Chapter 5 — STATE VIDEO FRANCHISES

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 Ojai shall receive a franchise fee from all state franchisees. Additionally, each state franchisee must remit to the City its pro rata share of any cash payments for the ongoing costs of public, education, and governmental access channel facilities or institutional networks, as long as there are such payment obligations imposed by a City issued franchise. Upon the termination of such payment obligations, the City intends to impose a fee for public, educational and/or government ("PEG") purposes from all state video franchise holders operating within the City. 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, in accordance with City Ordinance No. 803, the City's current cable franchise and any City cable franchise issued on or before January 1, 2008, until the expiration of any such franchise.

(Ord. 803, § 1, eff. March 10, 2009)

It is the purpose and intent of the Ojai City Council, through the adoption of this chapter, to establish regulations for video service providers holding state video franchises and operating within the City.

(Ord. 803, § 1, eff. March 10, 2009)

• (a) Any state video franchise holder operating within the boundaries of the City shall also pay a fee to the City equal to 5% of the gross revenue of that state video franchise holder.

• (b) Any state video franchise holder operating within the boundaries of the City shall pay a fee to the City in the amount of its pro rata share of any cash payments for the ongoing costs of public, education, and governmental access channel facilities or institutional networks, so long as there are such payment obligations imposed by a City issued franchise, or until January 1, 2009, whichever is later.

• (c) Effective the first date on which state franchisees operating within the boundaries of the City are not obligated to make payments pursuant to subsection (b) of this section, each state franchisee shall pay a fee to the City equal to one percent of gross revenue of that state video franchise holder to support PEG channel facilities consistent with federal law.

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

• (Ord. 803, § 1, eff. March 10, 2009)

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City of Ojai, CA

FINANCE, REVENUE, AND TAXATION

§ 8-5.04

§ 8-5.07

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 holder of a state video franchise to ensure compliance with Section 8-5.03 hereinabove.

• (Ord. 803, § 1, eff. March 10, 2009)

• (a) The 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 Manager or his or her designee shall monitor the compliance of state video 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 video franchise holder with written notice of any material breaches of applicable customer service standards, and will allow the state video 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 up to $500 may be imposed for each day the violation remains in effect, not to exceed $1,500 for each violation.

  • (2) For a second violation of the same nature within 12 months, a fine of up to $1,000 may be imposed for each day the violation remains in effect, not to exceed $3,000 for each violation.

  • (3) For a third or further violation of the same nature within 12 months, a fine of up to $2,500 may be imposed for each day the violation remains in effect, not to exceed $7,500 for each violation.

• (c) A state video franchise holder may appeal a penalty assessed by the City Manager to the City Council within 60 days of the initial assessment. The City Council shall hear all evidence and relevant testimony and may uphold, modify or vacate the penalty. The City Council's decision on the imposition of a penalty shall be final.

• (Ord. 803, § 1, eff. March 10, 2009)

• (a) Applicants for state video 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 California Public Utilities Commission ("PUC"). One complete copy must be provided 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 franchise.

• (Ord. 803, § 1, eff. March 10, 2009)

Should any provision, section, paragraph, sentence or word of this chapter be determined or declared invalid by any final court action in a court of competent jurisdiction or by reason of

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City of Ojai, CA

OJAI CODE

§ 8-5.07

§ 8-5.07

any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this chapter shall remain in full force and effect.

(Ord. 803, § 1, eff. March 10, 2009)

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City of Ojai, CA