Chino Municipal Code Ch. 5.46 State Video Franchise Fees and Regulations

Notwithstanding any provision of this chapter to the contrary, nothing in this chapter shall be deemed to require any person or entity to obtain a franchise issued by the city, to the extent that such person or entity is authorized to provide cable service or video services under a cable franchise or video services franchise issued by another government entity under applicable law, including but not limited to Section 5800 et seq. of the California Public Utilities Code. The requirements and provisions of this chapter shall not apply or be enforced to the extent that they actually conflict with applicable state or federal law.

(Ord. 2016-017, § 1, 2016; Ord. 2016-018, § 1, 2016.)

This chapter is intended to regulate video service providers holding state video franchises and operating within the city of Chino. Since January 1, 2007, the state of California has had the sole authority to grant state video franchises pursuant to the Digital Infrastructure and Video Competition Act of 2006 ("Act"). Pursuant to the Act, the city of Chino shall receive a franchise fee and may receive a fee for public, educational and government ("PEG") purposes from all state video franchise holders operating within the city. The city also has the responsibility 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, but the Act grants all authority to adopt customer service standards to the state. The Act leaves unchanged the city's authority to regulate the city's current cable franchise in accordance with Chapter 5.44 of the Chino Municipal Code and the cable franchise currently in effect, until such time as the cable franchisee no longer holds a city franchise or is no longer operating under a current or expired city franchise.

(Ord. 2016-017, § 1, 2016; Ord. 2016-018, § 1, 2016.)

A. Any state video franchise holder operating within the boundaries of the city of Chino shall pay to the city a franchise fee equal to five percent of the gross revenue of that state video franchise holder, which shall be a continuation of the franchise fee set forth in Chapter 5.44 of the Chino Municipal Code but not in addition to that five percent holder.

B. Any state video franchise holder operating within the boundaries of the city of Chino shall pay to the city, in addition to the franchise fee, a fee equal to one percent of the gross revenue of that state video franchise holder, which fee shall be used by the city for public, educational, and government access purposes consistent with state and federal law. This fee obligation shall take effect upon the earlier of: (i) the fulfillment of all obligations to remit cash payments to the city for support of public, educational, and government access facilities which are contained within a city-issued cable franchise that was in effect on January 1, 2007, and which remained unsatisfied as of the effective date of this ordinance or (ii) the termination by the holder of a city-issued cable franchise of its franchise as provided under state law. The intent of this subsection is to authorize the city to obtain compliance of the requirements of subsections (1), (m), and (n) of Section 5870 of the Public Utilities Code by all cable or video providers including the adoption of implementing regulations by the city manager. It is also the intent of this subsection that the fee established by this subsection shall be the fee authorized by subsection (n) of Section 5870 of the Public Utilities Code.

C. For the purposes of this chapter, the term "gross revenue" shall have the definition set forth in California Public Utilities Code 5860.

(Ord. 2016-017, § 1, 2016; Ord. 2016-018, § 1, 2016.)

Not more than once annually, the city manager, or his or her designee, may examine and perform an audit of the business records of all holders of a state video franchise operating within the boundaries ofthe city of Chino to ensure compliance with this chapter.

(Ord. 2016-017, § 1, 2016; Ord. 2016-018, § 1, 2016.)

A. The holder of a state franchise shall comply with the provisions of Sections 53055, 53055.1, 53055.2, and 53088.2 of the Government Code, and any other customer service standards pertaining to the provision of video service established by federal law or regulation or adopted by subsequent enactment of the legislature. All customer service and consumer protection standards under this section shall be interpreted and applied to accommodate newer or different technologies while meeting or exceeding the goals of the standards. The holder of a state franchise also shall comply with provisions of Section 637.5 ofthe Penal Code and the privacy standards contained in Section 551 and following of Title 47 of the United States Code.

B. The city manager, or designee, shall enforce all of the customer service and protection standards of Section 5900 of the Public Utility Code with respect to complaints received from residents within the city's boundary provided that the city may not adopt or seek to enforce any additional or different customer service or other performance standards under Section 53055.3 or subdivision (q), (r), or (s) of Section 53088.2 of the Government Code, or any other authority or provision of law. The city manager, or his or her designee, shall provide any required notice in advance of enforcing such standards, including but not limited to the ninety-day notice required by 47 CPR 76.309(a), 76.1602(a), 76.1603(a), and 76.1619(c).

C. The city manager shall monitor the compliance of holders of a state video franchise operating within the boundaries of the city of Chino with respect to state and federal customer service and protection standards. The city manager, or designee, shall provide the state video franchise holder written notice of any material breaches of applicable customer service standards, and shall allow the state video franchise 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 the city:

1. For the first occurrence of a violation, a fine of five hundred dollars shall 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 shall 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 shall be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars for each violation.

D. A holder of a state video franchise operating within the boundaries of the city of Chino may appeal a penalty assessed by the city manager to the city council within sixty 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.

E. Any penalty assessed pursuant to this section shall be remitted to the city, which shall submit one-half of the penalty to the digital divide account established in Section 280.5.

(Ord. 2016-017, § 1, 2016; Ord. 2016-018, § 1, 2016.)

A. Applicants for state video franchises, or amendments to existing franchises, that will authorize the applicant to operate within the boundaries of the city of Chino must concurrently provide complete copies to the city of any application or amendments to applications filed with the public utilities commission. At a minimum, one complete copy must be provided to the city manager.

B. Within 30 days of receipt of notice of an application for a state video franchise that will authorize the applicant to operate within Chino, the city manager shall provide any appropriate comments to the public utilities commission regarding an application or an amendment to an application for a state video franchise.

(Ord. 2016-017, § 1, 2016; Ord. 2016-018, § 1, 2016.)

A. Any holder of a state video franchise, or city-issued cable franchise, operating within the boundaries of the city of Chino, that proposes to install above-ground facilities in the public right-of-way shall, no less than twenty days prior to installing such facilities, provide written notice to the owner of the private or public property (excluding the public right-of-way) nearest to the proposed facility. For purposes of this subsection, "above-ground facilities" shall include only those facilities that are located on the ground or on a base or pedestal that is on the ground, and shall exclude aerial or pole-mounted facilities.

B. Any franchisee to which this section applies shall provide the city with a copy of the proposed form of notice to be used in compliance with subsection A., no less than ten days prior to mailing or delivering the notice. The city manager may require the franchisee to amend the form of the notice. Once the city manager has approved the form of notice, the franchisee shall not be required to obtain additional approvals of notice from the city, so long as the franchisee does not materially deviate from the form of notice approved by the city.

(Ord. 2016-017, § 1, 2016; Ord. 2016-018, § 1, 2016.)

A. Any franchise seeking to install any facilities within the public right-of-way shall first comply with all requirements of the Chino Municipal Code including the requirement to obtain an encroachment permit under Chapter 12.04. Notwithstanding any other requirement of Chapter 12.04, the city official designated to issue an encroachment permit shall either issue or deny said permit to a holder of a state franchise within sixty days of the receipt of a completed application for such a permit. Such an application for an encroachment permit shall be deemed complete when the applicant has complied with all statutory requirements including the California Environmental Quality Act and the Chino Municipal Code.

B. If the local entity denies an application for an encroachment permit, it shall, at the time of notifying the applicant of the denial, furnish to the applicant a detailed explanation of the reason for the denial. The city manager shall adopt regulations prescribing procedures for an applicant to appeal the denial of an encroachment permit application issued by a department of the local entity to the city council. Nothing in this section precludes an applicant and the city from mutually agreeing to an extension of any time limit provided by this section.

(Ord. 2016-017, § 1, 2016; Ord. 2016-018, § 1, 2016.)