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Earlier editions: 2026-09

Title 5 — BUSINESS TAXES, LICENSES AND REGULATIONS›II. - SPECIFIC BUSINESSES›Chapter 5.40 — CABLE SYSTEM, OPEN VIDEO, TELECOMMUNICATIONS AND FRANCHISES

Daly City Municipal Code Art. I General

Daly City Municipal Code · 2026-10 edition · updated 2026-10-04 · Daly City

Cite as: Daly City Municipal Code Article I · Text as of 2026-10-04

5.40.010 - Title.

This chapter shall constitute the "Cable System, Open Video, Telecommunications and Franchises" of the City of Daly City and may be referred to as such.

(Ord. 1258 § 2 (part), 1998)

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5.40.020 - Purpose and intent.

It is the intent of this chapter and subsequent amendments to provide for and specify the means to attain the best possible cable service to the public and any franchises issued pursuant to this chapter shall be deemed to include this as an integral finding thereof. It is the further intent of this chapter to establish regulatory provisions that permit the city to regulate cable system franchises and open video systems and telecommunications networks providing cable service, to the extent permitted by federal and state law, including but not limited to the Federal Cable Communications Policy Act of 1984, the Federal Cable Television Consumer Protection and Competition Act of 1992, the Federal Telecommunications Act of 1996, applicable Federal Communications Commission regulations and applicable California law.

(Ord. 1258 § 2 (part), 1998)

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5.40.030 - Authority.

The City of Daly City pursuant to applicable federal and state law, is authorized to grant one or more nonexclusive franchises to construct, operate, maintain and reconstruct cable systems within the city limits. Further, the city has the authority to set forth requirements for the provision of cable services through use of open video systems ("OVS") and telecommunications networks.

(Ord. 1258 § 2 (part), 1998)

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5.40.040 - Findings.

The city council finds that the development of cable systems has the potential of having great benefit and impact upon the residents of the city. Because of the complex and rapidly changing technology associated with cable systems, the city council further finds that the public convenience, safety and general welfare can best be served by establishing regulatory powers which should be vested in the city or such persons as the city may designate.

(Ord. 1258 § 2 (part), 1998)

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5.40.050 - Definitions.

As used in this chapter, the following terms, phrases, words and their derivations shall have the meaning given herein. Words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. Words not defined shall be given their common and ordinary meaning.

"Basic cable service" means any service tier which includes the retransmission of local television broadcast signals.

"Cable service" means:

A. The one-way transmission to subscribers of:

  1. Video programming; or

  2. Other programming service; and

B. Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service.

"Cable system" or "system" means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but such term does not include:

A. A facility that serves only to retransmit television signals of one or more television broadcast stations;

B. A facility that serves subscribers without using any public rights-of-way;

C. A facility of a common carrier which is subject, in whole or in part, to the provisions of Title II of the Telecommunications Act of 1996, except that such facility shall be considered a cable system (other than for the purposes of Section 621(c)) to the extent such facility is used in the transmission of video programming directly to subscribers; unless the extent of such use is solely to provide interactive on-demand services; or

D. Any facilities of any electric utility used solely for operating its electric utility system.

"Cable operator" means any person or group of persons who:

A. Provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in such cable system; or

B. Otherwise controls or is responsible for, through any arrangement, the management and operation of such cable system.

"Channel" or "cable channel" means a portion of the electromagnetic frequency spectrum which is used in a cable system which is capable of delivering a television channel as defined by the Federal Communications Commission.

"Council" means the city council of the city of Daly City.

"Franchise" means an initial authorization, or renewal thereof, issued by the council, whether such authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, which authorizes the construction or operation of a cable system. Any such authorization, in whatever form granted, shall not supersede the requirement to obtain any other license or permit required for the privilege of transacting business within the city as required by the other ordinances and laws of the city.

"Franchise agreement" means grant or a contractual agreement, containing the specific provisions of the franchise granted, including references, specifications, requirements and other related matters.

"Franchise fee" means any fee or assessment of any kind imposed by the city on a grantee as compensation for the grantee's use of the public rights-of-way for the provision of cable service. The term "franchise fee" does not include:

A. Any tax, fee or assessment of general applicability (including any such tax, fee or assessment imposed on both utilities and cable operators or their services, but not including a tax, fee or assessment which is unduly discriminatory against cable operators or cable subscribers);

B. Capital costs which are required by the franchise to be incurred by grantee for public, educational, or governmental access facilities;

C. Requirements or charges incidental to the awarding or enforcing of the franchise, including payments for bonds, security funds, letters of credit, insurance, indemnification, penalties, or liquidated damages; or

D. Any fee imposed under Title 17, United States Code.

"Grantee" means any person receiving a franchise pursuant to this chapter or prior agreement, and its lawful successor, transferee or assignee.

"Grantor" or "city" means the city of Daly City as represented by the council or any delegate, acting within the scope of its jurisdiction.

"Gross annual revenues" means the annual gross revenues received by a grantee from the operations of the cable system within the city utilizing the public rights-of-way for which a franchise is required in order to provide cable service, excluding refundable deposits, rebates or credits, and any sales, excise or other taxes or charges collected for direct pass-through to local, state or federal government.

"Inferior signal quality" means any signal that does not meet FCC technical standards.

"Installation" means the connection of the system to subscribers' terminals, and the provision of service.

"Open video system" means a certified video programming system meeting all conditions of Section 653 (b) of the Telecommunications Act of 1996, providing cable service to subscribers within the city of Daly City.

"Person" means an individual, partnership, association, joint stock company, trust, corporation or governmental entity.

"Public, educational or government access facilities" or "PEG access facilities" means the total of the following:

A. Channel capacity designated for noncommercial public, educational, or government use; and

B. Facilities and equipment for the use of such channel capacity.

"Section" means any section, subsection or provision of this chapter.

"Service area" or "franchise area" means the entire geographic area within the municipal boundaries of the city as it is now constituted or may in the future be constituted, unless otherwise specified in the franchise.

"Service tier" means a category of cable service or other services provided by a cable operator and for which a separate rate is charged.

"State" means the state of California.

"Street" or "public way" or "public rights-of-way" means each of the following which have been dedicated to the public or are hereafter dedicated to the public and maintained under public authority or by others and located within the service area: streets, roadways, highways, avenues, lanes, alleys, sidewalks, easements, rights-of-way and similar public property.

"Subscriber" or "customer" or "consumer" means any person who or which elects to subscribe to, for any purpose, cable service provided by the grantee by means of or in connection with the cable system, and who pays the charges therefor.

(Ord. 1258 § 2 (part), 1998)

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