Santa Ana Municipal Code Div. 6 Regulation of State Video Franchise Holders

This chapter is designed to regulate video service providers holding state video franchises and operating with the city.

As of January 1, 2007, the state has the sole authority to grant state video franchises pursuant to the Digital Infrastructure and Video Competition Act of 2006 ("the Act"). Pursuant to the Act, the city shall receive a franchise fee and a fee for public, educational and government (PEG) purposes from all state video franchise holders (hereinafter "state franchisee") operating within the city. Additionally, the city has the responsibility to establish and enforce penalties, consistent with state law, against all state franchisee's operating within the city for violations of customer service standards set by the state.

(Ord. No. NS-2774, § 3, 9-2-08)

a. A state franchisee that offers video service within the boundaries of the city, shall calculate and remit a state franchise fee equal to five (5) percent of the gross revenue of that state franchisee.

b. A state franchisee that offers video service within the boundaries of the city of shall calculate and remit, a fee equivalent to one (1) percent of that state franchisee's gross revenue, for the support of public, educational and governmental (PEG) access facilities and activities within the local franchise service area.

c. The state franchise fee and PEG support fee shall be remitted to the city on a quarterly basis within forty-five (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 state franchise fee and PEG support fee. Payments shall be sent to the city parks, recreation and community services agency.

d. Gross revenue, for the purposes of subsections (a) and (b) above, shall have the definition set forth in California Public Utilities Code § 5860.

e. Not more than once annually, the city manager or his designee may examine and perform an audit of the business records of a state franchisee(s) to the extent reasonably necessary to ensure compliance with the Act and this division.

(Ord. No. NS-2774, § 3, 9-2-08)

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 services.

b. The city manager, or the city manager's designee, shall monitor the compliance of state franchisee's with respect to state and federal customer service and protection standards. The city manager will provide the state franchisee written notice of any material breaches of applicable customer service standards, and will allow the state franchisee thirty (30) days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the 30-day time period will be subject to the following penalties to be imposed by the city:

(1) For the first occurrence of a material breach, a fine of five hundred dollars ($500.00) shall be imposed for each day the material breach remains in effect, not to exceed one thousand five hundred dollars ($1,500.00) for each material breach.

(2) For a second material breach of the same nature within twelve (12) months, a fine of one thousand dollars ($1,000.00) shall be imposed for each day the violation remains in effect, not to exceed three thousand dollars ($3,000.00) for each material breach.

(3) For a third or further violation of the same nature within twelve (12) months, a fine of two thousand five hundred dollars ($2,500.00) shall be imposed for each day the material breach remains in effect, not to exceed seven thousand five hundred dollars ($7,500.00) for each occurrence of the material breach.

c. Decisions by the city manager to assess monetary penalties against a state franchisee are final. The state franchisee or any person aggrieved by a decision of the city manager may appeal that decision in writing to the city council in accordance with the procedures specified in chapter 3 of this Code. The appeal letter must be accompanied by the fee established by the city council for processing the appeal.

d. Any fine imposed on a state franchisee shall be paid to the city. As provided for in the California Public Utilities Code § 5900(g), the city shall submit one-half (frax;1;2;) of all fines received from a state video franchise holder to the digital divide account established by California Public Utilities Code § 280.5.

(Ord. No. NS-2774, § 3, 9-2-08)