Buena Park Municipal Code Art. IV Franchise Terms and Conditions

A franchise granted by the city under the provisions of this chapter shall encompass the following purposes:

A. To engage in the business of providing cable service, and such other services as may be permitted by law, which grantee chooses to provide to subscribers within the designated service area;

B. To erect, install, construct, repair, rebuild, reconstruct, replace, maintain and retain, cable lines, related electronic equipment, supporting structures, appurtenances, and other property in connection with the operation of the cable system in, on, over, under, upon, along and across streets or other public places within the designated service area;

C. To maintain and operate such franchise properties for the origination, reception, transmission, amplification and distribution of television and radio signals and for the delivery of cable services, and such other services as may be permitted by law;

D. To set forth the obligations of a grantee under the franchise.

(Ord. 1354 § 6.1, 1997)

It is unlawful for any person to construct, install or operate a cable system in the city within any public street without a properly granted franchise awarded pursuant to the provisions of this chapter.

(Ord. 1354 § 6.2, 1997)

A. A franchise granted hereunder shall be for a term established in the franchise agreement, commencing on the grantor's adoption of an ordinance or resolution authorizing the franchise.

B. A franchise granted hereunder may be renewed upon application by the grantee pursuant to the provisions of applicable state and federal law and of this chapter.

(Ord. 1354 § 6.3, 1997)

Any franchise shall be valid within all the territorial limits of the city, and within any area added to the city during the term of the franchise, unless otherwise specified in the franchise granting ordinance or agreement.

(Ord. 1354 § 6.4, 1997)

This chapter shall be construed in a manner consistent with all applicable federal and state laws, and shall apply to all franchises granted or renewed after the effective date of this chapter* to the extent permitted by applicable law.

(Ord. 1354 § 6.5, 1997)[1]

[1]

Editor's Note: Enacted by Ordinance 1354, Chapter 520 is effective on December 3, 1997.

A. Grantee shall not sell, transfer, lease, assign, sublet or dispose of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, the franchise or any of the rights or privileges therein granted, without the prior consent of the council and then only upon such lawful and reasonable terms and conditions as may be prescribed by the council, which consent shall not be unreasonably denied or delayed. Any attempt to sell, transfer, lease, assign or otherwise dispose of the franchise without the consent of the council shall be null and void. The granting of a security interest in any grantee assets, or any mortgage or other hypothecation, shall not be considered a transfer for the purposes of this section.

B. The requirements of subsection A of this section shall apply to any change in control of grantee. The word "control" as used in this chapter is not limited to major stockholders or partnership interests, but includes actual working control in whatever manner exercised. In the event that grantee is a corporation, prior authorization of the council shall be required where ownership or control of more than twenty percent of the voting stock of grantee is acquired by a person or group of persons acting in concert, none of whom own or control the voting stock of the grantee as of the effective date of the franchise, singularly or collectively.

C. Grantee shall notify grantor in writing of any foreclosure or any other judicial sale of all or a substantial part of the franchise property of the grantee or upon the termination of any lease or interest covering all or a substantial part of such franchise property. Such notification shall be considered by grantor as notice that a change in control of ownership of the franchise has taken place and the provisions under this section governing the consent of grantor to such change in control of ownership shall apply.

D. For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, grantor may inquire into the qualifications of the prospective transferee or controlling party, and grantee shall assist grantor in such inquiry. In seeking grantor's consent to any change of ownership or control, grantee shall have the responsibility of insuring that the grantee and/or the proposed transferee complete an application in accordance with Federal Communications Commission Form 394 or equivalent. An application shall be submitted to grantor not less than one hundred twenty days prior to the proposed date of transfer. The transferee shall be required to establish that it possesses the qualifications and financial and technical capability to operate and maintain the system and comply with all franchise requirements for the remainder of the term of the franchise. If the legal, financial and technical qualifications of the applicant are satisfactory, the grantor shall consent to the transfer of the franchise. The consent of the grantor to such transfer shall not be unreasonably denied or delayed.

E. Any financial institution having a pledge of the grantee or its assets for the advancement of money for the construction and/or operation of the franchise shall have the right to notify the grantor that it or its designee satisfactory to the grantor shall take control of and operate the cable system, in the event of a grantee default of its financial obligations. Further, such financial institution shall also submit a plan for such operation within ninety days of assuming such control that will insure continued service and compliance with all franchise requirements during the term the financial institution exercises control over the system. The financial institution shall not exercise control over the system for a period exceeding one year unless extended by the grantor in its discretion and during such period of time it shall have the right to petition the grantor to transfer the franchise to another grantee. If within such one-year period grantee is capable of resuming its financial obligations, grantee shall have the right to resume control and operation of the cable system.

F. Upon transfer, grantee shall reimburse grantor for grantor's reasonable processing and review expenses in connection with the transfer of the franchise or of control of the franchise, including without limitation, costs of administrative review, financial, legal and technical evaluation of the proposed transferee, consultants (including technical and legal experts and all costs incurred by such experts), notice and publication costs and document preparation expenses. Any such reimbursement shall not be charged against any franchise fee due to grantor during the term of the franchise.

(Ord. 1354 § 6.6, 1997)

A. Grantee shall design, construct and maintain the cable system to have the capability to pass every dwelling unit in the city, subject to any service area line extension requirements of the franchise agreement.

B. After service has been established by activating trunk and/or distribution cables for any service area, grantee shall provide service to any requesting subscriber within that service area within thirty days from the date of request, provided that the grantee is able to secure all public rights of-way necessary to extend service to such subscriber within such thirty-day period on reasonable terms and conditions.

(Ord. 1354 § 6.7, 1997)

Any franchise granted shall be nonexclusive. The grantor specifically reserves the right to grant, at any time, such additional franchises for a cable system or any component thereof, as it deems appropriate, subject to applicable state and federal law, provided that if the grantor grants an additional franchise on terms more favorable to the second grantee (whether by the grant of greater benefits or the imposition of lesser obligations), or if another entity utilizing the public rights-of-way offers service competitive with grantee, then the grantor and the initial grantee shall renegotiate in good faith the initial franchise to achieve competitively neutral and nondiscriminatory treatment.

(Ord. 1354 § 6.8, 1997)

A. Grantor may grant any number of franchises subject to applicable state or federal law. Grantor may limit the number of franchises granted, based upon, but not necessarily limited to, the requirements of applicable law and specific local considerations, such as:

1. The capacity of the public rights-of-way to accommodate multiple cables in addition to the cables, conduits and pipes of the utility systems, such as electrical power, telephone, gas and sewerage;

2. The benefits that may accrue to cable subscribers as a result of cable system competition, such as lower rates and improved service;

3. The disadvantages that may result from cable system competition, such as the requirement for multiple pedestals on residents' property, and the disruption arising from numerous excavations of the public rights-of-way.

B. Developers of new residential housing with underground utilities shall provide conduit to accommodate cables for at least two cable systems and dedicate the use of such conduit to the city.

C. Grantor may require that any new grantee be responsible for its own underground trenching outside the public rights-of-way and the costs associated therewith, if, in grantor's opinion, the public rights-of-way in any particular area cannot feasibly and reasonably accommodate additional cables.

(Ord. 1354 § 6.9, 1997)