ORD 436
ORDINANCE NO. 436
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF LA QUINTA, CALIFORNIA, AMENDING THE LA
QUINTA MUNICIPAL CODE ADDING CHAPTER 5.11
IMPLEMENTING AB 2987, RELATED TO VIDEO
FRANCHISE FEES, CUSTOMER SERVICE AND OTHER
VIDEO-RELATED MATTERS.
THE CITY COUNCIL OF THE CITY OF LA QUINTA. CALIFORNIA. DO
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. That Chapter 5.11 of the La Quinta Municipal Code is hereby
added to read as follows:
CHAPTER 5.11
VIDEO FRANCHISE FEES, CUSTOMER SERVICE AND OTHER VIDEO-RELATED
I MATTERS
Section 5.11.010. Regulation of State Video Franchises and City Video
Franchises.
Under State law effective January 1, 2007, the California Public Utilities
Commission ("PUC") will have the authority to grant state video franchises ("State
Franchises"). The City of La Quinta (the "City") will acquire certain rights and
responsibilities with respect to state video franchise holders. These include the
receipt of a franchise fee and a fee for Public, Educational and Government ("PEG")
purposes, both based on a percentage of the gross revenues of state franchise
holders, as well as the establishment and enforcement of penalties for violations of
customer service rules.
Section 5.11.020. State Video Franchise Fees.
A. Any state video franchise holder ("State Franchisee") operating within
the boundaries of the City of La Quinta shall pay a fee to the City equal to five
percent (5%) of the Gross Revenue of that State Franchisee.
B. Any State Franchisee operating within the boundaries of the City of
La Quinta shall pay an additional fee to the City equal to one percent (1 %) of the
Gross Revenue of that State Franchisee, which fee shall be used by the City for
PEG purposes consistent with state and federal law.
C. Gross Revenue, for the purposes of (A) and (B) above, shall have the
definition set forth in California Public Utilities Code ~ 5860.
Ordinance No. 436
Municipal Code Chapter 5.11
Video Franchise Fees
Adopted: June 5. 2007
Page 2
Section 5.11.030. Audit Authority.
Not more than once annually, the City may examine and perform an audit of
the business records of a State Franchisee to ensure compliance with Section
5.11.020.
Section 5.11.040. Customer Service Penalties Under State Franchises.
A. The holder of a State Franchise shall comply with all applicable state
and federal customer service and protection standards pertaining to the provision of
video service.
B. The City Manager, or his/her designee, shall monitor the compliance
of State Franchisee{s) with respect to state and federal customer service and
protection standards. The City Manager, or his/her designee, shall provide the
State Franchisee(s) written notice of any material breaches of applicable customer
service standards, and shall allow the State Franchisee{s) thirty (30) days from the
receipt of the notice to remedy the specified material breach. Material breaches
not remedied within the 30-day time period shall be subject to the following
penalties by the City Manager, or his/her designee.
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 $1500.00 for
each violation.
2. For a second violation of the same nature within 12 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.
C. A State Franchisee may appeal a penalty assessed to the City Council
within sixty (60) days. After relevant speakers are heard, and any necessary staff
reports are submitted, the City Council will vote to either uphold or vacate the
penalty. The City Council's decision on the imposition of a penalty shall be final.
Section 5.11.050. City Response to State Franchise Applications.
A. Applicants for State Franchises within the boundaries of the City of
La Quinta must concurrently provide complete copies to the City of any application
or amendments to applications filed with the PUC. One complete copy must be
provided to the City Clerk, and one complete copy to the City Manager.
Ordinance No. 436
Municipal Code Chapter 5.11
Video Franchise Fees
Adopted: June 5. 2007
Page 3
B. The City Manager shall provide any appropriate comments to the PUC
regarding an application or an amendment to an application for a State Franchise.
SECTION 2. EFFECTIVE DATE: This Ordinance shall be in full force and
effect thirty (30) days after its adoption.
SECTION 3. POSTING: The City Clerk shall cause this Ordinance to be
posted in at least three public places designated by resolution of the City Council,
shall certify to the adoption and posting of this Ordinance, and shall cause this
Ordinance and its certification, together with proof of posting to be entered into the
Book of Ordinances of the City of La Quinta.
PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta
City Council held this 5th day of June, 2007, by the following vote:
AYES: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
DON AD LP ,Mayor
City of La Qui a, California
ATTEST:
VERONICA J. ONTECINO, CMC, City Clerk
City of La Q mta, California
(SEAL)
Ordinance No. 436
Municipal Code Chapter 5.11
Video Franchise Fees
Adopted: June 5. 2007
Page 4
APPROVED AS TO FORM:
Ordinance No. 436
Municipal Code Chapter 5.11
Video FranchIse Fees
Adopted: June 5. 2007
Page 5
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss.
CITY OF LA QUINTA )
I, VERONICA J. MONTECINO, City Clerk of the City of La Quinta, California, do
hereby certify the foregoing to be a full, true, and correct copy of Ordinance No.
436 which was introduced at a regular meeting on the 15th day of May, 2007, and
was adopted at a regular meeting held on the 5th day of June, 2007, not being less
than 5 days after the date of introduction thereof.
I further certify that the foregoing Ordinance was posted in three places within the
City of La Quinta as specified in City Council Resolution No. 2006-102.
VERONICA J. NTECINO, CMC, City Clerk
City of La Quinta, California
DECLARATION OF POSTING
I, VERONICA J. MONTECINO, City Clerk of the City of La Q.W.nta, California, do
hereby certify that the foregoing ordinance was posted on (/ U.I7l!: /6; ~OtJ 7-
pursuant to Council Resolution.
V RONICA J. NT CINO, CMC, City Clerk
City of La Qumta, California