La Habra Heights Municipal Code Ch. 10.10 State Video Franchises

This Chapter is designed to regulate video service providers holding State video franchises and operating within the City of La Habra Heights. On January 1, 2007, the State of California became the sole authority with power to grant State video franchises pursuant to the Digital Infrastructure and Video Competition Act of 2006 ("DIVCA"). Pursuant to DIVCA, the City of La Habra Heights shall receive a franchise fee from all State franchisees. In addition, the City shall receive from all State franchisees fees to support public, educational, and government access channel facilities. DIVCA confirmed that the City may establish and enforce penalties, consistent with State law, against all State video franchise holders operating within the City for violations of customer service standards. DIVCA precludes the City from adopting its own standards and grants all authority to adopt customer service standards to the State. DIVCA leaves unchanged the City’s authority to regulate the City’s current cable franchises and any City cable franchise(s) issued on or before January 1, 2008, until the expiration of any such franchise(s). (Ord. 2008-08 § 1 (Exh. A))

Governmental (PEG) Access.

A. Any State video franchise holder operating within the boundaries of the City shall pay a fee
to the City equal to five (5) percent of the gross revenues of that State video franchise
holder.

B. Effective the first date on which State franchisees begin operating within the boundaries of
the City, each State franchisee shall pay a fee to the City equal to one (1) percent of gross
revenues ("PEG access facilities fee") of that State video franchise holder to support public,
educational, and governmental (PEG) access channel facilities within the City.

C. The PEG access facilities fee shall be paid quarterly no later than the sixty (60) days
following the quarter for which the payment is due. The PEG access facilities fee is in
addition to the franchise fee to be paid to the City by the State video service franchise
holders.

D. "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.
(Ord. 2008-08 § 1 (Exh. A); Ord. 2017-04 § 2)

Not more than once annually, the City Manager or her designee may examine and perform an audit of the business records of a holder of a State video franchise to ensure compliance with Section 10.10.20. (Ord. 2008-08 § 1 (Exh. A))

A. Any 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 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
($500.00) dollars for each day of each material breach, not to exceed one thousand
five hundred ($1,500.00) dollars 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 ($1,000.00) dollars for each day of each material breach, not to exceed
three thousand ($3,000.00) dollars for each occurrence of the material breach.

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

C. Any notice and any penalty may be issued or imposed by the City Manager, or the City
Manager’s 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. The State video service franchise holder may appeal any finding of material breach or
imposition of penalties to the City Council. Any appeal must be made within thirty (30)
calendar days of receipt by the State video service 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 State video service 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
State video franchise holder.

F. Any penalty imposed on the State video franchise holder shall be paid to the City. As
provided for in Section 5900(g) of the California Public Utilities Code, the City shall
submit one-half of all penalties received from a State video franchise holder to the Digital
Divide Account established in Section 280.5 of the California Public Utilities Code.
(Ord. 2008-08 § 1 (Exh. A))

A. As provided for in Section 5885 of the California Public Utilities Code, the City shall either approve or deny an application from a State video service 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 service franchise.

C. An application for an encroachment permit is considered complete when the applicant has complied with all statutory requirements, including the California Environmental Quality Act (CEQA), of the Public Resources 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 fourteen (14) calendar days of receipt by the State video service 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. 2008-08 § 1 (Exh. A))