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CIT'v OF SAN BERNARDI~ -
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REQU~T FOR COUNCIL AC~ON
From: RUSS LACKNER Subject: Section 14.08.074 of Municipal Code
Chairman, Cabletelevision Commission
Dept:
Date:
December 19, 1985
Synopsis of Previous Council action:
None
Recommended motion:
That the enclosed ordinance be laid over for final reading and adoption.
NOTE: The CATV Commission respectfully requests a 2:00 p.m.reading in order to
attend and answer questions.
Ray Schweitzer
Contact person:
Supporting data attached:
yes
Ward:
1-7
FUNDING REOUIREMENTS:
Amount:
Source:
Finance:
Council Notes:
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'CIT'i OF SAN BERNARDI~O - REQUST FOR COUNCIL AC~ON
STAFF REPORT
Unauthorized cable viewing is costing this City approximately
$190,000 dollars per year.
In October of 1984, Chambers and Group W Cable used radio,
TV, newspaper and direct mail to inform the public that there
was a state law against illegal connections and they intended
to prosecute. The cable operator~ allowed unauthorized
viewers 30 days to become legal subscribers with no questions
asked.
Chambers Cable followed the amnesty program with a systematic
audit of 15,000 homes. The audit uncovered 307 homes still
recelvlng basic service without paying, 934 homes receiving
Showtime, and 946 homeE' receiving the movie channel without
paying. This illegal non-paying service represents a loss of
$343,987 dollars to Chambers Cable. The city loses $13,759
dollars in franchise fees and $27,519 dollars in service
users tax. Although Group W did not do an audit, it would be
very optimistic to assume their percentage of illegals would
be as low as Chambers cable. Using the same percentage of
illegals to homes passed as Chambers did, Group W could be
losing $1,242,949 dollars per year. At a 4% franchise fee
and 8% service users tax, this amounts to $149,153 dollars
per year. A total of $190,431 is in lost revenue to the City
of San Bernardino.
The large, uncoverable expenses inclJued by the Police
Department to investigate each report is more than the
maximum penalty allowed by state law. It takes an average of
two months in the field, on the phone, and doing research by
the police before a report is submitted to the District
Attorney's office. Recent cooperation by the police resulted
in a few cases reaching the D. A. No action has been taken
and the oldest report is over three months old.
passage of the Federal Communications policy Act of 1984
strengthened the legal position and provides national theft
legislation. Section 633 gives serious criminal penalties of
fines from $1,000 to $50,000 dollars with jail terms from 6
~onths to two years. This federal law is stronger in crimi-
nal penalties than the State Theft of Service Law 593d which
is a misdemeanor punishable by a fine from $200 to $20,000
dollars and in'pr isonment from 30 days to one year.
An infraction ordinance adopted by the City is a way to
recover lost revenues without a great deal of expense. This
ordinance would be strong enough to deter theft by individ-
uals but not so hard as to discourage enforcement by those
who think stealing the service is not a serious crime. The
ordinance could easily be enforced by the Police through
citations. Enforcement of this ordinance would make the
public aware that they would be punished for stealing a
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service that creates an expense and deprives the City of
revenue.
Money lost from the non-paying viewers restricts the cable
operator in developing new services and increased the cost of
existing service to honest, paying subscribers. In most
cases, the illegal connection damages the cable and results
in poor or: no I ec('ption to their neighbors. If the City
allows this theft to continue, the cost of providing existing
service could escalate beyond a subscribers ability to pay.
The Community Cabletelevision Commission recommends the
passage of this ordinance unanimously.
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RAYMOND SCHWEITZER
Deputy ty Administrator
RDS/md
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ORDINANCE NO.
ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING SECTION
14.08.074 TO THE SAN BERNARDINO MUNICIPAL CODE TO MAKE THE
FAILURE TO REMOVE AN UNAUTHORIZED CONNECTION OR ATTACHMENT TO A
DULY LICENSED CABLE TELEVISION SYSTEM AFTER WRITTEN NOTICE AN
INFRACTION.
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
7 SECTION 1. Section 14.08.075 is added to the San Bernardino
8 Municipal Code to read:
9 "14.08.075 Unauthorized connection or attachment to cable
10 television system.
11 A. It is unlawful for an owner or occupant of any premises
12 to fail to remove or cause to be removed, any unauthorized
13 connection, whether physically, electrically, or inductively, or
14 attachment of any unauthorized device or devices to any cable,
15 wire, or other component of a franchised or otherwise duly
16 licensed cable television system servicing such premises after
17 service of written notice of such unauthorized connection or
18 attachment upon such owner or occupant.
19 B. Such written notice shall be served by mail or in person
20 by the affected franchised and duly licensed cable television
21 system upon the owner or occupant. It shall require the owner
22 or occupant to remove or cause the removal of any unauthorized
23 connection or attachment to a cable television system servicing
24 such premises within ten (10 ) days from the date of service of
25 such notice. The notice shall be addressed to the owner or
26 occupant of the premises where the unauthorized connection or
27 attachment to the cable television system exists. The notice
28 shall specify that a failure to comply with the notice is an
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1 infraction. Service of the notice by certified mail shall be
2 deemed complete upon deposit in a public receptacle for United
3 States mail."
4 I HEREBY CERTIFY that the foregoing ordinance was duly
5 adopted by the Mayor and Common Council of the City of San
6 Bernardino at a meeting thereof,
7 held on the day of , 1985, by the
8 following vote, to wit:
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11 NAYS:
AYES:
Council Members
12 ABSENT:
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City Clerk
The foregoing ordinance is hereby approved this
day of
, 1985.
Mayor of the City of San Bernardino
19 Approved as to form:
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21 City At orney
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