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CC SR 20220503 03 - Cox CommunicationsCITY COUNCIL MEETING DATE: 05/03/2022 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to receive an update on Cox Communications’ internet speed and reliability services and potential federal funding opportunities for broadband internet infrastructure improvements. RECOMMENDED COUNCIL ACTION: (1)Receive and file a presentation from Cox Communications on the company's internet speed and reliability services; (2)Direct Staff to draft a customer service standards ordinance for video providers for consideration at a future City Council meeting; (3)Direct Staff to establish a working group/community broadband investment team ; (4)Direct Staff to add Smart City Strategic Plan as a project under the “Infrastructure” City Council Goal, to solicit proposals for the development of a smart city strategy and a multi-year implementation plan, and to include funding to prepare the Strategic Plan in the FY 2022-23 budget; and, (5)Direct Staff to work with Cox Communications to implement civic engagement programming. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Jesse Villalpando, Senior Administrative Analyst REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A.RPVMC 13.12 B.Digital Infrastructure and Video Competition Act (DIVCA) (page B -1) C.California Public Utilities Commission FAQs about DIVCA (page C-1) D.Cox Renewed Franchise Certificate (page D-1) E.August 17, 2021, Staff Report F.Map of Cox's planned network infrastructure improvements (page F-1) G.May 2, 2017, Staff Report H.October 3, 2017, Staff Report I.Cox Communications slide presentation (page I-1) J.Cox Smart Communities-Smart lighting solutions Brief (page J-1) K.Cox Smart Communities-Dynamic Curbside Brief (Page K-1) 1 L. Cox Smart Communities- Video Analytics Brief (Page L-1) BACKGROUND: In 1998, the City Council adopted Ordinance No. 339, the City’s Telecommunications Regulatory Ordinance, which was codified as Chapter 13.12 of the Rancho Palos Verdes Municipal Code (RPVMC) (Attachment A). The ordinance established regulations for cable television systems, open video systems, and other telecommunications services and systems, including procedures for granting local franchise agreements. In 2006, this all began to change with the enactment of the Digital Infrastructure and Video Competition Act (DIVCA) (Attachment B). DIVCA shifted franchise agre ement authority from local agencies to the California Public Utilities Commission (CPUC) but obliged local agencies to retain responsibility for enforcing customer service standards (Attachment C). On December 30, 2016, the CPUC granted a California Video Franchise Certificate to Cox Communications applicable toward various California entities, including the City of Rancho Palos Verdes (Attachment D). This certificate grants authority to Cox Communications to provide video service in the service area and authority to use the public rights-of-way in exchange for the franchise fee adopted in CAL. PUB. UTIL. CODE §. 5840(q), subject to state laws. This certificate has been in effect since April 27, 2017, and has an expiration date of April 27, 2027. In response to several public inquiries, Staff has verified that other providers can enter the City's market but would need to obtain a California Video Franchise Certificate from the CPUC. To date, other providers have not expressed an interest in providing services to the City. This may be related to the costs associated with entering the Peninsula market including obtaining approvals from the CPUC. On August 17, 2021, the City Council received an update from Cox Communications' Government Affairs division representatives regarding improvements made to Cox's internet speed and reliability infrastructure, and in addressing customer service complaints from residents since is previous presentation to the Council in October 2020. The purpose of this meeting was to express the community's concerns with the services and customer service provided by Cox when it comes to internet speed and reliability, and to identify measures to continue to improve services provided to residents of the Peninsula. In response to this presentation, the City Council directed Staff to collaborate with Cox Communications representatives to: (i) Add resource information on the City's website including links to Cox Communication's troubleshooting FAQs and videos, a Wi-Fi Optimization Guide, and Internet Experience Customer Resources; (ii) Explore Cox’s smart city opportunities to increase the availability of publicly accessible Wi-Fi and digital literacy programs; (iii) Provide a plan outlining Cox’s infrastructure improvement currently underway or planned for the coming months; and 2 (iv) Identify a list of recommendations for consideration by the City Council at a future meeting regarding the use of available federal funding f or broadband internet infrastructure improvements and smart city initiatives. Since the August 17 meeting, Staff has met virtually several times and collaborated closely with Cox Communications' Government Affairs Manager and representatives from Cox's Smart Cities program to implement the City Council's direction. During tonight’s meeting, staff is presenting recent updates made to Cox's infrastructure, including planned network infrastructure improvements that are currently underway or scheduled for the coming months, as well as recommendations for the Council’s Consideration regarding the use of available federal funding for broadband infrastructure improvements and expansions; implementation of smart city technologies; and the exploration of potential partnership opportunities with Cox Communications. This report is divided into the following four sections, each of which contains Staff recommendations (SRs) for strategies to be considered by the Council at tonight's meeting regarding the evaluation and improvement of the community's broadband capabilities in response to the discussion at the August 17 meeting: A. Cox Communications Internet Speed and Reliability Services (SR #1) Receive and file a presentation from Cox Communications on the company's internet speed and reliability services. (SR #2) Direct Staff to draft a customer service standards ordinance for video providers for consideration at a future City Council meeting. B. Federal Funding Opportunities for Broadband (SR #3) Direct Staff to establish a working group/community broadband investment Team. C. Cox Communications Smart Communities’ Initiative (SR #4) Direct Staff to solicit proposals for the development of a smart city strategy and a multi-year implementation plan. D. Potential Partnership Opportunities with Cox Communications (SR #5) Direct Staff to work with Cox Communications to implement civic engagement programming. DISCUSSION: A. Cox Communications Internet Speed and Reliability Services With the COVID-19 pandemic driving more activities online than ever before, City Staff has received numerous inquiries from residents experiencing problems with their Cox Communications internet connection services. The nature of the issues expressed by residents range from poor customer service, speed and reliability as well as a frequent increase in costs to consumers. Residents requiring escalation of their concerns currently contact City Hall via email or phone, and Staff records their information and forwards it to Cox’s Government Affairs Manager for further outreach and coordination. 3 Over the last two years, there has been a noticeable increase in grievances reported to the City, indicating that there is an increase in the community's dissatisfaction with Cox's internet speed and reliability services and customer service. To address these concerns, during the August 17, 2021, meeting the City Council directed Staff to coordinate with Cox Communications representatives to provide a list of network infrastructure improvements that Cox is currently undertaking or planning in the coming months to improve the speed and reliability of their interment connectivity services. Subsequent to this meeting, Cox Communications Representatives provided Staff with the following information about the company's planned network infrastructure improvements that are currently underway or planned for the P eninsula in the coming months to support the company's connectivity service enhancements for residents. Cox’s Network Transformation: Cox Communications representatives have informed City Staff that Cox is continuing to advance network improvements throughout the Palos Verdes market and is investing in what it refers to as Network Transformation upgrades at the node — or neighborhood — level across all markets. A network node can be referred to as an electronic device that is connected to a network and capable of sending, receiving, or forwarding data over a communications channel. Cox’s Network transformation refers to a series of options or node -actions that when performed by Cox within the City of Rancho Palos Verdes will help to alleviate current or future congestion within an existing node boundary area throughout the central region. These activities either reduce the number of customers in a node boundary area or increase the available bandwidth that customers have the ability to consume. Both are aimed at providing a better overall internet experience for all residential and Cox Communications customers. Cox further informed Staff that it prioritizes these upgrades in areas with a high utility value, indicating that new areas are upgraded on a continuous basis. Planned Network Infrastructure Improvements Currently Underway/Planned : As illustrated in the map on the following page (Attachment F), Cox has upgraded approximately 46 network nodes to date, serving a total of over 14,750 homes. Each node serves between 250 and 300 residences. Cox informed staff that approximately 19 network nodes serving the Peninsula will be upgraded in 2022, enhancing service to an additional 10,591 homes, and that 16 nodes will be upgraded in 2023, enhancing service to an additional 8,328 homes. Additionally, Cox informed Staff that fiber-to-the-home connections are being developed and the company anticipates having between 20% and 30% fiber-to-the-home connections throughout the Peninsula region in the coming years. 4 Furthermore, it should be noted that Cox has been applying to the City for permits to implement state-mandated wireline resilience strategies, as detailed below. Wireline Resiliency: As of 2021, the CPUC requires wireline providers such as Cox to develop “comprehensive resiliency strategies to prepare for catastrophic disasters and power outages.” In sum, Cox is required to provide 72 hours of bac kup power to certain Cox facilities that are located within high fire risk areas such as the Peninsula. This is intended to improve public safety by ensuring the network remains operational so that residents have access to 911 and other public safety information during power outages caused by emergencies or public safety power shutoffs by Southern California Edison (SCE). Cox Communications has identified a total of 55 sites within the City of Rancho Palos Verdes for the wireline resilience program mandated by the CPUC’s Decision Adopting Wireless Provider Resiliency Strategies. In summary, this project is intended to install backup generators fueled by natural gas to support ongoing services in the event of a power outage. To date Cox has 36 projects involving wireline resilience natural gas generators in RPV, 22 of which have been approved and 14 of which are still pending approval. Many of the approved generators are currently being installed or will be in the coming weeks. Residents are made aware of these improvements via courtesy notices mailed to property owners within a 500’ radius of the project site. STAFF RECOMMENDATION #1: Receive and file a presentation by Cox Communications regarding its internet speed and reliability services. 5 Dave Simpson, Cox Communications' Rancho Palos Verdes Government Affairs Manager, Dennis Morgan, Cox Communications' Vice President of Construction, Representatives from Cox Communications' Cox2m Smart Communities team and other Cox personnel have confirmed their attendance at tonight's meeting. Cox intends to provide an update on the company's progress toward addressing resident customer service complaints since the August 2021 meeting, as well as provide additional information and answer any questions the Council may have about Cox's planned network infrastructure improvements, which are currently underway or scheduled for the coming months. STAFF RECOMMENDATION #2: Direct Staff to draft a customer service standards ordinance for video providers for consideration at a future City Council meeting. As discussed in the report's background section, prior to the passage of the Digital Infrastructure and Video Competition Act, RPVMC Section 13.12.310(C) provided the City the authority for the City to enact an ordinance to establish monetary penalties for a video provider’s material breach of customer service standards, this authority h as been superseded with the enactment of the Digital Infrastructure and Video Competition Act (DIVCA). While DIVCA shifted franchise agreement authority from local agencies to the California Public Utilities Commission (CPUC), it obliged local agencies to retain the responsibility for enforcing customer service standards. Since the City no longer has a local franchise agreement with Cox to use as leverage to ensure that customer service complaints are dealt with appropriately and in a timely manner, Staff believes that it would be appropriate to amend RPVMC Chapter 13.12 to enact a video provider customer service standards ordinance. In 2017, Staff presented a proposal to the City Council to initiate a video provider customer service standards ordinance. As proposed at that time, the ordinance would have constituted a complete overhaul of RPVMC Chapter 13.12. In May 2017, the City Council authorized Staff to begin work on the ordinance (Attachment G), and in October 2017, the Council reviewed a draft (Attachment H). However, due to concerns about the cost and staffing requirements associated with implementing and enforcing the ordinance, it was tabled in 2018 and remains unresolved. Enacting a Video Service Providers Regulatory Ordinance would, among other things, authorize the City to assess monetary penalties for material breaches of video providers’ customer service standards. Enforcement of such an ordinance , penalty revenues, and legal costs are too speculative to realistically estimate at this time; however, if desired, staff will draft an ordinance for consideration by the City Council that would enact a Video Provider Customer Service Standards in accordance with the DIVCA. B. Federal Funding Opportunities for Broadband During their August 17 presentation to the City Council, Cox Communications representatives alluded to an abundance of funding opportunities available through state and federal sources for broadband capacity improvement (Attachment I). As a result of 6 this presentation, the Council directed Staff to investigate available federal funding for broadband infrastructure improvements and to develop a list of recommendations for consideration at a future meeting. It is critical to note that through collaboration with Cox, Staff determined that Cox Communications alone has little to no direct access to state and federal funding, necessitating the City's participation in identifying and applying for funding opportunities as recommended by the Council. Specifically, during the presentation, Cox mentioned the potential use of American Rescue Plan Act (ARPA) COVID-19 relief funding for broadband infrastructure improvements. In discussions with Cox, it was clarified that Cox is not allocated such funds, and any ARPA funding for this purpose would come from the City’s allocation. As a reminder, the City Council previously approved a spending plan for the City’s $10 million ARPA allocation in October 2021. However, the Council may choose to amend the spending plan as desired. Additionally, Staff has identified, and preliminarily reviewed funding opportunities offered through the recently enacted Infrastructure Investment and Jobs Act (IIJA), a $1 trillion package with investments for a wide array of infrastructure projects. This bipartisan legislation enacts historic investments in the nation's infrastructure, including funding for roads and bridges, rail, transit, ports, airports, electric grid, water systems, and broadband, among other priorities. The legislation provides $944 billion in total spending over five years, which includes $550 billion in new spending. It represents a significant infusion of federal funding for public works across various industries. When considering this federal funding opportunity, it is necessary to keep in mind that the federal process for establishing new funding sources is still in its infancy, and as a result, detailed guidelines and program descriptions have not yet been released. However, it is critical to note that historically a significant portion of the funding authorized by legislation flows directly to state governments or metropolitan planning organizations (MPOs) and will likely be prioritized for programs that address the needs of underserved communities that are disproportionately impacted by digital literacy and for which the City is unlikely to be competitive for. Staff will continue to work with the City’s grant management firm, Blais & Associates, to monitor grant opportunities for broadband infrast ructure improvement. STAFF RECOMMENDATION #3: Direct Staff to Establish a Working Group/Community Broadband Investment Team. While Staff is knowledgeable about broadband deployment in the community, staff recommends that the Council direct staff to establish a “Community Investment Team” comprised of City representatives and private sector experts in the field better position ed to evaluate the various funds contained in the IIJA, as well as other federal funding opportunities. This working group will develop actionable steps needed to leverage federal or state-authorized outside funding to make environmentally sustainable and socially equitable investments in the City's broadband infrastructure. To guide and focus this work, it is recommended that the team establish and adhere to guiding principles that align funding opportunities with the City's current short - and long- 7 term broadband infrastructure improvement plans, as identified by the Council. With these guiding principles in mind, it is envisioned that this team will serve as a forum for cross- departmental evaluation of funding opportunities created by this and future legislation, as well as prioritization of City projects for consideration by the Council. It further is recommended that special consideration be given to develop ing programs that address the digital divide among the Peninsula's senior population to strengthen the City's competitiveness in obtaining grant funds. C. Cox Communications Smart Communities’ Initiative Recognizing that business commerce and much of life are becoming increasingly dependent on internet connectivity, the Council expressed an interest in exploring the possibility of incorporating smart city policies and technologies in the City of Rancho Palos Verdes at its August 17, 2021, meeting. On February 24, 2022, Staff met virtually with representatives from Cox's Smart Communities division to discuss the company's Smart Communities Initiative and solicit feedback on potential opportunities in support of the expansion of publicly accessible Wi- Fi and digital literacy programs to improve efficiency, sustainability, economic development, and residents’ quality of life. During this meeting, Cox's Smart Communities team briefed Staff on the company's Smart Cities initiatives, discussed current partnerships with municipal governments, and brainstormed implementation strategies for Rancho Palos Verdes. Cox's smart team informed Staff that Cox can assist cities and towns in identifying cost-saving solutions for energy, buildings, education, and health care infrastructure enabled by smart technology, and that the company is seeking input from cities on the issues they wish to address and believes that it has some solutions to offer. The following information summarizes Cox's Smart Communities platform, entitled “Cox 2M” Cox2M: Launched in 2018, Cox2M is the commercial Internet of Things (IoT) business line within Cox Communications. The team’s mission as stated on their website (www.cox2m.com) is to unleash the true potential of a connected world by enabling complete asset tracking and monitoring solutions, giving businesses and communities the data and tools they need to improve processes, realize operational efficiencies, and deliver better experiences to customers and residents. The IoT is becoming an increasingly growing topic of conversation within and outside the workplace. In its simplest form, IoT can be broadly defined as the concept of connecting any device with an on/off switch to the internet (and/or to one another). Televisions, automobiles, kitchen appliances, heart monitors, and lamps are all examples of devices that can be linked. IoT also includes components of other things that communicate with one another, such as an automobile with built -in sensors to alert the driver of a tire’s air pressure. According to the company, Cox2M is committed to enabling connected environments by providing commercial IoT solutions to businesses and communities. Cox2M has the ability 8 to monitor and track commercial assets, powering operational efficiencies and improved experiences for its customers. Cox2M’s sensors collect data from a variety of connected assets, enabling organizations to more efficiently track, monitor, and manage thes e mobile and fixed assets. The platform unifies connectivity, hardware, and software, alleviating organizations of the need to manage multiple vendor relationships. Examples of Cox’s Smart Communities and Mobility Project Types: Smart Lighting Solutions: Cox2M’s smart lighting has the ability to provide plug-and-play outdoor lighting controllers that enable remote control and monitoring of all outdoor lighting assets (i.e. street lights), ensuring that if a light fails or is turned off, an automated alert is sent to the appropriate team to ensure a prompt resolution. Data collected from IoT sensors can be used to assist cities in making resource management decisions about energy consumption, which can be monitored via a single user interface, enabling municipal leaders to make energy consumption decisions based on quantitative data analysis. Additionally, smart lighting controls enable the user to remotely control individual lights or groups of lights, as well as create dimming schedules. These capabilities ensure that a property is always illuminated safely and efficiently. (Additional information is included in Attachment J.) Curbside Management Solutions: Curbside management solutions from Cox2m consist of interactive digital kiosks displays place curbside and video-based analytics. Video analytics from the devices installed along a curb can capture vehicle and license plate information and transmit it to kiosks, triggering a countdown timer. If a vehicle remains in the “loading zone” after the countdown has ended, the system notifies appropriate city officials directly, ensuring a continuous flow of traffic. When the driver's time is up, visual cues communicate vehicle information and a countdown clock, informing and encouraging them to exit their occupied space. When combined with data insights, Cox asserts that digital visual cues enable cities to manage usage and monetize appropriately (timed parking, commercial permits, no parking, and more). Through real-time occupancy, space utilization, and vehicle data served over the Smart Communities platform, video analytics enables c ities to optimize valuable “curb” and “loading zone” space. (See Attachment k for additional information.) Video Analytics: According to Cox 2M, video analytics from the Cox Smart Communities Platform provide organizations with real-time insights that enable them to transform daily observations into data-driven decisions. Cox Smart Communities conducts a comprehensive assessment to determine camera placement, bandwidth requirements, and any environmental or lighting conditions necessary to meet customer requirements. Cox handles all aspects of the buildout from permitting and pole attachment agreements to physical construction and long-term maintenance. Video analytics are advertised as being versatile in that they provide new insights that help improve traffic flow, public safety, and personal security while also better understanding consumer behavior that can lead to new revenues for a local community (Additional information is available in Attachment L). 9 Cox2M has completed a number of ground-breaking projects demonstrating it end-to-end IoT solutions. Several examples include: • In 2020, the City of Henderson, Nevada launched an energy-efficient smart lighting project to monitor the city’s energy usage, empowering leaders to make informed decisions about resource management. Additional information is available here. • In 2021, Cox and the City of Henderson continued their Smart City partnership and expanded on their shared vision of the future city. Additional information is available here. • In 2021, the City of Las Vegas, Nevada launched a smart curbside management solution with Cox2M, now a top 50 Smart City Awards winning solution, aimed at reducing traffic congestion downtown. Additional information is available here. RPV Smart City Concepts: While this report focuses on federal funding opportunities for broadband internet infrastructure improvements, the larger concept of becoming a Smart City can be explored if desired by the City Council. While the term "Smart City" has various definitions, it tends to be centered on governmental operations. Wikipedia provides the following definition: "A smart city is an urban area that uses different types of electronic data collection sensors to supply information which is used to manage assets and resources efficiently. This includes data collected from citizens, devices, and assets that is processed and analyzed to monitor and manage traffic and transportation systems, power plants, water supply networks, waste management, law enforcement, information systems, schools, libraries, hospitals, and other community services." At its core, a “Smart City” is one that uses data and technology to create efficiencies, improve sustainability, create economic development, and enhance quality of life factors for people living and working in the city. Moving forward, staff recommends the City Council consider the following strategy for the City to further broadband and advance Smart City concepts: STAFF RECOMMENDATION #4: Direct Staff to add Smart City Strategic Plan as a project under the “Infrastructure” City Council Goal, to solicit proposals for the development of a smart city strategy and a multi-year implementation plan, and to include funding to prepare the Strategic Plan in the FY 2022 -23 budget. It is critical that the City thinks strategically about the identification and application of smart city technologies to enhance service delivery, improve municipal operations, and improve residents’ quality of life. To define the necessary steps to reach these objectives, Staff recommends contracting with a consulting firm for the development of a Smart City 10 Strategic Plan that will provide the City with a blueprint to implement smart city services over time or as funding becomes available. A Smart City Strategic Plan, which may be developed into a project for the FY 2022-23 City Council Goals, is envisioned to provide the City with a multi-phased roadmap for integrating smart technologies into the urban infrastructure (the physical and organizational assets that provide services to citizens) and leveraging that technology to improve our citizens' quality of life, health, safety, and economic prosperity. Staff recommends that the Council direct staff to add a Smart City Strategic Plan as a project under the “Infrastructure” City Council Goal and to prepare a Request for Proposal (RFP) soliciting proposals from qualified consulting firms to research, facilitate, and design a smart city strategy and multi-year implementation plan tailored to our community's unique needs, assisting the City in advancing smart city concepts. Funding to support this effort may be added to the FY 2022 -23 budget. D. Potential Partnership Opportunities with Cox Communications Since the August 17 meeting, Staff has met several times and collaborated with representatives from Cox Communications' communications team to brainstorm a holistic list of priority projects that the City and Cox Communications can collaborate to help close the digital divide and promote digital literacy among residents. The following is a list of several initiatives in the areas of residential broadband support, digital literacy, and emergency management that Staff recommends partnering with Cox Communications on. Given the scope of the proposed programs described below, Staff anticipates that the City's contribution to these programs would solely consist of in -kind resources such as staff time, facility use, and promotion via the City's website and social media outlets. Staff recommends the City Council consider the following strate gies: STAFF RECOMMENDATION #5: Direct Staff to work with Cox Communications to implement civic engagement programming: Host a “Meet the Tech” Community Popup Event: Cox Communications has indicated an interest in hosting a "Meet the Tech" event at a community center later this year or early next year for Peninsula residents. Cox has tentatively agreed to host a "pop -up" open house featuring booths representing product marketing, construction, field operations/network operations, customer care, public affairs, and Cox business services. This would be an open house format, with Cox technicians and customer service representatives at stations to interact with visitors. Cox would provide equipment and tutorials on how to set up components and troubleshoot common home issues that obstruct service. Based upon the scope of the proposed open house described above, Staff anticipates that the City’s contributions of in-kind resources to this event would consist of Staff time and (possibly) the use of Hesse Park or PVIC, if available. Once the date, times and location of the open house are confirmed, Staff would also promote the event to residents using the City’s website and social media outlets. 11 Promotion of Digital Literacy Resources: Following meetings with Cox Communications representatives, Cox expressed a desire for the City to actively promote its digital services via the City's social media outlets, and Staff has explored the possibility of collaborating with Cox to host a specialized digital academy dedicated to Peninsula residents in order to assist in closing the digital divide and promoting digital literacy among residents. Cox's Digital Academy is the component of Cox's affordability program that focuses on digital literacy. Cox offers free access to tips, educational videos, and tuto rials designed to assist families, educators, community leaders, and students in developing safe and effective online behaviors. This platform is regularly updated with new and relevant information. Cox provides resources for digital literacy to assist fam ilies in acquiring the necessary skills for internet navigation. Prepare an Emergency Preparedness PSA: Cox Communications has offered to donate airtime to Peninsula residents for public service announcements (PSAs) promoting emergency preparedness. Cox has tentatively agreed to ten 30-second spots. This item is valued at $10,000 in-kind. According to Cox, the PSA would have to be created by the City using City resources. If the Council so desires, it may direct staff to further investigate these options with the cox communication representative and RPVtv Staff. Remote Emergency Operations Center (EOC): Cox Communications has expressed an interest in donating office space within its Torrance office location to the Peninsula cities to house a remote emergency operations center (EOC) located off the Peninsula. The EOC would provide meeting rooms and stable internet connections and serve as a coordination point for the Peninsula cities during an emergency. ADDITIONAL INFORMATION: Cox Communications Troubleshooting Resources for Residents In response to the August 17, 2021, City Council directive and concerns expressed by residents about Cox's services and customer service in terms of internet speed and reliability, City Staff has launched a new dedicated residential internet connectivity resources webpage on the City's website. The dedicated information and resources page is available at rpvca.gov/cox. Residents experiencing difficulties with their internet connection now have access to centralized information and resources for identifying and resolving common internet connection problems. Current information on the resource page includes Cox's WiFi Optimization Guide, a helpful Infographic, and Internet Experience Customer Resources. 12 Furthermore, Staff created a form on the dedicated resource page that is similar to a request for City services form for residents who require their connection issues escalated to Cox's Government Affairs team for resolution. CONCLUSION: Based on the information contained in this report, Staff offers the following recommendations for the City Council’s consideration: (1) Receive and file a presentation from Cox Communications on the company's internet speed and reliability services; (2) Direct Staff to draft a customer service standards ordinance for video providers for consideration at a future City Council meeting; (3) Direct Staff to establish a working group/community broadband investment team ; (4) Direct Staff to add Smart City Strategic Plan as a project under the “Infrastructure” City Council Goal, to solicit proposals for the development of a smart city strategy and a multi-year implementation plan, and to include funding to prepare the Strategic Plan in the FY 2022-23 budget; and, (5) Direct Staff to work with Cox Communications to implement civic engagement programming as indicated above. ALTERNATIVES: In addition to the Staff recommendations, the following alternative action s are available for the City Council’s consideration: 1. Take no action at this time. 2. Identify additional projects or initiatives to be explored with Cox Communications. 3. Take other action, as deemed appropriate. 13 Code:Select Code Section:1 or 2 or 1001 Searc 5800. 5810. Up^Add To My Favorites PUBLIC UTILITIES CODE - PUC DIVISION 2.5. THE DIGITAL INFRASTRUCTURE AND VIDEO COMPETITION ACT OF 2006 [5800 - 5970] ( Division 2.5 added by Stats. 2006, Ch. 700, Sec. 3. ) This act shall be known and may be cited as the Digital Infrastructure and Video Competition Act of 2006. (Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.) (a) The Legislature finds and declares all of the following: (1) Increasing competition for video and broadband services is a matter of statewide concern for all of the following reasons: (A) Video and cable services provide numerous benefits to all Californians including access to a variety of news, publ information, education, and entertainment programming. (B) Increased competition in the cable and video service sector provides consumers with more choice, lowers prices, speeds the deployment of new communication and broadband technologies, creates jobs, and benefits the California economy. (C) To promote competition, the state should establish a state-issued franchise authorization process that allows market participants to use their networks and systems to provide video, voice, and broadband services to all residen of the state. (D) Competition for video service should increase opportunities for programming that appeals to California’s diverse population and many cultural communities. (2) Legislation to develop this new process should adhere to the following principles: (A) Create a fair and level playing field for all market competitors that does not disadvantage or advantage one serv provider or technology over another. (B) Promote the widespread access to the most technologically advanced cable and video services to all California communities in a nondiscriminatory manner regardless of socioeconomic status. (C) Protect local government revenues and control of public rights-of-way. (D) Require market participants to comply with all applicable consumer protection laws. (E) Complement efforts to increase investment in broadband infrastructure and close the digital divide. (F) Continue access to and maintenance of the public, education, and government (PEG) channels. (G) Maintain all existing authority of the California Public Utilities Commission as established in state and federal statutes. (3) The public interest is best served when sufficient funds are appropriated to the commission to provide adequate staff and resources to appropriately and timely process applications of video service providers and to ensure full compliance with the requirements of this division. It is the intent of the Legislature that, although video service providers are not public utilities or common carriers, the commission shall collect any fees authorized by this division the same manner and under the same terms as it collects fees from common carriers, electrical corporations, gas corporations, telephone corporations, telegraph corporations, water corporations, and every other public utility providing service directly to customers or subscribers subject to its jurisdiction such that it does not discriminate against video service providers or their subscribers. Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites B-1 5820. 5830. (4) Providing an incumbent cable operator the option to secure a state-issued franchise through the preemption of a existing cable franchise between a cable operator and any political subdivision of the state, including, but not limited to, a charter city, county, or city and county, is an essential element of the new regulatory framework established by this act as a matter of statewide concern to best ensure equal protection and parity among providers and technologi as well as to achieve the goals stated by the Legislature in enacting this act. (b) It is the intent of the Legislature that a video service provider shall pay as rent a franchise fee to the local entity whose jurisdiction service is being provided for the continued use of streets, public facilities, and other rights-of-way the local entity in order to provide service. The Legislature recognizes that local entities should be compensated for t use of the public rights-of-way and that the franchise fee is intended to compensate them in the form of rent or a tol similar to that which the court found to be appropriate in Santa Barbara County Taxpayers Association v. Board of Supervisors for the County of Santa Barbara (1989) 209 Cal. App. 3d 940. (c) It is the intent of the Legislature that collective bargaining agreements be respected. (d) It is the intent of the Legislature that the definition of gross revenues in this division shall result in local entities maintaining their existing level of revenue from franchise fees. (Amended by Stats. 2007, Ch. 123, Sec. 1. Effective January 1, 2008.) (a) Nothing in this division shall be deemed as creating a vested right in a state-issued franchise by the franch holder or its affiliates that would preclude the state from amending the provisions that establish the terms and conditions of a franchise. (b) Nothing in this division shall be construed to eliminate or reduce a telephone corporation’s or video service provider’s obligations under any applicable state or federal environmental protection laws. The local entity shall serve as the lead agency for any environmental review under this division and may impose conditions to mitigate environmental impacts of the applicant’s use of the public rights-of-way that may be required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (c) The holder of a state franchise shall not be deemed a public utility as a result of providing video service under thi division. This division shall not be construed as granting authority to the commission to regulate the rates, terms, an conditions of video services, except as explicitly set forth in this division. (Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.) For purposes of this division, the following words have the following meanings: (a) “Broadband” means any service defined as broadband in the most recent Federal Communications Commission inquiry pursuant to Section 706 of the Telecommunications Act of 1996 (P.L. 104-104). (b) “Cable operator” means any person or group of persons that either provides cable service over a cable system an directly, or through one or more affiliates, owns a significant interest in a cable system; or that otherwise controls or responsible for, through any arrangement, the management and operation of a cable system, as set forth in Section 522(5) of Title 47 of the United States Code. (c) “Cable service” is defined as the one-way transmission to subscribers of either video programming, or other programming service, and subscriber interaction, if any, that is required for the selection or use of video programmin or other programming service, as set forth in Section 522(6) of Title 47 of the United States Code. (d) “Cable system” is defined as set forth in Section 522(7) of Title 47 of the United States Code. (e) “Commission” means the Public Utilities Commission. (f) “Franchise” means an initial authorization, or renewal of an authorization, issued by a franchising entity, regardle of whether the authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement or otherwise, that authorizes the construction and operation of any network in the right-of-way capable of providing video service to subscribers. (g) “Franchise fee” means the fee adopted pursuant to Section 5840. (h) “Holder” or “holder of a state franchise” means a person or group of persons that has been issued a state franchi from the commission pursuant to this division. (i) “Incumbent cable operator” means a cable operator or OVS serving subscribers under a franchise in a particular city, county, or city and county franchise area on January 1, 2007. B-2 5840. (j) “Local entity” means any city, county, city and county, or joint powers authority within the state within whose jurisdiction a holder of a state franchise under this division may provide cable service or video service. (k) “Local franchising entity” means the city, county, city and county, or joint powers authority entitled to require franchises and impose fees on cable operators, as set forth in Section 53066 of the Government Code. (l) “Network” means a component of a facility that is wholly or partly physically located within a public right-of-way a that is used to provide video service, cable service, voice, or data services. (m) “Open-video system” or “OVS” means those services set forth in Section 573 of Title 47 of the United States Cod (n) “OVS operator” means any person or group of persons that either provides cable service over an open-video system directly, or through one or more affiliates, owns a significant interest in an open-video system, or that otherwise controls or is responsible for, through any arrangement, the management of an open-video system. (o) “Public rights-of-way” means the area along and upon any public road or highway, or along or across any of the waters or lands within the state. (p) “State franchise” means a franchise that is issued pursuant to this division. (q) “Subscriber” means a person who lawfully receives video service from the holder of a state franchise for a fee. (r) “Video programming” means programming provided by, or generally considered comparable to programming provided by, a television broadcast station, as set forth in Section 522(20) of Title 47 of the United States Code. (s) “Video service” means video programming services, cable service, or OVS service provided through facilities locat at least in part in public rights-of-way without regard to delivery technology, including Internet protocol or other technology. This definition does not include (1) any video programming provided by a commercial mobile service provider defined in Section 332(d) of Title 47 of the United States Code, or (2) video programming provided as part and via, a service that enables users to access content, information, electronic mail, or other services offered over th public Internet. (t) “Video service provider” means an entity providing video service. (Amended by Stats. 2007, Ch. 123, Sec. 2. Effective January 1, 2008.) (a) The commission is the sole franchising authority for a state franchise to provide video service under this division. Neither the commission nor any local franchising entity or other local entity of the state may require the holder of a state franchise to obtain a separate franchise or otherwise impose any requirement on any holder of a sta franchise except as expressly provided in this division. Sections 53066, 53066.01, 53066.2, and 53066.3 of the Government Code shall not apply to holders of a state franchise. (b) The application process described in this section and the authority granted to the commission under this section shall not exceed the provisions set forth in this section. (c) Any person or corporation who seeks to provide video service in this state for which a franchise has not already been issued, after January 1, 2008, shall file an application for a state franchise with the commission. The commissio may impose a fee on the applicant that shall not exceed the actual and reasonable costs of processing the applicatio and shall not be levied for general revenue purposes. (d) No person or corporation shall be eligible for a state-issued franchise, including a franchise obtained from renewa or transfer of an existing franchise, if that person or corporation is in violation of any final nonappealable order relati to either the Cable Television and Video Provider Customer Service and Information Act (Article 3.5 (commencing wit Section 53054) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code) or the Video Customer Service Act (Article 4.5 (commencing with Section 53088) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code). (e) The application for a state franchise shall be made on a form prescribed by the commission and shall include all o the following: (1) A sworn affidavit, signed under penalty of perjury by an officer or another person authorized to bind the applican that affirms all of the following: (A) That the applicant has filed or will timely file with the Federal Communications Commission all forms required by the Federal Communications Commission before offering cable service or video service in this state. (B) That the applicant or its affiliates agrees to comply with all federal and state statutes, rules, and regulations, including, but not limited to, the following:B-3 (i) A statement that the applicant will not discriminate in the provision of video or cable services as provided in Secti 5890. (ii) A statement that the applicant will abide by all applicable consumer protection laws and rules as provided in Section 5900. (iii) A statement that the applicant will remit the fee required by subdivision (a) of Section 5860 to the local entity. (iv) A statement that the applicant will provide PEG channels and the required funding as required by Section 5870. (C) That the applicant agrees to comply with all lawful city, county, or city and county regulations regarding the time place, and manner of using the public rights-of-way, including, but not limited to, payment of applicable encroachme permit, and inspection fees. (D) That the applicant will concurrently deliver a copy of the application to any local entity where the applicant will provide service. (2) The applicant’s legal name and any name under which the applicant does or will do business in this state. (3) The address and telephone number of the applicant’s principal place of business, along with contact information f the person responsible for ongoing communications with the commission. (4) The names and titles of the applicant’s principal officers. (5) The legal name, address, and telephone number of the applicant’s parent company, if any. (6) A description of the video service area footprint that is proposed to be served, as identified by a collection of Unit States Census Bureau Block numbers (13 digit) or a geographic information system digital boundary meeting or exceeding national map accuracy standards. This description shall include the socioeconomic status information of al residents within the service area footprint. (7) If the applicant is a telephone corporation or an affiliate of a telephone corporation, as defined in Section 234, a description of the territory in which the company provides telephone service. The description shall include socioeconomic status information of all residents within the telephone corporation’s service territory. (8) The expected date for the deployment of video service in each of the areas identified in paragraph (6). (9) Adequate assurance that the applicant possesses the financial, legal, and technical qualifications necessary to construct and operate the proposed system and promptly repair any damage to the public right-of-way caused by th applicant. To accomplish these requirements, the commission may require a bond. (f) The commission may require that a corporation with wholly owned subsidiaries or affiliates is eligible only for a single state-issued franchise and prohibit the holding of multiple franchises through separate subsidiaries or affiliates The commission may establish procedures for a holder of a state-issued franchise to amend its franchise to reflect changes in its service area. (g) The commission shall commence accepting applications for a state franchise no later than April 1, 2007. (h) (1) The commission shall notify an applicant for a state franchise and any affected local entities whether the applicant’s application is complete or incomplete before the 30th calendar day after the applicant submits the application. (2) If the commission finds the application is complete, it shall issue a state franchise before the 14th calendar day after that finding. (3) If the commission finds that the application is incomplete, it shall specify with particularity the items in the application that are incomplete and permit the applicant to amend the application to cure any deficiency. The commission shall have 30 calendar days from the date the application is amended to determine its completeness. (4) The failure of the commission to notify the applicant of the completeness or incompleteness of the application before the 44th calendar day after receipt of an application shall be deemed to constitute issuance of the certificate applied for without further action on behalf of the applicant. (i) The state franchise issued by the commission shall contain all of the following: (1) A grant of authority to provide video service in the service area footprint as requested in the application. (2) A grant of authority to use the public rights-of-way, in exchange for the franchise fee adopted under subdivision (q), in the delivery of video service, subject to the laws of this state. B-4 (3) A statement that the grant of authority is subject to lawful operation of the cable service or video service by the applicant or its successor in interest. (j) The state franchise issued by the commission may be terminated by the video service provider by submitting at least 90 days prior written notice to subscribers, local entities, and the commission. (k) It is unlawful to provide video service without a state or locally issued franchise. (l) Subject to the notice requirements of this division, a state franchise may be transferred to any successor in intere of the holder to which the certificate is originally granted, provided that the transferee first submits all of the information required of the applicant by this section to the commission and is in compliance with Section 5970. (m) In connection with, or as a condition of, receiving a state franchise, the commission shall require a holder to not the commission and any applicable local entity within 14 business days of any of the following changes involving the holder of the state franchise: (1) Any transaction involving a change in the ownership, operation, control, or corporate organization of the holder, including a merger, an acquisition, or a reorganization. (2) A change in the holder’s legal name or the adoption of, or change to, an assumed business name. The holder sha submit to the commission a certified copy of either of the following: (A) The proposed amendment to the state franchise. (B) The certificate of assumed business name. (3) A change in the holder’s principal business address or in the name of the person authorized to receive notice on behalf of the holder. (4) Any transfer of the state franchise to a successor in interest of the holder. The holder shall identify the successor interest to which the transfer is made. (5) The termination of any state franchise issued under this division. The holder shall identify both of the following: (A) The number of subscribers in the service area covered by the state franchise being terminated. (B) The method by which the holder’s subscribers were notified of the termination. (6) A change in one or more of the service areas of the holder of a state franchise pursuant to this division that woul increase or decrease the territory within the service area. The holder shall describe the new boundaries of the affecte service areas after the proposed change is made. (n) Prior to offering video service in a local entity’s jurisdiction, the holder of a state franchise shall notify the local entity that the video service provider will provide video service in the local entity’s jurisdiction. The notice shall be given at least 10 days, but no more than 60 days, before the video service provider begins to offer service. (o) Any video service provider that currently holds a franchise with a local franchising entity is entitled to seek a stat franchise in the area designated in that franchise upon meeting any of the following conditions: (1) The expiration, prior to any renewal or extension, of its local franchise. (2) A mutually agreed upon date set by both the local franchising entity and video service provider to terminate the franchise provided in writing by both parties to the commission. (3) When a video service provider that holds a state franchise provides the notice required pursuant to subdivision (n to a local jurisdiction that it intends to initiate providing video service in all or part of that jurisdiction, a video service provider operating under a franchise issued by a local franchising entity may elect to obtain a state franchise to repla its locally issued franchise. The franchise issued by the local franchising entity shall terminate and be replaced by a state franchise when the commission issues a state franchise for the video service provider that includes the entire service area served by the video service provider and the video service provider notifies the local entity that it will begin providing video service in that area under a state franchise. (p) Notwithstanding any rights to the contrary, an incumbent cable operator opting into a state franchise under this section shall continue to serve all areas as required by its local franchise agreement existing on January 1, 2007, unt that local franchise otherwise would have expired. However, an incumbent cable operator that is also a telephone corporation with less than 1,000,000 telephone customers in California and is providing video service in competition with another incumbent cable operator shall not be required to provide service beyond the area in which it is providin video service as of January 1, 2007. B-5 5850. 5860. (q) (1) There is hereby adopted a state franchise fee payable as rent or a toll for the use of the public rights-of-way holders of the state franchise issued pursuant to this division. The amount of the state franchise fee shall be 5 perce of gross revenues, as defined in subdivision (d) of Section 5860, or the percentage applied by the local entity to the gross revenue of the incumbent cable operator, whichever is less. If there is no incumbent cable operator or upon th expiration of the incumbent cable operator’s franchise, the amount of the state franchise fee shall be 5 percent of gro revenues, as defined in subdivision (d) of Section 5860, unless the local entity adopts an ordinance setting the amou of the franchise fee at less than 5 percent. (2) (A) The state franchise fee shall apply equally to all video service providers in the local entity’s jurisdiction. (B) Notwithstanding subparagraph (A), if the video service provider is leasing access to a network owned by a local entity, the local entity may set a franchise fee for access to the network different from the franchise fee charged to a video service provider for access to the rights-of-way to install its own network. (Amended by Stats. 2007, Ch. 123, Sec. 3. Effective January 1, 2008.) (a) A state-issued franchise shall only be valid for 10 years after the date of issuance, and the holder shall app for a renewal of the state franchise for an additional 10-year period if it wishes to continue to provide video services the area covered by the franchise after the expiration of the franchise. (b) Except as provided in this section, the criteria and process described in Section 5840 shall apply to a renewal registration, and the commission shall not impose any additional or different criteria. (c) Renewal of a state franchise shall be consistent with federal law and regulations. (d) The commission shall not renew the franchise if the video service provider is in violation of any final nonappealab court order issued pursuant to this division. (Amended by Stats. 2007, Ch. 123, Sec. 4. Effective January 1, 2008.) (a) The holder of a state franchise that offers video service within the jurisdiction of the local entity shall calculate and remit to the local entity a state franchise fee, adopted pursuant to subdivision (q) of Section 5840, as provided in this section. The obligation to remit the franchise fee to a local entity begins immediately upon provision video service within that local entity’s jurisdiction. However, the remittance shall not be due until the time of the first quarterly payment required under subdivision (h) that is at least 180 days after the provision of service began. The f remitted to a city or city and county shall be based on gross revenues, as defined in subdivision (d), derived from th provision of video service within that jurisdiction. The fee remitted to a county shall be based on gross revenues earned within the unincorporated area of the county. No fee under this section shall become due unless the local ent provides documentation to the holder of the state franchise supporting the percentage paid by the incumbent cable operator serving the area within the local entity’s jurisdiction. The fee shall be calculated as a percentage of the holder’s gross revenues, as defined in subdivision (d). The fee remitted to the local entity pursuant to this section ma be used by the local entity for any lawful purpose. (b) The state franchise fee shall be a percentage of the holder’s gross revenues, as defined in subdivision (d). (c) No local entity or any other political subdivision of this state may demand any additional fees or charges or other remuneration of any kind from the holder of a state franchise based solely on its status as a provider of video or cab services other than as set forth in this division and may not demand the use of any other calculation method or definition of gross revenues. However, nothing in this section shall be construed to limit a local entity’s ability to impose utility user taxes and other generally applicable taxes, fees, and charges under other applicable provisions of state law that are applied in a nondiscriminatory and competitively neutral manner. (d) For purposes of this section, the term “gross revenues” means all revenue actually received by the holder of a sta franchise, as determined in accordance with generally accepted accounting principles, that is derived from the operation of the holder’s network to provide cable or video service within the jurisdiction of the local entity, including all of the following: (1) All charges billed to subscribers for any and all cable service or video service provided by the holder of a state franchise, including all revenue related to programming provided to the subscriber, equipment rentals, late fees, and insufficient fund fees. (2) Franchise fees imposed on the holder of a state franchise by this section that are passed through to, and paid by the subscribers. B-6 (3) Compensation received by the holder of a state franchise that is derived from the operation of the holder’s netwo to provide cable service or video service with respect to commissions that are paid to the holder of a state franchise compensation for promotion or exhibition of any products or services on the holder’s network, such as a “home shopping” or similar channel, subject to paragraph (4) of subdivision (e). (4) A pro rata portion of all revenue derived by the holder of a state franchise or its affiliates pursuant to compensat arrangements for advertising derived from the operation of the holder’s network to provide video service within the jurisdiction of the local entity, subject to paragraph (1) of subdivision (e). The allocation shall be based on the numb of subscribers in the local entity divided by the total number of subscribers in relation to the relevant regional or national compensation arrangement. (e) For purposes of this section, the term “gross revenue” set forth in subdivision (d) does not include any of the following: (1) Amounts not actually received, even if billed, such as bad debt; refunds, rebates, or discounts to subscribers or other third parties; or revenue imputed from the provision of cable services or video services for free or at reduced rates to any person as required or allowed by law, including, but not limited to, the provision of these services to pub institutions, public schools, governmental agencies, or employees except that forgone revenue chosen not to be received in exchange for trades, barters, services, or other items of value shall be included in gross revenue. (2) Revenues received by any affiliate or any other person in exchange for supplying goods or services used by the holder of a state franchise to provide cable services or video services. However, revenue received by an affiliate of th holder from the affiliate’s provision of cable or video service shall be included in gross revenue as follows: (A) To the extent that treating the revenue as revenue of the affiliate, instead of revenue of the holder, would have t effect of evading the payment of fees that would otherwise be paid to the local entity. (B) The revenue is not otherwise subject to fees to be paid to the local entity. (3) Revenue derived from services classified as noncable services or nonvideo services under federal law, including, not limited to, revenue derived from telecommunications services and information services, other than cable services or video services, and any other revenues attributed by the holder of a state franchise to noncable services or nonvideo services in accordance with Federal Communications Commission rules, regulations, standards, or orders. (4) Revenue paid by subscribers to “home shopping” or similar networks directly from the sale of merchandise throu any home shopping channel offered as part of the cable services or video services. However, commissions or other compensation paid to the holder of a state franchise by “home shopping” or similar networks for the promotion or exhibition of products or services shall be included in gross revenue. (5) Revenue from the sale of cable services or video services for resale in which the reseller is required to collect a fe similar to the franchise fee from the reseller’s subscribers. (6) Amounts billed to, and collected from, subscribers to recover any tax, fee, or surcharge imposed by any governmental entity on the holder of a state franchise, including, but not limited to, sales and use taxes, gross receip taxes, excise taxes, utility users taxes, public service taxes, communication taxes, and any other fee not imposed by this section. (7) Revenue from the sale of capital assets or surplus equipment not used by the purchaser to receive cable services video services from the seller of those assets or surplus equipment. (8) Revenue from directory or Internet advertising revenue, including, but not limited to, yellow pages, white pages, banner advertisement, and electronic publishing. (9) Revenue received as reimbursement by programmers of specific, identifiable marketing costs incurred by the holder of a state franchise for the introduction of new programming. (10) Security deposits received from subscribers, excluding security deposits applied to the outstanding balance of a subscriber’s account and thereby taken into revenue. (f) For the purposes of this section, in the case of a video service that may be bundled or integrated functionally with other services, capabilities, or applications, the state franchise fee shall be applied only to the gross revenue, as defined in subdivision (d), attributable to video service. Where the holder of a state franchise or any affiliate bundles integrates, ties, or combines video services with nonvideo services creating a bundled package, so that subscribers p a single fee for more than one class of service or receive a discount on video services, gross revenues shall be determined based on an equal allocation of the package discount, that is, the total price of the individual classes of service at advertised rates compared to the package price, among all classes of service comprising the package. The B-7 5870. holder’s offering a bundled package shall not be deemed a promotional activity. If the holder of a state franchise doe not offer any component of the bundled package separately, the holder of a state franchise shall declare a stated ret value for each component based on reasonable comparable prices for the product or service for the purpose of determining franchise fees based on the package discount. (g) For the purposes of determining gross revenue under this division, a video service provider shall use the same method of determining revenues under generally accepted accounting principals as that which the video service provider uses in determining revenues for the purpose of reporting to national and state regulatory agencies. (h) The state franchise fee shall be remitted to the applicable local entity quarterly, within 45 days after the end of th quarter for that calendar quarter. Each payment shall be accompanied by a summary explaining the basis for the calculation of the state franchise fee. If the holder does not pay the franchise fee when due, the holder shall pay a la payment charge at a rate per year equal to the highest prime lending rate during the period of delinquency, plus 1 percent. If the holder has overpaid the franchise fee, it may deduct the overpayment from its next quarterly paymen (i) Not more than once annually, a local entity may examine the business records of a holder of a state franchise to t extent reasonably necessary to ensure compensation in accordance with this section. The holder shall keep all busine records reflecting any gross revenues, even if there is a change in ownership, for at least four years after those revenues are recognized by the holder on its books and records. If the examination discloses that the holder has underpaid franchise fees by more than 5 percent during the examination period, the holder shall pay all of the reasonable and actual costs of the examination. If the examination discloses that the holder has not underpaid franchise fees, the local entity shall pay all of the reasonable and actual costs of the examination. In every other instance, each party shall bear its own costs of the examination. Any claims by a local entity that compensation is no in accordance with subdivision (a), and any claims for refunds or other corrections to the remittance of the holder of state franchise, shall be made within three years and 45 days of the end of the quarter for which compensation is remitted, or three years from the date of the remittance, whichever is later. Either a local entity or the holder may, in the event of a dispute concerning compensation under this section, bring an action in a court of competent jurisdictio (j) The holder of a state franchise may identify and collect the amount of the state franchise fee as a separate line ite on the regular bill of each subscriber. (Amended by Stats. 2007, Ch. 123, Sec. 5. Effective January 1, 2008.) (a) The holder of a state franchise shall designate a sufficient amount of capacity on its network to allow the provision of the same number of public, educational, and governmental access (PEG) channels, as are activated and provided by the incumbent cable operator that has simultaneously activated and provided the greatest number of PE channels within the local entity under the terms of any franchise in effect in the local entity as of January 1, 2007. Fo the purposes of this section, a PEG channel is deemed activated if it is being utilized for PEG programming within the local entity’s jurisdiction for at least eight hours per day. The holder shall have three months from the date the local entity requests the PEG channels to designate the capacity. However, the three-month period shall be tolled by any period during which the designation or provision of PEG channel capacity is technically infeasible, including any failur or delay of the incumbent cable operator to make adequate interconnection available, as required by this section. (b) The PEG channels shall be for the exclusive use of the local entity or its designee to provide public, educational, and governmental channels. The PEG channels shall be used only for noncommercial purposes. However, advertising underwriting, or sponsorship recognition may be carried on the channels for the purpose of funding PEG-related activities. The PEG channels shall all be carried on the basic service tier. To the extent feasible, the PEG channels sha not be separated numerically from other channels carried on the basic service tier and the channel numbers for the PEG channels shall be the same channel numbers used by the incumbent cable operator unless prohibited by federal law. After the initial designation of PEG channel numbers, the channel numbers shall not be changed without the agreement of the local entity unless the change is required by federal law. Each channel shall be capable of carrying National Television System Committee (NTSC) television signal. (c) (1) If less than three PEG channels are activated and provided within the local entity as of January 1, 2007, a loc entity whose jurisdiction lies within the authorized service area of the holder of a state franchise may initially reques the holder to designate not more than a total of three PEG channels. (2) The holder shall have three months from the date of the request to designate the capacity. However, the three- month period shall be tolled by any period during which the designation or provision of PEG channel capacity is technically infeasible, including any failure or delay of the incumbent cable operator to make adequate interconnectio available, as required by this section. B-8 (d) (1) The holder shall provide an additional PEG channel when the nonduplicated locally produced video programm televised on a given channel exceeds 56 hours per week as measured on a quarterly basis. The additional channel sh not be used for any purpose other than to continue programming additional government, education, or public access television. (2) For the purposes of this section, “locally produced video programming” means programming produced or provide by any local resident, the local entity, or any local public or private agency that provides services to residents of the franchise area; or any transmission of a meeting or proceeding of any local, state, or federal governmental entity. (e) Any PEG channel provided pursuant to this section that is not utilized by the local entity for at least eight hours p day as measured on a quarterly basis may no longer be made available to the local entity, and may be programmed the holder’s discretion. At the time that the local entity can certify to the holder a schedule for at least eight hours of daily programming, the holder of the state franchise shall restore the channel or channels for the use of the local entity. (f) The content to be provided over the PEG channel capacity provided pursuant to this section shall be the responsibility of the local entity or its designee receiving the benefit of that capacity, and the holder of a state franch bears only the responsibility for the transmission of that content, subject to technological restraints. (g) (1) The local entity shall ensure that all transmissions, content, or programming to be transmitted by a holder of state franchise are provided or submitted in a manner or form that is compatible with the holder’s network, if the loc entity produces or maintains the PEG programming in that manner or form. If the local entity does not produce or maintain PEG programming in that manner or form, then the local entity may submit or provide PEG programming in manner or form that is standard in the industry. The holder shall be responsible for any changes in the form of the transmission necessary to make it compatible with the technology or protocol utilized by the holder to deliver service If the holder is required to change the form of the transmission, the local entity shall permit the holder to do so in a manner that is most economical to the holder. (2) The provision of those transmissions, content, or programming to the holder of a state franchise shall constitute authorization for the holder to carry those transmissions, content, or programming. The holder may carry the transmission, content, or programming outside of the local entity’s jurisdiction if the holder agrees to pay the local entity or its designee any incremental licensing costs incurred by the local entity or its designee associated with that transmission. A local entity shall not enter into a licensing agreement that imposes higher proportional costs for transmission to subscribers outside the local entity’s jurisdiction. (3) The PEG signal shall be receivable by all subscribers, whether they receive digital or analog service, or a combination thereof, without the need for any equipment other than the equipment necessary to receive the lowest cost tier of service. The PEG access capacity provided shall be of similar quality and functionality to that offered by commercial channels on the lowest cost tier of service unless the signal is provided to the holder at a lower quality o with less functionality. (h) Where technically feasible, the holder of a state franchise and an incumbent cable operator shall negotiate in goo faith to interconnect their networks for the purpose of providing PEG programming. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. Holders of a state franchise and incumbent cable operators shall provide interconnection of the PEG channels on reasonable terms and conditions and may not withhold the interconnection. If a holder of a state franchise and an incumbent cable operato cannot reach a mutually acceptable interconnection agreement, the local entity may require the incumbent cable operator to allow the holder to interconnect its network with the incumbent’s network at a technically feasible point o the holder’s network as identified by the holder. 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 facilities necessary for the interconnection. The cost of any interconnection shall be borne by the holder requesting t interconnection unless otherwise agreed to by the parties. (i) A holder of a state franchise shall not be required to interconnect for, or otherwise to transmit, PEG content that i branded with the logo, name, or other identifying marks of another cable operator or video service provider. For purposes of this section, PEG content is not branded if it includes only production credits or other similar information displayed at the conclusion of a program. The local entity may require a cable operator or video service provider to remove its logo, name, or other identifying marks from PEG content that is to be made available through interconnection to another provider of PEG capacity. (j) In addition to any provision for the PEG channels required under subdivisions (a) to (i), inclusive, the holder shall reserve, designate, and, upon request, activate a channel for carriage of state public affairs programming administer B-9 5880. 5885. by the state. (k) All obligations to provide and support PEG channel facilities and institutional networks and to provide cable servic to community buildings contained in a locally issued franchise existing on December 31, 2006, shall continue until th local franchise expires, until the term of the franchise would have expired if it had not been terminated pursuant to subdivision (o) of Section 5840, or until January 1, 2009, whichever is later. (l) After January 1, 2007, and until the expiration of the incumbent cable operator’s franchise, if the incumbent cable operator has existing unsatisfied obligations under the franchise to remit to the local entity any cash payments for th ongoing costs of public, educational, and government access channel facilities or institutional networks, the local ent shall divide those cash payments among all cable or video providers as provided in this section. The fee shall be the holder’s pro rata per subscriber share of the cash payment required to be paid by the incumbent cable operator to th local entity for the costs of PEG channel facilities. All video service providers and the incumbent cable operator shall subject to the same requirements for recurring payments for the support of PEG channel facilities and institutional networks, whether expressed as a percentage of gross revenue or as an amount per subscriber, per month, or otherwise. (m) In determining the fee described in subdivision (l) on a pro rata per subscriber basis, all cable and video service providers shall report, for the period in question, to the local entity the total number of subscribers served within the local entity’s jurisdiction, which shall be treated as confidential by the local entity and shall be used only to derive th per subscriber fee required by this section. The local entity shall then determine the payment due from each provide based on a per subscriber basis for the period by multiplying the unsatisfied cash payments for the ongoing capital costs of PEG channel facilities by a ratio of the reported subscribers of each provider to the total subscribers within th local entity as of the end of the period. The local entity shall notify the respective providers, in writing, of the resultin pro rata amount. After the notice, any fees required by this section shall be remitted to the applicable local entity quarterly, within 45 days after the end of the quarter for the preceding calendar quarter, and may only be used by th local entity as authorized under federal law. (n) A local entity may, by ordinance, establish a fee to support PEG channel facilities consistent with federal law that would become effective subsequent to the expiration of any fee imposed pursuant to subdivision (l). If no such fee exists, the local entity may establish the fee at any time. The fee shall not exceed 1 percent of the holder’s gross revenues, as defined in Section 5860. Notwithstanding this limitation, if, on December 31, 2006, a local entity is imposing a separate fee to support PEG channel facilities that is in excess of 1 percent, that entity may, by ordinance establish a fee no greater than that separate fee, and in no event greater than 3 percent, to support PEG activities. T ordinance shall expire, and may be reauthorized, upon the expiration of the state franchise. (o) The holder of a state franchise may recover the amount of any fee remitted to a local entity under this section by billing a recovery fee as a separate line item on the regular bill of each subscriber. (p) A court of competent jurisdiction shall have exclusive jurisdiction to enforce any requirement under this section o resolve any dispute regarding the requirements set forth in this section, and no provider may be barred from the provision of service or be required to terminate service as a result of that dispute or enforcement action. (Amended by Stats. 2007, Ch. 123, Sec. 6. Effective January 1, 2008.) Holders of state franchises shall comply with the Emergency Alert System requirements of the Federal Communications Commission in order that emergency messages may be distributed over the holder’s network. Any provision in a locally issued franchise authorizing local entities to provide local emergency notifications shall remain i effect, and shall apply to all holders of a state-issued franchise in the same local area, for the duration of the locally issued franchise, until the term of the franchise would have expired were the franchise not terminated pursuant to subdivision (o) of Section 5840, or until January 1, 2009, whichever is later. (Amended by Stats. 2007, Ch. 123, Sec. 7. Effective January 1, 2008.) (a) The local entity shall allow the holder of a state franchise under this division to install, construct, and maintain a network within public rights-of-way under the same time, place, and manner as the provisions governing telephone corporations under applicable state and federal law, including, but not limited to, the provisions of Section 7901.1. (b) Nothing in this division shall be construed to change existing law regarding the permitting process or compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) for projects by a holder of a state franchise.B-10 5890. (c) (1) For purposes of this section, an “encroachment permit” means any permit issued by a local entity relating to construction or operation of facilities pursuant to this division. (2) A local entity shall either approve or deny an application from a holder of a state franchise for an encroachment permit within 60 days of receiving a completed application. An application for an encroachment permit is complete when the applicant has complied with all statutory requirements, including the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (3) If the local entity denies an application for an encroachment permit, it shall, at the time of notifying the applicant of the denial, furnish to the applicant a detailed explanation of the reason for the denial. (4) The local entity shall adopt regulations prescribing procedures for an applicant to appeal the denial of an encroachment permit application issued by a department of the local entity to the governing body of the local entity. (5) Nothing in this section precludes an applicant and a local entity from mutually agreeing to an extension of any tim limit provided by this section. (d) A local entity may not enforce against the holder of a state franchise any rule, regulation, or ordinance that purports to allow the local entity to purchase or force the sale of a network. (Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.) (a) A cable operator or video service provider that has been granted a state franchise under this division may not discriminate against or deny access to service to any group of potential residential subscribers because of the income of the residents in the local area in which the group resides. (b) Holders or their affiliates with more than 1,000,000 telephone customers in California satisfy subdivision (a) if al the following conditions are met: (1) Within three years after it begins providing video service under this division, at least 25 percent of households w access to the holder’s video service are low-income households. (2) Within five years after it begins providing video service under this division and continuing thereafter, at least 30 percent of the households with access to the holder’s video service are low-income households. (3) Holders provide service to community centers in underserved areas, as determined by the holder, without charge at a ratio of one community center for every 10,000 video subscribers. The holder shall not be required to take its facilities beyond the appropriate demarcation point outside the community center building or perform any inside wiri The community center may not receive service from more than one state franchise holder at a time under this sectio For purposes of this section, “community center” means any facility operated by an organization that has qualified fo the California Teleconnect Fund, as established in Section 280 and that will make the holder’s service available to the community. (c) Holders or their affiliates with fewer than 1,000,000 telephone customers in California satisfy this section if they offer video service to all customers within their telephone service area within a reasonable time, as determined by th commission. However, the commission shall not require the holder to offer video service if the cost to provide video service is substantially above the average cost of providing video service in that telephone service area. (d) When a holder provides video service outside of its telephone service area, is not a telephone corporation, or offe video service in an area where no other video service is being offered, other than direct-to-home satellite service, there is a rebuttable presumption that discrimination in providing service has not occurred within those areas. The commission may review the holder’s proposed video service area to ensure that the area is not drawn in a discriminatory manner. (e) For holders or their affiliates with more than 1,000,000 telephone customers in California, either of the following shall apply: (1) If the holder is predominantly deploying fiber optic facilities to the customer’s premise, the holder shall provide access to its video service to a number of households at least equal to 25 percent of the customer households in the holder’s telephone service area within two years after it begins providing video service under this division, and to a number at least equal to 40 percent of those households within five years. (2) If the holder is not predominantly deploying fiber optic facilities to the customer’s premises, the holder shall provide access to its video service to a number of households at least equal to 35 percent of the households in the holder’s telephone service area within three years after it begins providing video service under this division, and to a number at least equal to 50 percent of these households within five years.B-11 (3) A holder shall not be required to meet the 40-percent requirement in paragraph (1) or the 50-percent requireme in paragraph (2) until two years after at least 30 percent of the households with access to the holder’s video service subscribe to it for six consecutive months. (4) If 30 percent of the households with access to the holder’s video service have not subscribed to the holder’s vide service for six consecutive months within three years after it begins providing video service, the holder may submit validating documentation to the commission. If the commission finds that the documentation validates the holder’s claim, then the commission shall permit a delay in meeting the 40-percent requirement in paragraph (1) or the 50- percent requirement in paragraph (2) until the time that the holder does provide service to 30 percent of the households for six consecutive months. (f) (1) After two years of providing service under this division, the holder may apply to the state franchising authorit for an extension to meet the requirements of subdivision (b), (c), or (e). Notice of this application shall also be provided to the telephone customers of the holder, the Secretary of the Senate, and the Chief Clerk of the Assembly. (2) Upon application, the franchising authority shall hold public hearings in the telephone service area of the applican (3) In reviewing the failure to satisfy the obligations contained in subdivision (b), (c), or (e), the franchising authorit shall consider factors that are beyond the control of the holder, including, but not limited to, the following: (A) The ability of the holder to obtain access to rights-of-way under reasonable terms and conditions. (B) The degree to which developments or buildings are not subject to competition because of existing exclusive arrangements. (C) The degree to which developments or buildings are inaccessible using reasonable technical solutions under commercially reasonable terms and conditions. (D) Natural disasters. (4) The franchising authority may grant the extension only if the holder has made substantial and continuous effort t meet the requirements of subdivision (b), (c), or (e). If an extension is granted the franchising authority shall establ a new compliance deadline. (g) Local governments may bring complaints to the state franchising authority that a holder is not offering video service as required by this section, or the state franchising authority may open an investigation on its own motion. T state franchising authority shall hold public hearings before issuing a decision. The commission may suspend or revo the franchise if the holder fails to comply with the provisions of this division. (h) If the state franchising authority finds that the holder is in violation of this section, it may, in addition to any othe remedies provided by law, impose a fine not to exceed 1 percent of the holder’s total monthly gross revenue receive from provision of video service in the state each month from the date of the decision until the date that compliance i achieved. (i) If a court finds that the holder of the state franchise is in violation of this section, the court may immediately terminate the holder’s state franchise, and the court shall, in addition to any other remedies provided by law, impose fine not to exceed 1 percent of the holder’s total gross revenue of its entire cable and service footprint in the state in the full calendar month immediately prior to the decision. (j) As used in this section, the following definitions shall apply: (1) “Access” means that the holder is capable of providing video service at the household address using any technology, other than direct-to-home satellite service, providing two-way broadband Internet capability and video programming, content, and functionality, regardless of whether any customer has ordered service or whether the owner or landlord or other responsible person has granted access to the household. If more than one technology is utilized, the technologies shall provide similar two-way broadband Internet accessibility and similar video programming. (2) “Customer’s household” means those residential households located within the holder’s existing telephone service area that are customers of the service by which that telephone service area is defined. (3) “Household” means, consistent with the United States Census Bureau, a house, an apartment, a mobilehome, a group of rooms, or a single room that is intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live and eat separately from any other persons in the building and which have direc access from the outside of the building or through a common hall. B-12 5900. (4) “Low-income household” means those residential households located within the holder’s existing telephone servic area where the average annual household income is less than thirty-five thousand dollars ($35,000) based on the United States Census Bureau estimates adjusted annually to reflect rates of change and distribution through January 2007. (k) Nothing in this section shall be construed to require a holder to provide video service outside its wireline footprin or to match the existing service area of any cable operator. (Amended by Stats. 2007, Ch. 123, Sec. 8. Effective January 1, 2008.) (a) The holder of a state franchise shall comply with the provisions of Sections 53055, 53055.1, 53055.2, and 53088.2 of the Government Code, and any other customer service standards pertaining to the provision of video service established by federal law or regulation or adopted by subsequent enactment of the Legislature. All customer service and consumer protection standards under this section shall be interpreted and applied to accommodate newe or different technologies while meeting or exceeding the goals of the standards. (b) The holder of a state franchise shall comply with provisions of Section 637.5 of the Penal Code and the privacy standards contained in Section 551 and following of Title 47 of the United States Code. (c) The local entity shall enforce all of the customer service and protection standards of this section with respect to complaints received from residents within the local entity’s jurisdiction, but it may not adopt or seek to enforce any additional or different customer service or other performance standards under Section 53055.3 or subdivision (q), (r or (s) of Section 53088.2 of the Government Code, or any other authority or provision of law. (d) The local entity shall, by ordinance or resolution, provide a schedule of penalties for any material breach by a holder of a state franchise of this section. No monetary penalties shall be assessed for a material breach if it is out o the reasonable control of the holder. Further, no monetary penalties may be imposed prior to January 1, 2007. Any schedule of monetary penalties adopted pursuant to this section shall in no event exceed five hundred dollars ($500) for each day of each material breach, not to exceed one thousand five hundred dollars ($1,500) for each occurrence a material breach. However, if a material breach of this section has occurred, and the local entity has provided notice and a fine or penalty has been assessed, and if a subsequent material breach of the same nature occurs within 12 months, the penalties may be increased by the local entity to a maximum 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 brea If a third or further material breach of the same nature occurs within those same 12 months, and the local entity has provided notice and a fine or penalty has been assessed, the penalties may be increased to a maximum of two thousand five hundred dollars ($2,500) for each day of each material breach, not to exceed seven thousand five hundred dollars ($7,500) 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 exte 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 othe monetary damages may be assessed. (e) The local entity shall give the video service provider written notice of any alleged material breach of the custome service standards of this division and allow the video provider at least 30 days from receipt of the notice to remedy t specified material breach. (f) A material breach for the purposes of assessing penalties shall be deemed to have occurred for each day within th jurisdiction of each local entity, following the expiration of the period specified in subdivision (e), that any material breach has not been remedied by the video service provider, irrespective of the number of customers or subscribers affected. (g) Any penalty assessed pursuant to this section shall be remitted to the local entity, which shall submit one-half of the penalty to the Digital Divide Account established in Section 280.5. (h) Any interested person may seek judicial review of a decision of the local entity in a court of appropriate jurisdictio For this purpose, a court of law shall conduct a de novo review of any issues presented. (i) 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 local franchising entity, pursuant to this section shall not be binding upon a court of law. For this purpose, a court of law shall conduct de nov review of any issues presented. B-13 5910. 5920. 5930. (j) For purposes of this section, “material breach” means any substantial and repeated failure of a video service provider to comply with service quality and other standards specified in subdivision (a). (k) The Public Advocate’s Office of the Public Utilities Commission shall have authority to advocate on behalf of video subscribers regarding renewal of a state-issued franchise and enforcement of this section, and Sections 5890 and 5950. For this purpose, the office shall have access to any information in the possession of the commission subject t all restrictions on disclosure of that information that are applicable to the commission. (Amended by Stats. 2018, Ch. 51, Sec. 48. (SB 854) Effective June 27, 2018.) (a) The holder of a state franchise shall perform background checks of applicants for employment, according t current business practices. (b) A background check equivalent to that performed by the holder shall also be conducted on all of the following: (1) Persons hired by a holder under a personal service contract. (2) Independent contractors and their employees. (3) Vendors and their employees. (c) Independent contractors and vendors shall certify that they have obtained the background checks required pursuant to subdivision (b), and shall make the background checks available to the holder upon request. (d) Except as otherwise provided by contract, the holder of a state franchise shall not be responsible for administerin the background checks and shall not assume the costs of the background checks of individuals who are not applicant for employment of the holder. (e) (1) Subdivision (a) only applies to applicants for employment for positions that would allow the applicant to have direct contact with or access to the holder’s network, central office, or subscriber premises, and perform activities th involve the installation, service, or repair of the holder’s network or equipment. (2) Subdivision (b) only applies to persons that have direct contact with or access to the holder’s network, central office, or subscriber premises, and perform activities that involve the installation, service, or repair of the holder’s network or equipment. (f) This section does not apply to temporary workers performing emergency functions to restore the network of a holder to its normal state in the event of a natural disaster or an emergency that threatens or results in the loss of service. (Amended by Stats. 2007, Ch. 123, Sec. 10. Effective January 1, 2008.) A holder of a state franchise employing more than 750 total employees in California shall annually report to th commission all of the following: (a) The number of California residents employed by the holder, calculated on a full-time or full-time equivalent basis (b) The percentage of the holder’s total domestic workforce, calculated on a full-time or full-time equivalent basis. (c) The types and numbers of jobs by occupational classification held by residents of California employed by holders state franchises and the average pay and benefits of those jobs and, separately, the number of out-of-state residents employed by independent contractors, companies, and consultants hired by the holder, calculated on a full-time or fu time equivalent basis, when the holder is not contractually prohibited from disclosing the information to the public. T paragraph applies only to those employees of an independent contractor, company, or consultant that are personally providing services to the holder, and does not apply to employees of an independent contractor, company, or consultant not personally performing services for the holder. (d) The number of net new positions proposed to be created directly by the holder of a state franchise during the upcoming year by occupational classifications and by category of full-time, part-time, temporary, and contract employees. (Amended by Stats. 2015, Ch. 612, Sec. 64. (SB 697) Effective January 1, 2016.) (a) Notwithstanding any other provision of this division, any video service provider that currently holds a franchise with a local franchising entity in a county that is a party, either alone or in conjunction with any other local franchising entity located in that county, to a stipulation and consent judgment executed by the parties thereto and approved by a federal district court shall neither be entitled to seek a state franchise in any area of that county, B-14 5940. 5950. 5960. including any unincorporated area and any incorporated city of that county, nor abrogate any existing franchise befo July 1, 2014. Prior to July 1, 2014, the video service provider shall continue to be exclusively governed by any existi franchise with a local franchising entity for the term of that franchise and any and all issues relating to renewal, transfer, or otherwise in relation to that franchise shall be resolved pursuant to that existing franchise and otherwise applicable federal and local law. This subdivision shall not be deemed to extend any existing franchise beyond its ter (b) When an incumbent cable operator is providing service under an expired franchise or a franchise that expires before January 2, 2008, the local entity may extend that franchise on the same terms and conditions through Januar 2, 2008. A state franchise issued to any incumbent cable operator shall not become operative prior to January 2, 200 (c) When a video service provider that holds a state franchise provides the notice required pursuant to subdivision (n of Section 5840 to a local entity, the local franchising entity may require all incumbent cable operators to seek a stat franchise and shall terminate the franchise issued by the local franchising entity when the commission issues a state franchise for the video service provider that includes the entire service area served by the video service provider and the video service provider notifies the local entity that it will begin providing video service in that area under a state franchise. (Amended by Stats. 2007, Ch. 123, Sec. 11. Effective January 1, 2008.) The holder of a state franchise under this division who also provides stand-alone, residential, primary line, bas telephone service shall not increase this rate to finance the cost of deploying a network to provide video service. (Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.) The commission shall not permit a telephone corporation that is providing video service directly or through its affiliates pursuant to a state-issued franchise as an incumbent local exchange carrier to increase rates for residential primary line, basic telephone service above the rate as of July 1, 2006, until January 1, 2009, unless that telephone corporation is regulated under rate of return regulation. However, the commission may allow rate increases to reflect increases in inflation as shown in the Consumer Price Index published by the Bureau of Labor Statistics. This section does not affect the authority of the commission to authorize an increase in rates for basic telephone service that is bundled with other services and priced as a bundle. Nothing in this section is intended to prohibit implementation of commission decision D. 06-04-071 to the extent it has not been implemented prior to July 1, 2006. (Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.) (a) For purposes of this section, “census tract” has the same meaning as used by the United States Census Bureau, and “household” has the same meaning as specified in Section 5890. (b) Every holder, no later than April 1, 2008, and annually no later than April 1 thereafter, shall report to the commission on a census tract basis the following information: (1) Broadband information: (A) The number of households to which the holder makes broadband available in this state. If the holder does not maintain this information on a census tract basis in its normal course of business, the holder may reasonably approximate the number of households based on information it keeps in the normal course of business. (B) The number of households that subscribe to broadband that the holder makes available in this state. (C) Whether the broadband provided by the holder utilizes wireline-based facilities or another technology. (2) Video information: (A) If the holder is a telephone corporation: (i) The number of households in the holder’s telephone service area. (ii) The number of households in the holder’s telephone service area that are offered video service by the holder. (B) If the holder is not a telephone corporation: (i) The number of households in the holder’s video service area. (ii) The number of households in the holder’s video service area that are offered video service by the holder. (3) Low-income household information: (A) The number of low-income households in the holder’s video service area. B-15 5970. (B) The number of low-income households in the holder’s video service area that are offered video service by the holder. (c) All information submitted to the commission pursuant to this section shall be disclosed to the public only as provided for pursuant to Section 583. (Amended by Stats. 2015, Ch. 612, Sec. 65. (SB 697) Effective January 1, 2016.) Subject to the requirements of this division, a state franchise may be transferred to any successor in interest o the holder to which the certificate originally is granted, whether this transfer is by merger, sale, assignment, bankruptcy, restructuring, or any other type of transaction, provided that the following conditions are met: (a) The transferee submits to the commission all of the information required by this division of an applicant. (b) The transferee agrees that any collective bargaining agreement entered into by a video service provider shall continue to be honored, paid, or performed to the same extent as would be required if the video service provider continued to operate under its franchise for the duration of that franchise unless the duration of that agreement is limited by its terms or by federal or state law. (Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.) B-16 1 California Public Utilities Commission January 2016 Frequently Asked Questions ________________________________________________________________________ Digital Infrastructure and Video Competition Act of 2006 Q: What has changed in video franchising? A: The Legislature passed, and Governor Schwarzenegger signed, Assembly Bill 2987 (Nunez), which established a new state video franchise process. The Digital Infrastructure and Video Competition Act of 2006 (DIVCA) creates a new state franchise process that replaces the current local franchise process to speed new infrastructure investment and to promote competition for broadband and video services in California. Q: What is the California Public Utilities Commission’s (PUC) role in video franchising? A: DIVCA directs the California Public Utilities Commission (PUC) to issue state video franchises for the provision of video. The PUC has a limited role set forth by DIVCA that involves approving applications; enforcing antidiscrimination and build-out rules; preventing the use of stand-alone, residential, primary line, basic phone service revenues from being used to pay for deployment of video infrastructure; and handling complaints brought forth by local governments regarding discrimination or build-out. Q: What aspects of video franchising does the PUC not regulate? A: Local entities, not the PUC, have sole authority to regulate the public, education, and government (PEG) channel requirements; Emergency Alert System requirements imposed by the Federal Communications Commission; and federal and state customer service and protection standards. A local entity will be the lead agency for any environmental review with respect to network construction, installation, and maintenance in local rights-of-way. The PUC expects to work in partnership with the local entities to ensure that issues of concern are promptly dealt with. C-1 2 Q: What is the main benefit of a state video franchise program? A: This state video program facilitates market entry of those companies that are most eager to compete against existing cable and satellite video companies. Under current law, absent a state video franchise program, a company that wants to provide video service must obtain local cable franchises from each local city or town. This new law means that new video competitors may greatly speed up their deployment of state-of-the-art infrastructure that will deliver video and broadband services to Californians. Q: What are the consumer benefits of the new video franchise order? A: The California video franchise law will bring new competitors to cable and satellite video providers. This new competition is expected to drive down prices for video services (e.g., rates for cable and satellite video services from providers like DISH Network and DirecTV). Once this new advanced infrastructure is in place, it also may be used to provide very fast Internet service to consumers, in addition to new services like on- demand television, movies, music, and more. Q: What is the PUC doing to protect consumers, especially low-income and rural Californians? A: The PUC intends to vigorously enforce the antidiscrimination rules and build-out requirements of the DIVCA to ensure that the “Digital Divide” is narrowed in California. An enforcement process is set forth in the video franchise decision that makes it clear that the PUC intends to enforce these provisions, using sanctions ranging from monetary fines, suspension, and revocation of the video franchise license. Q: Who will consumers call if they have a problem with their cable or video service bill? A: Consumers will continue to contact their local franchise authority – usually a city or county – about their cable or video service bills. The PUC does not have authority to enforce customer service issues related to cable; that authority remains with local government pursuant to state and federal law. Q: Who is responsible for rate increases and changes in promotional packages? A: Rates for video programming are deregulated, and the CPUC has no jurisdiction in pricing issues. Q: Who has authority to enforce video customer service rules? A: Cities and counties have the sole jurisdiction to enforce video customer service rules. Disputes between local entities and franchise holders can be settled in court. For more information on the CPUC, please visit www.cpuc.ca.gov. C-2 D-1 D-2 D-3 D-4 PV NT2.0 Complete (14,750 Homes Passed) PV NT2.0 2022 Planned Nodes (10,591 Homes Passed) PV NT2.0 2023 Planned Nodes (8,328 Homes Passed) Palos Verdes Fiber Node Boundary MAP LEGEND PA LOS VERDES NT2.0 NODE ACTIVITY F-1 Keeping Rancho Palos Verdes Connected August 17, 2021 Rancho Palos Verdes City Council I-1 Introductions Dave Simpson Manager, Government Relations Chanelle Hawken Vice President, Government & Public Affairs Carla Leal Manager, Construction & Planning Dennis Morgan Vice President, Construction Ingo Hentschel Senior Vice President, Region Manager I-2 Resetting the Stage: COVID and Impacts on Broadband Internet Service I-3 I-4 COMMITTED TO CONNECTING PEOPLE AND COMMUNITIES We know a fast, reliable internet connection is essential. We share your goal of ensuring our neighbors have access to robust broadband networks. Whether you’re considering solutions to increase broadband access and adoption, or looking to build a smarter, more efficient community, we’re your trusted partner. Connecting Families in Need Most people are already served by network infrastructure and have the ability to connect to the internet. We support adoption efforts to help connect those families in need. We can partner •Connect2Compete, our affordable Internet product for low-income families •Bulk Accounts •Utility Assistance Services •Emergency Broadband Benefit •Tech Centers/Innovation Labs •Cox Digital Academy Commitment in Action 3rd largest cable provider in the U.S. $15B network investments over 10 years $10B investment committed over next 5 years Since 2012 connected 886,000 people to low-cost internet I-5 Federal Funding for Broadband Example funding areas from larger allocations: Rural Digital Opportunity Fund (FCC): $695M Local Fiscal Recovery Fund (Treasury): $350B -American Rescue Plan Act (ARPA) Emergency Broadband Benefit (FCC): $3.2B from the Consolidated Appropriations Act (CAA) Emergency Connectivity Fund (FCC): $7.2B -ARPA Coronavirus Capital Project Funds (Treasury): $10B –ARPA Three major spending bills total $655B available for broadband: CARES Act -(March 27, 2020) Consolidate Appropriations Act of 2021 -(December 27, 2020) American Rescue Plan Act (ARPA) -(March 11, 2021) I-6 Update Since October 2020 Service Reliability & Safety Upgrades Customer Service Projects On the Horizon I-7 Service Reliability I-8 Network Transformation What it is: •A 10-year, multi-billion-dollar initiative to transform our network •Among the largest initiatives in Cox’s history, and involves all business units as a change of this magnitude also transforms our business •Meeting the consumers’ demand for bandwidth as it increases up to 50% Year over Year What it delivers: •Enables our company to better support smart homes,smart neighbor hoods,smart businesses and smart cities of the future by improving network reliability and increasing bandwidth I-9 Network Transformation in Rancho Palos Verdes •For 2021: we are a third of the way complete with planned upgrades •Balance of planned upgrades in 2021 expected to be completed this year •We plan these upgrades where utilization is high; we do add new areas to upgrade •City can expect approximately the same number of upgrades for 2022 I-10 State Required Back-up Power Requirements Wireline Resiliency Project in Fire Risk Areas •Rancho Palos Verdes is in a Tier 2 Fire Risk Area •City has a total of 55 identified sites for these projects •Since May 2021, Cox has submitted 33 permits to the city with more coming within the next two weeks I-11 Customer Service I-12 Customer Service Improvements Self-Service App Call Back Identification Text Messenger Implemented I-13 I-14 I-15 Rancho Palos Verdes 02/28/2022 J-1 KEY AREAS OF VULNERABILITY LACK OF COMMUNICATIONS Unconnected infrastructure created cumbersome manual processes that don’t scale. FOR CITIES TODAY. AGING INFRASTRUCTURE Owners faced with the need to upgrade lighting infrastructure but lack the resources and funding necessary. DEFFERRED MAINTENANCE Utility owners lack trending data to help address current and future issues. This is a reactive business model. WORKFLOW OPTIMIZATION Utility owners lack visibility into their infrastructure and thus incur costs to simply roll a truck for verifications. J-2 •Municipalities face a growing number of infrastructure issues •Aging, outdated hardware and equipment, along with rising maintenance and energy costs, is an unsustainable business model for cities •Migrating to smart lighting solutions allow cities to update their existing infrastructure gradually •Smart technology helps operators make faster, more informed decisions about managing energy usage and reducing maintenance costs MIGRATING TO A MORE SUSTAINABLE BUSINESS MODEL. WHY CITIES ARE MOVING TO SMART LIGHTING. J-3 Finding the right technology, the right financial model, the right deployment partner and the right custom fit that creates value for your unique project is a huge undertaking. The stability of a partner like Cox gives you the comfort to know we will be here to plan with you long-term. Cox Business is your partner that can bring it all together so you can focus on what is most important for you, running your business. COX BUSINESS MAKES A COMPLEX PROCESS EASY. WHY COX IS THE RIGHT CHOICE FOR SMART LIGHTING. J-4 HOW SMART LIGHTING WORKS IN THE FIELD. •Control into the hardware of the fixture to adjust timing, brightness, etc., •Tilt sensor alerts when fixture requires maintenance or emergency response –Stray voltage detection can identify improperly grounded/bonded electrical equipment for electrical hazard alerts –MAC sniffer & Bluetooth beaconing enable targeted location-based analysis and applications support •Captures energy usage over time •Capable of setting dimming schedules and sensing human interaction STANDARD LIGHTING CONTROLLER WITH UBICELL •All lighting controller capabilities plus acts as a hub for edge processing and includes cameras, microphones, etc., •Can serve as a WiFi access point and extend wireless infrastructure •Provides options for wireless antenna mounts and functionality •Ability to attach other smart devices that capture data and create insights ADVANCED LIGHTING CONTROLLER WITH INTEGRATED UBIHUB STANDARD ADVANCED J-5 ASSESSMENTS & INFRASTRUCTURE UPDATES UNDERSTANDING THE PROCESS & PHASES. LED BULB REPLACEMENTS ON INFRASTRUCTURE ONBOARDING, TRAINING AND ONGOING SUPPORT INSTALL STANDARD CONTROLLERS INSTALL ADVANCED CONTROLLERS Planning begins on identifying the different pole categories and which elements of the infrastructure may need to be updated. Our crews work to migrate bulb fixtures to LEDs which use 50% less energy versus a normal bulb according to Energy.gov. Installation of standard controllers provide operational efficiencies and dimming capabilities to further reduce energy costs by 10%. Installation of advanced controllers provide ability to attach additional smart devices as well as provide data points for extending area WiFi capabilities. Operationalizing of the infrastructure begins allowing for better decision making and deployment of additional smart elements. J-6 SMART LIGHTING PLATFORM OVERVIEW. •Quick-view of lights or controllers in need of maintenance •Set alerts / notifications and recipients •View energy consumption for individual lights (and groups)over time •Identify anomalies in energy usage to drive pro -active maintenance •Easily export energy usage data •Remote control of the streetlights with ability to turn lights on/off,dynamically change lighting schedules and dimming settings •Easy GIS location and map view of all streetlights LIGHTING PLATFORM DIGITIZES STREETLIGHTS ENABLING REMOTE CONTROL AND OPERATIONAL EFFICIENCIES J-7 COX SMART LIGHTING CUSTOMER SUCCESS. Cox is singularly focused on customer success and assigns a dedicated Customer Success Lead to coordinate support and project deliverables to maximize system up time and ensure the pilot stays on track and hits on the agreed upon KPIs. Cox provides 24/7/365 technical support and proactive monitoring to ensure system uptime and performance •Convenient 800 number for easy access to the help desk •Tier 1:Serves as the entry point for trouble tickets and triaging issues •Tier 2/3:Technical experts engage to resolve technical issues and manage 3rd party vendor support Cox works with its partners to establish and deliver on robust SLAs appropriate for each engagement: •Device uptime (Per OEM warranties) •Platform availability •Network performance (where Cox manages network) •Response/ Escalation times for each tier of support •Hardware Replacement •Delivery of alerts and notifications Dedicated Customer Success Lead serves as single point of contact for all communications during the engagement •Provides proactive monitoring of the health of the solution •Assists with report generation and scheduling •Ensures consistent customer feedback loop •Manages the escalation process to ensure timely resolution of issues CUSTOMER SUCCESS LEAD INDUSTRY LEADING CUSTOMER SUPPORT ROBUST SERVICE LEVEL AGREEMENTS J-8 MONITORING KPIs & ENABLING ACTIVE MANAGEMENT. •Quick view of lights or controllers in need of maintenance •Identify anomalies in energy usage to drive pro -active maintenance •Schedule automatic alerts to notify public works when a light or controller is showing power loss or outage / day burn / blackout / brownout •Daily reports automatically generated and distributed to City team •The city can access real -time reporting and pinpoint locations as needed •Open API allows for easy integration with other city systems and data repositories Platform dashboards provide real-time status of system health and performance at-a-glance and track energy/cost savings relative to historical baseline. J-9 ENHANCE ROI WHILE ALSO IMPROVING PUBLIC SAFETY •Drives cost savings through energy usage reduction and improved workflow optimizations •Enables foundation for advanced analytics & better decisions •Redeploys finite electrical resources to future state needs •Lays the foundation for your smart journey with enhanced ROI THE VALUE IS CLEAR IN SMARTER LIGHTING. 2 Gartner.com https://gcom.pdodev.aws.gartner.com/en/newsroom J-10 QUESTIONS | OPEN DISCUSSION Ask us how you can get started today . J-11 COX SMART LIGHTING PILOT METHODOLOGY. •Identify customer needs and pain points, and establish a baseline for energy/cost savings •Establish pilot KPIs (success factors and criteria) •Deliver training & onboarding for city personnel •Manage installation & testing before go -live •Provide ongoing support and collaboration •Monitor KPIs and enable active management •Package results for readout to stakeholders to show KPIs were hit Cox understands the unique challenges municipalities face in smart lighting deployments.We've developed a turnkey process to help cities design and run successful pilots with limited resources,to prove ROI and create a realistic path to full,city-wide deployments. LED Upgrade + Smart Controller Residential/Cobra Head Deployment Decorative Light Deployment J-12 COX IS WELL CONNECTED TO MAKE IT ALL WORK SEAMLESSLY ONE PARTNER WHO CAN BRING IT ALL TOGETHER. •Manage all complex deployments •Bring all the right ecosystem of partners to meet project needs •Guide the customer through the appropriate financial model •Deliver real-time analytics and show you how to use the data •Support you throughout the process with our expertise J-13 ® Smart Communities Cox Business services not available in all areas. Other restrictions apply. ©2021 Cox Communications, Inc. All rights reserved. COX BUSINESS SMART COMMUNITIES DYNAMIC CURBSIDE SOLUTIONS Contact us for a consultation | smartcomms@cox2m.com Manage, monitor, and monetize the curbs in your community. What was once a humble curb space occupied mostly by taxis, buses, and the occasional delivery truck has now become a gathering spot where full-time rideshare drivers, food delivery drivers, and countless other mobile services are all trying to share the same space. Our Dynamic Curbside Solutions provide you with valuable insights into who visits your curb space and allow you to dynamically allocate access to your visitors. Dynamic Curbside Solutions Benefits Monetizes your curb space through payment app integration Allows curb owners to designate payment requirements remotely Enhances rider/driver safety and keeps traffic flowing Personalizes your visitor’s experience Our Dynamic Curbside Solutions can provide you an innovative way to manage your curb space more efficiently while also reclaiming lost parking revenues and exploring new opportunities for ROI. How It Works Our Dynamic Curbside Solutions are powered by interactive digital displays and video-driven analytics. Digital displays provide guidance to drivers while also increasing compliance and changing driver behavior over time. Video analytics empower you to optimize your valuable curb space through real-time occupancy, space utilization and vehicle data served over our smart communities platform. SPACE DESIGNATIONS Parking Zone – paid parking, mobile payment app integration with QR code access. Taxi – space designated for taxi use only. Loading Zone – ride share designation with timed access and no charge. No Parking – designated for customer needs such as street cleaning, etc. FUNCTIONALITY & CAPABILITIES Daytime / Nighttime settings Analytics and live occupancy view via platform Vinyl wrapping offers advertising potential P DAYTIME DISPLAY DESIGNATED TAXIS VIOLATION ALERT K-1 (Rancho Palos Verdes) (02/28/202 2) L-1 If there is one thing all cities face, it’s that a limited municipal staff can’t be everywhere all the time solving the issues of the day for their residents. But what if you could expand your visibility through technology that could serve as a multiplier effect for your staff? Implementing video analytics expands the reach of your staff providing real-time video capture and monitoring of activities within your city along with improved data-driven decision making. It can provide more frequent positive outcomes while also driving down that backlog of service tickets. A MULTIPLIER EFFECT FOR OPERATIONAL EFFICIENCIES WHY CITIES ARE MOVING TO VIDEO ANALYTICS L-2 BENEFITS OF IMPLEMENTING REMOTE MONITORING & DETECTION Enhances law enforcement via remote monitoring, detection, and critical identification of objects or persons of interest. VIDEO ANALYTICS IMPROVE PUBLIC SAFETY & POLICIES Capture rich digital data that improves public safety, drives economic development and improves policy decisions. IMPROVES OVERALL RESPONSE TIMES Video analytics delivers real-time alerts on dangerous situations that reduce overall emergency response times. ANALYSIS OF HISTORICAL TRENDS & EVENTS Capturing of data over time builds historical trends that can be used in predictive decisions on personnel and policies. L-3 Finding the right technology, the right financial model, the right deployment partner and the right custom fit that creates value for your unique project is a huge undertaking. The stability of a partner like Cox gives you the comfort to know we will be here to plan with you long-term. Cox Business is your partner that can bring it all together so you can focus on what is most important for you, running your business. COX BUSINESS MAKES A COMPLEX PROCESS EASY. WHY CHOOSE COX AS YOUR ANALYTICS PARTNER L-4 PHASE 1: ASSESSMENTS & INFRASTRUCTURE UPDATES An assessment is done to determine how video analytics can deliver a total picture, from assisting in optimizing traffic flow and enhancing public safety to improving resident and visitor experiences through mobility improvements. UNDERSTANDING THE PROCESS & PHASES PHASE 2: SITE CONSTRUCTION, INSTALLATION AND FINANCING Cox manages execution of all facets of engineering and installation of smart video components to your infrastructure to ensure successful activations. We also offer creative financing to help cities work within their budgets. PHASE 3: ONBOARDING, TRAINING AND ONGOING SUPPORT Cox will schedule training sessions to onboard users onto the solution platform and take users through a demo. We also assign customer success leads, to serve as your main point of contact to support you through the duration of the program. L-5 WHY VIDEO ANALYTICS IS A SMARTER WAY TO GO We handle all aspects of the build out from permitting and pole attachment agreements to physical construction and any ongoing maintenance. Cox Business can turnkey it all including placement of cameras, bandwidth needs, and any environmental or lighting conditions required to satisfy customer needs. Video analytics provides new insights that allow you to improve traffic flow and public safety while also better understanding consumer behavior leading to new revenues. END -TO -END SOLUTIONS TURNKEY CONSTRUCTION ACTIONABLE INSIGHTS L-6 VIDEO ANALYTICS THAT ARE WELL-CONNECTED Cox Business has been providing fiber-based connectivity solutions for decades to businesses and municipalities. Your smart video devices will be well-connected to ensure that you have access to all the critical data you need to work smarter. A PROVEN NETWORK REAL -TIME DATA ANALYSIS L-7 WHY COX IS THE WISEST CHOICE WHY VIDEO ANALYTICS IS SMART •Video analytics can reduce operating and maintenance costs by providing real-time information •Provides critical data to improving traffic flow while also improving personal security for your residents •Enables a foundation for advanced analytics & better decision-making •Creates new opportunities for ROI THE PAYOFF IS IN ENHANCED ROI & PUBLIC SAFETY •Manage all complex deployments •Bring all the right ecosystem of partners to meet project needs •Guide the customer through the appropriate financial model •Deliver real-time analytics and show you how to use the data •Support you throughout the process with our expertise L-8 QUESTIONS | OPEN DISCUSSION Ask us how you can get started today . L-9