La Mesa Municipal Code Ch. 26.03 Grant of Franchise

The grantor may grant a franchise to any person who offers to provide a system under and pursuant to this title.

(Ord. 2621 § 1 (part); March 23, 1993)

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; provided that the form, but not necessarily the substance or content, of all franchises shall be the same for all grantees.

(Ord. 2621 § 1 (part); March 23, 1993)

Consistent with applicable state and federal law, no provision of this ordinance 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. 2621 § 1 (part); March 23, 1993)

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 ordinance. Where a franchise and this ordinance conflict both shall be liberally interpreted to achieve a common meaning or requirement. In the event this is not possible within reasonable units, the franchise shall prevail.

(Ord. 2621 § 1 (part); March 23, 1993)

The award of a franchise authorizing the use of public property or public rights for private purposes shall be deemed consideration by the grant in the form of agreement to provide the system and services offered in accordance with the provisions hereof and of the franchise.

(Ord. 2621 § 1 (part); March 23, 1993)

Neither this ordinance nor a franchise granted under it relieves grantee of any requirement of grantor or of any ordinance, rule, regulations, or specification of grantor now or hereafter in effect, including, but not limited to, the payment of all normal permit and inspection fees so long as said ordinance, rules, regulations or specifications do not materially conflict with or alter the express terms of this ordinance and the franchise.

(Ord. 2621 § 1 (part); March 23, 1993)

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 ordinance and the franchise.

(Ord. 2621 § 1 (part); March 23, 1993)

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

(Ord. 2621 § 1 (part); March 23, 1993)

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. 2621 § 1 (part); March 23, 1993)

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. 2621 § 1 (part); March 23, 1993)

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. 2621 § 1 (part); March 23, 1993)

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. 2621 § 1 (part); March 23, 1993)

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 be sublet or assigned, nor shall any of the rights or privileges therein granted or authorized be leased, assigned, sold or transferred, either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person, except the grantee, either by act of the grantee or by operation of law, without the prior written consent of the grantor, which consent shall not be unreasonably withheld. The granting of such consent shall not render unnecessary any subsequent consent. The grantor shall approve, disapprove, or conditionally approve said request within a reasonable period of time, to be determined by grantor, upon the receipt of all requested information.

(Ord. 2621 § 1 (part); March 23, 1993)

(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.

(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-three percent or more of the grantee's stock ownership, the stock ownership of grantee's parent entity or other control even if there is no change in the management entity, and/or a change in identity in any entity which possesses some form of management contract.

(Ord. 2621 § 1 (part); March 23, 1993)

The grantee, at least ninety days prior to any franchise transfer or change in control as heretofore described, shall file with the grantor a notice of intent to enter into said transfer and then file a notice of closing within ninety days of closing.

(Ord. 2621 § 1 (part); March 23, 1993)

Every such transfer or change in control as heretofore described, whether voluntary or involuntary, shall be deemed void and of no effect unless grantor has given written approval by resolution of the city council.

(Ord. 2621 § 1 (part); March 23, 1993)

If the grantee shall violate this section, this franchise shall terminate subject to all applicable due process safeguards.

(Ord. 2621 § 1 (part); March 23, 1993)