Huron Municipal Code Ch. 5.08 Cable Television Franchising System

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

"Cable television system," "CATV" and "CTV" shall mean a system employing antennae, microwave, wires, wave guides, coaxial cables or other conductors, equipment or facilities designed, constructed or used for the following purposes:

1. Collecting and amplifying local and distant broadcast television or radio signals and distributing and transmitting such signals;

2. Transmitting original cablecast programming not received through television broadcast signals;

3. Transmitting television pictures, film and videotape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers; and

4. Transmitting and receiving all other signals, digital, voice and audiovisual.

The services set forth in this subsection and permitted by the provisions of this chapter to be performed shall be those performed by the grantee for subscribers in the operation of a cable television system franchised by the City and not otherwise.

"City manager" shall mean the city manager or his designee.

"Franchise" shall mean and include any authorization granted pursuant to the provisions of this chapter in terms of a franchise, privilege, permit, license or otherwise to construct, operate and maintain a cable television system within all or a specified area of the City. Any such authorization, in whatever form granted, shall not mean and include any license or permit required for the privilege of transacting and carrying on a business within the City in accordance with the business licensing provisions of the City.

"Grantee" shall mean the person, firm or corporation granted a franchise by the council pursuant to the provisions of this chapter and the lawful successor, transferee or assignee of such person, firm or corporation.

"Gross annual advertising receipts" shall mean any income, compensation or other consideration received by the grantee derived from any form of advertising.

"Gross annual basic subscriber receipts" shall mean any and all compensation and other consideration received directly or indirectly by the grantee from subscribers in payment of the regularly furnished service of the cable television system in the transmission of broadcast television, radio signals and original cablecast programming of the grantee.

"Gross annual lease receipts" shall mean any fees or income received by the grantee for the lease or rental, and compensation for any service in connection therewith, such as studio and equipment rental and production costs, of any channel permitted or designated by the Federal Communications Commission to be so leased or rented.

"Gross annual nonbasic service receipts" shall mean any and all compensation and other consideration received directly or indirectly by the grantee from subscribers or users in payment for the receipt of signals other than broadcast television, radio or original cablecast programming of the grantee, whether for pay television, facsimile transmission, or return or response communication, and whether or not transmitted encoded or processed to permit reception by only selected subscribers.

"Gross receipts," as used in the previous four subsections of this section, shall mean any and all compensation, in whatever form, grant, subsidy, exchange or otherwise, received directly or indirectly by a grantee, not including any taxes or services furnished by the grantee imposed directly on any subscriber or user by any city, county, state or other governmental unit and collected by the grantee for such entity.

"Property of grantee" shall mean all property owned, installed, or used within the City by a grantee in the conduct of a cable television system business under the authority of a franchise granted pursuant to the provisions of this chapter.

"Street" shall mean the surface, the air space above the surface, and the area below the surface of any public street, other public right-of-way, or public place, including public easements.

"Subscriber" or "user" shall mean any person or entity receiving for any purpose any service of the grantee's cable television system, including, but not limited to, the conventional cable television system service of the retransmission of television broadcasts, radio signals, the grantee's original cablecasting, and the local government, education and public access channels, and other services, such as the leasing of channels, data and facsimile transmissions, pay television, and police, fire and similar public service communications.

(Ord. 171 (part), 1980)

When and in the event the grantee of any franchise granted pursuant to the provisions of this chapter uses in his cable television system distribution channels furnished to the grantee by a telephone company pursuant to tariff or contract on file with a regulatory body having jurisdiction, and such grantee makes no use of the streets independent of such telephone company-furnished facilities, such grantee shall be required to comply with all of the provisions of this chapter as a licensee, and, in such event, whenever the term "grantee" is used in this chapter, it shall be deemed to mean and include "licensee."

(Ord. 171 (part), 1980)

A. Standards of operation.

1. Prior to receiving any applications for franchises, the council may adopt rules, regulations and standards governing the operation of cable television systems in the City. Such rules, regulations and standards shall apply to and govern the operations of the grantee of any franchise granted pursuant to the provisions of this chapter and shall be expressly declared a part of any franchise granted pursuant to the provisions of this chapter.

2. Rules, regulations and standards not adopted prior to receiving any application for a franchise shall be adopted by the council by resolution at the first regular meeting of the council next following such application. Such rules, regulations and standards shall become effective upon adoption and shall be applicable to any application for a franchise previously received.

3. The standards adopted shall govern the engineering, construction, installation, service and maintenance of all cable television systems in the City, including, but not limited to, standards governing carrier levels, signal-to-noise ratios, hum modulation, distortion levels, and channel interactions and inter-reactions.

4. Provided the same do not materially alter the content of the franchise without the consent of the grantee, the council may at any time adopt new rules, regulations or standards, or may amend, modify, delete or otherwise change its respective rules, regulations or standards previously adopted, in the following manner: The council shall pass its resolution of intention stating or describing the rules, regulations or standards to be adopted, amended, modified, deleted or otherwise changed and fixing and setting forth a day, hour and place certain when and where any persons having any interests therein or objections thereto may appear before the council and be heard. Such resolution shall direct the city clerk to post the resolution at least once within ten days after the passage thereof as required by the Huron Code and to mail a copy of the resolution to any grantee or applicant for a franchise not more than thirty (30) days, nor less than fifteen (15) days, prior to the time fixed for the hearing thereon.

At the time set for such hearing, or at any adjournment thereof, the council shall proceed to hear and pass upon such comments as may be presented. Thereafter, the council, by resolution, may adopt, amend, modify, delete or otherwise change its respective rules, regulations and standards. Such determination by the council shall be final and conclusive.

Any rule or regulation or standard as adopted, amended, modified, deleted or otherwise changed by the council shall become effective upon the tenth day following the adoption of such resolution unless a longer period shall be otherwise provided in such resolution.

5. Neither the council nor the grantee shall, as to services, service facilities, rules, regulations or in any other respect, make or grant any preference or advantage to any person nor subject any person to prejudice or disadvantage.

(Ord. 171 (part), 1980)

A nonexclusive franchise to install, construct, operate and maintain a cable television system on streets within all or a specific portion of the City may be granted by the council to any person, whether operating under an existing franchise or not, who or which offers to furnish and provide such system under and pursuant to the terms and provisions of this chapter.

No provision of this chapter may be deemed or construed so as to require the granting of a franchise when, in the opinion of the council, it is in the public interests to restrict the number of grantees to one or more.

(Ord. 171 (part), 1980)

The council may, by advertisement or any other means, solicit and call for applications for cable television system franchises, and the council may determine and fix any date upon or after which such applications shall be received by the City, the date before which the applications shall be received, or the date after which the applications shall not be received, and the council may make any other determinations and specify any other times, terms, conditions or limitations regarding the soliciting, calling for, making and receiving of such applications.

(Ord. 171 (part), 1980)

Each application for a franchise to construct, operate or maintain a cable television system in the City shall be filed with the city clerk and shall contain, or be accompanied by, 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, but not limited to, the following, and to whatever extent required by the City:

1. The names and residence and business addresses of all officers, directors and associates of the applicant,

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

3. The names and addresses of any parent or subsidiary of the applicant, namely, any other business entity owning or controlling the applicant in whole or in part or owned or controlled in whole or in part by the applicant, and a statement describing the nature of any such parent or subsidiary business entity, including, but not limited to, cable television systems owned or controlled by the applicant, its parent, and subsidiary, and the areas served thereby,

4. A detailed description of all previous experience of the applicant in providing cable television system service and in related or similar fields,

5. A detailed and complete financial statement of the applicant, prepared by a certified public accountant, for the fiscal year next preceding the date of the application, or a letter or other acceptable evidence in writing from a recognized lending institution or funding source, addressed to both the applicant and the council, setting forth the basis for a study performed by such lending institution or funding source, and a clear statement of its intent as a lending institution or funding source to provide whatever capital shall be required by the applicant to construct and operate the proposed system in the City, or a statement by the applicant to construct and operate the proposed system in the City, or a statement from a certified public accountant certifying that the applicant has available sufficient free, net and uncommitted cash resources to construct and operate the proposed system in the City, and

6. A statement identifying, by place and date, any other cable television franchise awarded to the applicant or its parent or subsidiary; the status of such franchise with respect to the completion thereof; the total cost of the completion of such system; and the amount of the resources of the applicant and its parent or subsidiary committed to the completion thereof;

C. A detailed description of the proposed plan of operation of the applicant which shall include, but not be limited to, 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 or schedule setting forth all of the proposed classifications of rates and charges to subscribers and all rates and charges as to each of such classifications, including installation charges and service charges,

3. A detailed, informative and referenced statement describing the actual equipment and operational standards proposed by the applicant. In no event shall such operational and performance standards be less than those set forth in Title 47, Subpart K (Sections 76.601 et seq.), Rules and Regulations, Federal Communications Commission, adopted February 2, 1972, as amended,

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

5. A detailed statement setting forth, in its entirety, any and all agreements and undertakings, whether formal, informal, written, oral or implied, existing or proposed to exist between the applicant and any person, firm or corporation which agreements and undertakings materially relate or pertain to, or depend upon, the application and the granting of the franchise;

D. A copy of any agreement covering the franchise area, if existing, between the applicant and any public utility subject to regulation by the Public Utilities Commission of the State providing for the use of any facilities of such public utility, including, but not limited to, poles, lines or conduits;

E. Any other details, statements, information or references pertinent to the subject matter of such application which shall be required or requested by the council or by any provision of any other laws of the City; and

F. An application fee of one thousand dollars ($1,000.00), which fee shall be in the form of cash, certified or cashier's check or money order, to pay the costs of studying, investigating and otherwise processing such application and which fee shall be in consideration thereof and not returnable or refundable in whole or in part, except to the extent that such fee exceeds the actual costs incurred by the City in studying, investigating and otherwise processing the application; provided, however, any applicant who shall deliver to the city clerk a written withdrawal of, or cancellation of, any application provided for in this section not later than the seventh day next following the day such application is received by the city clerk shall be entitled to have returned and refunded the application fee of one thousand dollars ($1,000.00), less any actual costs of expenses incurred by the City by reason of such application.

(Ord. 171 (part), 1980)

Upon the receipt of an application for a franchise to construct, operate or maintain a cable television system in the City, the council shall refer such application to the city manager who shall prepare a report and make his recommendations regarding such application. Such report and recommendation shall be completed and filed with the council within sixty (60) days.

(Ord. 171 (part), 1980)

A. Criteria. In making any determination as to any application to construct, operate or maintain a cable television system in the City, the council may give due consideration to the quality of the service proposed, the rates to the subscribers, the income to the City, the experience, character, background and financial responsibility of any applicant and its management and owners, the technical and performance quality of equipment, the willingness and ability of the applicant to meet the construction and physical requirements and to abide by policy conditions, franchise limitations, and requirements, and any other considerations deemed pertinent by the council for safeguarding the interests of the City and the public. The council, in its discretion, shall determine the award of any franchise on the basis of such considerations and without competitive bidding.

If the council shall determine to reject such application, such determination shall be final and conclusive, and such application shall be deemed rejected.

B. Further consideration—Hearings—Notices. If the council shall determine to further consider the application, the following shall be done:

1. The council shall decide and specify the terms and conditions of any franchise to be granted pursuant to the provisions of this chapter.

2. The council shall pass a resolution of intention to consider the granting of such a franchise, giving notice of the receipt of the application, describing the character of the franchise desired, stating the name of the proposed grantee, the character of the franchise, the terms and conditions upon which such franchise is proposed to be granted, that copies of the proposed franchise may be obtained at the office of the city clerk, fixing and setting forth a day, hour and place when and where any persons having any interest therein or objection to the granting of such franchise may file written protests and appear before the council and be heard, and directing the city clerk to publish such resolution of intention at least once within ten (10) days after the passage thereof in a newspaper of general circulation within the City.

C. Further Consideration—Hearings. At the time set for the hearing, or at any adjournment thereof, the council shall make one of the following determinations:

1. That such franchise be denied;

2. That such franchise be granted upon the terms and conditions specified in the resolution of intention to grant such franchise; or

3. That such franchise be granted but upon terms and conditions different from those specified in the resolution of intention to grant such franchise.

D. Denial. If the council shall determine that the franchise be denied, such determination shall be expressed by resolution and shall be final and conclusive.

E. Granting. If the council shall determine that the franchise be granted upon the terms and conditions specified in the resolution of intention to consider granting the franchise, such determination shall be expressed by ordinance granting a franchise to the applicant.

If the council shall determine upon granting a franchise upon terms and conditions different from those specified in the resolution of intention to consider granting the franchise, such determination shall be expressed by resolution adopted prior to granting a franchise by ordinance.

(Ord. 171 (part), 1980)

A. Filing. No franchise granted pursuant to the provisions of this chapter shall become effective for any purpose unless and until the written acceptance thereof shall have been filed with the city clerk. The written acceptance, which shall be in the form and substance approved by the city attorney, shall also be and operate as an acceptance of each and every term, condition and limitation set forth in this chapter or in such franchise or shall be otherwise specified as provided in this chapter. The written acceptance shall be filed by the grantee not later than 12:01 p.m. of the fortieth day next following the effective date of the ordinance granting such franchise.

B. Failure to File. In default of the filing of such written acceptance as required by the provisions of this section, the grantee shall be deemed to have rejected and repudiated the franchise. Thereafter, the acceptance of the grantee shall not be received nor filed by the city clerk. The grantee shall have no rights, remedies or redress in the premises unless and until the council, by resolution, shall determine that such acceptance be received or filed, and then upon such terms and conditions as the council may impose.

C. Rights of the City. In any case, and in any instance, all rights, remedies and redress in these premises which may or shall be available to the City shall at all times be available to the City, and shall be preserved and maintained and shall continuously exist in and to the City, and shall not be in any manner or means modified, abridged, altered, restricted or impaired by reason of any of these premises or otherwise.

D. Effect on Rights of the Grantee. Any franchise granted and accepted pursuant to the provisions of this chapter shall be in lieu of any and all other rights, privileges, powers, immunities and authorities owned, possessed, controlled or exercisable by the grantee of or pertaining to the construction, operation or maintenance of any cable television system in the City.

(Ord. 171 (part), 1980)

Franchises granted by the council pursuant to the provisions of this chapter shall be for a term of fifteen (15) years following the date of the written acceptance of such franchise by the grantee.

(Ord. 171 (part), 1980)

A. In consideration of the granting and exercise of a franchise to use the public streets for the operation of a cable television system, the grantee shall pay to the City, during the life of the franchise, the following amounts:

1. A percentage of the gross annual basic subscriber receipts of the grantee;

2. A percentage of the gross annual nonbasic service receipts of the grantee;

3. A percentage of the gross annual advertising receipts of the grantee; and

4. A percentage of the gross annual lease receipts of the grantee.

Such percentage payments shall be made in the manner, amounts, and at the times directed in the franchise or in a resolution adopted by the council fixing the franchise fees and adopting rules for service.

B. The City shall have the right to inspect the revenue records of the grantee under the franchise and the right to audit and recompute any and all amounts payable pursuant to the provisions of this chapter. The costs of such audits shall be borne by the grantee when the audits result in increasing, by more than two (2) percent, the annual payments of the grantee to the City.

C. 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 pursuant to the provisions of this chapter or for the performance of any other obligation pursuant to the provisions of this chapter.

(Ord. 171 (part), 1980)

Any franchise granted pursuant to the provisions of this chapter shall authorize and permit the grantee to engage in the business of operating and providing a cable television 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 street such poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments and other property as may be necessary and appurtenant to the cable television system; and, in addition, so to use, operate and provide similar facilities or properties rented or leased from other persons, firms, or corporations, including, but not limited to, any public utility or other grantee franchised or permitted to do business in the City.

(Ord. 171 (part), 1980)

A. Every franchise granted pursuant to the provisions of this chapter shall be nonexclusive.

B. No privilege or exemption shall be granted or conferred by any franchise granted pursuant to the provisions of this chapter except as specifically set forth in this chapter.

C. Any privilege claimed by the grantee in any street or other public property shall be subordinate to any prior lawful occupancy of the street or other public property under any franchise granted pursuant to the provisions of this chapter.

D. Any franchise granted pursuant to the provisions of this chapter shall be a privilege to be held in personal trust by the original grantee. Such franchise shall not 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, such as a bill of sale or similar document, a duly executed copy of which shall be filed in the office of the city clerk within thirty (30) days after any such transfer or assignment. Such consent of the council may not be unreasonably refused; provided, however, the proposed assignee shall show financial responsibility as determined by the council and shall agree to comply with all of the provisions of this chapter; and provided, further, no such consent shall be required for a transfer in trust, mortgage, or other hypothecation, in whole or in part, to secure an indebtedness, except that when such hypothecation shall exceed fifty (50) percent of the market value of the property used by the grantee in the conduct of the cable television system, the prior consent of the council shall be required for such a transfer. Such consent shall not be withheld unreasonably.

In the event the grantee is a corporation, the prior approval of the council, expressed by ordinance, shall be required where there is an actual change in control or where the ownership of more than fifty (50) percent of the voting stock of the grantee is acquired by a person or group of persons acting in concert, none of whom already own fifty (50) percent or more of the voting stock, singly or collectively. Any such acquisition occurring without the prior approval of the council shall constitute a failure to comply with the provisions of this chapter within the meaning of Section 5.08.140 of this chapter.

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

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

G. 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 granted pursuant to the provisions of this chapter, or because of the enforcement of the provisions of this chapter.

H. The grantee shall be subject to all the requirements of City laws, rules, regulations and specifications heretofore or hereafter enacted or established.

I. Any franchise granted pursuant to the provisions of this chapter shall not relieve the grantee of any obligations involved in obtaining pole or conduit space from any department of the City, from any utility company, or from others maintaining utilities in streets.

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

(Ord. 171 (part), 1980)

A. Authority. The City may terminate any franchise granted pursuant to the provisions of this chapter in the event of the wilful failure, refusal or neglect by the grantee to do or comply with any material requirement or limitation set forth in this chapter or any material rule or regulation of the council or the city manager validly adopted pursuant to the provisions of this chapter.

B. Notices to Comply. The city manager may make a written demand that the grantee do or comply with any such requirement, limitation, term, condition, rule or regulation. If the failure, refusal, or neglect of the grantee continues for a period of thirty (30) days following such written demand, the city manager may place his request for the termination of the franchise upon the next regular council meeting agenda. The city manager shall cause to be served upon such grantee at least ten (10) days prior to the date of such council meeting a written notice of his intent to request such termination and the time and place of the meeting, notice of which shall be posted by the city clerk at least once ten (10) days before such meeting.

C. Notices to Comply—Hearings. The council shall consider the request of the city manager and shall hear any persons interested therein and shall determine, in its discretion, whether or not any failure, refusal or neglect by the grantee was with just cause.

D. Compliance—Time Limits. If such failure, refusal or neglect by the grantee was with just cause, the council shall direct the grantee to comply within such time and manner and upon such terms and conditions as are reasonable. If the council shall determine such failure, refusal or neglect by the grantee was without just cause, the council may, by resolution, declare that the franchise of such grantee shall be terminated and forfeited unless there shall be compliance by the grantee within such period as the council may fix.

E. Termination—Effect. The termination and forfeiture of any franchise shall in no way affect any of the rights of the City under the franchise or any provision of law.

F. Termination—Compensation. In the event of any holding over after the expiration or other termination of any franchise granted pursuant to the provisions of this chapter without the prior consent of the City, expressed by resolution, the grantee shall pay to the City reasonable compensation and damages of not less than one hundred (100) percent of its gross revenue during such period.

(Ord. 171 (part), 1980)

A. Nothing contained in this chapter shall be deemed or construed to impair or affect in any way, to any extent, the right of the City to acquire the property of the grantee, either by purchase or through the exercise of the right of eminent domain, at a fair and just value, which shall not include any amount for the franchise itself or for any of the rights or privileges granted, and nothing contained in this chapter shall be construed to contract away or to modify or abridge, either for a term or in perpetuity, the City's right of eminent domain.

B. There is reserved to the City every right and power which is required to be reserved or provided by the provisions of this chapter or by any law of the City, and the grantee, by its acceptance of the franchise, agrees to be bound thereby and to comply with any action or requirements of the City in its exercise of such rights or powers heretofore or hereafter enacted or established.

C. There is reserved to the City the power to amend any provisions of this chapter so as to require additional or greater standards of construction, operation, maintenance or otherwise of the part of the grantee, to reflect technical and economic changes occurring during the franchise term, and to enable the City and the grantee to take advantage of new developments in the cable television industry so as to more effectively, efficiently and economically serve the public.

D. Neither the granting of any franchise pursuant to the provisions of this chapter nor any provision of this chapter shall constitute a waiver or bar to the exercise of any governmental right or power of the City.

E. The council may do all things which are necessary and convenient in the exercise of its jurisdiction pursuant to the provisions of this chapter and may determine any question of fact which may arise during the existence of any franchise granted pursuant to the provisions of this chapter. The city manager, with the approval of the city attorney, is authorized and empowered to adjust, settle or compromise any controversy or charge arising from the operations of any grantee pursuant to the provisions of this chapter, either on behalf of the City, the grantee, or any subscriber, in the best interests of the public. Either the grantee or any member of the public who may be dissatisfied with the decision of the city manager may appeal the matter to the council for hearing and determination. The council may accept, reject or modify the decision of the city manager, and the council may adjust, settle or compromise any controversy or cancel any charge arising from the operations of the grantee or from any provisions of this chapter.

F. The City shall have the right, free of charge, to make additional use, for any public or municipal purpose, whether governmental or proprietary, of any poles, conduits or other similar facilities erected, controlled or maintained exclusively by or for the grantee in any street provided such use by the City does not interfere with the use by the grantee.

(Ord. 171 (part), 1980)

A. Within thirty (30) days after the acceptance of any franchise, the grantee shall proceed with due diligence to obtain all the necessary permits and authorizations which are required in the conduct of its business, including, but not limited to, any utility joint use attachment agreement, microwave carrier license, and any other permit, license or authorization to be granted by duly constituted regulatory agencies having jurisdiction over the operation of cable television systems or their associated microwave transmission facilities.

In connection therewith, copies of all petitions, applications and communications submitted by the grantee to the Federal Communications Commission, Securities and Exchange Commission, or any other Federal or State regulatory commission or agency having jurisdiction in respect to any matters affecting the grantee's cable television operations, shall also be submitted simultaneously to the city manager.

B. The grantee shall commence the construction and installation of the cable television system within ninety (90) days after obtaining all the necessary permits, licenses and authorizations, including the right of access to poles and conduits.

C. Within one hundred eighty (180) days after the commencement of the construction and installation of the cable television system, the grantee shall proceed to render service to subscribers, and the completion of the installation and construction shall be pursued with reasonable diligence thereafter so that service to all the areas designated and scheduled on the map and plan of construction made part of the franchise shall be provided as set forth therein.

D. Failure on the part of the grantee to commence and pursue diligently each of the requirements of this section and to complete each of the matters set forth in this chapter shall be grounds for the termination of such franchise. The council, in its discretion, by resolution, may extend the time for the commencement and completion of the installation and construction for additional periods in the event the grantee, acting in good faith, experiences delays by reason of circumstances beyond its control.

By the acceptance of the franchise granted pursuant to the provisions of this chapter, the grantee shall agree that failure to comply with any of the time requirements set forth in subsections A, B and C of this section shall result in damage to the City, and that it is and shall be impracticable to determine the actual amount of such damage in the event of delay, and the grantee therefor agrees that, in addition to any other damage suffered by the City, it will pay to the City the sum of one hundred dollars ($100.00) per day for each and every day's delay beyond the time prescribed, plus authorized extensions thereof, for the completion of any of the acts required to be done by the provisions of this section.

(Ord. 171 (part), 1980)

A. The grantee shall utilize existing poles, conduits and other facilities whenever possible and shall not construct or install any new, different, or additional poles, conduits or other facilities whether on public property or on privately owned property unless and until first securing the written approval of the city manager.

Whenever the grantee shall not utilize existing poles, conduits and other facilities, or whenever existing conduits and other facilities shall be located beneath the surface of the streets, or whenever the City shall undertake a program designed to cause all conduits and other facilities to be located beneath the surface of the streets in any area or throughout the City, in the exercise of its police power or pursuant to the provisions of this chapter, upon reasonable notice to the grantee, any such conduits or other facilities of the grantee shall be constructed, installed, placed or replaced beneath the surface of the streets. Any construction, installation, placement, replacement or changes which may be so required shall be made at the expense of the grantee, whose costs shall be determined as in the case of public utilities.

B. In those areas of the City where the transmission or distribution facilities of the respective public utilities providing telephone, communication and electric services are underground or hereafter are placed underground, the grantee shall construct, operate and maintain all of its transmission and distribution facilities underground; provided, however, upon obtaining the written approval of the city manager, amplifiers in the grantee's transmission and distribution lines may be placed in appropriate housings upon the surface of the ground.

For the purpose of this subsection, "underground" shall include a partial underground system.

(Ord. 171 (part), 1980)

A. In the event the use of any part of the cable television system of the grantee is discontinued for any reason for a continuous period of thirty (30) days without prior written notice to and approval by the City, or any part of such system has been installed in any street or other area without complying with the requirements of the provisions of this chapter, or any franchise shall be terminated, cancelled, or expire, the grantee shall, at the option of the City, and at the expense of the grantee and at no expense to the City, and upon the demand of the City, promptly remove from any street or other area all the property of the grantee, and the grantee shall promptly restore the street or other area from which such property was removed to such condition as the city manager shall approve.

B. The council may, upon a written application therefor by the grantee, approve the abandonment of any such property in place by the grantee and under such terms and conditions as the council may prescribe. Upon the abandonment of any such property in place, the grantee shall cause to be executed, acknowledged and delivered to the City such instruments as the city attorney shall prescribe and approve transferring and conveying the ownership of such property to the City.

(Ord. 171 (part), 1980)

The grantee, at its expense, shall protect, support, temporarily disconnect, relocate or remove any property of the grantee when, in the opinion of the city manager, the same is required by reason of traffic conditions, public safety, street vacation, freeway or street construction, the change or establishment of street grades, or the installation of sewers, drains, water pipes, power lines, signal lines, transportation facilities, tracks or any other types of structures or improvements by governmental agencies, whether acting in a governmental or a proprietary capacity, or any other structure or public improvement, including, but not limited to, the movement of buildings, urban renewal and redevelopment, and any general program under which the City shall undertake to cause all such properties to be located beneath the surface of the ground. The grantee in all cases shall have the privilege, subject to the corresponding obligations, to abandon any property of the grantee in place as provided in this chapter. Nothing hereunder shall be deemed a taking of the property of the grantee, and the grantee shall be entitled to no surcharge by reason of anything hereunder.

(Ord. 171 (part), 1980)

Upon the failure, refusal or neglect of the grantee to cause any work or other act required by law or by the provisions of this chapter to be properly completed in, on, over or under any street within any time prescribed therefor, or upon notice given where no time is prescribed, the city manager may cause such work or other act to be completed in whole or in part and, upon so doing, shall submit to the grantee an itemized statement of the costs thereof. The grantee shall, within thirty (30) days after the receipt of such statement, pay to the City the entire amount thereof.

(Ord. 171 (part), 1980)

A. Performance of Law and Franchise Provisions. Upon being granted a franchise pursuant to the provisions of this chapter and upon the filing of the acceptance required by the provisions of Section 5.08.090, the grantee shall file with the city clerk, and shall thereafter, annually, during the entire term of such franchise, maintain in full force and effect, a corporate surety bond or other adequate surety agreement in such amount and kind as shall have been approved by the council.

The bond or agreement shall be so conditioned that in the event the grantee shall fail to comply with any one (1) or more of the provisions of this chapter or of such franchise, there shall be recoverable jointly and severally from the principal and surety any damages, losses, or costs suffered or incurred by the City as a result thereof, including the full amount of any compensation, indemnification or cost of the removal or abandonment of any property or other costs which may be in default, including attorney's fees and the costs of any action or proceeding up to the full principal amount of such bond. Such condition shall be a continuing obligation for the duration of such franchise and thereafter until the grantee shall have satisfied in full any and all obligations to the City which shall arise out of or pertain to such franchise. Neither the provisions of this section, nor any bond accepted by the City pursuant to the provisions of this section, nor any damages recovered by the City thereunder shall be construed to excuse faithful performance by the grantee or limit the liability of the grantee under any franchise granted pursuant to the provisions of this chapter or for damages, either to the full amount of the bond or otherwise.

B. Performance of Agreements and Undertakings with Subscribers. Upon being granted a franchise, and upon the filing of the acceptance required by the provisions of Section 5.08.090, the grantee shall file, annually, with the city clerk, and shall thereafter, during the entire term of such franchise, maintain in full force and effect, a corporate surety bond or other adequate surety agreement in such amount as shall have been approved by the council.

The bond or agreement shall be so conditioned that in the event the grantee shall fail to comply with any one (1) or more of the provisions of any agreement or undertaking made between the grantee and any subscriber, there shall be recoverable jointly and severally from the principal and surety any damages or costs suffered or incurred by any subscriber as a result thereof, including reasonable attorney's fees and the costs of any action or proceeding. Such condition shall be a continuing obligation for the duration of such franchise and thereafter until the grantee shall have satisfied in full any and all obligations to any subscriber which shall arise out of or pertain to any such agreement or undertaking.

(Ord. 171 (part), 1980)

The grantee shall indemnify and hold harmless the City and its officers, boards, commissions, agents and employees against and from any and all claims, demands, causes of actions, actions, suits, proceedings and damages, including, but not limited to, damages to City property, damages arising out of copyright infringements, and damages arising out of any failure by the grantee to secure consents from the owners, authorized distributors, or licensees of programs to be delivered by the grantee's cable television system, costs or liabilities, including costs or liabilities of the City with respect to its employees, of every kind and nature whatsoever, including, but not limited to, damages for injury or death or damages to persons or property, regardless of the merit of any of the same, and against all liability to others, and against any loss, cost and expense resulting or arising out of any of the same, including any attorney fees, accountant fees, expert witness or consultant fees, court costs, per diem expense, traveling and transportation expense, or other costs or expenses arising out of, or pertaining to, the exercise or the enjoyment of any franchise granted pursuant to the provisions of this chapter by the grantee or the granting thereof by the City.

(Ord. 171 (part), 1980)

The grantee shall, at the sole risk and expense of the grantee, upon the demand of the City made by and through the city attorney, appear in and defend any and all suits, actions or other legal proceedings, whether judicial, quasi-judicial, administrative, legislative or otherwise, brought or instituted or had by third persons or duly constituted authorities against or affecting the City and its officers, boards, commissions, agents or employees and arising out of or pertaining to the exercise or the enjoyment of such franchise or granting thereof to the City.

The grantee shall pay and satisfy, and shall cause to be paid and satisfied, any judgment, decree, order, directive or demand rendered, made or issued against the grantee or the City and its officers, boards, commissions, agents or employees in any of these premises, and such indemnity shall exist and continue without reference to or limitation by the amount of any bond, policy of insurance, deposit, undertaking or other assurance required by the provisions of this chapter or otherwise; provided, however, neither the grantee nor the City shall make or enter into any compromise or settlement of any claim, demand, cause of action, action, suit or other proceeding without first obtaining the written consent of the other.

(Ord. 171 (part), 1980)

Upon being granted a franchise pursuant to the provisions of this chapter, and upon the filing of the acceptance required by the provisions of Section 5.08.090, the grantee shall file with the city clerk and shall thereafter during the entire term of such franchise maintain in full force and effect, at its own cost and expense, a general comprehensive liability insurance policy in the amount of one million dollars ($1,000,000.00), together with a bodily injury liability insurance policy in an amount not less than five hundred thousand dollars ($500,000.00) for injuries, including accidental death, to any one person, and subject to the same limit for each person in an amount not less than two hundred fifty thousand dollars ($250,000.00) on account of any one (1) occurrence, and a property damage liability insurance policy in an amount not less than one hundred thousand dollars ($100,000.00) resulting from any one (1) occurrence. The policies required by the provisions of this section shall name the city as an additional insured in any of such policies. If such insurance is provided by a policy which also covers the grantee or any other entity or person, such policy shall contain the standard cross-liability endorsement.

(Ord. 171 (part), 1980)

A. Basic Services. The cable television system permitted to be installed and operated pursuant to the provisions of this chapter shall:

1. Be operationally capable of relaying to subscriber terminals those television and radio broadcast signals for the carriage of which the grantee is now or hereafter authorized by the Federal Communications Commission;

2. Be constructed with the potential of two (2) way digital signal transmission;

3. Distribute color television signals which it receives in color;

4. Provide at least one (1) channel, without charge, for the exclusive use of the City;

5. Provide at least one (1) channel each for those educational and public access uses now or hereafter required by the Federal Communications Commission for systems operating in the top one hundred (100) markets; and

6. Have a minimum capacity of twenty (20) channels, of which two (2) channels shall be served by microwave relay stations, or satellite.

B. Nonbasic Services. The cable television system permitted to be installed and operated pursuant to the provisions of this chapter may also engage in the business of:

1. Transmitting original cablecast programming not received through television broadcast signals;

2. Transmitting television pictures, film and videotape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers or subscribers; and

3. Transmitting and receiving all other digital, voice and audio-visual signals.

C. Subscriber Complaints. In addition to other service regulations adopted by the council, and excepting circumstances beyond the grantee's control, such as acts of God, riots and civil disturbances, and in providing the services set forth in subsections A and B of this section, the grantee shall:

1. Limit system failures to minimum time duration by locating and correcting malfunctioning promptly, but in no event longer than twenty-four (24) hours, after occurrence, irrespective of holidays or other nonbusiness hours;

2. Upon complaint by a subscriber, make a demonstration satisfactory to the city manager that a signal is being delivered which is of sufficient strength and quality to meet the standards set forth in the regulations of the Federal Communications Commission or in regulations hereafter adopted by the council;

3. Render efficient service, making repairs promptly and interrupting service only for good cause and for the shortest time possible. Planned interruptions, insofar as possible, shall be preceded by notice given to subscribers twenty-four (24) hours in advance and shall occur during the periods of minimum use of the system;

4. Maintain a toll free number or maintain an office in the City, which office shall be open during all the usual business hours, with its telephone listed in the directories of the telephone company serving the City, and be so operated that complaints and requests for repairs or adjustments may be received at any time, day or night, seven (7) days a week; and

5. Maintain a written record or log listing the dates of customer complaints, identifying the subscribers, and describing the nature of the complaint and when and what action was taken by the grantee in response thereto. Such record shall be kept at the grantee's local office for a period of five (5) years from the date when the system is first energized and shall be available for inspection during regular business hours, without further notice or demand, by the city manager.

D. Municipal Service.

1. With respect to the local government channel, the grantee shall, at the request of the city manager and upon City reimbursement of the grantee's actual cost, provide use of the grantee's studio, equipment and technical services for the production of live and videotape municipal programs, subject to the scheduling requirements of the grantee.

2. With respect to the basic television services, the grantee shall provide all subscriber services and a tie-in connection, without cost, when the system passes such facilities and as designated by the council, to:

a. Public schools and community colleges within the City; and

b. Buildings owned and controlled by the City and used for public purposes and not for residential use, fire and police stations excepted.

E. Compatibility and Connectibility. It is the desire of the City that all cable television systems franchised pursuant to the provisions of this chapter shall, insofar as financially and technically possible, be compatible one with another and with systems adjacent to the City.

(Ord. 171 (part), 1980)

In carrying out the construction, maintenance and operation of the cable television system, the grantee shall not discriminate against any employee or applicant for employment because of race, creed, color, sex or national origin.

The grantee shall take affirmative action to ensure that applicants for employment are employed, and that employees are treated during employment, without regard to their race, creed, color, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship.

The grantee shall post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination provision.

The grantee shall, in all solicitations or advertisements for employees placed by or on behalf of the grantee, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex or national origin.

The grantee shall incorporate the provisions of this section in all of its contracts for work relative to the construction, maintenance and operation of the cable television system, other than contracts for standard commercial supplies or raw materials, and shall require all of its contractors for such work to incorporate such requirements in all subcontracts for such work.

(Ord. 171 (part), 1980)

A. A franchise granted pursuant to the provisions of this chapter to provide service within the City shall authorize and permit the grantee to solicit, sell, distribute and make a charge to subscribers within the City for connections to the cable television system of the grantee and shall also authorize and permit the grantee to traverse any portion of the City in order to provide service outside the City.

B. A franchise, easement, license or other permit granted to anyone other than the grantee to traverse any portion of the City in order to provide service outside the City shall not authorize nor permit such person to solicit, sell, distribute or make any charge to subscribers within the City, nor to render any service or connect any subscriber within the City to the cable television service system of the grantee.

C. No franchise granted pursuant to the provisions of this chapter shall ever be given any value by any court or other authority, public or private, in any proceeding of any nature or character wherein or whereby the City shall be a party or affected therein or thereby.

D. The grantee shall be subject to all of the provisions of the other laws, rules, regulations and specifications of the City heretofore or hereafter adopted, including, but not limited to, those pertaining to works and activities in, on, over, under and about streets. Any privilege claimed under any franchise granted pursuant to the provisions of this chapter in any street or other public property shall be subordinate to any prior lawful occupancy of the street or other public property. The grantee shall also be subject to the provisions of the general laws of the State, or as hereafter amended, when applicable to the exercise of any privilege contained in any franchise granted pursuant to the provisions of this chapter, including, but not limited to, those pertaining to works and activities in and about State highways.

E. The grantee shall be prohibited from directly or indirectly doing any of the following:

1. Engaging in the business of selling at retail, leasing, renting, repairing or servicing television sets or radios;

2. Imposing a fee or charge for any service or repair to subscriber-owned receiving devices, except for the connection of its service or for the determination by the grantee of the quality of its signal to the recipients thereof;

3. Soliciting or referring, or causing or permitting the solicitation or referral, of any subscriber to persons engaged in any business prohibited by the provisions of this chapter to be engaged in by the grantee; and

4. Providing information concerning the viewing patterns of identifiable individual subscribers to any person, group or organization for any purpose.

F. If the Federal Communications Commission, or the Public Utilities Commission of the State, or any other federal or state body or agency shall now or hereafter exercise any paramount jurisdiction over the subject matter of any franchise granted pursuant to the provisions of this chapter, then, to the extent such jurisdiction shall preempt or preclude the exercise of like jurisdiction by the City, the jurisdiction of the City shall cease and no longer exist.

The preemption or preclusion of the exercise by the City or any of its police power shall not diminish, impair, alter or affect any contractual benefit to the City or the grantee nor any contractual obligation of the grantee under any franchise granted pursuant to the provisions of this chapter.

Any and all minimum standards governing the operation of the grantee and any and all minimum rates, ratios and charges set forth in this chapter or in any franchise granted pursuant to the provisions of this chapter, existing now and at any time in the future, including such time as any paramount jurisdiction shall preempt or preclude that of the City, and any and all rights, powers, privileges and authorities of the City to determine, establish or fix any of the same, are each and all declared by the City and by any grantee accepting any franchise granted pursuant to the provisions of this chapter to be contractual in nature and to be for the benefit of the City.

G. When not otherwise set forth in this chapter, all matters required by the provisions of this chapter to be filed with the City shall be filed with the city clerk.

H. No person, firm or corporation within the service area of the grantee, and where trunk lines are in place, shall be refused service; provided, however, the grantee shall not be required to provide service to any subscriber who does not pay the applicable connection fee or service charge.

I. Before providing cable television service to any subscriber, the grantee shall provide a written notice to the subscriber substantially as follows: "The subscriber is hereby notified that in providing cable television service the grantee is making use of public rights-of-way within the City of Coalinga and that the continued use of such rights-of-way is in no way guaranteed. In the event the continued use of such rights-of-way is denied to the grantee for any reason, the grantee will make every reasonable effort to provide service over alternate routes. By accepting cable television service, the subscriber agrees he will make no claim nor undertake any action against the City of Huron, or its officers or employees, if the service to be provided hereunder is interrupted or discontinued."

J. The form of the grantee's contract with the subscriber shall be subject to the approval of the City.

K. The grantee shall pay to the City a sum of money sufficient to reimburse the City for all publication expenses incurred by it in connection with the granting of a franchise pursuant to the provisions of this chapter. Such payment shall be made within thirty (30) days after the City furnishes the grantee with a written statement of such expenses.

(Ord. 171 (part), 1980)

A. It shall be unlawful for any person to construct, install or maintain within any public street in the City, within any other public property of the City, or within any privately owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the City any equipment or facility for distributing any television signal or radio signal through a cable television system unless a franchise authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this chapter and unless such franchise is in full force and effect.

B. It shall be unlawful for any person to make or use any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a franchised cable television system within the City for the purpose of enabling himself or others to receive or use any television signal, radio signal, picture, program or sound without payment to the owner of such system.

C. It shall be unlawful for any person, without the consent of the owner, to wilfully tamper with, remove or injure any cable, wire or equipment used for the distribution of television signals, radio signals, pictures, programs or sound.

(Ord. 171 (part), 1980)