Redondo Beach Municipal Code Art. 3 Franchise Requirements

By accepting a franchise, a Grantee shall agree to be bound by all the terms and conditions contained herein.

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

(a) Grantee to pay City 5% of gross revenue as a franchise fee. For the reason that the streets which are used by the Grantee in the operation of its cable system within the boundaries of the City are valuable public properties acquired and maintained by the City at great expense to its taxpayers, and that the grant to the Grantee to the use of such streets is a valuable property right without which the Grantee would be required to invest substantial capital in right-of-way costs and acquisitions, and because the City will incur costs in regulating and administering the franchise, the Grantee shall pay to the City an amount equal to 5% of Grantee's gross revenue (as defined in definition Section 11-3.101, in its franchise agreement, or, for a State franchise holder, in State law).

(b) Franchise fee to be paid quarterly with statement verifying all collected Cross revenues. The franchise fee assessed shall be payable quarterly to the City, no later than 45 days following the end of each calendar quarter. Each Franchise fee payment shall be accompanied by a brief report prepared by a representative of Grantee showing the basis for the computation.

(c) City may examine all Grantee's records to determine accuracy of amounts payable to City. The City shall have right to audit and to recompute any amounts determined to be payable under this chapter, subject to any limitations on the frequency or scope of such audits in a Grantee's franchise agreement. Any additional amount due to the City as a result of the audit shall be paid within 30 days following written notice to the Grantee by the City. The notice shall include a copy of the audit report.

(d) Late payment of franchise fee to be charged interest at prime rate plus 2%. In the event that any franchise payment or recomputed amount is not made on or before the applicable dates heretofore specified, and following notice by the City to a Grantee, interest shall be charged daily from such date at the annual rate equivalent to the then existing highest bank prime rate as published in the Wall Street Journal during the period of delinquency plus one percent.

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

When and in the event that the Grantee of any franchise granted hereunder uses a telephone company's cable system distribution channels furnished to the Grantee pursuant to tariff or contract on file with a regulatory body having jurisdiction and the Grantee makes no use of the streets independent of such telephone company furnished facilities, the Grantee remains fully bound by the terms of its franchise and this chapter.

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

(a) Grantee shall maintain all parts of cable system in good condition. A Grantee shall put, keep and maintain all parts of the cable system in good condition throughout the entire franchise period.

(b) Upon termination of service, grantee to remove aerial drops if requested by subscriber. Upon termination of cable service to any subscriber, a Grantee shall promptly remove its aerial drops, if any, from the premises of such subscriber upon subscriber's request.

(c) Interruption of cable service to be preceded by notice and during periods of minimum cable use. Grantee shall render efficient cable service, make repairs promptly, and interrupt cable service only for good cause and for the shortest time possible. Such interruption, insofar as possible, shall be preceded by notice and shall occur during periods of minimum cable system use.

(d) Subsections (a) and (b) of this section shall not apply to a cable operator that had a franchise from the State of California to occupy the City's streets as a telephone company prior to receiving its cable franchise.

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

(a) Nothing in this chapter shall prohibit the City from regulating rates for cable services to the extent permitted by Federal and State law.

(b) A Grantee shall give at least 30 calendar days written notice to both subscribers and the City before implementing any rate or service change.

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

(a) Grantee shall not discriminate. A Grantee shall not deny cable service, deny access, or otherwise discriminate with respect to the granting or providing of its service against subscribers, channel users, or general citizens on the basis of race, color, religion, national origin, sex, sexual orientation, age or disability. A Grantee shall comply at all times with all other applicable Federal, State and local laws and regulations, and as amended from time to time relating to nondiscrimination.

(b) Grantee shall comply with equal employment opportunity requirements. A Grantee shall strictly adhere to applicable equal employment opportunity requirements of Federal, State and local regulations, and as amended from time to time.

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

Each Grantee shall comply with all applicable Federal and State laws and regulations regarding subscriber privacy.

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

(a) Formula that triggers additional access channels. If any access channel is being utilized more than 10 hours per day, five days a week between the hours of 6:00 a.m. and 11:00 p.m. for 12 consecutive weeks; a Grantee shall, upon receipt of written notice from City make an additional new channel available for the same purpose(s) within 60 days, up to a maximum of two additional access channels; provided, however, that nothing in this subsection shall require Grantee to construct additional channel capacity to the cable system for the sole purpose of providing additional access channel capacity, nor shall the Grantee be required to make such new channel available if such utilization of an existing government, education or public access channel consists of more than 10% character generated programming during any such consecutive 12 week period. Such requirement(s) may be met by making available, on a part-time basis, one or more other under-utilized channels, or on a full or part-time basis one or more other unused access channels until such time as such under-utilized or unused access channels are needed for the uses to which they have been dedicated.

(b) Underutilized access channels to be used by others under rules established by City. If an access channel provided under this chapter is not being utilized by the City, a Grantee may utilize such access channel, in its sole discretion, until such time as the City elects to utilize the access channel for its intended purpose.

(c) Restoration of access channels if demand increases. Access channels permitted by the City for "interim" use by a Grantee are to be restored to government, education or public access use whenever the criteria in subsection (a) of this section are exceeded for any one of the existing access channel uses or whenever there is significant, unsatisfied and documented demand for use of access channel capacity, and the City has determined a projected schedule for at least eight hours of daily programming.

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

(a) Interconnection required. Grantee shall interconnect access channels of the cable system with any or all other cable systems in adjacent areas, upon the directive of the City, pursuant to the procedure described in subsections (b) through (d) of this section, subject to any conditions specified in the Grantee's franchise agreement. Interconnection of cable systems may be done by direct fiber-optic cable connection, microwave link, satellite, or other appropriate method.

(b) Interconnection procedure. Upon receiving the directive of the City to interconnect, a Grantee shall immediately initiate negotiations with the other affected cable system or systems in order that all costs may be shared fairly among cable systems for both construction and operation of the interconnection link.

(c) Relief. A Grantee may be granted reasonable extensions of time to interconnect or the City may rescind its order to interconnect upon petition by the Grantee to the City. The City shall grant said request, if it finds that a Grantee has negotiated in good faith and has failed to obtain an approval from the cable system or systems of the proposed interconnection or that the cost of the interconnection would cause an unreasonable or unacceptable increase in cost of service to subscribers.

(d) Cooperation required. A Grantee shall cooperate with any interconnection corporation, regional interconnection authority or other City, County, State and Federal regulatory agency which may be hereafter established for the purpose of regulating, financing, or otherwise providing for the interconnection of access channels beyond the boundaries of the City.

(e) Interconnection to State franchise holder's network. Upon receipt of a request for interconnection a State franchise holder, or a request from the City to interconnect with a State franchise holder, a Grantee shall immediately commence good faith negotiations to accomplish an interconnection with the State franchise holder's video system in a manner consistent with the provisions of Public Utilities Code Section 5870(h).

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

(a) City may require state-of-the-art improvements, and upgrading of facilities; hearing required. Pursuant to subsection (b) of this section, the City shall have the authority to order the inclusion in the Grantee's cable system of "state-of-the-art" technology or upgraded facilities. Notice of a hearing to consider such an order shall be provided to the Grantee and the public not later than 30 days prior to such hearing.

(b) City must establish need for improvements and financial impact on Grantee. If after such hearing, the City Council determines that (1) there exists a reasonable need for "state-of-the-art" technology or upgraded facilities, and (2) a Grantee will receive a fair rate of return on its total investment (including the additional investment required to provide the "state-of-the-art" technology or upgraded facilities), the City Council may order Grantee to provide "state-of-the-art" technology or upgraded facilities. In considering the economic feasibility of such "state-of-the art" technology or upgraded facilities, the City shall provide for the extension of the term of the franchise to permit the recovery of the cost of such "state-of-the-art" technology or upgraded facilities.

(c) This section shall not apply to a cable operator that had a franchise from the State of California to occupy the City's streets as a telephone company prior to receiving its cable franchise.

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

Whenever the ordinance codified in this chapter or any franchise entered into pursuant to this chapter shall set forth any time for a material act to be performed by a Grantee, failure of the Grantee to perform within the time allotted, or within a reasonable time if a period is not specified, shall always be sufficient grounds for the City to invoke liquidated damages or revocation of a franchise, as stated in Sections 11-3.608 and 11-3.609.

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

(a) No franchise granted pursuant to the provisions of this chapter shall become effective unless and until requirements in this section and Sections 11-3.605 (b) (insurance), 11¬3.606 (security fund) and 11-3.607 (bond) of this chapter are done and completed, all of such provisions being hereby declared to be conditions precedent to the effectiveness of any such franchise granted hereunder. In the event, any of such provisions are not done and completed in the time and manner required, the franchise shall be null and void.

(b) Within 20 days after the effective date of the ordinance awarding a franchise, or within such extended period of time as the City Council in its discretion may authorize, the Grantee shall file with the City Clerk its written acceptance of the franchise, in a form satisfactory to the City Attorney, together with the security fund required by Section 11-3.606 and its signed franchise agreement. Such acceptance shall be acknowledged by the Grantee before a notary public, and shall in form and content be satisfactory to and approved by the City Attorney.

(c) The City Clerk shall record the effective date on the executed franchise agreement upon the Clerk's receipt and acceptance of the documents required in subsections (a) and (b) of this section.

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