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]
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.