Coronado Municipal Code Art. II Franchises

When and in the event that the grantee of any franchise granted hereunder constructs, operates, and maintains a CATV system exclusively through telephone company facilities constructed, operated and maintained pursuant to a State granted telephone franchise and oRers satisfactory proof that in no event during the life of such franchise shall the grantee make any use of the streets independently of such telephone company facilities, the grantee shall be required to comply with all of the provisions hereof as a “licensee” and in such event whenever the term “grantee” is used herein it shall be deemed to mean and include “licensee.”

A noninclusive franchise to construct, operate and maintain a CATV system within all or any portion of the City may be granted by the Council to any person, Nrm or corporation, whether operating under an existing franchise or not, who or which oRers to furnish and provide such system under and pursuant to the terms and provisions of this title. No provision of this title may be deemed or construed as 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 grantees to one or more.

Any franchise granted pursuant to the provisions of this title shall authorize and permit the grantee 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, such poles, wires, cable, conductors, ducts, conduits, vaults, manholes, ampliNers, 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 other persons, Nrms, or corporations, including but not limited to any public utility or other grantee franchised or permitted to do business in the City.

The grantee may make a charge to subscribers for installation or connection to its CATV system and a Nxed monthly charge as Nled and approved as herein provided. No increase in the rates and charges to subscribers as set forth in the schedule Nled and approved with grantee’s application may be made without the prior approval of the Council expressed by resolution.

No franchise granted by the City Council under this chapter shall be for a term longer than 20 years following the date of acceptance of such franchise by the grantee or the renewal thereof. Any such franchise granted hereunder may be terminated prior to its date of expiration by the Council in the event that the Council shall have found, after 30 days’ notice of any proposed termination and public hearing; that:

A. The grantee has failed to comply with any provision of this title, or has, by act or omission, violated any term or condition of any franchise or permit issued hereunder; or

B. Any provision of this title has become invalid or unenforceable and the City Council further Nnds that such provisions constitutes a consideration material to the grant of the franchise; or

• C. The City acquires the CATV system property of the grantee;

D. Notwithstanding any provision of this section to the contrary, a franchise granted hereunder shall not be terminated because of any act or omission of the grantee required by any valid rule, regulation, order or policy of the Federal Communications Commission.

Any grantee granted a franchise under this title shall pay to the City, during the life of such franchise, a sum equal to Nve percent or $1,200, whichever is greater, of the gross annual receipts of the grantee. Such payment by the grantee to the City shall be made annually, or as otherwise provided in the grantees’ franchise, by delivery of the same to the Director of Administrative Services.

The grantee shall Nle with the City, within 30 days after the expiration of any calendar year or portion thereof during which such franchise is in force, a Nnancial statement prepared by a certiNed public accountant, or person otherwise satisfactory to the Council, showing in detail the gross annual receipts, as deNned herein, of grantee during the preceding calendar year or portion thereof. It shall be the duty of the grantee to pay to the City, within 15 days after the time for Nling such statements, the sum hereinabove prescribed or any unpaid balance thereof for the calendar year or portion thereof by such statements.

In any year, or portion thereof, following the Nrst full year service has been provided and during which payments under this section amount to less than $1,200 per year, grantee shall pay the City, as a minimum, an amount equal to $1,200 per year.

The City shall have the right to inspect the grantee’s records showing the gross receipts from which its franchise payments are computed and the right of audit and recomputation of any and all amounts paid under this title. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable under this title or for the performance of any other obligation hereunder.

In the event of any holding over after expiration or other termination of any franchise granted hereunder, without the consent of the City, the grantee shall pay to the City reasonable compensation and damages of not less than 100 percent of its total gross proNts during the period.

Any franchise granted under this chapter shall be nonexclusive.

No privilege or exemption shall be granted or conferred by any franchise granted under this title except those speciNcally prescribed herein.

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

Any such franchise shall be a privilege to be held in personal trust by the original grantee. 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 the prior consent of the Council expressed by resolution, and then only under such conditions as may therein be prescribed. Any such transfer or assignment shall be made only by an instrument in writing, a duly executed copy of which shall be Nled in the OPce of the City Clerk within 30 days after any such transfer or assignment. The consent of the City Council may not be arbitrarily refused; provided, however, the proposed assignee must show Nnancial responsibility and must agree to comply with all provisions of this chapter; and provided, further, that no such consent shall be required for a transfer in trust, mortgage or other hypothecation as a whole to secure an indebtedness.

Time shall be of the essence of any such franchise granted hereunder. The grantee shall not be relieved of his obligation to comply promptly with any of the provisions of this title or by any failure of the City to enforce prompt compliance.

Any right or power in, or duty imposed upon, any oPcer, employee, department, or board of the City shall be subject to transfer by the City to any other oPcer, employee, department, or board of the City.

The grantee 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 of any franchise issued hereunder or because of its enforcement.

The grantee shall be subject to all requirements of this code or any rules, regulations and speciNcations heretofore or hereafter enacted or established.

Any such franchise granted shall not relieve the grantee of any obligation involved in obtaining pole space from any utility company or from others maintaining poles in streets.

Any franchise granted hereunder shall be in lieu of any and all other rights, privileges, powers, immunities, and authorities owned, possessed, controlled, or exercisable by grantee, or any successor to any interest of grantee, of or pertaining to the construction, operation, or maintenance of any CATV system in the City; and the acceptance of any franchise hereunder shall operate, as between grantee and the City, as an abandonment of any and all of such rights, privileges, powers, immunities, and authorities within the City, to the eRect that, as between grantee and the City, any and all construction, operation and maintenance by any grantee of any CATV system in the City shall be, and shall be deemed and construed in all instances and respects to be, under and pursuant to the franchise, and not under or pursuant to any other right, privilege, power, immunity or authority whatsoever.