Redlands Municipal Code Ch. 5.76 State Video Franchises

This chapter shall be referred to as the city's STATE VIDEO FRANCHISE REGULATIONS. (Ord. 2771, 2012)

The purpose of this chapter is to regulate video service providers holding state video franchises within the jurisdictional boundaries of the city as specifically permitted by the digital infrastructure and video competition act of 2006 ("DIVCA") and the rules of the California public utilities commission promulgated thereunder. (Ord. 2771, 2012)

For purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

CABLE SERVICE: Shall be ascribed the meaning set forth in section 5830 of DIVCA.

FRANCHISE: An initial authorization, or renewal of an authorization, issued by a franchising entity, regardless of whether the authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, that authorizes the construction and operation of any network in the right of way capable of providing video service to subscribers.

GROSS REVENUES: All revenue actually received by the holder of a state franchise, as determined in accordance with generally accepted accounting principles, that is derived from the operation of the holder's network to provide cable or video service within the jurisdiction of the city, as more particularly set forth in section 5860 of DIVCA.

HOLDER: A person or group of persons that has been issued a state franchise from the California public utilities commission pursuant to DIVCA.

LOCALLY PRODUCED VIDEO PROGRAMMING: Shall be ascribed the meaning set forth in section 58470(d) of DIVCA.

MATERIAL BREACH: Any substantial and repeated failure of a video service provider to comply with service quality and other standards specified in section 5900(a) of DIVCA.

STATE FRANCHISE: A franchise that is issued pursuant to DIVCA.

SUBSCRIBER: A person who lawfully receives video service from the holder of a state franchise for a fee.

VIDEO SERVICE: Shall be ascribed the meaning set forth in section 5830 of DIVCA.

VIDEO SERVICE PROVIDER: An entity providing video services. (Ord. 2771, 2012)

Every holder operating within the jurisdictional boundaries of the city shall pay a franchise fee to the city in the amount of five percent (5%) of that holder's gross revenues derived from the operation of its network to provide cable services or video services within the city, which shall be remitted per the provisions set forth in DIVCA. (Ord. 2771, 2012)

A. Upon request by the city, a holder shall initially activate and provide up to three (3) public, educational and government channels, pursuant to the provisions of DIVCA.

B. Every holder operation within the jurisdictional boundaries of the city shall pay a public, educational and government channels fee to the city in the amount of up to one percent (1%), as may be set by resolution of the city council, of that holder's gross revenues derived from the operation of its network to provide cable services or video services within the city to support facilities for public, educational and government channels, as permitted by DIVCA. (Ord. 2771, 2012)

Not more than once annually, the city manager, or the city manager's designee, may examine and perform an audit of the business records of a holder of a state video franchise to ensure compliance with this chapter. (Ord. 2771, 2012)

A. A holder shall comply with sections 53055, 53055.1, 53055.2 and 53088.2 of the Government Code, and any other customer service standards pertaining to the provision of video service established by federal law or regulation or adopted by subsequent amendment by the state legislature. All customer service and consumer protection standards under this section shall be interpreted and applied to accommodate newer or different technologies while meeting or exceeding the goals of the standards.

B. A holder shall comply with section 637.5 of the California Penal Code and the privacy standards of section 551 of title 47 of the United States Code.

C. The city is authorized to enforce all customer service and protection standards contained set forth in DIVCA, with respect to complaints received from the residents within the city's jurisdiction. The city is authorized to impose penalties for any material breach of any applicable customer service standards, as set forth herein.

D. The city manager, or the city manager's designee, is authorized to monitor the compliance of holders with respect to state and federal customer service and protection standards, shall provide the holder with written notice of any material breaches of applicable customer service standards, and allow the holder thirty (30) days from the receipt of the notice to remedy the specified material breach. No monetary penalties shall be assessed for a material breach if the breach is out of the reasonable control of the holder. Material breaches not remedied within the thirty (30) day time period will be subject to the maximum penalties imposed by the city, as described in subsection E of this section. A material breach for the purposes of assessing penalties shall be deemed to have occurred for each day, following the expiration of the above stated thirty (30) day cure period, in which any material breach has not been remedied by the video service provider, irrespective of the number of customers or subscribers affected. Any penalty shall be provided to the city by the violating state franchise holder and the city shall submit one-half (1/2) of the penalty to the digital divide account established through section 280.5 of the Public Utilities Code.

E. The maximum monetary penalties set forth in California Public Utilities Code section 5900 are hereby adopted and enacted as the applicable schedule of penalties for the material breach of the applicable customer service standards by a holder, as follows:

1. For the first occurrence of a material breach, the monetary penalty shall be five hundred dollars ($500.00) for each day of each material breach.

2. If a material breach has occurred and notice has been provided and a fine or penalty has been assessed, for any subsequent material breach of the same nature within twelve (12) months, the penalty shall be 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.

3. If a third or further material breach of the same nature occurs within those same twelve (12) months, and notice has been provided and a fine or penalty has been assessed, the penalty shall be 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. (Ord. 2771, 2012)