2.11.060 Franchise fee.

   (a)   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 2.11, "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 each calendar quarter. Each payment shall be accompanied by a summary explaining the basis for the calculation of the franchise fee.

   (d)   If a state franchisee fails to pay the franchise fee when due, or underpays the proper amount due, the state franchisee shall pay a late payment charge at an annual interest rate equal to the highest prime lending rate during the period of delinquency, plus one percent.

(Ord. 4945 § 9, 2007)

2.11.070 Public, education and government access channel capacity and support.

   (a)   PEG Channel Capacity.

   (1)   A state franchisee shall designate and activate seven PEG channels on its network. The state franchisee shall designate and activate the seven PEG channels within three months from the date that the state franchisee receives a state franchise to provide video service in an area including the city, provided, however, that this three-month period shall be tolled for such a period, and only for such a period, during which the state franchisee's ability to designate or provide such PEG capacity is technically infeasible, as provided in Section 5870(a) of the California Public Utilities Code.

   (2)   A state franchisee shall provide an additional PEG channel when the standards set forth in Section 5870(d) of the California Public Utilities Code are satisfied by the city or any entity designated by the city to be responsible for PEG access channel capacity and support.

   (b)   PEG Support.

   (1)   Amount of PEG Support Fee.

   (A)   Except as provided in subparagraphs (B) and (C), every state franchisee operating within the jurisdictional boundaries of the city shall pay a PEG support fee to the city in the amount of eighty-eight cents ($0.88) per month per subscriber within the jurisdictional boundaries of the city.

   (B)   Upon the expiration of the Comcast Franchise or its earlier termination pursuant to Section 5840(o)(3) of the California Public Utility Code, every state franchisee operating within the jurisdictional boundaries of the city shall pay a new PEG support fee to the city in the amount of eighty-eight cents ($.88) per month per subscriber in the city.

   (C)   The PEG support fee established by the city pursuant to paragraph (b)(1)(B) shall expire with respect to a particular state franchisee upon the expiration of that state franchisee's state franchise, and the city shall, by ordinance, reauthorize the PEG support fee for that state franchisee upon such expiration.

   (2)   The PEG support fee shall be used by the city for PEG purposes consistent with state and federal law.

   (3)   A state franchisee shall remit the PEG support 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 PEG support fee.

   (4)   If a state franchisee fails to pay the PEG support fee when due, or underpays the proper amount due, the state franchisee shall pay a late payment charge at an annual interest rate equal to the highest prime lending rate during the period of delinquency, plus one percent or the highest rate allowed by California law, whichever is lower.

   (c)   PEG Carriage and Interconnection.

   (1)   State franchisees shall ensure that all PEG channels are receivable by all subscribers, whether they receive digital or analog service, or a combination thereof, without the need for any equipment other than that needed to receive the lowest cost tier of service. PEG access capacity provided by a state franchisee shall be of similar quality and functionality to that offered by commercial channels on the state franchisee's lowest cost tier of service unless the PEG signal is provided to the state franchisee at a lower quality or with less functionality.

   (2)   If a state franchisee and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement for PEG carriage, the city shall require the incumbent cable operator to allow the state franchisee to interconnect its network with the incumbent cable operator's network at a technically feasible point on the state franchisee's network as identified by the state franchisee. If no technically feasible point of interconnection is available, the state franchisee shall make interconnection available to the PEG channel originator and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by the state franchisee requesting the interconnection unless otherwise agreed to by the parties.

   (d)   Institutional Network and Other In-Kind PEG Facilities and Cable Service Support Obligations. The incumbent cable operator's obligation to provide and support PEG channel facilities and institutional networks and to provide free cable service to schools and other public buildings as provided in the Comcast Franchise shall continue until July 25, 2010.

   (e)   PEG support fee reauthorizations.

   (1)   On expiration and renewal of AT&T’s state franchise on March 30, 2017, the city hereby reauthorizes the PEG support fee.

   (2)   On expiration and renewal of Comcast’s state franchise on January 2, 2018, the city hereby reauthorizes the PEG support fee.

(Ord. 5424 § 2, 2018: Ord. 5411 § 2, 2017: Ord. 4990 § 2, 2008: Ord. 4945 § 10, 2007)

2.11.080 Audits and records.

   (a)   Not more than once annually, the city or its designee may examine and audit the business records of a state franchisee to ensure compliance with the franchise fee payment obligations of Section 2.11.060 and the PEG support fee payment obligations of Section 2.11.070(b).

   (b)   A state franchisee shall keep all business records reflecting any gross revenues, even if there is a change in ownership of the state franchisee, for a least four years after such gross revenues are recognized by the state franchisee on its books and records. In the case of subscriber numbers used for calculating the PEG fee, a state franchisee shall keep data on the number of its subscribers in the city, even if there is a change in ownership of the state franchisee, for at least four years after the close of each calendar quarter on which the PEG support fee is to be paid.

   (c)   To the extent consistent with DIVCA and other applicable law, the city may request, and a state franchisee shall provide, information and books and records to the extent necessary to monitor a state franchisee's compliance with this Chapter 2.11.

(Ord. 4945 § 11, 2007)

2.11.090 State franchise service obligations.

   The city may bring complaints to the commission that a state franchisee is not offering video service as required by Section 5890 of the California Public Utilities Code.

(Ord. 4945 § 12, 2007)

2.11.100 Customer service and protection.

   (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 cable coordinator shall monitor the compliance of state franchisees with respect to the state and federal customer service and consumer protection standards set forth in paragraph (a). The cable coordinator will provide a state franchisee with written notice of any material breaches of applicable customer service or consumer protection standards, and will allow the state franchisee thirty days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the thirty-day time period will be subject to the following penalties to be imposed by the city:

   (1)   For the first occurrence of a violation, a fine of $500.00 shall be imposed for each day the violation remains in effect, not to exceed $1,500.00 for each violation.

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

   (3)   For a third or further violation of the same nature within twelve months, a fine of $2,500.00 shall be imposed for each day the violation remains in effect, not to exceed $7,500.00 for each violation.

   (c)   A state franchisee may appeal a penalty assessed by the cable coordinator to the council within sixty days of the initial assessment. The city council shall hear all evidence and relevant testimony and may uphold, modify or vacate the penalty. The council's decision on the imposition of a penalty shall be final.

(Ord. 4945 § 13, 2007)