Rosemead Municipal Code Ch. 5.28 Cable Communications Franchises

This chapter shall be known and may be cited as the "City of Rosemead Cable Communications Franchise Ordinance."

(Prior code § 6700)

For the purposes of this chapter, the following words, terms, phrases and their derivations shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory.

"Additional subscriber service" means any service not included in basic subscriber television service, basic subscriber radio service or institutional service, as defined in this section, including, but not limited to, pay cable, interactive services, cable modem services and cable telephone services.

"Agency subscriber" means a subscriber who receives a service in a government or public agency, school or nonprofit corporation.

"Basic subscriber radio service" means the provision to all subscribers of such audio services as the retransmission of broadcast AM or FM radio signals, the retransmission of shortwave, weather, news, time and other similar audio broadcast channels, and the transmission of cablecast AM or FM radio signals, as permitted by the FCC.

"Basic subscriber television service" means the total of all of the following:

1. The retransmission to all subscribers of all broadcast television channel signals authorized by the FCC and provided for in franchise agreement;

2. The provision to all subscribers of non-broadcast open channel signals, originating from sources outside the cable communications system;

3. The cablecasting to all subscribers of the local origination channel, and the public, educational and government access channel signals;

4. The transmission to all subscribers of all other cablecast open-channel signals.

Basic subscriber television service may be offered to subscribers in one or more tiers or combination of programs.

"Broadcast signal" means a television or radio signal that is transmitted over the air to a wide geographic audience and is received by a cable communications system off-the-air or by microwave link.

"Cable communications system" or "system," sometimes referred to as "cable TV system," "CATV system" or "broadband communications network," means a system of antennas, cables, amplifiers, towers, microwave links, cablecasting studios, and any other conductors, converters, equipment or facilities, designed and constructed for the primary purpose of distributing video programming to home subscribers, and the secondary purpose of producing, receiving, amplifying, storing, processing or distributing audio, video, digital, or other forms of electronic or electrical signals. Such term does not include:

1. A facility that serves only to transmit television signals of one or more television broadcast stations;

2. A facility that serves subscribers without using any public right-of-way;

3. A facility of a common carrier, which is subject in whole or in part to the provisions of Title II of the Federal Telecommunications Act of 1996, except that such facility shall be considered a cable communications system to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services; or

4. An open video system that complies with Section 653 of the Federal Telecommunications Act of 1996; or

5. Any facilities of any electric utility used solely for operating its electric utility system.

"Cablecast signal" means a nonbroadcast signal that originates within the facilities of the cable communications system.

"Channel" means a radio frequency band capable of carrying combinations of video, audio, digital or other nonvideo signal, including a digitally compressed channel.

"City" means the City of Rosemead, California, and all of the territory within its present and future corporate boundaries.

"City Council" means the Council of the City of Rosemead, or such representative person or entity as may be designated initially or at some future date to act on cable communications matters.

"Closed circuit" or "institutional service" means such video, audio, data and other services provided to institutional users on an individual application, private channel basis. These may include, but not be limited to, two-way video, audio or digital signals among institutions, or from institutions to residential subscribers.

"Commercial subscriber" means a subscriber who receives a service in a place of business where the service may be utilized in connection with a business, trade or profession.

"Community access corporation" means the nonprofit, public corporation, hereinafter defined, whose duties shall include the financing, management and programming of the community and public access channels.

"Converter" means an electronic device which converts signal carriers from one form to another.

"Educational channel" or "educational access channel" means any channel where educational institutions are the only designated programmers.

"FCC" means the Federal Communications Commission, or a designated representative.

"Franchise agreement" means a signed and notarized statement on the part of both grantor and grantee accepting and agreeing to all of the provisions of a franchise granted pursuant to this chapter, including referenced specifications, franchise applications, and other related material. The franchise agreement may modify terms of this chapter by mutual agreement, with any such modification requiring confirmation by appropriate ordinance amendment.

"Government channel" or "government access channel" means any channel where local government agencies are the only designated programmers.

"Grantee" means the person or entity to which a franchise henceforth is granted for the construction, operation, maintenance, and reconstruction of a cable communications system, and the lawful successors, transferees, or assignees of said corporation or entity.

"Grantor" means the City of Rosemead as represented by the City Council acting within the scope of its jurisdiction.

"Gross revenue" means all cash or other consideration received directly or indirectly by a grantee and its affiliates, subsidiaries, parent, and any person in which a grantee has a financial interest, or from any source whatsoever, arising from or attributable to the sale or exchange of cable services by a grantee within the City or in any way derived from the operation of its system, including, but not limited to, "basic subscriber television service," "basic subscriber radio service," "institutional service," "additional subscriber service," premium and pay services, leased channel fees, converter rentals or sales, revenue from cable Internet services, cable modem rentals or sales, revenue from telephone and other services which may be provided over the cable communications system, studio rental, and advertising revenues. Such gross revenues shall not be reduced for any purpose other than as provided in this chapter and shall be the basis for computing the fee imposed pursuant to Section 5.28.100 of this chapter. Such gross revenue shall not include converter deposits, modem deposits, or refunds to subscribers by the grantee, or items excluded by federal law.

"Leased channel" or "leased access channel" means any channel available for lease and programming by persons or entities other than the grantee, including those portions of the other access channels not in use by their designated programmers.

"Local origination channel" means any channel where the grantee is the only designated programmer and provides video programs to subscribers.

"Monitoring" means observing a one-way communications signal, or the absence of a signal, where the observer is neither the subscriber nor the programmer, whether the signal is observed by visual or electronic means, for any purpose whatsoever.

"Non-broadcast signal" means a signal that is transmitted by a cable communications system and that is not involved in an over-the-air broadcast transmission path.

"Open channel" means any channel that can be received by all subscribers, without the necessity for special equipment.

"Pay-cable" or "pay-television" means the delivery to subscribers, over the cable communications system, of television signals for a fee or charge to subscribers over and above the charge for basic subscriber service, on a per program, per channel, or other subscription basis.

"Person" means any corporation, partnership, proprietorship, individual or organization authorized to do business in the state of California, or any natural person.

"Private channel" or "closed-circuit channel" means any channel which is available only to subscribers who are provided with special converter or terminal equipment to receive signals on that channel.

"Programmer" means any person or entity who or which produces or otherwise provides program material or information for transmission by video, audio, digital or other signals, either live or from recorded tapes or other storage media, to subscribers, by means of the cable communications system.

"Public access channel," "community access channel" or "community channel" means any channel where any member of the general public or any noncommercial organization may be a programmer, without charge, on a first-come, first-served, nondiscriminatory basis.

"Resident" means any person residing in the City as otherwise defined by applicable law.

"Residential subscriber" means a subscriber who received a service in an individual dwelling unit, where the service is not to be utilized in connection with a business, trade or profession.

"School" means any educational institution including primary and secondary schools, colleges and universities, both public and private.

"Section" means any section, subsection or provision of this franchise ordinance.

"Streets and public ways" means the surface of and the space above and below any public street, sidewalk, alley or other public way of any type whatsoever, now or hereafter existing as such within the City.

"Subscriber" means any person, firm, corporation or other entity who or which elects to subscribe to, for any purpose, a service provided by the grantee by means of or in connection with the cable communications system.

"Tapping" means observing a two-way communications signal exchange, where the observer is neither of the communicating parties, whether the exchange is observed by visual or electronic means, for any purpose whatsoever.

"Year" means the remaining portion of 2000. Thereafter, "year" means a full calendar year.

(Ord. 807 § 1 (part), 2000; prior code § 6701)

A. Public Hearing. The City Council shall hold a duly noticed public hearing prior to granting any cable communications system franchise. Notice of the hearing shall be published at least ten days prior to the hearing in a newspaper of general circulation in the City.

B. Basis for Award of Franchise. Pursuant to federal and state law, the City Council may base its award of a cable communications system franchise on the following criteria:

1. For every new franchise:

a. Quality of service; and

b. Equal service for all areas of the City, without regard to income of the residents; and c. Adequate public, educational and governmental access channel capacity, facilities and financial support; and

d. Adequate assurance that the cable operator has the financial, technical and legal qualifications to provide cable service;

e. Any other consideration that will safeguard the local public interest.

2. For every franchise renewal:

a. Whether the cable operator has substantially complied with the material terms of the franchise and with applicable law;

b. Whether the quality of the operator's service has been reasonable in light of community needs;

c. Whether the cable operator has the financial, legal and technical ability to provide the services, facilities and equipment set forth in the proposal;

d. Whether the operator's proposal is reasonable to meet the future needs and interests of the community, taking into account the cost of those needs.

C. Grant. In the event that grantor shall grant to the grantee a nonexclusive, revocable franchise to construct, operate, maintain and reconstruct a cable communications system within the City, said franchise shall constitute both a right and an obligation to provide the services of cable communications system as required by the provisions of this chapter and the franchise agreement. The franchise shall include those provisions of the grantee's application for franchise that are finally negotiated and accepted by the grantor and grantee in writing.

The franchise shall be granted under the terms and conditions contained herein, consistent with grantor statutory requirements, which are incorporated by this reference as if fully set forth herein. In the event of conflict between the terms and conditions of the franchise and the terms and conditions on which the grantor can grant a franchise, the statutory requirements shall, without exception, control.

The franchise shall be subject to the general ordinance provisions now in effect or hereafter made effective. Nothing in the franchise shall be deemed to waive the requirements of the various codes and ordinances of the City regarding permits, fees to be paid, or manner of construction.

D. Use of Public Streets and Ways. For the purpose of operating and maintaining a cable communications system in the City, the grantee may erect, install, construct, repair, replace, reconstruct and retain in, on, over, under, upon, across and along the public streets and ways within the City such wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of the cable communications system. Prior to construction or alteration, however, the grantee shall in each case file plans with the appropriate city agencies and utility companies, and receive written approval before proceeding.

E. Duration. The term of the franchise and all rights, privileges, obligations and restrictions pertaining thereto shall not exceed ten years from the effective date of the franchise unless terminated sooner as hereinafter provided. No franchise shall be effective unless, within thirty (30) days after approval by the Council, the grantee files in the appropriate office of the City a written acceptance of the franchise.

F. Franchise Nonexclusive. The franchise granted shall be nonexclusive. The grantor specifically reserves the right to grant, at any time, such additional franchises for a cable communications system as it deems appropriate.

G. Franchise Nontransferable. 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 consent of the City expressed by ordinance. The granting of such consent shall not render unnecessary any subsequent consent.

If the grantee shall, in violation of this section, transfer the franchise prior to obtaining city consent, all of the profits of the cable communications system from the date of franchise transfer until the date of city consent shall be returned to the system's subscribers, on a pro rata basis.

The grantee, upon transfer as heretofore described shall, within sixty (60) days thereafter, file with the City a copy of the deed, agreement, mortgage, lease or other written instrument evidencing such sale, transfer or lease, certified and sworn to as correct by the grantee.

Every such transfer as heretofore described, whether voluntary or involuntary, shall be deemed void and no effect unless grantee shall within sixty (60) days after the same shall have been made, file such certified copy as is required.

H. Change in Control. The grantee shall promptly notify the grantor of any proposed change in, transfer of or acquisition by, any other party of control of the grantee with respect to which the consent of the grantor is required, pursuant to subsection G of this section. Such change in control shall make the franchise subject to revocation unless and until the grantor shall have consented thereto. For the purpose of determining whether it will consent to such change, transfer or acquisition of control, the grantor may inquire into the qualifications of the prospective controlling party, and the grantee shall assist the grantor in any such inquiry. The City may condition the transfer upon the terms and conditions as it deems appropriate.

For the purposes of this section, a presumptive change in control will be established upon the sale or transfer of ten percent or more of the grantee's ownership stock.

I. Open Access. It is the policy of the City to encourage open access so that its residents may utilize any Internet service provider, whether they receive their Internet service by means of satellite transmission, cable television, other fiber optic cables, or other means. If federal law permits franchising authorities to require open access, the grantee shall permit open access to the fullest extent permitted by law.

(Ord. 807 § 1 (part), 2000; prior code § 6702)

A. System Design Concept. The cable communications system shall be constructed in accordance with the provisions of the franchise agreement.

B. Initial Geographical Coverage. The grantee shall design and construct the cable communications system in such manner as to have the eventual capability to service every single-family dwelling unit, multiple-family dwelling unit, agency and business establishment within the area of the franchise. Service shall be provided to subscribers in accordance with the schedules and line extension policies specified in the franchise agreement. The initial route of cables serving institutional subscribers shall be approved by grantor, and confirmed in the franchise agreement.

C. Cablecasting Facilities. The grantee shall provide cablecasting facilities in accordance with the provisions of the franchise agreement.

D. Interconnection. The grantee shall provide the interconnection capability specified in the franchise agreement. The grantor may, in the future, require the grantee to participate in interconnecting the cable communications system to other cable systems in the greater Los Angeles metropolitan area. Such interconnection may be required when both the grantor and the franchising authority for the other cable system(s) agree that such interconnection is desirable, and also on the number of channels to be transmitted and received by each system.

When such interconnection is required, the cost shall be borne by both grantees, in the proportion of number of channels received to total number of channels transmitted and received, under the assumption that benefits accrue primarily through receipt of additional channels.

In the case of regional or state-wide interconnection, the same principle shall apply.

E. System Construction Schedule.

1. The grantee shall begin to offer basic subscriber television and radio service in accordance with the schedule contained in the franchise agreement, or sooner.

2. Service need not be provided in any area power and telephone utilities are not available.

3. The grantee shall provide a detailed construction plan indicating progress schedule, area construction maps, test plan, and projected dates for offering service. In addition, the grantee shall update this information on a monthly basis, showing specifically whether schedules are being met and the reasons for any delay.

F. Penalties for Delay in Construction. The grantor may at its sole option, apply any or all of the following penalties in connection with delays in system construction:

1. Reduction in the duration of the franchise on a month-to-month basis for each month of unexcused delay exceeding six months;

2. Forfeiture of performance bonds for unexcused delays exceeding one year;

3. Termination of the franchise for unexcused delays exceeding eighteen (18) months;

4. If, after nine months of the effective date of the franchise, grantee has not commenced construction and grantee does not commence construction within thirty (30) days of written notice of such failure from grantor, subject to the procedural provisions of Section 5.28.070(E), grantor may impose a financial penalty not to exceed one thousand dollars ($1,000.00) per day for each day the grantee fails to initiate construction.

G. Provision of Service. After service has been established by activating trunk cables for any area, the grantee shall provide service to any requesting subscriber within that area within sixty (60) days from the date of request.

H. Undergrounding of Cable. The undergrounding of cables is encouraged. In any event, cables shall be installed underground at grantee's cost where existing utilities are already underground. Previously installed aerial cable shall be undergrounded in concert with other utilities, when such other utilities may convert from aerial to underground construction.

I. Construction Components and Techniques. Construction components and techniques shall be in accordance with the franchise agreement.

J. Technical and Performance Standards. System technical and performance standards shall be in accordance with the franchise agreement.

K. Test and Compliance Procedure. The grantee shall submit, concurrent with its franchise application, a detailed test plan describing the methods and schedules for testing the cable communications system on an ongoing basis to determine compliance with the provisions of the franchise agreement. The tests for the residential services shall be performed periodically, at intervals no greater than every six months, on a minimum of twenty (20) subscriber television receivers, located throughout the service area. At least eight of these locations shall be at the far end of the distribution trunk cables. The tests shall be witnessed by representatives of the grantor, and written test reports shall be submitted to the grantor. If more than ten percent of the locations tested fail to meet the performance standards, the grantee shall be required to indicate what corrective measures have been taken, and the entire test shall be repeated for at least twenty (20) different locations. A second failure of more than ten percent may result, at the grantor's option, in an order to reduce subscriber rates due to degraded service.

L. Emergency Requirements. The grantee shall design and construct the system to provide for a restricted audio override of the audio portion of all channels during emergencies. An emergency power source shall be provided by the grantee. Equipment redundancy shall be provided as required to meet performance standards during periods of emergency or component failure.

M. Construction Codes. The grantee shall strictly adhere to all building and zoning codes currently or hereafter in force. The grantee shall arrange its lines, cables and other appurtenances, on both public and private property, in such a manner as to cause no unreasonable interference with the use of said public or private property by any person. In the event of such interference, the grantor may require the removal of the grantee's lines, cables and appurtenances from the property in question.

N. Repair of Streets and Public Ways. Any and all streets and public ways which are disturbed or damaged during the construction of the cable communications system, shall be promptly repaired by the grantee, at its expense, and to the satisfaction of the grantor.

O. Erection of Poles Prohibited. The grantee shall not erect, for any reason, any pole on or along any street or public way in an existing aerial utility system. If additional poles in an existing aerial route are required, grantee shall negotiate with the utility for the installation of the needed poles. Any such addition shall require the advance written approval of the grantor. The grantee shall negotiate the lease of pole space and facilities from the existing pole owners of all aerial construction, under mutually acceptable terms and conditions. The grantor shall utilize its best offices to assist in arriving at equitable pole rental agreement.

P. Restoration of Streets. Whenever the grantee shall disturb the surface of any street, alley, public highway or ground for any purpose mentioned herein, it shall restore the same to the condition in which it was prior to the opening thereof, and when any opening is made by the grantee in any hard surface pavement in any street, alley or public highway, the grantee shall promptly refill the opening and restore the pavement. The grantor may refill and/or repave in case of neglect of the grantee. The cost thereof, including the cost of inspection and supervision, shall be paid by the grantee. All excavations made by the grantee in the streets, alleys and public highways shall be properly safeguarded for the prevention of accidents. The work hereby required shall be done in strict compliance with the rules, regulations and ordinances of the grantor as now or hereafter provided.

Q. Reservations of Street Rights. Nothing in the franchise shall be construed to prevent the grantor from constructing sewers, grading, paving, repairing and/or altering any street, alley or public highway, or laying down, repairing or removing water mains or constructing, maintaining or establishing any other public work. All such work shall be done insofar as practicable, in such manner as not to unnecessarily obstruct, injure or prevent the free use and operation of the poles, wires, conduits, conductors, pipes or appurtenances of the grantee. If any such property of the grantee herein shall interfere with the construction or repair of any street or public improvement, whether it be construction, repair or removal of a sewer or water main, the improvements of a street or any other public improvement, all such poles, wires, conduits or other appliances and facilities shall be removed or replaced in such manner as shall be directed by the grantor so that the same shall not interfere with the public work of the grantor, and such removal or replacement shall be at the expense of the grantee herein.

R. Trimming of Trees. Nothing contained in this franchise shall be deemed to empower or authorize grantee to cut or trim any trees, ornamental or otherwise, in any of the streets, alleys or public highways, but grantee may cut or trim trees as necessary only pursuant to a prior agreement with the owner of property which is adjacent to the street area in which such tree stands.

S. Street Vacation or Abandonment. In the event any street, alley, public highway or portion thereof used by the grantee shall be vacated by the grantor, or the use thereof discontinued by the grantee, during the term of this franchise, the grantee shall forthwith remove its facilities therefrom unless specifically permitted to continue the same and on the removal thereof restore, repair or reconstruct the street area where such removal has occurred, and place the street area where such removal has occurred in such condition as may be required by the grantor. In the event of failure, neglect or refusal of the grantee, after thirty (30) days notice by the grantor to repair, improve or maintain such street portion, the grantor may do such work or cause it to be done, and the cost thereof as found and declared by the grantor shall be paid by the grantee and collection may be made by court action or otherwise.

T. Movement of Facilities. In the event it is necessary temporarily to move or remove any of the grantee's wires, cables, poles or other facilities placed pursuant to the franchise, in order lawfully to move a large object, vehicle, building or other structure over the streets, alleys or highways of the grantor, grantee upon reasonable notice shall move at the expense of the person requesting the temporary removal such of his facilities as may be required to facilitate such movements.

(Prior code § 6703)

A. Services to be Provided. The cable communications system shall provide, as a minimum, the services listed in the franchise agreement. Services shall not be reduced without prior approval of grantor.

B. Basic Subscriber Television Service (BSTS). The basic subscriber television service shall include the FCC-required services, the distant television broadcast signals, the imported nonbroadcast signals, and the provision of all other cablecast open-channel signals. This service shall be provided to all subscribers at the established BSTS monthly subscription rates. Tiers of service may be provided at different rates, to offer residents a broader choice.

C. Basic Subscriber Radio Service (BSRS). The basic subscriber radio service shall include the provision of all designated audio services, including broadcast FM and AM radio, and cablecast FM signals. This service shall be provided to all subscribers at the established monthly subscription rate.

D. Institutional Service (IS). The institutional service shall include the provision of transmission and/or reception services to institutional users, on a leased channel basis at established IS rates. Services may include the distribution of video or non-video signals.

E. Additional Subscriber Services. Additional subscriber services, not included in the BSTS and BSRS services specified above, may be provided, either within the basic subscription rates, or on a premium basis.

F. Local Origination Channel(s). The grantee shall operate the cablecasting studios on a high-quality, professional basis for the purpose of providing cablecast programming responsive to local needs and interests. The emphasis for the local origination channel(s) shall be on providing programming that is unavailable to viewers on broadcast television channels.

G. Government Access Channel. The grantee shall provide one or more channels for the use of the grantor at no charge to the grantor. The grantee shall make every effort to provide advice and technical expertise to aid in the utilization of the channel(s).

H. Educational Access Channel. The grantee shall provide one or more channels for the use of the local educational institutions at no charge. The grantee shall make every effort to provide advice and technical expertise to aid in the utilization of the channel(s).

I. Public Access Channel. The grantee shall make at least one channel available to the public at no charge. The public access channel(s) shall be managed and operated by an independent, nonprofit public corporation, the Community Access Corporation as described later in this chapter. The grantee shall make available for programmers of the public access channel the facilities listed in the franchise agreement, under terms of a mutual agreement with the Community Access Corporation.

J. Service to Public Buildings. Grantee shall, at cost, provide and maintain one cable television drop to each city facility, library and public school located within the authorized franchise service area upon request for service.

K. Service to Nonprofit Schools. Grantee shall, at cost, provide and maintain one cable television drop to each private, nonprofit school site within the authorized franchise service area.

As used in this section, "private, nonprofit schools" means schools that satisfy the requirements of Section 12154 of the Education Code of the state of California and which are exempt from taxation under Section 214 of the Revenue and Taxation Code of the state of California.

(Prior code § 6704)

A. Open Books and Records. The grantee shall maintain an office within five miles of the City and shall manage all of its operations in accordance with a policy of totally open books and records. The grantor shall have the right to inspect at any time during normal business hours, all books, records, maps, plans, income tax returns, financial statements, service complaint logs, performance test results and other like materials of the grantee which relate to the operation of the franchise. Access to the aforementioned records shall not be denied by the grantor on the basis that the records contain proprietary information.

B. Communications with Regulatory Agencies. Copies of all petitions, applications, communications and reports submitted by the grantee to the Federal Communications Commission, Securities and Exchange Commission, or any other federal or state regulatory commission or agency having jurisdiction in respect to any matters affecting cable communications operations authorized pursuant to this franchise, shall also be submitted simultaneously to the grantor. Copies of responses from the regulatory agencies to the grantee shall likewise be furnished simultaneously to the grantor.

C. Reports.

1. Annual Report. No later than April 15th of each year, the grantee shall present a written report to the grantor which shall include:

a. A fully-audited and certified financial report for the previous calendar year, including gross subscriber revenues from each category of service, net income and end-of-year balance sheet;

b. A summary of the previous year's activities, including, but not limited to, subscriber totals and new services;

c. A summary of complaints received and handled;

d. Projected plans for the future.

2. Monitoring and Compliance Reports. No later than April 15th of each year, the grantee shall provide a written report of the FCC performance tests for the cable television system required in Part 76, Section 76.601 of FCC Rules and Regulations. In addition, the grantee shall provide reports of the test and compliance procedures established by the franchise agreement, no later than thirty (30) days after the completion of each series of tests.

3. Additional Reports. The grantee shall prepare and furnish to the grantor, at the times and in the form prescribed, such additional reports with respect to its operation, affairs, transactions or property, as may be reasonably necessary and appropriate to the performance of any of the rights, functions or duties of the grantor in connection with this franchise.

D. Maintenance and Complaints.

1. The grantee shall maintain an office within five miles of the City which shall be open during all usual business hours, shall have a publicly listed toll-free telephone number, and be so operated to promptly answer subscriber telephone calls and to act upon complaints and requests for repairs or adjustments, on a twenty-four (24) hour basis. A written log shall be maintained listing all complaints and their disposition. Grantee shall maintain a location within the City for the making of payments, which shall be open during normal business hours and a reasonable number of evening and weekend hours, unless grantee establishes to the satisfaction of grantor, hardship sufficient to excuse grantee from this requirement.

2. The grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during period of minimum use of the system. A written log shall be maintained for all service interruptions.

3. The grantee shall not refuse to provide service to any customer or prospective customer conditioned upon such person providing a Social Security number to grantee if such person provides a driver's license number or California I.D. number. Existing customers of the grantee will not be asked more than the last four digits of their Social Security number or driver's license/California I.D. number. After establishment of an account, existing customers may set up an individualized personal identification number (PIN) for use in verifying identity. No number will be required as a prerequisite to ordering routine repair service by existing customers.

4. The grantee shall maintain a repair force of technicians capable of responding to subscriber complaints or requests for service within twenty-four (24) and forty-eight (48) hours after receipt of the complaint or request, respectively. Repair service appointments shall be offered in four hour blocks. No charge shall be made to the subscriber for repair service unless the problem was caused by an act of the subscriber.

5. The grantor shall ensure that all subscribers, programmers and members of the general public have recourse to a satisfactory hearing of any complaints, where there is evidence that the grantee has not settled the complaint to the satisfaction of the person initiating the complaint. The grantor shall establish procedures for handling and settling complaints.

E. Safety.

1. The grantee shall, at all times, employ the standard of care attendant to the risks involved and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injury or nuisance to the public or to employees of the grantee.

2. The grantee shall install and maintain its wires, cables, fixtures and other equipment in accordance with requirements of the National Electrical Code, and in such manner that they will not interfere with any installations of the grantor or any public entity.

3. All lines, equipment and connections in, over, under and upon the streets and public ways and private property in the City, wherever situated or located, shall at all times be kept and maintained in a safe and suitable condition, and in good order and repair.

(Ord. 807 § 1 (part), 2000; prior code § 6705)

Regulation of rates and other terms for the provision of service to customers as set forth hereinbelow shall be subject to and limited by applicable restrictions imposed by federal and state law. If and when such restrictions are removed or modified, enforcement of provisions hereof which are not currently fully enforceable shall be enforced to the maximum extent permitted by law.

A. Charges Permitted and Regulated. The grantee may make such charges for services provided to subscribers as are permitted by the franchise agreement or by subsequent approval of the grantor. The grantee shall receive no remuneration whatsoever for its subscribers for or in connection with any service provided to subscribers without approval of the grantor. New services are encouraged and reasonable charges for such new services shall not be unreasonably limited or denied.

B. Schedule of Rates. The initial schedule of rates to be utilized by the grantee shall be those in the grantee's franchise application, and shall be firm for a period of at least two years after commencement of service within the City. The schedule of rates shall include installation and monthly charges for providing basic service, closed-circuit service, rates for additional services, any special rates for large institutions, motels, multiple-family dwelling units, or any other type of special subscriber. No additional charge shall be made for the provision of any converter without prior approval of the grantor. All rates shall be published and nondiscriminatory, and be uniform to all persons and organizations of like classes, under similar circumstances and conditions. Nothing in this provision shall be construed to prohibit the reduction or waiving of charges in conjunction with promotional campaigns for the purpose of attracting subscribers, nor the granting of reduced rates to nonprofit institutions, nor shall this provision be interpreted to prohibit the establishment of a graduated scale of charges and rate schedules which vary with volume of usage, to which any subscriber or programmer included within a particular classification shall be entitled.

C. Change in Rates. Increases in rates for basic service shall be requested no more often than annually by grantee. Upon receipt of a rate increase request, grantor shall schedule a public hearing prior to arriving at a decision. Upon request from grantor, grantee shall provide and grantor shall consider relevant financial and other information necessary to determine the justification for the requested increase. Failure to provide such requested information shall be grounds for denial of the rate increase. Within ninety (90) days after receipt of the rate increase request, grantor, expressed by city council resolution, shall approve the request in full, approve the request in part, or disapprove the request. In any event, grantor shall provide findings as to the basis for its decision. If no grantor action has occurred within ninety (90) days after receipt of the rate increase request, unless grantor and grantee agree in writing to an extension of time, the request shall be deemed to have been approved.

D. Rate Regulation Criteria. Grantor shall take into consideration for rate regulation purposes all costs associated with the construction and operation of the cable communications system. Grantor may also consider any or all of the following factors in determining whether to approve, modify or disapprove grantee's requests for rate increases during the term of this franchise:

1. Grantee's substantial fulfillment of all material requirements of the franchise;

2. Quality of service, as indicated by the number and type of service complaints, grantee's response to complaints, and the results of periodic system performance tests;

3. Prevailing rates for comparable services in other cable systems of similar size and complexity;

4. Rate of return on grantee's financial investment and equity, as compared to businesses of equivalent cumulative basis for all system revenues and costs, including services such as pay-television services that may be exempt from local rate regulation. Upon request from grantor, grantee shall provide all information as shall be reasonably necessary to determine system revenues and costs;

5. Performance of grantee in introducing new services and expanding the cable system's capability, as compared to other systems of similar size and complexity.

E. Remedies for Franchise Violations.

1. In addition to the penalties for delays in construction as specified in Section 5.28.040(F), grantor reserves the right to impose the following penalties in the event grantee violates any other material provision of the franchise, provided that grantee has not commenced corrective action within thirty (30) days of service of written notice by certified mail to, or personal service on, the general manager of grantee:

a. Impose a financial penalty, not to exceed one thousand dollars ($1,000.00) per day or per incident, for grantee's individual willful and repeated violation of the franchise or failure to take corrective action with respect to a violation of any provision of the franchise;

b. Require grantee to make rate rebates or payments to the customers or classes of customers in such amount and on such basis as grantor may deem reasonable, provided, however, that payment or rebates to customers shall be made only in the event of:

i. Billing error on an individual or class basis. The refund shall be equal to the actual amount of the error,

ii. An unexcused interruption or abandonment of service in excess of forty-eight (48) hours. The rebate shall equal a pro rata portion of the subscriber monthly fee or be determined upon some other reasonable basis;

c. Require grantee to correct or otherwise remedy the violation prior to any rate increase becoming effective.

2. In the event the stated violation is not reasonably curable within thirty (30) days, the franchise will not be terminated or revoked or a penalty imposed if the grantee provides, within the thirty (30) days, a plan, satisfactory to the grantor, to remedy the violation and continues to demonstrate good faith in seeking to correct the violation.

3. In determining which remedy or remedies for grantee's violation are appropriate, grantor shall take into consideration the nature of the violation, the person or persons bearing the impact of the violation, the nature of the remedy required in order to further prevent such violations, and such other matters as the grantor may deem appropriate.

4. Within ten days after receipt of a written notice of a violation from grantor, grantee may request a hearing before the City Manager or other person designated by the City Council. Such a proceeding shall afford full due process of law and shall be held within thirty (30) days of the receipt of the request therefor.

5. The determination of the City Manager or other person designated by the City Council shall be subject to appeal to the City Council within fifteen (15) days of service of notice in writing of said determination to grantee. A notice of appeal shall be delivered to the City Clerk within this time period and shall specify the grounds for the appeal. Grantor and grantee may agree to waive the conduct of a hearing provided for in subsection (E)(4) of this section and proceed directly to a final determination by the City Council as provided for in this subdivision.

6. The City Council, in the case of an appeal or direct jurisdiction, shall hold a hearing affording grantee full due process of law. The hearing shall be set within thirty (30) days of the receipt of the request therefor.

7. The City Council, in determining any penalty, shall make written findings of fact which address the considerations referenced in subsection (E)(3) of this section.

8. Nothing herein shall prevent either the grantor or the grantee from obtaining injunctive relief to enforce the provisions of the franchise.

9. Nothing herein shall prevent grantor from conducting hearings and providing for remedies on a joint basis with other cities served by the same cable system.

F. Advance Charges, Deposits and Late Payment Charges. Grantee may require payment of charges and deposits as follows:

1. The grantee may require subscribers to pay for service in advance of the beginning of each month.

2. Nothing in this provision shall be construed to prohibit charges for initial installation and reconnection or to prohibit grantee from requiring reasonable deposits for equipment.

3. Grantee may require subscribers to pay a late payment charge on any bill not paid by its due date. Such late payment charge shall not exceed one and one-half percent of the overdue amount or fifty cents ($0.50), whichever is greater.

G. Installation and Reconnection. Except as otherwise provided in the franchise agreement, the grantee may make a charge to subscribers for the installation of service outlets and for the reconnection of service outlets. The rates for such connection or reconnection shall be authorized by the grantor as provided in subsection B of this section. The grantee may waive all or a portion of such charges for connection or reconnection, as provided in subsection B of this section.

H. Disconnection. There shall be no charge for disconnection of any installation or outlet. If any subscriber fails to pay a properly due monthly fee or charge, the grantee may disconnect the subscriber's service as follows:

1. No service shall be disconnected until the delinquent fee is sixty (60) days overdue or until ten days after written notice to the subscriber of intent to disconnect for failure to pay, whichever is later.

2. In the case of pay-cable services only, no service shall be disconnected until the delinquent fee is thirty (30) days overdue or until ten days after written notice to the subscriber of intent to disconnect for failure to pay, whichever is later.

Upon payment of the delinquent fee or charge and the payment of a reconnection charge, the grantee shall promptly reinstate the subscriber's cable service.

(Ord. 807 § 1 (part), 2000; prior code § 6706)

The grantor shall have responsibility for regulation in the following areas:

A. Administering and enforcing the provisions of the cable communications system franchise(s);

B. Coordination of the operation of government and educational channels;

C. Providing technical, programming and operational support to public agency users, such as city departments, schools and health care institutions;

D. Establishing procedures and standards for institutional operations and services, use of dedicated channels, and sharing of public facilities;

E. Planning expansion and growth of cable services;

F. Analyzing the possibility of integrating cable communications with other city, state or regional telecommunications networks;

G. Formulating and recommending long-range telecommunications policy for the City;

H. Collecting the designated franchise fees.

(Prior code § 6707)

At grantor's sole option, grantor may ensure that the public access and other community channels are governed by an independent, nonprofit corporation, termed the Community Access Corporation (CAC), such that these channels may be free of censorship, open to all residents of the City and available for all forms of public expression, community information, and debate on public issues.

(Prior code § 6708)

A. Payment to the Grantor.

1. As compensation for the franchise to be granted, and in consideration of permission to use the streets and public ways of the City for the construction, operation, maintenance and reconstruction of a cable communications system within the City, and to defray the costs of franchise regulation, the grantee shall pay to the grantor an annual amount equal to five percent of the grantee's gross annual revenues.

2. Payments due the grantor under this provision shall be computed quarterly, for the preceding quarter, as of March 31st, June 30th, September 30th and December 31st. Each quarterly payment shall be due and payable no later than thirty (30) days after the dates listed in the previous sentence. Each payment shall be accompanied by a brief report showing the basis for the computation and such other relevant facts as may be required by the grantor.

3. No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim the grantor may have for further or additional sums payable under the provisions of this permit. All amounts paid shall be subject to audit and recomputation by the grantor.

4. Following the issuance and acceptance of the franchise, the grantee shall initiate franchise fee payments to the grantor. These payments are to be considered advances of payments due in later years of the franchise inasmuch as they exceed the actual franchise payments during any year.

B. Letter of Credit. Within thirty (30) days of the effective date of the franchise, grantee shall deliver to grantor an irrevocable and unconditional letter of credit in form and substance acceptable to grantor, from a bank approved by grantor in the amount of twenty-five thousand dollars ($25,000.00). Such a letter shall be maintained on deposit throughout the term of this franchise. The use of the letter of credit by grantor to satisfy any penalties shall be in full compliance with the procedural provisions of this chapter.

C. Faithful Performance Bond. Upon the effective date of the franchise, grantee shall furnish proof of the posting of a faithful performance bond, which may be a corporate surety bond, running to the grantor, in the penal sum of three hundred thousand dollars ($300,000.00). The faithful performance bond shall be a form approved by the City Attorney. Upon demonstration by grantee to the satisfaction of grantor that all the construction to be undertaken in the City pursuant to the franchise agreement has in fact been completed and the system is fully operational, the bond shall be reduced to a sum of sixty thousand dollars ($60,000.00). Such bond for a sum of sixty thousand dollars ($60,000.00) shall be maintained by the grantee throughout the term of this franchise.

D. Damages and Defense.

1. The grantee shall hold harmless the grantor for all damages and penalties arising directly or indirectly as a result of the exercise of the franchise. These damages and penalties shall include, but shall not be limited to, damages arising out of copyright infringement, defamation, and all other damages arising out of the construction of the cable communications system authorized herein, whether or not any act or omission complained of is authorized, allowed or prohibited by this franchise.

2. The grantee shall pay all expenses incurred by the grantor in defending itself with regard to all damages and penalties mentioned in subsection (D)(1) of this section. These expenses shall include all out-of-pocket expenses, such as attorney fees, and shall also include the reasonable value of any services rendered by any employees of the grantor.

E. Liability Insurance and Indemnification. Upon the effective date of the franchise, grantee shall furnish proof that grantor and grantee have been added as named insureds to the liability insurance policy. The policy shall remain in force, in the minimum amounts of two million dollars ($2,000,000.00), in the areas of general and owner's liability and property damage. Grantee shall also provide worker's compensation coverage consistent with California statutory requirements and motor vehicle insurance coverage of two million dollars ($2,000,000.00). Insurance coverage during system construction, fire coverage and extended coverage shall all provide for one hundred (100) percent coverage of the replacement value of the assets. The insurance shall provide that grantee shall receive thirty (30) days written notice prior to any alteration of a material provision of the insurance or any reduction in coverage of the insurance by this section. Such notice shall also be required in the case of cancellation of any coverage required by this section.

The liability insurance policy shall be maintained throughout the duration of this franchise, with a copy filed with grantor.

(Prior code § 6709)

A. Right to Purchase the System. Grantor, in compliance with California law governing eminent domain and upon payment of fair market value, may condemn the franchise, property and plant of grantee.

B. Grantor shall have the right to purchase those portions of the system within the City only upon revocation or expiration of the initial terms of the franchise or any renewal or extensions thereof. Purchase price to grantor shall not include any sum for the value of the franchise and such plant and property shall be valued according to book value of all capital investments attributable thereto, less depreciation.

C. Right of Inspection of Records. There shall be kept in the grantor's offices a separate record for the franchise, which record shall show the things hereafter set forth. The grantee shall provide such information in such form as may be required by the grantor for said records:

1. The true and entire cost of construction of equipment, of maintenance and of the administration and operation thereof; the amount of stock issued, if any; the amount of cash paid in, the number and par value of shares, the amount and character of indebtedness, if any; the rate of taxes, the dividends declared; the character and amount of all fixed charges; the allowance, if any, for interest, for wear and tear or depreciation; all amounts and sources of income;

2. The amount collected annually from the City treasury and the character and extent of the service rendered therefor to the City;

3. The amount collected annually from other users of service and the character and extent of the service rendered therefor to them.

The books of records kept by the grantor shall be open to public examination at any time during the business hours of the grantor's office. The information, in addition to any further data which may be required by the grantor, shall be furnished by the grantee to the grantor upon request, and at the grantee's own cost and expense.

The grantor shall have the right to inspect all books, records, maps, plans, income tax returns, financial statements, and other like material of the grantee at any time during normal business hours.

D. Right of Inspection of Construction. The grantor shall have the right to inspect all construction or installation work performed subject to the provisions of the franchise and to make such tests as it shall find necessary to ensure compliance with the terms of this franchise and other pertinent provisions of law.

E. Right of Intervention. The grantor shall have the right of intervention in any suit or proceeding to which the grantee is party, and the grantee shall not oppose such intervention by the grantor.

F. Right to Require Removal of Property. At the expiration of the term for which the franchise is granted, or upon its revocation or expiration, as provided for herein, the grantor shall have the right to require the grantee to remove, at its own expense, all portions of the cable communications system from all streets and public ways within the City.

(Prior code § 6710)

A. Discriminatory Practices Prohibited. The grantee shall not deny service, deny access, or otherwise discriminate against subscribers, programmers or general citizens on the basis of race, color, religion, national origin, sex or age. The grantee shall strictly adhere to the equal employment opportunity requirements of the federal and state governments, as expressed in Section 76.13(a)(8) and 76.311 of Chapter 1 of Title 47 of the Code of Federal Regulations. The grantee shall comply at all times with all other applicable federal, state and city laws, and all executive and administrative orders relating to nondiscrimination.

B. Cable Tapping Prohibited. Neither the grantee, nor any other person, agency or entity shall tap, or arrange for tapping, of any cable, line, signal input device, or subscriber outlet or receiver for any purpose whatsoever.

C. Privacy and Other Human Rights. The grantee and the grantor shall maintain constant vigilance with regard to possible abuses of the right of privacy or other human rights of any subscriber, programmer or general citizen resulting from any device or signal associated with the cable communications system. The grantee shall not place in any private residence any equipment capable of two-way communications without the written consent of the residents, and will not utilize the two-way communications capability of the system for unauthorized subscriber surveillance of any kind.

D. Permission of Property Owner Required. No cable, line, wire, amplifier, converter or other piece of equipment owned by the grantee shall be installed by the grantee without first securing the written permission of the owner of any property involved. If such permission is later revoked, whether by the original or a subsequent owner, the grantee shall remove forthwith any of its equipment which is both visible and movable and promptly restore the property to its original condition.

E. Sale of Subscriber Lists Prohibited. The grantee shall not sell, or otherwise make available, lists of the names and addresses of its subscribers, or any list which identifies, by name, subscriber viewing habits, to any person, agency or entity, for any purpose whatsoever, without the specific authorization of the grantor, expressed by resolution, after a public hearing which shall be announced by written notice published in a newspaper of general circulation at least ten consecutive days before the date of the hearing.

(Prior code § 6711)

A. Revocation.

1. In addition to any rights set forth elsewhere in this chapter, the grantor reserves the right to revoke the franchise, and all rights and privileges pertaining thereto, in the event that:

a. The grantee willfully or repeatedly violates any material provision of the franchise; or

b. The grantee's construction schedule is delayed for over eighteen (18) months, due to any cause which is within the grantee's reasonable control; or

c. The grantee becomes insolvent, is involuntarily adjudged as bankrupt, or files a voluntary petition for relief under the Bankruptcy Act; or

d. The grantee is adjudged to have practiced any fraud or deceit upon the grantor and such judgment becomes final after all appeals are exhausted according to law.

2. If grantee violates any provision contained in subsection A of this section, grantor shall give written notice of the default to grantee.

3. Grantee shall be given thirty (30) days, after such written notice, to correct such default, or to commence appropriate corrective action. Such notice and period to cure need not be repeated if the same were previously provided to grantee as a prerequisite to other remedies. The franchise shall not be revoked pursuant to this section if, within the thirty (30) days, grantee provides a plan satisfactory to grantor to remedy the violation and grantee continues to demonstrate good faith in seeking to correct the violation.

4. If grantee fails to correct such default or to commence appropriate corrective action as provided in subsection (A)(3) of this section, grantor may elect to impose a penalty, as provided in subsection E of this section, or grantor may elect to terminate this franchise as follows:

a. Grantor shall hold a public hearing to consider the option of revocation of the franchise;

b. Grantor shall give grantee at least ten days advance written notice of such hearing;

c. Grantor shall publish notice of such hearing in a newspaper of general circulation in the City at least ten days in advance of such hearing;

d. Grantee shall be afforded all due process of law, including the right to appear and be heard at the hearing;

e. If after such hearing grantor determines that the franchise should be revoked, grantor shall advise grantee of its decision in writing. Grantee shall have a period of thirty (30) days, beginning the next day following written notice to grantee of such decision, within which to file any appropriate legal action. During such thirty (30) day period, the franchise shall remain in full force and effect, unless the term thereof expires sooner;

f. Absent a court order to the contrary and upon the expiration of the thirty (30) day period set forth in subsection (A)(4)(e) of this section, the grantor may by ordinance or resolution declare a forfeiture of the franchise, whereupon all rights of the holders of the franchise shall immediately be divested without a further act upon the part of the grantor, and the grantee shall upon demand of grantor forthwith remove its structure or property from the streets to such condition as the grantor may reasonably require and upon failure to do so, the grantor may perform the work and collect the costs thereof from the grantee. The costs thereof shall be a lien upon all plant and property of the grantee. Such lien shall not attach to the property of the grantee located on the poles or other utilities until removal of such property from the pole. Should grantor decide to take over and operate the system, grantee shall be compensated consistent with the provisions of Section 5.28.150.

B. Receivership. The grantor shall have the right to revoke the franchise one hundred twenty (120) days after the appointment of a receiver, or trustee, to take over and conduct the business of the grantee, whether in receivership, reorganization, bankruptcy or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of the one hundred twenty (120) days, or unless:

1. Within one hundred twenty (120) days after his or her election or appointment, such receiver or trustee shall have fully complied with all the provisions of the franchise and remedied all defaults thereunder; and

2. Such receiver or trustee, within the one hundred twenty (120) days, shall have executed an agreement, duly approved by the court having jurisdiction in the premises, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of the franchise.

C. Expiration. Upon expiration of the initial term of the franchise and consistent with subsection D of this section, grantor shall have the right, at its election to:

1. Renew or extend the franchise;

2. Invite additional franchise applications or proposals;

3. Allow the franchise to terminate without further action.

The grantee shall make it a condition of each contract entered into by it that the grantor shall have the right to exercise these options.

D. Renewal or Extension. The franchise may be renewed or extended by the grantor at any time during the term of the franchise, upon application of the grantee, in accordance with the then existing rules of the FCC, and applicable law.

1. Grantee shall submit its application for renewal at least nine months prior to the date of expiration.

2. The grantor shall schedule a hearing on the question of renewal, with such hearing to take place at least six months before expiration of the franchise. At least ten days advance written notice of such hearing shall be given to grantee and shall be published in a newspaper with local circulation. At such hearing, the grantee shall have full due process of law including the opportunity to appear and be heard.

3. Based upon information introduced at the hearing, and any other relevant information that it may obtain from the grantee, the City shall make a determination as to whether the grantee has substantially complied with material requirements of the franchise. Such determination shall be made no less than two months before the franchise expires, and a copy of the written determination supplied to grantee.

E. Continuity of Service Mandatory. It shall be the right of all subscribers to receive all available services insofar as their financial and other obligations to the grantee are honored. In the event that the grantee elects to overbuild, rebuild, modify, or sell the system, or the grantor revokes or fails to renew the franchise, the grantee shall do everything reasonable in its power to insure that all subscribers receive continuous, uninterrupted services regardless of the circumstances, during the lifetime of the franchise. In the event of purchase by the grantor, or a change of grantee, the current grantee shall cooperate with the grantor to operate the system for a reasonable temporary period, in maintaining continuity of service to all subscribers.

(Prior code § 6712)

A. Compliance with Laws. Notwithstanding any other provision of this chapter or the franchise to the contrary, the grantee at all times shall comply with all laws and regulations of the state and federal government or any administrative agencies thereof; provided, however, if any such state or federal law or regulation shall require the grantee to perform any service, or shall permit the grantee to perform any service, or shall prohibit the grantor from enforcing provisions of this chapter or the franchise, or shall prohibit the grantee from performing any service in conflict with the terms of the franchise or of any law or regulation of the grantor, then, as soon as possible following knowledge thereof, the grantee shall notify the grantor of the point of conflict believed to exist between such regulation or law and the laws or regulations of the grantor or the franchise.

If the grantor determines that a material provision of this chapter is affected by any subsequent action of the state or federal government, the grantor shall have the right to modify and/or interpret any of the provisions of this chapter to such reasonable extent as may be necessary to carry out the full intent and purpose of this chapter consistent with such regulation or law.

B. Severability. If any section of the franchise is held to be invalid or pre-empted by federal or state regulations or laws, such finding or pre-emption shall not affect the remaining provisions of the franchise except as provided in subsection F of this section.

C. Captions. The captions to sections throughout this chapter are intended solely to facilitate reading and reference to the sections and provisions of this chapter. Such captions shall not affect the meaning or interpretation of this chapter.

D. No Recourse Against the Grantor. The grantee shall have no recourse whatsoever against the grantor or its officials, boards, commissions, agents or employees for any loss, costs, expense or damage arising out of any provision or requirement of the franchise or because of the enforcement of the franchise.

E. Nonenforcement by the Grantor. The grantee shall not be relieved of its obligation to comply with any of the provisions of this permit by reason of any failure of the grantor to enforce prompt compliance.

F. Subsequent Action by State or Federal Agencies. Should the state of California, the FCC, or any other agency of the federal government subsequently require the grantee to perform or cease to perform any act which is inconsistent with any provisions of the franchise, the grantee shall so notify the grantor. Upon receipt of such notification, the grantor shall determine if a material provision of the franchise is affected. Upon such determination, the grantor shall have the right to modify or amend any of the sections of the franchise to such reasonable extent as may be necessary to carry out the full intent and purpose of the franchise. The grantor may terminate the franchise in the event the grantor determines that substantial and material compliance with the original proposed terms of the franchise has been frustrated by such state or federal government.

(Ord. 807 § 1 (part), 2000; prior code § 6713)

A. Franchise Applications. Applicants for a franchise shall submit to the grantor, or to a designated agency, written application utilizing the standardized format provided by the grantor, at the time and place designated by the grantor for accepting applications, and including the designated application fee. Any applicant which presently has an application on file with the City may modify that application to contain the provisions of this chapter.

B. Franchise Processing Fee. The grantee shall be required to reimburse the grantor for reasonable costs, including legal and consultant fees, expended in soliciting and evaluating applications, and processing the franchise award, to the extent that such costs are not recovered from application fees.

(Prior code § 6714)