Earlier editions: 2026-09
Victorville Municipal Code Ch. 3.60 Cable Communications
Victorville Municipal Code · 2026-10 edition · updated 2026-10-04 · Victorville
Cite as: Victorville Municipal Code Chapter 3.60 · Text as of 2026-10-04
3.60.010 - Short title.¶
This chapter shall be known and may be cited as City of Victorville, California Cable Communications Ordinance.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.020 - Definitions.¶
For the purpose of this chapter, the following terms, phrases, words and their derivations shall have the meanings given in this section. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The words "shall" and "will" are mandatory, and "may" is permissive. Words not defined in this section shall be given the meaning set forth in the Cable Communications Policy Act of 1984, 47 U.S.C. § 521 et seq., and as hereinafter may be amended, including without limitation the Cable Television Consumer Protection and Competition Act of 1992, Pub. 1. No. 102-385, 106 Stat. 1460, and, if not defined therein, their common and ordinary meaning.
(a) "Access channel" means any channel on a cable system set aside without charge by the franchisee for public, educational and/or local governmental use.
(b) "Affiliate" means any person that directly or indirectly owns or controls the grantee or franchisee, any person that a grantee or franchisee directly or indirectly owns or controls, or any person under common ownership or control with a grantee or franchisee.
(c) "Applicant" means any person submitting an application within the meaning of this chapter.
(d) "Application" means any proposal, submission or request to (1) construct and operate a cable system within the city; (2) transfer a franchise or control of the franchisee; (3) renew a franchise; (4) modify a franchise; or (5) seek any other relief from the city pursuant to this chapter or a franchise agreement. An application includes an applicant's initial proposal, submission or request, as well as any and all subsequent amendments or supplements to the proposal and relevant correspondence.
(e) "Basic cable service" or "basic service" means any service tier that includes the retransmission of any local television broadcast signals, and/or any education, government or public access channels.
(f) "Cable Act" means the Cable Communications Policy Act of 1984, 47 U.S.C. §§ 521 et seq., and as hereinafter may be amended, including without limitation the Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No. 102-385, 106 Stat. 1460.
(g) "Cable System," "cable television system" or "system" means any facility operating by means of coaxial cable, optical fiber, or any other transmission lines or forms of transmission and associated signal generation, reception and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within the city. Such term does not include (1) a facility that services only to retransmit the television signals of one or more television broadcast stations; (2) a facility that serves only subscribers in one or more multiple-unit dwellings under common ownership, control or management, unless such facility uses or crosses any street; (3) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, 47 U.S.C. § 201 et seq., except that to the full extent permitted by law, such facility will be considered a cable system to the extent it is used in the transmission of video programming, whether on a common carrier or non-common carrier basis, directly to subscribers; or (4) any facilities of any electric utility used solely for operating its electric utility systems. The foregoing definition of "cable system" shall not be deemed to circumscribe or limit the valid authority of the city to regulate or franchise the activities of any other communications system or provider of communications services to the full extent permitted by law.
(h) "Cable service" means the one-way transmission of video or other programming services over a cable system to subscribers together with any subscriber interaction, if any, which is required for the selection of such programming services that a franchisee makes available to all subscribers generally.
(i) "City" means the city of Victorville, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.
(j) "City council" or "council" means the legislative body of the city.
(k) "City manager" means the city manager of the city and any duly authorized designatee of the city manager.
(l) "Control of a franchisee, grantee or applicant" means the legal or practical ability to exert control over the affairs of a franchisee, grantee or applicant, either directly or indirectly, whether by contractual agreement, majority ownership interest, any lesser ownership interest, or in any other manner.
(m) "Designated access organization" or "DAO" means any nonprofit entity established or designated by the city pursuant to Section 3.60.150 of this chapter for the purpose of developing, managing, administering or using any access channel or access channels.
(n) "Equitable price" means fair market value adjusted downward for the harm to the city or subscribers, if any, resulting from a franchisee's breach of its franchise agreement or violation of this chapter.
(o) "Equivalent basic subscribers" means all subscribers deemed to make up bulk basic subscribers (such as hotels, motels, condominiums, apartments, cooperatives and other similar developments) of bulk basic subscription services offered by a cable system, where each such bulk basic subscriber in such cable system is deemed to consist of the number of basic subscribers obtained by dividing the monthly basic revenues for such bulk basic subscriber account (including additional outlet charges, if any) by the average monthly basic subscription price for individual basic subscribers in such cable system (including additional outlet charges, if any).
(p) "Fair market value" means the price that a willing buyer would pay to a willing seller for a going concern based on the system valuation prevailing in the industry at the time but with no value allocated to the franchise itself.
(q) "FCC" means the Federal Communications Commission, or any successor governmental entity thereto.
(r) "Franchise" means the right granted by the city to a franchisee to construct, maintain and operate a cable system under, on and over streets, roads and all other public ways and easements within all or specified areas of the city. The term does not include any license or permit that may be required by this chapter or other laws, ordinances or regulations of the city for the privilege of transacting and carrying on a business within the city or for disturbing, or carrying out any work upon, any street.
(s) "Franchise agreement" means a contract entered into in accordance with the provisions of this chapter between the city and a franchisee that sets forth the terms and conditions under which the franchise will be exercised.
(t) "Franchisee" means any person granted a franchise pursuant to this chapter who has entered into a franchise agreement with the city.
(u) "Grantee" means any person granted a franchise pursuant to this chapter, but who has not yet entered into a franchise agreement with the city.
(v) "Gross revenues" means all revenues of the franchisee, its affiliates, subsidiaries, or parent arising from, attributable to, or in any way derived from the operation of a cable system by a franchisee within the city. Gross revenues includes, but is not limited to, fees charged subscribers for basic service; fees charged subscribers for any optional, premium, per-channel or per-program service; fees charged subscribers for any tier of service other than basic service; installation, disconnection, reconnection and change-in-service fees; late charges and interest from subscribers or system users; leased channel fees; fees, payments or other consideration derived from programmers for carriage of programming on the system; converter and remote rentals and sales; studio rental, production equipment and personnel fees; advertising revenues; revenues from home shopping channels; revenues from the sale, exchange or cablecast by the franchisee of any programming developed on or for access channels or institutional users; and revenues derived from the provision of any noncable services provided over the system. Except as otherwise set forth in this section, gross revenues shall not include interest income or proceeds from sales of assets unrelated to the provision of cable service or equipment to subscribers or system users or unrelated to the provision of any noncable services provided over the system. Gross revenues shall not include any taxes on services furnished by the franchisee (other than the franchisee fee) which are imposed upon any subscriber or user by the state, county, city or other governmental unit and collected by the franchisee on behalf of said governmental unit. Gross revenues shall be the basis for computing the franchise fee imposed pursuant to Section 3.60.160 of this chapter.
(w) "Institutional network" means a voice, data and/or video communications system constructed, operated and/or maintained by the franchisee for the city, the transmissions on which are generally available only to, and intended to be sent and received by, persons other than cable subscribers generally.
(x) "Law" means all duly enacted and applicable federal, state, county and city laws, ordinances, codes, rules, regulations and orders.
(y) "Leased access channel" means a channel designated in accordance with Section 612 of the Cable Act, 47 U.S.C. § 532, for commercial use by persons unaffiliated with the franchisee.
(z) "Overbuild" means a cable system constructed to serve subscribers in an area of the city served by an existing cable system.
(aa) "Person" means any individual, corporation, partnership, association, joint venture, organization or legal entity of any kind, and any lawful trustee, successor, assignee, transferee or personal representative thereof, but shall not mean the city.
(bb) "Service tier" means a category of cable service provided by the franchisee and for which a separate charge is made by the franchisee.
(cc) "Street or streets" means the surface, the air space above the surface and the area below the surface of any public street, highway, road, freeway, thoroughfare, parkway, sidewalk, bridge, court, lane, path, alley, way, drive, circle, easement or any other public right-of-way or public place, including public utility easements, or any property in which the city holds any kind of property interest and any temporary or permanent fixtures or improvements located thereon.
(dd) "Subscriber" means any person who legally receives any service delivered over a cable system.
(ee) "System malfunction" means any cable system equipment or facility failure or malfunction that results in the loss of satisfactory service on one or more channels to one or more subscribers. A malfunction is major if it (1) results in a complete service outage (loss of all channels) for five or more subscribers; or (2) results in the loss of satisfactory service on one or more channels to fifty or more subscribers.
(ff) "Transfer of a franchise" means any transaction in which (1) an ownership or other interest in a franchisee or its cable system is transferred from one person or group of persons to another person or group of persons so that control of the franchisee is transferred; or (2) the rights and/or obligations held by the franchisee under a franchise agreement are transferred or assigned to another person or group of persons. A transfer is pro forma when it involves no substantial change in the ultimate ownership or control of the franchisee. A transfer does not include a pledge of the assets of the system, including the franchise, or the stock of the franchisee or an affiliate in order to secure financing for the franchisee; provided, however, that the foreclosure or execution on, or exercise of, any such pledge does constitute a transfer requiring prior city approval.
(gg) "Two-way capability" means the incorporation into a cable system of all appropriate design and engineering characteristics and features so that two-way transmission, including addressability, over the system can be implemented and activated.
(hh) "Video channel or channel" means a portion of the electromagnetic frequency spectrum which is used in a cable system and which is capable of delivering a television channel, including the associated audio signal, as television channel is defined by the FCC by regulation or otherwise.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.030 - Intent and purposes.¶
(a) It is the intent of the city and the purpose of this chapter to promote the public health, safety and general welfare by providing for the grant of one or more franchises for the construction and operation of a cable system within the city; to provide for the regulation, to the extent provided for by law, of each cable system within the city in the public interest; to provide for the payment of compensation by a franchisee to the city for the use of streets by its cable system; to promote the widespread availability of quality cable service to city residents and businesses, the city and other public institutions; to encourage the development of cable and other communications technologies and cable systems as a means of communication between and among members of the public, city businesses, the city, and other public institutions; to promote competitive cable rates and services; to promote the safe and efficient use of city streets; to enhance and maximize the communicative potential of streets used by cable systems; and to encourage the provision of a diversity of information sources to city residents, businesses, the community, the city and other public institutions by cable technology.
(b) Recognizing the continuing development of communications technology and uses, it is the policy of the city to encourage experimentation and innovation in the development of cable system uses, services, programming and techniques that will be of general benefit to the community to the extent all such experiments and innovations are consistent with applicable laws.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.040 - Grant of authority—Franchise required.¶
(a) The city may grant one or more franchises in accordance with this chapter.
(b) No person may construct or operate a cable system or any other communications transmission facilities over, on or under the streets in the city without first obtaining a franchise granted by the city pursuant to this chapter, and no person may be granted a franchise without having entered into a franchise agreement with the city pursuant to this chapter.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.050 - Franchise characteristics.¶
(a) A franchise authorizes use of city streets, or specified portions thereof, for installing cables, wires, lines, optical fiber, underground conduit and other facilities to operate a cable system or other communication systems within all or specified areas of the city, but does not expressly or implicitly authorize the franchisee to provide service to, or install cables, wires, lines, underground conduit or any other equipment or facilities upon, private property without owner consent (except for use of compatible easements pursuant to Section 621 of the Cable Act, 47 U.S.C. § 541(a)(2)), or to use publicly or privately owned conduits without a separate agreement with the owners.
(b) A franchise is nonexclusive, and will not expressly or implicitly preclude the issuance of other franchises to operate cable systems within the city, or affect the city's right to use the streets or to authorize use of city streets to other persons as it determines appropriate. Notwithstanding the foregoing, and to the extent permitted by applicable law, should the city grant more than one franchise to operate a cable system within the city, the material provisions of such cable franchises shall be reasonably comparable to one another, so that one cable franchisee will not be granted an unfair competitive advantage over another, taking into account differences in the timing of the grant of such cable franchises and the differing circumstances of the cable franchisees and the market at the time each such franchise is granted.
(c) Any privilege claimed under any franchise by a franchisee in any street shall be subordinate to the city's use thereof, and to any other prior lawful occupancy of the streets.
(d) Once a franchise agreement has been accepted and executed by the city and a franchisee, such franchise agreement shall constitute a contract between the franchisee and the city, and the terms, conditions and provisions of such franchise agreement, together with this chapter and all other duly enacted and applicable laws, shall define the rights and obligations of the franchisee and the city relating to the franchise.
(e) Any franchise granted hereunder shall be a privilege held in personal trust by the original franchisee, and may not be transferred, nor may control of a franchisee be transferred, without the prior written consent of the city as provided in Section 3.60.240 of this chapter.
(f) No privilege or exemption shall be conferred or granted by any franchise granted under this chapter except those specifically prescribed herein, and/or the franchise agreement granting the franchise.
(g) No franchise shall authorize the use of any public property other than public streets and public utility easements owned by the city, unless the franchise agreement or subsequent resolution of the council expressly authorizes use of such other public property.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.060 - Franchise, franchisee subject to other laws, police power.¶
(a) A franchisee shall at all times comply with all applicable federal and state laws, including without limitation the Cable Act, all FCC regulations relating to cable operators and cable systems, and all laws relating to disabled persons.
(b) A franchisee shall at all times be subject to and shall comply with all generally applicable laws. A franchisee shall at all times be subject to all lawful exercise of the police power of the city.
(c) Except as may be specifically provided in this chapter or under the terms of a franchise agreement, the failure of the city, upon one or more occasions, to exercise a right or to require compliance or performance under the chapter or a franchise agreement shall not be deemed to constitute a waiver of such right or a waiver of compliance or performance.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.070 - Interpretation of franchise terms.¶
(a) The provisions of this chapter shall apply to a franchise agreement as if fully set forth in the franchise agreement, and the express terms of this chapter will prevail over conflicting or inconsistent provisions in a franchise agreement unless such franchise agreement expresses in explicit intent to waive a requirement of this chapter.
(b) This chapter is not intended to create private rights of a contractual nature enforceable against the city.
(c) The provisions of a franchise agreement will be liberally construed in favor of the city in order to effectuate the purposes and objectives of this chapter and the franchise agreement and to promote the public interest.
(d) Except as to matters which are governed solely by federal law or regulation, a franchise agreement will be governed by and construed in accordance with the laws of the State of California.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.080 - Applications for grant, renewal, modification or transfer of franchises.¶
(a) A written application shall be filed with the city for (1) grant of a new franchise; (2) renewal of a franchise under either the formal or informal procedures in accordance with Section 626 of the Cable Act, 47 U.S.C. § 546; (3) modification of a franchise agreement; (4) a transfer of a franchise; or (5) any other relief from the city pursuant to this chapter or a franchise agreement. An applicant has the burden to demonstrate in its application compliance with all requirements of this chapter and of all other applicable laws.
(b) To be acceptable for filing, a signed original of the application shall be submitted together with five copies, be accompanied by the required application filing fee as set forth in subsection (i) of this section, conform to any applicable request for proposals, and contain all required information. All applications shall include the names and addresses of persons authorized to act on behalf of the applicant with respect to the application.
(c) All applications accepted for filing shall be made available by the city for public inspection.
(d) An application for the grant of a new franchise may be filed pursuant to a request for proposals issued by the city or on an unsolicited basis. The city, upon receipt of an unsolicited application, may issue a request for proposals. If the city elects to issue a request for proposals upon receipt of an unsolicited application, the applicant may submit an amended application in response to the request for proposals, or may inform the city that its unsolicited application should be considered in response to the request for proposals, or may withdraw its unsolicited application. An application which does not conform to the requirements of a request for proposals may be considered nonresponsive and denied on that basis.
(e) An application for the grant of a franchise shall contain, at minimum, the following information:
(1) Name and address of the applicant and identification of the ownership and control of the applicant, including: the names and addresses of the ten largest holders of an ownership interest in the applicant, and all persons with two percent or more ownership interest, including the names and addresses of parents or affiliates holding such ownership interests directly or indirectly; the names and addresses of any subsidiaries of the applicant; the persons who control the applicant; all officers and directors of the applicant; and any other business affiliation and cable system ownership interest of each named person;
(2) An indication of whether the applicant, or any person controlling the applicant, or any officer, director or major stockholder of the applicant, has been adjudged bankrupt, had a cable franchise or license revoked, or been found by any court or administrative agency to have violated a security or antitrust law, or to have committed a felony, or any crime involving moral turpitude; and, if so, identification of any such person and a full explanation of the circumstances;
(3) A demonstration of the applicant's technical, legal and financial ability to construct and/or operate the proposed cable system, including identification of key personnel;
(4) A complete and detailed financial statement of the applicant and a statement prepared by a certified public accountant regarding the applicant's financial ability to complete the construction and operation of the cable system proposed;
(5) A description of the applicant's prior experience in cable system ownership, construction and operation, and identification of communities in which the applicant or any of its principals have, or have had, a cable franchise or license or any interest therein;
(6) Identification of the area of the city to be served by the proposed cable system, including a description of the service area's boundaries and a detailed map showing the same;
(7) A detailed description of the physical facilities proposed, including channel capacity, technical design, performance characteristics, headend and access facilities;
(8) Where applicable, a description of the construction of the proposed system, including an estimate of plant mileage and its location, the proposed construction schedule, a description, where appropriate, of how services will be converted from existing facilities to new facilities, and information on the availability of space in conduits including, where appropriate, an estimate of the cost of any necessary rearrangement of existing facilities;
(9) A description of the services to be provided initially, including all broadcast and nonbroadcast signals to be carried and all nontelevision services to be delivered over the cable system, and if services will be offered by tiers, identification of the signals and/or services to be included on each tier;
(10) A statement setting forth all proposed classifications of rates and charges, including proposed charges for each service tier, installation, converters, and other equipment or services, and the applicant's ownership interest in any proposed program services to be delivered over the cable system;
(11) A demonstration of how the applicant's proposal will reasonably meet the future cable-related needs and interests of the community, including a description of how the proposal will meet the needs described in any recent community needs assessment conducted by or for the city;
(12) Pro forma financial projections for the first five years of the franchise term, including a statement of projected income, and a schedule of planned capital additions, with all significant assumptions explained in notes or supporting schedules;
(13) If an applicant proposes to provide cable service to an area already served by an existing cable franchisee, the identification of the area where the overbuild would occur, the potential subscriber density in the area which would encompass the overbuild, and other information as necessary for the city to make its determination pursuant to Section 3.60.090(c) of this chapter;
(14) Any other information as may be reasonably necessary to demonstrate compliance with the requirements of this chapter and information that the city may request of the applicant that is relevant to the city's consideration of the application; and
(15) An affidavit or declaration of the applicant or authorized officer certifying the truth and accuracy of the information in the application, acknowledging the enforceability of application commitments, and certifying that the proposal meets, and that the applicant will comply with, all federal and state law requirements.
(f) An application for modification of a franchise agreement shall include, at minimum, the following information:
(1) The specific modification requested;
(2) The justification for the requested modification, including the impact of the requested modification on subscribers and others, and the financial impact on the applicant if the modification is approved or disapproved;
(3) A statement whether the modification is sought pursuant to Section 625 of the Cable Act, 47 U.S.C. § 545, and, if so, a demonstration that the requested modification meets the standards set forth in 47 U.S.C. § 545; and
(4) Any other information necessary for the city to make an informed determination on the application for modification.
(g) An application for renewal of a franchise shall comply with the requirements of Section 3.60.230 of this chapter.
(h) An application for approval of a transfer of a franchise shall comply with the requirements of Section 3.60.240 of this chapter.
(i) To be acceptable for filing, an application shall be accompanied by a filing fee in the following amount, as appropriate:
(1) For a new or initial franchise. .....$3,000
(2) For renewal of a franchise. .....3,000
(3) For a transfer of a franchise (other than a pro forma transfer). .....2,000
(4) For a pro forma transfer of a franchise. .....500
(5) For modification of a franchise agreement pursuant to 47 U.S.C. § 545. .....2,000
(6) For any other relief. .....500
The purpose of the filing fee is to defray a portion of the city's cost in processing an application. The filing fee is therefore intended to be a charge incidental to the awarding or enforcing of a franchise within the meaning of Section 622(g)(2)(D) of the Cable Act, 47 U.S.C. § 542(g)(2)(D), and may not be deducted from the franchise fee imposed pursuant to Section 3.60.160 of this chapter.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.090 - Grant of franchises.¶
(a) The city may grant a franchise for a period not to exceed fifteen years to serve all or a specified area of the city.
(b) The city may make the grant of a franchise conditioned upon the completion of construction within a prescribed time or upon the performance of other specific obligations which are to be set forth in the franchise agreement, specifying that failure to comply with the condition will cause the franchise to become null and void without further action by the city.
(c) In evaluating an application for a franchise, the city may consider, among other things, the following factors: the applicant's technical, financial and legal qualifications to construct and operate the proposed system; the nature of the proposed facilities, equipment and services; the applicant's experience in constructing and operating cable systems and providing cable service in other communities, if any; the ability of city streets to accommodate the proposed system; the potential disruption to users of city streets and any resultant inconvenience to the public; and whether the proposal will meet reasonably anticipated community needs and serve the public interest. Where an applicant proposes an overbuild of an existing cable system, the city may also consider the economic feasibility of multiple cable operators, the impact of grant of an overbuild franchise on the ability of the existing franchisee to comply with the terms of its franchise agreement and this chapter; and whether any adverse consequences to the public interest will result if the application is granted, and shall consider any other criteria as required by federal and state law. In evaluating any application for a franchise, the city shall not consider the content of the programming that the applicant proposes to provide.
(d) The city may hold a public hearing to consider an application or applications. The applicant(s) shall be notified of the hearing and shall be given an opportunity to be heard. Based upon the application(s), the testimony presented at the public hearing, any recommendations of the city manager, and any other information relevant to the application(s), the City Council shall decide by resolution whether to grant or deny a franchise application(s) and decide the terms and conditions of any franchise(s) granted. Upon the grant of a franchise, the grantee's application shall become an integral part of said franchise, and the grantee shall be bound by the representations therein made.
(e) If the City Council grants a franchise application, the city manager and the grantee shall agree on the terms of a franchise agreement within sixty calendar days from the date of the council resolution making the grant. This period may be extended for good cause by the city. If agreement is not reached with the city within sixty calendar days from the date of the council resolution making the grant, or if the period is not extended by the city, the franchise grant will be null and void without further action by the city.
(f) Following at least ten days' prior notice to the grantee and the public, the City Council may hold a public hearing at which it will receive comment on the proposed franchise agreement.
(g) After complying with the above requirements, the City Council shall approve or disapprove the proposed franchise agreement by resolution, or may direct that it be subject to further negotiation.
(h) The grant of an initial franchise, a renewed franchise, an application to modify a franchise agreement, or an application to transfer a franchise may be subject to a processing fee in an amount not to exceed the city's reasonable out-of-pocket costs, including all costs and fees incurred by the city for consultants, analysts and counsel, in considering the application, less the amount of the filing fee set pursuant to Section 3.60.080(i) of this chapter. The city shall provide the applicant with an estimate of out-of-pocket costs prior to its consideration of the application. Within thirty calendar days from the date of the resolution approving or denying the franchise agreement or modification or transfer thereof by the City Council, the city shall notify the grantee of the amount of any processing fee and its method of evaluation. If the processing fee is not paid to the city within sixty calendar days of the date of the City Council resolution approving or denying the franchise agreement or a modification or transfer thereof, any approval granted by such resolution will be null and void.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.100 - Insurance—Surety—Indemnification.¶
(a) A franchisee shall maintain, and by its acceptance of the franchise specifically agrees that it will maintain, throughout the entire length of the franchise period and at its sole cost and expense, the following liability insurance coverage insuring the city and the franchisee:
(1) Workers compensation and employee liability insurance in conformance with the laws of the state;
(2) Franchisee's vehicles, including owned, nonowned (e.g., owned by franchisee's employees and used in the course and scope of employment), leased or hired vehicles shall each be covered with automobile liability insurance in the minimum amount of one million dollars combined single limit per accident for bodily injury, death and property damage;
(3) Franchisee shall obtain and maintain comprehensive or commercial general liability insurance coverage in the minimum aggregate annual amount of two million dollars combined single limit, including bodily injury, personal injury, death and broad form property damage;
(4) Franchisee shall obtain and maintain comprehensive CATV transmission errors and omissions insurance in the minimum aggregate annual amount of one million dollars.
(b) All insurance policies shall be with sureties qualified to do business in the State of California; shall be with sureties with an A-1 or better rating of insurance by Best's Key Rating Guide, Property/Casualty Edition; and in a form approved by the city manager. The city may require coverage and amounts in excess of the above minimums where necessary in view of the franchisee's greater exposure to liability.
(c) All insurance policies shall be available for review by the city, and a franchisee shall keep on file with the city certificates of insurance.
(d) All insurance policies, other than the workers' compensation and employee liability policies required by subdivision (a)(1) of this section, shall name the city, its officers, boards, commissions, commissioners, agents and employees, as additional insureds and shall further provide that any cancellation or reduction in coverage shall not be effective unless sixty days' prior written notice thereof has been given to the city. A franchisee shall not cancel any required insurance policy without submission of proof that the franchisee has obtained alternative insurance satisfactory to the city which complies with this chapter.
(e) A franchisee shall, at its sole cost and expense, indemnify, hold harmless and defend the city, its officials, boards, commissions, commissioners, agents and employees against any and all claims, suits, causes of action, proceedings and judgments for damages or equitable relief arising out of the construction, maintenance or operation of its cable system, or in any way arising out of the franchisee's enjoyment or exercise of a franchise granted hereunder, regardless of whether the act or omission complained of is authorized, allowed or prohibited by this chapter or a franchise agreement. This provision includes, but is not limited to, claims arising out of copyright infringements or a failure by the franchisee to secure consents from the owners, authorized distributors, or franchisees of programs to be delivered by the cable system.
(f) A franchisee shall, at its sole cost and expense, fully indemnify, defend and hold harmless the city, and in its capacity as such, the officers, agents and employees thereof, from and against any and all claims, suits, actions, liability and judgments for damages or otherwise subject to Section 638 of the Cable Act, 47 U.S.C. § 558, arising out of or alleged to arise out of the installation, construction, operation or maintenance of its system, including but not limited to any claim against the franchisee for invasion of the right of privacy, defamation of any person, firm or corporation, or the violation or infringement of any copyright, trademark, trade name, service mark or patent, or of any other right of any person, firm or corporation. Nothing in this section shall prohibit the city from participating in the defense of any litigation by its own counsel and obtaining indemnification of the costs associated therewith.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.110 - Security fund.¶
(a) Prior to the franchise becoming effective, the franchisee shall post with the city a cash security deposit in an amount of not less than twenty-five thousand dollars to be used as a security fund to ensure the faithful performance of all provisions of this chapter, the franchise agreement, and other applicable law, and compliance with all orders, permits and directions of the city, and the payment by the franchisee of any claims, liens, fees or taxes due the city which arise by reason of franchisee's construction, operation or maintenance of a cable system in the city. A franchise agreement may provide for a security fund greater than the minimum specified in this subsection where the city determines, under circumstances existing at the time, that such larger security fund is necessary to protect the public or to provide adequate incentive to the franchisee to comply with this chapter and the franchise agreement.
(b) Unless a franchise agreement provides otherwise, the entire balance of the security fund shall be deposited by franchisee in the form of a certified or cashier's check made payable to the city.
(c) The city shall place the security deposit in an interest-bearing account. The interest will accrue to the benefit of the franchisee but may not be withdrawn by the franchisee except as provided in subsection (f) of this section; all interest will be added to and become part of the security fund during the term of the franchise.
(d) If a franchise fails to pay the city any fees or taxes, liquidated damages, damages, or costs or expenses incurred by the city by reason of any act or default of the franchise, or if the franchisee fails to comply with any provision of the franchise agreement or this chapter that the city determines can be remedied by an expenditure of the security fund, the city may, after ten calendar days' notice to the franchisee, withdraw that amount with any interest or penalties from the security fund. After such withdrawal, the city shall promptly notify the franchisee of the amount and date of the withdrawal.
(e) Within thirty calendar days after notice to the franchisee that an amount has been withdrawn by the city from the security fund, the franchisee shall deposit a sum of money sufficient to restore the security fund to the total amount in the fund immediately prior to the withdrawal. If the franchisee fails to restore the security fund to the original amount within thirty calendar days, the entire security fund remaining may be forfeited, and/or such failure may be considered a material breach of this chapter and may be used as grounds for revocation of the franchise.
(f) The security fund will become the property of the city in the event the franchise is revoked. The franchisee is entitled to the return of the balance of the security fund that remains following expiration of the franchise; provided, that there is no outstanding default or unpaid amounts owed to the city by the franchisee.
(g) The rights reserved to the city with respect to the security fund are in addition to all other rights of the city, whether reserved by this chapter or authorized by other law, or the franchise agreement, and no action, proceeding or exercise of a right with respect to such security fund will affect any other right the city may have.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.120 - Performance bond.¶
(a) A franchise agreement may provide or the city engineer may require that, prior to any cable system construction, upgrade, or other work in the streets, a franchisee shall establish in the city's favor a performance bond in an amount specified in the franchise agreement or other permit or authorization as necessary to ensure the franchisee's faithful performance of the construction, upgrade or other work.
(b) In the event a franchisee subject to such a performance bond fails to complete the cable system construction, upgrade or other work in the streets in a safe, timely and competent manner in accord with the provisions of the franchise agreement, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the city as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the franchisee, or the cost of completing or repairing the system construction, upgrade or other work in the streets, plus a reasonable allowance for attorneys' fees, up to the full amount of the bond. The city may also recover against the bond any amount recoverable against the security fund pursuant to Section 3.60.110(d) of this chapter where such amount exceeds that available under the security fund.
(c) The franchise agreement or the city engineer may specify that upon completion of the system construction, upgrade or other work in the streets and payment of all construction obligations of the cable system to the satisfaction of the city, the city may eliminate the bond or reduce its amount. However, the city may subsequently require an increase in the bond amount for any subsequent construction, upgrade or other work in the streets.
(d) The performance bond shall be issued by a surety with an A-1 or better rating of insurance in Best's Key Rating Guide, Property/Casualty Edition; shall be subject to the approval of the City Attorney; and shall contain the following endorsement:
This bond may not be canceled, or allowed to lapse, until sixty (60) days after receipt by the City, by certified mail, return receipt requested, of a written notice from the issuer of the bond of intent to cancel or not to renew.
(e) The rights reserved by the city with respect to any performance bond established pursuant to this section are in addition to all other rights and remedies the city may have under this chapter, the franchise agreement, or at law or equity.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.130 - Minimum facilities and services.¶
(a) The following minimum requirements for facilities and services apply to all franchises granted by the city. The city may require in a franchise agreement that a franchisee exceed these minimum requirements where it determines, under circumstances existing at the time of the application, that the additional requirements are necessary to meet public needs.
(1) Any cable system constructed, upgraded or reconstructed after the effective date of this chapter shall, at a minimum, (1) be able to pass frequencies of up to 450 mHz and have a capacity of at least sixty video channels for immediate or potential use with at least fifty-five such channels activated and in use; and (2) two-way capability. A franchise agreement may provide for a larger minimum channel capacity requirement.
(2) The city may require that a franchisee provide access channels for public, educational and/or governmental use.
(3) A cable system shall provide leased access channels as required by federal law.
(4) A franchisee may be required to provide cable service without charge to all facilities within the city passed by the cable system that are owned or predominantly occupied by the city or an educational institution and devoted to predominantly educational or governmental use. Such cable service shall be provided by means of a single drop extending to each building selected by the city or the educational institution. Each such drop shall provide all services available over the cable system, with the exception of optionally-charged per-channel or per-program services. A franchisee may be required to extend a drop internally to particular locations within the city or educational institution facilities. If a franchise agreement does not require a franchisee to extend a drop internally, the drop may be internally extended by the city or the educational institution without cost to, or responsibility of the franchisee, subject to the condition that all such internal extensions shall be inspected for signal leakage by the franchisee, at no cost to the city or the educational institution, to ensure they meet all FCC requirements relative to signal leakage.
(5) A franchisee shall design its system to allow the city to interrupt cable service in an emergency to deliver necessary information to subscribers.
(6) A franchisee shall make available to its subscribers equipment capable of decoding closed circuit captioning information for the hearing impaired or, in the alternative, provide any requesting subscribers with information as to how they might obtain such equipment.
(7) Standard installation shall consist of a drop, not exceeding one hundred fifty feet, to a subscriber's residence or place of commercial or industrial business. Residential or commercial business drops in excess of one hundred fifty feet may be charged according to the franchisee's rate schedule.
(b) Unless a franchise agreement provides otherwise, a franchisee shall make cable service available to every dwelling within the franchisee's service area.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.140 - Technical standards.¶
(a) Any cable system within the city shall meet or exceed all FCC and other applicable federal or state technical and signal quality standards for cable systems, including any such standards or regulations as hereinafter may be amended or adopted.
(b) A cable system shall be capable of delivering all National Television Systems Committee (NTSC) color and monochrome standards signals and designed to provide picture quality of TASO Grade 2 or better and superior reliability. Should the cable system carry any non-NTSC or new NTSC standard signals, it shall be capable of delivering such signals with superior picture quality and reliability, and in a form meeting any and all standards for such signals that may hereinafter be adopted.
(c) All television signals transmitted on a cable system shall include any closed circuit captioning information for the hearing impaired that is included within the signal as received.
(d) Antennas, supporting structures, headend and associated equipment, and outside plant used in the system shall be designed to comply with the recommendations of the Electronics Industry Association on tower structures and outside plant, and with all federal, state, county, city and/or utility bus, ordinances, rules and regulations.
(e) All construction, installation and maintenance shall comply with the National Electrical Safety Code, the National Electric Code, all laws and accepted industry practices, and as hereinafter may be amended or changed.
(f) A franchisee shall not design, install or operate its facilities in a manner that will interfere with the signals of any broadcast station, the electrical or telephone system located in any building, the cable system of another franchisee, or individual or master antennas used for receiving television or other broadcast signals.
(g) Franchisee shall provide the city with copies of its semiannual FCC proof of performance tests, and shall be prepared to show, upon request by the city, that the system complies with all applicable FCC rules.
(h) A franchisee is required to be in substantial compliance with the technical standards herein at all times, substantial compliance being defined as ninety-five percent of the received channels as observed at subscriber locations shall meet all applicable technical standards simultaneously at the time of measurement.
(i) A franchisee shall provide the city with at least ten days advance written notice before each of the semiannual performance tests so that a city representative may be present.
(j) A franchisee shall maintain all of its real property, headend facilities and outside plant in a safe and not unsightly condition.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.150 - Access channels and facilities.¶
(a) Applications for an initial or renewed franchise may and, at the city's request, shall include proposals for the provision of access channels and equipment and facilities relating to such channels sufficient to meet community needs.
(b) In addition to any access facilities and equipment provided by a franchise pursuant to a franchise agreement, a franchisee shall provide, at the request of the city manager or a duly designated DAO, use of franchisee's studio equipment and technical services for production of live and videotaped access programs, subject to availability and scheduling requirements of the franchisee.
(c) The city may, at any time and in its sole discretion, delegate responsibility for developing, managing, administering or utilizing any access channel or access channels to one or more DAOs.
(d) Upon a franchisee's consent, and upon terms and conditions mutually agreed on by the city and a franchisee, whether in a franchise agreement or otherwise, the city may delegate responsibility for developing, managing, administering or utilizing any access channel or access channels to a franchisee.
(e) Applications for an initial or renewed franchise may and, at the city's request, shall include proposals for the provision of an institutional network interconnecting city, educational institution and/or other public facilities.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.160 - Franchise fee.¶
(a) A franchisee, as compensation for the privilege granted under a franchise for the use of the city's streets to construct and operate a cable system, shall pay to the city a franchise fee in an amount up to a maximum of either (1) five percent of the franchisee's gross revenues derived from the operation of its cable system within the city during the term of its franchise; or (2) in the event the Cable Act or other applicable federal or state law is amended to permit the city to assess a franchise fee of a greater amount than that specified in (1) above, the maximum amount permitted by such amendment to the Cable Act or other applicable law.
(b) A franchisee shall pay the franchise fee due to the city on a quarterly basis. Payment for each quarter shall be made to the city not later than thirty days after the end of each calendar quarter.
(c) Unless a franchise agreement provides otherwise, a franchisee shall file with the city within thirty days of the end of each calendar quarter a statement setting forth franchisee's gross revenues during the preceding quarter and the number of subscribers and equivalent basic subscribers served.
(d) No acceptance by the city of any franchise fee payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a re-lease of any claim the city may have for additional sums payable.
(e) The franchise fee payment is not a payment in lieu of any other tax, fee or assessment.
(f) A franchisee shall file within four months following the end of each of its fiscal years a statement setting forth the computation of gross revenues used to calculate the franchise fee for the preceding year and a detailed explanation of the method of computation and the amount and nature of all revenue sources used to make the computation. The statement shall be certified by a certified public accountant or the franchisee's chief financial officer or treasurer. The franchisee will bear the cost of the preparation of such annual gross revenues statements. To the extent that such annual statement accurately shows that franchisee has underpaid franchise fees in the preceding four calendar quarters, payment of such underpayment shall accompany the annual statement. To the extent such annual statement accurately shows that franchisee has overpaid franchise fees in the preceding four calendar quarters, franchisee may credit such overpayment against the franchise fees owed for the next calendar quarter.
(g) The city may, from time to time, and upon reasonable notice, inspect and audit any and all books and records of the franchisee relevant to the determination of gross revenues and the computation of franchise fees due, and may recompute any amounts determined to be payable under the franchise. The cost of the audit will be borne by the franchisee if, as a result of the audit, the city determines that the franchisee has underpaid the franchise fees owed in an amount exceeding three percent of the franchise fees actually paid. The audit shall be performed in San Bernardino County, and it shall be the responsibility of the franchisee to have all books and records necessary to satisfactorily perform the audit readily available to the city's auditors within a reasonable time of the city's request, such time not to exceed thirty days.
(h) In the event that a franchise fee payment is not received by the city on or before the due date set forth in subsection (b) of this section, or is underpaid, the franchisee will be charged interest from the due date at an interest rate equal to three percent above the rate for three-month federal treasury bills at the most recent United States Treasury Department sale of such treasury bills occurring prior to the date of the due date of the franchise fee payment. In addition, the franchisee will pay a late charge of eight percent of the amount of the unpaid or underpaid franchise fee payment if the franchisee does not pay the full balance owed within ten days of the city's written demand.
(i) When a franchise terminates for whatever reason, the franchisee shall file with the city within ninety calendar days of the date its operations in the city cease a financial statement, certified by a certified public accountant or the franchisee's chief financial officer, showing the gross revenues received by the franchisee since the end of the previous fiscal year. Adjustments will be made at that time for franchise fees due to the date that the franchisee's operations ceased.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.170 - Reports and records.¶
(a) Within four months of the close of its fiscal year, a franchisee shall provide the city an annual report that includes the following information:
(1) A summary of the previous year's activities in development of the system, including but not limited to, services initiated or discontinued, number of subscribers and equivalent subscribers for each tier of service (including gains and losses), homes passed, and miles of cable distribution plant in service. The summary shall also include a comparison of any construction, including system upgrades, during the year with any projections previously provided to the city, as well as rate and charge increases and/or decreases for the previous fiscal year;
(2) A summary of gross revenues accompanied by an auditor's report from an independent certified public accountant stating that the summary of gross revenues is fairly presented, in all material respects. The statement shall include notes that specify all significant accounting policies and practices upon which it is based. A summary shall be provided comparing the current year with previous years since the beginning of the franchise;
(3) A detailed copy of updated maps depicting the location of all cable plant, showing areas served and locations of all trunk lines and feeder lines in the city;
(4) A summary of subscriber or consumer complaints, identifying the number and nature of complaints and their disposition. Where complaints involve recurrent system problems, the nature of each problem and the corrective measures taken shall be identified. More detailed information on complaints shall be submitted upon request of the city;
(5) A summary of the number of major system malfunctions and planned outages, and number of major system malfunctions by duration;
(6) If the franchisee is a corporation, a list of officers and members of the board of directors; the officers and members of the board of directors of any parent corporation; and if the franchisee or its parent corporation's stock or ownership interests are publicly traded, a copy of its most recent annual report;
(7) If the franchisee is a partnership, a list of the partners, including any limited partners, and their addresses; and if the general partner is a corporation, a list of officers and members of the board of directors or the corporate general partner, and the officers and directors of any parent corporation; and where the general partner or its parent corporation's ownership interests are publicly traded, a copy of its most recent annual report;
(8) A list of all partners or known stockholders holding five percent or more ownership interest in the franchisee and any parent corporation; provided, however, when any such entity has fewer than ten persons holding five percent or greater ownership interest, the ten largest such holders;
(9) A copy of the franchisee's rules and regulations applicable to subscribers of the cable system;
(10) A full schedule and description of services, service hours and location of the franchisee's customer service office or offices available to subscribers in the city, and a schedule of all rates, fees and charges for all services provided over the cable system.
(b) Upon request of the city, a franchisee shall provide:
(1) A financial statement for the system, including a statement of income, balance sheet, and a statement of sources and applications of funds. If such a statement does not exist for the system, franchisee shall provide such relevant statements, such as a statement of income or profit and loss statement, as do exist. If audited statements do not exist, franchisee may provide unaudited statements, provided the statements were prepared in the ordinary course of business;
(2) An audited financial statement of the franchisee, including a statement of income, balance sheet, and a statement of sources and applications of funds.
(c) Upon the request of the city, franchisee shall provide the following documents to the city as received or filed, without regard to whether the documents are filed by the franchisee or an affiliate:
(1) Annual report of the franchisee or each affiliate of franchisee which controls franchisee and issues an annual report;
(2) Copyright filings reflecting the operation of the system;
(3) FCC Forms 325 and 395 for the system, or their successor forms; and
(4) Any filing made at the FCC or any state or federal agency regarding the system, its proof-of-performance tests, or its RF signal leakage tests.
(d) A franchisee shall provide the following documents to the city as received or filed by a franchisee without regard to whether the documents are filed by the franchisee or an affiliate:
(1) Any notice of deficiency, forfeiture or documents instituting any formal investigation, civil or criminal proceeding issued by any state or federal agency regarding the system, franchisee or any affiliate of the franchisee, to the extent the same is part of the public record and may adversely and materially affect the franchisee's operations in the city or a franchisee's obligations under this chapter or its franchise agreement;
(2) Any request for protection under bankruptcy laws, or any judgment related to a declaration of bankruptcy.
(e) A franchise shall maintain a complete set of books and records, available for inspection and audit by the city in San Bernardino County on reasonable prior notice and during normal business hours. It shall be franchisee's obligation to make such books and records available within a reasonable time after the city's request, such reasonable time not to exceed thirty days after the city's request.
(f) Upon written request by the franchisee and to the extent allowed by applicable law, information of a proprietary nature submitted by the franchisee to the city pursuant to this chapter or a franchise agreement will not be made available for public inspection. The city shall give a franchisee notice of any request by the public to inspect such information and shall not release such information to the public without giving the franchisee a reasonable opportunity, in light of the requirements of applicable law, to respond or oppose the release of such information.
(Ord. 2216 § 1 (part), 2007; Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.180 - Customer service requirements.¶
(a) A franchisee shall maintain at least one business office in the city open during normal business hours, which shall include, at a minimum, eight a.m. through five p.m., Monday through Friday, and nine a.m. through one p.m., on Saturday.
(b) A franchisee shall maintain a listed local, toll-free telephone number and employ a sufficient number of telephone lines, personnel and answering equipment or service to allow reasonable access by subscribers and members of the public to contact the franchisee on a full-time basis, twenty-four hours a day, seven days a week including holidays. Telephone answering time (including hold and transfer time) shall not exceed thirty seconds or four rings. This standard shall be met ninety percent of the time. When the business office is closed, an answering machine or service capable of receiving and recording service complaints and inquiries shall be employed. The after-hours answering service shall comply with the same telephone answer time standard set forth in this subsection. Each franchisee shall, upon request, supply statistical data to verify it has met the standards set forth herein.
(c) A franchisee shall employ and maintain sufficient qualified personnel and equipment to be available:
(1) To accept payments during normal business hours;
(2) To exchange or accept converters or other equipment during normal business hours;
(3) To receive subscriber complaints or requests for service or repairs on a full-time basis, twenty-four hours a day, seven days a week; and
(4) To initiate service installations, undertake normal repairs, and initiate action with respect to subscriber complaints on Monday through Friday, from eight a.m. to five p.m., and on Saturday from nine a.m. through one p.m. and at such other times as may be necessary to accommodate demand.
(d) Standard installation work shall be performed within five business days after an order has been placed except in those instances where a subscriber specifically requests an installation date beyond the five-business-day period. If scheduled installation is neither started nor completed as scheduled, the subscriber will be telephoned by an employee of the franchisee the same day. Evening personnel shall also attempt to call subscribers at their homes between the hours of five thirty a.m. and eight p.m. If the call to the subscriber is not answered, an employee of the franchisee shall telephone the subscriber the next day.
(e) Installation work shall be prioritized as follows:
(1) Service change or repair and rescheduling of appointments for existing subscribers;
(2) Installation of service for new subscribers;
(3) Disconnection of service for existing subscribers.
Subscribers who have experienced two missed installation or service appointments due to the fault of franchisee shall receive installation free of charge. If the installation was to have been provided free of charge or if the appointment was for service or repair, the subscriber shall receive one month of the most widely subscribed to service tier free of charge.
(f) All appointments for service, installation or disconnection shall be specified by date. The franchisee shall offer a choice of morning (eight a.m. to twelve p.m.), afternoon (twelve p.m. to five p.m.) or all-day (eight a.m. to five p.m.) appointment opportunities. A franchisee may not cancel an appointment with a customer after the close of business on the business day prior to a scheduled appointment and, if the installer is running late and will not be able to keep the service appointment as scheduled, the customer will be contacted and the appointment rescheduled at the customer's convenience.
(g) Disconnection.
(1) Voluntary Disconnection.
(A) A subscriber may terminate service at any time.
(B) A franchisee shall promptly disconnect any subscriber who so requests from the grantee's cable system. No period of notice prior to voluntary termination of service may be required of subscribers by any franchisee. So long as the subscriber returns equipment within three business days of the disconnection, nor charge may be imposed by any franchisee for such voluntary disconnection, or for any cable services delivered after the date of disconnect request.
(C) A subscriber may be asked, but not required, to disconnect the franchisee's equipment and return it to the business office.
(D) Any security deposit and/or other funds due the subscriber shall be refunded on disconnected accounts after the converter has been recovered by the franchisee. The refund process shall take a maximum of thirty days from the date disconnection was requested to the date the customer receives the refund.
(2) Involuntary Disconnection. If a subscriber fails to pay a monthly subscriber or other fee or charge, the franchisee may disconnect the subscriber's service outlet; however, such disconnection shall not be effected until forty-five days after the due date of the monthly subscriber fee or other charge, and unless the franchisee has given at least ten days' advance written notice of intent to disconnect to the subscriber in question. If the subscriber pays within forty-five days of the due date and after notice of disconnection has been given, the franchisee shall not disconnect. After disconnection, upon payment by the subscriber in full of all proper fees or charges, including the payment of the reconnection charge, if any, the franchisee shall promptly reinstate service.
(3) Nothing in this chapter shall be construed to prevent the franchisee from removing its property from a subscriber's premises upon the termination of service. At the subscriber's request, a franchisee shall remove all of its facilities and equipment from the subscriber's premises within thirty calendar days of the subscriber's request. Where removal is impractical, such as with buried cable or internal wiring, facilities and equipment may be disconnected and abandoned rather than removed.
(h) With regard to mobility-limited customers, upon subscriber request, the franchisee shall arrange for pickup and/or replacement of converters or other company equipment at the subscriber's address or else provide a satisfactory equivalent (such as the provision of a postage-prepaid mailer).
(i) A franchisee shall have available at all times personnel, equipment and procedures capable of locating and correcting system malfunctions. Major system malfunctions shall be corrected promptly, and corrective measures initiated immediately, and in no event later than twenty-four hours after the malfunction becomes known. Corrective action for all other malfunctions shall be initiated as provided for in the franchise agreement, but not later than the next business day after the subscriber service call is received. A franchisee shall use its best efforts to resolve any service complaint within five working days. A franchisee shall not impose charges on subscribers for service calls related to the cable system, cable service or any equipment provided by the franchisee.
(j) A franchisee shall develop written procedures for the investigation and resolution of all subscriber or city resident complaints, including, but not limited to, those regarding the quality of service and equipment malfunction, which procedures shall be subject to the review and approval by the city manager. A subscriber or city resident who has not been satisfied by following the franchisee's procedures may file a written complaint with the city manager, who will provide a copy thereof to the franchisee, and then investigate the matter and, in consultation with the franchisee as appropriate, attempt to resolve the matter. A franchisee's good faith or lack thereof in attempting to resolve subscriber and resident complaints in a fair and equitable manner will be considered in connection with the franchisee's renewal application, and a franchisee's failure to act in good faith may result in appropriate enforcement action against the franchise.
(k) A franchisee shall provide each subscriber at the time cable service is installed and at least every twelve months thereafter, written instructions for placing a service call, filing a complaint or requesting an adjustment. Each subscriber shall also be provided with a schedule of the subscriber's rates and charges, a copy of the service contract, delinquent subscriber disconnect and reconnect procedures, and a description of any other of the franchisee's policies in connection with its subscribers. Copies of these instructions shall be provided to the city.
(l) A franchise shall provide all subscribers and the city manager with at least thirty days' advance written notice of any changes in rates, charges, programming, channel positions, or initiations or discontinuations of service over the cable system.
(m) A franchisee may intentionally interrupt service on the cable system only for good cause and for the shortest time possible and, except in emergency situations, only after a minimum of forty-eight hours' prior notice to subscribers and the city of the anticipated service interruption; provided, however, planned maintenance which does not require more than two hours interruption of service and which occurs between the hours of twelve a.m. and six a.m. shall not require such forty-eight hour notice. Franchisee shall give the city manager not less than twenty-four hours' prior notice of any such planned service interruption.
(n) A franchisee shall maintain a complete record of all service complaints received, whether written, verbal, or telephonic, and action taken. These records shall be maintained in the city, and shall be available for inspection by the city during normal business hours upon reasonable prior notice. Such records shall be retained throughout the franchise term. Such records shall be subject to provisions of Section 3.60.170(e) of this chapter.
(o) Except for planned service outages where subscribers are provided reasonable notification in advance, upon a subscriber's request a franchisee shall provide a prorated twenty-four hour credit to the subscriber's account for any period of four hours or more within a twenty-four hour period during which a subscriber experienced an outage of service or substantial impairment of service, whether due to a system malfunction or other cause.
(p) Billing.
(1) The franchisee's first billing statement after a new installation or service change shall be prorated as appropriate and shall reflect any security deposit.
(2) The franchisee's billing statement must be clear, concise and understandable, must itemize each category of service and equipment provided to the subscriber, and state clearly the charge therefor.
(3) The franchisee's billing statement must show a specific payment due date not earlier than twenty days after the date the statement is mailed. Any balance not received by the due date may be assessed a late fee consistent with consumer protection and usury laws of the state. The late fee will appear on the following month's billing statement.
(4) The franchisee must notify the subscriber that he or she can remit payment in person at the franchisee's office in the city and inform the subscriber of the address of that office.
(5) Subscribers shall not be charged a late fee or otherwise penalized for any failure by the franchisee, its employees, or contractors, including failure to timely or correctly bill the subscriber, or failure to properly credit the subscriber for a payment timely made.
(6) In the event of a billing dispute, the franchisee shall waive a late fee during the period until a final resolution of the dispute is agreed upon between the franchisee and the city.
(q) Alteration of Service. The franchisee may not substantially alter the service being provided to a subscriber (including by retiering, restructuring a tier or otherwise) without the express permission of such subscriber, unless it complies with this subsection.
(1) If a franchisee wishes to alter the service being provided to a subscriber (including by retiering, restructuring a tier or otherwise) in such a way that the subscriber will no longer be able to obtain the same package of services (exclusive of programming additions or deletions affecting no more than three channels), then the franchisee must provide the subscriber with sixty days' notice of such alteration, explain the substance and full effect of the alteration, and provide the subscriber the right within the sixty-day period following notice, to opt to receive any combination of services offered by the franchise or to discontinue service. Subscribers may not be required to pay any charge (other than the regular service fee), including an upgrade or downgrade charge, in order to receive such services selected.
(2) Except as provided herein, no charge may be made for any service or product which the subscriber has not affirmatively indicated, in a manner separate and apart from payment of the regular monthly bill, that he or she wishes to receive.
(r) Acts of God, natural disasters, war, and accidents and other circumstances beyond the franchisee's control are excluded from the provisions of this section, provided that the franchisee shall not be excused by mere economic hardship nor by misfeasance, malfeasance or nonfeasance of its directors, officers, employees, agents or contractors.
(Ord. 2216 § 1 (part), 2007; Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.190 - Subscriber privacy.¶
(a) A franchisee shall at all times protect the privacy of all subscribers pursuant to the provisions of Section 631 of the Cable Act, 47 U.S.C. § 551. A franchisee shall not condition subscriber service on the subscriber's grant of permission to disclose information which, pursuant to federal or state law, cannot be disclosed without the subscriber's explicit consent. No penalties or extra charges may be invoked by the franchisee for a subscriber's failure to grant consent.
(b) Neither the franchisee nor its agents or employees shall, without the prior and specific written authorization of the subscriber involved, sell or otherwise make available for commercial purposes the names, addresses or telephone numbers of any subscriber or subscribers, or any information which identifies the individual viewing habits of any subscriber or subscribers.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.200 - Discrimination prohibited.¶
(a) No franchisee may in its rates or charges, or in the availability of the services or facilities of its system, or in any other respect, make or grant undue preferences or advantages to any subscriber, potential subscriber, or group of subscribers or potential subscribers, nor subject to any such persons or group of persons to any undue prejudice or any disadvantage.
(b) To the extent required by the Cable Act, a franchisee shall have a rate structure for the provision of cable service that is uniform throughout the geographic area in which cable service is provided over its cable system.
(c) A franchisee shall not deny, delay or otherwise burden service or discriminate against subscribers or users on the basis of age, race, creed, religion, color, sex, handicap, national origin, marital status or political affiliation, except for discounts for the elderly, handicapped or economically disadvantaged groups that are applied in a uniform and consistent manner.
(d) A franchisee shall not deny cable service to any potential subscriber because of the income of the residents of the area in which the subscriber resides.
(e) A franchisee shall not refuse to employ, nor discharge from employment, nor discriminate against any person in compensation or in terms, conditions or privileges of employment because of age, race, creed, religion, color, sex, handicap, national origin, marital status or political affiliation. A franchisee shall comply with federal, state and local laws and regulations governing equal employment opportunities, as the same may be from time to time amended.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.210 - Use of streets.¶
(a) All wires, cable lines, other transmission lines, amplifiers, pedestals, equipment and structures shall be installed and located to cause minimum interference with the rights and convenience of property owners. The city may issue such rules and regulations concerning the installation and maintenance of a cable system installed in, on or over the streets, as may be consistent with this chapter and the franchise agreement.
(b) All safety practices required by law shall be used during construction, maintenance and repair of a cable system. A franchisee shall not place facilities, equipment or fixtures where they will interfere with any gas, electric, telephone, water, sewer or other utility facilities, or obstruct or hinder in any manner the various utilities serving the residents of the city or use of any street or any other public right-of-way.
(c) A franchisee shall at all times maintain and keep in a good state of repair to the satisfaction of the city, all of its cable system equipment, property and facilities.
(d) A franchisee shall use existing poles, conduits and other facilities whenever possible, and shall not construct or install any new, different or additional poles, conduits or other facilities, whether on public property or on privately-owned property, unless and until first securing the written approval of the city manager, which shall not be unreasonably withheld and which shall be acted upon within thirty days of receipt of a written request from a franchisee.
(e) Whenever a franchisee does not use existing poles, conduits and other facilities, or whenever existing conduits and other facilities shall be located beneath the surface of the streets, or whenever the city shall undertake a program designed to cause all conduits and other facilities to be located beneath the surface of the streets in any area or throughout the city, in the exercise of its police power or pursuant to the terms hereof, upon reasonable notice (but in no event less than thirty days' notice to the franchisee), any such conduits or other facilities of franchisee shall be constructed, installed, placed or replaced beneath the surface of the streets. Any construction, installation, placement, replacement or changes which may be so required shall be made at the expense of the franchisee, whose costs shall be determined as in the case of public utilities.
(f) The city shall have the right, free of charge, to make additional use, for any public or municipal purpose, whether governmental or proprietary, of any poles, conduits or other similar facilities erected, controlled or maintained exclusively by or for a franchisee in any street, provided such use by city does not interfere with use of such facilities by a franchisee.
(g) In those areas of the city where the transmission of distribution facilities or the respective public utilities providing telephone, communication and electric services are underground, or hereafter are placed underground, a franchisee likewise shall construct, operate and maintain all of its transmission and distribution facilities underground. The term "underground" shall include a partial underground system; provided, that upon obtaining the written approval of the city manager, amplifiers in a franchisee's transmission and distribution lines may be placed in appropriate pedestals upon the surface of the ground.
(h) A franchisee, at its expense, shall, within ten days of written notice, protect, support, temporarily disconnect, relocate or remove any property of franchisee when, in the opinion of the city engineer, the same is required by reason of traffic conditions, public safety, street vacation, freeway or street construction; change or establishment of street grade, installation of sewers, drains, waterpipes, power line, signal line, transportation facilities, tracks, or any other type of structure or improvements by governmental agencies, whether acting in a governmental or a proprietary capacity, or any other structure or public improvement, including but not limited to movement of buildings, urban renewal and redevelopment, and any general program under which the city shall undertake to cause all such properties to be located beneath the surface of the ground. A franchisee shall in all cases have the privilege, subject to the corresponding obligations, to abandon any property of franchisee in place, as herein provided. Nothing under this chapter shall be deemed a taking of the property of franchisee, and franchisee shall be entitled to no surcharge by reason of anything under this chapter.
(i) Upon the failure, refusal or neglect of franchisee to cause any work or other act required by law or under this chapter to be properly completed in or over or under any street within any time prescribed therefor, or upon notice given, where no time is prescribed, the city manager may cause work or other act to be completed in whole or in part, and upon so doing shall submit to the franchisee an itemized statement of the costs thereof, including all additions incidental costs incurred as a result of franchisee's failure to undertake work within the time period specified. The franchisee shall, within thirty days after receipt of such statement, pay to the city the entire amount thereof.
(j) A franchise shall obtain any required permits before causing any disturbance or damage to private property or the streets as a result of its construction or operations. Upon completion of any work, a franchisee shall restore such property to its former condition in a manner approved by the city. If such restoration is not performed in a reasonable and satisfactory manner within fourteen days, the city, or the private property owner may, after prior written notice to the franchisee, cause the repairs to be made at the expense of the franchisee.
(k) In the event that:
(1) The use of any part of the system of franchisee is discontinued for any reason for a continuous period of thirty days, without prior written notice to and approval by the city; or
(2) Any part of such system has been installed in any street or other area without complying with the material requirements hereof; or
(3) Any franchise shall be terminated, revoked, canceled or shall expire; then the franchisee shall, at the option of the city, and at the expense of franchisee and at no expense to the city, and upon demand of the city, promptly remove from any streets or other area all property of franchisee, and franchisee shall promptly restore the streets or other area from which such property has been removed to such condition as the city manager shall approve.
(l) The council may, upon written application therefor by a franchisee, approve the abandonment of any such property in place by franchisee and under such terms and conditions as the council may prescribe. Upon abandonment of any such property in place, franchisee shall cause to be executed, acknowledged and delivered to the city such instruments as the City Attorney shall prescribe and approve, transferring and conveying the ownership of such property to the city.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.220 - Enforcement remedies.¶
(a) In addition to any other remedies available at law or equity, the city may invoke any one or combination of the following remedies in the event a franchisee violates this chapter, its franchise agreement or applicable state or federal law:
(1) Impose liquidated damages in such amount, whether on a per diem, per incident or other measure of violation, as provided in the franchise agreement. Payment of liquidated damages by the franchisee will not relieve the franchisee of its obligation to comply with the franchise agreement and this chapter;
(2) Reduce the duration of the franchise on such basis as the city determines is reasonable pursuant to the procedures specified in Section 3.60.250 of this chapter;
(3) Revoke the franchise pursuant to the procedures specified in Section 3.60.250 of this chapter.
(b) In determining which remedy or remedies are appropriate, the city shall take into consideration the nature of the violation, the person or persons bearing the impact of the violation, the nature of the remedy required in order to prevent further violations, and such other matters as the city determines are appropriate to the public interest.
(c) In addition to or instead of any other remedy, the city may seek legal or equitable relief from any court of competent jurisdiction.
(d) Failure of the city to enforce any requirements of a franchise agreement or this chapter shall not constitute a waiver of the city's right to enforce that violation or subsequent violations of the same type or to seek appropriate enforcement remedies.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.230 - Renewal of franchise.¶
(a) Any request to renew a franchise or to initiate a renewal process that is not submitted within the time period set forth in Section 626(a) of the Cable Act, 47 U.S.C. § 546(a), shall be deemed an informal proposal for renewal and shall be governed in accordance with Section 626(h) of the Cable Act, 47 U.S.C. § 546(h). The city may hold one or more public hearings, or implement other procedures under which comments from the public on an informal proposal for renewal may be received. Following such public hearings or other procedures, the City Council shall determine whether the franchise should be renewed and the terms and conditions of any renewal.
(b) In the event a franchisee requests the city in writing to initiate renewal proceedings within the timer period prescribed by Section 626(a) of the Cable Act, 42 U.S.C. § 546(a), the following procedures shall apply:
(1) Upon completion of the review and evaluation process set forth in Section 626(a)(1)(2) of the Cable Act, 47 U.S.C. Section 546(a)(1), the city shall notify the franchisee that it may file a renewal application. The notice shall specify the information to be included in the renewal application and the deadline for filing the application, which shall be no earlier than thirty calendar days following the date of the notice.
(A) The application shall comply with the requirements of Section 3.60.080 of this chapter and provide the specific information requested in the notice, and any other applicable information required in Section 3.60.080(e) of this chapter. If the franchisee does not submit a renewal application by the date specified in the city's notice to the franchisee given pursuant to this subsection, the franchisee will be deemed not to be seeking renewal of its franchise.
(B) Upon receipt of the renewal application, the city shall publish notice of its receipt and make copies available to the public. The city, following reasonable and adequate prior public notice, may hold one or more public hearings on the renewal application.
(2) In the event a public hearing on the renewal application is held, or in the event that the City Council considers the renewal application without a public hearing, the City Council will either:
(A) Pass a resolution agreeing to renew the franchise, subject to the negotiation of a franchise agreement satisfactory to the city and the franchisee; or
(B) Pass a resolution that makes a preliminary assessment that the franchise should not be renewed.
(3) If a preliminary assessment is made that a franchise should not be renewed, at the request of the franchisee or on its own initiative, the city will commence a proceeding in accordance with Section 626(c) of the Cable Act, 47 U.S.C. § 546(c), to address the issues set forth in Section 626(c)(1)(A)—(D) of the Cable Act, 47 U.S.C. § 546(c)(1)(A)—(D).
(c) If the City Council grants a renewal application, the city and the franchisee shall agree on the terms of a franchise agreement, pursuant to the procedures specified in Section 3.60.090(e)—(h) of this chapter, before such renewal becomes effective.
(d) If renewal of a franchise is denied, the city may acquire ownership of the cable system or effect a transfer of ownership of the system to another person upon approval of the City Council. Any such acquisition or transfer shall be at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself.
(e) If renewal of a franchise is denied and the city does not purchase the cable system or approve or effect a transfer of the cable system to another person, the city may require the former franchisee to remove its facilities and equipment at the former franchisee's expense. If the former franchisee fails to do so within a reasonable period of time, the city may have the removal done at the former franchisee's and/or surety's expense.
(Ord. 2216 § 1 (part), 2007; Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.240 - Transfer.¶
(a) No transfer of a franchise shall occur without prior approval of the City Council, which shall not be unreasonably withheld.
(b) An application for a transfer of a franchise shall meet the requirements of Section 3.60.080 of this chapter, and provide complete information on the proposed transaction, including details on the legal, financial, technical and other qualifications of the transferee, and on the potential impact of the transfer on subscriber rates and service. At a minimum, the information required in Section 3.60.080(e)(1)—(5) and (e)(15) of this chapter shall be provided with respect to the proposed transferee. The information required in Section 3.60.080(e)(6)—(14) of this chapter shall also be provided whenever the proposed transferee expects material changes to occur in those areas.
(c) In making a determination on whether to grant an application for a transfer of a franchise, the City Council will consider the legal, financial, technical and other qualifications of the transferee to operate the system; whether the incumbent franchisee is in compliance with its franchise agreement and this chapter and, if not, the proposed transferee's commitment to cure such noncompliance; and whether operation by the transferee would adversely affect cable services to subscribers, or otherwise be contrary to the public interest.
(d) No application for a transfer of a franchise shall be granted unless the transferee agrees in writing that it will abide by and accept all terms of this chapter and the franchise agreement, and that it will assume the obligations and liabilities of the previous franchisee under this chapter and the franchise agreement.
(e) Approval by the city of a transfer of a franchise does not constitute a waiver or release of any of the rights of the city under this chapter or the franchise agreement, whether arising before or after the date of the transfer.
(f) The city may impose a processing fee to cover its costs in excess of the filing fee in considering an application for transfer of franchise.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.250 - Revocation or termination of franchise.¶
(a) A franchise may be revoked or have its term shortened by the City Council for the franchisee's failure to construct, operate or maintain the cable system as required by this chapter or the franchise agreement, or for any other material violation of this chapter or material breach of the franchise agreement. If within thirty calendar days following written notice from the city to the franchisee that it is in material violation of this chapter or in material breach of the franchise agreement, the franchisee has not taken corrective action or corrective action is not being actively and expeditiously pursued, the city may give written notice to the franchisee of its intent to consider revocation of the franchise or reduction in the term of the franchise, stating its reasons.
(b) Prior to revoking a franchise or shortening its term, the City Council shall hold a public hearing, upon at least thirty calendar days' notice, at which time the franchisee and the public shall be given an opportunity to be heard. Following the public hearing the City Council may determine whether to revoke the franchise or reduce its term based on the evidence presented at the hearing, and other evidence of record. If the City Council determines to revoke a franchise or shorten its term, it shall issue a written decision setting forth the reasons for its decision. A copy of such decision shall be transmitted to the franchisee.
(c) Any franchise may, at the option of the city following a public hearing before the City Council, be revoked one hundred twenty calendar days after an assignment for the benefit of creditors or the appointment of a receiver or trustee to take over the business of the franchisee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding, unless within that one hundred twenty day period:
(1) Such assignment, receivership or trusteeship has been vacated; or
(2) Such assignee, receiver or trustee has fully complied with the terms and conditions of this chapter and the franchise agreement and has executed an agreement, approved by a court having jurisdiction, assuming and agreeing to be bound by the terms and conditions of this chapter and the franchise agreement.
(d) In the event of foreclosure or other judicial sale of any of the facilities, equipment or property of a franchisee, the city may revoke the franchise, following a public hearing before the City Council, by serving notice upon the franchisee and the successful bidder at the sale, in which event the franchise and all rights and privileges of the franchise will be revoked and will terminate thirty calendar days after serving such notice, unless:
(1) The city has approved the transfer of the franchise to the successful bidder; and
(2) The successful bidder has covenanted and agreed with the city to assume and be bound by the terms and conditions of the franchise agreement and this chapter.
(e) If the city revokes a franchise, or if for any other reason a franchisee abandons, terminates or fails to operate or maintain service to its subscribers, the following procedures and rights are effective:
(1) The city may require the former franchisee to remove its facilities and equipment at the former franchisee's expense. If the former franchisee fails to do so within a reasonable period of time, the city may have the removal done at the former franchisee's and/or surety's expense.
(2) The city, by resolution of the City Council, may acquire ownership or effect a transfer of the cable system at an equitable price.
(3) If a cable system is abandoned by a franchisee, the city may sell, assign or transfer all or part of the assets of the system.
(f) The city may, upon resolution of the City Council, acquire ownership of and operate a cable system, whether or not such ownership is acquired following revocation or forfeiture of a franchise.
(g) Where the city has issued a franchise specifically conditioned in the franchise agreement upon the completion of construction, system upgrade or other specific obligation by a specified date, failure of the franchisee to complete such construction or upgrade, or to comply with such other specific obligation as required will result in the automatic forfeiture of the franchise without further action by the city where it is so provided in the franchise agreement, unless the city, at its discretion and for good cause demonstrated by the franchisee, grants an extension of time.
(h) No adverse action against a franchisee may be taken by the city pursuant to this section except after a noticed public hearing at which the franchisee is given an opportunity to participate.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.260 - Arbitration.¶
(a) No matter or dispute between the city and the franchisee relating to this chapter or a franchise agreement may be arbitrable unless specifically provided for in the franchise agreement. Any matter that is arbitrable under the specific provisions of a franchise agreement may be subjected to the arbitration procedures set forth in subsection (b) of this section.
(b) The arbitration procedure employed shall be consistent with the rules and procedures of the American Arbitration Association. The city and the franchisee will each select a qualified arbitrator. The two persons selected shall select a third qualified arbitrator, and the three arbitrators will constitute a panel whose decision is binding on the city and the franchisee. The fees of the first two arbitrators shall be paid by the party selecting such person, and the third person shall be compensated one-half by the city and one-half by the franchisee. The general costs of the proceeding shall be shared equally by the city and the franchisee.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.270 - Continuity of service mandatory.¶
(a) It is the right of all subscribers to receive all available services from the franchisee as long as their financial and other obligations to the franchisee are satisfied.
(b) In the event of a termination or transfer of a franchise for whatever reason, the franchisee shall ensure that all subscribers receive continuous, uninterrupted service regardless of the circumstances. The franchisee shall cooperate with the city to operate the system for a temporary period following termination or transfer as necessary to maintain continuity of service to all subscribers. The temporary period will not exceed six months without the franchisee's written consent. During such period the cable system shall be operated under such terms and conditions as the city and the franchisee may agree, or such other terms and conditions that will continue, to the extent possible, the same level of service to subscribers and that will provide reasonable compensation to the cable operator.
(c) In the event a franchisee fails to operate the system for seven consecutive days without prior approval of the city or without just cause, the city may, at its option, operate the system or designate an operator until such time as the franchisee restores service under conditions acceptable to the city or until a permanent operator is selected. If the city is required to fulfill this obligation for the franchisee, the franchisee shall reimburse the city for all costs or damages resulting from the franchisee's failure to perform that are in excess of the revenues from the system received by the city. Additionally, the franchisee will cooperate with the city to allow city employees and/or city agents free access to the franchisees' facilities and premises for purposes of continuing system operation.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.280 - Rates.¶
(a) The city reserves all rights to implement and impose regulation of a franchisee's rates to the maximum extent permitted by law, and may do so by amendment to this chapter, by separate ordinance, by amendment to a franchise agreement, or in any other lawful manner.
(b) Nothing in this chapter shall prohibit the city from regulating rates for cable services to the maximum extent permitted by law.
(c) Regardless whether the city regulates rates or cable services, a franchisee may not change its rates and charges unless it has first given a minimum thirty calendar days' prior written notice of such change to the city and to all subscribers.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.290 - Performance evaluation.¶
The city may conduct periodic performance evaluations of a franchisee as the city determines is necessary but in no event more frequently than annually. A franchisee shall cooperate fully with these evaluations. If the city implements a survey of cable subscribers in connection with a performance evaluation, the city may require a franchisee to distribute the city's questionnaire to its subscribers at the city's expense.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.300 - Administration.¶
(a) The city manager, either directly or through a duly appointed designee, shall have the responsibility for overseeing the day-to-day administration of the chapter and franchise agreements. The city manager shall be empowered to take all administrative actions on behalf of the city, except for those actions specified in this chapter that are reserved to the City Council. The city manager may recommend that the council take certain actions with respect to the franchise. The city manager shall keep the council apprised of developments in cable and provide the council with assistance, advice and recommendations as appropriate.
(b) The City Council shall have the sole authority to regulate rates for cable services, grant franchises, authorize the entering into of franchise agreements, modify franchise agreements, renew franchises, revoke franchises and authorize the transfer of a franchise.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.310 - Applicability.¶
(a) This chapter shall be applicable to all cable franchises issued by the city, whether or not such franchises were issued prior to the effective date of this chapter, to the full extent permitted by state and federal law.
(b) Any cable franchisee whose franchise agreement predates the effective date of this chapter shall notify the city in writing within ninety calendar days of the date of adoption of this chapter, or any subsequent amendment thereof, of:
(1) Any provision which it believes should not be applicable to it by reason of the preexisting franchise agreement or the continuing applicability of the prior ordinance; and
(2) The reason for each such claim of nonapplicability.
(c) Failure to notify the city as provided in subsection (b) of this section shall constitute a waiver of any right to object.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.320 - Municipal cable system ownership authorized.¶
(a) To the full extent permitted by law, the city may construct, own and/or operate a cable system.
(b) Nothing in this chapter shall be construed to limit in any way the ability or authority of the city to construct, own and/or operate a cable system to the full extent permitted by law.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
3.60.330 - Reservation of rights.¶
(a) The city reserves the right to amend this chapter as it shall find necessary in the lawful exercise of its police powers.
(b) Any additional regulations adopted by the city within the lawful exercise of its police power shall be incorporated into this chapter and complied with by all franchisees within thirty days of the date of adoption of such additional regulations. The city shall give all franchisees prompt notice of any such additional regulations.
(c) The city reserves the right to exercise the power of eminent domain to acquire the property of the franchisee's cable system.
(d) The city shall at all times have the right, upon reasonable notice and during normal business hours, to examine and copy a franchisee's records and to inspect a franchisee's facilities to the extent needed to monitor a franchisee's compliance with and performance under this chapter, the franchisee's franchise agreement and applicable state and federal law.
(Ord. 1727 § 1 (part), 1995)
(Ord. No. 2303, § 1, 12-3-2013)
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