HomeMy WebLinkAboutOrdinances_2771_CCv0001.pdf ORDINANCE NO. 2771
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER
5.76 OF THE REDLANDS MUNICIPAL CODE TO IMPLEMENT THE
DIGITAL INFRASTRUCTURE AND VIDEO COMPETITION ACT OF 2006.
WHEREAS, the development of cable, video and telecommunications services and
systems provides benefits for the residents of the City of Redlands ("City"); and
WHEREAS, the Digital Infrastructure and Video Competition Act of 2006 ("DIVCA"),
codified in California Public Utilities Code section 5800, et seq., established a regulatory
structure whereby the State, by and through the California Public Utilities Commission
("CPUC"), as the sole franchising authority grants franchises, regulates build-out and non-
discrimination standards, imposes user and application fees, and establishes franchise fees to
video service providers; and
WHEREAS, the CPUC's sole authority to grant franchises necessitates that the City
repeal its existing Cable Television Systems regulations, currently set forth in Chapter 5.76 of
the City's Municipal Code, which provide that video service providers must obtain franchises
locally through the City; and
WHEREAS, in exchange for the use of the City's rights-of-way and other public
facilities, DIVCA requires all holders of state franchises that deliver video services within the
City's jurisdiction to pay the City a five percent (5%) franchise fee as rent, unless the City
reduces that amount; and
WHEREAS, DIVCA establishes that local entities such as the City have the authority to
implement, and are responsible for the administration of certain provisions of DIVCA; including,
but not limited to, managing the rights-of-way, requiring the provision of public, educational,
and government ("PEG") channels, regulating payment of franchise fees and fees for PEG
programming, and enforcing federal and state customer service and protection standards; and
WHEREAS, DIVCA provides that the City may, by ordinance, establish a fee of up to
one percent(1%)to support facilities for PEG channels which is paid for by customers; and
WHEREAS, section 5900(d) of DIVCA provides that the City shall, by ordinance or
resolution,provide a schedule of penalties for any material breach of a holder of a state franchise
to comply with certain customer service standards;
THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS
FOLLOWS:
Section 1. Chapter 5.76 of the Redlands Municipal Code, entitled "Regulation of Cable
Television Systems,"is hereby repealed in its entirety and rewritten to read as follows:
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"CHAPTER 5.76
STATE VIDEO FRANCHISES
Sections:
5.76.010: Title
5.76.020: Purpose
5.76.030: Definitions
5.76.040: Franchise Fee
5.76.050: Public, Educational and Government Channels
5.76.060: Audit Authority
5.76.070: Customer Service and Schedule of Penalties
5.76.010. Title. This chapter shall be referred to as the City's State Video Franchise
Regulations.
5.76.020. Purpose. The purpose of this chapter is to regulate video service providers
holding state video franchises within the jurisdictional boundaries of the City as
specifically permitted by the Digital Infrastructure and Video Competition Act of 2006
("DIVCA") and the rules of the California Public Utilities Commission promulgated
thereunder.
5.76.030. Definitions. For purposes of this chapter, the following words and phrases
shall have the meanings respectively ascribed to them by this section:
A. "Cable Service" shall be ascribed the meaning set forth in section 5830 of
DIVCA.
B. "Franchise" means an initial authorization, or renewal of an authorized,
issued by a franchising entity, regardless of whether the authorization is designated as a
franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, that
authorizes the construction and operation of any network in the right-of-way capable of
providing video service to subscribers.
C. "Gross revenues" means all revenue actually received by the holder of a
state franchise, as determined in accordance with generally accepted accounting
principles, that is derived from the operation of the holder's network to provide cable or
video service within the jurisdiction of the City, as more particularly set forth in section
5860 of DIVCA.
D. "Holder" means a person or group of persons that has been issued a state
franchise from the California Public Utilities Commission pursuant to DIVCA.
E. "Locally produced video programming" shall be ascribed the meaning set
forth in section 58470(d)of DIVCA.
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F. "Material Breach" means any substantial and repeated failure of a video
service provider to comply with service quality and other standards specified in section
5900(a)of DIVCA.
G. "State franchise"means a franchise that is issued pursuant to DIVCA.
H. "Subscriber" means a person who lawfully receives video service from the
holder of a state franchise for a fee.
I. "Video service" shall be ascribed the meaning set forth in section 5830 of
the DIVCA.
J. "Video service provider"means an entity providing video services.
5.76.040. Franchise Fee. Every holder operating within the jurisdictional boundaries of
the City shall pay a franchise fee to the City in the amount of five percent (5%) of that
holder's gross revenues derived from the operation of its network to provide cable
services or video services within the City, which shall be remitted per the provisions set
forth in DIVCA.
5.76.50. Public, Educational and Government Channels.
A. Upon request by the City, a holder shall initially activate and provide up to
three (3) Public, Educational and Government channels, pursuant to the provisions of
DIVCA.
B. Every holder operation within the jurisdictional boundaries of the City
shall pay a Public, Educational and Government channels fee to the City in the amount of
up to one percent (1%), as may be set by resolution of the City Council, of that holder's
gross revenues derived from the operation of its network to provide cable services or
video services within the City to support facilities for Public Educational and
Government channels, as permitted by DIVCA.
5.76.060. Audit Authority. Not more than once annually, the City Manager, or the City
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 this chapter.
5.13.070. Customer Service and Schedule of Penalties.
A. A holder shall comply with sections 53055, 53055.1, 53055.2 and 53088.2
of the Government Code, and any other customer service standards pertaining to the
provision of video service established by federal law or regulation or adopted by
subsequent amendment by the State Legislature. 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.
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B. A holder shall comply with section 637.5 of the California Penal Code and
the privacy standards of section 551 of Title 47 of the United States Code.
C. The City is authorized to enforce all customer service and protection
standards contained set forth in DIVCA, with respect to complaints received from the
residents within the City's jurisdiction. The City is authorized to impose penalties for
any material breach of any applicable customer service standards, as set forth herein.
D. The City Manager, or the City Manager's designee, is authorized to
monitor the compliance of holders with respect to state and federal customer service and
protection standards, shall provide the holder with written notice of any material breaches
of applicable customer service standards, and allow the holder thirty (30) days from the
receipt of the notice to remedy the specified material breach. No monetary penalties shall
be assessed for a material breach if the breach is out of the reasonable control of the
holder. Material breaches not remedied within the thirty (30) day time period will be
subject to the maximum penalties imposed by the City, as described in subsection E
below. A material breach for the purposes of assessing penalties shall be deemed to have
occurred for each day, following the expiration of the above-stated thirty (30) day cure
period, in which any material breach has not been remedied by the video service
provider, irrespective of the number of customers or subscribers affected. Any penalty
shall be provided to the City by the violating state franchise holder and the City shall
submit on-half of the penalty to the Digital Divide Account established through section
280.5 of the Public Utilities Code.
E. The maximum monetary penalties set forth in California Public Utilities
Code section 5900 are hereby adopted and enacted as the applicable schedule of penalties
for the material breach of the applicable customer service standards by a holder, as
follows:
1. For the first occurrence of a material breach, the monetary penalty shall be
five hundred dollars ($500) for each day of each material breach.
2. If a material breach has occurred and notice has been provided and a fine
or penalty has been assessed, for any subsequent material breach of the
same nature within twelve (12) months, the penalty shall be one thousand
dollars ($1,000) for each day of each material breach, not to exceed three
thousand dollars ($3,000) for each occurrence of the material breach.
3. If a third or further material breach of the same nature occurs within those
same twelve (12) months, and notice has been provided and a fine or
penalty has been assessed, the penalty shall be two thousand five hundred
dollars ($2,500.00) for each day of each material breach, not to exceed
seven thousand five hundred dollars ($7,500.00) for each occurrence of
the material breach."
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Section 2. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of
this ordinance and shall cause it, or a summary of it, to be published once in the Redlands Daily
Facts, a newspaper of general circulation within the City, and thereafter, this ordinance shall take
effect as provided by law.
Pete Aguilar, Mayor
ATTEST:
1-7
Sam Irwin, City erk
1, Sam Irwin, City Clerk, City of Redlands,hereby certify that the foregoing Ordinance was duly
adopted by the City Council at the regular meeting thereof, held on the I st day of May 2012,by
the following vote:
AYES: Councilmembers Harrison, Bean, Foster, Gardner; Mayor Aguilar
NOES: None
ABSENT: None
ABSTAIN: None
Sam Irwin, City Clerk
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