No person shall own or operate a cable system in the Township, except by franchise granted by the Township, in the form of a franchise agreement between the Township and the franchisee, which shall comply with all the specifications of this chapter.[1]
[1]
Editor's Note: Ordinance No. 1040, adopted 1-12-2011, granting a renewal of the franchise with Comcast, along with the franchise agreement, is on file and available for inspection in the Township office.
A. 
In granting an initial franchise pursuant to this chapter, the Township shall prepare a request for proposals to seek bids for a cable system to be established under franchise by the Township. This request for proposals will contain information and instructions relating to the preparation and filing of proposals, conditions regarding the installation, operation and maintenance of a cable system under Township franchise and the criteria to be used in evaluating applicant proposals.
B. 
Applicants for an initial franchise may be evaluated according to the following criteria, among others:
(1) 
Installation plan. Consideration may be given to an installation plan that would provide flexibility needed to adjust to new developments, maintenance practices and services that would be available to the subscriber and the community immediately and in the future.
(2) 
Rate schedule. Consideration may be given to applicants with the most reasonable installation and subscriber rate schedule.
(3) 
Financial soundness and capability. The evidence of financial ability required in the applicant's proposal shall be such as to assure ability to complete the entire system within a maximum of three years from the date the franchise is granted. The Township will also consider the applicant's ability to operate the system and provide the necessary services.
(4) 
Demonstrated experience in operating a cable system under Township franchise. Consideration may be given to evidence of the applicant's experience in operating a cable system under municipal franchise, where such evidence would show or tend to show or confirm the ability of the applicant to furnish sufficient and dependable service to the potential public and private users.
(5) 
Technical capability. The Township may consider the quality of service offered, including signal quality, response to consumer complaints and billing practices, without regard to the mix, quality or level of cable services or other services provided over the system.
(6) 
Future needs. Consideration may be given to the franchisee's ability to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests.
(7) 
Additional considerations. The Township may consider any additional information that it deems applicable.
C. 
Initial application fee. A reasonable nonrefundable application fee established by the Township in its request for proposals shall accompany the application for a franchise within the Township. Such application fee shall not be deemed to be "franchise fees" within the meaning of § 622 of the Cable Act (47 U.S.C. § 542), and such payments shall not be deemed to be "payments in kind" or any involuntary payments chargeable against the compensation to be paid by the franchisee to the Township. The application fee shall be limited to an amount necessary to reimburse the Township for incidental costs incurred in connection with processing and publicizing the franchise requests, but in no event shall such fee be less than $500.
A. 
During the term of any franchise granted pursuant to this chapter, the franchisee shall pay to the Township for the use of its streets, public places and other facilities, not including poles or underground conduits, as well as the maintenance, improvements and supervision for administrative costs thereof, an annual franchise fee in an amount equal to 5% of its annual gross revenues, as defined herein. This payment shall be in addition to any other tax or payment owed to the Township by the franchisee and does not include rental of poles or underground conduits.
B. 
Sales tax or other taxes levied directly on a per subscription basis and collected by franchisee shall be deducted from the gross revenues before computation of sums due the Township is made. Payments due the Township under the terms of this chapter shall be computed semiannually as of December 31 and June 30 for the preceding six-month period and shall be paid on or before the 60th calendar day from each said computation date at the office of the Township Manger. The Township shall be furnished a statement with each payment, certified as correct by the franchisee, reflecting the total amount of gross revenues and the above charges, deductions and computations for the six-month payment period covered by the payment. With the payment each year for the semiannual period ending on December 31, a statement prepared by the appropriate company representative shall be submitted certifying that the statements filed and payments made by the franchisee for the preceding year were correct. Upon reasonable, but in no event less than 15 days, prior written notice, the Township shall have the right to conduct an independent audit of franchisee's records, in accordance with generally accepted accounting principles and if such audit indicates a franchise fee underpayment of 5% or more, the franchisee shall assume all reasonable costs of such an audit. Any additional amount due to the Township as a result of such audit shall be paid within 30 days following written notice by the Township to the franchisee, which notice shall include a copy of the audit report.
C. 
No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the Township may have for further or additional sums payable as a franchise fee under this chapter or for the performance of any other obligation hereunder.
D. 
Failure to pay any undisputed fee required by this section, within 10 days of receipt of written notice of such failure from the Township, shall be grounds for termination of the franchise as set out in § 111-6 below.
A. 
No franchise granted hereunder, nor any renewal thereof, shall be for a term of more than 15 years.
B. 
In addition to all other rights and powers of the Township by virtue of the franchise or by this chapter, the Township may terminate and cancel the franchise and all rights and privileges of the franchise thereunder in the event that the franchisee either:
(1) 
Substantially violates any material provision of the franchise agreement or this chapter.
(2) 
Attempts to dispose of any of the facilities or property of its cable system to prevent the Township from purchasing same, as provided for herein.
(3) 
Attempts to evade any of the material provisions of this chapter or the franchise agreement or practices any fraud or deceit upon the Township.
C. 
In such event, the Township may initiate procedures to terminate and cancel the franchise held by the franchisee. Such procedures shall be as set out in § 111-47.
D. 
Any such termination and cancellation shall be made by resolution of the Township Board of Supervisors duly adopted after not less than 30 days' notice to the franchisee and shall in no way affect any of the Township's rights under this franchisee or any provisions of law; provided, however, that before the franchise may be terminated and canceled under this section, the franchisee shall be provided with an opportunity to be heard at a public hearing before the Township Board of Supervisors, upon 20 days' written notice to the franchisee of the time and place of the public hearing. Said notice shall affirmatively cite the reasons alleged to constitute cause for revocation and shall be published in a local newspaper of general circulation at least 15 days before the date of the hearing.