Anderson Municipal Code Ch. 5.72 Community Antenna Television Franchise

For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meanings given herein:

A. "Community antenna television system" or "CATV" means coaxial cables, wave guides or other conductors and equipment for providing television service by cable or through its facilities as contemplated in this chapter. CATV shall not mean or include the transmission of any special program or event in the manner commonly known and referred to as closed circuit or pay television transmissions. Nothing in this paragraph shall preclude the right of the city to permit the franchise holder to transmit special programs or closed circuit as provided in this chapter.

B. "Council" means the present governing body of the city or any future board constituting the legislative body of the city.

C. "Franchise holder" means the person or corporation to whom or which a franchise under this chapter is granted by the city council and the lawful successor or assignee of such person or corporation.

D. "Gross annual receipts" means any and all compensation and other consideration in any form whatever and any contributing grant or subsidy received directly or indirectly from subscribers or users in payment for television signals received within the city, except the first fifteen dollars of installation fees charged to any individual residential subscriber.

Gross annual receipts shall not include any taxes on the services furnished by the franchise holder imposed directly on any user or subscriber by any city, state or other government unit and collected by the franchise holder for such governmental unit.

E. "Local television" means a television station duly licensed by the Federal Communications Commission and authorized to furnish free television service to an area within its scope of power.

F. "Street" means the surface of and the space above and below any public street, road, highway, freeway, lane, alley, court, sidewalk, parkway or drive now or hereafter existing as such within the city.

G. "Subscriber" means any person or entity receiving for any purpose the CATV service of the franchise holder as provided in this chapter.

(Prior code § 6A.2)

A. A nonexclusive franchise to construct, operate and maintain a community antenna television system in the city may be granted by the city council to any person offering to furnish and provide such system under and pursuant to the terms and provisions of this chapter.

B. No provision in this chapter may be construed to require the granting of a franchise when, in the opinion of the council, it is in the public interest to restrict the number of franchises to one or more.

(Prior code § 6A.1)

Any franchise granted pursuant to the provisions of this chapter shall authorize and permit the franchise holder to engage in the business of operating and providing a CATV system in the city and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain and retain in, on, over, under, upon, across and along any public street or highway such poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments and other property as may be necessary and appurtenant to the CATV system; and, in addition, so to use, operate and provide similar facilities or properties rented or leased from a public utility franchised or permitted to do business in the city.

(Prior code § 6A.3 (part))

No franchise or any renewal thereof granted by the city council under this chapter shall be for a term longer than twenty years following the date of acceptance of such franchise by the franchise holder or the renewal thereof. Any such franchise may be terminated prior to its date of expiration by the city council in the event the city council finds, after notice and hearing, that the franchise holder has failed to comply with any material provision of this chapter or has, by act or omission, violated any term or condition of any franchise or permit issued under this chapter, or the provisions of this chapter have become invalid or unenforceable and the council further finds that such provisions constitute a consideration material to the grant of such franchise; provided, however, that the franchise holder shall be given at least thirty days' notice of any proposed termination proceedings. If the franchise holder cures the alleged violation of any term or condition of the franchise during the notice period, the termination proceedings shall be cancelled.

(Prior code § 6A.3 (part))

Any franchise holder granted a franchise under this chapter shall pay to the city during the life of such franchise and at the times specified in Section 5.72.060 a sum equal to five percent of the monthly total gross receipts of the franchise holder, and such payment by the franchise holder to the city shall be in lieu of any occupation tax, license tax or similar levy and shall be paid quarterly.

(Ord. 518 § 1, 1987; prior code § 6A.4 (part))

A. The franchise holder shall file with the city within sixty days after the expiration of any calendar year during which such franchise is in force a financial statement prepared by a certified public accountant showing in detail the total annual gross receipts, as defined in Section 5.72.010, of the franchise holder, its successors or assigns during the preceding calendar year. It shall be the duty of the franchise holder to pay to the city, within fifteen days after the time for filing such statements, any unpaid balance for the calendar year covered by such statements. In any year or portion thereof during which payments under this section amount to less than one hundred dollars per month, the franchise holder agrees to pay the city the minimum amount of one hundred dollars per month.

B. The city shall have the right of inspection of the franchise holder's records showing its gross receipts.

(Prior code § 6A.4(part))

A. No privilege or exemption shall be granted or conferred by any franchise granted under this chapter except those specifically prescribed in this chapter.

B. Any privilege claimed under such franchise by the franchise holder in any street shall be subordinate to any prior lawful occupancy of the streets or other public property.

C. Any such franchise shall be a privilege to be held in personal trust by the original franchise holder. It cannot in any event be sold, transferred, leased, assigned or disposed of, in whole or in part, either by forced or involuntary sale or by voluntary sale, merger, consolidation or otherwise without prior written consent of the city expressed by resolution and then only under such conditions as may be therein prescribed; provided, however, that no such consent shall be required for any transfer in trust, mortgage or other hypothecation, as a whole, to secure an indebtedness. Such consent of the city may not be arbitrarily refused; provided, however, the proposed assignee must show financial responsibility and must agree to comply with the provisions of this chapter.

D. Time shall be of the essence to any franchise granted under this chapter. The franchise holder shall not be relieved of its obligation to comply promptly with any of the provisions of this chapter by any failure of the city to enforce prompt compliance.

E. Any right or power in or duty impressed upon any officer, employee, department or board of the city is subject to transfer by the city to any other officer, employee, department or board of the city.

F. The franchise holder shall have no recourse whatsoever against the city for any loss, cost, expense or damage arising out of any provision or requirement of this chapter or its enforcement.

G. The franchise holder is subject to all requirements of the city ordinances, rules, regulations and specifications of the city heretofore or hereafter enacted or established, including but not limited to those concerning street work, street excavations, use, removal and relocation of property within a street and other street work.

H. Any franchise granted under this chapter shall not relieve the franchise holder of any obligation involved in obtaining pole space from any department of the city, the utility companies or from others maintaining poles in streets.

(Prior code § 6A.5)

A. There is reserved to the city every right and power which is required to be herein reserved or provided by any ordinance of the city, and the franchise holder, by its acceptance of this 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 heretofore enacted.

B. In connection with the issuance of any franchise hereunder, the city council may impose reasonable restrictions, conditions and limitations as to the area or areas of the city to be served by the franchise holder and as to operating conditions.

(Prior code § 6A.6)

Installation of a CATV system shall be commenced within one hundred twenty days after any franchise is granted under the provisions of this chapter and extensions and service pursued with due diligence thereafter. Failure to so commence and diligently pursue to completion shall be grounds for termination of this franchise. The council may extend the time for beginning the installation for additional periods in the event the franchise holder, acting in good faith, experiences delays by reason of circumstances beyond his control.

(Prior code § 6A.7)

A. Any poles, wires, cable lines, conduits or other properties of the franchise holder to be constructed or installed in streets or public rights-of-way shall be constructed or installed only at such locations and in such manner as shall be approved prior thereto by the director of public works of the city acting in the exercise of his reasonable discretion. Upon receipt of a construction of installation request from the franchise holder, the director of public works shall reply within ten business days.

B. The franchise holder may install or erect any facilities or apparatus on public property or rights-of-way within the city upon obtaining prior written approval of the director of public works.

C. In those areas and portions of the city where either the transmission and distribution facilities of the public utility providing telephone service or those of the utility providing electric service are underground or hereafter may be placed underground, the franchise holder shall likewise construct, operate and maintain all of its transmission and distribution facilities underground. Amplifiers in the franchise holder's transmission and distribution lines may be in concrete boxes or vaults upon the surface of the ground.

D. Construction or installation of the franchise holder's cable lines or conduits in all other public places owned or controlled by the city shall be subject to approval of and regulation by the city council in advance.

E. The city shall not be liable to the franchise holder or to any subscribers of the franchise holder for any cessation of service by the franchise holder to any or all of its subscribers caused by the city's street work, street excavation, pole relocation or resulting from delay in the city's repair or reerection of poles or otherwise following damage thereto arising out of circumstances beyond the control of the city.

(Prior code § 6A.8)

When any portion of the CATV system is to be installed on public utility poles and facilities, certified copies of the agreements for such joint use of poles and facilities shall be filed with the city clerk. Regulations imposed upon the utility companies by the Public Utilities Commission shall apply to the franchise holder.

(Prior code § 6A.17)

Extension of underground distribution lines to residential units within a new single family or multi-family residential subdivision of five or more lots and in a new residential development consisting of five or more dwelling units in two or more buildings located on a single parcel of land will be performed by the subdivider or developer as follows:

The subdivider or developer of the subdivision or development will, at no cost to the franchise holder, perform all necessary trenching and backfilling for underground distribution and service laterals and provide for the installation of conduit, vaults and pedestals for said distribution lines and provide for the prewiring of structures to receive cable television service.

(Ord. 331 § 1, 1975: prior code § 6A.8.1)

A. In the event that the use of any part of the CATV system is discontinued for any reason for a continuous period of twelve months or in the event such system or property has been installed in any street or public place without complying with the requirements of its franchise or the franchise has been terminated, cancelled or has expired, the franchise holder shall promptly remove from the streets or public places all such property and poles of such system other than any which the director of public works may permit to be abandoned in place. In the event of any such removal, the franchise holder shall promptly restore the street or other area from which such property has been removed to a condition satisfactory to the director of public works.

B. Any property of the franchise holder to be abandoned in place shall be abandoned in such manner as the director of public works shall prescribe. Upon permanent abandonment of the property of the franchise holder in place, the franchise holder shall submit to the director of public works an instrument to be approved by the city attorney transferring to the city the ownership of such property.

(Prior code § 6A.9)

The franchise holder shall, at its expense, protect, support, temporarily disconnect, relocate in the same street, alley or public place or remove from the street, alley or public place any property of the franchise holder when required by the director of public works by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signal lines and tracks or any other type of structures or improvements by governmental agencies when acting in a governmental or proprietary capacity or any other structures or public improvements; provided, however, that the franchise holder shall in all such cases have the privileges and be subject to the obligations to abandon any property of the franchise holder in place, as provided in Section 5.72.120.

(Prior code § 6A.10)

Upon failure of the franchise holder to complete any work required by law or by the provisions of this chapter to be done in any street within the time prescribed and to the satisfaction of the director of public works, the director of public works may cause such work to be done, and the franchise holder shall pay to the city the cost thereof in the itemized amounts reported by the director of public works to the franchise holder within thirty days after receipt of such itemized report.

(Prior code § 6A.11)

The franchise holder shall, concurrently with the filing of and acceptance of award of any franchise granted under this chapter, file with the city clerk and at all times thereafter maintain in full force and effect for the first two years of the term of this franchise, at the franchise holder's sole expense, a corporate surety bond of a company approved by and in a form approved by the city attorney in the amount of fifty thousand dollars, renewable annually, and conditioned upon the faithful performance of the franchise holder and that, in the event the franchise holder fails to comply with any one or more of the provisions of this chapter, there shall be recoverable jointly and severally from the principal and surety of such bond any damages or loss suffered by the city as a result thereof, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the franchise holder as prescribed hereby which may be in default, plus a reasonable allowance for attorneys' fees and costs up to the full amount of the bond, such condition to be a continuing obligation for the duration of this franchise and thereafter until the franchise holder has liquidated all of its obligations with the city that may have arisen from the acceptance of this franchise by the franchise holder or from its exercise of any privilege granted by this chapter. The bond shall provide that thirty days' prior written notice of intention not to renew, cancellation or material change be given to the city. At the end of the first two years of the term of this franchise, the amount of the aforesaid corporate surety bond which the franchise holder shall maintain in full force and effect for the remainder of the term of the franchise shall be in the amount of twenty-five thousand dollars but shall correspond in all other particulars to the bond required during the first two years of the term as required hereinabove.

(Prior code § 6A.12(a))

Neither the provisions of Section 5.72.150, any bond accepted by the city pursuant thereto, nor any damages recovered by the city thereunder shall be construed to excuse faithful performance by the franchise holder or limit the liability of the franchise holder under this franchise or for damages, either to the full amount of the bond or otherwise.

(Prior code § 6A.12(b))

Before a community antenna television system franchise is issued or renewed, the applicant thereof shall first satisfy the insurance requirements set forth in Sections 3.60.030, 3.60.060 and 3.60.070 of this code. The liability coverage required therein shall also extend to members of the general public as well as to persons to whom services are being provided.

(Ord. 658 § 2, 1997: prior code § 6A.13)

The CATV system shall be installed and maintained in accordance with the highest and best accepted standards of the industry to the effect that subscribers shall receive the highest possible service. In determining the satisfactory extent of such standards the following shall apply:

A. The system shall be installed using all band equipment capable of passing the entire television and FM spectrum. Provided that it will result in no increase in subscribers' rates other than additional installation charges, the city is desirous that the franchise holder use one channel to transmit available San Francisco FM radio channels so that subscribers may have the election with proper installation to receive FM radio programs originating in the San Francisco Bay area.

B. The system, as installed, shall be capable of passing standard color TV signals without the introduction of noticeable effects on color fidelity and intelligence.

C. The system shall be capable of providing a signal level of two thousand microvolts at the input terminals of each of the TV receivers.

D. The system and all equipment shall be designed and rated for twenty-four-hour-per-day continuous operation.

E. The system signal-to-noise ratio shall be not less than forty-six decibels.

F. Hum modulation of the picture signal shall be less than five percent.

G. The system shall use components having VSWR of 1.4 to 1 or better. Methods of measuring the above standards, where necessary, will be established by the city council.

H. The CATV system shall be installed and maintained in accordance with the engineering report of the Television Allocations Study Organization (TASO). The master antenna to be installed for the CATV system shall be located at a point where the signal strength of the TV stations to be received shall not be less than five hundred microvolts per meter for low-band channels (2 through 6) and not less than eight hundred microvolts for high-band channels (7 through 13) for at least fifty percent of the time at a receiving antenna height of thirty feet above ground. Each CATV subscriber shall receive a minimum signal strength of two thousand microvolts as measured at the antenna terminals of the television set.

(Prior code § 6A.14)

Application for a franchise under this chapter shall be filed with the city clerk in a form approved by the city and shall contain the following information:

A. The name and address of the applicant;

B. A general description of applicant's proposed CATV operation, including a map of areas to be served;

C. A statement or schedule in a form approved by the city of proposed rates and charges to subscribers for installation and services and a copy of the proposed service agreement between the franchise holder and its subscribers shall accompany the application;

D. A copy of any contract or contracts, if existing, between the applicant and any public utility providing for use of the facilities of such public utility such as poles, lines or conduits;

E. A statement of the corporate organization of the applicant, including the names and addresses of its officers, directors and associates, and also including the names of subsidiary companies with a listing of other areas being served by CATV or similar systems;

F. A financial statement prepared by a certified public accountant as to the company's or corporation's financial ability to complete installation and operation of the CATV system.

(Prior code § 6A.16(a))

Upon consideration of application, the city council may grant a franchise for CATV to such applicant as may appear from such application to be in its opinion best qualified to render proper and efficient CATV service to television viewers and subscribers in the city. The council's decision in the selection will be final.

(Prior code § 6A.16(b))

Any franchise issued pursuant to this chapter shall include the following condition:

"The CATV system herein franchised shall be used and operated solely and exclusively for the purpose expressly authorized by ordinance of the City of Anderson and no other purpose whatsoever.

"The inclusion of the foregoing statement in any such franchise shall not be deemed to limit the authority of the city council to include any other reasonable condition, limitation or restriction which it may deem necessary to impose in connection with such license pursuant to the authority conferred by this chapter.

(Prior code § 6A.16(c))

A statement setting forth all agreements and understandings, whether written, oral or implied, existing between the applicant and any person with respect to the franchise and the proposed operations is required. If a franchise is granted to a person posing as a front or representative for another person and such information is not disclosed in the original application, such franchise shall be revoked automatically, and the council shall consider awarding the franchise to another qualified applicant.

(Prior code § 16.16(d))

Provided approval of the council is first obtained for the general type of additional service to be supplied, the franchise holder may use the local CATV system to provide a piped-in music source to commercial or residential subscribers or to supply motion pictures, transmission of which originates with the franchise holder, or to transmit a continuous weather guide picture, together with community events calendar, or a nationally-originated special events program such as a boxing match or other sports or cultural program so long as no additional charge is made to the existing subscribers. But the franchise holder shall not receive any compensation for any advertising transmitted over its system, nor shall it transmit any commercial advertising except that forming a part of and incidental to a television program broadcast by a TV station licensed by the F.C.C.

(Prior code § 6A.19)

The city shall have the right at any time during the life of the franchise granted under this chapter to acquire by purchase or condemnation for the use of the city itself all the property of the franchise holders placed under the franchises within the limits of public property at a fair and just value, which shall not include any amount for the license itself or of any of the rights and privileges granted, and the franchises shall thereupon terminate.

(Prior code § 6A.20)

A. All notices provided for in this chapter shall be prepaid registered mail addressed to the parties as follows: To the city, to the city clerk, City Hall, Anderson, California, with a copy to the city attorney, City Hall, Anderson, California; to the franchise holder, as provided by any franchise granted pursuant to the provisions of this chapter.

B. All matters provided in this chapter to be filed with the city shall be filed with the city clerk.

(Prior code § 6A.15(a))

Any franchise holder shall submit to the city the form of its service agreement between the franchise holder and its subscribers and shall also serve upon the city a full schedule of its proposed installation and service charges to be paid by subscribers before soliciting for subscribers within the city and shall serve upon the city any amendments or alterations in the service agreement or schedule of charges. The franchise holder, for one week following the filing of such schedule of charges or amendments thereto, shall publish the same daily in a newspaper of general circulation within the city. The rate schedule for any service agreement or increase thereto to the subscriber must have city approval.

(Prior code § 6A.15(b))

The franchise holder shall pay to the city a sum of money sufficient to reimburse it for all expenses incurred by it in connection with the granting of a franchise pursuant to the provisions of this chapter, such payment to be made within thirty days after the city furnishes such franchise holder with a written statement of such expenses.

(Prior code § 6A.15(d))

The rate schedule for any service agreement or increase thereto to subscribers must have written approval of the city council.

(Prior code § 6A.15(1))

In the event the Public Utilities Commission of the state or the Federal Communications Commission takes jurisdiction over the operations and rates of the franchise holder, then the authority of the city to approve rates and charges shall cease.

(Prior code § 6A.15(i))

Wherever CATV cables are installed adjacent to public or parochial schools, CATV services will be made available without charge to such schools; provided, however, the installation cost may be recovered by the franchise holder from the schools being so served.

(Prior code § 6A.15(n))

The franchise holder shall, prior to commencing operations, present to the city council satisfactory evidence of a working arrangement with all local television broadcasting stations primarily serving the Redding or Chico areas for the use of the franchised CATV system through means of switching all commercial announcements and items of such local stations when simultaneous broadcasts of network programs by outlying television stations and such local stations are being made; provided, however, in the event that the council finds and determines that an offer or proposal containing fair and reasonable terms and conditions for such working arrangements has been submitted by the franchise holder to any such local television broadcasting station or stations and that such offer or proposal has been unreasonably rejected by any station or stations, the council may waive the requirements for such evidence of such working arrangements.

(Prior code § 6A.15(h))

The CATV system operated by the franchise holder shall deliver adequate television signals from at least the following TV stations: KTVU, KRON, KPIX, KGO-TV, KRCR, KQED and KHSL. Changes in requirements may be made by resolution of the council. The signals of local TV stations (KRCR and KHSL) shall be carried and delivered without degradation of quality and "on channel". In other words, shall be transmitted to the subscriber in such fashion that the subscriber will receive the signals on channel 7 and channel 12 respectively or such other channels as such local stations may hereafter be assigned by the Federal Communications Commission. At such time as any local educational TV station commences telecasting operations which can be received through ordinary antennas within the area of the county, the franchise holder shall cease to deliver TV signals from KQED or any other nonlocal educational TV station and shall commence carrying over its cables all broadcasts of the local educational TV station. The signals of such local educational TV station shall be carried and delivered without degradation of quality.

(Prior code § 6A.15(j))

The CATV system shall be installed and maintained in accordance with the best accepted standards of the industry to the effect that the subscriber shall receive a minimum signal strength of two thousand microvolts per meter at his television set. The provisions of this section are a "material provision hereof."

(Prior code § 6A.15(c))

When it occurs that there is a duplication of programming by an outlying station broadcasting a program simultaneously being carried by a local TV serving the area of the county which is similar in all respects as to color, time, etc., then the signal of the outlying station shall be blocked out and only the local TV signal shall be distributed by the CATV system.

(Prior code § 6A.15(k))

In the delivery of programs, the franchise holder shall not delete the commercials of the program sponsor, nor shall he interrupt any programs or parts thereof and substitute commercials or advertisements for those of such program sponsor.

(Prior code § 6A.15(m))

A. The franchise holder shall not make any charge to any subscriber for the transmission of any television broadcast which is not received at the same time free of charge by the public generally from regularly licensed channels and broadcasting stations.

B. Nothing in a franchise granted under this chapter shall be construed as a license to distribute services commonly known as "Pay TV." No company, corporation or association may directly or indirectly install, maintain or operate on any television set a coin box or any other device or means for collection of money for individual programs.

C. Nothing in this chapter or in any franchise granted hereunder shall prevent the city from subsequently granting to a franchise holder hereunder or to any other person, company, corporation or association a franchise or license to distribute services commonly known as "Pay TV." It is the intent of this chapter that no rights to transmit or in any other way communicate "Pay TV" to persons or places within the city limits are to be granted to the holder of any franchise granted under the provisions of this chapter. It is also the intent of this chapter that no rights to transmit or in any other way communicate "subscription TV" as defined by subsection (b) of Section 35001 of the Revenue and Taxation Code of the state, as it read on October 31, 1963, to persons or places within the city limits are to be granted to the holder of any franchise granted under the provisions of this particular chapter.

D. The franchise holder may make a charge to subscribers for connection to its CATV system and a fixed monthly charge as filed and approved as provided in this chapter for transmission to them only of television programs received free by the public generally at the same time from regularly licensed television stations.

(Prior code § 6A.15(g))

The franchise holder shall not engage in the business of selling television or other receivers which make use of signals transmitted by its system, nor shall the franchise holder engage in the repair of such receivers or the sale of parts for the same.

(Prior code § 6A.15(f))

The franchise holder shall maintain a local office so that CATV maintenance service shall be promptly available to subscribers upon telephone request during all hours that the franchise holder is transmitting signals to subscribers.

(Prior code § 6A.15(e))

At all reasonable times the council may examine all records kept or maintained by the franchise holder or under its control which treat of the operations, affairs, property or transactions of the franchise holder within the city for the serving of subscribers within the city.

(Prior code § 6A.21)

No franchise issued under this chapter shall become effective until all the requirements of this chapter are fully met, including the filing with the city clerk of certificates of insurance required in Section 5.72.170.

(Prior code § 6A.18)