Petaluma Municipal Code Ch. 14.48 Video Service Provided by State Franchise Holders

The purpose of this chapter is to set forth regulations for the provision of video service by state franchise holders,

in accordance with the Digital Infrastructure and Video Competition Act, California Public Utilities Code sections

5800 et seq. ("DIVCA"). This chapter shall apply only to video service providers issued a state franchise to serve any

area within the City by the California Public Utilities Commission ("CPUC") pursuant to DIVCA. (Ord. 2311 NCS §2,

2008.)

For the purposes of this chapter, the words set out in this section shall have the following meanings:

A. "Cable service" shall have the meaning given that term by the California Public Utilities Code Section 5830(c).

B. "City" shall mean the city of Petaluma.

C. "City council" shall mean the city council of the city.

D. "Encroachment" includes going upon, over or under a public right-of-way or easement or an area adjacent to

a public right-of-way or easement, or using a public right-of-way or easement or an area adjacent to a public right-

of-way or easement in such a manner as to prevent, obstruct or interfere with the intended use or modiJed use of

the public right-of-way or easement and shall include excavation and disturbance, installation, construction, placement, erection and maintenance of any physical improvement (permanent or temporary) within, upon, over

or under the public right-of-way or easement.

E. "Encroachment permit" shall have the meaning given that term by the California Public Utilities Code Section

5885(c)(1), which shall include any permit issued by the city pursuant to Chapter 13.04, Chapter 13.12, and Chapter

13.14.

F. "Franchise" shall have the meaning given that term by the California Public Utilities Code Section 5830(f).

G. "Franchise fee" shall have the meaning given that term by the California Public Utilities Code Section 5830(g).

H. "Gross revenues" shall have the meaning given that term by the California Public Utilities Code Section 5860.

I. "Holder" shall have the meaning given that term by the California Public Utilities Code Section 5830(i).

J. "Incumbent cable operator" shall have the meaning given that term by the California Public Utilities Code

Section 5830(j).

K. "Lead agency" shall have the meaning given that term by the California Public Resources Code Section 21067.

L. "Local franchise" shall mean a cable television franchise, permitting the incumbent cable operator to own,

operate, and maintain a cable system and provide cable services within the city, issued by the city prior to

December 31, 2006.

M. "Material breach" shall have the meaning given that term by the California Public Utilities Code Section

5900(j).

N. "Network" shall have the meaning given that term by the California Public Utilities Code Section 5830(l), which

shall include any component of a facility used to provide video service, cable service, voice, or data services that is

wholly or partly physically located within, upon, over or under a public right-of-way.

O. "Public right-of-way" shall have the meaning given that term by the California Public Utilities Code Section

5830(o) and include public rights-of-way which have been dedicated to the public or are hereafter dedicated to the

public and maintained under public authority or by others and located within the serviced area such as streets,

roadways, highways, avenues, lanes, alleys, sidewalks, easements, rights-of-way and similar public property.

P. "State franchise" shall have the meaning given that term by the California Public Utilities Code Section

5830(p).

Q. "Video service" shall have the meaning given that term by the California Public Utilities Code Section 5830(s).

(Ord. 2311 NCS §2, 2008.)

Any state franchise holder shall remit to the city a franchise fee in the amount of Jve percent of the gross

revenues of the state franchise holder in compliance with California Public Utilities Code Sections 5840(q) and

5860. (Ord. 2311 NCS §2, 2008.)

A. All unsatisJed obligations, existing on January 1, 2007, to remit any cash payments to the city for the ongoing

costs of public, educational, and government ("PEG") channel facilities or institutional networks contained in a local

franchise, shall continue until August 19, 2010, and shall be paid by the incumbent cable operator and any state

franchise holders pursuant to California Public Utilities Code Section 5870. Such cash payments shall be divided

among the incumbent cable operator and all state franchise holders pursuant to California Public Utilities Code

B. All obligations, existing on December 31, 2006, to provide and support PEG channel facilities and institutional

networks and to provide cable services to community buildings contained in a local franchise shall continue until

August 19, 2010, pursuant to California Public Utilities Code Section 5870.

C. Commencing August 20, 2010, any state franchise holder shall remit to the city a fee to support PEG channel

facilities in the amount of one and twenty-four hundredths percent of the gross revenues of the state franchise

holder in compliance with California Public Utilities Code Section 5870. All revenue collected pursuant to this fee

shall be deposited in a separate fund and shall only be expended for the purpose of supporting PEG channel

facilities.

D. Any state franchise holder shall designate a suLcient amount of capacity on its network to allow the

provision of PEG channels in accordance with California Public Utilities Code Section 5870. Any state franchise

holder shall have three months from the date the city requests the PEG channels to designate the capacity. The

three-month period shall be tolled by any period during which the designation or provision of PEG channel

capacity is technically infeasible.

E. Notwithstanding California Public Utilities Code Section 5870(n), upon the expiration of any state franchise,

this section shall be deemed to have been automatically reauthorized without further action of the city council,

unless the state franchise holder has given the city manager and the city clerk written notice sixty days prior to the

expiration of its state franchise that the state franchise holder will consider this section and the PEG fee

established by this section to have expired, pursuant to California Public Utilities Code Section 5870(n), upon the

expiration of its state franchise.

F. This section shall be enforced, and disputes regarding this section shall be resolved, pursuant to California

Public Utilities Code Section 5870.

(Ord. 2383 NCS §1, 2010; Ord. 2311 NCS §2, 2008.)

A. Any state franchise holder shall pay the franchise fee established in Section 14.48.020 and the PEG channel

facilities fee established in Section 14.48.025(C) on a quarterly basis in a manner consistent with California Public

Utilities Code Section 5860.

B. Any state franchise holder shall deliver to the city by check, or other means agreeable to the city manager, a

separate payment for the franchise fee established in Section 14.48.020 and the PEG channel facilities fee

established in Section 14.48.025(C) not later than forty-Jve days after the end of each calendar quarter.

C. Each payment of the franchise fee established in Section 14.48.020 delivered to the city shall be accompanied

by a summary report explaining the basis for the calculation of the payment.

D. Any state franchise holder shall deliver to the city by check, or other means agreeable to the city manager,

any cash payment required by Section 14.48.025(A) in accordance with the provisions of Section 14.48.025(A) and

Public Utilities Code Section 5870.

E. If any state franchise holder fails to remit the franchise fee established in Section 14.48.020 when due, the

state franchise holder shall remit to the city a late payment charge at the rate per year equal to the highest prime

lending rate during the period of delinquency plus one percent.

(Ord. 2311 NCS §2, 2008.)

A. Any state franchise holder shall comply with the customer service provisions set forth in California Public

Utilities Code Section 5900.

B. The city shall impose the following penalties against a state franchise holder for any material breach of the

customer service provisions set forth in California Public Utilities Code Section 5900:

1. For the Jrst occurrence of a material breach, a Jne of Jve hundred dollars shall be imposed for each day

of each material breach, not to exceed one thousand Jve hundred dollars for each occurrence of the material

breach.

2. For a second occurrence of a material breach of the same nature as the Jrst material breach that occurs

within twelve months, a Jne of one thousand dollars shall be imposed for each day of each material breach,

not to exceed three thousand dollars for each occurrence of the material breach.

3. For a third or further occurrence of a material breach of the same nature as the previous material

breaches that occurs within twelve months, a Jne of two thousand Jve hundred dollars shall be imposed for

each day of each material breach, not to exceed seven thousand Jve hundred dollars for each occurrence of

the material breach.

C. The city shall provide the state franchise holder with written notice of any alleged material breach of the

customer service provisions set forth in California Public Utilities Code Section 5900 and shall allow the state

franchise holder at least thirty days from receipt of the notice to remedy the speciJed material breach.

D. A material breach, for the purposes of assessing penalties, shall be deemed to have occurred for each day

within the jurisdiction of the city, following the expiration of the period speciJed in subsection C of this section,

that any material breach has not been remedied by the state franchise holder, irrespective of the number of

customers aMected. No monetary penalties shall be assessed for a material breach if it is out of the reasonable

control of the state franchise holder.

E. Pursuant to California Public Utilities Code Section 5900, any penalty remitted to the city by a state franchise

holder for a material breach of the customer service provisions set forth in California Public Utilities Code Section

5900 shall be split in half, and the city shall submit one-half of the penalty amount to the Digital Divide Account

established by California Public Utilities Code Section 280.5.

(Ord. 2311 NCS §2, 2008.)

A. Any state franchise holder may appeal any customer service penalty assessed pursuant to Section 14.48.035

according to the following procedure.

B. The state franchise holder may Jle a request for hearing form with the city clerk within thirty days from

receipt of the written notice speciJed in Section 14.48.035(C) with an advance deposit of the penalty amount.

C. A request for hearing form may be obtained from the city clerk.

D. The state franchise holder requesting the hearing shall be notiJed by the city clerk of the time and place set

for the hearing at least ten days prior to the date of the hearing.

E. The hearing shall be set by the city clerk for a date that is not less than Jfteen days and not more than sixty

days from the date that the request for hearing form is Jled with the city clerk.

F. At the hearing, the city shall bear the burden of proof by a preponderance of the evidence that the material

breach occurred as charged. The city may be represented by counsel.

G. At the hearing, the state franchise holder may cross examine any witness against the state franchise holder

and may present evidence. The state franchise holder may be represented by counsel.

H. The formal rules of evidence shall not apply at the hearing. The hearing oLcer may rely upon such evidence

as he or she believes reasonable persons would rely upon in the conduct of their aMairs. Any witnesses shall

testify under oath.

I. After hearing and reviewing all of the testimony and evidence submitted at the hearing, the hearing oLcer

shall issue a written decision to uphold or cancel the penalty and shall list in the decision the reasons for that

decision. The decision of the hearing oLcer shall be Jnal.

J. If the hearing oLcer determines that the penalty should be canceled, the city shall promptly refund the

amount of the deposited penalty, together with interest at the average rate earned on the city’s investment

portfolio for the period of time that the penalty amount was held by the city.

K. The hearing oLcer shall be the city manager or his or her designee.

L. Any interested person may obtain review of the decision of the hearing oLcer by Jling an appeal in a court of

competent jurisdiction pursuant to California Public Utilities Code Section 5900.

(Ord. 2311 NCS §2, 2008.)

A. Any state franchise holder shall apply for an encroachment permit to install, construct or maintain a network

pursuant to Section 13.04.120 or 13.12.120 as determined by the superintendent of streets. In addition to the

procedures set forth in Section 13.04.120 or 13.12.120, the following shall apply to any state franchise holder

applying for an encroachment permit:

1. Any encroachment permit application submitted by any state franchise holder shall be approved or

denied within sixty days of receipt by the city of a completed application. An application for an encroachment

permit is complete when the state franchise holder has complied with all statutory requirements, including

requirements of the California Environmental Quality Act, Public Resources Code Sections 21000 et seq.

("CEQA"), pursuant to California Public Utilities Code Section 5885.

2. The sixty-day time period for approval or denial of an encroachment permit application may be

extended if mutually agreed to in a written agreement between the state franchise holder and the city.

3. Any denial of an encroachment permit application submitted to any state franchise holder by the city

shall be written and shall include a detailed explanation of the reason for the denial.

4. Any state franchise holder may appeal a denial of an encroachment permit application to the city council

pursuant to Section 13.04.160.

B. In the event that any part of this section conKicts in any way with Chapters 13.04, 13.12, and 13.14, this

section shall apply.

(Ord. 2311 NCS §2, 2008.)

A. The city may examine once per year the business records of any state franchise holder relating to gross

revenues in a manner consistent with California Public Utilities Code Section 5860.

B. All state franchise holders shall keep and maintain all business records reKecting any gross revenues,

regardless of change in ownership, for at least four years after those gross revenues are recognized by the state

franchise holder on its books and records pursuant to California Public Utilities Code Section 5860.

C. If the state franchise holder has underpaid the franchise fee established by Section 14.48.020 by more than

Jve percent, the state franchise holder shall pay the reasonable and actual costs of the examination. If the state

franchise holder has not underpaid the franchise fee established in Section 14.48.020, the city shall pay the

reasonable and actual costs of the examination. If the state franchise holder, however, has underpaid the

franchise fee established by Section 14.48.020 by Jve percent or less, the state franchise holder and the city shall

each bear its own costs of the examination.

(Ord. 2311 NCS §2, 2008.)

The city shall serve as the lead agency for any environmental review under DIVCA. The city may impose conditions

to mitigate environmental impacts of any state franchise holder’s use of the public rights-of-way that may be

required pursuant to CEQA. (Ord. 2311 NCS §2, 2008.)

All state franchise holders shall comply with the emergency alert system requirements of the Federal

Communications Commission in order that emergency messages may be distributed over all state franchise

holders’ networks. (Ord. 2311 NCS §2, 2008.)

Any state franchise holder is prohibited from discriminating against or denying access to service to any group of

potential residential subscribers within the city because of the income of the residents in the local area in which

the group resides. This requirement may be satisJed pursuant to California Public Utilities Code Section 5890. The

city may bring complaints to the CPUC that a state franchise holder is not oMering video services as required by

California Public Utilities Code Section 5890. (Ord. 2311 NCS §2, 2008.)

A. Applicants for state video franchises within the boundaries of the city of Petaluma must concurrently provide

complete copies to the city of any application or amendments to applications Jled with the California Public

Utilities Commission (PUC) and any other agency. One complete copy must be provided to the city manager.

B. Within thirty days of receipt, the city manager may provide any appropriate comments to the PUC or other

agency regarding an application or an amendment to an application for a state video franchise.

(Ord. 2311 NCS §2, 2008.)

The Petaluma Municipal Code is current through Ordinance 2916 NCS, passed December 1, 2025.

Disclaimer: The city clerk’s oLce has the oLcial version of the Petaluma Municipal Code. Users should contact the

city clerk’s oLce for ordinances passed subsequent to the ordinance cited above.

City Website: cityofpetaluma.net

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