Rialto Municipal Code Ch. 5.46 State Video Franchise Fees and Regulations

Notwithstanding any provision of this chapter to the contrary, nothing in this chapter shall be deemed to require any person or entity to obtain a franchise issued by the city, to the extent that such person or entity is authorized to provide cable service or video services under a cable franchise or video services franchise issued by another government entity under applicable law, including, but not limited to, Section 5800 et seq. of the California Public Utilities Code. The requirements and provisions of this chapter shall not apply or be enforced to the extent that they actually conflict with applicable state or federal law.

(Ord. 1433 § 1 (part), 2008)

This chapter is intended to regulate video service providers holding state video franchises and operating within the city of Rialto. Since January 1, 2007, the state of California has had the sole authority to grant state video franchises pursuant to the Digital Infrastructure and Video Competition Act of 2006 ("Act"). Pursuant to the Act, the city of Rialto shall receive a franchise fee and may receive a fee for public, educational and government ("PEG") purposes from all state video franchise holders operating within the city. The city also has the responsibility to establish and enforce penalties, consistent with state law, against all state video franchise holders operating within the city for violations of customer service standards, but the Act grants all authority to adopt customer service standards to the state. The Act leaves unchanged the city's authority to regulate the city's current cable franchise in accordance with Chapter 5.44 of the Rialto Municipal Code and the cable franchise currently in effect, until such time as the cable franchisee no longer holds a city franchise or is no longer operating under a current or expired city franchise.

(Ord. 1433 § 1 (part), 2008)

A. Any state video franchise holder operating within the boundaries of the city of Rialto shall pay to the city a franchise fee equal to five percent of the gross revenue of that state video franchise holder.

B. Any state video franchise holder operating within the boundaries of the city of Rialto shall pay to the city, in addition to the franchise fee, a fee equal to one percent of the gross revenue of that state video franchise holder, which fee shall be used by the city for public, educational, and government access purposes consistent with state and federal law. This fee obligation shall take effect upon the earlier of: (1) the fulfillment of all obligations to remit cash payments to the city for support of public, educational, and government access facilities which are contained within a city-issued cable franchise that was in effect on January 1, 2007, and which remained unsatisfied as of the effective date of the ordinance codified in this chapter; or (2) the termination by the holder of a city-issued cable franchise of its franchise as provided under state law. The intent of this subsection is to authorize the city to obtain compliance of the requirements of subsections (l), (m), and (n) of Section 5870 of the Public Utilities Code by all cable or video providers, including the adoption of implementing regulations by the city administrator. It is also the intent of this subsection that the fee established by this subsection shall be the fee authorized by subsection (n) of Section 5870 of the Public Utilities Code.

C. For the purposes of this chapter, the term "gross revenue" shall have the definition set forth in California Public Utilities Code 5860.

D. To the extent reauthorization is required by law, this chapter, including the PEG fee specified in subsection B of this section in the amount of one percent of gross revenues, is automatically reauthorized as to each affected state video franchise holder upon the expiration of any state franchise. Any and all reauthorizations shall be effective for so long as such reauthorization is required by law.

(Ord. 1433 § 1 (part), 2008)

(Ord. No. 1650, § 3, 9-22-20)

Not more than once annually, the city administrator, or his or her designee, may examine and perform an audit of the business records of all holders of a state video franchise operating within the boundaries of the city of Rialto to ensure compliance with Section 5.44.033 of this code.

(Ord. 1433 § 1 (part), 2008)

A. Any holder of a state video franchise operating within the boundaries of the city of Rialto shall comply with all applicable state and federal customer service and protection standards pertaining to the provision of video service. The city administrator, or his or her designee, shall provide any required notice in advance of enforcing such standards, including, but not limited to, the ninety-day notice required by 47 CFR 76.309(a), 76.1602(a), 76.1603(a), and 76.1619(c).

B. The city administrator shall monitor the compliance of holders of a state video franchise operating within the boundaries of the city of Rialto with respect to state and federal customer service and protection standards. The city administrator, or his or her designee, shall provide the state video franchise holder written notice of any material breaches of applicable customer service standards, and shall allow the state video franchise holder thirty days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the thirty-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 five hundred dollars shall be imposed for each day the violation remains in effect, not to exceed one thousand five hundred dollars for each violation.

2. For a second violation of the same nature within twelve months, a fine of one thousand dollars shall be imposed for each day the violation remains in effect, not to exceed three thousand dollars for each violation.

3. For a third or further violation of the same nature within twelve months, a fine of two thousand five hundred dollars shall be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars for each violation.

C. A holder of a state video franchise operating within the boundaries of the city of Rialto may appeal a penalty assessed by the city administrator to the city council within sixty 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.

D. The city of Rialto shall comply with any statutory requirement to remit all or a portion of collected fine revenue to the state of California, including the requirement in Public Utilities Code Section 5900(g).

(Ord. 1433 § 1 (part), 2008)

A. Applicants for state video franchises, or amendments to existing franchises, that will authorize the applicant to operate within the boundaries of the city of Rialto must concurrently provide complete copies to the city of any application or amendments to applications filed with the Public Utilities Commission. At a minimum, one complete copy must be provided to the city administrator.

B. Within thirty days of receipt of notice of an application for a state video franchise that will authorize the applicant to operate within Rialto, the city administrator shall provide any appropriate comments to the Public Utilities Commission regarding an application or an amendment to an application for a state video franchise.

(Ord. 1433 § 1 (part), 2008)

A. Any holder of a state video franchise, or city-issued cable franchise, operating within the boundaries of the city of Rialto, that proposes to install aboveground facilities in the public right-of-way shall, no less than twenty days prior to installing such facilities, provide written notice to the owner of the private or public property (excluding the public right-of-way) nearest to the proposed facility. For purposes of this subsection, "aboveground facilities" shall include only those facilities that are located on the ground or on a base or pedestal that is on the ground, and shall exclude aerial or pole-mounted facilities.

B. Any franchisee to which this section applies shall provide the city with a copy of the proposed form of notice to be used in compliance with subsection A of this section, no less than ten days prior to mailing or delivering the notice. The city administrator may require the franchisee to amend the form of the notice. Once the city administrator has approved the form of notice, the franchisee shall not be required to obtain additional approvals of notice from the city, so long as the franchisee does not materially deviate from the form of notice approved by the city.

(Ord. 1433 § 1 (part), 2008)

Any franchise seeking to install any facilities within the public right-of-way shall first comply with all requirements of the Rialto Municipal Code, including the requirement to obtain an encroachment permit under Chapter 11.04 of this code. Notwithstanding any other requirement of Chapter 11.04 of this code, the city official designated to issue an encroachment permit shall either issue or deny said permit to a holder of a state franchise within sixty days of the receipt of a completed application for such a permit. Such an application for an encroachment permit shall be deemed complete when the applicant has complied with all statutory requirements, including the Rialto Municipal Code and the California Environmental Quality Act. The city administrator shall issue regulations implementing this section and Section 5885 of the Public Utilities Code.

(Ord. 1433 § 1 (part), 2008)