A. 
As compensation for any franchise granted pursuant to this chapter, a grantee for a cable system located in the rights-of-way, unless negotiated in a franchise agreement, shall have the following obligations:
(1) 
Application fee for initial franchise. In addition to all other fees, permits or charges required by the grantor, an applicant for an initial franchise shall pay to grantor at the time of application, or amendment to its application, $1,000 as a deposit on the application fee. An applicant will be assessed an additional application fee at the end of the review process should the grantor's actual costs of reviewing the application exceed the deposit. This fee will be equal to 100% of grantor's costs (including administration overhead, legal, consulting, etc.) for administrating the application and granting a franchise. Any unused portion of the deposit shall be returned to the applicant.
(2) 
Franchise fees. Any grantee subject to the terms of this chapter and a franchise agreement shall, in addition to any other fees, permits or charges by grantor, commence making payment of franchise fees on the effective date of a cable services franchise agreement or if such grantee is already providing cable services over the cable system, on the date of the passage of this chapter. Commencing on the specified date, a grantee subject to the terms of this chapter shall pay to grantor an amount equal to 5% of its gross revenues for the provision of cable services as defined in this chapter and generally in the form as illustrated in Exhibit A, attached and made part of this chapter by reference.[1]
[1]
Editor's Note: Said exhibit in on file in the Township offices.
B. 
Payments due the grantor under this provision shall be computed at the end of each calendar year quarter. Payments shall be due and payable for each quarter not later than 45 days from the last day of the three-month period. Specifically, payments shall be due and payable on or before May 15 (for the first quarter), August 15 (for the second quarter), November 15 (for the third quarter), and February 15 (for the fourth quarter). Each payment shall be accompanied by a brief report showing the basis for the computation and such other relevant facts related to the payment of the franchise fee as may be required by the grantor. At request of grantor, and if agreed to by grantee, payments will be made electronically.
C. 
No acceptance of any 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 release of any claim the grantor may have for further or additional sums payable under the provisions of this franchise. All amounts paid shall be subject to audit and recomputation by the grantor.
D. 
In the event any payment is not made on the due date, interest on the amount due shall accrue from such date at the annual rate of 6%.
E. 
If a grantee offers bundled, tied, or combined cable services (which are subject to the franchise fee) with noncable services (which are not subject to the franchise fee) to individual subscribers, the combined revenues from such bundled services shall be allocated consistent with the rates or prices advertised by the grantee through its marketing materials or on its published rate card.
F. 
If the grantee does not advertise or publish separate prices for the combined services, the percentage that the price for the combined services is discounted from the regular retail rates of the individual services shall be prorated across all the services in the bundled package. As an example, a grantee may offer a "bundle" of video, data, and voice services for a flat fee of $75 where the retail rate for the services purchased on an individual basis would equal $100. The grantee would apply a 25% discount to the revenue derived from each service. Thus, if the retail rate for the cable service in the bundle were $50, grantee would recognize cable service revenue in the amount of $37.50 and pay a franchise fee on that revenue.
G. 
In no event shall grantee be permitted to evade or reduce applicable franchise fee payments required to be made to grantor due to discounted bundled services.
A. 
Grantee acknowledges and agrees that the franchise fees payable by grantee to grantor shall not be deemed to be in the nature of a tax, and shall be in addition to any and all taxes of general applicability and other generally applicable fees and charges which grantee may be required to pay to grantor and/or to any other governmental authority, all of which shall be separate and distinct obligations of grantee.
B. 
Grantee shall not deduct all or any part of the franchise fees or other payments or in-kind contributions to be made by grantee to grantor pursuant to this chapter and/or a franchise from the franchise fees paid thereunder unless specifically agreed to in a franchise agreement.
A. 
Except as may be described in a franchise, at the time a franchise is accepted, a grantee shall furnish and file with the grantor a performance bond. The performance bond shall run to the grantor in the sum of as then determined in the franchise agreement. The performance bond shall be conditioned upon the faithful performance of grantee of all terms and conditions of this chapter and a franchise. The rights reserved to the grantor with respect to the performance bond or other security are in addition to all other rights the grantor may have under a franchise or any other applicable law. The company providing such performance bond must be licensed to do business in the Commonwealth of Pennsylvania.
B. 
The rights reserved by the grantor with respect to the performance bond are in addition to all other rights the grantor may have under a franchise or other applicable law.
C. 
The performance bond shall be subject to the approval of the grantor.
A. 
Except as otherwise described in a franchise, at the time a franchise is accepted, and, in lieu of a performance bond as required herein above, a grantee shall deposit into a bank account, established by the grantor, and maintain on deposit through the term of this franchise, the sum of $10,000, unless otherwise provided in a franchise agreement, as a common security fund for the faithful performance by it of all the provisions of this chapter, the franchise and compliance with all orders, permits and directions of the grantor and the payment by a grantee of any claim, liens, costs, expenses and taxes due the grantor which arise by reason of the construction, operation or maintenance of the cable system. Interest on this deposit shall be paid to grantee by the bank on an annual basis.
B. 
Provision shall be made to permit the grantor to withdraw funds from the security fund. Grantee shall not use the security fund for other purposes and shall not assign, pledge or otherwise use this security fund as security for any purpose. The grantor reserves the right to increase the required amount of the security fund to match changes in the consumer price index for all items and all urban consumers.
C. 
If a grantee fails to pay to the grantor any amounts due and unpaid to grantor; or fails to pay to the grantor any liquidated damages, costs or expenses which the grantor shall be compelled to pay by reason of any act or default of a grantee in connection with this chapter and a franchise, the grantor may then withdraw such funds from the security fund. Payments are not franchise fees as required in § 92-66, or as otherwise described in a franchise agreement.
A. 
If the grantor is able to demonstrate that grantee violated any provision of this chapter or franchise agreement, it shall promptly notify grantee in writing of the nature of such violation and the section of this chapter or franchise agreement that it believes has been violated. If the grantor does not notify grantee of any violation of this chapter or franchise agreement, it shall not operate as a waiver of any rights of the grantor hereunder or pursuant to applicable law.
B. 
Grantee shall have 45 days to cure such violation after written notice is received by taking appropriate steps to comply with the terms of this chapter or franchise agreement. If the nature of the violation is such that, in the grantor's reasonable judgment, it cannot be fully cured within 45 days due to circumstances outside of grantee's control, the period of time in which grantee must cure the violation may be extended by the grantor in writing for such additional time necessary to complete the cure, provided that grantee shall have promptly commenced to cure and is diligently pursuing its efforts to cure in the reasonable judgment of the grantor.
C. 
If the violation has not been cured within the time allowed under Subsection B of this section, then grantee shall be liable for liquidated damages in accordance with § 92-71 of this chapter.
A. 
Because grantee's failure to comply with provisions of this chapter or franchise agreement may result in harm to the grantor and because it will be difficult to measure the extent of such harm, the grantor may assess liquidated damages against grantee in the following amounts provided grantee has had an opportunity to cure in accordance with § 92-70B of this chapter. Such damages shall not be a substitute for specific performance by grantee, but shall be in addition to such performance.
B. 
The first day for which liquidated damages may be assessed, if there has been no cure after the end of the applicable cure period, shall be the day after the end of the applicable cure period, including any extension of the cure period granted by the grantor. Liquidated damages may not be assessed for a time period exceeding 120 days, after which the grantor may initiate an action in law or equity in a court of competent jurisdiction.
C. 
The grantor may assess liquidated damages against grantee in the following amounts provided grantee has had an opportunity to cure in accordance with § 92-70B of this chapter:
(1) 
For failure to provide and maintain cable service as required: $200 per day for each day the violation continues;
(2) 
For failure to obtain and maintain permits as required: $200 per day for each day the violation continues;
(3) 
For failure to give notices required in this chapter or franchise to grantor as required: $200 per day for each day the violation continues;
(4) 
For failure to comply with any customer service provisions as required: $200 per day for each day the violation continues;
(5) 
For failure to submit reports in a timely fashion as required: $150 per day for each day the violation continues; and
(6) 
For failure to comply with any material provision of the franchise: $150 per day for each day the violation continues.
A. 
A grantee shall maintain, throughout the term of a franchise agreement and as may be further described therein, liability insurance with a company licensed to do business in the Commonwealth of Pennsylvania with a rating by A.M. Best of not less than "A-minus VII," insuring grantee and the grantor with regard to all damages mentioned in § 92-71A of this chapter, in the minimum amounts of:
(1) 
$1,000,000 for bodily injury or death to any one person;
(2) 
$1,000,000 for bodily injury or death resulting from any one accident; and
(3) 
$2,000,000 for all other types of liability in umbrella form.
B. 
At the time of acceptance of a franchise, and upon request, grantee shall furnish to the grantor a certificate evidencing that a satisfactory insurance policy has been obtained. Said certificate shall be approved by the grantor and such insurance policy shall require that the grantor be notified 30 days prior to any expiration or cancellation.
C. 
All insurance policies maintained pursuant to this section shall contain the following or similar endorsement:
"Should any of the policies described herein be canceled before the expiration date thereof, the insurer affording coverage will endeavor to mail 30 days' written notice to the certificate holder named herein, but failure to mail such notice shall impose no obligation or liability of any kind upon the insurer affording coverage, its agents, or representatives, or the insurer of this certificate."
D. 
A grantee will replace such insurance to conform to this chapter by promptly filing evidence of proof of insurance with grantor before termination of any existing insurance.
In addition to all other rights which the grantor has pursuant to law or equity, the grantor reserves the right to initiate revocation proceedings, and all rights and privileges pertaining thereto, in the event that:
A. 
It is demonstrated that grantee substantially and materially violated any material provision of this franchise or state, federal or local law applicable to grantee's operation of a cable system within grantor.
B. 
It is demonstrated that grantee repeatedly violates, after notice and opportunity to cure, any of the material provisions of the franchise or provision of valid applicable state, federal or local law and refuses to cure it.
C. 
A grantee is found to have practiced any fraud or deceit upon the grantor or subscriber.
D. 
A grantee is found to have knowingly misrepresented a material fact in the application for, negotiation of, renegotiation of, or renewal of the franchise.
In the event that the grantor determines that a grantee has violated any material event as set forth in § 92-73 of this chapter, or any generally applicable material federal, state or local law, the grantor may make a written demand on a grantee that it remedy such violation and that continued violation may be cause for revocation. If the violation, breach, failure, refusal, or neglect is not remedied to the satisfaction of the grantor within 45 days following such demand, the grantor shall determine whether or not such violation, breach, failure, refusal or neglect by grantee is due to acts of God or other causes which result from circumstances beyond grantee's control.
A. 
The grantor may schedule a public hearing and grantee shall be provided with an opportunity to be heard. This opportunity shall include the ability to introduce evidence, to question witnesses and to respond to any notice of grounds to terminate in accordance with the standards of a fair hearing applicable to administrative hearings in the Commonwealth of Pennsylvania. The causes for pending revocation and the reasons alleged to constitute such cause shall be recited in a notice to a grantee prior to the public hearing. Said notice shall affirmatively recite the causes that need to be shown by the grantor to support a revocation. All notice requirements shall be met by providing grantee at least 45 days' prior written notice (via certified mail, return receipt requested) of any public hearing concerning the proposed revocation of a franchise.
B. 
If notice is given and after a public hearing is held, the grantor determines there is a violation, breach, failure, refusal or neglect by a grantee, the grantor shall state in writing the grounds for its decision and give notice to a grantee to correct or remedy the same within such reasonable additional time, in such manner and upon such reasonable terms and conditions as grantor may direct.
C. 
If after a public hearing or hearing by a hearing officer, designated by grantor, it is determined that a grantee's performance of any of the terms, conditions, obligations, or requirements of franchise was prevented or impaired due to any cause beyond its reasonable control or not reasonably foreseeable, such inability to perform shall be deemed to be excused and no penalties or sanctions shall be imposed as a result thereof, provided grantee has notified grantor in writing within 30 days of its receipt of notice of the breach of said cause. Such causes beyond a grantee's reasonable control or not reasonably foreseeable shall include, but shall not be limited to, acts of God, civil emergencies and labor strikes.
D. 
If, after notice is given and opportunity to cure, at a grantee's option, a public hearing is held, the grantor determines there was a violation, breach, failure, refusal or neglect, then the grantor may declare, by formal resolution, a franchise revoked and cancelled and of no further force and effect unless there is compliance within such period as grantor may fix, such period not to be less than 30 days provided no opportunity for compliance need be granted for fraud or misrepresentation.
E. 
The issue of revocation shall automatically be placed upon the agenda of the grantor's governing body at the expiration of the time set by it for compliance. The grantor then may terminate a franchise forthwith upon finding that a grantee has failed to achieve compliance or may further extend the period, in its discretion.
F. 
If the grantor, after notice is given and, at a grantee's option, a full public proceeding is held and appeal is exhausted, declares a franchise breached, the parties may pursue their remedies pursuant to a franchise or any other remedy, legal or equitable.