San Bruno Municipal Code Ch. 10.28 State Video Franchises

This chapter is designed to regulate video service providers holding state video franchises and operating within the city pursuant to that franchise. 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 San Bruno shall receive a franchise fee and a fee for public, educational and/or government (PEG) purposes from all state video franchise holders operating within the city. Additionally, the city acquired 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. DIVCA leaves unchanged the city's franchise with San Bruno Cable to operate in the city pursuant to Chapter 10.24 of the municipal code.

(Ord. 1757 § 3, 2008; Ord. 1902 § 3, 2021)

A. Any state video franchise holder operating within the boundaries of the city shall pay a fee to the city equal to five percent of the "gross revenue" of that state video franchise holder. Gross revenue, for the purposes of this chapter, shall have the definition set forth in California Public Utilities Code Section 5860.

B. Any state video franchise holder operating within the boundaries of the city shall pay a PEG fee equal to one percent of the "gross revenue" of that state video franchise holder to the city or the city's designee for support of public, educational, and/or governmental (PEG) purposes that are consistent with state and federal law. To the extent reauthorization is required by law, this chapter, including the PEG fee in the amount of one percent of the state franchise holder's 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.

C. The city manager shall promptly send any state franchise holder that notifies the city that it intends to provide video service in the city a copy of the ordinance codified in this section and a notice designating the person to whom the state franchise fee and PEG fee payments should be made.

D. The franchise fee and the PEG fee required pursuant to this section shall each be paid to the city quarterly, in a manner consistent with California Public Utilities Code Section 5860. The state franchise holder shall deliver to the city, by check or other means specified by the city, a payment for the franchise fee and a separate payment for the PEG fee not later than forty-five days after the end of each calendar quarter. Each payment made shall be accompanied by a summary explaining the basis for the franchise fees, containing such information as the city manager may require consistent with DIVCA.

E. In the event a state franchise holder fails to make payments required by this section on or before the due dates specified in this section, the city shall impose a late charge at the rate per year equal to the highest prime lending rate during the period of delinquency, plus one percent.

(Ord. 1757 § 3, 2008; Ord. 1902 § 3, 2021; Ord. 1959, 2/11/2025)

Not more than once annually, the city manager or the 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 Section 10.28.020.

(Ord. 1757 § 3, 2008; Ord. 1902 § 3, 2021)

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 the manager's designee shall monitor and enforce the compliance of state video franchise holders with respect to state and federal customer service and protection standards. The city manager or the manager's designee will provide the state video franchise holder written notice of any material breaches of applicable customer service standards, and will 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 up to five hundred dollars may 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 up to one thousand dollars may 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 up to two thousand five hundred dollars may be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars for each violation.

C. A state video franchise holder may appeal a penalty assessed by the city manager 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.

(Ord. 1757 § 3, 2008; Ord. 1902 § 3, 2021; Ord. 1959, 2/11/2025)

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 thirty 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. 1757 § 3, 2008; Ord. 1902 § 3, 2021)

In the event a state franchise holder leases access to a network owned by the city, the city may set a franchise fee for access to the city-owned network separate and apart from the franchise fee charged to state franchise holders pursuant to Section 10.28.020, which fee shall otherwise be payable in accordance with the procedures established by this chapter, unless the city specifies a different payment procedure.

(Ord. 1959, 2/11/2025)

A. Except as expressly provided in this chapter, the provisions of Title 8 of this code, and all city administrative rules and regulations developed pursuant to Title 8, as now existing or as hereafter amended, shall apply to all work performed by or on behalf of a state franchise holder in any public rights-of-way.

B. Prior to commencing any work for which a permit is required by Title 8 of this code, a state franchise holder shall apply for and obtain a permit in accordance with the provisions of Title 8. A permit application is complete when the state franchise holder has complied with all applicable laws and regulations, including but not limited to all city administrative rules and regulations, and all applicable requirements of Division 13 of the California Public Resources Code, Section 21000, and following, (the California Environmental Quality Act) and preparation of plans and specifications as required by the director of public works.

C. The director of public works shall, in the exercise of reasonable discretion as permitted by state law, either approve or deny a state franchise holder's application for any permit required under Title 8 within sixty days of receiving a complete permit application from the state franchise holder.

D. If the director of public works denies a state franchise holder's application for a permit, the director of public works shall, at the time of notifying the applicant of denial, furnish to the applicant a detailed explanation of the reason or reasons for the denial.

E. A state franchise holder that has been denied a permit by final decision of the director of public works may appeal to the city council with the time frame set forth and consistent with the provisions contained in Chapter 1.32 of this code. The director of public works shall transmit to the council all maps, diagrams, records, papers, and files that constitute the record in the action from which the appeal was taken.

F. The issuance of a permit under Title 8 of this code is not a franchise, and does not grant any vested rights in any location in the public rights-of-way, or in any particular manner of placement within the rights-of-way. A permit to place cabinets and similar appurtenances aboveground may be revoked and the permittee required to place facilities underground, upon reasonable notice to the permittee.

(Ord. 1959, 2/11/2025)

Each state franchise holder shall cooperate in the planning, locating and construction of its network in utility joint trenches or common duct banks with other telecommunications providers.

(Ord. 1959, 2/11/2025)

Each state franchise holder shall be a member of the regional notification center for subsurface installations (underground services alert) and shall field mark, at its sole cost and expense, the locations of its underground network facilities upon notification in accordance with the requirements of Section 4216 of the California Government Code, and any other applicable law.

(Ord. 1959, 2/11/2025)

Each state franchise holder shall comply with the emergency alert system requirements of the Federal Communications Commission in order that emergency messages may be distributed over the state franchise holder's network.

(Ord. 1959, 2/11/2025)

The rights reserved to the city under this chapter, are in addition to all other rights of the city whether reserved by this chapter, or authorized by other applicable law, and no action, proceeding or exercise of a right shall affect any other rights which may be held by the city.

(Ord. 1959, 2/11/2025)

Nothing contained in this chapter exempts a state franchise holder from compliance with all ordinances, rules or regulations of the city now in effect or which may be hereafter adopted which are not inconsistent with this chapter or California Public Utilities Code Section 5800, and following.

(Ord. 1959, 2/11/2025)