17-11 FRANCHISE APPLICATION AND ACCEPTANCE.

Each application for a franchise shall include (in addition to any other items required by the Town at that time), the following:

a. The name, address, and telephone number of the applicant;

• b. A detailed statement of the corporate or other business entity organization of the applicant including the following:

1. The names and business addresses of all officers and director of the applicant;

2. The names and business addresses of all officers, persons and entities having, controlling, or being entitled to have or control one (1%) percent or more of the ownership of applicant and the respective ownership share of each such person or entity;

3. The names and addresses of any parent or subsidiary of applicant, the names of any other business entity owning or controlling applicant in whole or in part, and a statement describing the nature of the parent or subsidiary business entity, including cable television systems owned or controlled by applicant, its parent and subsidiary and the areas served;

4. A detailed description of all previous experience of the applicant in providing cable television system service and in related or similar fields. For each other cable franchise currently or previously held the applicant shall set forth:

• (a) Inclusive dates of each franchise held;

• (b) Geographical location;

• (c) Population of franchise area;

• (d) Number of homes passed by the cable system;

• (e) Number of subscribers in each of the last five (5) years of the franchise;

• (f) Description of services offered, including:

• (1) Channel capacity of system;

• (2) Number of channels offered to subscribers;

• (3) Identification of stations and services offered on each tier of programming;

• (4) Most recent rates charged for each type of service offered;

• (5) Support offered to community service programming (as defined in this chapter) including channels allocated, facilities, equipment and funding.

5. A detailed and complete financial statement of the applicant, certified as correct by an officer of the applicant, for the three (3) fiscal years preceding the date of the application (or if applicant has been in operation less than a five (5) year period, a financial statement for the period of operation), and applicant’s detailed and complete financial projections for the five (5) year period beginning with the date upon which applicant begins operations, certified as the true and correct financial basis for applicant’s application;

6. A statement identifying by place and date every other cable television franchise awarded to the applicant, its parent or subsidiary, construction under which has not been completed as required by the franchise; the status of the franchise with respect to completion of construction; and the amount of applicant’s and its parent’s or subsidiary’s resources committed to the completion.

7. A description of any litigation taking place between applicant, its parent or subsidiaries, and any municipal, State or

Federal entity within the last ten (10) years, including in each such instance: the identity of the litigants, the date suit commenced; a description of the subject matter of the dispute and the relief sought by the litigant; the identity of the court hearing the dispute; and a description of any settlement or judgment that resulted.

8. A description of any municipal, Federal or State, judicial or administrative sanctions imposed, proposed or in force against applicant, its parent or subsidiaries at any time in the last ten (10) years.

c. A detailed description of the proposed plan of operation of the applicant which shall include the following:

1. A detailed map indicating all areas proposed to be served, and a proposed time schedule for the installation of all equipment necessary to become operational throughout the entire area to be served;

2. A statement of schedule setting forth all proposed classifications of rates and charges to be made against subscribers and all rates and charges as to each classification including installation charges and service charges;

3. A detailed, informative, and reference statement describing the actual equipment and operational standards proposed by the applicant. Operational performance standards may not be less than those specified by the FCC on the date this chapter takes effect;

4. A copy of the form of agreement, undertaking or other instrument proposed to be entered into between the applicant and each subscriber;

5. A detailed statement setting forth in its entirety each agreement and undertaking whether formal or informal, written, oral or implied, existing or proposed to exist between applicant and any person which materially relates or pertains to or depends upon the application and the granting of the franchise;

d. A copy of each agreement covering the franchise area which exists between the applicant and a public utility subject to regulation by the PUC providing for the use of facilities of the public utility;

e. Acceptable evidence of applicant’s ability to obtain the capital necessary to meet the commitments of its service proposal and the requirements of this chapter, including written commitments from any financial institution or other outside lending source. Town may also require a statement from a certified public accountant verifying that the operator has sufficient unencumbered resources to provide that portion of the capital, if any, that is to be financed by the operator’s own resources.

f. Any other detail, statement, information or reference pertinent to the subject matter of the application which is required or requested by Town.

(Ord. #23-83, §1; Ord. #96, §1E)

a. The applicant for a franchise shall pay to the Town as an application fee an amount equal to all costs (the “application cost”) actually incurred by the Town in: obtaining professional advice and assistance; examining its needs and interests and in formulating a policy which takes into account present and prospective developments in cable television technology; drafting and negotiating this chapter and franchises which will properly respond to those needs and interests and, at the same time, take into consideration FCC rules and regulations, economic and fiscal realities, cable technology and availability of present and prospective services.

b. The applicant shall pay two thousand five hundred ($2,500.00) dollars to the Town at the time and application if filed. This sum is not returnable. The amount payable under paragraph a. shall be reduced, for each person awarded a franchise by the two thousand five hundred ($2,500.00) dollars payment made under this subsection. The balance for each system shall be paid in annual installments until paid in full at the time of payment of the franchise fee specified in subsection 172.4.

(Ord. #23-83, §1)

a. Solicitation . The Town may solicit applications for cable television system franchises and may determine and fix the date upon which applications must be received by the Town. The Town may make any other determinations and specify any other times, terms, conditions or limitations respecting the soliciting, calling for, making and receiving of applications.

b. Report . Upon receipt of an application for a franchise, Town shall refer it to a designated representative who shall prepare a report and make a recommendation respecting the application to the Town within ninety (90) days after referral.

c. Criteria . In making a determination as to an application the Town may consider the quality of the service proposed, rates to subscribers, income to the Town, experience, character, back- ground, and financial responsibility of the applicant and its management and owners, technical and performance quality of equipment, willingness and ability to meet construction and physical requirements, and any other considerations considered pertinent by Town safeguarding the interest of the Town and the public. The Town may award a franchise on the basis of these considerations and without competitive bidding.

(Ord, #23-83, §1)

17-11.4 Procedure.

a. If after a public hearing the Town decides to reject an application, rejection shall be by resolution and is final and conclusive.

• b. If the Town decides to consider granting a franchise to an applicant it shall:

1. Determine tentative terms and conditions of the franchise;

2. Adopt resolution of intention to consider the grant of a franchise. The resolution shall give notice of receipt of the application, state the name(s) of the proposed operator(s), describe the character of the franchise desired, state conditions upon which the franchise may be obtained, set a time and place when and where interested persons may inspect the applications, and state a day, hour, and place when and where persons having an interest in or objection to the grant of the franchise may file written protests and appear before Town and be heard. The resolution shall be published at least once at least ten (10) days before the hearing date.

3. Conduct a hearing at the time specified and proceed to hear and consider all written and oral protests;

4. Make one (1) of the following determinations:

• (a) Deny the franchise;

• (b) Grant the franchise upon the terms and conditions specified in the Town’s resolution of intentions;

• (c) Grant the franchise upon other terms and conditions which the Council deems appropriate.

c. If Town denies the franchise, denial shall be expressed by resolution. If Town grants the franchise, the grant shall be expressed by ordinance granting a franchise to the applicant. The action of the Town is final and conclusive.

d. The operator, within thirty (30) days of receipt of written notification by the Town following franchise award (upon initial franchise award and any renewal thereof) shall reimburse Town for all expenses incurred under this chapter in making the franchise award or renewal beyond those defrayed by application fees. The Town shall furnish the operator a statement of such expenses with the notification.

(Ord. #23-83, §1)

This section applies to every person seeking a cable franchise in the Town, including a person presently operating a system in the Town under an existing license or franchise. (Ord. #23-83, §1)

a. Filing Acceptance; Deadline . A franchise becomes effective when the operator files written acceptance with the Town. Written acceptance shall be in the form and substance approved by the Town. Written acceptance operates as an acceptance of each and every term and condition and limitation contained in this chapter and in the award agreement.

Operator shall file written acceptance not later than 12:01 p.m. of the fifteenth day next following the effective date of the ordinance granting the franchise.

b. Failure to Accept . The operator’s failure to file written acceptance is a rejection of the franchise. Thereafter, the Town may not receive the operator’s acceptance. The operator has no right, remedy or redress unless the Town, by resolution, determines that late acceptance may be received and filed, and then upon such terms and conditions as the Town imposes.

c. City Rights . Every right and remedy which is available to the Town continuously exists in and to Town and may not be modified, abridged, altered, restricted or impaired.

d. In Lieu of Other Rights . A franchise granted and accepted is in lieu of every other right, privilege, power, immunity, and authority exercisable by the operator, pertaining to the construction, operation, or maintenance of a cable television system in the Town.

(Ord. #23-83, §1)