Tehama Municipal Code Art. IV Franchise Fees and Indemnification

A. In consideration of the granting and exercise of a franchise to construct and operate a cable communications system in the county, the grantee shall pay to the county, during the life of the franchise, an annual franchise fee equivalent to a percentage, as stipulated in the franchise agreement, of the the grantee's gross receipts, including but not limited to, basic service revenues, nonbasic service revenues, advertising revenues, lease revenues, and all other oneway and interactive service revenues generated in any manner by the grantee, for the purpose of defraying administrative expenses associated with the conduct and performance of the county's authority, responsibilities, and police power in the promotion of safety, convenience, comfort, prosperity and general welfare of the citizens of the county, for promotion, development, operation and maintenance of cablerelated matters, as the board may deem appropriate within the county, and in consideration of the county's granting and the grantee's exercising a franchise to use the streets, as defined in Section 6.20.020 of this chapter.

B. The percentage payments shall be made in the manner, amounts and at times directed in the franchise agreement.

C. Each such payment shall be accompanied by a statement, in duplicate, verified by the grantee or by a general officer or other duly authorized representative of the grantee, showing in such form and details as the board may require from time to time the facts material to a determination of the amount due.

D. The county or its representative shall have the right to inspect the grantee's records to determine if proper payments have been made to the county. The costs of such audits shall be borne by grantee if the same results in increasing, by more than two percent, the grantee's annual payment to the county.

E. No acceptance of any payment shall be construed as release or as an accord and satisfaction of any claim the county may have for further or additional sums payable under this chapter, or the franchise agreement or associated resolution or ordinance, for the performance of any obligation thereunder.

F. The payment to the county by the grantee pursuant to this section for any calendar year shall be in lieu of any license fee or business tax prescribed by the county for the same period, but only to the extent of such payment.

(Ord. 1337 §12.1, 1986)

A. The grantee shall at all times maintain in full force and effect a policy of insurance in such form as the county may require, executed by an insurance company authorized to write the required insurance, and approved by the State Insurance Commissioner, insuring the payment of any sums which the grantee, or county, its officers, boards, commissioners, agents and employees, may become obligated to pay by reason of any liability imposed upon them by law for damages because of bodily injury or death, or injury to or destruction of property that may result to any person or property arising out of the construction, operation or maintenance of any facilities pursuant to a franchise issued under this chapter. The sums, payment of which shall be so insured, shall not be less than two million dollars combined single limits, including bodily injury liability and property damage liability.

B. Such policy of insurance shall contain a provision that a written notice of cancellation or reduction in coverage of the policy shall be delivered to the county ten days in advance of the effective date thereof; if such insurance is provided by a policy which also covers the grantee, or another entity or person other than those abovenamed, then such policy shall contain the standard crossliability endorsement. A certificate of insurance acceptable to the county shall be filed with the county clerk.

(Ord. 1337 §12.2, 1986)

Upon being granted a franchise, and upon filing of the acceptance required under Sections 6.20.200 through 6.20.290 of this chapter, the grantee shall file with the county clerk and shall thereafter, during the entire term of such franchise, maintain in full force and effect Worker's Compensation Insurance coverage in at least the minimum amounts required by law. If a grantee fails to obtain or maintain such required insurance coverage, the county may, without notice to grantee, obtain at grantee's sole expense such coverage, or forthwith terminate, without prior notice, the franchise as granted.

(Ord. 1337 §12.3, 1986)

A. The grantee may be required to, at his sole expense, at the time of acceptance of a franchise, file with the county, and unless otherwise authorized by the board, at all times thereafter maintain in full force and effect an acceptable corporate surety bond, in duplicate, in the amount of three hundred thousand dollars, effective for the entire term of the franchise, and conditioned that in the event the grantee shall fail to comply with any one or more of the provisions of a franchise, then there shall be recoverable jointly and severally from the principal and surety of such bond any damages suffered by the county as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of property, as prescribed by Sections 6.20.400 or 6.20.620 of this chapter which may be in default, up to the full amount of the bond; said condition to be a continuing obligation for the duration of the franchise and thereafter until the grantee has liquidated all of its obligations with the county that may have arisen from the acceptance of a franchise by the grantee, or from its exercise of any privilege herein granted.

B. Neither the provisions of this section, any bond accepted by the county pursuant thereto, nor any damages recovered by the county thereunder shall be construed to excuse faithful performance by grantee, or to limit liability of the grantee under a franchise or for damages, either to the full amount of the bond or otherwise.

C. If, at any time during the term of the franchise, the condition of the corporate surety shall change in such a manner as to render the bond unsatisfactory to the county, the grantee shall replace such bond by a bond of like amount and similarly conditioned, issued by a corporate surety satisfactory to the county. In the event the grantee's obligations under a franchise shall so warrant, the board, from time to time, may authorize or require appropriate adjustments in the amount of the bond. For example, the amount of the bond may be reduced by grantee, with the prior approval of the board, at satisfactory completion of system construction, upgrade and/or extension, as may be set forth in the franchise agreement.

(Ord. 1337 §12.4, 1986)

A. The county may in the franchise agreement require the establishment by grantee of an insured account as security for the faithful performance by grantee of all the provisions of the franchise, and compliance with all orders, permits and directions of any agency of the county having jurisdiction over its acts or defaults under the franchise, and the payment by grantee of any claims, liens, payments and taxes due the county which arise by reason of the construction, operation or maintenance of the system.

B. The security fund, if required, shall be administered as follows:

1. Within thirty days after the effective date of the franchise, grantee shall deposit into an insured account, established by the county, and maintain on deposit throughout the term of the franchise, an amount of dollars as set forth in the franchise agreement, for the purpose set forth hereinabove. The grantee shall have the right to earn interest on funds deposited in the security fund.

2. Within thirty days after notice to it that any amount has been withdrawn by the county from the security fund pursuant to this section, the grantee shall deposit a sum of money sufficient to restore such security fund to the original amount.

3. If the grantee fails, after ten days' notice, to pay the county any taxes or payments due and unpaid, or fails to repay to the county, within such ten days, any damages, costs or expenses which the county shall be compelled to pay by reason of any act or default of the grantee in connection with a franchise, or fails after thirty days' notice by the county of such failure to comply with any provision of the franchise which the county reasonably determines can be remedied by an expenditure of the security, the county may immediately withdraw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal, the county shall notify the grantee of the amount and date thereof.

4. The security fund deposited pursuant to this section shall become the property of the county in the event that a franchise is cancelled by reason of the default of the grantee, or is revoked for cause. The grantee, however, shall be entitled to the return of such security fund, or portion thereof as remains on deposit at the expiration of the term of the franchise, or upon termination of the franchise at an earlier date, provided that there is then no outstanding default on the part of the grantee.

5. The county may, at its sole discretion, upon grantee's successful completion of system construction, reduce the security fund to a lesser required amount, as set forth in the franchise agreement, and refund the difference to the grantee.

6. The rights reserved to the county with respect to the security fund are in addition to all other rights of the county, whether reserved by a franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right the county may have.

(Ord. 1337 §12.5, 1986)

A. By accepting a franchise, the grantee shall be deemed to have agreed to indemnify and hold harmless the county, its officers, boards, commissions, agents, consultants and/or employees against and from all claims, demands, causes of actions, suits, proceedings, damages (including but not limited to, damages to county property and damages arising out of copyright infringements, and damages arising out of any failure by the grantee to secure consent from the owners, authorized distributors or licensees of programs to be delivered by grantee's cable communications system), costs or liabilities (including costs of the county with respect to its employees) of every kind and nature whatsoever, including but not limited to damages for injury or death, or damage to persons or property, and regardless of the merit of any of the same, and against all liability to others, and against any loss, costs and expense resulting or arising out of any of the same, including any attorney fees, accountant fees, expert witness or consultant expense, or other costs or expense arising out of or pertaining to the exercise of the enjoyment of any franchise hereunder by grantee, or the process of granting thereof by the county, irrespective of the amount of the bond designated in Section 6.20.430 of this chapter.

B. The grantee shall, at the sole risk and expense of grantee, upon demand of the county made by and through the county counsel, appear in and defend any and all suits, actions or other legal proceedings, whether judicial, quasi judicial, administrative, legislative or otherwise, brought or instituted or had by third persons or duly constituted authorities, against or affecting the county, its officers, boards, commissions, agents, consultants or employees, and arising out of or pertaining to the exercise of the enjoyment of such franchise, or the process of granting thereof by the county.

C. Alternatively, at the discretion of the board, the county may, on behalf of itself, and/or any of its officers, boards, commissions, agents, consultants or employees, elect to employ, at grantee's expense, attorneys to appear and defend such actions.

D. The grantee shall pay and satisfy, and shall cause to be paid and satisfied any judgment, decree, order, directive or demand rendered, made or issued against grantee, the county, its officers, boards, commissions, agents, consultants or employees in any of these premises, and such indemnity shall exist and continue without reference to or limitation by the amount of any bond, policy of insurance, security deposit, undertaking or other assurance required hereunder, or otherwise; provided, that neither grantee nor county shall make or enter into any settlement of any claim, demand, cause of action, suit or other proceedings, without first obtaining the written consent of the other.

(Ord. 1337 §12.6, 1986)