 17-08 § 2).

5.40.020 State video franchise and PEG fees.

A. Any state video franchise holder operating within the boundaries of the city shall submit a fee to the city equal to five percent of the gross revenue of that state video franchise holder. “Gross revenue,” for the purposes of this chapter, shall have the definition set forth in California Public Utilities Code Section 5660.

B. Any state video franchise holder operating within the boundaries of the city shall submit a PEG fee to the city, or the city’s designee, for support of public, educational, and/or governmental (PEG) purposes that are consistent with state and federal law. The PEG fee shall be one percent of the gross revenue of that state video franchise holder. (Ord. 17-08 § 2).

5.40.030 Audit authority.

Not more than once annually, the city manager, or the city 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 BMC 5.40.020. (Ord. 17-08 § 2).

5.40.040 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 the city 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 city 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 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 up to $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 violation of the same nature within 12 months, a fine of up to $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 or further violation of the same nature within 12 months, a fine of up to $2,500 may be imposed for each day the violation remains in effect, not to exceed $7,500 for each violation.

C. A state video franchise holder may appeal a penalty assessed by the city administrator to the city council within 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. 17-08 § 2).

5.40.050 City response to state video franchise.

A. Applications. 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 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. 17-08 § 2).