Article II — PROVISIONS FOR AWARD OF FRANCHISE

Each application for a franchise to construct, operate, or maintain any cable television system(s) in the city shall be filed with the city clerk and shall contain the following: A. The name, address and telephone number of the applicant; B. A detailed statement of the corporate or other business entity organization of the applicant, including but not limited to, the following, and to whatever extent required by the city:

1. The names, residence and business address of all officers, directors and associates of the applicant,
2. The names, residences, and business addresses of all officers, persons and entities having controlling, or being entitled to have or control of more than five percent of the ownership of the applicant and the respective ownership share of each such person or entity,
3. The names and addresses of any parent or subsidiary of the applicant, namely, or any other business entity owning or controlling applicant in whole or in part or owned or controlled in whole or in part by the applicant, and a statement describing the nature of any such parent or subsidiary business entity, including but not limited to cable television systems owned or controlled by the applicant, its parent and subsidiary and the areas served thereby,
4. A detailed description of all previous experience of the applicant in providing cable television system service and in related or similar fields,
5. A detailed and complete financial statement of the applicant, prepared by an independent certified public accountant, for the fiscal year next preceding the date of the application hereunder, or a letter or other acceptable evidence in writing from a recognized lending institution or funding source, addressed to both the applicant and council, setting forth the basis for a study performed by such lending institution or funding source, and a clear statement of its intent as a lending institution to provide whatever capital shall be required by the applicant to construct and operate the proposed system in the city, or a statement from a certified public accountant, certifying that the applicant has available sufficient free, net and uncommitted cash resources to construct and operate the proposed system in this city;
6. A statement identifying, by place and date, any other cable television franchise(s) awarded to the applicant, its parent or subsidiary; the status of said franchise(s) with respect to completion thereof; the total cost of completion of said system(s); and the amount of applicant's and its parent's or subsidiary's resources committed to the completion thereof; C. A detailed description of the proposed plan of operation of the applicant which shall include, but not be limited to the following:
7. A detailed map indicating all areas proposed to be served, and a proposed time schedule for the installation of all equipment necessary to become operational throughout the entire area to be served,
8. A statement or schedule setting forth all proposed classifications of rates and charges to be made against subscribers and all rates and charges as to each said classifications, including installation charges and service charges. The statement or schedule shall be used for information purposes and shall not be deemed to give the city the authority to approve rates contrary to federal law,
9. A detailed, informative, and referenced statement describing the actual equipment and operational standards proposed by the applicant and that such standards of operations are in compliance with Section 13.12.120 of this chapter,
10. A copy of the form of any agreement undertaking, or other instrument proposed to be entered into between the applicant and any subscriber,
11. A detailed statement setting forth in its entirety any and all agreements and understandings, whether formal or informal, written, oral, or implied, existing or proposed to exist between the applicant and any person, firm, or corporation which materially relate or pertain to or depend upon the application and the granting of the franchise; D. A copy of any agreement covering the franchise area, if existing between the applicant and any public utility subject to

regulation by the California Public Utilities Commission providing for the use of any facilities of the public utility, including but not limited to poles, lines, or conduits; E. Any other details, statements, information or reference pertinent to the subject matter of such application which shall be required by the council, or by any provision of any other ordinance of the city, resolution or order of the city council; F. A nonrefundable application fee in the amount of three thousand dollars, which shall be in the form of cash, certified for filing applications. (Ord. 85-07-950 § 1 (part))

A. Franchise renewals shall be governed by Section 13.12.212. In cases of original franchise awards, the council may, by advertisement or any other means, solicit and call for applications for cable television system franchises, and may determine and fix any date upon or after which the same shall be received by the city, or the date before which the same must be received, or the date after which the same shall not be received, and may make any other determinations and specify any other times, terms, conditions, or limitations respecting the soliciting, calling for, making and receiving of such applications. B. If the council shall determine to further consider the application(s), it shall set a public hearing for the consideration of competing applications; fixing and setting forth a day, hour, and place certain when and where any persons having any interest therein or objections may file written protests and/or appear before the council and be heard, and directing the city clerk to publish said resolution in a newspaper of general circulation at least once not less than ten days prior to such public hearing. C. In making any determination hereunder as to any application, the council may give due consideration to the quality of the service proposed, rates to subscribers, income to the city, experience, character, background, and financial responsibility of any applicant, and its management and owners, technical and performance quality of equipment, willingness and ability to meet construction and other deadlines, and to abide by policy decisions, franchise requirements, and any other considerations deemed pertinent by the council for safeguarding and promoting the interests of the city and the public. D. At the time set for the hearing, or at any adjournment thereof, the council shall proceed to hear all written protests and/or support. Thereafter, the council shall make one of the following determinations:

1. That such application(s) be denied, which determination shall be final and conclusive; or
2. That the city enter into negotiations for the determination of the terms of the final award of a franchise with one or more of the applicants, and that the time for such negotiations be limited to a time not to exceed ninety days and that such terms and conditions shall first be approved by council. E. At the conclusion of said negotiations or after expiration of the ninety days, whichever shall first occur, if the council shall determine to further consider the application(s), the council shall hold a public hearing in accordance with all the procedures set forth herein, and, at the conclusion of said hearing, after giving due consideration to those factors specified herein, the council may:
3. Award a nonexclusive franchise to one or more of the applicants; or
4. Reject all applications and request new and/or additional proposals. F. The council may at any time demand and applicant(s) shall provide such supplementary, additional or other information as the council may deem reasonably necessary to determine whether the requested franchise should be granted. G. The city council may waive any and all provision(s) of this section. (Ord. 85-07-950 § 1 (part))

The grantee shall assume all reasonable costs associated with the award, transfer, or renewal, of a franchise, or implementation of the provisions of this chapter, including any costs provided in the franchise agreement and, unless otherwise provided in the agreement, the following: A. Costs of publication, advertising, or noticing of an ordinance granting a franchise, any public hearing required hereunder, or any change to this chapter as such publication, advertising, or noticing is required by law. B. Costs associated with the city employing an independent consultant to assist with the development of the franchise ordinance, memorandum of understanding, and/or agreement, and any negotiations required to grant, amend, or enforce the provisions of the franchise ordinance and agreement. C. Costs of an independent consultant or engineering firm to witness the initial design, installation and testing of the system or to analyze the results of such testing as a verification of the grantee's adherence to the terms and conditions of the franchise, either at the time of the initial performance test in accordance with Section 13.12.125B or in response to

complaints in accordance with Section 13.12.090. At the city's option, the grantee may perform such tests and submit such results to the city and the city may, at the grantee's cost, have the results analyzed by an independent engineering firm. D. All fees related to construction of the CATV facilities, including, but not limited to, city excavation permit fees, construction inspection fees, and other city costs related to CATV installation and construction. E. All reasonable city administrative costs associated with the award, transfer, renewal, or implementation of the franchise. (Ord. 85-07-950 § 1 (part))