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AGENDA TITLE: Ordinance No. 1826 Entitled, "An Ordinance of the City Council of the City of Lodi
Amending Lodi Municipal Code Title 5 — Permits and Regulations — By Adding
Chapter 5.17, 'State Video Franchises"'
MEETING DATE: November 18,2009
PREPARED BY: City Manager's Office
RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title)
adopting the attached Ordinance No. 1826.
BACKGROUND INFORMATION: Ordinance No. 1826 Entitled, "An Ordinance of the City Council of
the City of Lodi Amending Lodi Municipal Code Title 5 — Permits and
Regulations — By Adding Chapter 5.17, 'State Video Franchises'"
was introduced at the regular City Council meeting of November4, 2009.
ADOPTION: With the exception of urgency ordinances, no ordinance may be passed within five days of
its introduction. Two readings are therefore required — one to introduce and a second to adopt the
ordinance. Ordinances may only be passed at a regular meeting or at an adjourned regular meeting;
except for urgency ordinances, ordinances may not be passed at a special meeting. Id. All ordinances
must be read in full either at the time of introduction or at the time of passage, unless a regular motion
waiving further reading is adopted by a majority of all council persons present. Cal. Gov fCode§ 36934.
Ordinances take effect 30 days after their final passage. Cal. Gov fCode§ 36937.
This ordinance has been approved as to form by the City Attorney.
FISCAL IMPACT: Adopting the ordinance with a I -percent PEG fee will generate
approximately $80,000 per year for video -related capital acquisition/repairs.
For a customer subscribing only to the 100 -channel digital starter service,
the increased cost would be approximately 58 cents a month.
FUNDING AVAILABLE: Not applicable.
Jeff 6doe
Communications Specialist
Attachments:
Ordinance
APPROVED:
PWFi§Eg, City Manager
ORDINANCE NO. 1826
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF LODI AMENDING LODI MUNICIPAL CODE
TITLE 5 — PERMITSAND REGULATIONS— BYADDING
CHAPTER 5.17, "STATE VIDEO FRANCHISES"
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WHEREAS, the Legislature of the State of California (the State) has adopted the
Digital Infrastructure and Video Competition Act of 2006 (DIVCA); and
WHEREAS, the Governor of the State of California signed DIVCA on September
29,2006; and
WHEREAS, DIVCA became effective on January 1,2007; and
WHEREAS, DIVCA establishes a regulatory structure for the State to issue
franchises to video service providers; and
WHEREAS, DIVCA establishes that local entities, such as the City of Lodi, are
responsiblefor administration and implementation of certain provisions of DIVCA; and
WHEREAS, DIVCA requires that the City establish, by ordinance, financial
support provisions for Public, Educational and Governmental Access (PEG) channel
facilities; and
WHEREAS, DIVCA requires that the City adopt, by ordinance or resolution, a
schedule of penalties for any material breach by a State video franchise holder for
violation of customer service and protection standards that the City is permitted to
enforce; and
WHEREAS, as of November 4, 2009, there are two State -franchised cable
operators providing cable service within the City; and
WHEREAS, two of the cable franchises in the City are held by Comcast and
AT&T; and
WHEREAS, former City franchise -holder Comcast no longer provides noncash
support to the City for PEG programming or facilities.
BE IT ORDAINED BYTHE CITY COUNCIL OF THE CITY OF LODI AS FOLLOWS:
SECTION 1. Lodi Municipal Code Title 5 — Permits and Regulations — is hereby
amended by adding Chapter 5.17, "State Video Franchises," to read as follows:
BE
CHAPTER 5.17 STATE CABLE TELEVISION FRANCHISES
Section:
5.17.010 Purpose.
5.17.020 Definitions and Interpretation of Language.
5.17.030 State Franchise Holder Fee.
5.17.040 State Franchise Holder PEG Fees.
5.17.050 Payment of Fees.
5.17.060 Audits.
5.17.070 Late Payments.
5.17.080 Lease of City Property or Network.
5.17.090 Customer Service and Consumer Protection Standards.
5.17.100 Penaltiesfor Violations of Standards.
5.17.110 General Requirements.
5.17.120 Permits.
5.17.130 Terms and Conditions.
5.17.140 Relocation of Franchise Property and Appurtenances.
5.17.150 Removal of Abandoned Facilities.
5.17.160 Notification to Residents Regarding Construction or Maintenance.
5.17.170 Identification Required.
5.17.180 Construction Requirements and Protection of Health and Safety.
5.17.200 EmergencyAlert Systems.
5.17.210 Interconnection for PEG Programming.
5.17.220 Notices.
5.17.230 Rights Reserved.
5.17.240 Compliancewith Law.
5.17.010 PURPOSE.
This Chapter applies to all cable service or video service providers who are applying for,
or have been awarded, a franchise under California Public Utilities Code Section 5800 et
seq., the Digital Infrastructure and Video Competition Act of 2006, ("DIVCA"), to serve
any area within the City of Lodi, including any cable service or video service providers
who are subject to DIVCA. By this Chapter the City of Lodi intends to assume to the
fullest extent possible all obligations, rights and privileges afforded to it by DIVCA and
any other applicable law. Moreover, to the extent this Ordinance is pre-empted by
DIVCA now or as amended in the future, the requirement of DIVCA shall control.
5.17.020 DEFINITIONSAND INTERPRETATION OF LANGUAGE.
For purposes of this Chapter, the following terms, phrases, words, and their derivations
shall have the meaning given in this section. Unless otherwise expressly stated, words
not defined in this Chapter shall be given the meaning set forth in California Public
Utilities Code, Section 5800 et seq. as amended from time to time. When not
inconsistent with the context, words used in the present tense include the future, words
in the plural number include the singular number, words in the singular number include
the plural number, and "including" and "include" are not limiting. The word "shall' is
always mandatory.
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(a) Access, PEG access, PEG use, or PEG. "Access," "PEG access," "PEG use," or
"PEG" means the availabilityof a cable or video system for public, educational, or
governmental use by various agencies, institutions, organizations, groups, and
individuals, including the City of Lodi and its City use channels or any existing
agreement between the City and any incumbent cable operator, to acquire,
create, and distribute programming not under a state franchise holder's editorial
control.
(b) City. "City" means the City of Lodi, California.
(c) City Council. "City Council" means the City Council of the City of Lodi.
(d) City Manager. "City Manager" means the City Manager of the City of Lodi or his
or her designee.
(e) Gross revenues. "Gross revenues" means all revenues actually received by the
holder of a state franchise that are derived from the operation of the holder's
network to provide cable service or video service within the incorporated areas of
the City, subject to the specifications of California Public Utilities Code Section
5860.
(f) Director. "Director' means the Deputy City Manager/Internal Services Director of
the City of Lodi or his or her designee.
(g) State Franchise Holder, Holder of a State Franchise, Holder of the State
Franchise, or Holder. "State Franchise Holder," "holder of a state franchise,"
"holder of the state franchise," or "holder" means any person or group of persons
who has been issued a franchise by the California Public Utilities Commission to
provide cable service or video service, as those terms are defined in Public
Utilities Code Section 5830, within any portion of the City of Lodi.
5.17.030 STATE FRANCHISE HOLDER FEE.
Any State Franchise Holder operating within the City shall pay to the City a State
Franchise Holder fee equal to five percent of gross revenues, as defined in this Chapter
and applicable law. Nothing in this section is intended to limit the City's ability to impose
utility user taxes and other generally applicable taxes, fees and charges that are applied
in a nondiscriminatoryand competitively neutral manner.
5.17.040 STATE FRANCHISE HOLDER PEG FEES.
Any State Franchise Holder operating within the City shall pay to the City a PEG fee
equal to one percent of gross revenues, as defined in this Chapter and applicable law,
unless a different amount is payable in accordance with applicable law or resolution
adopted by the City Council.
5.17.050 PAYMENT OF FEES.
The State Franchise Holder shall pay quarterly all fees required pursuant to this Chapter
in a manner consistent with Public Utilities Code Section 5860. The State Franchise
Holder shall deliver to the City by check or other means agreeable to the City Manager,
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a separate payment for the state franchise fee and the PEG fee not later than forty-five
days after the end of each calendar quarter. Each payment made shall be accompanied
by a summary explaining the basis for the calculation of the fees.
5.17.060 AUDITS.
The City may examine the business records of the holder of a State Franchise in a
manner not inconsistentwith California Public Utilities Code Section 5860(i).
5.17.070 LATE PAYMENTS.
In the event a State Franchise Holder fails to make any payment required by this
Chapter on or before the due dates specified in this Chapter, the City shall impose a late
charge at the rate per year equal to the highest prime lending rate during the period of
delinquency, plus one percent unless a different rate is set by applicable law or
resolution adopted by the City Council.
5.17.080 LEASE OF CITY PROPERTY OR NETWORK.
To the extent not inconsistent with California Public Utilities Code Section 5840(q)(2)(B),
in the event a State Franchise Holder desires to lease access to City property beyond
the access conferred by its State Franchise or to a network owned or controlled by the
City, the City may set terms and charge a fee for access to the property or City network
separate and apart from any franchise fee or other fee charged to the State Franchise
Holders pursuantto this Chapter. The City Council may set any such fee by resolution.
5.17.090 CUSTOMER SERVICE AND CONSUMER PROTECTION STANDARDS.
Each State Franchise Holder shall comply with all applicable customer service and
consumer protection standards, including, to the extent not inconsistent with California
Public Utilities Code Section 5900, all existing and subsequently enacted customer
service and consumer protection standards established by local, state or federal law and
regulation.
5.17.100 PENALTIES FOR VIOLATIONS OF STANDARDS.
(a) The City shall monitor compliance with and enforce the provisions of this Chapter
and DIVCA.
(b) For any material breach, as defined in California Public Utilities Code Section
59000), by a State Franchise Holder of applicable customer service and
consumer protection standards, the City Manager, or the City Manager's
designee, in his or her sole discretion may impose the following fines or
penalties:
(1) For the first occurrence of a material breach, 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.
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(2) For a second material breach 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 material breach 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.
(c) Any penalties imposed by the City shall be imposed in a manner not inconsistent
with California Public Utilities Code Section 5900.
(d) To the extent not inconsistent with California Public Utilities Code Section 5900,
the City, acting through its City Manager or his or her designee, in its sole
discretion may waive, modify, or defer the imposition of a penalty.
5.17.110 GENERAL REQUIREMENTS.
Except as expressly provided in this Chapter, the provisions of this Chapter shall apply
to all work performed by or on behalf of a State Franchise Holder upon, above or below
any street, highway, sidewalk, parkway, alley or other public right-of-way of any kind
whatsoever within the City.
5.17.120 PERMITS.
(a) Prior to commencing any work, a State Franchise Holder shall apply for and
obtain a permit in accordance with the applicable provisions of this Chapter and
Chapter 12.04 of this Code and shall comply with all other applicable laws and
regulations, including, but not limited to, all applicable requirements of Public
Resources Code Section 21000 et seq. (the California Environmental Quality
Act).
(b) The Public Works Director shall either approve or deny a State Franchise
Holder's application for any permit required under this Chapter in accordance
with the applicable terms of Chapter 12.04.
(c) If the Public Works Director denies a State Franchise Holder's application for a
permit, the Director shall, at the time of notifying the applicant of denial, furnish to
the applicant an explanation of the reason or reasons for the denial.
(d) A State Franchise Holder that has been denied a permit by final decision of the
Public Works Director may appeal the denial to the City Council whose decision
shall be final. Upon receiving a notice of appeal, the City Council shall consider
the permit de novo.
(e) A State Franchise Holder whose permit has been revoked may appeal that
decision to the City Council in writing within ten (10) days after issuance of the
notice of revocation.
5.17.130 TERMS AND CONDITIONS.
The work of constructing, laying, replacing, maintaining, repairing, abandoning, or
removing all property and appurtenances of the State Franchise Holder in, over, under,
along, or across any City right-of-way as defined in Chapter 12.04 shall be done to the
satisfaction of the Public Works Director and, except where a different outcome is
prescribed by applicable law, at the expense of the State Franchise Holder, and in
accordance with the terms and conditions of Chapter 12.04.
5.17.140 RELOCATION OF FRANCHISE PROPERTY AND APPURTENANCES.
(a) The City reserves the right to change the grade, change the width, or alter or
change the location of any City right-of-way. If any Franchise Holder's property or
appurtenance is installed or maintained by the State Franchise Holder on, along,
under, over, in, upon, or across any public right -of way in a manner which
prevents or interferes with any alteration or other change of grade, traffic needs,
operation, maintenance, improvement, repair, construction, reconstruction,
widening, or relocation of the right-of-way, or any work or improvement upon the
right-of-way, the State Franchise Holder shall relocate any such property or
appurtenances to the satisfaction of the Public Works Director, and, to the extent
consistent with existing law at no expense to the City, upon receipt of a written
request from the Director to do so and in accordance with the terms of Chapter
12.04. Should the State Franchise Holder neglect or fail to relocate its facilities in
a timely manner as required by law after receipt of any such notice, the State
Franchise Holder shall be responsible for and shall reimburse the City for any
and all costs or expenses incurred by City due to or arising from the failure to
relocate the facilities.
(b) The City reserves the right to lay, construct, repair, alter, relocate, and maintain
subsurface or other facilities or improvements of any type or description in a
governmental and water, sewer and Electric Utility capacity, but not in a
proprietary capacity within the right-of-way over which the franchise is granted. If
the City finds that the location or relocation of such facilities or improvements
conflicts with the property or appurtenances laid, constructed, or maintained by
the State Franchise Holder, the City shall notify the State Franchise Holder of
such conflict. To the extent and in the manner required by applicable law, the
State Franchise Holderwill relocate its facilities as requested by the City.
5.17.150 REMOVAL OF ABANDONED FACILITIES.
Upon the abandonment of all or a portion of its property, the State Franchise Holder
shall remove the property in accordance with the terms of Chapter 12.04. If the State
Franchise Holder fails to comply with the terms and conditions of abandonment as may
be required by this Chapter and Chapter 12.04, the Director of Public Works may direct
the State Franchise Holder to remove, or cause to be removed, such facilities at the
State Franchise Holder's expense and the State Franchise Holder shall pay to the City
the cost of such work. Such decision maybe appealed by the State Franchise Holder to
the City Council.
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5.17.160 NOTIFICATIONTO RESIDENTS REGARDING CONSTRUCTION OR
MAINTENANCE.
(a) Prior to any construction activity related to any cable service or video service, a
State Franchise Holder shall provide public notification as required by
applicable law.
(b) To the extent practicable, equipment placed on private property shall be placed
at the location requested by the property owner..
5.17.170 IDENTIFICATION REQUIRED.
Employees, agents, contractors, and subcontractors of any State Franchise Holder shall
at all times be properly identified as employees or agents of the State Franchise Holder
while performing any work or other activity within the City on behalf of the State
Franchise Holder. Identification shall include the name of the employee or agent. The
name and telephone number of the State Franchise Holder shall appear at all
construction sites.
5.17.180 CONSTRUCTION REQUIREMENTSAND PROTECTION OF HEALTH
AND SAFETY.
Each State Franchise Holder shall comply with all applicable construction requirements
of Chapter 12.04 and shall undertake all necessary and appropriate means to protect
and preserve health and safety, including complying with all construction requirements of
Chapter 12.04or as otherwise required bythe Directorof Public Works.
5.17.200 EMERGENCYALERT SYSTEMS.
Each State Franchise Holder shall comply with the emergency alert system
requirements of the Federal Communications Commission in order that
emergency messages may be distributed over the State Franchise Holder's
network.
5.17.210 INTERCONNECTION FOR PEG PROGRAMMING.
Each holder cf a State Franchise and each incumbent cabie operator operating under a
City franchise issued pursuantto this Code, shall negotiate with each other in good faith
to interconnect their networks for the purpose of providing PEG programming including,
but not limited to, any exclusive City use channel. Interconnection may be accomplished
by any means authorized under California Public Utilities Code Section 5870(h). Each
holder of a State Franchise and any incumbent cable operator shall provide
interconnection of PEG channels, including any exclusive City use channel on
reasonable terms and conditions and may not withhold the interconnection. If a holder of
a State Franchise and an incumbent cable operator cannot reach a mutually acceptable
interconnection agreement, the City may require the incumbent cable operator to allow
the holder of the State Franchise to interconnect its network with the incumbent cable
operator's network at a technically feasible point on the State Franchise Holder's
network as identified by the Holder or as otherwise permitted by applicable law. If no
technically feasible point for interconnection is available, the holder of a State Franchise
shall make an interconnection available to the channel originator and shall provide the
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facilities necessary for the interconnection. The cost of any interconnection shall be
borne by the State Franchise Holder requesting the interconnection unless otherwise
agreed to by the State Franchise Holder and the incumbent cable operator. To the
extent not inconsistent with California Public Utilities Code Section 5870(h), the City
Manager or the City Manager's designee may waive or defer this requirement of
interconnection in his or her sole discretion.
5.17.220 NOTICES.
(a) Each State Franchise Holder or applicant for a state franchise shall file with the
City Manager and with the City's communications specialist or other City
Manager designee a copy of all applications that the State Franchise Holder or
applicant is required to file with the Public Utilities Commission with respect to
state franchised video service in the City.
(b) Unless otherwise specified in this Chapter, all notices or other documentation
that a State Franchise Holder is required to provide to the City under this
Chapter or the California Public Utilities Code shall be provided to the City
Manager and to the City's communications specialist.
5.17.230 RIGHTS RESERVED.
The rights reserved to the City of Lodi under this Chapter are in addition to all other
applicable rights of the City, whether granted or reserved by other provisions of the Lodi
Municipal Code or as otherwise authorized by federal or state law, and no action,
proceeding, or exercise of a right by the City of Lodi shall affect any other rights which
may be held by the City of Lodi.
5.17.240 COMPLIANCE WITH LAW.
Nothing contained in this Chapter shall be construed to exempt a State Franchise Holder
from compliance with all applicable ordinances, rules, or regulations of the City of Lodi
now in effect or which may be adopted that are not inconsistent with this Chapter or
California Public Utilities Code Section 5800 et seq.
SECTION 2. All other provisions of Lodi Municipal Code shall remain unchanged and
continue in full force and effect.
SECTION 3. Any provisions of the Lodi Municipal Code, or appendices thereto, or any
other ordinances of the City, to the extent that they are inconsistent with this ordinance,
and no further, are hereby repealed.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this ordinance is
for any reason held to be invalid or unconstitutional by the decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining
portions of the ordinance. The City Council hereby declares that it would have passed
this ordinance and each section, subsection, sentence, clause, and phrase thereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses,
or phrases be declared invalid or unconstitutional.
SECTION 5. This ordinance shall go into effect and be in full force and operation from
and after thirty days after its final passage and adoption.
SECTION 6. The City Clerk shall cause this Ordinance or a summary thereof to be
published and, if appropriate posted, as provided by law. Any summary shall be
published and a certified copy of the full text of this Ordinance posted in the Office of the
City Clerk at least five (5) days prior to the City Council meeting at which this Ordinance
is to be adopted. Within fifteen (15) days after the adoption of this Ordinance, the City
Clerk shall cause a summary to be published with the names of those City Council
members voting for and against this Ordinance and shall post in the Office of the City
Clerk a certified copy of the full text of this Ordinance along with the names of those City
Council members voting for and against the Ordinance.
SECTION 7. All ordinances and parts of ordinances in conflict herewith are repealed
insofar as such conflict may exist.
SECTION 8. No Mandatory Duty of Care. This ordinance is not intended to and shall
not be construed or given effect in a manner which imposes upon the City, or any officer
or employee thereof, a mandatory duty of care towards persons or property within the
City or outside of the City so as to provide a basis of civil liability for damages, except as
otherwise imposed by law.
SECTION 9. Severability. If any provision of this ordinance or the application thereof
to any person or circumstances is held invalid, such invalidity shall not affect other
provisions or applications of the ordinance which can be given effect without the invalid
provision or application. To this end, the provisions of this ordinance are severable. The
City Council hereby declares that it would have adopted this ordinance irrespective of
the invalidityof any particular portion thereof.
SECTION 10. The City Council intends this Ordinance to supplement, not to duplicate
or contradict, applicable state and federal laws and this Ordinance shall be construed in
light of that intent.
SECTION 11. This ordinance shall be published one time in the "Lodi News -Sentinel," a
daily newspaper of general circulation printed and published in the City of Lodi, and shall
take effectthirty days from and after its passage and approval.
Approved this 18`h day of November, 2009
(�eoyznk., ;� - St" 4e44) —
LARRY D. OANSEN
Mayor
Attest:
'ONNIFE M. ROBISON
Assistant ity Clerk
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State of California
County of San Joaquin, ss.
I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance
No. 1826 was introduced at a regular meeting of the City Council of the City of Lodi held
November 4, 2009, and was thereafter passed, adopted and ordered to print at a regular
meeting of said Council held November 18, 2009, by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Johnson, Katzakian, Mounce,
and Mayor Hansen
NOES; COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
further certify that Ordinance No. 1826 was approved and signed by the Mayor
on the date of its passage and the same has been published pursuant to law.
Approved .
NNIFE . ROBISON
Assistant City Clerk
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