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HomeMy WebLinkAboutItem 6.2 PenaltiesCableViolations (2) r C I T Y C L E R K' File # [l][Q][3j[OJ-[2l[Q] " .. AGENDA STATEMENT CITY COUNCIL MEETING DATE: (April 1 , 1997) SUBJECT: Public Hearing: 2nd Reading of Ordinance Establishing Penalties for Cable e;..- TV Violations (prepared By: Paul Rankin, Assistant City Manager) EXIllBITS ATTACHED: 1. 2. Draft Ordinance California Government Code Section 53088.2 RECOMMENDATION: 1) /~,~l 4) 5) Open the Public Hearing Receive Staff Report and Public Testimony Close the Public Hearing Deliberate Waive the reading and ADOPT the Ordinance FINANCIAL STATEMENT: City will have the authority to impose monetary penalties in the event of a violation by a cable television service provider. The amount of the penalties are offset by any penalty levied under the Franchise Agreement. ,:.-eDESCRIPTION: At the City Council Meeting on March 18, 1997, the City Council conducted a public hearing and introduced the Ordinance attached as Exhibit 1. In 1992, the State Legislature adopted the Video Customer Service Act, which is incorporated in the Government Code beginning with Section 53088. The Act established service standards under State Law including: duties of video providers; disclosure of customer information; dispute resolution procedures; and the authority to schedule penalties. Under the law there are specific requirements affecting video providers, which are defmed to include cable television providers. Section 53088.2(q) allows a City to adopt a specified schedule of penalties which shall be assessed in the event that provisions of the act are violated. If the City does not adopt the schedule of penalties, the ability to have meaningful enforcement may be weakened. The proposed ordinance would apply to all cable providers/franchises operated pursuant to the Dublin Municipal Code. Although TCI is currently the only provider of these services, their franchise agreement is IlQ1 an exclusive right to be the sole operator. As new technology is introduced and other firms evaluate the provision of these types of services, there could be other operators in the future. The proposed ordinance provides that it would become effective 30 days following its adoption. Therefore, any assessment of penalties pursuant to this ordinance could not be imposed until such time as the measure is effective. -.:.------------------------------------------------------------------ :_.,_ COPIES TO: Tom Baker, TCl General Manager ITEM NO. 6.2 HJcc-forms/agdastmtdoc t.: The penalty schedule proposed as part of the ordinance follows the specific language contained in Section 53088.2(q). The schedule may not exceed $200 for each day of a material breach and a cumulative amount of $600 per occurrence, provided that it is the fIrst time the violation occurred. The current franchise agreement allows for penalties related to violations of the franchise agreement, to be assessed at $100 per day or violation. Adoption of the schedule pursuant to state law requires reduction of penalties levied under State Law by the amount, which may have been assessed under the franchise agreement. ... .:'" The schedule of penalties in accordance with State Law is allowed to escalate on subsequent violations, to a maximum of$I,OOO for each day of each material breach, not to exceed a cumulative amount of $3,000 per occurrence. Again, the amount of the total penalties must be offset by any penalties levied pursuant to a Franchise Agreement. Section 10.1 of the current Franchise Agreement between the City of Dublin and Tele-Vue Systems (d/b/a - TCI-Tri-Valley), states that the Franchise is to be regulated in accordance with applicable laws. The enactment by the State Legislature of the Video Customer Service Act, is a law directly applicable to the services provided by TCI. The adoption of the penalty schedule shall be applicable to the specific duties of the video provider as spelled out in section 53088.2 (a) - (n). This establishes standards for items including: a requirement for prompt repairs; providing customers with an annual notice of the programming offered, prices, and installation policies; toll-free customer service telephone numbers shall be provided; provision of accurate and understandable bills; response criteria for an outage; written notice regarding increasing rates or deleting channels; timing for the payment of bills by subscribers; refund of time limits on closed accounts; and notice to subscribers of the ability to prohibit the disclosure of subscriber data if the fIrm markets customer information. At the meeting on'March 18, 1997, the ordinance was introduced referencing subsections (a) -iJU in Government Code Section 53088.2. The appropriate reference should be subsections (a) -,(u). The ordinance proposed for adoption as Exhibit 1 contains this minor correction and it is in full compliance with State Law. e Staff recommends that the City Council conduct a public hearing, waive the reading, and adopt the ordinance, which will become effective in 30 days. e: -~- . . . ORDINANCE NO. - 97 r AN ORDINANCE OF THE CITY OF DUBLIN III III III III III III III III III ESTABLISHING PENALTIES FOR BREACH OF VIDEO PROVIDER SERVICES The City Council of the City of Dublin does ordain as follows: Section 1. Section 3.20.795 entitled VIDEO PROVIDER SERVICE PENALTIES is added to the Dublin Municipal Code to read as follows: The following penalties are hereby established for material breach of video provider services specified in subdivision (a) to (n) of Section 53088.2 of the Government Code of the State ofCalifomia: A. Two hundred dollars ($200) for each day of material breach, not to exceed six hundred dollars ($600) for each occurrence. B. 'Where a material breach has occurred, the city has provided notice and a penalty pursuant to subsection A hereof, and a subsequent material breach of the same nature occurs within 12 months, the penalty shall be four hundred dollars ($400) for each day of material breach, not to exceed twelve hundred dollars ($1200) for each occurrence. c. Where the city has provided notice and penalties pursuant to subsections A and B hereof and a third or subsequent material breach of the same nature occurs within 12 months the penalty shall be one thousand dollars ($1,000) for each day of material breach, not to exceed three thousand dollars ($3,000) for each occurrence. D. Penalties assessed pursuant to this section shall be reduced dollar for dollar to the extent of any penalties imposed upon the Grantee for the same customer service failure under the franchise. Section 2. This Ordinance shall take effect and be in force 30 days following its adoption. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State ofCalifomia. PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin this _ day of_, 1997, by the following vote: AYES: NOES: ABSTAlN: ABSENT: Mayor ATTEST: City Clerk J:\WPD\MNRSW\114\ORD\CABLETV.128 JFC:EHS:rja K2/G/4.1-97/ord-tr.doc CALIFoRNIA GOVERNlViENT CODE EXCERPT Video Customer Service Act ~H fii r; ~.. '" 5' S ~ Q.E '8 -c:: 6'Q.~ 'n' d c;> I!;- ". f: ~ i"; ~[~ [~~~t; ~~.g; ~ ~ .;,. E:~j:s: g"O:J. ';<fgfr t-~ ~~ j;; [ ~3~t3~g~ 1;c:""S,3"s ~ 1'" E: '" l!. Q.", b ~ :;! El Cl'" n'~. '" " Od ll"' l oaQl~ftIj5.:.,= :l:'i.qs! a .....ol!..o~gRI: : sD;. ~~ c. ~ c: :: f;;= ~ 5:~"C ILc G3 ~ Q.~S ~l! 'g'!;!~,,<l; Cd S.... n~g~... n. =d~ "CI S.Li~ ~ ~ ~ Ll ~ ,!?- lj g: f 2 I ~ Ii ~ ~ D:i ji'", .. 5= P r=; 5 10" ;: :: E.. ~ i fl>'< 8..'S It!!. e= r; 0 ] :;- l; '<;;IQ. -.. ",,"" Q. C S ~ q:!.~ o.crl:9" 5: o:r<>l!! :I ::l Q. ir W ~.. b B";." l:! 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C) o t:l t"l l;"l o ;J i f:i n o t::l l':l ..: ~. "0 .... Ol W C> 00 00 N ,-:. '.. . . . .' ~ 53088.2 GOVERNMENT CODE ill2 The legislative body of the c~ty, county, or city and county, may, by ordinance, provide a schedule of penalties for the material breach by a video provider of subdivisions (a) to (n),l inclusive. No monetary penalties shall be assessed for a material breach where the breach is out of the reasonable control of the video provider. Further, no monetary penalties may be imposed prior to the effective date of this section. .AJ.1Y schedule of monetary penalties adopted purnuant to this section shall in no event exceed two hundred dollars ($200) for each day of each material breach, not to exceed six hundred dollars ($600) for each OCCWTence of material breach. However, where a material breach of any of subdivisions (a) to (n),l inclusive, has occurred and the city, county, or city and county has provided notice and a fine or penalty has been assessed, in a subsequent material breach of the same nature occurring within 12 months, the penalties may be increased by the city, county, or city and .county to a maximum of four hundred dollars ($400) for each day of each material breach, not to exceed twelve hundred dollars ($1,200) . for each occurrence of the material breach. Where a third or further material breach of the same nature occurs within those same 12 months, and the city, county, or city and county has provided notice and a fine or penalty has been assessed, the penalties may be increased to a maximwn of one thousand dollars ($1,000) for each day of each material breach, not to exceed three thousand dollars ($3,000) for each occurrence of the material breach. With respect to video providers subject to a franchise or license, any monetary penalties assessed under this section shall be reduced dollar for dollar to the .extent any liquidated damage or penalty provision of a current cable television ordinance, franchise contract, or license agreement imposes a monetary obligation upon a video provider for the same customer service failures, and no other monetary damages may be assessed. However, this section shall in no way affect the right of franchising authorities concerning assessment or renewal of a cable television franchise under the prQvisions of the Cable .Communications Policy Act of 1984.2 . (1') If the legislative body of a city, county, or city and county adopts a schedule of monetary penalties pursuant to subdivision (0),3 the following procedures shall be followed: (1) The city, county, or city and county shall give the video provider written notice of any alleged material breaches of the conswner service standards of this division and allow the video provider at least 30 days from receipt of the notice to remedy the specified breach. (2) A material breach for the purposes of assessing penalties shall be deemed to have occurred for each day, following the expiration of the period specified in paragraph (1), that any material breach has not been remedied by the video provider, irrespective of the number of customers affected. (s) Notwithstanding subdivision (m),4 or any other provision of law, this section shall not preclude a party affected by this section from utilizing any judicial remedy available to that party without regard to this section. Actions taken by a local legislative body, including a franchising authority, pursuant to this section shall not be binding upon a court of law. For this purpose a court of law may conduct de novo review of any i!>sues presented. (t) If any provision of this act or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. (u) 'fllls section shall become operative on September 1, 1993. (Added by Stats.1992, c. 1198 (A.B.2388), 9 1, operative Sept. 1, 1993. Amended by St,(G:199~c. 384 (S.B.1941), S 1.) C7 1 So in enrolled bill. See subdivisions (a). to (p). 247 U.S.C.A ~ 521 et seq. 3 So in enrolled bill. See subdivision (q). 4 So in enrolled bill. See subdivision (0).