La Palma Municipal Code Art. III Video Franchise Fees, Customer Service and Other Video-Related Matters

Under State law that became effective January 1, 2007, the California Public Utilities Commission (PUC) has the authority to grant State video franchises (State franchises). Under this system, the City acquired certain rights and responsibilities with respect to State video 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.

(Code 1975, § 7A-54; Ord. No. 2007-04, § 2)

(a) Any State video franchise holder (State franchisee) operating within the boundaries of the City of La Palma shall pay a franchisee fee to the City equal to five percent of the gross revenue collected by that State franchisee from customers in La Palma.

(b) Any State franchisee operating within the boundaries of the City of La Palma shall pay an additional fee to the City equal to one percent of the gross revenue collected by that State franchisee from customers in La Palma, which fee shall be used by the City for PEG purposes consistent with State and federal law.

(c) The term "gross revenue," for the purposes of subsections (a) and (b) of this section, shall have the definition set forth in California Public Utilities Code § 5860.

(Code 1975, § 7A-55; Ord. No. 2007-04, § 2)

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 this article and the franchisee's State franchise.

(Code 1975, § 7A-56; Ord. No. 2007-04, § 2)

(a) The holder of a State 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 franchisee(s) with respect to State and federal customer service and protection standards. The City Manager, or his or her designee, shall provide the State franchisee written notice of any material breaches of applicable customer service standards, and shall allow the State franchisee 30 days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the 30-day time period shall be subject to the following penalties by the City Manager, or his or her designee:

(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 violation.

(2) For a second 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 violation.

(c) A State franchisee may appeal a penalty assessed to the City Council within 60 days. After relevant speakers are heard, and any necessary staff reports are submitted, the City Council will vote to either uphold or vacate the penalty. The City Council's decision on the imposition of a penalty shall be final.

(Code 1975, § 7A-57; Ord. No. 2007-04, § 2)

(a) Applicants for State franchises within the boundaries of the City of La Palma 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 shall provide any appropriate comments to the PUC regarding an application or an amendment to an application for a State franchise.

(Code 1975, § 7A-58; Ord. No. 2007-04, § 2)