Pacifica Municipal Code Art. 4 Procedure for Obtaining Franchises

(a) Each application for a franchise to construct, operate, or maintain any cable television system in the City shall be filed with the City Clerk and shall contain or be accompanied by the following:

(1) The name, address, and telephone number of the applicant:

(2) The exact boundaries of the area within the City for which the franchise is sought, such area being referred to in this chapter as the "franchise area"; and

(3) 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;

(i) The names, residences, and business addresses of all officers, directors, and associates of the applicant;

(ii) The names, residences, and business addresses of all officers, persons, and entities having, controlling, or being entitled to have or control five (5%) percent or more of the ownership of the applicant and the respective ownership share of each such person or entity;

(iii) 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, and its parent and subsidiary, and the area served thereby;

(iv) A detailed description of all previous experience of the applicant in providing cable television system services in related or similar fields;

(v) A detailed and complete financial statement of the applicant, prepared by a certified public accountant, for the fiscal year next preceding the date of such 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 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

(vi) 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 franchises with respect to the completion thereof; the total cost of completion of such systems; and the amount of the applicant's, and its parent's or subsidiary's, resources committed to the completion thereof.

(b) Each such application for a franchise shall further provide 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 franchise areas proposed to be served and a proposed time schedule for the installation of all equipment necessary to become operational throughout each entire franchise area to be served;

(2) A statement or schedule setting forth all proposed classifications of rates and charges to be made against 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, operational standards, channel capacity, and services proposed by the applicant. In no event shall such operational and performance standards be less than those contained in the Rules and Regulations of the Federal Communications Commission;

(4) A copy of the form of any agreement, undertaking, or instrument proposed to be entered into between the applicant and any subscriber;

(5) A detailed statement setting forth in its entirety any and all agreements and undertakings, whether formal or 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, including any agreement with any person, firm, or corporation relating to public, educational, or governmental channel administration or use; and

(6) A detailed statement describing the proposed designation and use of channel capacity for public, educational, and governmental use, including, but not limited to, proposals for training, facilities, equipment, and related services.

(c) 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 facility of the public utility, including, but not limited to, poles, lines, or conduits, shall be submitted.

(d) 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 law of the city shall be submitted.

(e) An application fee in the sum of Ten Thousand and no/100ths ($10,000.00) Dollars, which 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 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 shall accompany the application. In the event such costs exceed the amount of the application fee, the City shall be reimbursed by the applicant for such excess costs provided the application is approved. In the event the City's costs in processing the application exceed Ten Thousand no/100ths ($10,000.00) Dollars, the applicant shall pay such actual excess costs to the City as a part of the application fee before the approval of the application.

(§ 2, Ord. 461-86, eff. May 14, 1986)

(a) Each application for a franchise to continue to operate or maintain an existing cable television system in the City shall be filed with the City Clerk and shall contain or be accompanied by the following:

(1) The name, address, and telephone number of the applicant;

(2) The exact boundaries of the area within the City for which the renewal is sought, such area being referred to in this chapter as the "franchise area";

(3) 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:

(i) The names, residences, and business addresses of all officers, directors, and associates of the applicant;

(ii) The names, residences, and business addresses of all officers, persons, and entities having, controlling, or being entitled to have or control five (5%) percent or more of the ownership of the applicant and the respective ownership share of each such person or entity, unless the applicant is a corporation whose shares are traded on a listed stock exchange;

(iii) The names and addresses of any parent or other business entity owning or controlling the applicant in whole or in part and a statement describing the nature of such owning or controlling entity. The applicant shall also provide a list of all other cable television systems, and their locations, owned or controlled by the applicant or by the business entity owning or controlling the applicant;

(iv) An annual shareholders' report for the immediately prior fiscal year; if the applicant is not a corporation, a report containing the information as would be contained in a stockholders' report. Such report shall subsequently be furnished to the City on an annual basis; and

(v) 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 law of the grantor provided the grantor informs the grantee of the reasonable relationship between the requested information and the renewal of the franchise; and

(4) Any fee to which an applicant would be subject pursuant to subsection (e) of Section 7-1.401 of this article.

(b) An applicant shall likewise furnish all the information required by Section 7-1.401 of this article; provided, however, the City may waive this requirement if any such information is unnecessary due to the grantee's status as a renewing franchise.

(§ 2, Ord. 461-86, eff. May 14, 1986)

(a) The Council, by advertisement or any other means, may solicit and call for applications for cable television system franchises, and may determine and fix the date before which the applications shall be received, and may make any other determinations and specify any other procedures, times, terms, conditions, or limitations respecting the soliciting, calling for, making, and receiving of such applications.

(b) Upon the receipt of any application for a franchise, the Council shall refer the application to the City Manager, who shall prepare a report and make his recommendations respecting such application and cause the same to be completed and filed with the Council at the earliest practicable time.

(c) In making any determination pursuant to this section as to any application, the Council may give due consideration to the quality of the service proposed, rates to subscribers, 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, willingness and ability to meet 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.

(d) If the Council shall determine to reject such application, such determination shall be final and conclusive, and the application shall be deemed rejected.

(e) 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 this chapter and as provided in this section.

(2) The Council shall pass its resolution of intention to consider the granting of such franchise, giving notice of the receipt of the application, and describing the character of the franchise desired, stating the name of the proposed grantee, 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 certain when and where any person having any interest therein or objection to the granting thereof may file written protests and appear before the Council and be heard, and directing the City Clerk to publish such resolution at least once within ten (10) days after the passage thereof in a newspaper of general circulation within the City.

(f) At the time set for the hearing, or at any adjournment thereof, the Council shall proceed to hear all written protests. Thereafter, the Council shall make one of the following determinations:

(1) That such franchise be denied; or

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

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

(g) If the Council shall determine that a franchise be denied, such determination shall be expressed by resolution and shall be final and conclusive.

(h) If the Council shall determine that a franchise be granted upon the terms and conditions as specified in the resolution of intention to consider granting the franchise, such determination shall be expressed by ordinance granting a franchise to the applicant.

(i) 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, then such determination shall be expressed by resolution adopted prior to granting a franchise by ordinance.

(§ 2, Ord. 461-86, eff. May 14, 1986)

(a) Any proceeding undertaken by the City which relates to the renewal of any franchise granted pursuant to this chapter shall be governed by and comply with the provisions of Section 626 of the Cable Act, unless procedures and substantive provisions set forth therein shall be deemed to be preempted and superseded by the provisions of any subsequent provision of State or Federal laws.

(b) At any time during a franchise term or after the expiration of a franchise granted pursuant to this chapter, the City may negotiate the terms or renewal of such franchise pursuant to subsection (h) of section 626 of the Cable Act. Such renewal may be granted according to the following procedure:

(1) The Council shall pass its resolution of intention to consider granting such franchise, giving notice of the receipt of the application, and describing the character of the franchise desired, stating the name of the proposed grantee, 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 certain where and when any person having any interest therein or objection to the granting thereof may file written protests and appear before the Council and be heard, and directing the City Clerk to publish such resolution at least once within ten (10) days after the passage thereof in a newspaper of general circulation within the City.

(2) At the time set for the hearing the Council may either:

(i) Grant such renewal upon the terms and conditions specified in the resolution of intention to grant the franchise; or

(ii) Grant such renewal upon terms and conditions different from those specified in the resolution to grant the franchise; or

(iii) If the Council determines not to grant such renewal pursuant to subsection (i) or (ii) of this subsection, commence renewal proceedings according to the procedures set forth in subsections (a) through (g) of Section 626 of the Cable Act.

(c) In lieu of proceeding to negotiate and grant a renewal of a franchise pursuant to subsection (b) of this section, the Council may, or shall upon the request of a grantee under this chapter during the six (6) month period which begins with the thirty-sixth (36th) month before the franchise expires, commence renewal proceedings according to the procedures set forth in subsections (a) through (g) of Section 626 of the Cable Act.

(§ 2, Ord. 461-86, eff. May 14, 1986)

(a) No franchise granted pursuant to this chapter shall become effective for any purpose unless and until written acceptance thereof shall have been filed with the City Clerk. 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 contained in this chapter, and in such franchise, and as otherwise specified in this section.

(b) The written acceptance shall be filed by the grantee not later than 12:01 p.m. of the thirtieth (30th) day next following the effective date of the ordinance granting such franchise.

(c) In default of the filing of such written acceptance as required by 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.

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

(§ 2, Ord. 461-86. eff. May 14, 1986)