Sacramento County Municipal Code Ch. 5.50 Cable Television Ordinance

The purposes of this chapter include, but are not limited to, the promotion of the general welfare of the citizens of the Sacramento Community by:

a. Establishing a master-plan for the franchising of cable television services within the Sacramento Community;

b. Establishing a regulatory framework for the administration of franchises in order to insure that the potential recreational, educational, social, economic and other advantages of cable television will in fact inure to the benefit of the Sacramento Community and the citizens thereof;

c. To provide for the unified administration of cable television franchises in order to reduce the danger that the nature and extent of services received and benefit derived therefrom will be dependent upon the jurisdiction in which a citizen of the Sacramento Community resides; and

d. Regulate the operations of Franchisees for the purpose of protecting and promoting the public health, peace, safety and welfare.

The provisions of this section shall not be deemed to confer any right upon a Franchisee which is not otherwise conferred by another express provision of this chapter.

(SCC 488 § 1, 1981)

As used in this chapter, the following terms, phrases, and words shall be ascribed the following meanings, unless the context indicates otherwise. The word "shall" is mandatory, and the word "may" is permissive. Words not defined herein shall be given their common and ordinary meanings, consistent with the context in which such words are used and the purposes of this chapter.

a. "Basic Service" shall mean:

i. A single Tier of Service provided in connection with each residential hook-up for a uniform monthly charge, if any, which includes the following:

1. Reception of all local television broadcasting stations as prescribed by applicable FCC Regulations (47 C.F.R. 76.51 through 76.67, inclusive) as said regulations exist on March 1, 1981;

2. Any additional stations which may be required by FCC Regulations enacted subsequent to March 1, 1981;

3. With respect to the Initial CATV Franchise, one of the channels made available to K.V.I.E. (in addition to the pre-existing channel operated by K.V.I.E. otherwise required to be carried), as "K.V.I.E." is defined by the Request for Proposals, if the Franchisee has proposed commitment of one or more channels to K.V.I.E. in its application for the franchise;

4. With respect to the initial CATV Franchise, one of the channels made available to the Educational Consortium, as the "Educational Consortium" is defined by the Request for Proposals, if the Franchisee has proposed commitment of one or more channels to the Educational Consortium in its application for the franchise;

5. With respect to the Initial CATV Franchise, one Access Channel, if an Access Channel is made available by a Franchisee pursuant to the provisions of Section 5.50.336 in Article 4-a; and

6. Any other or additional cable television services proposed by a Franchisee in its application to be included within Basic Service.

ii. If proposed in the application submitted by a Franchisee and prescribed by the Resolution Offering the Franchise, one or more Tiers of Service which consist of less television reception services than prescribed by "(i)", above, provided in connection with each residential hook-up for a uniform monthly charge, if any.

b. "Cable Television System" shall mean a system of antennae, cables, wires, lines, towers, waveguides, or other conductors, converters, amplifiers, headend equipment, master controls, earth stations, equipment and facilities, designed and constructed for the purpose of producing, receiving, transmitting, and distributing, audio, video and other forms of electronic or electrical signals within the Sacramento Community, including both Subscriber Networks and Institutional Networks.

A "Cable Television System" shall not include any facility which serves or will serve exclusively only subscribers in one or more multiple-unit dwellings under common ownership, control or management, one or more condominiums, a mobilehome park, or a residential subdivision with private roads, which is not installed in and does not use streets and other public and utility rights-of-way.

c. "Cable Television Commission" or "Commission" shall mean the Sacramento Metropolitan Cable Television Commission created pursuant to the provisions of Sub-Chapter 2, or any successor in interest thereof established by the County and Cities.

d. "Cities" shall mean the city of Sacramento, the City of Folsom, and the City of Galt, each of which enacted the provisions of this chapter in identical form and did not adopt a resolution disapproving selection of the Franchisee under the Initial CATV Franchise pursuant to Section 5.50.212, in Sub-Chapter 3, and any city in Sacramento County incorporated after the date that the initial franchise was issued, which enacts this chapter in identical form, as this chapter exists on the date of enactment and executes the agreement contained in Section 5.50.112.

e. "Community Use," "Community Use Programming," and "Community Use Channels" shall mean use, programming or channels for purposes of non-commercial cablecasts presented by or in behalf of a Franchisee, the County or Cities, individuals and local community non-profit organizations, which consist of topics of special interest to the Sacramento Community or elements thereof, including matters of a political, governmental, sociological, religious, educational, cultural, artistic, health oriented, ethnic, economic, recreational, charitable and philanthropic nature; a significant part of such programming having been locally produced. "Non-Commercial" means: (i) the content of such programming shall not be for the purpose of either directly or indirectly selling any product or service for private gain; and (ii) that the programming shall not be associated with or interrupted during presentation by commercial advertising or announcements presented for the purpose of selling products or services for private gain.

f. "Converter" shall mean an electronic device which converts signals to a frequency not susceptible to interference within the television receiver of a subscriber, and by an appropriate channel selector also permits a subscriber to view all signals delivered at designated converter dial locations.

g. "County" shall mean the County of Sacramento.

h. "FCC" shall mean the Federal Communications Commission and any legally appointed, designated or elected agent or successor thereof.

i. "Franchise Documents" shall, with respect to a franchise for a Cable Television System issued pursuant to the provisions of this chapter, mean the provisions of this chapter, the map defining any Imposed Service Area for the franchise as adopted by resolution, the provisions of any Request for Proposals issued pursuant to the provisions of this chapter in connection with that franchise, the provisions of the application for the franchise submitted by the Franchisee, the provisions of the resolution offering the franchise, and the provisions of the certificate of acceptance by the Franchisee of the franchise. Any amended and restated resolution regarding a franchise issued to any Franchisee, adopted subsequent to the issuance of such franchise, shall be considered one of the Franchise Documents in lieu of the resolution offering the franchise to that Franchisee.

j. "Franchisee" shall mean the party to whom a franchise to operate a Cable Television System is issued pursuant to the provisions of this chapter.

k. "Governing Body" shall mean the Board of Supervisors with respect to the County, and each City Council with respect to the Cities.

l. "Gross Revenues" shall mean all cash, credits, property of any kind or nature or other consideration derived directly or indirectly by a Franchisee, its affiliates, subsidiaries, parent, and any other person or entity in which the Franchisee has a financial interest or which has a financial interest in the Franchisee, arising from or attributable to operation of the Cable Television System, including, but not limited to: (i) revenue from all charges for those services provided on the Subscriber Network and Institutional Network (including Leased Access fees); (ii) revenue from all charges for the insertion of commercial advertisements upon the System; (iii) revenue from all charges for the leased use of studios; (iv) revenue from all charges for the installation, connection and reinstatement of equipment necessary for the utilization of the System and the provision of Subscriber and other services; and (v) the sale, exchange or use or cablecast of any programming developed for community use or institutional users. "Gross Revenues" shall include, valued at retail price levels, the value of any goods, services or other remuneration in non-monetary form received by the Franchisee or others described above in consideration for performance by the Franchisee or others described above of any advertising or other service in connection with the Cable Television System.

"Gross Revenues" shall not include: (i) any taxes on services furnished by the Franchisee which are imposed directly upon any Subscriber or User by the United States, State of California or local agency and collected by the Franchisee on behalf of the government; (ii) revenue received directly from the Franchisee by an affiliate, subsidiary or parent of the Franchisee or any other person or entity in which the Franchisee has a financial interest or which has a financial interest in the Franchisee, when the revenue received has already been included in reported Gross Revenue as received by the Franchisee; and (iii) revenue received by such an affiliate, subsidiary, parent, person or entity when the revenue received is from the sale of national advertising shown on programs distributed on a national basis by the affiliate, subsidiary, parent, person or entity and, but for this exception, that portion of the revenue attributable to broadcasts through the Cable Television System would be treated as Gross Revenues.

m. "Initial CATV Franchise" shall mean the first franchise for a Cable Television System issued pursuant to the provisions of this chapter.

n. "Institutional Network" shall mean a cable communications network used exclusively for the provision of services to businesses, schools, public agencies or other non-profit agencies in connection with the ongoing operations of such enterprises.

o. "Interactive Services" shall mean services provided to subscribers or users where the subscriber either: (i) both receives information consisting of either television or other signals and transmits signals generated by the subscriber or user or equipment under his control for the purpose of selecting what information shall be transmitted to the subscriber or user for any other purpose; or (ii) transmits signals to any other location for any purpose.

p. "Leased Access" shall mean use on a fee-for-service basis of the Subscriber Network or Institutional Network by business enterprises (whether profit, non-profit or governmental) to render services within the Sacramento Community.

q. "Monitoring" shall mean observing a communications signal, or the absence of a signal, where the observer is not the subscriber, whether the signal is observed by visual or electronic means, for any purpose whatsoever; provided that "Monitoring" shall not include systemwide, non-individually addressed sweeps of the Cable Television System for purposes of verifying System integrity, controlling return path transmissions, or billing for pay services.

r. "Sacramento Community" shall mean the entire geographical territory within the unincorporated area of the County and the corporate limits of the Cities.

s. "Streets" shall mean the surface of and the space above and below any street, road, highway, freeway, utility right-of-way or any other easement which now or hereafter exists for the provision of public or quasipublic services to residential or other properties, and in which the County or Cities are expressly or impliedly authorized or empowered to permit use for installation and operation of a Cable Television System.

t. "Subscriber" shall mean a lawful recipient of service from a Cable Television System.

u. "Subscriber Network" shall mean a cable communications network which carries television entertainment channels and Community Use Channels (including Basic Service) and may carry channels providing commercial or other non-entertainment services and Leased Access channels.

v. "Tier of Service" shall mean a grouping of program services on the Subscriber Network which is marketed by a Franchisee to Subscribers for a single monthly or other charge. "Basic Service" as defined by "(i)" under subparagraph "a" of this section shall constitute a single Tier of Service. "Basic Service" as authorized under "(ii)" of subparagraph "a" of this section shall constitute a separate and distinct tier of Service.

w. "User" shall mean a party utilizing a Cable Television System channel for purposes of production or transmission of material to Subscribers, as contrasted with receipt thereof in a Subscriber capacity.

(SCC 488 § 1, 1981; SCC 499 § 1, 1982; SCC 565 § 1, 1983; SCC 717 § 1, 1988; SCC 1095 § 1, 1997)

Except as otherwise provided by this chapter, Streets within the Sacramento Community shall not be occupied by or used for a Cable Television System except under a franchise issued pursuant to the provisions of this chapter or under a license issued pursuant to the provisions of Chapter 5.75 of this Code.

(SCC 488 § 1, 1981; SCC 690 § 2, 1987)

Any franchise issued pursuant to the provisions of this chapter, shall be deemed to:

a. Authorize utilization of the Streets for the public or quasi-public purpose of installing cables, wires, lines, and other facilities in order to operate a Cable Television System;

b. Be nonexclusive, and neither expressly nor impliedly be deemed to preclude the issuance of subsequent franchises to operate Cable Television Systems within the Sacramento Community; and

c. Be for a term prescribed by the issuing authority which shall not extend beyond December 31, 2007.

(SCC 488 § 1, 1981; SCC 604 § 1, 1984)

A franchise issued pursuant to the provisions of this chapter shall be deemed to constitute a contract between the Franchisee and the Cable Television Commission. Each Franchisee shall be deemed to have contractually committed itself to comply with the terms, conditions and provisions of the Franchise Documents, and with all rules, orders, regulations, and determinations applicable to the franchise which are issued, promulgated or made pursuant to the provisions of this chapter. The regulatory authority conferred by the provisions of this chapter, including the power to amend the provisions of this chapter as reserved under Section 5.50.038, below, shall constitute a reserved authority under the contract.

All terms, conditions and provisions of the contract shall be deemed to be embodied in the Franchise Documents, and conflicts in terms, conditions or provisions of the Franchise Documents shall be resolved as follows:

a. The express terms of this chapter shall prevail over conflicting or inconsistent provisions in any other Franchise Document;

b. The express terms of any amended and restated resolution regarding a franchise issued to any Franchisee shall prevail over conflicting or inconsistent provisions in any other Franchise Document (including any prior amended and restated resolution), except the express terms of this chapter;

c. The express terms of the resolution offering the franchise shall prevail over conflicting or inconsistent provisions in any other Franchise Document, except the express terms of this chapter and any subsequently adopted amended and restated resolution regarding the franchise;

d. The express terms of the request for proposals shall prevail over conflicting or inconsistent provisions in either the application for the franchise or the certificate or acceptance of the franchise; and

e. The express terms of the application for the franchise shall prevail over inconsistent or conflicting provisions in the certificate of acceptance of the franchise.

(SCC 488 § 1, 1981; SCC 717 § 2 1988)

The Initial CATV Franchise shall permit the operation of the Cable Television System throughout the geographic area of the entire Sacramento Community pursuant to the provisions of this chapter as the Franchise Area.

The Franchise Area for any franchise subsequently issued under the provisions of this chapter shall be defined by the Board of Directors of the Cable Television Commission.

No Franchisee shall be authorized by the provisions of this chapter to construct, install or operate a Cable Television System outside its designated Franchise Area.

Installation and extensions of and additions to Cable Television Systems and service is mandated within Franchise Areas pursuant to the terms, conditions and requirements set forth in Article 4-b of Sub-Chapter 4.

(SCC 488 § 1, 1981)

No franchise issued pursuant to the provisions of this chapter shall be deemed to expressly or impliedly authorize the Franchisee to utilize poles owned by the Pacific Gas and Electric Company, Pacific Telephone, the Municipal Utility District or any other public or private utility which are located within Streets, without the express consent of the utility.

(SCC 488 § 1, 1981)

All notices and other writings authorized or prescribed by this chapter to be "mailed", shall be deemed to have been given and served when deposited in the United States Mail, postage prepaid, and addressed, with respect to a Franchisee to any office maintained by the Franchisee within the Sacramento Community, and with respect to other parties to the last known address of such party.

Any notice or other writing authorized or required by this chapter to be "filed", shall be deemed "filed" when received in the business office of the party with whom such notice or writing is authorized or required to be "filed".

Whenever a provision of this chapter requires a public hearing to be conducted by the Board of Directors of the Cable Television Commission, notice of the time, date, place and purpose of the hearing shall be published at least once not later than 10 calendar days in advance of the date of commencement of the hearing in a newspaper of general circulation which is published within the Sacramento Community. Each Franchisee who is interested in the hearing and who is providing service on the Subscriber Network shall also, at its sole cost and expense, announce the time, date, place and purpose of the hearing on at least two channels which are included in Basic Service between the hours of 7:00 p.m. and 9:00 p.m. for five consecutive days prior to the hearing. The failure of a Franchisee to announce a public hearing in the manner herein prescribed shall not invalidate such hearing or any action taken as a result of or subsequent to the conduct thereof.

(SCC 488 § 1, 1981)

Any Franchisee or parent, subsidiary or affiliated company or agent thereof who leases either real property situated within the Sacramento Community or personal property to be located within the Sacramento Community for use in connection with the provision of services under a franchise issued pursuant to the provisions of this chapter, shall insure that each such lease contains a clause which either: (i) authorizes that lessee to assign the lease to the Cable Commission or its assignee without the consent of the lessor or payment of additional compensation by virtue of the assignment; or (ii) authorizes such Lessee to so assign such lease without payment of additional compensation by virtue of the assignment and prohibits the lessor from unreasonably withholding consent to such assignment.

(SCC 488 § 1, 1981)

With respect to the County and chartered Cities enacting this chapter, it is declared that this chapter is enacted pursuant to the authority conferred by their charters. With respect to the County and Cities it is also enacted pursuant to the police powers conferred by Article XI, Section 7 of the California Constitution for the promotion and protection of the peace, health, safety and general welfare of the citizens within their respective jurisdictions.

(SCC 488 § 1, 1981)

It is hereby declared that the unified process for the administration of franchises issued pursuant to the provisions of this chapter is necessary for protection and promotion of the convenience and welfare of all of the citizens of the Sacramento Community, and that fragmentation in administration or right to administer such franchises resulting from the future incorporation of cities within the unincorporated area of the County would be detrimental to the convenience and welfare and the purposes of this chapter.

Therefore, the incorporation of any city within the unincorporated area of the County during the initial term of any franchise issued pursuant to the provisions of this chapter shall not operate to either divest the Franchisee of its authority to install or provide services through its Cable Television System within the newly incorporated area or vest the newly created city with any administrative or other authority respecting operations by the Franchisee under the franchise except to the extent that the city becomes a member of the Commission. Until the newly incorporated area becomes a member of the Commission during the initial term of the franchise, the County and Cable Television Commission shall continue to administer the provisions of this chapter for the benefit of the inhabitants of a newly incorporated area in the same manner as if the area had not been incorporated.

Upon expiration of the initial term of a franchise, the provisions of this chapter shall cease to be applicable to that portion of the Cable Television System and the operations by the Franchisee thereof within the municipal limits of any city which is incorporated subsequent to the commencement of the initial term and which does not become a member of the Commission. The Sacramento Community shall not be deemed to include any area within the limits of a city incorporated after the date this chapter becomes effective and prior to the filing of the certificate of acceptance of any franchise unless said city becomes a member of the Commission.

(SCC 488 § 1, 1981; SCC 1095 § 2, 1997)

The annexation of unincorporated area of the County by a city which has either not enacted this chapter or is not a member of the Cable Television Commission during the initial term of any franchise issued pursuant to the provisions of this chapter shall not operate to either divest the Franchisee of its authority to install or provide services through its Cable Television System within the annexed area or vest the city with any administrative or other authority whatsoever respecting operations by the Franchisee under the franchise. During the initial term, the County, Cities and Cable Television Commission shall continue to administer the provisions of this chapter for the benefit of the inhabitants of the annexed area in the same manner as if the area had not been annexed.

Upon expiration of the initial term of a franchise, the provisions of this chapter shall cease to be applicable to that portion of the Cable Television System and the operations by the Franchise thereof within any area which has been annexed by a city that is not a member of the Commission. The Sacramento Community shall not be deemed to include any area annexed by such a municipality subsequent to the date this chapter becomes effective and prior to the filing of the certificate of acceptance of any franchise.

(SCC 488 § 1, 1981; SCC 1095 § 3, 1997)

All zoning and other land use ordinances, building, electrical, plumbing and mechanical codes, business license ordinances and all other ordinances of general application now in existence or hereafter enacted by the Governing Bodies of the County and Cities shall be fully applicable to the exercise of any franchise issued pursuant to the provisions of this chapter, and the Franchisee shall comply therewith. In the event of a conflict between the provisions of this chapter and those of such an ordinance of general application, the provisions of such ordinance of general application shall prevail.

(SCC 488 § 1, 1981)

The provisions of this chapter shall not become effective or operable unless said provisions are enacted in identical form by both the Governing Body of the County and the Governing Body of the City of Sacramento. The provisions of this chapter shall become applicable within the geographic boundaries of the other Cities, upon the enactment of the provisions of this chapter in identical form by the Governing Body of each such city.

From and after the date on which the certificate of acceptance for the Initial CATV Franchise is filed pursuant to the provisions of Section 5.50.220 in Sub-Chapter 3, no addition to, deletion from, alteration of the provisions of, repeal or other amendment of this chapter shall become effective unless such amendment or repeal is enacted by the Governing Body of the County and the Governing Body of the City of Sacramento. After enactment of the provisions of this chapter by the Governing Bodies of the Cities, no addition to, deletion from, alteration of the provisions of, repeal or other amendment of this chapter enacted by the Governing Bodies of the County and City of Sacramento shall become effective within the boundaries of any of said cities which are members of the Commission unless such amendment is enacted by the Governing Body of the particular city.

(SCC 488 § 1, 1981; SCC 1095 § 4, 1997)

Except as hereinafter provided, any franchise issued pursuant to the provisions of this chapter shall be subject and subordinate during its term to exercise of the police powers for protection and promotion of the public health, safety and welfare through amendment of this chapter as authorized by Section 5.50.036, above. In the absence of an emergency, and without the consent of the Franchisee, the following provisions of this chapter shall not be altered or repealed as applied to a franchise for which a certificate of acceptance has been filed in compliance with the provisions of Section 5.50.220 in Sub-Chapter 3 in advance of the effective date of the alteration or repeal:

a. Subparagraphs "a", "m" and "u" of Section 5.50.012 and Sections 5.50.016, 5.50.018, 5.50.034, 5.50.036, 5.50.038, and 5.50.050 in this Sub-Chapter;

b. The right to receive compensation for acquisition by the Cable Television Commission or its assignee of any of a Franchisee's property utilized in the performance of services under the franchise in accordance with the valuation standards prescribed by Sections 5.50.246 and 5.50.248 in Sub-Chapter 3;

c. The provisions relating to requirements of the Cable Television System prescribed by Sections 5.50.300 through 5.50.312, and the provisions relating to prevailing rates prescribed by Sections 5.50.316 through 5.50.326;

d. The provisions, standards, procedures and remedies relating to construction, completion and service prescribed by Sections 5.50.400 through 5.50.446, inclusive, in Article 4-b of Sub-Chapter 4;

e. The provisions relating to cable television services contained in Sections 5.50.504, 5.50.506, and 5.50.510. in Article 4-c of Sub-Chapter 4;

f. The provisions and procedures relating to the amount of, payment of, and increases in franchise fees prescribed by Sections 5.50.600 through 5.50.606 and 5.50.610 through 5.50.614 in Article 4-d of Sub-Chapter 4;

g. The provisions relating to security, surety, indemnification and insurance prescribed by Sections 5.50.700 through 5.50.708, inclusive, in Article 4-e of Sub-Chapter 4;

h. The provisions, relating to transfers and assignments prescribed by Sections 5.50.750 through 5.50.758 and 5.50.762 in Article 5-a of Sub-Chapter 5; or

i. The provisions relating to remedies prescribed by Sections 5.50.804 through 5.50.826 and 5.50.830 through 5.50.840 in Article 5-b of Sub-Chapter 5.

(SCC 488 § 1, 1981)

Any franchise issued pursuant to the provisions of this chapter shall be in the name of the Cable Television Commission as the franchisor.

(SCC 488 § 1, 1981)

The provisions of this chapter shall not be so construed as to in any manner restrict or impair the power or authority of the Governing Bodies of the County or the Cities to issue cable television franchises and/or licenses within their jurisdictional boundaries.

(SCC 488 § 1, 1981; SCC 690 § 3, 1987)

Copies of all petitions, applications, communications, and reports submitted by a Franchisee to the FCC, Securities and Exchange Commission, or any other Federal or State regulatory commission or agency having jurisdiction in respect to any matters affecting construction or operation of a Cable Television System or services provided through the System, also shall be filed simultaneously with the Clerk of the Board of Directors of the Cable Television Commission. Copies of responses or any other communications from the regulatory agencies to a Franchisee likewise shall be filed immediately on receipt with said Clerk.

(SCC 488 § 1, 1981)

The Cable Television Commission shall have the right of intervention in any suit or proceedings to which a Franchisee is a party, and the Franchisee shall not oppose such intervention by the Commission.

(SCC 488 § 1, 1981)

Except as otherwise expressly provided by this chapter, any judicial proceeding, whether for the recovery of damages or otherwise, brought for the purpose of adjudicating the validity of any provision of this chapter or amendments thereof or any provision of the other Franchise Documents shall be commenced not later than 30 calendar days following the latter of: (1) the effective date of the provisions; or (2) the accrual of the cause of action. Any such judicial proceeding brought for the purpose of adjudicating the validity of any rule, order, regulation, determination or arbitration award which purports to have been made pursuant to the provisions of this chapter or of any of the other Franchise Documents shall be commenced not later than 30 calendar days following date of adoption, issuance or making of such rule, order, regulation, determination or arbitration award or, as to the Franchisee, not later than 30 calendar days following the giving and serving of notice of said adoption, issuance or making of such rule, regulation, determination or award pursuant to the provisions of Section 5.50.024 above. No judicial proceeding shall be commenced in violation of the limitations prescribed by this section.

The provisions of this section shall not be applicable to any judicial proceeding, whether for the recovery of damages or otherwise, commenced by the Cable Television Commission, County or Cities for breach or enforcement of the provisions of this chapter or any regulation, determination or arbitration award purporting to have been issued thereunder.

(SCC 488 § 1, 1981; SCC 499 § 2, 1982; SCC 565 § 2, 1983)

Should the State of California or any agency thereof, the United States or any Federal agency, or any State or Federal Court require either the Cable Television Commission, County, Cities or a Franchisee to act in a manner which is inconsistent with any provisions of the Franchise Documents, the Board of Directors of the Cable Television Commission shall be authorized to determine whether a material provision of the Franchise Documents is affected in relation to the rights and benefits conferred by the Franchise Documents upon the Commission, County, Cities or the public. Upon such determination, the Franchise Documents shall be subject to modification or amendment to such extent as may be reasonably necessary to carry out the full intent and purposes thereof in relation to the rights and benefits of the Commission, County, Cities or the public and in relation to such State, Federal or judicial requirement. The Board of Directors of the Cable Television Commission may terminate a Franchise issued pursuant to the provisions of this chapter if it determines after consultation with the Franchisee that substantial and material compliance with the Franchise Documents in relation to the rights or benefits of the Commission, County, Cities or the public has been frustrated by such a State, Federal or judicial requirement.

(SCC 488 § 1, 1981; SCC 565 § 3, 1983)

It shall be unlawful for any person to make or use any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a Cable Television System for which a franchise has been issued pursuant to the provisions of this chapter for the purpose of taking or receiving or enabling himself or others to receive or use any television signals, radio signals, picture, program or sound, without payment to the owner of said System.

It shall be unlawful for any person, without the consent of the owner, to wilfully tamper with, remove, injure or vandalize any part of such a Cable Television System including any cables, wires, or equipment used for distribution of television signals, radio signals, pictures, programs or sound.

(SCC 488 § 1, 1981)

The provisions of Section 1.01.150, Chapter 1.01 of Title 1 of this Code shall not be applicable to the provisions of this chapter.

(SCC 488 § 1, 1981)

Notwithstanding any provision in this chapter to the contrary, if any of the Municipalities of Folsom, Isleton or Galt fail to enact the provisions of this chapter on or before December 9, 1981, the geographical territory within the limits of any such Municipality shall be deemed to be excluded from any Franchise Area and Service Area established by or under this chapter, there shall be no opportunity to offer Galt as a Proposed Service Area as otherwise authorized by Section 5.50.404 in Article 4-b of Sub-Chapter 4 should Galt fail to enact this chapter by December 9, 1981, and any and all other provisions of this chapter which impose or confer a right, privilege, duty or limitation upon any such Municipality per se or as included within the definition of "Cities" shall be deemed to be ineffective and null and void.

(SCC 488 § 1, 1981)

Sub-Chapter 2. CABLE TELEVISION COMMISSION

Pursuant to the provisions of Title 1, Division 7, Chapter 5 of the Government Code, (commencing with Section 6500), there shall be established a separate and distinct public agency to be known as the Sacramento Metropolitan Cable Television Commission (herein referred to as the "Cable Television Commission" or "Commission").

(SCC 488 § 1, 1981)

The Cable Television Commission shall be formed by and consist of, as members, the County and the Cities.

(SCC 488 § 1, 1981)

The powers and authority of the Sacramento Metropolitan Cable Television Commission shall be vested in a Board of Directors which shall consist of a minimum of the following members.

A. Five members of the Board of Directors shall be members of the Governing Body of the County.

B. One member of the Board of Directors shall be a member of the Governing Body of one of the cities within the County of Sacramento that is a member of the Commission and whose population is less than 80,000 people. The member shall be appointed by and serve at the pleasure of the Governing Bodies of the appointing cities. All member cities whose populations are each less than 80,000 shall be represented by this member of the Board of Directors.

C. So long as a city with a population less than 80,000 is a member of the Commission, three members of the Board of Directors shall be members of, appointed by and serve at the pleasure of the Governing Body of the City of Sacramento.

In the event that no city with a population less than 80,000 people is a member of the Commission, four members of the Board of Directors shall be members of, appointed by and serve at the pleasure of the Governing Body of the City of Sacramento.

D. One member of the Board of Directors for each city, other than the City of Sacramento, that is a member of the Commission and whose population is equal to or greater than 80,000 people. Each member of the Board of Directors who represents such a member city shall be a member of the Governing Board of that city and shall be appointed by, and serve at the pleasure of, the Governing Board of that City.

E. Each member of the Board of Directors shall be authorized to appoint a personal representative to attend meetings of the Board in the absence of the member, and, during such meetings, vote and exercise all other powers of the member. Such an appointment shall be effective when the member files with the Clerk of the Board of Directors a written notice executed by the member which identifies by name and residential address the personal representative who has been appointed. Personal representatives shall serve at the pleasure of the members who appoint them, and such appointments may be revoked by the filing of written notice of revocation with the Clerk of the Board of Directors signed by the member and reciting revocation of the appointment of a designated representative. In the event of removal from the Board of Directors of a member who serves at the pleasure of a Governing Body, such removal shall automatically effect removal of any personal representative which that member has appointed.

F. For purposes of this section, a city's population shall be as estimated by the California Department of Finance as of January 1 of each year for the preceding year. Modifications to Board membership based on population changes shall be made on July 1, or as soon thereafter is feasible, following the January 1 estimates provided by the Department of Finance.

(SCC 488 § 1, 1981; SCC 1095 § 5, 1997; SCC 1694 § 1, 2022)

Any member of the Board of Directors may resign by giving written notice filed with the Clerk of the Board of Directors.

If the resigning member is a member of the Governing Body of the County, the successor to that member shall be selected by and shall serve at the pleasure of the Governing Body of the County. Said successor need not be a member of the Governing Body of the County.

If the resigning member is a member of the Governing Body of the City of Sacramento, the successor to that member shall be selected by and serve at the pleasure of the Governing Body of the City of Sacramento. Said successor need not be a member of the Governing Body of the City of Sacramento if no member of said governing body is willing to serve on the Board of Directors.

If the resigning member is a member of the Governing Body of one of the member cities whose population is less than eighty thousand, the successor to that member shall be appointed by and serve at the pleasure of the Governing Bodies of the cities represented by this member. Said Successor need not be a member of the Governing Bodies of one of these cities if no member of the Governing Bodies is willing to serve on the Board of Directors.

If the resigning member is a member of the Governing Body of a member city whose population is equal to or greater than eighty thousand, the successor to that member shall be appointed by and serve at the pleasure of the Governing Body of the city represented by this member. Said Successor need not be a member of the Governing Body of this city if no member of the governing body is willing to serve on the Board of Directors.

(SCC 603 § 1, 1984; SCC 1095 § 6, 1997)

The Cable Television Commission shall become operable and be fully competent to exercise the powers and authority vested therein 31 calendar days following the date of selection of the Franchisee for the Initial CATV Franchise pursuant to the provisions of Section 5.50.210 in Sub-Chapter 3.

(SCC 488 § 1, 1981)

The purposes of the Cable Television Commission shall be as follows:

a. To administer pursuant to the terms and conditions of the Franchise Documents, the Initial CATV Franchise and any franchise subsequently issued pursuant to the provisions of this chapter;

b. To exercise any and all other powers conferred by the Franchise Documents.

c. To administer and enforce the Digital Infrastructure and Video Competition Act of 2006.

(SCC 488 § 1, 1981; SCC 1383 § 2, 2008)

The Board of Directors of the Cable Television Commission shall be authorized to form and appoint advisory and other committees of citizens, officials or representatives of concerned interests, and delegate to each committee such powers and authority vested in it by the terms of this chapter as it deems appropriate; provided that the Board of Directors shall reserve the right and authority by means of appeal or otherwise, to make the final decision upon any matter relating to issuance or termination of a franchise issued pursuant to the provisions of this chapter or the administration thereof upon which a discretionary determination is authorized or required by the provisions of this chapter.

(SCC 488 § 1, 1981)

The Sacramento Metropolitan Cable Television Commission was previously created by the County and Cities. Enactment of this chapter and amendments thereto constitutes approval by the Governing Bodies of the County and Cities of the terms of the amended and restated agreement of formation.

THIS AMENDED AND RESTATED AGREEMENT is made and entered into pursuant to the provisions of Section 6500 et seq. of the Government Code of the State of California by and between the County of Sacramento, herein referred to as "County"; and the City of Sacramento and cities of Citrus Heights, Elk Grove, Folsom, Galt, and Rancho Cordova, herein referred to as "Cities"; who do hereby mutually agree as follows:

1. Establishment. There is hereby created an organization known and denominated as the Sacramento Metropolitan Cable Television Commission, which shall be a public entity, separate and apart from the County and Cities. The Sacramento Metropolitan Cable Television Commission (hereinafter referred to as "Commission") shall be governed by the terms of this Agreement, the terms of an ordinance enacted by each agency which enters into this Agreement which is entitled "Cable Television Ordinance", and is hereinafter referred to as the "Ordinance", and by such rules as are duly passed and adopted by the Board of Directors of the Commission.

2. Board of Directors. The Commission shall be governed by and the powers of the Commission vested in a Board of Directors. The number of members of the Board of Directors, composition thereof, and tenure of Directors shall be prescribed by Sub-Chapter 2 of the Ordinance.

a. Meetings of the Board of Directors and/or such advisory or other committees as the Board may appoint, shall be government by the provisions of the Ralph M. Brown Act (Government Code Section 54950 et seq.). The Board of Directors shall establish a time and place for its regular meetings, which shall be held not less frequently than once per year.

b. A majority of the members of the Board of Directors shall constitute a quorum for the purpose of transacting business.

c. No action taken by the Board of Directors shall be effective except by duly adopted motion receiving the votes of a majority of the Directors of the Board.

d. The Board of Directors shall annually elect its Chairperson and Vice-Chairperson.

e. The Clerk of the Board of Supervisors of the County or other person retained by the Board shall serve as Clerk to the Board of Directors, shall be responsible for recordation of the official actions by the Board, and shall be the official custodian of all records of the Board of Directors.

The County may determine reasonable charges to be made against the Commission for the services of the Clerk and the Commission shall pay such charges.

3. Powers. The Board of Directors of the Commission shall be vested with the following powers:

a. To employ or retain in the name of the Commission an Executive Director and such other personnel as the Board of Directors deems appropriate. The Executive Director shall be appointed by and serve at the pleasure of the Board of Directors;

b. To make and enter into contracts in the name of the Commission as authorized by or in order to carry out the objects or purposes of this Agreement or the Ordinance, including, but not limited to, contracts with the County providing for provision by County personnel of services for the Commission and reimbursement of the County by the Commission of the costs thereof;

c. To acquire in the name of the Commission, take title to, hold and dispose of real and personal property;

d. To incur in the name of the Commission debts, liabilities and obligations, which shall not constitute debts, obligations or liabilities of any of the member agencies;

e. To accept in the name of the Commission grants, gifts and donations in the public interest to carry out the purposes and functions of the Commission;

f. To establish and provide for the payment of reasonable compensation to its members or their personal representatives for performance of the duties of office; and

g. To exercise such other powers as are expressly conferred by the provisions of this Agreement or the Ordinance.

4. Limitations. Pursuant to the provisions of Government Code section 6509, "the powers of the Commission are subject to the restrictions upon the manner of exercising such powers of one of the designated member agencies." For such purposes, the City of Sacramento is hereby designated.

5. Budget. Prior to July 1st of each fiscal year, the Board of Directors shall adopt a preliminary budget. Prior to September 1st of each fiscal year, said Board shall adopt a final budget.

6. Payments. Not later than the first day of August of each year during the term of this Agreement, the Commission shall distribute to the County and Cities who are members of the Commission the difference between: (i) the revenue required to finance the costs of operations incurred in accordance with the Commission's Budget (including a reserve for contingencies) for the fiscal year ending on the prior June 30; and (ii) the revenues from franchise fees actually received by the Commission for the same fiscal year. Revenues from sources other than franchise fees shall be utilized and distributed as required by the source of the funds.

The franchise fees shall be paid to the County and Cities who are members of the Commission in the same proportion as the ratios which the population of the unincorporated area of the County and incorporated area of the Cities bear to the total population of Sacramento County, excluding the City of Isleton, as disclosed by the most recent Federal Decennial Census and as updated by the California Department of Finance January 1st of each calendar year.

7. Treasurer. The Treasurer of the County shall be the depository of funds of the Commission, and said Treasurer shall be the ex officio Treasurer of the Commission.

The Treasurer shall receive and have custody of and disburse Commission funds on the warrant of the Auditor and shall make disbursements authorized by this Agreement. The Treasurer shall invest Commission funds in accordance with the general law. All interest collected on Commission funds shall be accounted for and posted to the account of said funds.

The County may determine reasonable charges to be made against the Commission for the Services of the Treasurer, and the Commission shall pay such charges.

8. Auditing. The Auditor of the County shall be the ex officio Auditor of the Commission, and shall draw warrants against the funds of the Commission when the demands are approved by the Executive Director or his designee. At the close of each fiscal year, as provided in Government Code section 6505, the Directors may contract with a public accountant or certified public accountant to make an audit of the accounts and report of the Commission.

The Auditor shall establish and maintain such funds and accounts as are deemed necessary to account for and report on receipts and disbursements. The Commission shall keep such additional records and accounts which are deemed necessary to account for and report on sources of funds, expenditures, grants and programs as may be required by good accounting practices. The books and records of the Commission shall be open to inspection at all reasonable times by representatives of the member agencies.

The County may determine reasonable charges to be made against the Commission for the services of the Auditor, and the Commission shall pay such charges.

9. Term. Except as hereinafter provided, this Agreement shall terminate and the Commission shall be deemed dissolved upon a two-thirds vote of the member agencies. Notwithstanding the foregoing, a member agency may withdraw from the Commission with at least one year's prior written notice. Upon withdrawal, the member agency shall be liable for its proportional share of Commission liabilities, including any retirement benefits obligations, in the same proportion as distributions to member agencies have most recently been made pursuant to the provisions of Paragraph 6, above. Such member agency shall not receive or have any right to any share of Commission assets.

10. Disposition of Assets. Upon dissolution of the Commission, its remaining assets, after satisfying all liabilities, including any retirement benefits obligations, shall be distributed to member agencies in the same proportion as distributions to member agencies have most recently been made pursuant to the provisions of Paragraph 6, above unless the member agencies agree to a different distribution. Any real property owned by the Commission shall, in advance of dissolution, be conveyed by the Board of Directors to member agencies as tenants in common with proportional interests equal to the proportion of distributions most recently made pursuant to the provisions of said Paragraph 6 unless the member agencies agree to a different distribution.

11. Debts. Except to the extent provided by law, the debts, liabilities and obligations of the Commission shall not constitute any debts, liabilities or obligations either jointly or severally of the County or any city.

12. Amendment. This Agreement may be amended by written contract approved by and executed in behalf of the Governing Bodies of each member agency. No Franchisee or other person or entity shall be deemed to either expressly or impliedly be a party to this Agreement, a third party beneficiary thereof, or to have any interest which precludes amendment of the terms of this Agreement in any manner in which the Governing Bodies of the member agencies, in their discretion, may mutually agree.

IN WITNESS HEREOF the parties hereto have approved and executed this Agreement as follows.

(SCC 488 § 1, 1981; SCC 556 § 1, 1983; SCC 1340 § 1, 2006; SCC 1694 § 2, 2022)

Any city within Sacramento County that wishes to become a member of the Commission shall:

a. Enact this chapter in a form identical to the form of this chapter as it exists on the date the City enacts this chapter.

b. Adopt or indicate its acknowledgment and agreement to, as applicable, all other applicable ordinances and resolutions including but not limited to the Amended and Restated Franchise Resolution, as amended.

c. Execute the agreement of formation as set forth in Section 5.50.112 of this chapter, as amended to add the joining city.

(SCC 1095 § 7, 1997)

Sub-Chapter 3. ISSUANCE AND RENEWAL OF FRANCHISES

Except with respect to renewal of a pre-existing Franchisee, no franchise to operate a Cable Television System shall be issued within the Sacramento Community except pursuant to a request for proposals and selection of the Franchisee on the basis of any proposals submitted in response to the request.

(SCC 488 § 1, 1981)

The request for proposals for the Initial CATV Franchise shall be approved and issued by the Governing bodies of the County and Cities. The request for proposals for franchises subsequently issued under the provisions of this chapter shall be approved and issued by the Board of Directors of the Cable Television Commission.

(SCC 488 § 1, 1981)

The request for proposals shall identify bidding alternatives vested in applicants by the terms of this chapter, establish the procedure for submission of applications, consideration of applications, selection of the successful applicant and issuance of the franchise, establish fees to be paid by applicants and the Franchisee to cover costs of preparation, solicitation, selection and award, and prescribe such terms, conditions and requirements relating to the franchise consistent with the express provisions of this chapter as the issuing authority, in its discretion, may determine.

(SCC 488 § 1, 1981)

Applications for a franchise submitted in response to a request for proposals shall be sealed at the time of submission by an applicant. Prior to the deadline for submission of applications, it shall be unlawful for any applicant and any officer, agent, or employee thereof to, whether directly or indirectly, exchange information concerning proposals, enter into any agreement or understanding, or take any other action for the purpose of reducing or eliminating competition among applicants in the selection process.

(SCC 488 § 1, 1981)

For each franchise issued pursuant to the provisions of this chapter, one or more environmental analysis shall be undertaken pursuant to the provisions of the California Environmental Quality Act commencing at Section 21000 of the Public Resources Code. The provisions of this chapter, requests for proposals, and resolution offering the franchise shall be subject to amendment for the purpose of implementing any changes dictated by the environmental analysis.

(SCC 488 § 1, 1981)

The Franchisee for the Initial CATV Franchise shall be tentatively selected by the Governing Body of the County and the Governing Body of the Municipality of Sacramento as a combined issuing authority in accordance with the following procedure.

A public hearing on one or more dates shall be held by the Governing body of the County and the Governing Body of the Municipality of Sacramento sitting jointly for the purpose of receiving presentations by the applicants for the franchise and comments from the public. Notice of the time, date, place and purpose of the hearing shall be given in the manner prescribed by Section 5.50.024 in Sub-Chapter 1, and mailed to each applicant.

After the conclusion of the public hearing, balloting for selection of the Franchisee shall be conducted jointly by the Governing Bodies of the Municipality of Sacramento and County. The joint balloting shall take place either during the meeting at which the public hearing is closed or during a separately scheduled meeting. In any event, the joint balloting shall be conducted solely during a single meeting of the Governing Bodies meeting jointly. The failure of a member of either Governing Body to be present during a portion or the entirety of the public hearing shall not be deemed to disqualify that member from voting in the joint balloting.

During the joint balloting the applicant who first receives three votes by members of the Governing Body of the County and, during the same balloting five votes by members of the Governing Body of the Municipality of Sacramento shall be deemed to have been selected as the Franchisee for the Initial CATV Franchise.

The joint balloting shall be conducted as follows:

a. Each member of the Governing Bodies present shall simultaneously cast a written, secret ballot which contains the name of the voting member and name of the applicant for whom the vote for selection is cast. The clerk of each Governing Body shall announce the votes immediately following the balloting. The announcement shall include the name of each voter and identification of the applicant for whom the ballot was cast;

b. If as a result of the first balloting the Franchisee is not selected a second balloting shall be conducted in the same manner as the first, and announced in the same manner as the first;

c. If as a result of the second balloting a Franchisee has not been selected, a third balloting shall be conducted in the same manner as the first two, with the following exception. The applicant who received the lowest combined number of votes on the second balloting shall be deemed eliminated from competition, and no vote on the third balloting may be cast for that applicant;

d. If as a result of the third balloting a Franchisee has not been selected, a fourth balloting shall be conducted in the same manner as the third, with the following exception. The applicant who received the lowest combined number of votes on the third balloting shall also be deemed eliminated from competition, and no vote on the fourth balloting may be cast either for that applicant or the applicant who was eliminated from the third balloting; and

e. If as a result of the fourth balloting a Franchisee has not been selected, a fifth balloting shall be conducted in the same manner as the fourth, with the following exception. The applicant who received the lowest combined number of votes on the fourth balloting shall also be deemed eliminated from competition, and no vote on the fifth balloting may be cast either for that applicant or the applicants who were eliminated from the third and fourth balloting.

Any member of the Governing Bodies shall be authorized to cast a vote of abstention during a particular balloting, and such a vote shall not prevent the member from casting a vote in favor of a particular applicant on any later ballot.

If as a result of the fifth balloting a Franchisee has not been selected, new balloting shall be conducted in exactly the same manner as prescribed by Subparagraphs "a" through "e", above, and applicants disqualified from competition during balloting initially conducted pursuant to said Subparagraphs shall not be disqualified during the subsequent balloting conducted pursuant to said Subparagraphs except in accordance with those Subparagraphs during the subsequent balloting.

If as a result of the fifth balloting during the subsequent balloting a Franchisee has not been selected, further repetitive balloting may be conducted pursuant to the provisions of Subparagraph "a", above. Applicants previously eliminated from competition shall not be deemed eliminated during such further balloting pursuant to Subparagraph "a".

The meeting during which the joint balloting occurs shall be subject to periodic recess for periods not exceeding 15 minutes more or less, in duration, and shall not be subject to continuance to a later time or date. Either Governing Body shall be authorized to separately adjourn the meeting by an affirmative vote of a majority of the members of that Body. If one or both of the Governing Bodies adjourn the meeting prior to selection of the Franchisee, the vote upon the motion for adjournment shall be deemed to constitute a rejection of all applications, and no franchise shall be issued pursuant to that request for proposals.

(SCC 488 § 1, 1981)

Not later than 30 calendar days after selection of the Franchisee for the Initial CATV Franchise pursuant to the provisions of Section 5.50.210, above, any of the Governing Bodies of the Municipalities of Folsom, Isleton or Galt which have adopted this chapter may disapprove the selection by resolution duly adopted by the disapproving Governing Body. In the event of adoption of such a resolution the Initial CATV Franchise shall not be applicable to the geographical area within the boundaries of that Municipality, the Franchise Area shall be deemed to exclude such geographical territory, the Municipality shall be deemed to have withdrawn its membership from the Cable Television Commission, and the Franchisee shall, in advance of adoption of a resolution offering the franchise, redesign the Cable Television System proposed in the application to eliminate installation thereof within the disapproving Municipality.

In the event such a resolution is not adopted by the Governing Body of one or more of the three Municipalities which have enacted this chapter, the Board of Directors of the Cable Television Commission shall be deemed fully empowered to issue the Initial CATV Franchise, and such franchise shall be deemed to be fully applicable within the geographic territory of such Municipality.

(SCC 488 § 1, 1981)

The Board of Directors of the Cable Television Commission shall tentatively select all Franchisees for franchises issued pursuant to the provisions of this chapter, except the Franchisee for the Initial CATV Franchise. Prior to tentative selection the Board shall conduct a public hearing for the purpose of receiving presentations from the applicants and comments from the public. Notice of the hearing shall be given in the manner prescribed by Section 5.50.024 in Sub-Chapter 1, and mailed to the applicants.

Between the date of tentative selection of a Franchisee and approval of the resolution offering the franchise, the Governing Bodies of the County and Municipality of Sacramento, or subcommittees thereof, sitting jointly with respect to the initial CATV Franchise, and the Board of Directors of the Commission, or a subcommittee thereof, with respect to any other franchise, shall conduct a public hearing for the purpose of receiving comments from proposed recipients of services, resources or benefits in relation to the determinations required by Section 5.50.344 in Article 4-a of Sub-Chapter 4. Notice of the hearing shall be given in the manner prescribed by Section 5.50.024 in Sub-Chapter 1, and mailed to the tentative selectee and all proposed recipients as identified in the application by the tentative selectee and pursuant to the provisions of said Section 5.50.344.

With respect to the Initial CATV Franchise, the tentative selection shall not become final until the Governing Bodies of the Municipality of Sacramento and County have approved identical Resolutions offering the franchise. The Resolution offering the franchise approved by the Governing Bodies shall be adopted without change by the Board of Directors of the Commission pursuant to Section 5.50.218, below. The Board of Directors shall not be authorized to adopt a resolution offering the Initial CATV Franchise unless such resolution has been approved in advance by said Governing Bodies.

With respect to any franchise issued pursuant to the provisions of the Chapter other than the Initial CATV Franchise, the tentative selection of the Franchisee shall not become final until the Board of Directors of the Commission adopts the resolution offering the franchise pursuant to Section 5.50.218, below.

If a tentative selection has not been made within nine months following the deadline for submission of applications established by a request for proposals, all applications shall be deemed rejected, and no franchise shall be issued pursuant to that request for proposals.

At any time prior to adoption of the resolution offering the franchise pursuant to Section 5.50.218, below, either the Governing Body of the County or Municipality of Sacramento with respect to the Initial CATV Franchise, or the Board of Directors of the Commission with respect to any other franchise to be issued under this chapter, may reject the tentative selectee.

If the resolution offering the franchise has not been adopted within six months following the date of tentative selection of a Franchisee, the tentative selectee shall be deemed to have been rejected.

If for any reason, the tentative selectee shall be deemed to have been rejected or the Resolution Offering the Franchise shall be deemed to have been repealed pursuant to provisions of these franchise documents, the Governing Bodies of the County and the Municipality of Sacramento with respect to the Initial CATV Franchise, or the Board of Directors of the Commission with respect to any other franchise to be issued under this chapter, may select a new tentative selectee pursuant to the procedures set forth in this chapter from among those applications previously submitted and may offer a franchise pursuant to the request for proposals by which the applications were solicited.

(SCC 488 § 1, 1981; SCC 516 § 1, 1982; SCC 537 § 1, 1983; SCC 556 § 2, 1983)

Determination of whether a request for proposals will be issued shall be vested within the exclusive discretion of the issuing authority. Upon the receipt of applications for a franchise to operate a Cable Television System, the issuing authority may, in its sole discretion, either award a franchise to the successful applicant or reject all applications. Selection of the successful applicant and party to whom a franchise will be issued shall be vested within the exclusive discretion of the issuing authority, and may be made upon the basis of such factors or criteria as the issuing authority, in its sole discretion, may elect.

(SCC 488 § 1, 1981)

Each franchise issued pursuant to the provisions of this chapter shall be issued by and in the name of the Board of Directors of the Cable Television Commission as the issuing authority. A franchise shall be offered to the successful applicant by resolution duly adopted by the Board of Directors of the Cable Television Commission. The resolution may prescribe terms, conditions, or requirements respecting the franchise which are in addition to those set forth in this chapter, but which are not inconsistent with the express terms of this chapter. The resolution may also prescribe terms, conditions or requirements respecting the franchise which are in addition to or in conflict with the provisions of the request for proposals and application by the party to whom the resolution offers the franchise.

(SCC 488 § 1, 1981)

The resolution offering the franchise shall be deemed repealed 30 calendar days after its adoption unless not later than the thirtieth (30th) day following adoption of the resolution the party to whom the franchise is offered files a (1) certificate in writing which expressly and unconditionally accepts the franchise in compliance with terms, conditions and requirements of the resolution, application, request for proposals and this chapter. The certification shall be signed by a person duly authorized to act in behalf of the Franchisee, shall be notarized, shall have attached thereto a (2) certified copy of an order by the Board of Directors of the Franchisee directing execution and filing of the certification, and shall be (3) accompanied by any fee required by the request for proposals, and (4) the performance bond, (5) security deposit and (6) policy or policies of insurance prescribed by Sections 5.50.700, 5.50.702, and 5.50.706, respectively, in Article 4-e of Sub-Chapter 4, and (7) the documents required by Section 5.50.764 in Article 5-a of Sub-Chapter 5. The certification and accompaniments shall be filed with the Clerk of the Board of Directors of the Cable Television Commission. A certification which constitutes a qualified acceptance or places other limits or conditions thereon, shall be deemed to be a nullity and the resolution shall be deemed to be repealed and all applications rejected. The 30 day period for acceptance prescribed by this section may be extended either prior or subsequent to its expiration by the Board of Directors of the Commission through express action which prescribes the period of extension.

Filing of the certification in the manner and within the time prescribed above shall effect issuance of the Initial CATV Franchise. With respect to any franchise other than the Initial CATV Franchise, the procedure prescribed above shall effect issuance of the franchise, unless issuance is disapproved pursuant to the provisions of Section 5.50.222, below.

(SCC 488 § 1, 1981; SCC 556 § 3, 1983)

Not later than 30 calendar days after certification of acceptance of any franchise other than the Initial CATV Franchise, issuance of the franchise may be disapproved by resolution adopted by the Governing Body of any directly affected Agency. The County and Municipalities of Sacramento, Folsom, Isleton and Galt will be deemed to be directly affected if the Franchise Area for the franchise would include territory within their jurisdictions.

Adoption of such a resolution shall be deemed to nullify the resolution offering the franchise and certification of acceptance, and all applications shall be deemed rejected.

(SCC 488 § 1, 1981)

The term of the Initial CATV Franchise shall be 20 years from the date of filing of the certificate of acceptance pursuant to the provisions of Section 5.50.220, above. The term of any franchise issued pursuant to the provisions of this chapter other than the Initial CATV Franchise shall be as prescribed by the Board of Directors of the Cable Television Commission in its sole discretion, and set forth in the request for proposals; provided that no such franchise shall expire later than December 31, 2007.

(SCC 488 § 1, 1981; SCC 556 § 4, 1983)

Any franchise issued pursuant to the provisions of this chapter, may be renewed by the Cable Television Commission upon such terms, conditions and requirements as the Commission, in its discretion, may prescribe for a period which does not exceed the term of the agreement of formation of the Commission as prescribed by Paragraph 9, thereof.

(SCC 488 § 1, 1981)

A Franchisee who desires to renew its franchise shall file a written request for renewal with the Clerk of the Board of Directors of the Cable Television Commission not later than 48 calendar months prior to the date of expiration of the franchise. The request for renewal shall include the following:

a. A statement of the period of renewal proposed by the Franchisee;

b. A description of any improvements in the Cable Television System and in services proposed by the Franchisee in the event the franchise is renewed;

c. Any changes in the terms, conditions or requirements of the franchise proposed by the Franchisee to be applicable during the period of renewal; and

d. Such other and further information as the Commission may request.

(SCC 488 § 1, 1981)

The Board of Directors of the Cable Television Commission shall schedule a public hearing upon the request for renewal to commence not later than 180 calendar days after request is filed. Notice of the hearing shall be given in the manner prescribed by Section 5.50.024 in Sub-Chapter 1.

The Commission shall be authorized to retain a consultant to provide information and advice respecting any issues raised by the request for renewal.

(SCC 488 § 1, 1981)

Not later than one year after a request for renewal is filed, the Board of Directors of the Cable Television Commission shall decide whether renewal of the franchise will be offered to the Franchisee. Decision as to whether renewal will be offered to the Franchisee, shall, except as provided by Section 5.50.238, below, be vested within the sole discretion of the Board of Directors of the Commission, shall be made on the basis of such factors or criteria as the Board of Directors of the Commission may in its discretion elect, and upon such terms, conditions or requirements as the Board of Directors in its discretion may prescribe.

If the Board of Directors of the Commission fails to decide whether to offer renewal of the franchise to the Franchisee within the time prescribed above, the request for renewal shall be deemed denied and the franchise shall terminate at the expiration of its terms.

(SCC 488 § 1, 1981)

In the event the Board of Directors of the Cable Television Commission decides to offer renewal to the Franchisee, it shall, not later than one year after the request for renewal is filed, adopt a resolution offering renewal of the franchise to the Franchisee. The resolution may prescribe terms, conditions or requirements respecting the franchise which are in addition to those set forth in this chapter, but which are not inconsistent with the express terms of this chapter. The resolution may also prescribe terms, conditions or requirements respecting the franchise which are in addition to or in conflict with the provisions of the request for renewal and/original franchise resolution. In the event of a conflict between the provisions of the request for renewal and the provisions of the resolution adopted pursuant to this section, the provisions of the resolution shall prevail. In the event of a conflict between the provisions of the original franchise resolution and the provisions of the resolution adopted pursuant to this section, the provisions of the later resolution shall prevail.

(SCC 488 § 1, 1981)

The resolution offering renewal shall be deemed repealed and the request for renewal rejected 20 calendar days after its adoption unless not later than the twentieth (20th) day following adoption the Franchisee files a certification in writing which expressly and unconditionally accepts renewal of the franchise in compliance with the terms, conditions and requirements of the resolution, request for renewal and this chapter. The certification shall be signed by a person duly authorized to act in behalf of the Franchisee, shall be notarized, shall have attached thereto a certified copy of an order by the Board of Directors of the Franchisee directing execution and filing of the certification, and shall be accompanied by the performance bond, security deposit and policy or policies of insurance prescribed by Sections 5.50.700, 5.50.702, and 5.50.706, respectively, in Article 4-e, Sub-Chapter 4, and the documents required by Section 5.50.764 in Article 5-a of Sub-Chapter 5. The certification and accompaniments shall be filed with the Clerk of the Board of Directors of the Cable Television Commission. A certification which constitutes a qualified acceptance or places other limits or conditions thereon shall be deemed to be a nullity and the resolution shall be deemed to be repealed and the request for renewal denied. The 20 day period for acceptance prescribed by this section may be extended either prior or subsequent to its expiration by the Board of Directors of the Commission through express action which prescribes the period of extension.

Filing of the certification in the manner and within the time prescribed above shall renew the franchise, unless renewal is disapproved pursuant to the provisions of Section 5.50.238, below.

(SCC 488 § 1, 1981)

Not later than 30 calendar days after certification of acceptance of renewal of a franchise, the County and Cities shall be authorized to disapprove renewal.

a. If the Governing Body of either the County or City of Sacramento adopts a resolution disapproving renewal of the franchise within the time prescribed above, the resolution adopted by the Board of Directors of the Cable Television Commission offering renewal and certification of acceptance thereof by the Franchisee shall be deemed null and void, the request for renewal deemed denied, and the franchise shall terminate upon the expiration of its term.

b. If the Governing Body of either of the Municipalities of Folsom, Isleton or Galt adopt a resolution disapproving renewal with the time prescribed above, renewal of the franchise shall nevertheless be effective in all areas of the Sacramento Community except within the geographical limits of the municipality so disapproving, upon the expiration of the original term of the franchise the Franchisee shall be required to remove that portion of the Cable Television System which is situated in the Streets of the disapproving municipality as, to the extent, and upon such terms and conditions as the Governing Body of the disapproving Municipality may prescribe, the disapproving Municipality shall immediately cease to be a member of the Cable Television Commission, the Governing Body of the disapproving Municipality shall thereafter be authorized to issue other franchises to operate Cable Television Systems within its geographical boundaries, and the Cable Television Commission shall not thereafter be authorized to issue or renew within the geographical boundaries of the disapproving municipalities.

(SCC 488 § 1, 1981)

In consideration of the granting of the initial CATV Franchise, the Franchisee agrees, by the filing of the Certificate of Acceptance, that, should the discretion of the Cable Television Commission under Section 5.50.226, above, to prescribe terms, conditions and requirements for any renewal of the Initial CATV Franchise be affected, restricted, abridged, limited or impaired in any manner whatsoever by any Federal or State law, regulation or judicial decision, any renewal, extension or continuation of the Initial CATV Franchise shall nonetheless be upon not less than the same terms, conditions and requirements as those applicable to the Initial CATV Franchise, provided that, in any instance in which the Franchise Documents require the payment of a fixed monetary amount, said amount shall be increased for such renewal, extension or continuation period by a percentage equal to the percentage increase in the Consumer Price Index for all urban consumers published by the United States Department of Labor for the San Francisco-Oakland Bay Area over a period from the date of the Franchisee's application for the Initial CATV Franchise to the inception of the renewal, extension or continuation period.

(SCC 565 § 4, 1983)

The Cable Television Commission shall have the right to purchase real and personal property as described by Section 5.50.242, below, which is owned or in which an interest is held by the Franchisee, any parent company of the Franchisee, any subsidiary of the Franchisee or any other entity in which the Franchisee, its parent company or its subsidiary has a financial interest and which is utilized to provide service under the franchise. Such right shall not arise except and shall be exercisable under the following circumstances:

a. In the event of termination of a franchise in advance of the expiration of its term pursuant to the provisions of Sections 5.50.818 through 5.50.826 in Article 5-b of Sub-Chapter 5;

b. At the expiration of the term of a franchise, if the franchise is not renewed to the Franchisee by the Commission pursuant to the provisions of Sections 5.50.226 through 5.50.238, above.

(SCC 488 § 1, 1981; SCC 565 § 5, 1983)

The property which is subject to purchase by the Cable Television Commission shall consist of the following:

a. The Cable Television System;

b. Land, buildings and other improvements situated within the Sacramento Community and utilized by the Franchisee to provide services under the Franchise, including studio facilities;

c. Cameras and other studio production equipment; mobile production equipment; vehicles for services and repairs; inventories of materials, supplies and parts; tools; and other personal property utilized within the Sacramento Community to provide services under the franchise and which the Board of Directors determines is peculiarly designed for that purpose; and

d. Books, accounts and records relating to the Franchisee's business, including subscriber lists.

(SCC 488 § 1, 1981)

The right to purchase as prescribed by Section 5.50.240, above, may be exercised by the Cable Television Commission for public ownership and use by the Commission, in behalf of a third party, or by any party to whom the Commission may assign the right. The Commission shall have the right to assign the right to purchase to any third party at any time prior to payment for the purchase and transfer of titles. Written notice of any such assignment shall be mailed to the Franchisee. Such an assignee shall, subsequent to the date of assignment, be vested with any and all discretion respecting purchase which is vested in the Board of Directors of the Commission.

(SCC 488 § 1, 1981)

Except to the extent inconsistent with the express provisions of this section through Section 5.50.260, below, the words in this section shall be ascribed the meanings and the appraisal and valuation standards, methodology, approaches and processes respecting determination of the amount to be paid for property which the Cable Television Commission or its assignee is entitled to purchase shall comply and be consistent with those set forth in that 1975 publication entitled Real Estate Appraisal Terminology, issued by the Center for Real Estate and Urban Economic Studies at the University of Connecticut, compiled and edited by Byrl N. Boyce, Ph.D., sponsored jointly by the American Institute of Real Estate Appraisers and Society of Real Estate Appraisers.

As used in this section through Section 5.50.260, below, the following terms shall be ascribed the following meanings:

a. "Book Value" shall mean the capital amount at which property is shown on the books of account consisting of original cost, less reserves for depreciation which for purposes of application of this definition shall be calculated on a straight-line basis for a period of 15 years, plus additions to capital.

b. "Market Value" shall mean the price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus.

c. "Replacement Cost" shall mean the direct cost of construction at current prices of an improvement having utility and technological capacity and function equivalent to the improvement being appraised but built with modern materials and according to current standards, design and layout; less depreciation and obsolescence from physical, functional and economic causes.

d. "Going Concern Value" shall mean the benefits that attach to the business as a result of its location within the Franchise Area, the Franchisee's reputation among Subscribers or potential Subscribers for dependability and quality of service, and any other circumstances resulting in probable retention of old Subscribers or acquisition of new Subscribers; provided that no value shall be assigned to either the franchise itself or any right, privilege or expectancy arising to the Franchisee out of the right to transact business under the franchise, and particularly no value shall be allowed for any increase in value arising out of any expectation of revenues from the Cable Television System beyond the termination date or expiration date of the franchise, whichever is sooner.

(SCC 488 § 1, 1981; SCC 565 § 6, 1983)

The property which is purchased shall be valued as follows:

a. In the event the right to purchase is exercised pursuant to the contingency prescribed by Subparagraph "a" in Section 5.50.240, above, as a result of termination of a franchise on grounds identified by Section 5.50.818 in Article 5-b of Sub-Chapter 5, the value of the Cable Television System, personal property and improvements attached to land to be acquired shall be solely based on the Book Value of the tangible assets, and the value of land owned by the seller or in which the seller has a leasehold interest with option to purchase shall be based upon the original cost thereof, no other or further value to be assigned for the tangible and intangible assets acquired.

b. In the event the right of purchase is exercised pursuant to any contingency prescribed by this chapter other than those specified in Sub-Paragraph "a", above, the value of all tangible assets acquired shall be the Replacement Cost and the value of intangible assets acquired shall be the Going Concern Value.

When real or personal property subject to the purchase is leased, the lease shall be subject to assignment to the Cable Television Commission or its assignee, as prescribed by Section 5.50.026 in Sub-Chapter 1, above, and except as otherwise provided above no value shall be assigned to such property.

No value or benefits shall be assigned to the books, accounts or records, including subscriber lists, utilized in connection with the Franchisee's business pursuant to valuation under Subparagraph "a" of this section.

A Franchisee shall not be entitled to relocation costs, and any right to such costs authorized or prescribed by law shall be deemed to have been waived by filing of the Certificate of Acceptance of the Franchise.

(SCC 488 § 1, 1981; SCC 556 § 5, 1983; SCC 565 § 7, 1983)

The date of valuation for purchase pursuant to the provisions of this chapter shall be the day immediately following the date of expiration or termination of the franchise.

(SCC 488 § 1, 1981)

Proceedings for the acquisition by the Cable Television Commission or its assignee under this chapter shall be commenced by written notice mailed to the Franchisee of a request by the Commission or its assignee for an inventory of the Franchisee's property. Such a notice shall not be mailed earlier than the following dates:

a. The date a determination by the Board of Directors of the Commission to terminate the franchise becomes final under Sections 5.50.822 or 5.50.824 in Article 5-b of Sub-Chapter 5, when the purchase is made pursuant to the contingency prescribed by Subparagraph "a" of Section 5.50.240, above;

b. The date of a determination made pursuant to the provisions of Section 5.50.232, above, by the Board of Directors of the Commission not to renew the franchise, or the date renewals deemed denied, when the purchase is made pursuant to the contingency prescribed by Subparagraph "b" of Section 5.50.240, above; or

c. The date of a determination made pursuant to the provisions of Section 5.50.758 in Article 5-a of SubChapter 5 by the Board of Directors of the Commission to purchase the property, when the purchase is made pursuant to the contingency prescribed by Subparagraph "c" in Section 5.50.240, above.

(SCC 488 § 1, 1981)

Not later than 30 calendar days after the date of mailing of the notice of request for inventory, the Franchisee shall file with the Clerk of the Board of Directors of the Cable Television Commission a written inventory which includes the following:

a. A complete plan, with specifications, of the entire Cable Television System installed at any time during the term of the franchise;

b. An identification of all real property which is subject to the right of acquisition by the Commission or its assignee, showing the address and legal descriptions thereof, and including a description of all buildings (including the square footage thereof) and other improvements thereon;

c. A list of all cameras and other studio production equipment; mobile production equipment; office and other furnishings; vehicles for service and repairs; inventories of materials, supplies and parts; tools; and other personal property utilized within the Sacramento Community to provide services under the franchise (such lists shall show the manufacturers, model and serial numbers, dates or manufacture and dates of acquisition of such property); and

d. Copies of all leases, chattel and other mortgages and other instruments evidencing an interest by any third party in any of the property identified by this section.

(SCC 488 § 1, 1981)

Not later than 30 calendar days after the date on which the Franchisee files the inventory, the Cable Television Commission or its assignee may mail to the Franchisee written notice of its tentative intention to exercise its right to purchase, including a list of all property which the Commission or its assignee has tentatively elected to purchase, and a demand for arbitration.

(SCC 488 § 1, 1981)

The arbitration panel shall be selected, the hearing scheduled within the time prescribed, notice given, the hearing conducted, decision made and costs divided in the manner prescribed by Section 5.50.830 through 5.50.840, inclusive in Article 5-b of Sub-Chapter 5. The Franchisee shall make its Cable Television System, other property and books, accounts and other records available, upon request, for inspection by the Cable Television Commission, its assignee or their experts. The discovery provisions of the California Arbitration Act (Code of Civil Procedure, Section 1280 et seq.) shall be applicable to the arbitration proceeding under this section.

The questions which may be submitted to the arbitration panel and jurisdiction of the panel shall be limited to the following:

a. The amount to be paid by the Commission or its assignee under the valuation limits prescribed by Section 5.50.248, above; and

b. Interpretation of the provisions of the Franchise Documents solely in relation to the issues within its jurisdiction.

(SCC 488 § 1, 1981)

With respect to any proceeding in which the arbitration panel makes valuation determinations in advance of the termination or expiration of the franchise, the same panel shall be available to receive and determine values for any additions to, replacements of or other acquisitions of property tentatively elected to be purchased which have occurred subsequent to the award made pursuant to Section 5.50.258, above Such determinations shall be initiated by written notice mailed to the arbitration panel by the Franchisee and filed with the Clerk of the Board of Directors of the Cable Television Commission, shall be governed by all standards, procedures and other provisions in Section 5.50.246 through this section, and written recital thereof shall be mailed to the Franchisee, Commission and its assignee (if any) not later than 90 calendar days following the date of mailing of the notice initiating the determination. No such notice shall be mailed or filed later than 120 calendar days prior to the date of expiration or termination of the franchise.

(SCC 488 § 1, 1981)

In the event a Franchisee or the Cable Television Commission or its assignee fails to comply with any provision contained in Sections 5.50.240 through 5.50.264, inclusive, above, the injured party shall be authorized to either seek judicial relief or relief from the arbitrator during the arbitration proceeding. In the event judicial relief is sought, the provisions of Section 5.50.258 and 5.50.260, above, shall not be deemed to deprive the Court of jurisdiction to interpret the provisions of this chapter, and any such interpretation shall be binding upon the arbitrator.

(SCC 488 § 1, 1981)

Not later than 30 calendar days following the date of expiration or termination of the franchise, the Cable Television Commission or its assignee shall notify the Franchisee of its intention to purchase the property identified in the notice mailed pursuant to the provisions of Section 5.50.256, above. The purchase price shall be the value as determined by the arbitration panel. The election to purchase shall be evidenced by a written notice so stating mailed to the Franchisee not later than 30 calendar days following the date of expiration or termination of the franchise. The failure to mail such notice within the time prescribed herein shall be conclusively presumed to constitute an election not to purchase the property pursuant to the provisions of this chapter, and the Franchisee shall not be entitled to any compensation for such property or other costs or damages, whether related to conduct of the arbitration proceedings, or otherwise. If any notice, memorandum or report required by Sections 5.50.258 or 5.50.260, above, has not been received by the date of expiration or termination of the franchise, the notice of election herein need not be mailed until 30 calendar days following the date of receipt of such notice, memorandum or report.

The purchase price shall be deposited into an escrow of a title company named by the Commission or its assignee. The title company shall be authorized to pay the purchase price as directed by the Franchisee when it can provide for the Commission or its assignee grant deeds with respect to real property, bills of sale with respect to personal property or other evidences of title vesting insured title in the Commission or its assignee free and clear of all liens and encumbrances except easements and rights-of-way respecting the real property which do not impair its use for the purposes intended, and assignments of leases, if any, with respect to real or personal property which is leased. The seller or sellers shall pay all title insurance, recording, escrow and closing fees and costs.

(SCC 488 § 1, 1981)

The provisions of this Sub-Chapter shall not be deemed to preclude acquisition by the Cable Television Commission or its assignee through a negotiated agreement; provided that the commencement or existence of such negotiations shall not be deemed to waive or relieve any actions or times therefore prescribed by Sections 5.50.254 through 5.50.264, above.

(SCC 488 § 1, 1981)

Sub-Chapter 4. TERMS—CONDITIONS—REQUIREMENTS OF FRANCHISES