Azusa Municipal Code Art. II Grant of Franchise

The grantor may grant a franchise to provide cable service to any person who offers to provide a system under and pursuant to this chapter.

(Ord. No. 95-08, § 3.1, 4-17-95)

A franchise may, at grantor's sole option, take the form of an ordinance, license, permit, contract, agreement, resolution or any other form elected by grantor.

(Ord. No. 95-08, § 3.2, 4-17-95)

Consistent with applicable state and federal law, no provision of this chapter shall require the granting of a franchise when, in the opinion of the grantor, it is in the public interest not to do so.

(Ord. No. 95-08, § 3.3, 4-17-95)

The purpose of a franchise shall be to identify and authorize its specific grantee and to identify and specify those terms, conditions, definitions, itemizations, specifications and other particulars of the agreement between the grantor and grantee which it represents. In so doing, a franchise may clarify, extend and interpret the provisions of this chapter. Where a franchise and this chapter conflict both shall be liberally interpreted to achieve common meaning or requirement. In the event this is not possible within reasonable limits, the franchise shall prevail. However, no provision of this chapter shall be deemed to be contractually incorporated into any franchise granted hereunder.

(Ord. No. 95-08, § 3.4, 4-17-95)

The award of a franchise authorizing the use of public property or public rights for private purposes shall be deemed consideration by the grantee in the form of agreement to provide the system and services offered in accordance with the provisions hereof and of the franchise.

(Ord. No. 95-08, § 3.5, 4-17-95)

Neither this chapter nor a franchise granted under it relieves grantee of any requirement of grantor or of any ordinance, rule, regulation, or specification of grantor now or hereafter in effect, including, but not limited to, the payment of all normal permit and inspection fees so long as said ordinance, rules, regulations or specifications do not materially conflict with or alter the express terms of this chapter, as amended, if applicable, and the franchise.

(Ord. No. 95-08, § 3.6, 4-17-95)

Grantor may, at its option, grant one or more franchises to construct, operate, maintain, and reconstruct a system. Said franchises shall constitute both a privilege and an obligation to provide the system and services required by this chapter and the franchise.

(Ord. No. 95-08, § 3.7, 4-17-95)

No privilege shall be granted or conferred by a franchise except those specifically prescribed herein or in the franchise.

(Ord. No. 95-08, § 3.8, 4-17-95)

The term of any franchise, and all rights, privileges, obligations and restrictions pertaining thereto shall be specified in the franchise. The effective date of any franchise shall be as specified in the franchise.

(Ord. No. 95-08, § 3.9, 4-17-95)

For the purposes of operating and maintaining a system in the franchised area, a grantee may place and maintain within the public rights-of-way such property and equipment as are necessary and appurtenant to the operation of the cable communications system. Prior to construction or alteration of the plant in public rights-of-way, the grantee shall apply for, pay all applicable fees, and receive all necessary permits.

(Ord. No. 95-08, § 3.10, 4-17-95)

Any person or entity who provides a system or services as defined herein shall be deemed a grantee and shall not do so except in accordance with a franchise granted hereunder. If such grantee uses distribution channels furnished by a telephone company or other public utility, said grantee shall be required to comply with all of the provisions hereof as a "licensee" and the term "grantee" herein shall include "licensee" in its meaning.

(Ord. No. 95-08, § 3.11, 4-17-95)

(a) There shall be no assignment of a franchise, in whole or in part, or change in control or the composition of ownership of the grantee without the prior express written approval of the grantor.

(b) Any assignment or transfer without such prior written consent shall constitute a default of such franchise which will cause a franchise to terminate.

(c) At least 120 days before such a proposed assignment of the franchise is scheduled to become effective, the grantee shall petition in writing for the grantor's written consent for such a proposed assignments. It is specifically noted that the grantee shall submit to the council (concurrently with submission of its written petition) an FCC 394 Form (or successor form) together with (1) any other information or documentation required by the state or federal government (including the FCC), (2) the information referenced in subsections (g) and (h) of this section, (3) unedited and unredacted purchase or transfer documents with all schedules and exhibits thereto, and (4) information regarding the financial ability and stability of the proposed assignee with respect to being able to perform all obligations of the existing franchise.

(d) The council shall not unreasonably withhold its consent to such an assignment. However, in evaluating the petition for assignment, transfer, or sale, the council/franchising authority may, at its sole discretion, undertake a technical inspection and audit of the system to determine whether the system complies with all applicable technical and safety codes as well as complies with this chapter and franchise. Also, the technical inspection and audit is designed to determine the technical integrity and stability of the present system.

(e) Should the grantor determine (as a result of the technical inspection and audit) that the system does not comply with federal, state, or local standards, then the grantee shall be provided with an opportunity to correct or cure the area of noncompliance or operational deficiency. In the alternative, the grantor may work with both the current and proposed grantee to cure the area of noncompliance or operational deficiency.

(f) If the grantor has not previously supplied the grantor with certain operational reports and data, then the franchised grantee shall submit the following reports at the time it submits its FCC Form 394:

(1) FCC Form 395-A relating to equal employment opportunity, and fair contracting policies;

(2) FCC Form 320 concerning cumulative leakage index (CLI);

(3) Periodic revenue statements in the form and format referenced to in this chapter; and

(4) Preventive maintenance reports in the form and degree referenced to in this chapter; and

(5) Subscriber logs in the form and format referenced to in this chapter.

(g) At the time the grantee submits its written petition, it shall also submit a copy of the completed sales agreement, or a functionally equivalent instrument, between the grantee and proposed assignee or transferee or buyer, so that the grantor may discover the assumption or obligations by the grantee and proposed assignee or transferee or buyer with respect to the system, the acquisition price, and the potential impact of the transaction upon rates. The grantor may request additional information unless the disclosure of such information is expressly prohibited by law.

(h) Before an assignment is approved by the grantor, the proposed assignee, transferee, or buyer shall execute an affidavit, acknowledging that it has read, understood, and will abide by both this chapter and the applicable franchise agreement.

(i) In the event of any approved assignment the assignee shall assume all obligations and liabilities of the former grantee relating to the franchise, unless specifically relieved by federal or state law, or unless specifically relieved by the grantor at the time the assignment is approved.

(k) Should the grantor not approve a petition for consent, then the grantee may immediately submit another petition or an amended petition for consent. In such a situation, then the 120-day time-frame begins to run anew. In such a situation, the procedural and substantive provisions of both federal and local law must again be followed and met.

(Ord. No. 95-08, § 3.12, 4-17-95)

If grantor approves a transfer or sale as described in this article, grantee shall reimburse grantor for grantor's reasonable processing and review expenses in connection with a transfer of the franchise or of control of the franchise, including without limitation, cost of administrative review, financial, legal and technical evaluation of the proposed transferee, consultants (including technical and legal experts and all casts incurred by such experts), notice and publication costs and document preparation expenses. In addition, prior to any transfer, grantee shall reimburse grantor for all grantor's expenses in connection with evaluating and/or negotiating a renewal of grantee's franchise whether or not said renewal was ever finalized or granted. Grantor may send grantee an itemized description of such charges and grantee shall pay such amount within 20 days of the receipt of such description.

(Ord. No. 95-08, § 3.13, 4-17-95)

If the grantee shall violate any or all of section 22-32 of this article, the franchise shall terminate. The procedures contained in article XIV of this chapter shall not apply to a violation of this article and the termination of the franchise shall occur as a matter of law upon the occurrence of the violation.

(Ord. No. 95-08, § 3.14, 4-17-95)