Clovis Municipal Code Art. 6 Special Provisions Applicable to State Franchise Holders

Under State law effective January 1, 2007, the California Public Utilities Commission (PUC) has the sole authority to grant State franchises to provide video service. Pursuant to this State law, the City has certain rights and responsibilities with respect to state franchise holders, which include the receipt of a franchise fee and a fee for public, educational and government (PEG) purposes, and the authority to establish and enforce penalties for violations of customer services rules. The City retains authority to regulate the City’s current cable franchise in accordance with this chapter 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.

(§ 1, Ord. 07-36, eff. December 13, 2007)

For the purposes of this article, the following words shall have the following meanings:

“Gross revenue”

shall have the meaning ascribed that term in Section 5860 of the California Public Utilities Code.

“Holder”

shall have the meaning ascribed that term in Section 5830 of the California Public Utilities Code.

“State franchise”

shall have the meaning ascribed that term in Section 5830 of the California Public Utilities Code.

“Video service”

shall have the meaning ascribed that term in Section 5830 of the California Public Utilities Code.

(§ 1, Ord. 07-36, eff. December 13, 2007)

For any State franchise holder operating within the boundaries of the City, there shall be a fee paid to the City equal to five percent (5%) of the gross revenue of that State franchise holder.

(§ 1, Ord. 07-36, eff. December 13, 2007)

For any State franchise holder operating within the boundaries of the City, there shall be a fee paid to the City equal to one percent (1%) of the gross revenue of that state franchise holder, which fee shall be used by the City for PEG purposes consistent with State and Federal law.

(§ 1, Ord. 07-36, eff. December 13, 2007)

Not more than once annually, the City Manager or his or her designee may examine and perform an audit of the business records of a State franchise holder to ensure compliance with Sections 5.21.602 and 5.21.603.

(§ 1, Ord. 07-36, eff. December 13, 2007)

(a) Applicable Law. Any State franchise holder shall comply with all applicable State and Federal customer service and protection standards pertaining to the provision of video service.

(b) Penalties for Violation. The City Manager or his or her designee shall monitor the compliance of State franchise holders with respect to State and Federal customer service and protection standards. The City Manager shall provide the State franchise holder written notice of any material breaches of applicable customer service standards, and will allow the State franchise holder thirty (30) days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the thirty (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 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 each violation of the same nature within twelve (12) months, a fine of one thousand dollars ($1,000.00) shall be imposed for each day the violation remains in effect, not to exceed three thousand dollars ($3,000.00) for each violation.

(3) For a third or further violation of the same nature within twelve (12) months, a fine of two thousand five hundred dollars ($2,500.00) shall be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars ($7,500.00) for each violation.

(c) Appeal Procedure. A State franchise holder may appeal a penalty assessed by the City Manager to the City Council within thirty (30) days of the assessment. The City Council shall hear all evidence and relevant testimony and may uphold, modify, or vacate the penalty. The City Council’s decision regarding the imposition of a penalty pursuant to this section shall be final. In the absence of an appeal, the imposition of the penalty shall be deemed final thirty (30) days after the assessment.

(§ 1, Ord. 07-36, eff. December 13, 2007)

(a) Applicants for State franchises within the boundaries of the City must concurrently provide copies to the City of any application or amendments to applications filed with the PUC. One complete copy must be provided to the City Manager.

(b) Within thirty (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 franchise.

(§ 1, Ord. 07-36, eff. December 13, 2007)

State franchisees shall provide the PEG channels required by California Public Utilities Code Section 5870 and satisfy the interconnectivity provisions of that section.

(§ 1, Ord. 07-36, eff. December 13, 2007)

Any entity providing video service under an expired franchise with the City on January 1, 2007, shall hereby have the terms of its franchise with the City extended on the same terms and conditions until January 2, 2008. Any extension made pursuant to this section does not preclude the City from further modifications, renewals, extensions or termination of that franchise with the City.

(§ 1, Ord. 07-36, eff. December 13, 2007)