Del Mar Municipal Code Ch. 6.41 Video Service Franchise Fees, Customer Service and Other Video…

Under State law effective January 1, 2007, the California Public Utilities Commission ("PUC") has the authority to grant state video service franchises. The City of Del Mar ("City") will acquire certain rights and responsibilities with respect to state video service 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. The City will retain authority, without change, over all City cable franchisees until such time as they no longer hold a valid City cable franchise, or are no longer operating under a current or expired City cable franchise. The City may continue to grant, modify, renew, extend or terminate City cable franchises for cable service until January 1, 2008. After January 1, 2008 the City may modify, renew, extend or terminate existing City cable franchises, whether current or expired.

(Ord. No. 797)

For purposes of this Chapter, the following terms shall have the following meanings:

A. Cable franchise has the same meaning as the term "franchise" in Subsection 6.40.020.H.

B. Cable franchisee has the same meaning as "grantee" in Subsection 6.40.020.I.

C. Cable service means service provided through a "cable television system," as that term is defined in Subsection 6.40.020.B.

D. State franchise holder has the same meaning as "state video service franchise holder."

A. 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 of the gross revenue of that state franchise holder.

B. For any state franchise holder operating within the boundaries of the City, there shall be an additional fee paid to the City equal to two percent 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.

C. Gross revenue, for the purposes of Subsections A. and B. above, shall have the definition set forth in California Public Utilities Code § 5860, as amended from time to time.

(Ord. No. 874)

Editor's note— Sections 1 and 2 of Ord. No. 938, adopted July 2, 2018, state the following: "Section One: Reauthorization. The City's PEG fee imposed in Chapter 6.41, Section 6.41.030(B) of the Del Mar Municipal Code is reauthorized and readopted to the extent required by California Public Utilities Code section 5870(n). All state-franchised video service providers operating within the City, shall continue to be subject to the PEG fee required by Chapter 6.41 of the Del Mar Municipal Code, which fee shall remain unchanged and in full effect as to all state-franchised video service providers operating within the City. Section Two: Automatic Reauthorization. Commencing from, and after, the effective date of this Ordinance, the City's PEG fee set forth in Chapter 6.41, Section 6.41.030(B) of the Del Mar Municipal Code shall continue to apply to any new or existing franchisee operating in the City and shall automatically be reauthorized upon the expiration of any existing or future state video franchise(s) held by any state-franchised video service provider operating within the City. This Ordinance shall so renew until such time that the City Council takes formal affirmative action to cease the renewals.

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 Section 6.41.030.

A. The holder of a state video service 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 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 or his or her designee will provide the state franchise holder written notice of any material breaches of applicable customer and service standards, and will allow the state franchise holder 30 days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the 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 $500.00 shall be imposed for each day the violation remains in effect, not to exceed $1,500.00 for each occurrence of the violation.

2. For a second occurrence of a violation of the same nature within 12 months, a fine of $1,000.00 shall be imposed for each day the violation remains in effect, not to exceed $3,000.00 for each occurrence of the violation.

3. For a third or further occurrence of a violation of the same nature within 12 months, a fine of $2,500.00 shall be imposed for each day the violation remains in effect, not to exceed $7,500.00 for each occurrence of the violation.

C. A state franchise holder may appeal a penalty assessed by the City Manager or his or her designee to the City Council within 60 days of the initial assessment. After relevant speakers are heard, and any necessary staff reports are submitted, City Council will vote to uphold, modify or vacate the penalty. The City Council's decision on the imposition of a penalty shall be final.

A. Applicants for state video service franchises within the boundaries of the City 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. Within 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 video service franchise.

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