17-22 STANDARDS FOR STATE VIDEO FRANCHISEES.

The Digital Infrastructure and Video Competition Act of 2006 ("DIVCA") grants the California Public Utilities Commission the sole authority to issue statewide video service franchises. DIVCA also requires local agencies to adopt regulations applicable to state video franchisees operating within their jurisdiction. This section establishes those regulations, consistent with DIVCA, for holders of state video franchises offering service within the Town. This section shall not apply to any cable service provider operating under a franchise granted by the Town pursuant to Section 17-2.

(Ord. 08-03, § 1)

a. Any state video franchisee offering service within the Town shall pay to the Town a franchise fee equal to five percent (5%) of the franchisees gross revenues within the Town.

b. As authorized by Public Utilities Code Section 5870(n), any state video franchisee offering service within the Town shall pay to the Town a separate fee to support Public, Educational and Governmental ("PEG") channel facilities equal to sixty ($0.60) cents per month per subscriber. This PEG fee shall be automatically reauthorized at the same rate upon renewal of a state video franchise by the Public Utilities Commission. In addition, the expiration of one state franchise in the Town will not result in the expiration of the PEG fee if at least one other franchisee continues to provide video service in the Town subject to that fee.

c. Gross revenue, for the purposes of this section, shall have the definition set forth in Section 5860 of the California Public Utilities Code.

d. The fees required by this section shall be paid to the Town within the time limits set forth in Section 5860(h) of the California Public Utilities Code.

(Ord. 08-03, § 1; Ord. 2017-02, § 1)

Not more than once annually, the Town may audit the business records of a state video franchisee offering service within the Town to ensure compliance with subsection 17-22.2. Any such audit shall be performed pursuant to Section 5860(i) of the California Public Utilities Code.

(Ord. 08-03, § 1)

17-22.4 Customer Service Penalties.

a. State video franchisees offering service within the Town shall comply with all applicable state and federal customer service and protection standards pertaining to the provision of video services.

b. The Town Manager or designee shall provide written notice to the state franchisee of any alleged material breaches of customer service standards and shall allow the franchisee thirty (30) days from receipt of the notice to remedy the breach.

c. Any material breaches not remedied within the allotted time shall be subject to monetary penalties as follows:

1. For the first occurrence, the penalty shall be five hundred ($500.00) dollars per day, not to exceed one thousand five hundred ($1,500) dollars per occurrence.

2. For the second violation of the same nature within twelve (12) months, the penalty shall be one thousand

($1,000.00) dollars per day, not to exceed three thousand ($3,000.00) dollars per occurrence.

3. For the third violation of the same nature within twelve (12) months, the penalty shall be two thousand five hundred ($2,500.00) dollars per day, not to exceed seven thousand five hundred ($7,500.00) dollars per occurrence.

d. The franchisee may appeal to the Town Council the decision of the Town Manager finding a material breach of applicable customer service standards and imposing monetary penalties. Any such appeal must be filed in writing within thirty (30) days of receipt of the decision of the Town Manager.

e. Any penalties collected pursuant to this section shall be allocated as provided for in Section 5900(g) of the California Public Utilities Code.

(Ord. 08-03, § 1)

As required by Chapter 12-1 of this Code, state franchisees shall obtain an encroachment permit from the Town prior to doing any construction, installation or maintenance in the public right-of-way. Any such work done in the Town right-of-way shall be subject to all applicable standards and regulations found in Chapter 12-1 or other generally applicable Town regulations. As required by Section 5885 of the California Public Utilities Code, any denial of an encroachment permit to a state franchisee will be accompanied by a. detailed explanation of the reasons for denial. Any such denial may be appealed to the Town Council within thirty (30) days of the denial. (Ord. 08-03, § 1)