Agoura Hills Municipal Code Part 3 Franchise Requirements

Minimum service standards and standards governing consumer protection and response by grantee to subscriber complaints not otherwise provided for in this chapter may be established in the franchise agreement, and grantee shall comply with such standards in the operation of the cable television system.

(Ord. No. 198, § 1, 10-9-91)

Following issuance and acceptance of the franchise, grantee shall pay grantor a franchise fee of five (5) percent of gross annual receipts in accordance with procedures set forth in the franchise agreement.

(Ord. No. 198, § 1, 10-9-91)

Council may require grantee to deposit into an interest bearing account established by the city a sum established by grantor as a security fund. This sum shall be maintained on deposit throughout the term of the franchise in an account bearing interest in an amount equal to the average rate of return on funds invested by the city during the time the deposit is maintained, which interest shall be payable to grantee.

The security fund shall be available to grantor to satisfy any and all claims, liens, and/or taxes due grantor from grantee which arise by reason of construction, operation or maintenance of the system.

Grantee shall be entitled to the interest on the security fund at any time. Subject to grantor approval, security fund requirements may be satisfied by conveyance of an irrevocable letter of credit to grantor in a form approved by grantor.

(Ord. No. 198, § 1, 10-9-91)

Grantor may establish, and grantor shall have the right to establish as a term of any franchise granted hereunder, a public benefit, nonprofit corporation, to receive and allocate support funds and other consideration for the purpose of promoting and developing local usage of the cable television system for public, educational, or governmental purposes.

(Ord. No. 198, § 1, 10-9-91)

(a) All franchise property to be constructed and operated under the franchise shall be built and constructed of first class materials in a good and workmanlike manner and maintained in good working condition.

(b) Grantee shall not construct or install any poles, conduits or other system facilities within city streets until grantee has secured the necessary permits from the city or obtained any other necessary authorization from the city and obtained permission from the Federal Aviation Administration to erect and maintain antennas suitable to the needs of the system and its subscribers where such permission is required in view of the nature of such antennas.

(c) In those areas of the city where transmission or distribution facilities of public utilities providing telephone and electric power service are underground, grantee likewise shall construct, operate, and maintain its transmission and distribution facilities therein underground.

(d) In those areas of the city where grantee's cables are located on above-ground transmission or distribution facilities of the public utility providing telephone or electric power service, and in the event that facilities of both such public utilities subsequently are placed underground, then grantee likewise shall reconstruct, operate, and maintain its transmission and distribution facilities underground.

(e) Amplifiers, power supplies, and other electrical facilities and related components of the cable system to service underground cables may be installed in accordance with requirements of the franchise agreement.

(f) If any portion of any street is damaged by reason of installation or existence of any facility constructed under a franchise granted pursuant to this chapter, the grantee thereof shall, at its own expense, immediately following written or oral notification thereof, repair any such damage and put such street in as good condition as it was before such damage, to the satisfaction of the city manager, or such person as designated by the city manager. Verbal notification will be confirmed in writing within forty-eight (48) hours.

(g) Grantee shall not remove any tree or trim any portion, either above, at, or below ground level, of any tree on public property without prior consent of grantor. Grantor shall have the right to do tree trimming requested by grantee at the reasonable cost of grantee.

(h) Except in an emergency occasioned by the requirement to comply with other provisions of this chapter and provisions of grantee's franchise, and even then only after receiving approval from the city engineer, grantee shall not and no permit shall be issued to allow grantee to excavate for any purpose in any street which has been resurfaced or repaved within the preceding three (3) years, except upon prior approval of council.

(Ord. No. 198, § 1, 10-9-91)

(a) Grantee shall construct, install, operate, and maintain its system in a manner consistent with all applicable laws, ordinances, construction standards, governmental requirements, FCC technical standards, and detailed standards set forth in its franchise agreement. In addition, grantee shall provide to grantor, upon request, a written report of results of grantee's annual proof of performance tests conducted pursuant to FCC standards and requirements.

(b) Grantee shall continue, through the term of the franchise, to maintain FCC technical standards and the quality of service set forth in this chapter. Should grantor find that grantee has failed to maintain FCC technical standards and quality of service, and should grantor specifically enumerate improvements to be made so as to comply with such technical standards and quality of service, grantee shall make those improvements. Failure to make those improvements within three (3) months of such notification or to commence improvements within such three (3) month period and diligently complete them thereafter will constitute a breach.

(c) The franchise agreement negotiated between grantor and grantee may contain technical and signal quality standards that exceed standards required by the FCC.

If at any time federal laws and regulations are amended so as to permit city to regulate rates and charges for subscriber services, city hereby reserves the right and authority to regulate and control rates and to amend this chapter so as to set forth a procedure for setting rates and reviewing requests for rate increases. Notwithstanding anything to the contrary set out in this chapter or in any such procedures, grantee may adjust any rate subject to regulation under this chapter by an amount not to exceed the adjustment in the Consumer Price Index, All Items, All Urban Consumers, for Los Angeles-Anaheim-Riverside (1982—84=100), prepared by the United States Department of Labor, Bureau of Labor Statistics, measured from the date such rate was last increased to the date such rate was next increased, provided such rate is adjusted no more than once during any twelve-month period, and provided that grantee shall have given the city manager (or his designee) sixty (60) days prior written notice of the proposed change in such rate. Such adjustment shall become effective unless council within the sixty-day period elects to review the proposed adjustment, in which case it shall so notify grantee and set the matter for public hearing, which public hearing shall be held within such sixty-day period. The decision of council shall be final. Should this index be revised, the revised index shall be used for purposes of making the computation required by this section. Should this index be entirely discontinued, grantor and grantee shall agree upon a replacement index which most closely approximates the index set forth herein.

(Ord. No. 198, § 1, 10-9-91)

Grantee shall indemnify, defend, and hold grantor, its officers, agents, and employees, harmless from any liability, claims, damages, costs, or expenses, including reasonable attorneys' fees, arising from injury to persons or damage to property to the extent caused by any conduct undertaken by grantee, its officers, agents, or employees, by reason of the franchise; grantee shall, at its sole cost and expense, upon demand of grantor, appear in and defend any and all suits, actions, or other legal proceedings, whether judicial, quasi-judicial, administrative, legislative, or otherwise, brought or instituted or had by third persons or duly constituted authorities, against or affecting grantor, its officers, agents, or employees, and arising out of or pertaining to any conduct of the grantee, its officers, agents, or employees, which is within the scope of this indemnity.

(Ord. No. 198, § 1, 10-9-91)

(a) On or before commencement of franchise operations, grantee shall obtain policies of liability, worker's compensation, and property insurance from companies authorized to transact business in California by the Insurance Commissioner of California.

(b) The policy of liability insurance shall:

(1) Be issued to grantee and name grantor, its officers, agents, and employees, as additional insureds;

(2) Indemnify for all liability for personal and bodily injury, death, and damage to property arising from activities conducted and premises used pursuant to this chapter by providing coverage therefor, including but not limited to coverage for:

a. Negligent acts or omissions of grantee and its agents, servants, and employees, committed in the conduct of franchise operations; and

b. Use of motor vehicles;

(3) Provide a combined single limit for comprehensive general liability and comprehensive automobile liability insurance in the amount provided for in the franchise agreement; such insurance policy shall be subject to review and approval of grantor's legal counsel; and

(4) Be noncancellable without thirty (30) days' prior written notice thereof directed to grantor.

(c) The policy of Worker's Compensation Insurance shall:

(1) Have been previously approved as to substance and form by the California Insurance Commissioner;

(2) Cover all employees of grantee who in the course and scope of their employment are to conduct franchise operations;

(3) Provide for every benefit and payment presently or hereafter conferred by Division 4 of the California Labor Code upon an injured employee, including vocational rehabilitation and death benefits.

(d) The policy of property insurance shall provide fire insurance with extended coverage on franchise property used by grantee in the conduct of franchise operations in an amount adequate to enable grantee to resume franchise operations following the occurrence of any risk covered by this insurance.

(e) Grantee shall file with the city clerk prior to commencement of franchise operations either certified copies of these insurance policies or a certificate of insurance for each required policy executed by the company issuing the policy or by a broker authorized to issue such a certificate, certifying that the policy is in force and providing the following information with respect to said policy:

(1) Policy number;

(2) Date upon which the policy will become effective, and date upon which it will expire;

(3) Names of the named insureds and any additional insured required by this chapter or the franchise agreement;

(4) The subject of the insurance;

(5) Type of coverage provided by the insurance; and

(6) Amount or limit of coverage provided by the insurance.

(f) Conduct of franchise operations shall not commence until grantee has complied with the aforementioned provisions of this section.

(g) In the event grantee fails to maintain any of the abovedescribed policies in full force and effect, grantor shall, upon forty-eight (48) hours' notice to grantee, have the right to procure the required insurance and recover the cost thereof from grantee. Grantor shall also have the right to suspend the franchise during any period that grantee fails to maintain said policies in full force and effect.

(h) No more than once during any three-year period, grantor shall have the right to order grantee to increase amounts of insurance coverage provided. Grantor may make such order after conducting a hearing on the matter. Increases in insurance coverage shall be based upon evidence of prudent business practices of like enterprises involving the same or similar risks.

(Ord. No. 198, § 1, 10-9-91)

(a) Grantee shall at all times maintain:

(1) A record of all complaints received and interruptions or degradation of service experienced for the preceding two (2) years, provided that such complaints result in a service call.

(2) A full and complete set of plans, records, and "as-built" maps showing the location of the cable television system installed or in use in the city, exclusive of subscriber service drops and equipment provided in subscribers' homes.

(3) A record of service calls on a monthly basis, identifying the number, general nature, and disposition of such calls.

(b) Grantor may impose reasonable requests for additional information, records, and documents from time to time, provided that such requests reasonably relate to the scope of the city's rights under this chapter or under grantee's franchise agreement.

(c) At all reasonable times, grantee shall permit examination by any duly authorized representative of grantor, of all franchise property and facilities, together with any appurtenant property and facilities of grantee situated within or without the city, and all records relating to the franchise, provided that such records reasonably relate to the scope of the city's rights under this chapter or under grantee's franchise agreement.

(Ord. No. 198, § 1, 10-9-91)

A fee paid to the city is hereby established for the support of public, educational, and governmental access facilities and activities within the city. Unless a higher percentage is authorized by applicable state or federal law, this fee shall be one (1) percent of a grantee's gross annual receipts, as that term is defined above in section 6901, or in the grantee's franchise agreement, or in applicable provisions of state or federal law. This fee is also applicable to a state video franchise holder operating within the city, which shall pay to the city one (1) percent of its gross revenue, as defined in California Public Utilities Code Section 5860.

(Ord. No. 07-349, § 1, 12-12-2007)

(a) Franchise fee. A state video franchise holder operating in the city shall pay to the city a franchise fee that is equal to five (5) percent of the gross revenues of that state video franchise holder. The term "gross revenues" shall be defined as set forth in Public Utilities Code Section 5860.

(b) Audit authority. Not more than once annually, the city may examine and perform an audit of the business records of a holder of a state video franchise to ensure compliance with all applicable statutes and regulations related to the computation and payment of franchise fees.

(c) Customer service penalties under state video franchises.

(1) The holder of a state video franchise shall comply with all applicable state and federal customer service and protection standards pertaining to the provision of video service.

(2) The city shall monitor a state video franchise holder's compliance with state and federal customer service and protection standards. The city will provide to the state video franchise holder written notice of any material breaches of applicable customer service and protection standards, and will allow the state video franchise holder thirty (30) days from receipt of the notice to remedy the specified material breach. Material breaches not remedied within the thirty-day time period will be subject to the following monetary penalties to be imposed by the city in accordance with state law:

(i) For the first occurrence of a violation, a monetary penalty of five hundred dollars ($500.00) shall be imposed for each day the violation remains in effect, not to exceed one thousand five hundred dollars ($1,500.00) for each violation.

(ii) For a second violation of the same nature within twelve (12) months, a monetary penalty of one thousand dollars ($1,000.00) shall be imposed for each day the violation remains in effect, not to exceed three thousand dollars ($3,000) for each violation.

(iii) For a third or further violation of the same nature within twelve (12) months, a monetary penalty of two thousand five hundred dollars ($2,500.00) shall be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars ($7,500.00) for each violation.

(3) A state video franchise holder may appeal a monetary penalty within sixty (60) days after it is assessed by the city. After relevant evidence and testimony is received, and staff reports are submitted, the city council will vote to either uphold or vacate the monetary penalty. The city council's decision on the imposition of a monetary penalty shall be final.

(d) City response to state video franchise applications.

(1) Applicants for state video franchises within the boundaries of the city must concurrently provide to the city complete copies of any application or amendments to applications filed with the California Public Utilities Commission. One (1) complete copy must be provided to the city clerk.

(2) The city will provide any appropriate comments to the California Public Utilities Commission regarding an application or an amendment to an application for a state video franchise.

(e) PEG channel capacity. A state video franchise holder that uses the public rights-of-way shall designate sufficient capacity on its network to enable the carriage of at least three (3) public, educational, or governmental (PEG) access channels.

(1) PEG access channels shall be for the exclusive use of the city or its designees to provide public, educational, or governmental programming.

(2) Advertising, underwriting, or sponsorship recognition may be carried on the PEG access channels for the purpose of funding PEG-related activities.

(3) The PEG access channels shall be carried on the basic service tier.

(4) To the extent feasible, the PEG access channels shall not be separated numerically from other channels carried on the basic service tier, and the channel numbers for the PEG access channels shall be the same channel numbers used by the incumbent cable operator unless prohibited by federal law.

(5) After the initial designation of PEG access channel numbers, the channel numbers shall not be changed without the prior written consent of the city, unless the change is required by federal law.

(6) Each PEG access channel shall be capable of carrying a National Television System Committee (NTSC) television signal.

(f) Interconnection. Where technically feasible, a state video franchise holder and incumbent cable operator shall negotiate in good faith to interconnect their networks for the purpose of providing PEG access channel programming. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. State video franchise holders and incumbent cable operators shall provide interconnection of the PEG access channels on reasonable terms and conditions and may not withhold the interconnection. If a state video franchise holder and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement, the city may require the incumbent cable operator to allow the state video franchise holder to interconnect its network with the incumbent's network at a technically feasible point on the holder's network as identified by the holder. If no technically-feasible point for interconnection is available, the state video franchise holder shall make an interconnection available to the channel originator and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by the state video franchise holder requesting the interconnection unless otherwise agreed to by the parties.

(g) Emergency alert system and emergency overrides. A state video franchise holder must comply with the emergency alert system requirements of the Federal Communications Commission in order that emergency messages may be distributed over the holder's network. Provisions in city-issued franchises authorizing the city to provide local emergency notifications shall remain in effect, and shall apply to all state video franchise holders in the city for the duration of the city-issued franchise, or until the term of the franchise would have expired had it not been terminated pursuant to subdivision (m) of Section 5840 of the California Public Utilities Code, or until January 1, 2009, whichever is later.

(h) Encroachment permit applications and appeal procedures.

(1) As used in this paragraph (h), the term "encroachment permit" means any permit issued by the city relating to construction or operation of facilities in public rights-of-way by the holder of a state video franchise.

(2) The city shall either approve or deny an application from a holder of a state video franchise for an encroachment permit within sixty (60) days of receiving a completed application.

(3) If the city denies an application for an encroachment permit, the city shall, at the time of notifying the applicant of the denial, furnish to the applicant written notice of the reason for the denial. An applicant may appeal the city's denial of an encroachment permit application to the city council in accordance with the following procedures:

(i) No notice of appeal will be processed unless filed within ten (10) days after service of written notice of the decision from which the appeal is taken; provided that if written notice of the decision has not been served, the appellant may, within ten (10) days after being apprised of that decision, demand service of written notice and will have ten (10) days following that service in which to file the notice of appeal.

(ii) The notice of appeal must specify the specific decision from which the appeal is taken, the specific grounds for the appeal, and the relief or action requested from the city council.

(iii) The notice of appeal must be accompanied by such fee as may have been established by resolution of the city council.

(iv) Upon the timely filing of a notice of appeal in proper form, the city clerk will schedule the matter for hearing by the city council at a regular meeting, but not later than forty-five (45) days after receipt of the notice of appeal. The city clerk will cause the notice of hearing to be given to the appellant not less than ten (10) days prior to the hearing, unless that notice is waived in writing by the appellant. The city clerk will also cause a copy of the notice of appeal and the hearing to be transmitted to the city official or body whose decision is being appealed.

(v) At the time of consideration of the appeal by the city council, the appellant will be limited to a presentation on the specific grounds of appeal and related matters set forth in its notice of appeal. The appellant will have the burden of persuading the city council that the decision appealed from should be reversed or modified.

(vi) The city council may continue the hearing on the appeal from time to time as may be deemed necessary. The city council may, by resolution, affirm, reverse, or modify, in whole or in part, the decision appealed from and may take any action that might have been taken in the first instance by the city official or body from whose decision the appeal has been taken.

(vii) The decision of the city council will be deemed final and conclusive upon adoption of the resolution. A copy of the resolution adopted by the city council will be served upon the appellant by placement in the United States mail, postage prepaid, to the appellant's last known address.

(Ord. No. 07-349, § 2, 12-12-2007)