Dana Point Municipal Code Ch. 5.36 Video Franchise Fees, Customer Service and Other Video-Related Matters

Under State law effective January 1, 2007, the California Public Utilities Commission ("PUC") will have the authority to grant State video franchises ("State franchises"). The City of Dana Point (the "City") will acquire certain rights and responsibilities with respect to State video franchise holders. These include the receipt of a franchise fee and a fee for public, educational and government ("PEG") purposes, both based on a percentage of the gross revenues of State franchise holders, as well as the establishment and enforcement of penalties for violations of customer service rules.

(Added by Ord. 07-08, 6/19/07; amended by Ord. 25-09, 6/17/2025)

(a) Any State video franchise holder ("State franchisee") operating within the boundaries of the City of Dana Point shall pay a fee to the City equal to 5% of the gross revenue of that State franchisee.

(b) Any State franchisee operating within the boundaries of the City of Dana Point shall pay an additional fee to the City equal to 1% of the gross revenue of that State franchisee, which fee shall be used by the City for PEG purposes consistent with State and Federal law.

(c) Gross revenue, for the purposes of subsections (a) and (b) above, shall have the definition set forth in California Public Utilities Code Section 5860.

(Added by Ord. 07-08, 6/19/07; amended by Ord. 17-02, 4/18/17; Ord. 25-09, 6/17/2025)

Not more than once annually, the City may examine and perform an audit of the business records of a State Franchisee to ensure compliance with Section 5.36.020.

(Added by Ord. 07-08, 6/19/07; amended by Ord. 25-09, 6/17/2025)

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

(b) The City Manager, or designee, shall monitor the compliance of State franchisee(s) with respect to State and Federal customer service and protection standards. The City Manager, or designee, shall provide the State franchisee(s) written notice of any material breaches of applicable customer service standards, and shall allow the State franchisee(s) 30 days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the 30-day time period shall be subject to the following penalties by the City Manager, or designee.

(1) For the first occurrence of a violation, a fine of $500 shall be imposed for each day the violation remains in effect, not to exceed $1,500 for each violation.

(2) For a second violation of the same nature within 12 months, a fine of $1,000 shall be imposed for each day the violation remains in effect, not to exceed $3,000 for each violation.

(c) A State franchisee may appeal a penalty assessed to the City Council within 60 days. After relevant speakers are heard, and any necessary staff reports are submitted, the City Council will vote to either uphold or vacate the penalty. The City Council's decision on the imposition of a penalty shall be final.

(Added by Ord. 07-08, 6/19/07; amended by Ord. 25-09, 6/17/2025)

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

(b) The City Manager shall provide any appropriate comments to the PUC regarding an application or an amendment to an application for a State franchise.

(Added by Ord. 07-08, 6/19/07; amended by Ord. 25-09, 6/17/2025)