Pacifica Municipal Code Art. 3 Franchise Terms and Conditions

A franchise granted by the City under the provisions of this chapter shall encompass the following purposes:

(a) To permit the grantee to engage in the business of providing cable service, and such other services as may be permitted by law which grantee provides to subscribers within the designated service area.

(b) To permit the grantee to erect, install, construct, repair, rebuild, reconstruct, replace, maintain and retain, cable lines, related electronic equipment, supporting structures, appurtenances and other property in connection with the operation of the cable system in, on, over, under, upon, along and across streets or other public places within the designated service area.

(c) To permit the grantee to maintain and operate said franchise properties for the origination, reception, transmission, amplification and distribution of television and radio signals and for the delivery of cable services, and such other services as may be permitted by law.

(d) To set forth the obligations of the grantee under the franchise.

(§ 3, Ord. 695-C.S., eff. December 13, 2001)

After the effective date of this chapter, it shall be unlawful for any person to construct, install or operate a cable system in the City within any public way without a properly granted franchise awarded pursuant to the provisions of this chapter.

(§ 3, Ord. 695-C.S., eff. December 13, 2001)

(a) A franchise granted hereunder shall be for a term established in the franchise agreement, commencing on the grantor's adoption of an ordinance or resolution authorizing the franchise and grantee's acceptance thereof.

(b) A franchise granted hereunder may be renewed upon application by the grantee pursuant to the provisions of applicable state and federal law.

(§ 3, Ord. 695-C.S., eff. December 13, 2001)

Any franchise shall be valid within all the municipal limits of the City, and within any area added to the City during the term of the franchise, unless otherwise specified in the franchise agreement.

(§ 3, Ord. 695-C.S., eff. December 13, 2001)

This chapter shall be construed in a manner consistent with all applicable federal and state laws, and shall apply to all franchises granted or renewed after the effective date of this chapter to the extent permitted by applicable law.

(§ 3, Ord. 695-C.S., eff. December 13, 2001)

(a) A Grantee shall not sell, transfer, lease, assign or dispose of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, the franchise or any of the rights or privileges therein granted, without the prior consent of the Council, which consent shall not be unreasonably denied, withheld or delayed; provided, however, that the prior written consent of the Council shall not be required for an intracorporate or intracompany transfer from one wholly-owned subsidiary to another wholly-owned subsidiary. Any attempt to sell, transfer, lease, assign or otherwise dispose of the franchise without the consent of the Council shall be null and void. The granting of a security interest in any grantee assets, or any mortgage or other hypothecation or by assignment of any right, title or interest in the cable system, or use of the cable system as collateral in order to secure indebtedness, shall not be considered a transfer for the purposes of this section.

(b) The requirements of subsection (a) shall apply to any change in control of grantee. The word "control" as used herein includes majority ownership, and actual working control in whatever manner exercised. In the event that grantee is a corporation, prior consent of the Council shall be required where ownership or control of more than thirty-five (35%) percent of the voting stock of the grantee is acquired by a person or group of persons acting in concert, none of whom own or control the voting stock of the grantee as of the effective date of the franchise, singularly or collectively.

(c) Grantee shall notify grantor in writing of any foreclosure or any other judicial sale of all or a substantial part of the franchise property of the grantee or upon the termination of any lease or interest covering all or a substantial part of said franchise property. Such notification shall be considered by grantor as notice that a change in control or ownership of the franchise has taken place and the provisions under this section governing the consent of grantor to such change in control or ownership shall apply.

(d) For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, grantor may inquire into the qualifications of the prospective transferee or controlling party, and grantee shall assist grantor in such inquiry. In seeking grantor's consent to any change of ownership or control, grantee shall have the responsibility of insuring that the grantee and/or the proposed transferee complete an application that contains information in accordance with Federal Communications Commission Form 394 or equivalent.

The transferee shall be required to establish that it possesses the legal, technical and financial qualifications to operate and maintain the cable system and comply with all franchise requirements for the remainder of the term of the franchise. If the grantee is then in compliance with the requirements of the franchise, and the legal, financial and technical qualifications of the applicant are satisfactory, the grantor shall consent to the transfer of the franchise. The grantor may impose such reasonable conditions upon the transfer as are within the grantor's legal authority. Grantor shall make its decision to approve or deny the transfer request within 120 days of receiving a fully completed request from grantor. If the grantor has not taken action on the grantee's request for transfer within 120 days after receiving such fully completed request, grantor's consent to such transfer shall be deemed given. The consent of the grantor to such transfer shall not be unreasonably denied or delayed.

(e) Any financial institution having a pledge of the grantee or its assets for the advancement of money for the construction and/or operation of the franchise shall have the right to notify the grantor that it or its designee satisfactory to the grantor shall take control of and operate the cable system, in the event of a grantee default of its financial obligations. Further, said financial institution shall also agree in writing to continue cable service and comply with all franchise requirements during the term the financial institution exercises control over the system.

(f) Any submission of an application for transfer of a franchise shall be accompanied by a nonrefundable franchise processing fee in the amount of three thousand and no/100ths ($3,000.00) dollars. Additionally, if the application is approved, grantee shall reimburse grantor for grantor's reasonable out-of-pocket processing and review expenses in connection with the transfer of the franchise, to the extent such expenses exceed three thousand and no/100ths ($3,000.00) dollars, subject to any reimbursement limitation that may be incorporated within the franchise agreement. Any such reimbursement shall not be charged against any franchise fee due to grantor during the term of the franchise.

(§ 3, Ord. 695-C.S., eff. December 13, 2001)

(a) Grantee shall design, construct and maintain the cable system to have the capability to pass every residential dwelling unit in the service area, subject to any service area line extension requirements of the franchise agreement.

(b) Business and commercial facilities shall be passed and/or served in accordance with the provisions of the franchise agreement.

(c) After service has been established by activating trunk and/or distribution cables for any service area, grantee shall provide service to any requesting subscriber within that service area within thirty (30) days from the date of request, provided that the grantee is able to secure all rights-of-way, permits and landlord agreements necessary to extend service to such subscriber within such thirty (30) day period on reasonable terms and conditions.

(§ 3, Ord. 695-C.S., eff. December 13, 2001)

Any franchise granted pursuant to this chapter shall be nonexclusive. The grantor specifically reserves the right to grant, at any time, such additional franchises for a cable system, as it deems appropriate, subject to applicable state and federal law, provided that if the grantor grants an additional franchise, then the material provisions of any such additional franchise shall be reasonably comparable to the terms and conditions contained in the initial grantee's franchise, so that all grantees are accorded competitively neutral and nondiscriminatory treatment.

(§ 3, Ord. 695-C.S., eff. December 13, 2001)

(a) grantor may grant any number of franchises subject to applicable state or federal law. Grantor may limit the number of franchises granted, based upon, but not necessarily limited to, the requirements of applicable law and specific local considerations, such as:

(1) The capacity of the public rights-of-way to accommodate multiple cables in addition to the cables, conduits and pipes of the utility systems, such as electrical power, telephone, gas and sewerage.

(2) The benefits that may accrue to subscribers as a result of cable system competition, such as lower rates and improved service.

(3) The disadvantages that may result from cable system competition, such as the requirement for multiple pedestals on residents' property, and the disruption arising from numerous excavations of the public rights-of-way.

(b) Where electric and telephone utilities are to be placed underground in any new residential housing developments, grantor and the developer of such new residential housing shall give each grantee serving the franchise area within which the new residential housing development is located at least seventy two (72) hours prior written notice of the date on which open trenching will be available for the grantee's installation of conduit, pedestals and vaults. On request of the grantor or developer, the grantee shall provide specifications needed for trenching. Developers of new residential housing with underground utilities shall provide conduit to accommodate cables for at least two (2) new entrant cable systems and dedicate the use of such conduit to the City.

(c) grantor may require that any new entrant, nonincumbent grantee be responsible for its own underground trenching and the costs associated therewith, if, in grantor's opinion, the public rights-of-way in any particular area cannot feasibly and reasonably accommodate additional cables.

(§ 3, Ord. 695-C.S., eff. December 13, 2001)