A. It is the purpose and intention of this chapter to exercise the city’s rights and responsibilities to the fullest extent possible pursuant to DIVCA with respect to state video franchise holders. The provisions of this chapter are to be construed in a manner that is consistent with the California Public Utilities Code and the applicable rules of the Public Utilities Commission promulgated thereunder.

B. The city reserves the right to construct, operate, maintain and repair its own cable system or video service provider network. (Ord. 5593 § 2, 2008)

For the purposes of this chapter, the following words shall have the meanings as set forth herein. Words not defined in this chapter shall have the same meaning as established in (1) the California Public Utilities Code, and, if not defined therein, (2) the commission rules and regulations implementing the California Public Utilities Code, and, if not defined therein (3) Title VI of Title 47 of the United States Code, and, if not defined therein, (4) their common and ordinary meaning.

A. “CPUC” means the California Public Utilities Commission.

B. “DIVCA” means The Digital Infrastructure and Video Competition Act of 2006, Assembly Bill 2987 (Ch. 700, Stats. 2006), codified at Public Utilities Code Sections 5800, et seq., and the rules and regulations of the California Public Utilities Commission promulgated thereto, as amended.

C. “Gross revenue” means the definition as set forth in California Public Utilities Code Section 5860(d), as amended.

D. “Material breach” means any substantial and repeated failure of a video service provider to comply with service quality and other standards as specified in this chapter.

E. “PEG” means public, educational and governmental access channels.

F. “PEG access fee” means a fee designated for the support of PEG facilities.

G. “State video franchise” means a video franchise that is issued pursuant to DIVCA.

H. “State video franchise holders” means any cable operator or video service provider that, pursuant to the California Public Utilities Code, has been granted by the CPUC a state video franchise 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. (Ord. 5593 § 3, 2008: prior code § 9-75)

A. Except as otherwise provided by law, a state video franchise shall not relieve a state video franchise holder of its duty to comply with all laws, including the ordinances, resolutions, rules, regulations, and other laws of the city, and every state video franchise holder shall comply with the same. (Ord. 5593 § 4, 2008: prior code § 9-80)

A. The city manager is hereby authorized to administer this chapter and to provide or cause to be provided any notices (including noncompliance notices) and to take any action on behalf of the city that may be required under this chapter, the California Public Utilities Code, or under applicable law.

B. The failure of the city, upon one (1) or more occasions, to exercise a right or to require compliance or performance under this chapter or any other applicable law shall not be deemed to constitute a waiver of such right or a waiver of compliance or performance, unless such right has been specifically waived in writing or its exercise by the city is not permitted by the California Public Utilities Code.

C. The city may designate one (1) or more entities, including itself, to control and manage the use of PEG access channels, and any PEG facilities and equipment (in addition to any other communications service equipment or facilities) owned, controlled or used by the city or the designated entity or entities. (Ord. 5593 § 5, 2008: prior code §§ 9-85—9-87, 9-90)

A. Every state video franchise holder operating within the jurisdictional boundaries of the city shall calculate and remit to the city the following fees:

1. A franchise fee equal to five (5) percent of that state franchise holder’s gross revenues;

2. A PEG access fee equal to two (2) percent of the gross revenues of that state video franchise holder which fee shall be used by the city for PEG purposes.

B. Franchise fees and PEG access fees shall be remitted to the city on a quarterly basis within forty-five (45) days after the end of each calendar quarter. Each payment shall be accompanied by a detailed summary explaining the basis for the calculation of the fees. A late payment charge equal to the highest prime lending rate during the period of delinquency plus one (1) percent will be applied to any payment due by a state video franchise holder when said fees are not received or underpaid. (Ord. 5593 § 6, 2008: prior code § 9-95)

A. State video franchise holders shall comply with all applicable state and federal customer service and consumer protection standards pertaining to the provision of video services, including any such standards hereafter adopted. In case of a conflict, the stricter standard shall apply.

B. The city manager shall monitor the compliance of state video franchise holders with respect to state and federal customer service and protection standards. The city manager shall also provide state video franchise holders with written notice of any material breaches of applicable customer service standards, and shall allow said state video franchise holders at least thirty (30) days from the receipt of said written notice to remedy the specified material breach. Material breaches not remedied within said thirty (30) day time period shall be subject to the following penalties imposed by the city manager irrespective of the number of customers or subscribers affected.

1. For a first material breach, 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 material breach of the same nature occurring within twelve (12) months, and the city has provided notice and a fine or penalty has been assessed, a fine of one thousand dollars ($1,000.00) shall be imposed for each day the material breach remains in effect, not to exceed three thousand dollars ($3,000.00) for each material breach.

3. For a third or further material breach of the same nature occurring within those same twelve (12) months, and the city has provided notice and a fine or penalty has been assessed, the penalties may be increased to a maximum of two thousand five hundred dollars ($2,500.00) for each day of each material breach not to exceed seven thousand five hundred dollars ($7,500.00) for each material breach.

C. Any interested person may appeal a penalty assessed by the city manager to the council according to the uniform appeal procedure set forth in Chapter 2.88 of this code. The council shall hear all evidence and relevant testimony and may uphold, modify or vacate the penalty. The council’s decision on the imposition of a penalty shall be final. (Ord. 5593 § 7, 2008: prior code § 9-100)

Not more than once annually, the appropriate city department may examine the business records of a state video franchise holder to ensure compliance with all applicable statutes and regulations related to the computation and payment of franchise fees and PEG access fees. (Ord. 5593 § 8, 2008)

A. Applicants for state video franchises for operations within the boundaries of the city must concurrently provide complete copies to the city of any application or amendments to state video franchises filed with the CPUC. One (1) complete copy must be provided to both the city clerk and the city manager.

B. The city manager shall provide any appropriate comments to the CPUC regarding an application or an amendment to a state franchise. (Ord. 5593 § 9, 2008)