Tehama Municipal Code Ch. 5.08 Cable Television Franchises

A. A nonexclusive franchise to construct, operate, and maintain a community antenna television system in the city of Tehama, California may be granted by the city council to any person, firm or corporation offering the terms and provisions of the chapter.

B. No provision herein may be construed as to require the granting of a franchise to restrict the number of franchises in the opinion of the council to one or more.

(Ord. 114 § 1, 1982)

Any franchise granted pursuant to the provisions of this chapter shall authorize and permit the franchise holder to engage in the business of operating and providing a CATV system in the city and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain, and retain in, on, over, under, upon, across and along any public street or highway, such poles, wires, cable, conductors, ducts, conduit, vaults, manholes, amplifiers, appliance, attachments, and other property as may be necessary and appurtenant to the CATV system; and, in addition, to use, operate and provide similar facilities or properties rented or leased from a public utility franchise permitted to do business in the city.

(Ord. 114 § 2, 1982)

A. No franchise or any renewal thereof granted by the council under this chapter shall be for a term longer than twenty (20) years following the date of acceptance of such franchise by the franchise holder or the renewal thereof. Any such franchise may be terminated prior to its date of expiration by the council in the event that said council has found, after notice and hearing that:

B. The franchise holder has failed to comply with any material provisions of this chapter or has by act or omission, violated any term or condition of any franchise or permit issued under this chapter.

C. The provisions of this chapter have become invalid or unenforceable, and the council further finds that such provisions constitute a consideration material to the grant of said franchise provided, however, that the franchise holder shall be given at least thirty (30) days notice of any proposed termination proceedings.

D. If the franchise holder cures the alleged violation of any term or condition of the franchise during the notice period, the termination proceedings called for shall be cancelled.

(Ord. 114 § 3, 1982)

A. Any franchise holder granted a franchise under this chapter shall pay to the city during the life of such franchise, and at the times hereinafter specified, a sum equal to three percent of the monthly total gross receipts of the franchise holder, and such payment by the franchise holder to the city shall be in lieu of any occupation tax, license tax or similar levy, and shall be paid quarterly.

B. The franchise holder shall file with the city, sixty (60) days after the expiration of any calendar year during which such franchise is in force, a financial statement prepared by a certified public accountant showing in detail the total annual gross receipts, as defined herein, of the franchise holder, its successors or assigns, during the preceding calendar year. It shall be the duty of the franchise holder to pay to the city within fifteen (15) days after the time for filing such statements any unpaid balance for the calendar year covered by such statements. In any year, or portion thereof, during which payments under this section amount to less than one hundred dollars ($100.00) per month, the franchise holder agrees to pay the city the minimum amount of one hundred dollars ($100.00) per month.

C. The city shall have the right of inspection of the franchise holder's records showing its gross receipts.

(Ord. 114 § 4, 1982)

A. No privilege or exemption shall be granted or conferred by any franchise granted under this chapter except those specifically prescribed herein.

B. Any privilege claimed under such franchise by the franchise holder in any street shall be subordinate to any prior lawful occupancy of the streets or other public property.

C. Any such franchise shall be a privilege to be held in personal trust by the original franchise holder. It cannot in any event be sold, transferred, leased, assigned or disposed of, in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, consolidation or otherwise, without prior written consent of the council expressed by resolution, and then only under such conditions as may be therein prescribed; provided, however, that no such consent shall be required for any transfer in trust, mortgage or other hypothecation, as a whole, to secure an indebtedness. The consent of the council may not be arbitrarily refused, provided, however, the proposed assignee must show financial responsibility and must agree to comply with the provisions of this chapter.

D. The time shall be of the essence of any franchise granted under this chapter. The franchise holder shall not be relieved of its obligation to comply promptly with any of the provisions of this chapter, or by any failure of the city to enforce prompt compliance.

E. Any right or power in, or duty impressed upon, any officer, employee, department or council of the city, is subject to transfer by the city to any other officer, employee, department or council of the city.

F. The franchise holder shall have no recourse whatsoever against the city for any loss, cost, expense or damage, arising out of any provision or requirement of the chapter or its enforcement.

G. The franchise holder is subject to all requirements of the city ordinances, rules, regulations and specifications of the city heretofore or hereafter enacted or established, including but not limited to those concerning street work, street excavations, use, removal and relocation of property within a street, and other street work.

H. Any franchise granted under this chapter shall not relieve the franchise holder of any obligation involved in obtaining pole space from any department of the city, the utility companies, or from other maintaining poles in streets.

(Ord. 114 § 5, 1982)

A. There is reserved to the city every right and power which is required to be herein reserved or provided by an ordinance of the city, and the franchise holder, by its acceptance of this franchise, agrees to be bound thereby and to comply with any action or requirement of the city in its exercise of any such right or power, heretofore enacted.

B. In connection with the issuance of any franchise hereunder, the council may impose reasonable restrictions, conditions and limitations as to the area or areas of the city to be served by the franchise holder, and as to operating conditions.

(Ord. 114 § 6, 1982)

A. Any poles, wires, cable lines, conduits or other properties of franchise holder to be constructed or installed in streets or public rights-of-way shall be constructed or installed only at such locations and in such manner as shall be approved prior thereto by the road department of the city acting in the exercise of its reasonable discretion. Upon receipt of a construction or installation request from the franchise holder, the road department shall reply within ten (10) business days.

B. The franchise holder may install or erect any facilities or apparatus on public property or rights-of-way within the city limits of the city upon obtaining approval from the road department.

C. In those areas and portions of the city where either transmission and distribution facilities of the public utility providing telephone service, or those of the utility providing electric service, are underground or hereafter may be placed underground, then the franchise holder shall likewise construct, operate and maintain all of its transmission and distribution facilities underground. Amplifiers in franchise holder's transmission and distribution lines may be in concrete boxes or vaults upon the surface of the ground.

D. Construction or installation of franchise holder's cable lines or conduits in all other public places, owned or controlled by the city, shall be subject to approval of and regulation by the council in advance.

E. Neither the city nor its officers or employees shall be liable to the franchise holder or to any subscribers of the franchise holder for a cessation of service by the franchise holder to any or all of its subscribers caused by the county's street work, street excavation, pole relocation or resulting from delay in the city's repair or re-erection of poles or otherwise following damage thereto arising out of circumstances beyond the control of the city.

(Ord. 114 § 7, 1982)

A. In the event that the use of any part of the CATV system is discontinued for any reason for a continuous period of twelve (12) months, or in the event such system or property has been installed in any street or public place without complying with the requirements of its franchise, or the franchise has been terminated, cancelled or has expired, the franchise holder shall promptly remove from the streets or public places all such property and poles of such system, other than any which the road department may permit to be abandoned in place. In the event of any such removal, the franchise holder shall promptly restore the street or other area from which such property has been removed, to a condition satisfactory to the road department.

B. Any property of the franchise holder to be abandoned in place, shall be abandoned in such manner as the road department shall prescribe. Upon permanent abandonment of the property of the franchise holder in place, the franchise holder shall submit to the road department an instrument to be approved by the city attorney transferring to the city the ownership of such property.

(Ord. 114 § 8, 1982)

The franchise holder shall, at its expense, protect, support, temporarily disconnect, relocate in the same street, alley or public place, or remove from the street, alley or public place, any property of the franchise holder when required by the road department by reason of traffic conditions, public safety, street vacation, freeway and street grade, installation of sewers, drains, water pipes, power lines, signal lines and tracks or any other type of structures or improvements by governmental agencies when acting in a governmental or proprietary capacity, or any other structures or public improvements; provided, however, that the franchise holder shall in all cases have the privileges and be subject to the obligations to abandon any property of the franchise holder in place, as provided in this chapter.

(Ord. 114 § 9, 1982)

Upon failure of the franchise holder to complete any work required by law or by the provisions of this chapter to be done in any street, within the time prescribed, and to the satisfaction of the road department; the road department may cause such work to be done and the franchise holder shall pay to the city the cost thereof in the itemized amounts reported by the road department to the franchise holder within thirty (30) days after receipt of such itemized report.

(Ord. 114 § 10, 1982)

A. The franchise holder shall, concurrently with the filing of and acceptance of award of any franchise granted under this chapter, file with the city clerk, and at all times thereafter maintain in full force and effect for the first two years of the term of this franchise, at the franchise holder's sole expense, a corporate surety bond, of a company approved by and in a form approved by the city attorney in the amount of ten thousand dollars ($10,000.00), renewable annually and conditioned upon the faithful performance of the franchise holder and that in the event the franchise holder shall fail to comply with any one or more of the provisions of this chapter, that there shall be recoverable jointly and severally from the principal and surety of such bond, any damages or loss suffered by the city as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the franchise holder as prescribed hereby which may be in default, plus a reasonable allowance for attorney's fees and costs, up to the full amount of the bond; said condition to be a continuing obligation for the duration of this franchise and thereafter until the franchise holder has liquidated all of its obligations with the city that may have arisen from the acceptance of this franchise by the franchise holder or from its exercise of any privilege herein granted. The bond shall provide that thirty (30) days prior written notice of intention not to renew, cancellation or material change, be given to the city. At the end of the first two years of the term of the franchise, the amount of the aforesaid corporate surety bond which the franchise holder shall maintain in full force and effect for the remainder of the term of the franchise shall be in the amount of twenty-five thousand dollars ($25,000.00) but shall correspond in all other particulars to the bond required during the first two years of the term as required hereinabove.

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

(Ord. 1 14 § 11, 1982)

A. Franchise holder agrees that at all times during the existence of this franchise it will maintain in force, furnish and file with the city, at its own expense, a general comprehensive liability insurance policy, in protection of the city, its boards, commissions, officers, agents and employees, in a company authorized to do business in the state, and in form to be approved by the city attorney, protecting the city and said persons against liability for loss or damages for personal injury, death and property damage occasioned by the operations of the franchise holder under this license with minimum liability limits of one hundred thousand dollars ($100,000.00) for personal injury or death and property damage occasioned by the operations of the franchise holder under this license with minimum liability limits of one hundred thousand dollars ($100,000.00) for personal injury or death of any one person and three hundred thousand dollars ($300,000.00) for personal injury or death of two or more persons in any one occurrence and fifty thousand dollars ($50,000.00) for damage to property resulting from any one occurrence.

B. The policies mentioned shall name the city as an additional insured, and shall also contain a provision that a written notice of any cancellation or reduction in coverage of said policy shall be delivered to the city not less than ten (10) days in advance of the effective date thereof. If such insurance is provided in either case by a policy which also covers the franchise holder or any entity or person other than those above named, then such policy shall contain the standard cross liability endorsement.

C. No franchise granted under this chapter shall be effective unless and until each of the foregoing policies of insurance as required in this section have been delivered to the city and approved as to form by the city attorney.

(Ord. 114 § 12, 1982)

The CATV system shall be installed and maintained in accordance with the highest and best accepted standards of the industry to the effect that subscribers shall receive the highest possible service. In determining the satisfactory extent of such standards, the following shall apply:

A. The system shall be installed using all band equipment capable of passing the entire television and FM spectrum; provided, that it will result in no increase in subscribers' rates other than additional installation charges; the city is desirous that the franchise holder use one channel to transmit available San Francisco FM radio channels, so that subscribers may have the election with proper installation to receive FM radio programs originating in the San Francisco Bay area.

B. The system, as installed, shall be capable of passing standard color TV signals without the introduction of noticeable effects on color fidelity and intelligence.

C. The system shall be capable of providing a signal level of two thousand (2,000) microvolts at the input terminals of each of the TV receivers.

D. The system signal-to-noise ratio shall be not less than forty (40) decibels.

E. Hum modulation of picture signal shall be less than five percent.

F. The system shall use components having VSWR of 1.4 to 1 or better. Methods of measuring above standards, where necessary, will be established by the council.

G. The CATV system shall be installed and maintained in accordance with the engineering report of television allocations study organization (TASO). The master antenna to be installed for the CATV system shall be located at a point or points where the signal strength of the TV stations to be received shall not be less than five hundred (500) microvolts per meter for low-band channels (2 through 6) and not less than eight hundred (800) microvolts for high-band channels (7 through 13) for at least fifty (50) percent of the time at a receiving antenna height of thirty (30) feet above ground. Each CATV subscriber shall receive a minimum signal strength of two thousand (2,000) microvolts as measured at the antenna terminals of the television set.

(Ord. 114 § 13, 1982)

A. All notices herein provided for shall be prepaid registered mail addressed to the parties as follows: to the city, to the city clerk, City Hall, Tehama, California with a copy to the city attorney, City Hall, Tehama, California; to the franchise holder as provided by the franchise agreement pursuant to the provisions of this chapter.

B. All matters herein provided to be filed with the city shall be filed with the city clerk.

C. Any franchise holder shall submit to the city the form of its service agreement between the franchise holder and its subscribers and shall also serve upon the city a full schedule of its proposed installation and service charges to be paid by subscribers before soliciting for subscribers within the city, and shall serve upon the city any amendments or alterations in the service agreement or schedule or charges; the franchise holder for one week following the filing of said schedule of charges or amendments thereto, shall publish the same daily in a newspaper of general circulation within the city. The rate schedule for any service agreement or increase thereto to the subscriber must have approval of the council.

D. The CATV system shall be installed and maintained in accordance with the best accepted standards of the industry to the effect that the subscriber shall receive a minimum signal strength of two hundred (200) microvolts per meter at his or her television set. The provisions of this subsection are a "material provision hereof' as these words are used in Section 5.08.130.

E. The franchise holder shall pay to the city a sum of money sufficient to reimburse it for all expenses incurred by it in connection with the granting of a franchise pursuant to the provisions of this chapter, such payment to be made thirty (30) days after the city shall furnish such franchise holder with a written statement of such expense.

F. The franchise holder shall maintain a local office so that CATV maintenance service shall be promptly available to subscribers upon telephone request during all hours that the franchise holder is transmitting signals to subscribers.

G. The franchise holder shall not engage in the business of selling television or other receivers which make use of signals transmitted by its system, nor shall franchise holder engage in the repair of such receivers or the sale of parts for the same.

H. The franchise holder shall not make any charge to any subscriber for the transmission of any television broadcast which is not received at the same time free of charge by the public generally from regularly licensed channels and broadcasting stations.

I. Nothing in a franchise granted hereunder shall be construed as a license to distribute services commonly known as "Pay TV." No company, corporation or association may directly or indirectly install, maintain or operate on any television set, a coin box, or any other device or means for collection of money for individual programs.

J. Nothing in this chapter or in any franchise granted hereunder shall prevent the city from subsequently granting a franchise holder hereunder or to any other persons a franchise or license to distribute service commonly know as "Pay TV." It is the intent of this chapter that no rights to transmit or in any other way communicate "Pay TV" to persons or places within the city of Tehama are to be granted to the holder of any franchise granted under the provision of this particular chapter. It is also the intent of this chapter that no rights to transmit or in any other way communicate "subscription TV" as defined by subsection (b) of former Section 35001 of the Revenue and Taxation Code of the State, as it read before the initiative measure was adopted, to persons or places within the city of Tehama are to be granted to the holder of any franchise granted under provisions of this particular chapter.

K. The franchise holder may make a charge to subscriber for connection to its CATV system and a fixed monthly charge as filed and approved as herein provided, for transmission to them only of television programs received free by the public generally at the same time, from regularly licensed television stations.

L. The franchise holder shall, prior to commencing operations, present to the council satisfactory evidence of working arrangements with all local television broadcasting stations primarily serving the Redding or Chico areas, for the use of the franchised CATV system through means of switching all commercial announcements and items of such local station when simultaneous broadcasts of network programs by outlying television stations and such local stations are being made; provided, however, in the event that the council finds and determines that an offer or proposal containing fair and reasonable terms and conditions for such working arrangements has been submitted by the franchise holder to any such local television broadcasting station or stations, and that such offer or proposal has been unreasonably rejected by any station or stations, the council may waive the requirements for such evidence of such working arrangements.

M. In the event the Public Utilities Commission of the state or the Federal Communications Commission takes jurisdiction over all or part of the operations and rates of the franchise holder, then the authority of the city to approve rates and charges will cease to that extent.

N. The CATV system operated by the franchise holder shall deliver adequate television signals from at least the following TV stations: KTVU, KRON, KPIX, KGO-TV, KRCR, KQED, and KHSL. Changes in requirements may be made by resolution of the council. The signals of the local TV stations (KRCR and KHSL) shall be carried and delivered without degradation of quality and "on Channel," in other, shall be transmitted to the subscriber in such fashion that the subscriber will receive the signals on Channel 7 and Channel 12 respectively, or such other channels as said local stations may hereafter be assigned by the Federal Communications Commission. During such time as any local education TV station telecasts and is capable of reception through ordinary antennas within the area of the City, the franchise holder shall cease to deliver TV signals from KQED or any other non-local education TV station, and shall carry over its cables all broadcasts of the local educational TV station. The signals of such local educational TV station shall be carried and delivered without degradation of quality.

O. When it occurs that there is a duplication of programming by an outlying station broadcasting a program simultaneously being carried by a local TV serving the area of the city which is similar in all respects as to color, time, etc., then the signal of the outlying station shall be blocked out and only the local TV signal shall be distributed by the CATV system.

P. The rate schedule for any service agreement or increase thereto to subscribers must have written approval of the council.

Q. In the delivery of programs the franchise holder shall not delete the commercials of the program sponsor nor shall the franchise holder interrupt any programs or parts thereof and substitute commercials or advertisements for those of such program sponsor.

R. Wherever CATV cables are installed adjacent to public schools, or private schools below college grade attended in lieu of public school, CATV services will be made available without charge to such schools, provided however, the installation cost may be recovered by the franchise holder from the schools being served.

(Ord. 114 § 14, 1982)

Application for a franchise hereunder shall be filed with the city clerk during the time or times specified by the council by resolution in a form approved by the city and shall contain the following:

A. The name and address of the applicant;

B. A general description of applicant's proposed CATV operation, including map of areas to be served;

C. A statement or schedule in a form approved by the city of proposed rates and charges to subscribers for installation and services, and a copy of proposed service agreement between the franchise holder and its subscribers shall accompany the application;

D. A copy of any contract or contracts, if existing, between applicant and any public utility providing for use of facilities of such public utility, such as poles, lines or conduits;

E. A statement of the corporate organization of applicant including the names and addresses of its officers, directors and associates, and also including the names of subsidiary companies with a listing of other areas being served by CATV or similar systems;

F. Applicant shall also furnish a financial statement prepared by a certified public accountant as to the company's or corporation's financial ability to complete installation and operation of the CATV system;

G. Such other matter as may be required in the council's resolution of intention to receive applications;

H. Upon consideration of such application, the council may grant a franchise for CATV to such applicant as may appear from said application to be in its opinion best qualified to render proper and efficient CATV service to television viewers and subscribers in the city. The council's decision in the selection will be final;

I. Any franchise issued pursuant to this chapter shall include the following conditions:

1. The CATV system herein franchised shall be used and operated solely and exclusively for the purpose expressly authorized by this chapter of the city and no other purpose whatsoever;

2. The inclusion of the foregoing statement in any such franchise shall not be deemed to limit the authority of the council to include any other reasonable condition, limitation or restriction which it may deem necessary to impose in connection with such license pursuant to the authority conferred by this chapter;

3. A statement setting forth all agreements and understandings, whether written, oral or implied, existing between the applicant and any person, firm, group or corporation with respects to the franchise and the proposed operations. If a franchise is granted to a person, firm, group or corporation posing as a front or representative for another person, firm, group or corporation and such information is not disclosed in the original application, such franchise shall be revoked automatically and the council shall consider awarding the franchise to another qualified applicant.

(Ord. 1l4 § 15, 1982)

When any portion of the CATV system is to be installed on public utility poles and facilities, certified copies of the agreements for such joint use of poles and facilities shall be filed with the city clerk. Regulations imposed upon the utility companies by the Public Utilities Commission shall apply to the franchise holder.

(Ord. 114 § 16, 1982)

No franchise issued hereunder shall become effective until all the requirements of the chapter are fully met, including the filing with the city clerk certificates of insurance required herein.

(Ord. 114 § 17, 1982)

Provided approval of the council is first obtained for the general type of additional service to be supplied, the franchise holder may use the local CATV system to provide piped-in music sources to commercial or residential subscribers, or to supply motion pictures, transmission of which originates with the franchise holder, or to transmit a continuous weather guide picture, together with community events calendar, or a nationally originated special events program such as a boxing match or other sports or cultural programs so long as no additional charge is made to then existing subscribers. But the franchise holder shall not receive any compensation for any advertising transmitted over its system nor shall it transmit any commercial advertising except that forming a part of an incidental to a television program broadcast by a TV station licensed by the F.C.C.

(Ord. 114 § 18, 1982)

The city shall have the right at any time during the life of the franchise granted hereunder to acquire by purchase or condemnation any or all the property of the franchise holders placed under the franchise within the limits of public property at a fair and just value which shall not include any amount for the license itself, or of any of the rights and privileges granted, upon acquisition of all such property the franchise shall thereupon terminate.

(Ord. 114 § 19, 1982)

At all reasonable times the council or its authorized agent may examine all records kept or maintained by the franchise holder or under its control which relate to the operations, affairs, property or transactions of the franchise holder within the city, for the serving of subscribers within the city.

(Ord. 114 § 20, 1982)