San Diego Municipal Code Div. 2 Video Service Provider Fees and Customer Service

Regulations For State Franchised Video Service Providers. (“Video Service Provider Fees and Customer Service Regulations for State Franchised Video Service Providers” added 2-26-2008 by O-19719 N.S.; effective 3-27-2008).

For purposes of this Division:

(a) “Franchise Fee” means the fee paid to the City pursuant to Section
73.0202(a).

(b) “Gross Revenue” means the same as it does in Section 5860 of the California
Public Utilities Code.

(c) “Material Breach” means any substantial and repeated failure of a State
Franchisee to comply with service quality and other standards specified in
Section 73.0204(a).

(d) “PEG” means public, educational and governmental access channels.

(e) “PEG Support Fee” means the fee paid to the City pursuant to Section
73.0202(b).

(f) “State Franchisee” means the holder of a California state franchise for the
provision of video services as provided for under Section 5800 et seq. of the
California Public Utilities Code.
(Added 2-26-2008 by O-19719 N.S.; effective 3-27-2008.)

Ch. Art. Div.
7 3 2 1

San Diego Municipal Code Chapter 7: Public Utilities and Transportation (3-2024)

(a) Each State Franchisee that operates within the jurisdictional boundaries of the City of San Diego shall pay to the City, in accordance with the schedule described in Section 73.0202(c), below, a fee equal to five percent (5%) of its Gross Revenues (“Franchise Fee”).

(b) Each State Franchisee that operates within the jurisdictional boundaries of the
City will pay to the City, in accordance with the schedule described in Section
73.0202(c), below, a fee equal to one percent (1%) of the State Franchisee’s
Gross Revenues (“PEG Support Fee”). The City shall use the PEG Support
Fee in a manner consistent with state and federal law.

(c) The Franchise Fee and PEG Support Fee shall be paid to the City on a
quarterly basis within 45 days after the end of each quarter for that calendar
year. Each payment shall be accompanied by a detailed summary explaining
the basis for the calculation of the Franchise Fee and PEG Support Fee.
Payments shall be sent to the Office of the City Treasurer.

(d) A late payment charge equal to the highest prime lending rate during the
period of delinquency plus one percent (1%) will be applied to any payment
made by a State Franchisee for Franchise Fees and PEG Support Fees not
received when due under Section (c) above.

(e) The City shall credit City-imposed fees for trenching, cutting, or deterioration
of the right-of-way under section 62.1216 against the Franchise Fee.
(Added 2-26-2008 by O-19719 N.S.; effective 3-27-2008.)
(Amended 2-23-2024 by O-21763 N.S.; effective 3-24-2024.)

Not more than once annually, the City may examine, and perform an audit of, the business records of a State Franchisee to the extent reasonably necessary to ensure compliance with Section 73.0202. (Added 2-26-2008 by O-19719 N.S.; effective 3-27-2008.)

Ch. Art. Div. 7 3 2 2

San Diego Municipal Code Chapter 7: Public Utilities and Transportation (3-2024)

(a) State Video Franchisees shall comply with all applicable state and federal consumer service and consumer protection standards including:

(1) California Government Code Sections 53055, 53055.1, and 53055.2
(Cable Television and Video Provider Customer Service and
Information), and 53088.2 (Video Customer Service),

(2) California Penal Code Section 637.5 (Subscriber Privacy) and the
privacy standards contained in Section 631 of the federal Cable Act
(47 U.S.C. Sec. 551 et. Seq.),

(3) Federal Communications Commission Rules and Regulations Part
76.309 (Customer Service Obligations),

(4) Any other customer service standards pertaining to the provision of
video service established by federal law or regulation or adopted by
subsequent enactment of the California Legislature.

(b) 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 in relation
to customer protection.

(c) The City will provide any state franchised video provider written notice of
any material breaches of applicable customer service standards and allow the
State Franchisee thirty (30) days from receipt of the notice to remedy the
specified material breach. The City may assess the following monetary
penalties for any material breach of customer service and consumer protection
standards not remedied within the thirty (30) day time period:

(1) Up to Five hundred dollars ($500) for each day of each material
breach, not to exceed a total of one thousand five hundred dollars
($1,500) for each occurrence of a material breach.

(2) If a subsequent material breach of the same nature occurs within
12 months following previous notice and any assessment of penalties
or fines, a fine of up to one thousand dollars ($1,000) shall be imposed
for each day of the material breach stays in effect, not to exceed three
thousand dollars ($3,000) for each occurrence of the material breach.

Ch. Art. Div.
7 3 2 3

San Diego Municipal Code Chapter 7: Public Utilities and Transportation (3-2024)

(3) If a third or further material breach of the same nature occurs within the same 12 months following previous notice and any assessment of penalties or fines, a fine of up to two thousand five hundred dollars ($2,500) shall be imposed for each day of each material breach, not to exceed a total of seven thousand five hundred dollars ($7,500) for each occurrence of a material breach.

(d) A material breach for the purposes of assessing penalties under this
Section 73.0204 shall be deemed to have occurred for each day, following the
expiration of the notice/remedy period of Section 73.0204(c), that any
material breach has not been remedied by the State Franchisee, irrespective of
the number of customers affected.

(e) The City shall submit one-half of any penalties assessed and received to the
Digital Divide Account established under Section 280.5 of the California
Public Utilities Code.

(f) A State Franchisee may appeal a penalty assessed under this Division in
accordance with the appeal procedures set forth in Division 5, Article 2,
Chapter 1 of the San Diego Municipal Code (beginning with Section
12.0501.)
(Added 2-26-2008 by O-19719 N.S.; effective 3-27-2008.)

Ch. Art. Div. 7 3 2 4