Redondo Beach Municipal Code Art. 2 Procedures for Granting, Renewing, Transferring, and Acquiring by City of…

A nonexclusive franchise granted under this chapter, or a state video franchise, is required of any person that constructs, operates or maintains a cable system within all or any portion of the public rights-of-way of the City or provides cable television service in the City, and such construction, operation, maintenance, or service without such a franchise shall be unlawful. A franchise may be granted by the City Council to any person, whether operating under an existing franchise or not, pursuant to the terms and provisions of this chapter.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

(a) It shall be unlawful for any person to make any unauthorized connection, whether physically, electronically, acoustically, inductively or otherwise, with any part of a franchised cable system within this City for the purpose of enabling him or herself or others to receive any television signal, radio signal, picture, program or sound, without the permission of the Grantee.

(b) It shall be unlawful for any person, without the consent of the Grantee, to willfully tamper with, remove or injure any part of a franchised cable system within this City.

(c) Any persons violating any part of this section shall be liable, upon conviction thereof, to the maximum penalty permitted by law for such violation. Each day any such violation continues shall constitute a separate offense.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

Any franchise granted pursuant to the provisions of this chapter shall authorize and permit the Grantee to construct, operate and maintain a cable system in the City for the sole purpose of providing cable service, pursuant to the terms of its franchise agreement and applicable law. Such a franchise shall grant no authority for the Grantee to use the City's streets for any purposes other than provision of cable service, except to the extent other services may be specifically authorized in a franchise agreement.

Consistent with applicable Federal and State law, the City Council shall retain all authority to regulate non-cable communication services to the extent necessary to protect the public interest and to ensure compliance with all provisions of this chapter.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

(a) Any franchise granted under this chapter shall be nonexclusive.

(b) No privilege or exemption shall be granted or conferred by any franchise granted under this chapter except those specifically presented herein.

(c) Any privilege claimed under any franchise by a Grantee or a State franchise holder in any street or other public property shall be subordinate to any prior or subsequent lawful occupancy or use thereof by the City or any other governmental entity, or other prior easements therein.

(d) Any right or power in, or duty imposed 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.

(e) A Grantee or a State franchise holder shall be subject to all requirements of City ordinances, rules, regulations and specifications heretofore or hereafter enacted or established which are within the scope of the City's police and taxing powers, and shall comply with all applicable State and Federal laws and regulations heretofore or hereafter enacted or established.

(f) Any such franchise granted shall not relieve the Grantee of any obligation involved in obtaining pole space from any department of the City, utility company, or from others maintaining poles in streets.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

(a) In accordance with Section 627 of the Cable Communications Policy Act of 1984, if a renewal of a franchise granted under this chapter is denied and the City acquires ownership of the cable system or effects a transfer of ownership of a cable system to another person, any such acquisition or transfer shall be at fair market value, determined on the basis of the cable system. valued as a going concern but with no value allocated to the franchise itself.

Any such right of the City to acquire or transfer a cable system shall be addressed in a franchise agreement. This chapter does not by itself create such a right in the City with respect to any cable system.

If a franchise granted under this chapter is revoked for cause and the City acquires ownership of the cable system or effects a transfer of ownership of the cable system to another person, any such acquisition or transfer shall be at an equitable price.

(b) The value of a cable system (fair market value or equitable price) shall be determined by an appraisal committee consisting of three disinterested appraisers. The appraisal process shall be conducted in accordance with the following procedures:

(1) Each party shall appoint an appraiser within 30 days after the City sends notice initiating appraisal proceedings. The two appraisers shall select a third appraiser within 30 days after selection of the second appraiser. If the two appraisers are unable to agree on the appointment of a third appraiser within such 30 day period, either the City or the Grantee may petition the Judge of the Los Angeles County Superior Court, acting in his or her individual capacity, for the selection of a third appraiser.

(2) Each party shall bear the cost of its own appraiser and one-half of the cost of appointing the third appraiser and of paying the third appraiser's fee. The third appraiser, however selected, shall be a person who has not previously acted in any capacity for either the City or the Grantee.

(3) Within 30 days after selection of the third appraiser, the appraisers shall meet and set the value of the cable system consistent with the requirements of this section.

(c) The provisions of this section shall not apply to a State franchise holder's cable system.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

(a) City may exercise right of eminent domain. Nothing herein 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 a Grantee, through the exercise of the right of eminent domain, at a fair and just value in accordance with applicable law. Nothing herein contained 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) City's rights reserved. There is hereby reserved to the City every right and power which is required to be herein reserved or provided by any ordinance of the City adopted pursuant to the exercise of the City's police and taxing powers. A Grantee shall at all times be subject to all lawful exercise of the police power and any other lawful authority of the City, including without limitation all rights the City may have under 47 U.S.C. Section 552.

(c) City cannot be prevented from granting franchises to other persons. In accordance with applicable Federal and State law neither the granting of any franchise hereunder nor any of the provisions contained herein shall be construed to prevent the City from granting additional franchises.

(d) Granting of a franchise shall not constitute a waiver to exercise of any governmental right or power. Neither the granting of any franchise nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City, now existing or hereafter granted.

(e) City Manager authorized to settle controversies. The City Manager is hereby authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of any Grantee under this chapter, in the best interest 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 City Council for hearing and determination within 30 days of receipt of notice of such decision. If no such appeal is made such decision shall be deemed final. The City Council may accept, reject or modify the decision of the City Manager and may adjust, settle or compromise any controversy or cancel any charge arising from the operations of the Grantee or from any provision of this chapter. Grantee shall have 60 days subsequent to the date of any such action by the City Council (including without limitation a determination of any question of fact) to file an appeal therefrom with an appropriate State or Federal court or agency. All actions by the City Council under this subsection shall be after hearing upon 10 days advance written notice to Grantee at its address on file with the City. Such actions may be either resolution or minute motion, except that revocation of franchise pursuant to Section 11-3.609 shall be by ordinance.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

To the extent permitted by applicable State and Federal law, each application for a new franchise under this chapter to construct, operate or maintain any cable system in the City shall be filed with the office of the City Clerk and shall be on forms prescribed by the City if the City requires the use of such forms. Each application must contain the following information:

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

(b) A description of the corporation or business entity organization of the applicant, including at least the following:

(1) The names, residence and business addresses of all officers and directors of the applicant;

(2) The names, residence and business addresses of all persons having any share of the ownership of the applicant and the respective ownership share of each person;

(3) A description of the previous experience of the applicant in providing cable service;

(4) Information showing that the applicant has available sufficient financial resources to construct and operate the proposed cable system in this City;

(c) A detailed map indicating all areas proposed to be served, and a proposed time schedule for the rollout of cable service;

(d) Any other details, statements, information or references pertinent to the subject matter of such application that have been published, or requested in writing from the applicant, by the City Council prior to the filing of the application.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

(a) Amount. Notwithstanding any other requirement of this chapter, each applicant for a franchise under this chapter must furnish with its proposal a nonrefundable filing fee in the amount of Five Thousand and No/100ths ($5,000.00) Dollars by certified or cashier's check made payable to the City. No application shall be considered without receipt of such check.

(b) Deposit and use. All checks received will be deposited to an account of the City and will serve to recover expenses incurred by the City in the preparation and granting of a franchise, the execution of a franchise and regulation of franchise pursuant to this chapter.

(c) Additional fee. Each applicant, prior to acceptance of a franchise under this chapter, shall reimburse all additional expenses, including, but not limited to, any and all administrative, engineering, publication, or legal costs and consultants' expenses incurred in connection with the processing, evaluation and preparation of documents relating to the franchise, subject to any limitation on such reimbursement in the applicant's franchise agreement. The City shall document all such expenses by invoice. In the event that expenses exceed the total amount of filing fees collected from the applicant(s), the Grantee shall pay to the City the excess amount within 60 days of demand of the City.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

(a) Compliance with City requirements. Any misrepresentation, failure, neglect or refusal to provide required information may, at the option of the City, render a franchise application invalid. The requested information must be complete and verified as true by the applicant.

(b) Proposals become property of City. All proposals received by the City from an applicant shall become the sole property of the City.

(c) Referral to City Manager for evaluation and recommendation. Upon receipt of any application for a franchise to be granted under this chapter, the City Council shall refer the same to the City Manager, who shall prepare or cause to be prepared a report, including recommendations respecting such application, and cause the same to be completed and filed with the City Council. All applicants will be offered the opportunity to make a formal presentation to the City Council in support of their applications.

(d) Investigations. The City may make such investigations as it deems necessary to determine the ability of an applicant to perform under the franchise, and the applicant shall furnish to the City all such information and data for this purpose as the City may request.

(e) Public comment. Upon receiving the City Manager's report, the City Council shall pass a resolution setting a public hearing for the consideration of the application, fixing and setting forth a day, hour, and place certain when and where any persons having any interest therein or who wish to file objections may file written comments and appear before the City Council and be heard, and directing the City Clerk to publish said resolution at least once within 10 days of the passage thereof in a newspaper of general circulation within the City.

(f) Criteria to be considered. In making any determination hereunder as to any application for a new franchise, the City may consider any and all factors relevant to significant interests of the community, including, but not limited to, the quality of the cable service proposed, areas to be served, income to the City, experience, character, background, and financial responsibility of any applicant, willingness and ability to comply with applicable law, and all other matters deemed pertinent by the City for safeguarding the interests of the City and the public.

(g) Determinations by City Council. At the time set for the hearing, or at any adjournment thereof, the City Council shall proceed to hear all comments. Thereafter, the City Council shall make one of the following determinations:

(1) That such application be denied; or

(2) That such franchise be granted and the terms and conditions thereof.

(h) Awards based on public record. It is the intention of the City to award any cable franchise solely on the basis of the public record. To this end, communication with the City Council by those wishing to submit proposals for a cable franchise should be limited to public sessions. Requests for information should be directed to the office of the City Manager.

(i) City Council decisions shall be final. Any decision of the City Council concerning award of a franchise pursuant to this chapter shall be final.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

A franchise agreement shall provide for the length of the franchise term. A franchise may be renewed by the City pursuant to then applicable law.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)

(a) Transfer means any transaction in which control of the Grantee is transferred, whether by a transfer or grant of an ownership interest or any other interest in a grantee, directly or indirectly, from one person or group of persons to another person or group of persons, or the rights and/or obligations held by the Grantee under a franchise agreement are transferred or assigned to another person or group of persons.

(1) A transfer is pro forma when it involves no substantial change in the ultimate ownership or control of the franchise.

(b) No transfer shall occur without prior approval of the City, except to the extent otherwise specified in a franchise agreement, and such approval shall not be unreasonably withheld.

(c) Grantee shall promptly notify the City in writing of a proposed transfer and shall file with the City Manager an application for transfer. The transfer application shall meet the relevant requirements of Section 11-3.207 and shall provide complete information on the proposed transaction, including a complete copy of the transfer agreement, details on the legal, financial, and technical qualifications of the transferee, and an explanation of the potential impact of the transfer on subscriber rates and service.

(d) An application for approval of a pro forma transfer shall be considered granted on the thirty-first calendar day following the filing of such application with the City Manager unless, prior to that date, the City notifies the Grantee to the contrary. An application for approval of a pro forma transfer shall clearly identify the application as such.

(e) In making a determination on whether to grant an application for transfer, the City Council shall consider the legal, financial, and technical qualifications of the transferee to operate the system; whether the incumbent cable operator is in compliance with its franchise agreement and this chapter and, if not, the proposed transferee's commitment and plan to cure such noncompliance; and whether operation by the transferee would adversely affect cable services to subscribers, or otherwise be contrary to the public interest.

(f) No application for a transfer shall be granted unless the transferee agrees in writing that it will abide by and accept all terms of this chapter and the franchise agreement, and that it will assume the obligations and liabilities of the previous Grantee under this chapter and the franchise agreement, except to the extent the City may otherwise consent in a transfer agreement.

(g) Approval by the City of a transfer does not constitute a waiver or release of any of the rights of the City under this chapter or the franchise agreement, whether arising before or after the date of the transfer.

(§ 2, Ord. 2727 c.s., eff. May 5, 1994, as amended by § 1, Ord. 2993 c.s., eff. December 30, 2006)