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HomeMy WebLinkAbout31-Cable TV - CIT'v OF SAN BERNARDI~ - ~'..-... 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: ~qJ - '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 ~ c o o -..) 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. ~~c RAYMOND SCHWEITZER Deputy ty Administrator RDS/md c - c o o 1 2 3 4 5 6 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 c o o .:J 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: 9 10 11 NAYS: AYES: Council Members 12 ABSENT: 13 14 15 16 17 18 City Clerk The foregoing ordinance is hereby approved this day of , 1985. Mayor of the City of San Bernardino 19 Approved as to form: /~~#'J ~~ 21 City At orney 20 22 23 24 25 26 27 28