Saratoga Municipal Code Art. 4-26 Video Services

This Article implements the "Digital Infrastructure and Video Competition Act of 2006" (the "Act," Public Utilities Code § 5800 et seq.). All terms used in this Article shall be defined as defined by that Act or this Code; in the event a term is defined in the Act and this Code, the definition in the Act shall apply to this Section.

(Ord. 261 § 2 (part), 2008)

This Article applies to all video service providers serving Saratoga residents pursuant to a State franchise.

(Ord. 261 § 2 (part), 2008)

(a) All video service providers subject to this Article shall comply with the customer service standards mandated by Section 5900 of the Public Utilities Code and with the requirements of Section 53088.2(e) of the Government Code concerning standards for answering customer calls for installation, service, and complaints.

(b) Monetary penalties may be assessed for a material breach of those standards unless the breach is out of the reasonable control of the video service provider. One-half of each penalty collected shall be submitted to the Digital Divide Account established by the Act. The penalties shall be as follows:

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

(2) Notwithstanding subsection (b)(1) of this Section, if notice has been provided and a penalty has been assessed pursuant to subsection (b)(1) of this Section and a subsequent material breach of the same nature occurs within twelve months, an amount of one thousand dollars shall be assessed for each day of each material breach, not to exceed three thousand dollars for each occurrence of the material breach.

(3) Notwithstanding subsections (b)(1) and (b)(2) of this Section, if notice has been provided and a fine or penalty has been assessed pursuant to subsection (b)(2) of this Section, and a third or further material breach of the same nature occurs within twelve months of the original breach, an amount of two thousand five hundred dollars shall be assessed for each day of each material breach, not to exceed seven thousand five hundred dollars for each occurrence of the material breach.

(c) Prior to assessing any penalty pursuant to this Article, the City shall notify the video service provider of the alleged material breach and allow the video service provider at least thirty days from receipt of the notice to remedy the specified material breach.

(Ord. 261 § 2 (part), 2008)

Any State franchise holder operating within the City shall pay to the City a State franchise fee equal to five percent of the gross revenues of it or any affiliate that are subject to a franchise fee under California Public Utilities Code Section 5860.

(Ord. 261 § 2 (part), 2008)

(a) Each State franchise holder, and each incumbent cable operator operating under a City franchise issued prior to December 31, 2006 shall negotiate in good faith to interconnect their networks for the purpose of providing PEG programming. Interconnection may be accomplished by any means authorized under Public Utilities Code Section 5870(h). Each State franchise holder and incumbent cable operator shall provide interconnection of PEG channels on reasonable terms and conditions and may not withhold the interconnection. If a State franchise holder and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement, the City may require the incumbent cable operator to allow the State franchise holder to interconnect its network with the incumbent cable operator's network at a technically feasible point on the State franchise holder's network as identified by the State franchise holder. If no technically feasible point for interconnection is available, each State franchise holder will make an interconnection available to each channel originator providing PEG programming to an incumbent cable operator, and will provide the facilities necessary for the interconnection. The cost of any interconnection will be borne by the State franchise holder requesting the interconnection unless otherwise agreed to by the State franchise holder and the incumbent cable operator. The City reserves the right to request that State video franchise holders designate and activate PEG channels on their networks in accordance with the rules set forth in Section 5870 of the California Public Utilities Code. A State video franchise holder shall provide an additional PEG channel when the standards set forth in Section 5870(d) of the California Public Utilities Code are satisfied.

(b) Any State franchise holder operating within the City shall pay to the City a fee to support public, educational, and governmental programming ("PEG fee") equal to one percent of the gross revenues of it or any affiliate that are subject to a franchise fee under California Public Utilities Code Section 5860.

(Ord. 261 § 2 (part), 2008)

The State franchise fee and the PEG fee 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 State franchise fee and a separate payment for the PEG fee not later than forty-five (45) days after the end of each calendar quarter. Each payment made shall be accompanied by a report, detailing how the payment was calculated, containing such information as the City Manager may require consistent with DIVCA. Unless the City Manager provides otherwise, the summary statement shall identify: (a) revenues received from subscribers, by category, with service revenues broken out by service levels; (b) any charges to subscribers for which revenues were received, but on which a franchise fee was not paid; and (c) where the fee is paid on an allocated portion of revenues received, the total revenues received; the allocation factor; and how the allocation factor was calculated. In the event a State franchise holder fails to make payments required by this Article on or before the due dates specified, the City may, to the extent consistent with State law, 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. 261 § 2 (part), 2008)

The City may audit the business records of the holder of a State franchise in a manner consistent with California Public Utilities Code Section 5860(i).

(Ord. 261 § 2 (part), 2008)

Each State franchise holder or applicant for a State franchise shall file with the City a copy of all applications or notices that the State franchise holder or applicant is required to file with the public utilities commission. Unless otherwise specified in this Chapter, all notices or other documentation that a State franchise holder is required to provide to the City under Division 6 of the California Public Utilities Code shall be provided to the City Manager.

(Ord. 261 § 2 (part), 2008)