This chapter implements the Digital Infrastructure and Video Competition Act of 2006, set forth at Public Utilities Code Section 5800 et seq. (the "Act"; AB 2987). The Act creates a process for the state to grant video service franchises. It will be administered by the California Public Utilities Commission (CPUC).
Under the Act, local cities have retained certain authorities. It is the purpose of this chapter to implement that local authority in the city of Waterford.
(Ord. 09-01 §1, 2009)
The terms "video service," "video franchise," and "holder"
shall have the same meaning as those terms are defined in the Public Utilities Code Section 5830.
"Gross revenue"
has the meaning set forth in California Public Utilities Code Section 5860(d).
Terms not defined here shall have the same meaning as established in (in order of priority): (1) the California Public Utilities Code; (2) commission rules implementing the California Public Utilities Code; and (3) Title 47 United States Code Title VI.
(Ord. 09-01 §1, 2009)
A. 
Copy of Application to City. An applicant for a state video franchise within the city must concurrently provide a complete copy to the city manager of any application or amendments to an application filed with the California Public Utilities Commission (CPUC). (PUC Section 5840(n).)
B. 
City manager Comments to CPUC. Within thirty days of receipt, the city manager will provide any appropriate comments to the CPUC regarding an application or an amendment to an application for a state video franchise.
(Ord. 09-01 §1, 2009)
A. 
Franchise Fee. Any state video franchise holder operating within the city shall pay a fee to the city equal to five percent of the gross revenues of that state video franchise holder derived from the operation of its franchise within the city (PUC Section 5840(q)). A state video franchise holder shall pay the franchise fee to the city quarterly, within forty-five days after the end of each calendar quarter. Each payment shall be accompanied by a summary explaining the basis for the calculation of the fee.
B. 
Public, Educational or Governmental (PEG) Fees.
1. 
Fee to take effect upon expiration of incumbent operator's franchise. Any state video franchise holder operating within the city upon the expiration of the incumbent operator's franchise shall pay a PEG fee to the city equal to one percent of the gross revenue of that state video franchise holder derived from the operation of its franchise within the city. A state video franchise holder shall pay the PEG fee to the city quarterly, within forty-five days after the end of each calendar quarter. The city will use the receipts of the PEG fee for purposes consistent with state and federal law. (PUC Section 5870(n).)
2. 
PEG Channel Capacity. A state video franchise holder that uses the public rights-of-way shall designate sufficient capacity on its network to enable the carriage of at least two PEG access channels.
a. 
PEG access channels shall be for the exclusive use of the city or its designees to provide public, educational, or governmental programming.
b. 
Advertising, underwriting, or sponsorship recognition may be carried on the PEG access channels for the purpose of funding PEG related activities.
c. 
The PEG access channels shall be carried on the basic service tier; provided, however, that if the technology used eliminates the basic service tier, then all PEG access channels shall be placed on the cable system in a manner equivalent to local over-the-air broadcast stations.
d. 
To the extent feasible, the PEG access channels shall not be separated numerically from other channels carried on the basic service tier, and the channel numbers for the PEG access channels shall be the same channel numbers used by the incumbent cable operator unless prohibited by federal law.
e. 
After the initial designation of PEG access channel numbers, the channel numbers shall not be changed without the prior written consent of the city, unless the change is required by federal law.
f. 
Each PEG access channel shall be capable of carrying a National Television System Committee television signal.
C. 
Interconnection. Where technically feasible, a state video franchise holder and an incumbent cable operator shall negotiate in good faith to interconnect their networks for the purpose of providing PEG access channel programming. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. State video franchise holders and incumbent cable operators shall provide interconnection of the PEG access channels on reasonable terms and condition and may not withhold the interconnection. If a state video 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 video franchise holder to interconnect its network with the incumbent's network at a technically feasible point on the holder's network as identified by the holder. If no technically-feasible point for interconnection is available to the channel originator and shall provide the facilities necessary for the interconnection. The cost on any interconnection shall be borne by the state video franchise holder requesting the interconnection unless otherwise agreed to by the parties.
D. 
Emergency Alert System and Emergency Overrides. A state video franchise holder must comply with the Emergency Alert System requirements of the Federal Communications Commission in order that the emergency messages may be distributed over the holder's network. Provisions in the city-issued franchise authorizing the city to provide local emergency notifications shall remain in effect, and shall apply to all state video franchise holders in the city for the duration of the city-issued franchise, or until the term of the franchise would have expired had it not been terminated pursuant to subdivision (o) of Section 5840 of the California Public Utilities Code or until January 1, 2009, whichever is later.
E. 
Authority to Examine Records. The city manager may examine business records of a holder of a state video franchise to ensure compliance with this section. The city may conduct such an examination not more than once each year. (PUC Section 5860(i).)
(Ord. 09-01 §1, 2009)
A. 
Compliance with Customer Service and Protection Standards. 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 in the city. (PUC Section 5900(a) and (b).)
B. 
City Monitoring—Notice of Violation—Penalties. The city manager has authority to monitor the compliance of state video franchise holders with respect to state and federal customer service and protection standards. The city manager 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. A material breach not remedied within the thirty-day time period will be subject to the following city penalties:
1. 
For the first occurrence of a violation, a fine of five hundred dollars shall 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 one thousand dollars shall 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 two thousand five hundred dollars shall be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars for each violation. (PUC Section 5900(c) and (d).)
C. 
Appeal. 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 set the matter for public hearing and hear all evidence and relevant testimony. The council may uphold, modify, or vacate the denial. The city council's decision on the imposition of a penalty is final.
(Ord. 09-01 §1, 2009)
A. 
A state video franchise holder is required to obtain an encroachment permit under Waterford Municipal Code, Chapter 12.24, before constructing, operating, maintaining, or repairing its facilities within the public right-of-way.
B. 
The city shall either approve or deny an encroachment permit application within ten days of receiving a completed application. An application is considered complete when the applicant has complied with all statutory requirements, including the California Environmental Quality Act (Public Resources Code Section 21000 and following).
C. 
If the city denies the encroachment permit, it shall provide the applicant with a detailed explanation of the reason for the denial. A determination regarding the encroachment permit by the public works director may be appealed to the city council.
(Ord. 09-01 §1, 2009)