Duarte Municipal Code Art. II Grant of Franchise

The grantor may grant a franchise for all or any specific portion of grantor's territory to any person who offers to provide a system under and pursuant to this chapter.

(Ord. 646 § 3.1, 1988)

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. 646 § 3.2, 1988)

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. 646 § 3.3, 1988)

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 a common meaning or requirement. In the event this is not possible within reasonable limits, this chapter shall prevail.

(Ord. 646 § 3.4, 1988)

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. 646 § 3.5, 1988)

Neither this chapter nor a franchise granted under it relieves grantee of any requirement of grantor of general applicability or of any ordinance, rule, regulation, now or hereafter in effect, of general applicability including, but not limited to, the payment of all normal and inspection fees.

(Ord. 646 § 3.6, 1988)

Grantor may, at its option, grant one or more franchises to construct, operate, maintain, and reconstruct a cable communications 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. 646 § 3.7, 1988)

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

(Ord. 646 § 3.8, 1988)

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

(Ord. 646 § 3.9, 1988)

Any franchise granted shall be nonexclusive. The grantor specifically reserves the right to grant, at any time, such additional franchises as it deems appropriate.

(Ord. 646 § 3.10, 1988)

For the purposes of operating and maintaining a cable communications 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 plant in public rights-of-way, the grantee shall apply for and receive all necessary permits.

(Ord. 646 § 3.11, 1988)

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. 646 § 3.12, 1988)

Except for transfers between and among wholly-owned subsidiaries of grantee, or affiliates of grantee which are wholly-owned by the same parent, the franchise shall not sublet or assign, nor shall any of the rights or privileges herein granted or authorized be leased, assigned, sold or transferred, either in whole or in part, nor shall title thereto, either legal or equitable, pass to or vest in any person except grantee, either by act of grantee or by operation of law, without the prior written consent of grantor which shall not be unreasonably withheld. The granting of such consent shall not render unnecessary any subsequent consent. Nothing in this chapter shall be interpreted to limit the authority of grantee to grant to third parties one or more security interests in its property employed in the delivery of cable television services in order to secure borrowings or other obligations of grantee.

(Ord. 646 § 3.13, 1988)

A. The grantee shall promptly notify grantor of any proposed change in control of the grantee. Such change in control shall make the franchise null and void unless and until the grantor shall have consented thereto, which consent shall not be unreasonably withheld. The grantor may condition said transfer upon reasonable terms and conditions; provided, however, such reasonable terms and conditions shall not increase the proposed transferee's burden or expense of providing cable television services when compared to grantee's responsibilities under this chapter except as agreed to by the parties.

B. Except for transfers between and among wholly-owned subsidiaries of grantee, or affiliates of grantee which are wholly-owned by the same parent, for the purpose of this section, a change in control will exist upon sale or transfer of thirty percent or more of the grantee's stock ownership or other control or change in the management entity.

(Ord. 646 § 3.14, 1988)

The grantee, at least thirty days prior to any franchise transfer or change in control as heretofore described in Section 5.86.080, shall file with the grantor a notice of intent to enter into said transaction and then file a fully executed copy of said agreement within thirty days of approval of said transfer.

(Ord. 646 § 3.15, 1988)

Every such transfer or change in control as heretofore described in Section 5.86.080, whether voluntary or involuntary, shall be deemed void and of no effect unless grantee shall have filed said certified copy as is required and grantor has given approval.

(Ord. 646 § 3.16, 1988)

If the grantee shall violate this article, this franchise shall terminate subject (a) to the right of grantee to cure a violation of this section by rescinding any such change in control or transfer within fifteen days after written notice from grantor; and (b) subject to all applicable due process safeguards.

(Ord. 646 § 3.17, 1988)