Article 4 — FRANCHISE APPLICATIONS AND RENEWAL

Any person desiring an initial franchise for a cable system shall file an application with the city. A reasonable nonrefundable initial application fee established by the city shall accompany the initial franchise application to cover all validly documented reasonable costs associated with processing and reviewing the

application, including without limitation costs of administrative review, financial, legal and technical evaluation of the applicant, notice and publication requirements with respect to the consideration of the application and document preparation expenses. In the event such validly documented reasonable costs exceed the application fee, the selected applicant(s) shall pay the difference to the city within thirty days following receipt of an itemized statement of such costs.

(Ord. 570 §1(part), 2003).

An application for an initial franchise for a cable system shall contain, where applicable:

(1)

The names and addresses of persons authorized to act on behalf of the applicant with respect to the application;

(2)

The name and address of the applicant and identification of applicant's ownership and control, including the names and addresses of the ten largest holders of an ownership interest in the applicant and all persons in the applicant's direct ownership chain; the names and addresses of all persons owning ten percent or more in the applicant and in persons in the applicant's direct ownership chain; the persons controlling the applicant and persons in the applicant's direct ownership chain; and all of applicant's officers and directors and persons in the applicant's direct ownership chain;

(3)

A demonstration of the applicant's technical ability to construct and/or operate the proposed cable system, including identification of key personnel;

(4)

A demonstration of the applicant's legal qualifications to construct and/or operate the proposed cable system;

(5)

A statement prepared by an independent certified public accountant or independent financial institution regarding the applicant's financial ability to complete the construction and operation of its proposed cable system;

(6)

A description of the applicant's prior experience in cable system ownership, construction, and operation;

(7)

Identification of California cities and counties where the applicant or its principals own, or have an interest in, a cable franchise. If an applicant does not have a cable franchise in California, it will provide the

information for its operations in other states;

(8)

Identification of the area of the city to be served by the proposed cable system, including a description of the boundaries of the proposed service area;

(9)

A detailed description of the physical facilities proposed, including channel capacity, technical design, performance characteristics, headend and PEG access facilities;

(10)

A plan for constructing the proposed cable system, including estimated plant mileage and location; proposed construction schedule; a description, where appropriate, of how services will be converted from existing facilities to new facilities;

(11)

The proposed rate structure, including projected charges for each service tier, installation, converters and all other proposed equipment or services;

(12)

A demonstration of how the applicant will reasonably meet the community's future cable-related needs and interests, including descriptions of the capacity, facilities and support for public, educational, and governmental use of the cable system (including institutional networks);

(13)

Pro-forma financial projections for the proposed cable franchise term, including a statement of projected income and a schedule of planned capital additions, with all significant assumptions explained in notes or supporting schedules;

(14)

If the applicant proposes to provide cable service to an area already served by an existing franchisee, the ability of public rights-of-way and other property that would be used by the applicant to accommodate an additional system;

(15)

Any other information as may be reasonably necessary to demonstrate compliance with the requirements of applicable law; and

(16)

An affidavit or declaration of the applicant or its authorized officer certifying the truth and accuracy of the information in the application, acknowledging the enforceability of application commitments, and certifying

that the application meets all requirements of applicable law.

(Ord. 570 §1(part), 2003).

(a)

Upon receipt of any application for an initial franchise, the city administrator shall prepare a report and make recommendations respecting such application to the council.

(b)

A public hearing shall be set prior to any initial franchise grant, at a time and date approved by the council. Within sixty days after the close of the hearing, the council shall make a decision based upon the evidence received at the hearing as to whether or not the initial franchise(s) should be granted, and, if granted, subject to what conditions. The council may grant one or more franchises, or may decline to grant any franchise.

(Ord. 570 §1(part), 2003).

Franchise renewals shall be in accordance with applicable law. Grantor and grantee, by mutual consent, may enter into renewal negotiations at any time during the term of the franchise.

(Ord. 570 §1(part), 2003).