HomeMy WebLinkAbout1990-01-09 - AGENDA REPORTS - FRANCHISE ORD (2)0
AGENDA REPORT
UNFINISHED BUSINESS
DATE: January 9, 1989
SUBJECT: Franchise Ordinance 89-28
DEPARTMENT: City Manager
BACKGROUND
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City Manager Approval
Item to be presented by:
Ken Pulskam
This item was on the. Agenda of December 12, 1989, to introduce the franchise
section (Title 4) of the Santa Clarita Municipal Code. It is now presented for
second reading and adoption. This ordinance does not affect franchises granted
by. the City of Santa Clarita as indeterminate franchises or other franchises
until their expiration. This document has been reviewed by the appropriate
members of City staff. All comments from the staff members involved have been
incorporated into this version.
Title 4 is composed of Division 1. or basic franchise and Division 2 which
addresses cable television systems. Throughout Title 4, the responsibility for
administration of the ordinance is divided among the Director of Public Works
and the Director of Finance. The separation was initiated to ensure that both
aspects of the ordinance received appropriate attention.
As with the County of Los Angeles Franchise Code, much of the City Ordinance is
governed by the Public Utilities Code. The intent of the Basic Franchise
Ordinance was to simplify the regulation of franchises yet not lose any of the
authority to franchise. While the Basic Ordinance is the foundation for
establishing a franchise, specific and, if necessary, more stringent language
may be incorporated into individual franchise agreements.
Major deviations from .the Los Angeles County Ordinance include the elimination
of sections regarding airports, electrical trains, electric motor coaches,
street railways and specific provisions for oil franchises. One significant
addition of Section 4.04.370 provides for future undergrounding of facilities to
the extent possible.
Division 2, cable television franchise, has also been simplified, yet is
designed to increase customer service. As with any cable television franchise,
various provisions are governed by the Federal Cable Act and the Federal
Communications Commission. Section 4.20.120 onward provides for expediting
responses to customer complaints, strict reporting requirements and designation
of fees and credits as line items on subscriber statements. In addition,
section 4.20.071 specifically addresses City use of cable franchise equipment
and facilities to provide public, educational and governmental programming.
RECOMMENDATION
That the City Council adopt Ordinance 89-28.
ATTACHMENT Continued 1®: � � 170f�►� �ati�� Ite111:
Ordinance 89-28
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ORDINANCE NO.
-� AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA,
AMENDING THE MUNICIPAL CODE TO ADD TITLE
4 RELATING TO FRANCHISES.
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. The Municipal Code for the City of
Santa Clarita is amended to add Title 4, Franchises, to read
as follows:
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_TITLE 4
FRANCHISES
Division 1
BASIC FRANCHISES
Chapter 4.01
SCOPE OF DIVISION
4.01.010 Applicability of Statutory Law.
Nothing in this.Division shall modify or supersede any
provision of the general law for the state of California
regarding the sale of franchises by the City, including
Division 3 of the Public Utilities Code.
4.01.020 Basic Franchises. All franchises
awarded by the City shall be awarded pursuant to this
Division l unless the award of franchise is explicitly
provided under some other provision of law.
Chapter 4.02
DEFINITIONS
4.02.005 Director. "Director" means the Public
Works Director of the City or assignee.
4.02.010 Facilities. "Facilities" meansall
property of .the grantee, including service connections.with
the grantee's facilities, whether installed by the grantee
or not, erected, -constructed, laid, operated or maintained
in, upon,' over, under, along or across any highway pursuant
to any right or privilege granted by the.franchise.
4.02.020 Franchise payment period. "Franchise
payment period" is:
A. If the franchise grants to a public utility or
to a mutual water company a right not theretofore in
existence, the fifth year after the effective date of the
ordinance granting the franchise; or, at the option of the
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grantee any shorter period of -time, and each year there-
after, during the life of the franchise..
B. In all other cases, including all"franchises
granted to persons who are -neither public utilities nor
mutual water companies, the first year after the effective
date of the ordinance granting the franchise; or, at the
option of the grantee, any shorter period of'time
immediately following the effective date of the said ordi-
nance, and each year thereafter, during the life of the
franchise.
4.02.030 Franchise report period. "Franchise
report period" in all cases means the first year after the
effective date of.the ordinance granting the franchise; or,
at the option of the grantee, any shorter period of time
immediately following the effective date of the said
ordinance, and each year thereafter, during the life of the
franchise.
4.02.040 Grantee. "Grantee" means the person to
whom the franchise is granted, and any person to whom it
lawfully may be assigned.
4.02.045 Highway. "Highway" means that term as
defined in the Streets and Highways Code for the State of
California and over which the. City has jurisdiction to grant
franchises.
4.02.050 Main. "Main" means any -pipeline,
conduit, direct buried line or anv distribution facility
laid along or approximately parallel with and in any highway
for the transmission or distribution of electricity or any
substance or commodity.
4.02.070 Revenue Collector. "Revenue Collector"
means the Director of Finance of the City, or assignee.
4.02.080 Service connection. "Service connec-
tion" means the wire, pipes or conduits connecting the
building or place where the service or commodity suppliedby
the grantee is used or delivered, or is made available for
use or delivery, with the supply line or supply main in the
highway or with s'ucn supply 1ine.or supply main on private
property.
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Chapter 4.04
GENERAL REGULATIONS AND CONDITIONS
04.04.010 Title for citation.. The franchise.
ordinance codified in this Division l shall be known.as and
may be cited as ".the basic franchise ordinance."
4.04.020 Rules, regulations, terms and
conditions applicable. Every franchise granted by the City
for the use of City highways for any purpose, except as
otherwise provided in the ordinance granting such franchise,
shall be granted upon and be subject to such of the
following rules, regulations, restrictions, terms and
conditions as are incorporated therein by reference, in
addition to the rules, regulations, restrictions, terms and
conditions set forth in the ordinance.granting each such
franchise.
.4.04.030 Franchise grant not exclusive. The
granting of a franchise or any of the terms or conditions
therein shall not be construed to prevent the City from
granting any identical or similar franchise to any person
other than the grantee.
. 4.04.050 Application. The application for a
franchise shall be filed with the Director.
4.04.060 Term of franchise. Unless the
ordinance granting the franchise provides otherwise, the
term of the franchise shall be 25 years.
4.04.070 Acceptance of franchise. The grantee,
shall within 60 days after the passage of the ordinance
granting the franchise, file with the City clerk a written
acceptance of the terms and conditions of said ordinance,
including such terms and conditions of this Division.
4.04.080 Surety bond required when Amount and
conditions. The notice of sale may require that the grantee
shall file, within the time specified therein, and at all
times during the life of the franchise, keep on file with
the Director a corporate surety bond running to the City in
the sum of $1,000.00, or such other sum as. may be
specifically provided in the said notice of sale with surety
to be approved by the Director, conditioned that the grantee
shall well and truly observe, fulfill and perform each term
and condition of the franchise and that in case of any
breach of condition of the bond,. the whole amount of the
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penal sum thetein.named shall be deemed to be liquidated
damages, and shall be recoverable from the principal and
sureties.uron the bond. If the bond is not so .filed within
the time aforesaid, the award of.the franchise may 6e set
aside at any time prior to the filing thereof, and any money
paid therefor shall be forfeited; and if an ordinance has
been enacted granting the franchise, the Council m*ay.repeal
such ordinance. In the event that said bond, after it has
been so filed, shall at any time during the life of the
franchise become insufficient, the grantee, by accepting the
terms and conditions thereof, agrees to renew said bond with
sureties to be approved by the Director within 10 days after
written notice to do so from the Director.
4.04.100 Notice of sale -- Deposit to cover
costs. Prior to publication of the notice of sale, the
applicant for a franchise shall deposit with the City Clerk
a sum which the Clerk estimates to be ample to cover.the
cost of such publication.
4.04.110 Notice of sale -- Costs -- Disrosition
of extra funds. The cost of publication of the notice of
sale of a franchise shall be paid from the money deposited
by the appiicant. If the cost of publication is less than
the amount deposited the Clerk shall:
A., Refund the difference to the arriicant if the
franchise is not awarded to the applicant;
B. Apply the difference to other moneys due to
the City from the applicant.under the terms of the franchise
if the franchise is awarded to the applicant.
4.04.120 Mar of facilities installed in
highways -- Annual filing required.
A. The grantee, except the grantee of a franchise
for a railroad track, shall file with the Director, within
90 days after the effective date of the ordinance granting
the franchise, and each year thereafter within 90 days after.
the anniversary of the effective date of the ordinance, a
map or set of maps, each drawn to a scale not.smaller than
400 feet to one inch, showing in detail the exact.location
and size of all facilities, except service connections used
by or under the control of the grantee, installed beneath
the surface of the highways described in and maintained
pursuant to the authority of the ordinance granting the
franchise.
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B. The map or set of maps filed pursuant to the
provisions of this section shall show in detail the location
of such facilities, excluding service connections, which
shall have been laid, constructed or abandoned subsequent to
the filing of the last preceding map or set of maps. Each
map or set of maps shall be accompanied by an affidavit
endorsed thereon.and subscribedand sworn to by the grantee,
verifying the correctness thereof.,
4.04.130 Public utility franchises -- Value
agreement. The.grantee of any franchise awarded to a public
utility, by accepting the terms and conditions thereof,
stipulates and agrees that in any proceeding for.the purpose
of regulating the rates of the grantee., no greater value
shall be placed upon the franchise than the actual cash paid
therefor by the grantee, including.the cost of advertising
paid by the.grantee.
4.04.150 Pavments to City -- Service connections
excluded when. Whenever the length of anv wire, pipe or
conduit is a factor in calculating any payment due. under any
franchise granted by the City, all service connections shall
be excluded in determining such length.
4.04.160 Payments to City -- Publishing and
advertising costs. The grantee shall pay to the City within
30 days after receiving a statement therefor, all
advertising -and publishing costs, including it -he cost of
publishing the ordinance, incurred in connection with the
granting of the franchise, minus the amount, if any, which
the grantee has deposited. The grantee shall not receive
credit for any deposit made by any other person.
4.04.190 Report of annual aross receipts --
Filing time.
A. The grantee of any franchise awarded to a
public utility or a mutual water company, except a franchise
for a railroad track, shall file with the Revenue Collector
for each franchise payment period, within 90 days after such.
period, two copies of a report verified by the responsible
officer of the.grantee (except where the grantee is an
individual, in which case the report shall be. verified by
the oath of the grantee) showing the totai gross receipts of
the grantee for the franchise payment period, received or
accrued in connection with the furnishing of the commodity.
or. service arising.from the use or operation of the
franchise, together with such additional data as is
necessary in the discretion of the Revenue.Collector to
calculate or verify the calculation of the annual payment
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(or the pro rata thereof for the first period if the first.
period is. less than one year) and which payment shall be
paid.concurrently with the filing of the statement.
B. In the event the amount paid is incorrect in
the judgment of the Revenue Collector, it may order the
payment of such additional sum as it may find due.
4.04.200 Report of annual gross receipts---
Interest charged on late payments. Should any annual report
and accompanving payment be not made within the 90 -day
period therein mentioned, the grantee shall further pay
interest on the amount due under that section at the rate of
ten (10) percent per month from the last day of the
franchise payment period for which such payment was due.
4.04.210 Right to examine records and
facilities. At all reasonable times, the grantee shall
permit any duly authorized representative of the City to
examine all property.o£ the grantee erected,. constructed,
laid, operated or maintained pursuant to the franchise,
together with any appurtenant property of the grantee, and
to examine and copy any and all books, accounts, papers,
mans and other records kept or maintained by the grantee or
under its control regarding the operations, affairs,
transactions, property or financial condition of the
grantee.
4.04.220 Liability for damages. The grantee
shall indemnify, defend and 'hold the City, its officers,
agents, and employees harmless from and against any and all
loss, damages, liability, claims, suits, costs and expenses,
including reasonable attorney's fees, defense costs and
legal fees, regardless of the merit or outcome of any such
claim or suit, claimed, arising from or connected with the
grant, exercise or enjoyment of the franchise, the grantee's
franchise operations, and the use, operation or maintenance
.of the facilities erected, constructed, laid, operated or
maintained under the franchise.
4.04.230 Sale, lease or transfer of franchise --
Terms and conditions.
A. The grantee shall not sell, -transfer, assign
or lease the franchise, or any part thereof, except with the
consent of the City Council. Such sale, transfer,
assignment or lease shall be made only by filing with the
City Council a copy of the duly executed instrument of such
sale, transfer, assignment or lease, and a written request
for the consent of the Council to such sale, transfer,
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assignment or lease. If such duly executed instrument and
such written request is not filed with the City Council
before the expiration of 60 days after the effective date of
such sale,,transfer, assignmentor lease then, upon the .
expiration of said 60 days, the franchise shall be subject
to forfeiture and the City Council may, without notice, by
ordinance, repeal the franchise.
B -As a condition to the granting of consent to
such sale, transfer, assignment or lease, the Council may*
impose such additional terms and conditions upon the
franchise and upon the grantee or assignee which the City
Council may deem to be in the public interest. Such
additional terms and conditions shall be expressed by
ordinance.
C. Nothing herein contained shall be construed to
grant to the grantee the right to sell, transfer,_assign or
lease the franchise, or any part thereof except in the
manner aforesaid. This section applies to any assignment,
whether by operation of law, by voluntary act of the grantee
or,otherwise. No such consent shall be required to any
transfer of the franchise in trust or by way of mortgage or
hypothecation.with all or a part of grantee's other property
for the purpose of securing any indebtedness of grantee. A
merger will not be deemed a sale, transfer, assignment or
lease of the franchise under this section.
4.04.240 Conditions of franchise Qrant --
Suspension or forfeiture grounds and procedure. The
franchise is granted and shall be held and enjoyed u)on-each
and every condition contained in the ordinance granting the
franchise, including such conditions incorporated by
reference, and shall be strictly.construed against the
grantee. Any neglect, failure or refusal to comply with any
of the conditions of the franchise shall constitute grounds
forthe suspension or forfeiture thereof. The City Council,
orior to any suspension or forfeiture of the franchise,
shall give to the grantee not less than 30 days' notice in
writing of any default thereunder. If the grantee does not
.within the noticed period begin the work of compliance, or
after such beginning does not prosecute the work with due
diligence to completion, the City Council may hold a
hearing, at which the grantee shall have the right to appear
and be heard, and thereupon the City Council may determine
whether such conditions are material and essential to the
franchise and whether the grantee is in default and may.
declare the franchise suspended or forfeited. Notice of the
hearing shall be given to the grantee not less than ten days
before the hearing.
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.4.04.260 Extra communication circuits for Citv
use. The City council, in granting the franchise, does
expressly reserve at no cost to the City the right and
privilege_of installing and maintaining communication
circuits upon any poles or in any communication conduit
erected or placed by virtue of the franchise. The City may
use the circuits for maintaining a communication, control
and fire -alarm service in the dispatch of City business;. and
all such poles erected or conduits laid under the authority
of the franchise shall be erected and laid in such a manner
as to leave sufficient space for the proper accommodation of
the four circuits to be installed and maintained by the.
City.
4.04.270 Franchise area -- All facilities
subject to franchise conditions. All facilities erected,
constructed, laid, operated or maintained by the grantee in
highways, including services connected with the grantee's
facilities, whether installed by the grantee or not, in the
area described in and by virtue of the authority provided by
the ordinance granting the franchise, prior to the effective
date of said ordinance, except those maintained under prior
right other than franchise, shall become subject to all the
terms and conditions of such ordinance. upon such effective
date.
4.04.280 Attachment of facilities to bridges or
other City structures. A franch.ise.aoes not give the
grantee the right to attach any pipe, conduit or other
facility to any bridge or other City structure unless
specifically provided in the Ordinance granting the
franchise.
4.04.290 Authoritv to accuire grantee's works,
property and rights. The City shall have the right at any
time during the term of the franchise to acquire the works,
property and.rights of the grantee (if such grantee is not a
public utility underthe jurisdiction of the Public
Utilities Commission), or any portion thereof constructed,
acquired or operated under the franchise upon making
reasonable compensation.
4.04.320 Construction, operation and maintenance
regulations. All facilities erected, constructed, laid,
operated or maintained under the provisions of the franchise
shall be erected, constructed, laid, operated or maintained
in accordance with. and conforming to all the ordinances,
codes, rules and regulations now or hereafter adopted or
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prescribed by the.City Council, and shall be of new, first
class and standard material and subject to the approval of
any duly authorized representative of the City..
4.04.340 Excavation permit -- Prerequisite to
commencement of work -- Exceptions. Where.the provisions of
the highway permit ordinance require the issuance of an
excavation permit, the grantee shall not commence any
excavation work under the franchise until it shall have
obtained such permit, except in cases of emergency affecting
public health, safety or welfare, or the preservation of
life or property, in which case the grantee shall apply for
such permit not later than the next business day.
4.04.350 Excavation permit -- For pipelines
carrving flammable substances -- Issuance conditions.
Prior to the issuance of any excavation.permit for
the construction or installation of any pipeline for the
transmission of flammable liquids or gases, which -are
heavier than air, approval shall be obtained from the Fire
Department. Such approval shah be based on the deter-
mination that no undue fire hazard will be created to life
or property in the areas through which the proposed pipeline
will be located.
4.04.360 Eic_hwav facilities -- Construction and
repair orocedures.. The work of erecting, constructing,
laying, replacing, repairing or removing facilities in,
upon, over, under, along or across any highway shall be
conducted with as little hindrance as practicable to the use
of the highway for purpose of travel; and as soon as the
erecting, constructing, laying, replacing, repairing or
removing of any of said facilities is completed, ail
portions of the highway which have been excavated or
otherwise injured hereby shall be placed in as good
condition as the same was before erecting, constructing,
laying, replacing, repairing or, removing of the facilities,
to the satisfaction of the Director; and the grantee shall
be responsible to the Citv and shall save the City, its -
officers, emulovees and agents, free and harmless from all
damages or liability arising from any damage or injury
suffered by any person by reason of any excavation or
obstruction being improperly guarded during said work, or
the failure cf the grantee to properly perform, maintain or
protect any phase of the work.
4.04.370 Mains and other facilities -- Depth of
installation. Unless special circumstances make it
impossible or not feasible and the Director so-finds:-
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A. All mains laid under the franchise, except
electrical. conduits, shall be laid and maintained not less
than 30 inches below the gutter grade, or 38 inches below
grade if no gutter, unless the grantee files a written
statement that no service connection will be made to any
portion of the upper half of such main, in which case the
main may be not less than 24 inches below the gutter grade
or 32 inches below grade if no gutter.
B. All other facilities, including electrical
conduits and service connections laid under the franchise,
shall be laid and maintained not less than 24 inches below
the gutter grade.
4.04.380 Improvement of highway_ surface --
Notice to grantee -- Time for installation of facilities.
A. The Citv reserves the right to improve the
surface or subgrade of any highway and construct or
reconstruct any other facilities over which the franchise is
granted,.upon written notice that the grantor intends to
improve any such highway within the territory covered by the
franchise, and requests that the grantee erect, install, lay
or construct beneath the surface of the highway the
facilities which at that time are known or believed by the
grantee to be necessary or convenient to serve its needs and
those of the public in the foreseeable future; the grantee
shall commence such work on or before the date specified in
such written notice and request, which date shall be not
less than 30 days from receipt of such written notice and
request, and diligently prosecute such work to completion.
B. After the completion of such highway
imD_rovements by the grantor, the right of the grantee to day
or construct facilities in, under or through the improved
surface of the highway or portion of the highway under the
franchise shall be subject to such additional terms and
conditions as the Director may impose to minimize any damage
to such improved surface.
4.04.390 Maintenance and protection of-
facili-ties following other improvements.
A. If the City constructs or maintains any storm
drain, sewer structure or other facility or improvement.
under or across any facility of the grantee, the grantee
shall provide, at no expense to the City, such support.as
shall be reasonably required to.support, maintain and
protect grantee's facility.
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B. This.section shall not relieve any contractor
of liability arising from violation•of any law, ordinance or
regulation, or from -negligence which may proximately cause
injuries to any of grantee's facilities.
4.04.400 Defective facilities in hiahways --
Renair requirements and costs. If any portion of any
highway shall be damaged by reason of defective facilities
laid or constructed under the franchise;'the grantee shall, -
at its own expense, repair any such defect and out such
highway in as good condition as it was before such damage.
was incurred, to the satisfaction of the Director. If the
grantee, within 10 days after receipt of written notice from
the Director instructing it to repair such damage, fails to
commence to comply with such .instructions, or, thereafter,
fails diligently to prosecute such work to comoletion, then
the Director immediately may do whatever work is necessary
to carry out the repair at the cost and expense of the
grantee, which cost and expense, by the acceptance of the
franchise, the grantee agrees to pay upon demand. if such
damage constitutes an immediate danger to public health or
safety requiring the immediate repair thereof, the Director,
without notice, may repair such damage and the grantee
agrees to pay the reasonable costs thereof upon demand.
4.04.410 City's right 'Co chance hiQhway. The
Citv reserves the right to chance the grade, to chance the
width, or to alter or change the location of any highway
over which the franchise is granted.
4.04.420 Relocation of facilities. if any of the
facilities erected, constructed, installed or maintained.by
the grantee pursuant to the franchise on, along, upon, over,
in, under or across any highway are located in a manner
which prevents or interferes with the change of grade,
traffic needs, operation, maintenance, improvement, repair,
construction, reconstruction, widening, alteration.or
relocation of the highway, the grantee shall relocate
permanently or temporarily any such facility at no expense
to the City upon receipt of a written request from the
Director to do to, and shall commence such work on or before
the date specified in such written request, which date shall
be not less than 30 days from .receipt of such written
request, and thereafter diligently prosecute such work to
completion.
4.04.440 Relocation of facilities --
Conditions. The City reserves the right to lay, construct,
repair, alter, relocate and maintain subsurface or other
facilities or improvements of any type or description in a
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governmental but not proprietary capacity within the
highways over which the franchise is granted. If the City
finds that the location or relocation of such facilities or
improvements conflicts with the facilities laid, constructed
or maintained under the franchise, whether such facilities
were -.laid before or after the facilities of the City were
laid, the grantee of such franchise skull, at no expense to
the City, on or before the date specified in a written
request from the Director, which date shall be not less than
30 days after the receipt of such notice and request to do
so, commence work to change the location, either permanentiv
or temporarily, of ail facilities so conflicting with such
improvements to a permanent or temporary location in said
highways to be approved by.the Director, and thereafter
diligently prosecute such work to completion.
4.04.450 Relocation of facilities -- Costs.
A. If the grantee, after reasonable notice, fails
or refuses to relocate permanently or temporarily its
facilities located in, on, upon, along, under, over, across
or above any highway, or to pave, surface, grade, repave,
resurface or regrade as required pursuant to any provision
of the franchise, the City may cause the work to be done,
and shall keep an itemized account of the entire cost, and
the grantee_snall hold harmless the City,.its officers,
emplovees and agents from anv liability which may arise or
be claimed to arise from the moving, cutting or alteration .
of any of the grantee's facilities, or the turning on or off
of water, oil or other liquid, gas or electricity.
B. The grantee agrees to, and shall, reimburse
the City for such cost within 30 days after presentation to
the said grantee of an itemized account.
4.04.470 Abandoning facilities -- Terms and
cor.citions. The Director, upon any terms and conditions as
the Director may see fit to impose, may give the grantee of
the franchise permission to abandon, without removing, anv
facility laid, erected, constructed, operated or maintained
under the franchise. Unless such permission is granted, the
grantee shall remove all abandoned facilities within 90 days
after such abandonment, and shall restore the highway to its
former state at the time such facilities were removed, as
near as aav be, so as not tO iTipair its usefulness.
4.04.480 Uhdergroundina of facilities., To the
extent possible, the City shall recuire that all facilities
which may be installed underground be so installed and in
accordance with the provisions of this Title.
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Chapter 4.06
COMPENSATION
4.06.010 Rates. As consideration for the
franchise granted, the franchisee shall pay to the City in
lawful money of.the.United States the following:
A. In the case of an initial grant of franchise,
or on franchises which extend, renew or continue previously
granted franchises, the franchisee shall pay to the City a
granting fee of -not less than $5,000.00 within 30 days after
the council adopts the ordinance granting the franchise..
Such amount shall be established by the Revenue Collector;
5. Provided, however, that if the oioe or
pipeline to be laid or constructed pursuant to the franchise
is one-fourth mile or less in length, or the franchise,
extends,.renews or continues a previously granted franchise
to lav or construct a pipe or pipeline one-fourth mile or
less in length, the franchisee shall pay to the City a
granting fee of not less than S500.00 within 30 days after
the council adopts the ordinance granting the franchise.
Such amount shall be established by the Revenue Collector;
and
C. The franchisee of any franchise awarded to any
others, including. a public utility or mutual water company
granted or exercising a franchise for a purpose not
involving the furnishing of any service to the public or any
portion thereof, as further consideration for the franchise
hereby granted, including the extension, renewal or
continuation of a previously granted franchise, shall pay to
the City in lawful money of the United States, during.the
li.fe of the franchise for each and every year., including the
year of .granting Zhe.francnise, according to the "franchise
payment period", a "base annual fee":
D. Initial Construction Charges and Other Fees.
In addition to the foregoing annual payments, the franchisee
shall:
1. Pay City. within 60 days. after the end
of each.calendar year, during the life of the franchise, an
initial construction charge calculated at a rate of $100.00
per mile or fraction thereof for all new mains laid during
the preceding year;-
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2. Pay City during the life of the fran-
chise, an annual fee.of $50.00 per pole -mile or portion
thereof, and $50.00 per mile or portion thereof ofunder-
ground conduit for telephone or telegraph lines maintained
under the franchise. Said fee shall be due within 60 days.
after the end of each calendar year.
.4.06.020 Proration of payments. In the event of
abandonment of facilities with the approval of. the City as
elsewhere in the ordinance provided, or in .the event of
removal of such.facilities by the franchisee, the payments.
otherwise due the City for occupancy of the roads or.
highways by such facilities shall be prorated for the
calendar year in which such removal or abandonment occurs as
of the end of the calendar month in which removed or
abandoned.
4.06.030 Prompt oavment -- Delinauencv charge.
In the event franchisee falls to make the payments for the
franchise or the payments on or before the dates due,
franchisee shall pay as additional consideration the
following amount: A sum of money equal to 10 percent per
month commencing from the due date of the total amount due.
4.06.040 RecordkeeoinQ recuirement.s. Franchisee
shall keep and preserve, for a period of five years,
subsequent to the date of the most recent franchise fee
determination as ascertained by an audit made by rhe City or
on its behalf, all records necessary to determine r -he amount
of such franchise fees or other payments due. Franchisee,
upon demand by City, shall make such records available for
inspection within the City.
Chapter 4.08
CONSTRUCTION .
4.08.020 New or replacement installations. New
installations or replacements of pipelines and appurtenances
and all other facilities necessary for the installation, .
operation, maintenance, and safety of pipelines and conduits
shall be laid and maintained only pursuant to permit issued
by the public works department. All such installations or
replacements shall be reviewed by the Director as to the
most desirable location in the roads or highways of the City
and the Director's decision shall be final and binding on
the franchisee.
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4.08.030 Highway work -- Conditions and
requirements. The work of constructing, laying, replacing,
maintaining, repairing, abandoning or removing all pipelines
and appurtenances authorized under the provisions of this
Division 1 in, over, under, along or across any highway
shall be done to the satisfaction of the Director at the
expense of the franchisee and in accordance with the terms
and conditions of this Code.
4.08.040 Annual completion statement. The
franchisee shall submit an annual summary to the City
identifying the permit or permits issued during the
preceding calendar year, identifying the total length of
pipeline, conduit or other facility, the construction of
which was authorized under such permit or permits, the
nominal internal diameter or diagonal of the pipeline or
conduit, and the total length of pipeline, conduit or other
facility.
4.08.050 Emergency equipment and personnel. At
all times during the term of this franchise, the franchisee
shall maintain or arrange for, on a 24 -hour -a -day basis
adequate emergency equipment and a properly trained
emergency -crew within.a reasonable distance from any
facilities installed or maintained pursuant hereto for the
purpose of shutting off the pressure and the flow of
contents Iof such facilities in the event of an emergency
resulting from an earthquake, act of war, civil disturbance,
fire, flood, or any other cause or nature whatsoever.
4.08.070 Removal or abandonment of facilities --
Procedures.
A. At the expiration, revocation or termination
of this franchise or of the permanent discontinuance of the
use or all or a portion of its facilities, the franchisee
shall, within 30 days thereafter, make written application
to the Director for authority either:
1. To abandon all or a portion of such
IC in place; or
2. To remove all or a portion of such
facilities.
Such application shall describe the facilities
desired to be abandoned, their location, and shall describe
with reasonable accuracy the physical condition of such
facilities. The Director shall determine whether any
abandonment or removal which is thereby proposed may be
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.TBM/TITLE4 �.
effected without detriment to the public interest and under
what conditions such proposed abandonment or removal may be
effected.
B. Within 30 days of notice of the Director's
determination, the franchisee shall apply.for a permit from
the City to abandon or remove the facility.
C. The franchisee shall, within 60 days after
obtaining such permit, commence and diligently prosecute to
completion the work authorized by the permit.
4.08.080 Removal or abandonment of facilities --
Failure to comply -- Remedies.
A. If any facilities to be abandoned "Tri place"
subject to prescribed conditions shall not be abandoned in
accordance with all such conditions, the Director may make
additional appropriate orders, including an order that the
franchisee shall remove any or all such facilities. The
franchisee shall comply with such additional orders.
B. In the event that the franchisee shall tail to
comely with the. terms and conditions of abandonment or
removal as may be required by this Division, a.nd within such
time as may be prescribed by the Director, --'-en the City may
remove or cause to be removed such facilities at t:
".e
franchisee's expense. The franchisee shall oav to the City
the cost of such work plus the current rate of overhead
being charged by the City for reimbursable wore.
C. If, at the expiration, revocation or
termination of this franchise, or of the permanent
discontinuance of the use of ail or a portion of its
facilities, the franchisee shall within 30 days thereafter,
fail or refuse to make written application for the above-
mentioned authority, the Director shall ;Hake the determina-
tion as to whether the facilities shall be abandoned in
place or removed.. The Director shall then notify the
franchisee of the determination. The franchisee shall
thereafter comply with the provisions of subsections B and C
of this Section 4.08.070.
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•
Division 2
CABLE TELEVISION SYSTEM FRANCHISES
Chapter 4.10
DEFINITIONS
4.10.010 Definitions generally -- Interpretation
of language. For the purpose of this Division 2, the
following terms, phrases, words and their derivations shall
have the meaning given in this chapter.
4.10.020 Advertisina'receiDts. "Advertising
receipts" means any and ail income, compensation, fees and
other consideration received directly or indirectly by
franchisee, derived from any form of advertising, relating
directly or indirectly to franchisee's franchise activities
and operations.
4.10.030 Basic service. "Basic service" means
the simultaneous delivery by franchisee to television
receivers (or any other suitable type of audio -video
communication receivers) of
A. All signals of over -the -air television
broadcasters authorized by the.FCC to be carried by a cable
television system as defined by the 7CC;
B. Local government access channels;
C. Education access channels;
D. Public access channels;
E. Lease channels; and
F. Additional service at the option of the
company; however, pav or subscription television as defined
by the FCC shall not be considered part of the basic
service.
4.10.040 Basic subscriber receipts. "Basic
subscriber receipts" means any and all income, compensation,
fees and other consideration received directly or indirectly
by the Franchisee from subscribers in payment For the basic
service of the cable television system.
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4.10.060. Cable television system or system.
A. "Cable television system" or "system" means a
system of.antennas, cables, wires, lines, towers,
waveguides, microwaves, microwave, laser beam, fiber optics,
master antenna system, multiple,distribution system,
satellite, or any other conductors, converter, equipment or
facilities desired and constructed for the purpose of
producing receiving amplifying and distributing audio,
video, voice, data signals, digital signals, fiber optic
signals, and other forms of electronic or electrical
signals, located in the City, and constructed or used for
one or more of the following purposes:
1. Collecting and amplifying local and
distant broadcast television or audio signals and
distributing and transmitting them;
2. Transmitting original cablecast
programming not received through television broadcast
signals;.
3. Transmitting television pictures, film
and video tape.programs not received through broadcast
television signals, whether or not encoded or processed to
permit reception by only selected receiver;
4. Transmitting and receiving all other
signals: digital, voice and audio-visual; r
5. Any other applications used in
transmitting audio and/or visual signals.
B. "Cable television system or "the system" also
means "community antenna television system" (as'that term is
used in Section 53066 of the Government Code of the State of
California), "CATV system," "cable system" or "cable
communications system."
C. An exception to the above definition is any
state or interstate common carrier over which the City has
no jurisdiction.
4.10.100 Department. "Department" means the
Public Works Deoart:«ent o- the City.
4.10.110 Director. "Director" means Public.
Works Director of the City or assignee..
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4.10.120 FCC.. "FCC" means the Federal
Communications Commission, its designee or any successor
thereto.
4.10.130 Franchise. "Franchise" includes the
term "license."
4.10.140 Franchisee or grantee. "Franchisee" or,
"grantee" means the person to whom the franchise is'granted,
and any person to whom it lawfully may be assigned.
4.10.150 Franchise payment period. "Franchise
payment period" means the period from the effective date of
the ordinance granting the franchise through December 31st
of the year granting the franchise, and each calendar year
thereafter, during the term of the franchise. .
4.10.160 Franchise oronerty or facilities.
"Franchise property" or "facilities" means any and ail
property of the franchisee, including, but not limited to,
service connections with the franchisee's facilities,
whether installed by the franchisee or not, erected,
constructed,. installed, laid, operated or :maintained in the
Citv pursuant to any right or privii.ege granted by the
franchise.
4.10.170 Franchise report period. "Franchise
report period." in all cases :Weans the period from the
effective date of the ordinance granting the franchise
through December 31st..of the year of granting the franchise
and each calendar year thereafter, during the term of the
franchise.
4.10.180 Head -end. "?lead -end" means the
electronic processing center for distribution of.the signals
received from the master antenna.
4.10.190 Lease receipts. "Lease receipts" means
any and all income, compensation, fees and other
consideration received directly or indirectly by franchisee
for the -lease or rental of franchise property, and
compensation for any service in connection therewith
including but not limited to studio and equipment rental and
production costs of any channel permitted or designated by
the FCC to be so leased or rented.
4.10.200 Leased channel. "Leased channel" means
a channel on the cable system on which the franchisee shall
provide open, widespread, and reasonable access to persons
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•
who desire to use said channel for commercial purposes, as
defined in Section 612 of .the Cable Act..
4.10.210 Non -basic service. "Non -basic service"
means anv communication service other than basic service
provided over its system by franchisee directly oras a
carrier for its subsidiaries, -affiliates or any other person
engaged in communications services including, by way of.
example but not limited to, pay or subscription television,.
burglar alarm data or other electronic intelligence
transmission; facsimile reproduction, meter reading and home
shopping.
4.10.220 Non -basic service receipts. "Non -basic
service receipts" means any and all income, compensation,
fees and other consideration received directly or indirectly
by the franchisee in payment for non -basic service provided
over its system b.v franchisee.
4.10.230 Public easement. "Public easement
includes, but is not limited to, any easement created by
dedication to the public, the City, or any public entity,
for public -utility purposes or -any other purpose whatsoever.
4.10.240 Revenue Collector. "Revenue Collector"
means the Director of Finance of the City or assignee.
4.10.250 Service area. "Service area" means
that area of the City in which the franchisee is authorized
to construct and operate, and orovide service connections
for, a cable television system pursuant to the terms and
conditions of the franchise.
4.10.260 Subscriber or user. "Subscriber" or
"user" means any person or entity lawfully receiving for any
purpose any service of the franchisee's cable television
system, including the ultimate recipient of any distribution
of franchisee's service.
4.10.270 Subscriber revenues. "Subscriber
revenues" means any and ail income, compensation, fees and
other consideration received directly or indirectly by
franchisee from the following sources:
A. Installation fees, disconnect and reconnect
tees and fees for regular cable benefits, including the
transmission of broadcast signals and access and local
origination channels, if any., derived from its operations
within the authorized franchise area;
3. 3asic subscriber receipts;
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TBM/TITLE4
C. Non -.basic service receipts;
D. Advertising receipts;
E. Lease receipts;
F'. Income derived from per -program or per -channel
charges;.
G. Any other income from any source derived from
franchise operations.
Chapter 4.12 '
GENERAL REQUIREMENTS
4.12.010 Title for citation. The ordinance
codified in Division 2 shall be Known and may be cited as
the "Master Cable Television System Franchise Ordinance" or
"Master CATV Ordinance."
4.12.020 Purnose of Division 2 -provisions. It
is the ournose of the ordinance codified in this Division 2
to standardize practices in the cable television industry.,
to provide for. the unified administration of cable
television franchises, to regulate rates to the extent
allowable by federal, state and local laws when necessary
for the public good, and to regulate the operation of
franchises for the ourpose of protecting and promoting the
public health, safety and welfare in the interests of the
subscriber, franchisee, and the public.
4.12.030 Continuation of provisions. The
provisions of this Division 2, insofar as.thev are
substantially the same as existing ordinance provisions
relating to the same subject :,tatter, shall be construed as
restatements and continuations thereof and not as new
enactments.
4.12.040 Provisions incornorated by reference. In
addition to the terms and*ccnditions .set out in this
Division 2, the franchise is.granted under the same terms
and conditions contained in Division l of this Title, as if
they were contained in this Division 2. In the event the
terms and conditions hereof conflict with the terms and
conditions of Division 2 of this title, the terms and
conditions hereof shall control.
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TBM/TITLE4 �.
4.12.060 Statutory provisions applicable. All
franchises for a cable television system.shail be granted
pursuant to Section.53066 of the Government Code of the
state of California.
4.12.080 Rights reserved to the City. A. The
rights reserved to the City under this Division 2 are.in
addition.to all other rights of the City, whether reserved
by this Division 2 or authorized by law, and no action,
proceeding or .exercise of a right shall affect any other
rights which may be held by the City. Franchisee, by
acceptance of the franchise, agrees to be bound thereby and
to comply with any action or requirement of the City in its
exercise of any such right or power.
B. City shall have the right to waive any
provision of the franchise, except those required by federal
or state regulation, if the Director determines:
1. That it is in the public interest -to do
so; or
2. That the enforcement of such orovision
will impose an undue hardship on the franchisee or the
subscribers.
C. The City shall have the power and right at ail
times for the duration of the franchise to require
franchisee to conform to rules and recuiations coverning the
operation of cable television systems now or hereafter
adopted by the City Council.
4.12.090 Terms and conditions cenerally. Every
franchise granted by the City after the effective date of
this ordinance., to construct from time to time and, for the
period covered by the franchise, to maintain and operate a
cable television and to maintain, operate, renew,.repair and
remove lines and cables for the transmission of television
and radio signals., tocether with all appurtenances and
service connections necessary or convenient Lor the
provision of a cable -television system in, under, along or
across any and all service areas, highways, public
properties and public easements, except as otherwise
provided in the ordinance granting the franchise, shall be
granted upon and be subject to the rules, regulations,
restrictions and terms and conditions of this Division 2,
and the rules, regulations, restrictions, terms and
conditions set forth in the ordinance granting the
franchise.
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TBM/TITLE4
ff, .
4.12.100. Franchise arant not exclusive. The
granting of the franchise shall not be construed to prevent
the City from granting any identical or similar franchise to
any person other than the franchisee.
.4.12.110 Acceptance of franchise. The
franchisee shall, within 30 days after the passage of the
ordinance granting the franchise, file with the City, an.
express and unconditional written acceptance of the terms
and conditions of said ordinance.
4.12.120 Term of the franchise. Unless,the
ordinance granting the franchise provides otherwise, the
term of the franchise shall be 15 years.
4.12.130
requirements.
Insurance and indemnification
A. 1. The franchisee shall, at its sole
expense, indemnify, defend and save harmless the Citv, its
agents, officers and employees from and against any and all
liability, expense, including defense costs and legal fees,
and claims for damaces of anv nature whatsoever, including
but not limited to, bodily injury, death, personai injury,
or property damage, including property of the franchisee,
arising from or connected with either directly or
indirectly, franchisee's activities, operations or services
hereunder, including any Workers' Compensation suits,
liability or expense, arising from or connected with
services performed on behalf of franchisee by any person
pursuant.to this franchise.
2. Nothing herein shall be deemed to
prevent the parties indemnified and 'held harmless from
participating in the defense of any litigation by their own
counsel at the franchisee's sole expense. Such
participation shall not under any circumstances relieve the
franchisee from its duty of defense against liability or of
paying any judgment entered against such company..
B. Without limiting franchisee's indemnification
of City, franchisee shall provide and maintain at its own
expense during the term of the franchise, the following
programs of insurance covering its operations hereunder such
insurance shall be provided by insurer(s) satisfactory to
Director and satisfactory evidence of such programs shall be
delivered to the City, on or before the effective date of
the franchise. Insurance policies and certificates
evidencing coverage shall name the City, its officers,
agents, and employees as additional insureds in respect to
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TBM/TITLE4
franchisee's operations under the franchise. Such evidence
shall specificall.y identify the franchise and shall contain
express conditions that City is to be given written notice
by registered mail at least 60 days iri advance of any
modification or termination of any program of insurance:
1. Liability. Such insurance shall be
primary to and not contributing with any other insurance
maintained by City, shall name the City, its officers,
agents, and employees as additional insureds, and shall
include, but not be limited to:
a. Comprehensive General Liability
Insurance endorsed for Premises -Operations, Products/
Completed Operations, Contractual, Broad Form Property
Damage and Personal Injury with a combined single limit of
not less than $1,000,000.00 per occurrence. If the above
insurance is written on a Claims Made Form, such insurance
shall be endorsed to provide an extended reporting period of
not less than five years following termination of the
policy.
b. Comprehensive Auto Liability
Insurance endorsed for all owned, non -owned, and hired
vehicles with a combined single limit of at least
$1,000,000.00 per occurrence.
C. Said amounts of coverage shall be
subject to review and adjustment by the City, at City's sole
option, at any time during the term o.f the franchise. In
the event of such adjustment, franchisee agrees to provide
such amounts as are determined by Citv, within 30 days after
written notice to do so from the City.
2. Workers' Compensation. A program of
Workers' Compensation Insurance in an amount and form to
meet ail applicable recruirements of the Labor Code of the
State of California, including Employers Liability Insurance
with a $150,000.00 limit, covering all persons providing
services on behalf of franchisee and all risks to such
persons under the franchise. Franchisee may provide, if
applicable, a certificate of consent to self -insure, issued
by the Director of Industrial Relations of the state of
California. Should franchisee utilize the self-insurance
provision of this section, and franchisee's certification of
consent to self -insure expire or be revoked, franchisee
shall be recuired to provide a program of Worker's
Compensation Insurance prior to or upon said expiration or
revocation.
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TBM/TITLE4
C. Franchisee shall furnish the Director, prior
to commencement of any franchise operations, either
certified copies of said policies required by subsection B
of this section,.or a certificate.of insurance for each of
the required policies executed by the company issuing the
policy,. certifying that the poli:cy is in force.
D. No franchise operations shall commence until
franchisee has complied with aforementioned provisions of
this section, and any such operations shall be suspended
during any period that franchisee fails to maintain said
policies in full force and effect.
E. It shall be the franchisee's obligation to
provide evidence of current insurance policies. .
4.12.140 Performance bond recuirements.
A. On or before the effective date of the
ordinance granting the franchise, franchisee shall furnish
the Director with a bond, payable to the City, in a form and
executed by a corporate surety acceptable to City and
licensed to transact business as a surety in the state of
California. Such a bond shall be maintained in full force.
and effect at all times during the term of the franchise and
shall be in favor of the City in the penal sum of
$50,000.00, or.such other sum as may be specifically
provided for in the ordinance granting the franchise. Said
bond to be conditioned upon faithful performance by
franchisee of the terms and conditions of the franchise and
shall provide that, in case of any breach of condition of
the bond, the whole amount of the penal sum shall be deemed
to be liquidated damages and shall be payable to the City by.
the principal and sureties of the bond. If said bond is not
filed as aforesaid, the award of the franchise may be set
aside and the ordinance granting the franchise rep_eaied and
any monev paid in consideration for said award of franchise
shall be deemed forfeited. The _performance bond may be
required in addition to a letter of credit or establishment
of a security fund. The rights reserved with respect to
said performance bond are in addition to all other rights of
the -City.
B. The amounts of said bond shall be subject to
review and adjustment by th,e City, at City's sole
discretion, at any time during the term of the franchise.
In the eventof such adjustment, franchisee agrees to renew
said bond., in an amount as determined by the City, with
sureties to be approved by the City, within 30 days after
written notice to do so from the City.
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TBM/TITLE4
C. Said performance bond.shall continue to exist
for one year following the Director's approval of any sale,
transfer,. assignment or other change.of ownership of the
franchise,, or of the expiration or termination of the
franchise, only for the purpose of assuring franchisee's
faithful performance under the terms and conditions of the
franchise _prior to the date of approval of said change of
ownership, or of expiration or termination. The Director
may release said bond prior to the end of the one-year
period upon satisfaction by franchisee of all said
obligations under the franchise.
D. No franchise operations shall commence until
franchisee has complied with the aforementioned provisions
of this section, and any such operations shall be suspended
during any period that franchisee fails to maintain said
bond in full force and effect.
4.12.160 Grant and forfeiture conditions.
A. Any franchise is granted on the conditions and
shall be held and enjoyed upon each and every condition
contained in the ordinance granting the franchise and each
and everv:condition contained in this Division 2, and shall
be strictly construed against the franchisee.
3. Tn addition to all other rights and towers
retained by the -City under this Division or otherwise, the
Citv reserves the richt to suspend or revoke and terminate a
franchise and all rights and privileges of a franchisee in
the.event of.a material breach of its terms and conditions.
yn interpreting this section, material provisions shall
include all labeled as such and all others, which, under all
the facts and circumstances indicated, are a significant
provision of the franchise agreement. A material breach by
franchisee shall include but shall not be limited to the
following:
1. Violation of any material provision of
the franchise or any material rule, order, regulation or
determination of the City made oursuant to the franchise;
2. Attempt to evade any material provision
of the franchise or practice anv fraud or deceit upon the
City or its subscribers or customers;
3. Failure to begin or complete system
construction, reconstruction or system extensions as
provided under the franchise;
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TBM/TITLE4
4. Failure to provide the types of
facilities,,equipment or services promised;
5. Material misrepresentation of fact in
the application for or negotiation of the franchise.
C. The Revenue Collector, prior to any suspension
or revocation and determination of the franchise, shall give
to the franchisee not less than ten days' notice in writing
of any default thereunder. If the franchisee does not
within the noticed period begin the work of compliance or,
after such a beginning does not prosecute the work with due
diligence to completion, the City Council shall hold a
hearing at which the franchisee shall have the right to
appear and be heard. Notice of said hearing shall be.given
to franchisee not less than ten days before said hearing.
D. Upon the conclusion of the hearing, the City
Council may determine whether such conditions are material
and essential to the franchise and whether the franchisee is
in default with respect thereto and may declare the
franchise susoended or revoked and terminated. No "evoca-
tion and termination shall become effective less than 30
days after the City Council's decision to revoke and
terminate; and no lapse of time, expenditure or anv other
thing shall be deemed to give the franchisee anv vested
right or interest in the continuation of.the franchise
granted.
112.1.67 Costs of technical assistance.
Franchisee shall Day the costs incurred by -he City for any
technical assistance deemed necessary by t:he City for
obtaining_ independent verification of tec:.nical compliance
with ail franchise imposed standards.
4.12.170 Sale, transfer, stock transfer, lease,
assignment, hvoothecation or chance in control of
C
ranchise -- Conditions.
A. 1. The franchisee shall not sell,
transfer; assign, lease, hvpothecate, place in trust or
change the control of the franchise or any part thereof,
except with the prior consent of the City Council, and after
payment of the fees recuired bv_ Section 4.14.025. The City
Council's consent shall not be unreasonably withheld. As
used in this section, "transfer" includes stock transfer and
"control" includes actual working control in whatever manner
exercised.
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T13M/TITLE4
2. Franchisee shall inform the City-
Council.of any pending sale, transfer, lease, assignment,
hypothecation, placing in trust or change in control, except
as excluded in subsection B. Transferor and transferee must
file an application for City Council's consent to -transfer
control of or assign the franchise as -set forth in
subsections D and E. Such applications shall be accompanied
by the fees required by Section 4.144025(A) and shall be
signed by duly authorized representatives) and the
signature(s).acknowledge.d(by a notary.
3. Fran
Council a certified copy
such sale, transfer, assi
or change in control with
such sale, transfer, assi
or change in control. If
not filed with the City C
effective date of suchysa
hypothecation, trust or c
expiration of said.30 day
to forfeiture and.the Cit
ordinance repeal the fran
4. As a
consent to such sale, tra
hypothecation, trust or c
may impose such additiona
franchise and upon the gr
deems to be in the public
and conditions shall be e
herein contained shall be
franchisee the right to s
hypothecate, place in tru
franchise or any part the
aforesaid. This section
by operation of law, by v
otherwise.
lhisee shall file with the City
if the duly executed instrument of
nment, lease, hypothecation, trust
n 30 days of the effective date of
nment, lease, hypothecation, trust
such dulv executed instrument is
uncil within 30 days alter the
e, transfer, assignment, lease,
ange in control, then upon the
the franchise shall be subject
Council may, without notice, by
hise.
condition to the crantina of
sfer, assignment,lease,
ance in control, t_^.e Ci-•: Council
terms ana conditions .:pon the
ntee or as -4nich.tne Council
_:Merest. Such aaait_onai terms
pressed by ordinance. Nothing
constr,:ea _o cranz to _ne
il, transfer, assign, 'Lease,
t or change control of the
eof except in the manner
ppiies to any assignment, whether
luntary act of the _.ranchisee, or
4.12.180 Report recuirements.
A. The franchisee, during the term of the
franchise, within 60 days after the expiration of each
calendar year, shall file with the Revenue Collector, one
copy to each, of a report verified by the oath of the
franchisee, or by the oath of a duly authorized
representative of the franchisee, setting forth in detail
the computation of.the amount of the franchise payment due
for the immediately precea�ing calendar year For each
physically separate transmission and distribution system,
own
TBM/TITLE4 S
any portion of which is located within the franchise.area,
the report shall contain:
1. A detailed profit and loss statement
showing all gross receipts and expenses derived from the
franchisee's franchise operations during the reporting
period.
2: The total number of service connections
in operation as of the last day of the calendar year.
B. Franchisee shall also provide on request such
additional data as is reasonably necessary in the opinion of
the Revenue Collector to calculate or verifv the calculation
of the annual payment required.bv Section 4.16.010.
C. File with the Revenue Collector a report in
duplicate showing:
1. The hermit number of each permit
obtained for the doing of any work under the franchise for
which a permit is required during the immediately preceding
franchise report period;
2. The lineal length of lines and cables
installed pursuant to each permit during the immediately
preceding franchise report period.
D. The City reserves the power to assess a
penalty of $250.00 per day for eac:^ day beyond tie reporting
period that the franchise.fails to rile any report required
by this Section.4.12.180.
4.12.190 Liability and indemnification.
A. Franchisee shall indemnify and hold City
harmless from and acainst any and all loss, damages,
liability, claims, suits, costs and expenses, including
reasonable attorneys' fees, regardless of the merit or
outcome of any such claim or suit, claimed or arising from
any negligent or intentional act or omission of franchisee,
its officers, empioyees, agents or subcontractors, arising
from activities or work conducted pursuant to the franchise.
3. Franchisee shall indemnify, defend and save
harmless the City, its officers, agents and employees, from
and against any and all claims and losses whatsoever,
including reasonable attorneys' fees, accruing or resulting
to any and all persons, firms or corporations furnishing or
supplying work, services, materials, equipment or supplies
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in connection with activities or work conducted or performed
pursuant to the franchise and arising.out of such activities
or work,.and from anv and all claims.and losses whatsoever,
including reasonable attorneys' fees, accruing or resulting
to any person, firm or corporation for damage, injury or
death arising out of franchisee.'s franchise operations.
4.12.200 Additional terms and conditions. In
addition to the provisions of Section 4.12.170, any time a
franchisee applies for a.change in territory, service area,
or bonding, the Council may impose such additional terms and
conditions upon the franchisee and upon the grantee or
assignee which the Council may deem to be in the public
interest. Such additional terms and conditions shall be
expressed by ordinance.
4.12.210 Permit recuired for certain work.
Notwithstanding the granting of a "franchise, the franchisee
shall not be authorized to do any work under the franchise
for which the issuance of a permit is required unless such a
permit .is issued for..such work.
4.12.230 Purchase of franchise property by City.
A. The Citv upon termination or forfeiture of the
franchise, or at any time during the term of the franchise
or, after five vears from the effective date of the
ordinance granting the franchise, shall have the option to
purchase all or part of the franchise orooerty, upon making
reasonable compensation therefor. City's right cc purchase
the franchise prooerty hereunder shall not be construed as a
waiver of any other rights City may Nave. In the event the
City elects to purchase the franchise property in accordance
herewith, the compensation shall be computed as provided in
Part 3, Title 7, Chapter 9, Article 4 of the Code of Civil.
Procedure of the state of California, provided further, that
such purchase shall be at an equitable price, which shall
not include compensation for loss of goodwill or any
valuation of the.franchise itself or of any of the rights or
privileges granted by the franchise. Other terms and condi-
tions of the sale shall be mutually agreed upon by the
parties.
If a renewal of said franchise is denied; any
acquisition of the cable system by the City shall be at fair
market value, determined on the basis of the cable system
valued as a going concern but with no value allocated to the
franchise itself.
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C. In the event the franchise is revoked and
terminated and the City elects not to purchase the franchise
property.hereunder, franchisee agrees to waive all claims
for damages or compensation which it may have against the
City as a -result of such revocation and termination;
provided, however, franchisee does not hereby waive its
rights to a judicial determination of the validity of such
revocation and termination.
4.12.240 Fair employment practices -- Statutory
provisions incorporated bv-reference. Franchisee shall not
make any discrimination, distinction or restriction on
account of color, race, religion, sex, ancestry or national
origin contrary to the provisions of Section 51 of'the Civil
Code of the state of California, which is incorporated
herein by reference. All applicable provisions of -Sections
12900 through 12996 of the Government Code of the state of
California (California Fair Employment and Housing Act) are
hereby incorporated herein by reference. Franchisee further
agrees to comp_iv with applicable antidiscrimination
provisions of Section 634 of the Cable Act.
4.12.250 Access to trenches.
A. in cases of new construction or property
development where utilities are to be placed -underground,
franchisee(s) shall, if practical, install underground cable
at the same time and in the same trenches as `he public
improvements (e.g., communications, eiectric, cas, water)
are installed.
3.f franchisee is notified of the date the
trenches are available and fails to install its conduit or
cable within five working days of the date the trenches are
available, and the trenches are thereafter closed after the
five-dav period, the cost of new trenching is to be borne by
the franchisee(s).
C. The requirements of subsections A and B shall
not apply unless the property owner offers franchisee the
same terms with respect to availability and cost of
trenching for undergrounding as are offered to other trench
users, if any.
D. In the event that a subdivider, property
developer or an entity owned by, associated with or under
the control of a subdivider or developer.has a franchise to
provide cable services to an area including its property
development(s), the franchisee shall be required to make
access to the utility trenches in the developments)
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available to all franchisees authorized to provide cable
services to an area including the development(s). Access
shall be provided at the same terms with respect to
availability and cost of trenching for undergiounding as is
provided to other trench users, if .any.
4.12:260 Underaroundina of Cable. All Cable
and, to the extent possible, all additional facilities shall
be installed underground and in accordance with this Title.
Chapter 14.14
APPLICATION FOR FRANCHISE
4.14.010 Filino. Any person desiring a
franchise for a cable television system shall file an
original application and eleven copies with the department.
4.14..015 Proprietary information. To the extent
permitted by law, proprietary information may be kept
confidential, if appropriately identified. in the event an
applicant believes that the informationAt must submit in'
its application should be treated confidentially by the
City, it must so advise the department by letter prior =o.or
with its application. If it is determined by zte City chat
such information is not confidential, the applicant will be
so notified and the information will be returned to the
applicant at applicant's request.
4.14.020 Contents of application. An
application for a franchise for a cable celevision system
snail be in the form as approved by the Director and which
will include information regarding the designation of the
specific area to be served by the franchise, identification
of the applicant, financial information, financing pian for
the operation, construction schedule, proposed charges to
subscribers, proposed system configuration, forecast number
of homes in service area, describe technical standards of
the system, whether anolicant is acquiring other cable
systems, ability of applicant to meet consumer needs, and
other information required by the City.
4.14.025 Franchise orccessina fee.
A. Upon submission of an application, the
applicant/'franchisee shall pay to the Revenue.Collector a
nonrefundable franchise processing fee as follows:
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1. Initial grant -of franchise or renewal
of existing franchise:.
a. Franchise area containing less than
1,000 homes: $ 1,000.00*;
b. Franchise area containing 1,000 to
5,000 homes: $2,500.00;
C. Franchise area containing 5,001 to
10,000 homes: $5,000.00;
d. Franchise area containing 10,001 or
more homes: $7,500.00; plus $1.00 for each home over 10,000.
*If the franchise area contains fewer than 100 homes
franchise may receive credit for all or a portion of the
processing fee. Said credit shall be applied to franchise
fee payments required by Section 4.16.010. Granting the
credit shall be at the sole discretion of the council and
shall be based upon economic or technological considerations
specific to the franchise area.
2. 'Consent to sale, transfer, transfer of
stock, assignment, lease, hypothecation or :rust of
franchise, not requiring modification of the franchise by
adoption of an amending ordinance: $ 1,000.00. +
3. Modification of franchise requested by
franchisee requiring the adoption of an amending ordinance:
$2,500.00.
4. Consent to sale, transfer, transfer of
stock, assignment or lease, or any other action requiring
modification of franchise by adoption of an amending
ordinance: S2,500.00.
5. Modification of franchise resulting
from noncompliance with one or more provisions of the
.franchise which requires the adoption of an amending
ordinance: S2,500.00.
B. Applicant may be required. to pay any
additional costs incurred by City in the processing of
appiicant's request for franchise, renewal, modification,
consent to sale, transfer, transfer of stock, assignment,
lease, hypothecation or trust of franchise. Such costs may
include the costs incurred for hiring consultants to assist
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in evaluating the application. Such costs shall be paid by
the applicant prior to final consideration of the request by
the Director or the Council, as applicable.
4.14.040 Deposit of publication and notice
costs. Upon receipt of an application for franchise, the
Citv clerk shall estimate the cost of publication and
posting of the notice of hearing, as provided herein, and
shall.notify the applicant of the amount thereof. No
further action will be taken on the application until the
estimated cost of publication and posting has been deposited
by the.applicant.
4.14.050 Public hearing -- Scheduling
prerequisites. Upon receipt of the required deposit, the
Clerk sha_ii set the application for a public nearing before
the City Council. Notwithstanding the foregoing, no
application for franchise shall be set for nearing unless it
contains the information required by Section 4.14.020.
.4.14.100 Posting and oublication costs. if the
cost of publication and posting of notice of nearing exceeds
the amount deposited by the applicant, the City snail bill
applicant for the deficiency. The applicant shall pay the
whole of such bill within 30 days after receict thereof. if
the amount of the deposit exceeds the cost of publication
and posting the City shall refund the difference to the
applicant.
Chapter 4.16
COMPENSATION
4.16.010 Franchise fee cavments to Citv.
A. As consideration for the franchise granted,
franchisee shall pay to the Revenue Collector in lawful
money of the United States, during the life of the
franchise, for each and every year, including the year of
granting thefranchise, according to the "franchise payment
period", five percent of its gross revenues derived from the
authorized franchise service area(s).
3. Said franchise fee shall be computed as
follows:
�. Franchisee shall pay a minimum monthly
fee as orovided in the ordinance granting the franchise;
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2.
percentage fee of
the total minimum
payment period.
Annually the
five percent of
monthly fee(s)
franchisee shall pay the
its gross revenues less
paid during the franchise
C. Franchisee shall make the monthly fee required
herein payable on the first day of -each month during the
life of the franchise. Franchisee shall make the annual
percentage payment concurrently with the filing of the
reports required by Section 4.12.180.
D. Commencing January lst after the first full
calendar year of operational service to subscribers, the
amount of the minimum monthly fee shall be subject to an
annual readjustment on each January lst for the remainder of
the term of the franchise. Franchisee shall recalcuiate the
monthly fee amount to provide that said monthly fee amount
shall be in an amount no 'less than 90 percent of -ne totai
franchise fee payment due to the Citv for the preceding
calendar year, said 90 percent amount to be prorated by 12
to determine the monthly fee amount to be paid during -he
current year.
E. Any overpayment of franchise Lees paid during
the previous annual oavment period shall be credited to
future franchise fees in succeeding franchise Lee oavment,
years, and shall be deducted from -he monthly fee amounts or
annual percentage amounts as required by the ordinance
granting the franchise. At such rime as overpayment ,as
been made, franchisee shall notify the City or franchisee's
intention to deduct anv said overpaymenz(s) rrcm the current
monthly fee amount(s) due and indicate the scheduling of any
such deduction(s).
F. In addition to the foregoing, the City
reserves the right to change its Lees if after a public
hearing it determines good cause is found and such action is
not in conflict with federal laws, FCC rules and regulations
or the laws of the State of California.
4.16.020 Initial construction charces. _n
addition to the foregoing franchise fee payments, the
rranchisee shall pav the Revenue Collector, within 60 days
after the end of each calendar year, during the life of the
franchise, an initial construction charGe for all new
construction during said calendar year, calculated at a rate
of S100.00 per mile or fraction thereof for all lines and
cables laid during the preceding franchise payment period
within the authorized franchise service area.
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0 •
4.16.030 Incorrect wavments. In
amount paid is incorrect in the judgment.of
Collector, it may order the payment of such
or sums as -it may deem necessary.
the event any
the Revenue
additional sum
4.16.040 Proration of payments. In the event of
abandonment of facilities with the approval of the City or
in the event of removal of such facilities by the fran-
chisee, the payments otherwise due the City for occupancy of
the roads or highways by such facilities shall be prorated.
for the calendar year in which such removal or abandonment
occurs as of the end of the calendar month in which removed
or abandoned.
4.16.050 Additional charge for late oavmenn In
the event franchisee Is to make any payments for the
franchise on or before the dates due as hereinabove pro-
vided, franchisee shall pay as additional consideration the
following amount: a sum of money equal to 10 percent of the
amount due. For each period of late payment of any fee
extending beyond 30 days of the due date, in addition to the
10 percent late payment charge, an assessment of interest
shall accrue at ten (10) percent oer month. The added
charge(s) for late payment shall be added to, and be due and
payable with, the next succeeding payment. The City shall
not be obligated to notify the franchisee of the
accumulation of late payment charges.
4.16.060 Recordkeeoina recuirements --
Examination authorized when.
A. Franchisee shall keep and preserve, for a
period of five years after the date of each franchise
payment period, all records necessary to determine the
amount of such franchise fees or other payments due under
Sections 4.16.010 and 4.16.020. Franchisee, upon demand by
City, shall make such records available for inspection and
audit by City or its authorized representative, within the
City.
3. At all reasonable times, the franchisee shall
permit City, or its duly authorized representative, to
examine all property of the franchisee erected, constructed,
laid, operated or maintained pursuant to the franchise,
together with any appurtenant prcperty of the franchisee,
and to examine, audit, and transcribe any and ail books,.
accounts, papers, maps and other records kept or maintained
by the franchisee or under its control which relate zo the
operations, affairs, transactions, property or financial"
condition of the franchisee with respect to the franchise.
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•
Chapter 4.18
CONSTRUCTION OF.FACILITIES
4.18.010 General recuirements.
A. 1. The cable television system and all
franchise property and appurtenances shall be constructed
and maintained in an excellent condition, in conformity with
the terms and conditions of the Highway Permit Ordinance, or
any other ordinance, rule or regulation now, or as hereafter
amended, adoD_ted or prescribed by the City, as may be
applicable. All work involved in the construction, opera-
tion, maintenance, repair and removal of the system shall be
performed with due diligence and using first-class
materials.
2. a. The franchisee shall at all times
comply with all current applicable laws including but not
limited to the following: National Electrical Safety Code
(National Bureau of Standards); California Public Utilities
Commission General Order 95 and General Order 128; Standards
of Good Engineering Practices for :Measurements on Cable
Television Systems (National Cable Television Association),
and FCC standards.
b. in addition, franchisee shall meet
the standards submitted by the franchisee, which shall be
included in the ordinance granting the franchise.
3. if at any time, it is determined by the
City or any other agency or authority of competent
jurisdiction that any Dart of the system, including,, without
limitation, any means used to distribute signals over or
within the system, is harmful to :he health or safety of any
person, then franchisee shall, at ita own cost and expense,
promptly correct all such conditions.
3. Franchisee shall not construct or install any
poles, conduits or other cable television system facilities
on.City highways until franchisee has secured the necessary
permits from the City.
C. Franchisee shall provide for at least a
50 -channel minimum capability, with return capability on as
many channels as possible based on the configuration of the
cable system, but with the requirement of a minimum of
return capability on four channels.
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4.18.020 New installations or replacements.
IA. New installations or replacements of franchise
property and appurtenances and ail other facilities neces-
sary for the installation, operation, maintenance and safety
of the cable television system shall be laid and maintained
only pursuant to permit issued by the department. All such
installations or replacements shall be reviewed by the
Director as to the most desirable location in the roads,
highways or public easements of the City, and the decision
shall be final and binding on the franchisee.
B. The provisions of this Code shall apply to all.
work performed in City rights-of-way and City easements in
connection with the franchise. all transmission and
distribution lines and cables within City rights -or -way and
City easements shall be laid and installed underground
except where franchisee produces written evidence of
permission to utilize existing pole systems, or where the
Director finds that the remoteness of the area or other
conditions justify exceptions to the rule.
4.18.030 Highway work -- Terms and conditions.
The work of constructing, laying, replacing, maintaining,
repairing, abandoning or removing all franchise oroperty and
appurtenances in, over, under, along or across any .nignway
shall be done to the satisfaction of the Directcr at ":e
expense of the franchisee, and in accordance wizn ail terms.
and conditions of this Code.
4.18.040 Plan of service area -- Recorts and
:naps. Within 60 days frcm the effective date. of the
ordinance granting the franchise, the franchisee shall
submit to the Director a pian for designated service within
the authorized service area of the franchise indicatina the
date on which franchisee expects the installation of the
system will oe completed and available for service to
subscribers in the various oarts of said area. The pian
shall include a map which details the phases, if anv, of
construction. Franchisee shall furnish the Director with
monthly progress reports. Thereafter, franchisee shall
furnish maps indicating in detail the location of the
existing construction, and olanned construction, if any,
within 30 days of request by the Director.
4.18.050 Semi-annual completion statement. The
franchisee, during the period of construction shall submit,
semiannually to the City a summary of the total number of
service connections in operation during the preceding six
calendar months.
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TBM/TITLE4
4.18.060
aDDurtenances.
40
Relocation of franchise property and
A. The City reserves the right to change the
grade, to change the width or to alter or change the
location of.any highway over which the franchise is
granted. If any of the franchise property or appurtenances
heretofore.or hereafter constructed, installed or maintained
by the. franchisee pursuant to the franchise on, along,
under, over, in, upon or across anv highway.are located in a
manner which prevents or interferes with the change of
grade, traffic needs, operation, maintenance, improvement,
repair, construction, reconstruction, widening, alteration
or relocation of the highway, or any work or improvement
upon the highwav, the franchisee shall relocate permanently
or temporarily any such franchise property or appurtenances
at no expense to the Citv upon receipt of a written request
from the Director to do so, and shall commence such work on
or before the date specified in such written recuest, which
date snail be not less than 30 days from receipz of such
written recuest. Franchisee shall -hereafter diligently
prosecute such work to completion; should francnisee neaiect
or fail to relocate its facilities in a time_v r7anner after
receipt of anv such notice, ,"ranchisee shall be responsible
for and shall reimburse the City for anv and ail additional
costs or expenses incurred by county due to or resuiting
from such delay in relocation of facilities.
B. The City reserves the right to lav, construct,
renair, alter, relocate and maintain subsur=ace or other
facilities or improvements of any tune or description in a
governmental but not proprietary capacity within -he
highways over which the=rar.chise is granted. If the City
finds --'-at the location or relocation of such facilities or
improvements confiicts with -he franc ise property or
appur-enances '_aid, constructed or maintained under the
franchise, whether such franchise orooerty was laid,
constructed or maintained before cr after -he facilities of
the Citv were laid, the franchisee of such=ranchise shall
at no expense to the Cita on or before the date specified in
a written request from the director, which date shall not be
less than 30 days after -he receipt of such Notice and
request to do so, commence :pork to change the location
either oermanentiv or temporarily_ of ail franchise oroperry
and anpurtenances so conflicting wit^, such_mprovements to a
permanent or temporary location in said :niahways, to be
approved by the director; and thereafter diligently
prosecute sucn work to completion. Should franchisee
nealect or fail to relocate its facilities in a timely
manner after receipt of any suc:n notice, francnisee shall be
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T5M/TITLE4
responsible for and
additional costs or
resulting from such
4.18.070
shall reimburse the City for any and all
expenses incurred by the City due to or
delav in relocation of facilities.'
Removal or'abar.donment of facilities.
A. At the expiration, revocation or termination
of the franchise or of the permanent discontinuance of the
use of all or a portion of its franchise property, the
franchisee shall, within 30 days thereafter, make written
application to the Director for authority either to abandon
all or a portion of such franchise property in place; or to
remove all or a portion of such franchise pronerty. Such
application shall describe the franchise oroperty desired to
be abandoned and its location with reference to City
highways, and shall describe with.reasonable-accuracy the
physical condition of such franchise property. The Director
shall determine whether anv abandonment or removal wnicn is
thereby proposed may be effected without detriment to the
public interest and under what conditions such proposed
abandonment or removal may be effected. The Director shall
then notify the franchisee of nis determinations.
S. Within 30 days after receipt of such notice,
the franchisee shall apply for a permit from the department
to abandon or remove franchise orcoerty.
C. The franchisee shall, wit`.i: 60 days after
obtaining such permit, commence and dilicently_ prosecute to
completion the work authorized by -he permit.
4.18.080 Costs of Removal ?aid by Grantee.
A. If any facilities to be abandoned "In Place"
subect to prescribed conditions shall not be abandoned in
accordance with all such conditions, t. ^.e director may make
additional appropriate orders, including an order tb:at the
franchisee shall remove any or ali such facilities. The
franchisee shall comply with such additional orders.
B. In the event that the ranchisee fails to
comply with the terms and conditions of abandonment or
removal as may be required by this Division 2, and within
such time as may be prescribed by the Director, then the
City_ may remove, or cause -o ce removed, such facilities at
the franchisee's expense. The franchisee snail pay to the
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10
City the cost.of. such work plus the current rate of overhead
being charged by the City for reimbursable work.
C. If at the expiration, revocation or termina-
tion of the franchise, or of the permanent discontinuance of
the use bf all or a portion of its franchise property, the
franchisee,' within 30 days thereafter, fails or refuses to
make written application for the above-mentioned authority,
the Directbr shall make the determination as to whether the
franchise property shall be abandoned in place or removed.
The Director shall then notify the franchisee of the
determination. The franchisee shall thereafter compiv with
the provisions of subsections B and.0 of. Section 4.18.070.
Chapter 4.20
SERVICE, RATES AND CONSUMER PROTECTION
4.20.010 Establishment and furnishina of
service -- Procedures and costs.
A. Franchisee shall, within one year after
acceptance of franchise, obtain all necessary oermits,
certifications and autnorizations as may be required in the
conduct of its business. Francnisee snail notify _ e
Director and Revenue Collector when all such per—its,
authorizations and certificaticns _ave been obtained.
Should franchisee be unable to comply with _ne requirements
of this subsection within the time soecifiea :nerein, _ne
franchise herein granted shall become nul_ and void and
franchisee shall have :o rights thereunder, crcvided,
however, that City Council may for aced cause shown by
franchisee grant extensions of time to como_1v_ with this
requirement.
B. Within 90 days after obtaining the necessary
permits, certifications and autncrizations, franchisee shay_
commence construction and installat or, of the cable televi-
sion system. _rancL-1isee shall notify _he Director and
Revenue Collector, in writing within 10 days thereof of the
date of commencement of construction and installation work.
C. The franchisee sha11 extend and complete the
cable television system zhrouginout. the designated service
area with reasonable dilicence. ;iithin two nears after
compiving with the requirements c.f subsection A, franchisee
shall be capable of providing basic service to every
residence within the franczise service area notwithstanding
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e
•
the provisions of subsection D; provided, however, that the
City Council may for good cause shown by franchisee grant
extensions of time to comply with this requirement.
D. Upon a reasonable request for basic service to
any residence within franchisee's service area, franchisee
shall promptly .furnish the requested service to such
residence; service shall be provided to a.residence passed
by franchisee's cable plant within 30 days of request for
service. Notwithstanding the above, if the franchisee can
show that permits or other authorizations must be obtained
or that the provision of such service is impractical,
technically unfeasible, economically noncompensatory or will
impose an undue hardship, the Director may waive or defer
franchisee's obligation to provide service to such
residence -
E. 1. For ourooses of determining compliance
with the provisions of this section, and to provide for a
reasonable and nondiscriminatory policy governing provision
of cable service to franchise service areas, franchisee
shall provide service to new subscribers at the normal
installation charge and monthly rate for customers of that
classification under the following terms and conditions:
a. (1) Where the new subscriber, is
located within 100 feet of existing aerial or underaround
trunk or distribution feeder cable or a group of 10 or more
new subscribers are within 1320 feet, or a group of 100 or
more new subscribers are within 3280 feet; and
(2) Where the number of homes to be
passed by such new extension cable olant bears the same or
oroo_ortional ratio to the total amount of new cable plant as
the average number of homes passed per mile of existing
cable giant; or
b. Tn tine alternative, the ordinance
granting the franchise may spec'_fv the number of homes to be
passed oer mile (for aerial and underaround construction)
which shall require mandatory provision of service.
2. _n --e event therequirements of
subdivision E.I. are not met, franchisee shall provide
service to new subscr_bers at zhe normai monthly rate for
customers of that classification and the installation cost
per subscriber snail be determined as follows:
a. rlithin l0 days of request from a
potential subscriber, franchisee shall. provide a written
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cost estimate to potential subscribers whose residence or
commercial place of business is located in excess of 100
feet from- the closest trunk or feeder cable. This estimate,
is to indicate franchisee's cost for labor and material _plus
10 percent for overhead costs for excessive footage from
energized trunk source and/or concealed wiring and/or
nonstandard underground drops. In addition, the estimate
may include the costs of use of utility.poles for aerial
cable, if applicable. -
b.. In the event there are less than
the average number of homes per Tile to be passed by cable
than are at present in the total olant, cable service will
be supplied at a cost based on the following Lormuia for
both aerial and underground construction:
i *Cost oer mile to construct
average homes oer mile in
plant for overhead or under-
ground as may -be applicable
ii. Cost oer mile to construct
subscribers requesting
'service
iii. Cost oer subscriber less
franchisee's cost
= Franchisee's share
= Cost cer subscriber
= Subscriber's cost
*"Cost oer mile to construct" .,;eans t: -:e turnkev orice as
supolied.by the cable. manufacturer of the newest version of
their ecuioment oresent'v Dein_ used by Lra,nchisee in the
system. Such cost to construct will include the :house
drops.
_. The franc_n.isee sha'' not be responsible for
providing service in =ose areas meeting the density.
recuirements herein or in the ordinance granting the
Lranchise if the franchisee is precluded by the orooerty
owner, instrument of record, or contract from providing
cable services or constructing and installing Lacilities and
equipment.
4.20.020 Service to oublic facilities. Franchisee
shall, upon written request Lrcm the City, provide and
maintain, at no cost to City, at _east one cable television.
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drop and free basic service to -each City facility, whether
an owned or a leased facility, facilities utilized by public
agencies with which the City contracts for services, each
law enforcement facility, fire. station, public school or
other public facility located within the authorized
franchise service area.
4.20..030
Service to private nonprofit schools.
A.. Franchisee shall provide and maintain, at no
cost to Citv or school, at least one cable television drop
and free basic service to each private, nonprofit school
site within the authorized franchise service area.
B. As used in this section, "private, non profit
schools" means schools that satisfy the requirements of
Section 12154 of the Education Code of the State of
California, and which are exempt from taxation under Section
214 of the Revenue.and Taxation Code of the State of
Ca1iforn.i-a.
4.20.035 Emergency override. The franchisee shall
incorporate into its cable television system the capability_
to permit tine City in times of emergency to override -he
audio portion of all channels smuitaneousiv. _n addition,
if feasible, the franchisee may be required to designate a
channel, which may be a PEG channel, to oe used =cr
emergencv broadcasts of both audio and video.. The
C ranchisee shall cooperate with the Citv the ase and
operation of the emergencv audio override system. e
Franchisee shall cooperate with the City to provide all
necessary equipment .n times of emergency.
4.20.040 Interconnection with other systems.
A. The City reserves the right to require the
franchisee to interconnect its cable television system with
any other cable. television system operating within the City.
For good cause shown, City may waive or defer this
requirement to interconnect, or grant reasonable extensions
of time to comply with this requirement.
B. For the purpose of this section,.
"interconnection" shall be defined as reception of' or
connection to Inose electronic signals wnicn are delivered
to the franchised cable television system by any foreign
source for distribution via the cable television system.
Such electronic signals shall be in a format acceptable
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(within the state-of-the-art technology) for unattended
processing into radio freauency energy for retransmission
into the cable television system.
.4..20.050 Signal auality responsibility_.
Franchisee shall.retain full resaonsibiiity"for the quality
of cable television service to all recipients of
redistributed service (i.e., through microwave, master
antennae or satellite -redistribution) Franchisee shall be
presumed to have retained such responsibility together with
all obligations arising from the franchise, including but
not limited to charges to the ultimate recipient for
service.
4.20.060 Compliance with FCC Rules and
Reculations. Franchisee shall at all times comply with the
rules and regulations governing community antenna television
system (CATV) operations promulgated by the FCC.
4.20.070 Exclusive City use channel Franchisee
shall dedicate one channel for exclusive use by the Citv.
4.20.071 Use of Facilities and Eauinment. In
addition to exclusive Cizy use channel. as provided for in
Section 4.20.070, Franchisee shall provide Citv with the
facilities and ecuioment as necessary for PEG programming.
4.20.080 Public, educational and aovern:mental use
(PEG) channels.
A. _n addition to exclusive City use channel as
provided for in Sec -ion 4.20.070, franchisee s�:all cecicate
a minimum of six channels for public, educational and
govern��:ental uses. Use of each type of said c^.annels snail
be in accordance with City policies and procedures. City
reser-ves _he right to cnange, ceiete or amend sucn policies
and.orccedures during the term of the franchise.
B. If fewer than six PEG channels are to be
activated" initially, activation of channels bevond those
recuired for initial activation shall be acccrainQ_ to a
formula which snall be expressed in the ordinance granting
the franchise.
C. �. Channels actuated for public or
educational access uses shall contain daily notice of the
name, address and telephone number of the party to contact
for information regarding access uses, and advisement that
other channels, if any, are available for PEG uses. The
language of the notices shall be approved by the Revenue
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9
Collector, prior to carriage, and the notices shall be
provided on a scheduled basis as determined by the Revenue
Collector.
2. In addition, in the event that not all
PEG channels are activated and utilized for PEG uses, the
franchisee sriall issue periodic written notice (at least
once a year) to subscribers informing them that additional
channels are dedicated for public, educational and
governmental uses and are temporarily being used for other
programming purposes until needed for community and
governmental uses. information shall.aiso be provided
regarding whom to contact regarding PEG uses.
D. Franchisee may utilize PEG channels dedicated
for, but not yet utilized for, PEG uses, for programming of
their choice until such time as utilized for PEG uses;
provided, however, that orier to franchisee's use of any
such PEG channel(s), franchisee give 60 days written notice'
by certified mall to zte Revenue Collector or such use. The
Revenue Collector shall aive franchisee 60 days prior
written notice of intention to use such channei(s).for PEG
use(s). Provided, however, should franchisee utilize such
channels) with programming which provides for local
advertising, franchisee shall be required to provide PEG
informagionai notices as required in subsection (C)(1) on
any such channel.
E. Underutilized PEG channels activated for PEG
uses may also be utilized by .franchisee for compatible type
programming subject to rules and procedures established and
as may be modified by the City throughout the term of the
franchise.
F. Franchisee shall not be permitted to use a
dedica=ed PEG channel if other charnel capacity on :he
system has not been programmed.
G. The Revenue Collector may for good cause waive
or modify the requirements of this section.
4.20.085 PEG orovisions -- Not fee or oavments in
kind. Franchisee shall agree that :he orovision of PEG
channels, free cable drop, free basic service, equipment and
emergency services, as specified in Sections 4.20.020,
4.20.030, 4.20.035, 4.20.070, 4.20.071, and 4.20.080, shall
not be considered as within the meaning of the term.
"franchise fee" or "payments in kind" as used in Section
622(8) of the Cable Act.
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4.20.090 Return capability for exclusive City use
channel and PEG channels. When required by the Revenue
Collector, franchisee shall provide return capability
channel(s) for use in connection with the exclusive City use
channel and/or PEG channel(s). Said return capability may
be provided on PEG channels.
4.20.095 Leased access channels. Franchisee shall
provide leased access channels as required pursuant to
Section 612 of the Cable Act. Total system capacity shall
be calculated inclusive of PEG channels. Franchisee shall
submit information regarding leased access channel rates to
Citv when requested. Leased access channel rates shall be
available for public inspection.
4.20.097 Local public broadcasting channel
requirements. To the extent authorized by law, every
franchisee shall carry a public broadcast station(s) on a
cable channel within channels.2 through 13, inclusive, or on
its current broadcast channel identification number, or on a
cable channel number as otherwise agreed to by the Revenue
Ceilecto_ and the Franchisee. Franchisee 7nav not c^.anae the
cable channel placement of the public broadcast station(s)
without the Revenue Collector's written aoorcval. his
recuirement shall apply to all franchises granted, renewed,
assigned or modified after the effective tate of the
ordinance codified in this section.
4.20.100 Standards for service -- `4inimum
recruiremen.ts.
A. The City may require franchisee to deliver to
subscriber terminals to those television broadcasts and
cablecast signals .which are now or hereafter authorized fer
carriage by the FCC. The signals produced by the system
shall be of ,high quality throughout the system with no
difference perceptible to viewers whether in close proximity
to the head -end or at the farthest extensicn of the trunk
line.
3. Franchisee shall distribute in color those
televis.ion signais which it receives in color. The system,
as installed, shall be capable of passing standard black and
white and color video channels with associated audio signals
without material degradation and with no phase shift and no
effect on color fidelity and intelligence.
C. 1. Franchisee shall render such service to
subscriber as will meet 'technical and performance
requirements of the franchise. At a minimum, franchisee
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shall provide the.broad categories.of services and mix,
quality, and level of programming represented to the City in
the application and'made a part of the franchise agreement.
2. As an aid to City in monitoring signal
strength and quality, franchisee shall provide City with
copies of all FCC Signal Performance Reports. Should.the
FCC no longer require signal performance reports, franchisee
shall make and submit such performance tests and reports in
response to written request by the City. Any time the
signal does not meet.FCC standards or the standards of
franchisee's an as incorporated in the ordinance
granting the franchise, franchisee shall make a pro rata
rebate, in money or in services, to each subscriber based
upon the percentage by which the signal.falls below standard
ana upon the length of time that such condition nas
existed. Such rebate shall be made to the satisfaction of
each subscriber, or of Citv if agreement with the subscriber
cannot be reached.
D. Franchisee shall provide program origination
if so recuired by the FCC or the ordinance granting the
franchise.
E. Franchisee shall render efficient service,
making repair oromptly and interrupting service only for
good cause and for the shortest possible time; anv scheduled
interruptions, insofar as possible, ahail be preceded by
notice given to subscriber at least 24 hours in advance and
shall occur during periods of minimum use cf the system.
F. Franchisee must retain and '-ave available
emergency personnel capable of performing emergency repairs
and maintenance 24 hours a day, every day, _ncluding
weekends and holidays. The Revenue Collector may waive or
modify this requirement if franchisee can demonstrate that
it is not economically feasible to provide such emergency
personnel.
G. Franchisee shall notify the Revenue Collector
within 48 hours of when the cable television system is down,
when the system is having difficulties which may
affect services to the subscriber, or when franchisee's
telephone lines are out of service, in order that the
Revenue Collector is able to advise those subscriber who
contact the City due to inability to reach the cable
operation In addition, franchisee shall advise the Revenue
Collector, by telephone and in writing of all scheduled
maintenance which will cause disruptions to service, and of
any outages cf more than four hours duration.
TBM/TITLE4
H. A line item on each bill to the subscriber
shall describe any credits for interruptions, and credit(s).
shall automatically be given on a pro -rata basis to any sub-
scriber(s)-affected by interruption(s) of service for more
than two hour due to actions or outages under the contr.ol of
the franchisee, exclusive of scheduled repairs or
maintenance that franchisee has provided advance notice of
to subscriber; for such interruption(s) of service not under
the control of the franchisee, credit(s) shall be given .on_a
pro -rata basis upon the.request of the subscriber(s). .
I. Franchisee shall maintain and upgrade the
system and services to -reflect feasible_technical.and
economic deveioo_ments occurring during the term of the
franchise which will benefit the public in terms of new and
more effective and efficient service and to orovide a
state-of-the-art cable television system which meets the
interests and needs of the community during the-erm-of the
franchise.
,ranchisee shall provide and maintain
continuous service to subscribers unless allowed :t.erwise
by the FCC. Franchisee may petition the FCC to authorize
the suspension or abandonment of service upon such
reasonable terms and conditions as may be prescribed by the
FCC. A coov of any such petition snail be filed with the
countv-enaineer concurrently with the filing of the oetition
with the FCC.
K. Upon recuest of subscriber or ootent'al
subscriber, franchisee stall provide a mornina (be -Fore 12
noon) or afternoon (after 12 noon) service call or instal-
lation appointment. Should `ranchisee be unable to keep the
appointment, subscriber shall be notified at the earliest
possible opportunity, and shall be rescheduled cn a priority
basis.
4.20.110 _nstal_aticn -- Technical
documentation. franchisee snail provide the Revenue
Collector with complete technicai documentation of the cable
television system as installed. Said documentation shall
include, but is not limited -o, head -end equipment and
location, satellite location and tecnnicai parameters, and
the backbone cable routine but need not include each
subscriber drop. Such documentation shall be sent to the
Revenue Collector within 60 days of initiation of subscriber
service and shall be updated as necessary.
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4.20.120. Subscriber complaints " Investigation,
resolution and recordkee ing.
A. Response to subscriber complaints shall be
initiated within one business day of receipt and the
resolution of subscriber complaints shall be effected by the
franchisee not later than three business days after receipt
of the complaint. Should a supervisor not be available when
requested'by a subscriber, a supervisor shall return the
subscribers telephone call at the earliest possible time and
in no event later than the end of the next business day. If
a subscriber has notified franchisee in writing that a bill
is in dispute, franchisee shall not terminate service
pending resolution of the dispute, nor shall the account be
turned over.or reported to a collection agency, provided
that the remaining balance of the bill is current. A bill
shall not be considered to be in dispute solely by reason of
nonpayment by subscriber.
S. upon complaint by any subscriber, franchisee
shall have the burden to satisfy the Revenue Collector that
a signal is being delivered which is of sufficient strength
and quality to meet standards contained in the FCC rules and
regulations, as well as the City standards in effect during
the term of the franchise. The Revenue Collector may, upon
consideration of the complaint and evidence supplied by
franchisee, order that the franchisee award :he appropriate
credit to the complaining subscriber.
C. Franchisee shall maintain a written complaint
record containing the following information:
1. Date and time of subscriber complaint;
2. Identification of the complainant by
name, address and telephone number;
.3. Description of one nature of the
complaint;
4. A record of when and what action was
taken by franchisee to resolve the complaint.
D. The complaint record shall be kept at
franchisee's local office for a period of two year after
receipt of any such complaint. A copy of said complaint
record shall be submitted by franchisee to the Revenue
Collector upon franchisee's application for extension of
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TBM/TITLE4 r
service area(s), modification, transfer or renewal of
franchise and within 10 days following receipt of a written
request therefor from the Revenue Collection.
1. If required by the Revenue Collector,
said complaint record shall contain a semi-annual (through
June 30th and through December 31st) breakdown indicating
the total number of complaints received for the preceding
reporting period, and'shall indicate the major
classifications of complaints as follows: construction,
billing customer relations%service, miscellaneous.
E. Throughout the term of the franchise,
franchisee shall maintain an outage log showing the date,
approximate time and duration, type and probable cause of
all head -end, trunk or distribution line service failures.
The log shall also include information relating to routine
testing or scheduled :maintenance outages. A copy of said
outage log shall be submitted by franchisee to the Revenue
Collector within 10 days foiiowing receipt of a written
request therefor from the City.
4. 20.122 Special tests and reports. When
complaints have been i-nade, evidence indicates an unresolved
controversy or significant noncompliance with franchise
standards, or when circumstances exist which, in _ne
judgment of the Revenue Collector, cast doubts upon the
reliability or quality of cable service, `he Revenue
Collector may require franchisee, at Franc^:'see's cost, to
test, analyze and provide a written report ori the
performance of the system. Said renort.shall be delivered
to the Revenue Collector, no later than _4 days after
franchisee is notified, in writing, of the -eauired ren_ort
and shall include the following _..=ormation: nature of the
ccmniaints which precipitated the sa_ecial tests; what system
component was tested, the equipment used, and procedures
employed in said testing; the results of such test; and the
met.ca in which said complaints were resolved. -he Revenue
Collector may require that tests and analyses be supervised
by an independent professional encineer acceptable to the
City. The cost of such tests shall be borne by the
franchisee. The tests shall be Forwarded to the Revenue
Collector with a report interpreting the results of 'the
tests and recommending actions to be taken.
4.20.124 Subscriber=erminal test requests.
Franchisee shall, union reasonable request cr complaint by a
subscriber, gerForm such tests as necessary at the sub-
scriber's terminal to establish whether a signal of
requisite quality is being delivered to the subscribers
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a
premises. The results of.such test(s) shall be given to the
subscriber as soon as the test is completed and evaluated,
and in no event later than 10 days after the test is
conducted. Results of such tests will be submitted to the
Revenue Collector, upon request.
4.20.126 Periodic review of system aualitv.. The
Revenue Collector shall have the right to conduct periodic
reviews of the performance and quality of the system during
the term of the.franchise. The record of subscriber
complaints, the record of performance tests and other tests
or surveys conducted shall be included in the review.
4.20.130 Notice and information to subscribers.
A. Prior to or at the time of installation,
franchisee shall provide each new subscriber with written
information regarding:
1. A listing of all services, packages and
rates.available at the time, including billing options and
dispute procedures, refund procedures, and company policies
regarding_ disconnection and reconnection services and
charges;
a. if franchisee :has elected to utilize
line item charges for franchise fees, copyright and otter
fees as oermitted under Section 634 of the Cable.Act, any
such listings, whether written or oral, .shall disclose to
the prospective subscriber the total costs associated with
receiving cable services. Prior to the issuance of any such
notices, a copy shall be submitted to the Revenue Collector
for review and approval of the notices.
2. The availability of any devices required
by federal, state or local law, such as, but not limited to,
parental lock box device and a switching device ("A,/B"
switch), and any fees or charges associated with receiving
the devices;
3. The address, telephone number and hours
of business of franchisee's local office for service and
resolution of complaints for the franchise area;
4. identification of the City, including
address and telephone number, as the referral agency, in a
form of language to be provided by the Revenue Collector;
5. A separate, written notice containing
information regarding protection of subscriber privacy
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TBM/TITLE4
rights as specified under Section 631 of she Cable Act.
Said notice to subscribers retarding protection of privacy
rights shall be issued in a separate,.written notice at
least once a year thereafter;
6. Other appropriate information regarding
franchisee's system as required by the Revenue Collector.
B. Franchisee shall also provide a separate,
written notice to all subscribers every six months or as
required by the Revenue Collector, which identifies the
department as required in subsection (A)(4).
1.. Semi-annually, the Revenue Collector
shall provide the.language of the notice to be issued to new
and current subscribers. Failure -o circulate the notice
every six months as recuired in this subsection 3 shall
result in the franchisee being assessed a fine of one dollar
per subscriber oer.:,,cnth until such time as notification is
made -o subscribers as.reeuired.
C. 1. The notices required in subsections
(A)(5) and (3) of Section 4.20.130 :nay be incluced.in r_:^e
mailing of the subscriber's .billing statement, bur- spall not
be accompanied by any promotional materlals.
2. Franchisee shall place :^e Revenue
Collector on a :nailing list for the notices required in
subsections (A)(5) and (3') of this Section 4.20.130.
4. 20.140 Local business office reau _4 - erne nts.
A. Franchisee shall maintain a local business
OL -ice wi-=^.in the City and provide the Revenue Collector
with the name, address and telephone number of t_he persons)
who will ac- as the franchisee's agent(s) for eenerai
management of the system and to receive complaints regarding
quality 0 service, equipment malfunctions, and similar
matters. Franchisee shall advise City of a chance of
franchisee's agent s) within five working days of any such
chance. The focal office shall be open to receive.inquiries
or complaints from subscribers during normal business
hours. A toll-free p^one number snail be available to all
subscribers located within t_".e franchised area for the
reDcrtinQ of service probiems.on a 24 hours per day, seven
days oer week, 365 days per year basis.
3. Franchisee shall provide sufficient teleohone
lines, either adequately staffed or with answering
capability, providing, at the minimum, emergency referral
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41 • .
information. Franchisee shall return calls for services or
complaints received during normal business hours within Lour
business hours of receipt, ana shall promptly investiaate
and resolve all calls for service and complaints. During
periods when answering service or machine is used,.
franchisee shall provide on-call-o_ersonnel who shall contact
the answering serviceimachine, at a minimum, every four
hours to check on requests for service and complaints.
C. In order to. determine whether sufficient
teleohone lines are Drovided, the Revenue Collector may
require that a busy study, traffic study or other study be
conducted, at franchisee's expense, if any, by the local
telephone companv. Should franchisee have its own teleohene
equipment which can report on telephone line(s) usage, the
franchisee may submit such report from its own system.
D. Should the Revenue Collector determine that
insuffi.._ent telephone lines or _nadea_uate staff exists,
franchisee snail take necessary steps to ensure that
adequate te-eD_hcne lines or staffing are available for
normal, daily activities. Consideration shall be given for
periods of promotional activities or cutages. The MIOnthly
billing period shall be ccnsidered as a normai, daily
activity for purposes of determining adequate telephone
lines and/or staffing.
4.20.150 Pates and rate clances =xceot to the
extent oreemoted by _eceral or state laws and regulations,
the procedures ana s.tanaaras set =ort:n i. `his section shall
prevail exceD_t as modified by the ordinance granting the
franchise.
?,.For new and newly renewed franchises, during
the first year of operational service offered to subscriber,
franchisee shall charge a subscriber no more for its
services than the rates and charges initially approved by
the City Council when cranting the Francnilse. Franchisee
shall not change rates or charges unless such chances are
approved or authorized in the manner provided in this
section.
B. 1. For existing franchises and after the
first year of operative service to subscriber, for new and
newly renewed franchises, Franchisee shall rotiLv the
Revenue Collector.of any proposed change in rates or
charges. The notification shall include a written list.
showing the rates and charges currently in effect and the
proposed changes. The notice shall also include the
ustificatioh(s) for the proposed change(s).
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r d;
2. Within.30 days after submission of
franchisee.'s proposed changes, the Revenue Collector, in his
or her sole discretion, shall either approve or disapprove
of the proposed changes, or any of them, and shall notify
franchisee of the decision. To the extent that any proposed
change is disapproved, the Revenue Collector shall set forth
in writing findings of fact for disapproval.
3. Franchisee shall not take any action to
change rates or charges until authorized to do so by the
Revenue Collector, or as a result of an appeal taken as
indicated in this section.
C. Franchisee may, within 10 days after mailing
of the notification of decision, appeal such decision to the
Citv Council. Upon receipt of the appeal, the Council may
take any one of the following actions:
1. Approve the decision;
2. Refer the matter back to the Revenue
Collector with or without instruction;
3. Set the matter for public ':earing before
itself; such public hearing shall be held de Novo as if no
hearing previously had been neia.
4..20.160 Notice to subscriber of discontinuance of
service for nonrDayment. Franchisee sna11 oroviae at east
60 days written notice to a subscriber prior to
discontinuance of service for nonpayment. The notice shall
contain the date, time and place by which payment must be
made in order to prevent disconnection of service.
4.20.165 Restoration of service disconnected in
erre-. -- No charce tc subscriber. n the event franchisee
has improperly or inadvertently disconnected cable services
to a subscriber, franchisee snail arovide for restoration
without charge to subscriber within two business days of
discovery of disconnection. +
4.20.170 designation of franchisee Lees and other
line items on subscribers' statements -- Required notices.
Franchisee shah notify subscribers at least 30 days.prior
to.the first inclusion of franchise fees and/or other line
items on their statements, as permitted in Section 622(o)
and (g) of the Cable Act. Said notice shall explain the
election to use lire item designations and the effects such
designations shall have on the total costs associated with
receiving cable services. No such notice shall be issued to
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TBM./TITLF.4
subscribers until the City has reviewed and approved the
notice. Any designation of franchise fees as a separate
line item on the.statement shall use the term "franchise
fee.
4.20.180 Requirements of notice of or000sed
changes in rates, charges, tier.inq or carriage. Whether or
not the franchise is subject to rate regulation by the Cit,,
franchisee shall provide notice to subscribers and the City.
of chances in rates, charges,.tiering or carriage as
provided herein:
A. Franchisee shall notify all subscriber, in,
writing, of any proposed changes in subscriber rates,
charges, tiering or carriage at least 60 days in advance of
the effective date of such oronosed changes. In no event
shall a subscriber be billed.for service at the increased
rate or charge prior to the delivery of the notification to
the subscriber.
B.. Franchisee shall notify the Revenue Collector,
in writing., of any proposed changes in subscriber rates and
charges, tiering or damage at least 90'cays in advance of
the effective date of such proposed chances. Tl -ie
notification to the Revenue Collector shay_ _-:clude a _:st
showing the rates and charges currently in effect anc _he
proposed changes. Only those rates and c::narces -nat are on
file with the department may be charged to subscribers.
C. If it is impractical or impossible for
franchisee to orovide above notifications cue to conditions
beyond franchisee's control, franchisee shall give reason-
able notice to subscribers and the Revenue Collector.
D. In the event of a rate increase, retiering or
other change(s) in service by Franchisee, subscribers may.
downgrade or disconnect service without charge; provided,
however, that charges may be imposed for failure to return
converter boxes, remote controls or other equipment owned by
the franchisee.
. 4. 20.190 Preference to certain subscribers
prohibited. Franchisee shall not grant any preference or
advantage to any person or group, nor subject any person or
group to prejudice or disadvantage as to rates, charges,
services, service facilities, rules and' regulations or in
any other resnect relative to the rights granted under the
franchise. Nothing in this section shall prohibit the
franchisee from offering limited, promotional specials, nor
from offering bulk or discount billings.
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