295 ORDINANCE NO. 295
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE AMENDING THE GRAND TERRACE
MUNICIPAL CODE BY REPLACING CHAPTER 5.12
GOVERNING CABLE TELEVISION FRANCHISES.
WHEREAS, In 2006, the California Legislature adopted Assembly Bill 2987 establishing the
Digital Infrastructure and Video Competition Act ("DIVCA") under California Public Utilities
Code Section 5800 et seq., ending local control of cable franchising and vesting sole authority to
issue franchises to the California Public Utility Commission; and
WHEREAS, under DIVCA, the City may, by ordinance, enforce regulations against video
providers holding a state franchise ("State Video Franchise Holders"); and
WHEREAS, DIVCA also provides that State Video Franchise Holders operating within City
shall pay to City certain fees, including a franchise fee and a fee for public, education, and
governmental ("PEG")purposes, if established by City ordinance; and
WHEREAS, DIVCA also allows City to establish and enforce penalties for violations of the
customer service rules by State Video Franchise Holders;
WHEREAS, The purpose of this Ordinance is to implement the provisions of DIVCA and
thereby preserve, to the fullest extent permitted by law, the rights and authority of the City with
respect to the provision of video services within its jurisdictional limit.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE
ORDAINS AS FOLLOWS:
SECTION 1. That the City Council of the City of Grand Terrace does find, determine, and
declare that the Recitals set forth herein are true and correct and are incorporated herein as
findings of the City Council.
SECTION 2. That the Grand Terrace Municipal Code be amended by repealing Chapter 5.12
(CATV) in its entirety and replacing it with the following:
"Chapter 5.12—VIDEO FRANCHISES
5.12.010. Purpose and Authority.
This Chapter is designed to regulate video service providers holding State video
franchises and operating within the City. Under State law effective January 1, 2007, the
California Public Utilities Commission has the sole authority to grant state video service
franchises pursuant to the Digital Infrastructure and Video Competition Act of 2006 (hereinafter
"DIVCA"). Pursuant to DIVCA, the City has certain rights and responsibilities with respect to
Lf,) state video service franchise holders operating within the City. These include the receipt of a
ORDINANCE NO. 295 PAGE 1 OF 5 APRIL 26, 2016
franchise fee and a fee for Public, Educational and Government purposes, both based on a
percentage of the gross revenues of state franchise holders. Additionally, City is responsible to
establish and enforce penalties for violations of customer se7ice rules. However, DIVCA grants
all authority to adopt customer service standards to the State. The City will retain authority,
without change, over all City cable franchisees until such time as they no longer hold a valid City
cable franchise, or are no longer operating under a current or expired City cable franchise.
5.12.020. Definitions.
For purposes of this Chapter, the following words, terms, phrases, and abbreviations, and
their similar formulations, shall have the meanings given below:
"Cable operator" shall have the meaning set forth in California Public Utilities Code Section
5830.
"City"means the City of Grand Terrace.
"City Manager"means the duly appointed City Manager of the City, or his or her designee.
"CPUC"or"Commission"means the California Public Utilitl'ies Commission.
"DIVCA" or"Act"means the Digital Infrastructure and Video Competition Act of 2006.
"Gross revenue" shall have the meaning set forth in Califl mia Public Utilities Code Section
5860.
"PEG"means public, educational and government access.
"State Franchise"means a franchise issued by the CPUC pursuant to the DIVCA.
"State Franchisee" means any cable operator or video service provider that, pursuant to DIVCA,
has been granted a state franchise by the CPUC to provide icable or video service by means of
communications service equipment or facilities and whose video service area includes all or any
part of the incorporated limits of the City.
"Video Service" shall have the meaning set forth in California Public Utilities Code Section
5830.
"Video service provider" shall have the meaning set forth�in California Public Utilities Code
Section 5830.
5.12.030. State Video Service Franchise and PEG fees.
A. Any state franchisee operating within the boundaries of the City shall pay a fee to the
City equal to five percent(5%).of the gross revenue of that state franchisee.
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ORDINANCE NO. 295 PAGE 2 OF 5 APRIL 26, 2016
B. Any state franchisee operating within the boundaries of the City shall pay an additional
fee to the City equal to one percent(1%) of the gross revenue of that state franchisee, which shall
be used by the City of PEG purposes consistent with state and federal law.
5.12.040 Audit Authority.
Not more than once annually, the City Manager may examine and perform an audit of the
business records of a state franchise holder to ensure compliance with Section 5.12.030.
5.12.050. Customer Service Standards
A. A state franchisee shall comply with all applicable state and federal customer service and
protection standards pertaining to the provision of video service.
B. The City Manager shall monitor compliance of each state franchisee with respect to state
and federal customer service and protection standards. The City Manager shall provide the state
franchisee written notice of any material breach of applicable customer service standards, and
allow the state franchisee holder thirty (30) days from the receipt of the notice to remedy the
specified material breach. Material breaches not remedied within the thirty (30) daytime period
will be subject to the following penalties to be imposed by and payable to the City:
1. For the first occurrence of a violation, a fine of$500.00 may 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 (12) months, a fine of$1,000.00
may 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 (12) months, a fine of
$2,500.00 may be imposed for each day the violation remains in effect, not to exceed
$7,500 for each violation.
C. A state franchisee may appeal a penalty assessed by the City Manager to the-City Council
within thirty (30) days of the initial assessment. Any appeal must contain,,a detailed explanation
of why the applicant believes that the finding of material breach or the i�posifion�'of.pe alties
was inconsistent with statutory requirements or authority. The City"1 o, cilshall l�e'-4r all
evidence and relevant testimony and may uphold, modify, and vacate the-- It' r
D. As provided in Section 5900 of the California Public Utilities',Code;City shalt-submit
half of all penalties received from a franchise holder to the Digital Divide-_account established in
Section 280.5 of the California Public Utilities Code. ✓ J '
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5.12.060 City Response to State Franchise Application 1
A. Applicants for state video franchises within the boundaries of the City must concurrently
provide complete copies to the City of any application, or amendments to applications, filed with
the CPUC. One complete copy must be provided to the City',Clerk, and a second complete copy
to the City Manager.
B. Within .thirty (30) days of receipt, the City Manager will provide any appropriate
comments to the CPUC regarding an application or amendment to an application for a state
video service franchise.
SECTION 2. If any section, subsection, sentence, clause, or phrase of this ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
ordinance. The City Council hereby declares that it would have passed this ordinance, and each
and every section, subsection, sentence, clause and phrase thereof not declared invalid or
unconstitutional without regard to whether any portion of the ordinance would be subsequently
declared invalid or unconstitutional.
SECTION 3. This Ordinance shall take effect thirty (30) days after its final passage and
within (15) days after its passage, the City Clerk of the City of Grand Terrace shall certify to the
passage and adoption of this ordinance and to its approval by the Mayor and City Council and
shall cause the same to be published in a newspaper in the manner required by law.
PASSED, APPROVED,AND ADOPTED this 26th day of April 2016. `
4arc ayor
ATTEST: APPROVED AS TO FORM:
T e ares� f�.C erk Richard A s, II City ttorney
ORDINANCE NO. 295 PAGE 4 OF 5 APRIL 26, 2016
a
I HEREBY CERTIFY the foregoing ordinance was duly adopted by the City Council of
the City of Grand Terrace at a regular meeting held on the 26`f' day of April, 2016 by the
following vote:
AYES: Council Members Hussey, Wilson, Mitchell, Mayor Pro Tern Robles,
Mayor McNaboe
NOES: None
ABSENT: None
ABSTAIN: None
Pat Jacqu Nar s, City Ik
ORDINANCE NO. 295 PAGE 5 OF 5 APRIL 26, 2016