It is the purpose of this chapter to implement within the jurisdictional boundaries of the City of Davis the provisions of the Digital Infrastructure and Video Competition Act of 2006, Assembly Bill 2987 (Ch. 700, Stats. 2006), codified at Public Utilities Code Section 5800, et seq., (the "Act"), and the rules of the California Public Utilities Commission promulgated thereunder that are applicable to a "local franchising entity" or a "local entity" as defined in Sections 5830(h) and 5830(k) of the California Public Utilities Code, respectively. Consistent with that purpose, the provisions of this chapter are to be construed in a manner that is consistent with the California Public Utilities Code and the applicable rules of the Commission promulgated thereunder.
(Ord. 2317 § 1, 2008)
(a) 
As provided in Section 8B.03.090, the franchise fee established within the city for cable franchises is five percent of gross revenues. Every state franchisee operating within the jurisdictional boundaries of the city shall pay a franchise fee to the city in the amount of five percent of that state franchisee's gross revenues derived from the operation of its network to provide cable or video services within the city.
(b) 
For purposes of this chapter, "gross revenue" shall have the meaning set forth in Section 5860 of the California Public Utilities Code.
(c) 
A state franchisee shall remit the franchise fee to the city quarterly, within forty-five days after the end of the quarter for that calendar quarter. Each payment shall be accompanied by a summary explaining the basis for the calculation of the franchise fee. If the state franchisee does not pay the franchise fee when due, the state franchisee shall pay a late payment charge at a rate per year equal to the highest prime lending rate during the period of delinquency, plus one percent. If the state franchisee has overpaid the franchise fee, it may deduct the overpayment from its next quarterly payment.
(Ord. 2317 § 1, 2008)
(a) 
The current cable franchise designates three channels for public, educational and government (PEG) programming. Local franchisees and holders of state franchises under the Act shall provide three PEG channels.
(b) 
All state franchisees shall comply with the provisions of the Act related to PEG channels. Without limiting the foregoing, the PEG channels shall all be carried on the basic service tier. To the extent feasible, the PEG channels shall not be separated numerically from other channels carried on the basic service tier and the channel numbers for the PEG channels shall be the same channel numbers used by the incumbent cable operator unless prohibited by federal law and shall provide picture and sound quality and channel accessibility and location equal to, or substantially equal to, that provided by the incumbent cable providers. After the initial designation of PEG channel numbers, the channel numbers shall not be changed without the agreement of the local entity unless the change is required by federal law.
(c) 
A state franchise holder shall have three months from the date the city requests the PEG channels to designate the capacity. However, the three-month period shall be tolled by any period during which the designation or provision of PEG channel capacity is technically infeasible, including any failure or delay of the incumbent cable operator to take adequate interconnection available, as required by the Act. Any state franchise holder who believes that the designation or provision of PEG channel capacity is technically infeasible, shall provide to the city, in writing, its reasons therefor and its plan for correcting or solving the infeasibility. The city may hold a hearing on the claim of infeasibility and, thereafter, take such action as the city deems proper to require the designation and provision of the PEG channels on the state franchise holder's system.
(Ord. 2317 § 1, 2008)
(a) 
As of December 31, 2006, pursuant to the most recent ordinance granting a franchise renewal, the city was imposing a fee for public, educational and government access (PEG) channel facilities in the amount of eighty-five cents per month, per subscriber. Pursuant to Section 5870(l) of the California Public Utilities Code, every state franchisee operating within the boundaries of the city shall be responsible for a PEG channel facility fee in this same amount, and in accordance with the same procedures imposed upon the local cable operator, until the expiration of the current local cable operator's franchise.
(b) 
The PEG channel facilities fee, imposed as of December 31, 2006, is approximately equivalent to one and one-half percent of gross revenues. As required by Section 5870(n) of the California Public Utilities Code, the city hereby establishes a fee of one and one-half percent of gross revenues for PEG channel facilities capital support. Upon the expiration of the current local cable operator franchise, every state franchisee operating within the boundaries of the city shall pay a PEG support fee in this amount. State franchisees shall remit PEG fees in the same manner as franchise fees, pursuant to Section 8B.07.020. The city shall use the PEG fees consistent with applicable state and federal law. The PEG fee may be shown as a separate line item on the regular bill of each subscriber.
(c) 
As of December 31, 2006, pursuant to the most recent ordinance granting a franchise renewal, the city also imposed on the local cable operator a one-time capital grant of three hundred fifty thousand dollars for PEG equipment and facilities. Pursuant to Section 5870(l) of the California Public Utilities Code, every state franchisee operating within the boundaries of the city shall be responsible for a prorata, per-subscriber share of any outstanding capital grant payments.
(d) 
The PEG channel facilities fee authorized by subsection (b) of this section is hereby reauthorized to the extent required by Section 5870(n) of the California Public Utilities Code. As such, all state franchisees operating within the city whose state franchise is renewed after March 1, 2017 shall continue to collect and remit the PEG channel facilities fee as set forth in this section.
(Ord. 2317 § 1, 2008; Ord. 2494 § 1, 2017)
(a) 
A state franchisee shall comply with Sections 53055, 53055.1, 53055.2 and 53088.2 of the California Government Code; the FCC customer service and notice standards set forth in Sections 76.309, 76.1602, 76.1603 and 76.1619 of Title 47 of the Code of Federal Regulations; Section 637.5 of the California Penal Code; the privacy standards of Section 551 of Title 47 of the United States Code; and all other applicable state and federal customer service and consumer protection standards pertaining to the provision of video service, including any such standards hereafter adopted. In case of a conflict, the stricter standard shall apply. All customer service and consumer protection standards under this paragraph shall be interpreted and applied to accommodate newer or different technologies while meeting or exceeding the goals of the standards.
(b) 
The city shall enforce, in the manner set forth in the Act, all customer service and protection standards contained in Section 5900 of the Act, including, without limitation, those standards set forth in Section 5900(c). The city is authorized to impose penalties for any material breach of the Act, as set forth herein.
(c) 
The maximum monetary penalties set forth in Public Utilities Code Section 5900 are hereby adopted and enacted as the applicable schedule of penalties for the material breach of the Act, including, but not limited to, Section 5900 of the Act, by a holder of a state franchise, as follows:
(1) 
Five hundred dollars per day for each material breach, not to exceed one thousand five hundred dollars for occurrence of a material breach.
(2) 
If a material breach has occurred and notice has been provided and a fine or penalty has been assessed, any subsequent breach of the same nature within twelve months, shall be subject to a penalty of up to one thousand dollars for each day of each material breach, not to exceed three thousand dollars for each occurrence of the material breach.
(3) 
If a third or further material breach of the same nature occurs within those same twelve months, and notice has been provided and a fine or penalty has been assessed, the penalties shall be increased to a maximum of two thousand five hundred dollars for each occurrence of the material breach, not to exceed seven thousand five hundred dollars for each occurrence of the material breach.
As used herein, "material breach" is defined as set forth in the Act, Public Utilities Code Section 5900.
(Ord. 2317 § 1, 2008)