Duarte Municipal Code Ch. 5.10 Video Franchise Fees, Customer Service, and Other Video-Related Matters

Pursuant to California law effective January 1, 2007, the California Public Utilities Commission ("PUC") will have the authority to grant state video franchises ("State Franchises"). The city will acquire certain rights and responsibilities with respect to state franchise holders. These rights and duties include the receipt of a franchise fee (the "Franchise Fee") and a fee for public, educational and government ("PEG") purposes (the "PEG Fee"), 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.

(Ord. 794 § 1 (part), 2007)

(a) Any state video franchise holder ("state franchisee") operating within the boundaries of the city shall pay to the city a franchise fee equal to five percent of the gross revenue of that state franchisee.

(b) Any state franchisee operating within the boundaries of the city shall pay an additional PEG fee to the city equal to one percent of the gross revenue of that state franchisee, which fee shall be used by the city for purposes consistent with state and federal law.

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

(d) It is hereby determined that the incumbent cable operator is obligated to pay to the city a franchise fee of five percent of gross revenues.

(Ord. 794 § 1 (part), 2007; Ord. No. 879, § 2, 2-13-2018)

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 5.10.020.

(Ord. 794 § 1 (part), 2007)

(a) A state franchisee 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/her designee, shall monitor the compliance of state franchisee(s) with respect to state and federal customer service and protection standards. The city manager, or his/her 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) thirty days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the thirty-day time period shall be subject to the following penalties by the city manager, or his/her designee.

(1) For the first occurrence of a violation, a fine of five hundred dollars shall be imposed for each day the violation remains in effect, not to exceed one thousand five hundred dollars for each violation.

(2) For a second violation of the same nature within twelve months, a fine of one thousand dollars shall be imposed for each day the violation remains in effect, not to exceed three thousand dollars for each violation.

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

(Ord. 794 § 1 (part), 2007)

(a) Applicants for state 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) The city manager may provide any appropriate comments to the PUC regarding an application or an amendment to an application for a state franchise.

(Ord. 794 § 1 (part), 2007)