CHAPTER 18A
VIDEO FRANCHISES
Sections:
18A.3 State video service franchise and PEG fees.
18A.5 Customer service standards—Enforcement.
18A.6 City response to state franchise application.
18A.1 Purpose and authority.
This chapter is designed to regulate video service providers holding state video franchises and operating within the city. Under state law effective January 1, 2007, the California Public Utilities Commission has the sole authority to grant state video service franchises pursuant to the Digital Infrastructure and Video Competition Act of 2006 (hereinafter “DIVCA”). Pursuant to DIVCA, the city will acquire certain rights and responsibilities with respect to state video service franchise holders operating within the city. These include the receipt of a franchise fee and a fee for public, educational and government purposes, both based on a percentage of the gross revenues of state franchise holders. Additionally, the city is responsible to establish and enforce penalties for violations of customer service rules. However, DIVCA grants all authority to adopt customer service standards to the state. The city will retain authority, without change, over all city cable franchisees until such time as they no longer hold a valid city cable franchise, or are no longer operating under a current or expired city cable franchise. (Ord. No. 2223, § 1, 2011.)
18A.2 Definitions.
For purposes of this chapter, the following words, terms, phrases, and abbreviations, and their similar formulations, shall have the meanings given below:
“Cable operator” shall have the meaning set forth in California Public Utilities Code section 5830.
“City” means the city of South Pasadena.
“City manager” means the duly appointed city manager of the city, or designee.
“CPUC” or “Commission” means the California Public Utilities Commission.
“DIVCA” or “Act” means the Digital Infrastructure and Video Competition Act of 2006.
“Gross revenue” shall have the meaning set forth in California Public Utilities Code section 5860.
“PEG” means public, educational and government access.
“State franchise” means a franchise issued by the CPUC pursuant to the DIVCA.
“State franchisee” means any cable operator or video service provider that, pursuant to DIVCA, has been granted a state franchise by the CPUC to provide cable or video service by means of communications service equipment or facilities and whose video service area includes all or any part of the incorporated limits of the city.
“Video service” shall have the meaning set forth in California Public Utilities Code section 5830.
“Video service provider” shall have the meaning set forth in California Public Utilities Code section 5830. (Ord. No. 2223, § 1, 2011.)
18A.3 State video service franchise and PEG fees.*
(a) Any state franchisee operating within the boundaries of the city 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 shall pay an additional fee to the city in an amount not to exceed one percent of the gross revenue of that state franchisee, which shall be used by the city for PEG purposes consistent with state and federal law. The amount of said additional fee shall be set by city council resolution. (Ord. No. 2223, § 1, 2011.)
* Code reviser’s note: Ord. No. 2323 reauthorizes the fee on state-franchised video service providers to support public, educational, and governmental channel facilities. The fee shall remain unchanged and in full effect as to all state-franchised video service providers.
18A.4 Audit authority.
Not more than once annually, the city manager may examine and perform an audit of the business records of a state franchise holder to ensure compliance with section 18A.3. (Ord. No. 2223, § 1, 2011.)
18A.5 Customer service standards—Enforcement.
(a) A state franchisee 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 compliance of each state franchisee with respect to state and federal customer service and protection standards. The city manager shall provide the state franchisee written notice of any material breach of applicable customer service standards, and allow the state franchisee holder thirty days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the thirty day time period will be subject to the following penalties to be imposed by and payable to the city:
(1) For the first occurrence of a violation, a fine of five hundred dollars may be imposed for each day the violation remains in effect, not to exceed one thousand five hundred dollars for each violation.
(2) For a second violation of the same nature within twelve months, a fine of one thousand dollars may be imposed for each day the violation remains in effect, not to exceed three thousand dollars for each violation.
(3) For a third or further violation of the same nature within twelve months, a fine of two thousand five hundred dollars may be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars for each violation.
(c) A state franchisee may appeal a penalty assessed by the city manager to the city council within thirty days of the initial assessment. Any appeal must contain a detailed explanation of why the applicant believes that the finding of material breach or the imposition of penalties was inconsistent with statutory requirements or authority. The city council shall hear all evidence and relevant testimony and may uphold, modify, and vacate the penalty.
(d) As provided in section 5900 of the California Public Utilities Code, the city shall submit half of all penalties received from a franchise holder to the Digital Divide Account established in section 280.5 of the California Public Utilities Code. (Ord. No. 2223, § 1, 2011.)
18A.6 City response to state franchise application.
(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 CPUC. One complete copy must be provided to the city clerk, and a second complete copy to the city manager.
(b) Within thirty days of receipt, the city manager will provide any appropriate comments to the CPUC regarding an application or amendment to an application for a state video service franchise. (Ord. No. 2223, § 1, 2011.)