El Monte Municipal Code Ch. 18.09 State Video Franchises

A. Any holder of a video services franchise issued pursuant to the Digital Infrastructure and Video Competition Act of 2006 codified under California Public Utilities Code Section 5800 et seq. ("DIVCA"), shall, pursuant to Section 5860(a) of the California Public Utilities Code ("CPUC"), calculate and remit to the city of El Monte a franchise fee of five (5) percent of gross revenues.

B. This section shall satisfy the requirements of Section 5840(q) of the CPUC.

C. For the purposes of any state video service franchise and this chapter, the term "gross revenues" shall have the same meaning as set forth under Section 5860(d) of the CPUC and shall exclude those revenues and amounts expressly excluded from that definition pursuant to Section 5860(e) of the CPUC.

D. Pursuant to Section 5840(o) of the CPUC, any video service provider operating under a cable television franchise granted by the city pursuant to Chapter 18.08 (Cable Television Franchises) of the El Monte Municipal Code may seek a state video franchise upon meeting any of the following conditions:

1. The expiration, prior to any renewal or extension, of its city franchise;

2. A mutually agreed upon date set by both the city and the city franchisee to terminate the franchise provided in writing by both parties to the California Public Utilities Commission;

3. When a city franchisee becomes a state franchise holder, provided that the city franchisee has first provided city with the notice required under Section 5840(m) of the CPUC and notifies the city that it will be providing video services within the city under the state video franchise.

E. Pursuant to Section 5930(b) of the CPUC, if a franchise issued pursuant to Chapter 18.08 of the El Monte Municipal Code is currently expired, the city may unilaterally extend the franchise until January 2, 2008. Also pursuant to Section 5930(b), if an incumbent franchise operating pursuant to a franchise issued pursuant to Chapter 18.08 of the El Monte Municipal Code applies for a state franchise, such state franchise shall not become operative prior to January 2, 2008.

(Ord. 2716 § 1 (part), 2008)

A. As of December 31, 2006:

1. The city was imposing a fee of one dollar and sixty-nine cents ($1.69) per month per subscriber on the city-franchised cable operator to support public, educational and governmental ("PEG") channel facilities; and

2. The city was imposing on the city-franchised cable operator an additional fee of six thousand dollars ($6,000.00) per calendar year for support in coverage of city meetings.

3. The PEG capital support fees referenced under subsections (A)(1) and (A)(2) of this section, above, are for PEG capital support and are in addition to, and not in lieu of, the franchise fee paid to the city by the cable operator. The PEG capital support fees reference under subsections (A)(1) and (A)(2) of this section, above, are in excess of one percent of the cable operator's gross revenues.

4. Pursuant to Section 5870(k) of the CPUC, the obligations set forth under subsection (A)(1) and (A)(2) of this section, above, shall continue until January 1, 2009 at which time the provisions of subsection B of this section shall control.

B. Effective January 2, 2009, each franchise holder shall be required to pay a fee equal to three (3) percent of gross revenues to support PEG channel facilities. This fee shall be payable quarterly no later than June 1, September 1, December 1 and March 1 for the preceding calendar quarter for which the payment is due. The PEG fee established under this subsection shall be in addition to, and not in lieu of, the franchise fee paid to the city by the franchise holder pursuant to Section 18.09.010 of this chapter.

C. Notwithstanding subdivision (n) of Public Utilities Code Section 5870, upon the expiration of any state franchise, without any action of the City Council, subsection B. of this section shall be deemed to have been automatically reauthorized unless the state franchise holder has given the City Council and City Manager written sixty (60) days prior to the expiration of its state franchise that this section will expire pursuant to the terms of subdivision (n) of Public Utilities Code Section 5870.

(Ord. 2716 § 1 (part), 2008)

(Ord. No. 2926, § 2, 3, 1-9-2018)

A. Any holder of a state video franchise shall comply with all applicable state and federal customer service and protection standards pertaining to the provision of video service.

B. The city will provide any holder of a state video franchise written notice of any material breach of applicable customer service and protection standards, and will allow the franchise holder at least thirty (30) calendar days from the receipt of the notice to remedy the specified material breach. A material breach that is not remedied by the state video franchise holder within the remedy period shall subject the state video franchise holder to the following penalties to be imposed by the city:

1. For the first occurrence of a material breach, a penalty of not more than five hundred dollars ($500.00) for each day of each material breach, not to exceed one thousand five hundred dollars ($1,500.00) for each occurrence of a material breach;

2. For the second violation of the same nature within twelve (12) months, a penalty of one thousand dollars ($1,000.00) for each day of each material breach, not to exceed three thousand dollars ($3,000.00) for each occurrence of the material breach; and

3. For a third or further violation of the same nature within twelve (12) months, a penalty of two thousand five hundred dollars ($2,500.00) for each day of each material breach, not to exceed seven thousand five hundred dollars ($7,500.00) for each occurrence of the material breach.

C. Any notice and any penalty may be issued or imposed by the City Manager or designee. Any notice shall be in writing. Notices shall be transmitted by United States Postal Service certified or registered mail, return receipt requested and postage prepaid, or by private commercial delivery or courier service for same day or next business day delivery with delivery and receipt signature required.

D. A franchise holder may appeal any finding of material breach or imposition of penalties to the City Council. Any appeal must be made within ten (10) calendar days of receipt by the franchise holder of the finding of material breach or the imposition of penalties, and must be submitted in writing to the City Clerk and the City Manager in order to be placed on a City Council agenda for consideration. Any appeal must contain a detailed explanation of why the applicant believes that the finding of material breach or the imposition of penalties was inconsistent with statutory requirements.

E. The city and any franchise holder may mutually agree to extend the time periods specified herein. Any such agreement shall be in writing and executed by the City Manager, or the City Manager's designee, and an authorized representative of the franchise holder.

F. Any penalty imposed on a franchise holder shall be paid to the city. As provided for in Section 5900(g) of the CPUC, the city shall submit one-half of all penalties received from a franchise holder to the Digital Divide Account established in Section 280.5 of the CPUC.

(Ord. 2716 § 1 (part), 2008)

A. As provided for in Section 5885 of the CPUC, the city shall either approve or deny an application from a state franchise holder for an encroachment permit within sixty (60) days of receiving a completed application.

B. An "encroachment permit" means any permit issued by the city relating to construction or operation of facilities relating to the provision of video service under a state video franchise.

C. An application for an encroachment permit shall be considered complete only when the applicant has satisfied and complied with all statutory requirements for such an application, including those requirements of the California Environmental Quality Act, Public Resources Code Section 21000 et seq., Title 12 of the El Monte Municipal Code, including the requirement to pay any and all applicable encroachment permit fees, and other applicable provisions of the El Monte Municipal Code.

D. Any city denial of an application for an encroachment permit shall be in writing and shall contain a detailed explanation of the reason for the denial.

E. An applicant whose application for an encroachment permit has been denied may appeal the denial to the City Council. Any appeal must be made within ten (10) calendar days of receipt by the franchise holder of the denial, and must be submitted in writing to the City Clerk and the City Manager in order to be placed on the City Council agenda for consideration. Any appeal must contain a detailed explanation of why the applicant believes that the denial was inconsistent with statutory requirements.

(Ord. 2716 § 1 (part), 2008)

Consistent with Section 5860(i) of the CPUC, the Deputy City Manager for Administrative Services or designee may examine and perform an audit of the business records of a franchise holder to ensure compliance with the franchise fee requirements of the DIVCA provisions of the CPUC and this chapter. As specified under Section 5860(i) of the CPUC, such an audit may not be conducted more than once annually for any one franchise holder.

(Ord. 2716 § 1 (part), 2008)

A. For purposes of this chapter, the following words and phrases shall have the meaning set forth below:

1. The term "city-granted franchise" means a franchise awarded pursuant to Chapter 18.08 (Cable Television Franchises) of the El Monte Municipal Code.

2. The phrase "the city-franchised cable operator" means the sole cable operator, to wit, Time Warner Cable, operating under a franchise pursuant to Chapter 18.08 (Cable Television Franchises) of the El Monte Municipal Code.

3. The terms "franchise holder" or "state franchise holder" shall have the same meaning as the meaning given to the term "holder" under Section 5830 of the CPUC.

4. The term "gross revenues" as used in this chapter shall have the same meaning as set forth under Section 18.09.010(C) of this chapter.

5. The phrases "state franchise" or "state video franchise" shall have the same meaning as the meaning given to the term "state franchise" under Section 5830 of the CPUC.

(Ord. 2716 § 1 (part), 2008)