[Adopted 7-10-2006 by Ord. No. 2006-03]
Except as otherwise provided herein, the definitions
and word usages set forth in the Communications Act are incorporated
herein and shall apply in this agreement. In addition, the following
definitions shall apply:
ACCESS CHANNEL
A video channel which the franchisee shall make available
to the LFA without charge for noncommercial public, educational, or
governmental use for the transmission of video programming as directed
by the LFA.
AFFILIATE
Any person who, directly or indirectly, owns or controls,
is owned or controlled by, or is under common ownership or control
with, the franchisee.
BASIC SERVICE
Any service tier which includes the retransmission of local
television broadcast signals as well as the PEG channels required
by this franchise.
CABLE SERVICE or CABLE SERVICES
Shall be defined herein as it is defined under Section 602
of the Communications Act, 47 U.S.C. § 522(6), which currently
states: "The one-way transmission to subscribers of video programming
or other programming service, and subscriber interaction, if any,
which is required for the selection or use of such video programming
or other programming service."
CABLE SYSTEM or SYSTEM
Shall be defined herein as it is defined under Section 602
of the Communications Act, 47 U.S.C. § 522(7), which currently
states: "A facility, consisting of a set of closed transmission paths
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 a community,
but such term does not include (A) a facility that serves only to
retransmit the television signals of one or more television broadcast
stations; (B) a facility that serves subscribers without using any
public rights-of-way; (C) a facility of a common carrier which is
subject, in whole or in part, to the provisions of Title II of this
Act, except that such facility shall be considered a cable system
[other than for purposes of Section 621(c)] to the extent such facility
is used in the transmission of video programming directly to subscribers,
unless the extent of such use is solely to provide interactive on-demand
services; (D) an open video system that complies with Section 653
of this title; or (E) any facilities of any electric utility used
solely for operating its electric utility systems." The cable system
shall be limited to the optical spectrum wavelength(s), bandwidth,
or future technological capacity that is used for the transmission
of cable services directly to subscribers within the franchise/service
area and shall not include the tangible network facilities of a common
carrier subject in whole or in part to Title II of the Communications
Act or of an information services provider.
CENTRAL CHESTER COUNTY GROUP or CCCG
The municipalities of Caln Township, South Coatesville Borough,
Upper Uwchlan Township, Uwchlan Township, and West Whiteland Township,
which jointly negotiated this agreement by retaining special counsel
to negotiate with the franchisee on their behalf, as well as any additional
municipalities that may join this group after the effective date of
this agreement.
CHANNEL
Shall be defined herein as it is defined under Section 602
of the Communications Act, 47 U.S.C. § 522(4), which currently
states: "A portion of the electromagnetic frequency spectrum which
is used in a cable system and which is capable of delivering a television
channel (as television channel is defined by the FCC by regulation)."
CONTROL
The ability to exercise de facto or de jure control over
day-to-day policies and operations or the management of the franchisee's
affairs.
EXPANDED BASIC SERVICE
The franchisee's service tier on the cable system which includes
basic service and additional channels, including without limitation
twenty-four-hour per-day news channels such as CNN, MSNBC, FOX News
and similar channels.
FCC
The United States Federal Communications Commission or successor
governmental entity thereto.
FORCE MAJEURE
An event or events reasonably beyond the ability of the franchisee
to anticipate and control. This includes, but is not limited to, severe
or unusual weather conditions, strikes, labor disturbances, lockouts,
war or act of war (whether an actual declaration of war is made or
not), insurrection, riots, act of public enemy, actions or inactions
of any government instrumentality or public utility including condemnation,
accidents for which the franchisee is not primarily responsible, fire,
flood, or other acts of God, or work delays caused by waiting for
utility providers to service or monitor utility poles to which the
franchisee's FTTP Network is attached, and unavailability of materials
and/or qualified labor to perform the work necessary.
FRANCHISE AREA
The incorporated area (entire existing territorial limits)
of the LFA and such additional areas as may be included in the corporate
(territorial) limits of the LFA during the term of this franchise.
FRANCHISEE
Verizon Pennsylvania Inc., and its lawful and permitted successors,
assigns and transferees.
GROSS REVENUE
A.
All revenue, as determined in accordance with
generally accepted accounting principles, which is derived by the
franchisee from the operation of the cable system to provide cable
service in the service area. Gross revenue includes but is not limited
to:
(1)
Fees charged for basic service;
(2)
Fees charged to subscribers for any service
tier other than basic service;
(3)
Fees charged for premium channel(s), e.g., HBO,
Cinemax, or Showtime;
(4)
Fees charged to subscribers for any optional,
per-channel, or per-program services;
(5)
Charges for installation, additional outlets,
relocation, disconnection, reconnection, and change-in-service fees
for video or audio programming;
(6)
Fees for downgrading any level of cable service
programming;
(7)
Fees for service calls and similar repair services;
(8)
Fees for leasing of channels;
(9)
Advertising revenue as set forth herein;
(10)
Rental of any converters and remote control
devices;
(12)
Revenue from NSF check charges;
(14)
Revenue from the sale of program guides;
(15)
Revenues or commissions received from the carriage
of home shopping channels subject to Subsection C(5) below;
(16)
Revenue from the sale of subscriber lists; and
(17)
Revenue from the sale of video-on-demand services.
B.
Advertising commissions paid to independent
third parties shall not be deducted from advertising revenue included
in gross revenue. Advertising revenue is based upon the ratio of the
number of subscribers as of the last day of the period for which gross
revenue is being calculated to the number of the franchisee's subscribers
within all areas covered by the particular advertising source as of
the last day of such period, e.g., the franchisee sells two ads: Ad
"A" is broadcast nationwide; Ad "B" is broadcast only within Pennsylvania.
The franchisee has 100 subscribers in LFA, 500 subscribers in Pennsylvania,
and 1,000 subscribers nationwide. Gross revenue as to LFA from Ad
"A" is 10% of the franchisee's revenue therefrom. Gross revenue as
to LFA from Ad "B" is 20% of the franchisee's revenue therefrom.
C.
Gross revenue shall not include:
(1)
Revenues received by any affiliate or other
person in exchange for supplying goods or services used by the franchisee
to provide cable service over the cable system;
(2)
Bad debts written off by the franchisee in the
normal course of its business; provided, however, that bad debt recoveries
shall be included in gross revenue during the period collected;
(3)
Refunds, rebates or discounts made to subscribers
or other third parties;
(4)
Any revenues classified, in whole or in part,
as non-cable services revenue under federal or state law, including,
without limitation, revenue received from telecommunications services;
revenue received from information services, including, without limitation,
Internet access service, electronic mail service, electronic bulletin
board service, or similar online computer services; charges made to
the public for commercial or cable television that is used for two-way
communication; and any other revenues attributed by the franchisee
to non-cable services in accordance with FCC or state public utility
regulatory commission rules, regulations, standards or orders;
(5)
Any revenue of the franchisee or any other person
which is received directly from the sale of merchandise through any
cable service distributed over the cable system, notwithstanding that
portion of such revenue which represents or can be attributed to a
subscriber fee or a payment for the use of the cable system for the
sale of such merchandise, which portion shall be included in gross
revenue;
(6)
The sale of cable services on the cable system
for resale in which the purchaser is required to collect cable franchise
fees from the purchaser's customer;
(7)
Any tax of general applicability imposed upon
the franchisee or upon subscribers by a city, state, federal or any
other governmental entity and required to be collected by the franchisee
and remitted to the taxing entity (including, but not limited to,
sales/use tax, gross receipts tax, excise tax, utility users tax,
public service tax, communication taxes and non-cable franchise fees);
(8)
Any forgone revenue which the franchisee chooses
not to receive in exchange for its provision of free or reduced cost
cable or other communications services to any person, including without
limitation employees of the franchisee and public institutions or
other institutions designated in the franchise; provided, however,
that such forgone revenue which the franchisee chooses not to receive
in exchange for trades, barters, services or other items of value
shall be included in gross revenue;
(9)
Sales of capital assets, but not including sales
of non-capital assets to subscribers related to cable service, or
sales of surplus equipment;
(11)
Directory or Internet advertising revenue, including,
but not limited to, yellow page, white page, banner advertisement
and electronic publishing; and
(12)
Any fees or charges collected from subscribers
or other third parties for any PEG grant.
INFORMATION SERVICES
Shall be defined herein as it is defined under Section 3
of the Communications Act, 47 U.S.C. § 153(20), which currently
states: "The offering of a capability for generating, acquiring, storing,
transforming, processing, retrieving, utilizing or making available
information via telecommunications, and includes electronic publishing,
but does not include any use of any such capability for the management,
control or operation of a telecommunications system or the management
of a telecommunications service."
INTERNET ACCESS
Dial-up or broadband access service that enables subscribers
to access the Internet.
NON-CABLE SERVICES
Any service that does not constitute the provision of video
programming directly to multiple subscribers in the franchise area,
including, but not limited to, information services and telecommunications
services.
NORMAL BUSINESS HOURS
Those hours during which most similar businesses in the community
are open to serve customers. In all cases, "normal business hours"
must include some evening hours at least one night per week and/or
some weekend hours.
NORMAL OPERATING CONDITIONS
Those service conditions which are within the control of
the franchisee. Those conditions which are not within the control
of the franchisee include, but are not limited to, natural disasters,
civil disturbances, power outages, telephone network outages, and
severe or unusual weather conditions. Those conditions that are within
the control of the franchisee include, but are not limited to, special
promotions, pay-per-view events, rate increases, regular peak or seasonal
demand periods, and maintenance or rebuild of the cable system. See
47 CFR § 76.309(c)(4)(ii).
PEG
Public, educational, and governmental.
PERSON
An individual, partnership, association, joint-stock company,
trust, corporation, or governmental entity.
PUBLIC RIGHTS-OF-WAY
The surface and the area across, in, over, along, upon and
below the surface of the public streets, roads, bridges, sidewalks,
lanes, courts, ways, alleys, and boulevards, including public utility
easements and public lands and waterways used as public rights-of-way,
as the same now or may thereafter exist, which are under the jurisdiction
or control of the LFA. Public rights-of-way do not include the airwaves
above a right-of-way with regard to cellular or other nonwire communications
or broadcast services.
SERVICE AREA
All portions of the franchise area where cable service is
being offered, including the initial service area and any additional
service areas.
SERVICE DATE
The date that the franchisee first provides cable service
on a commercial basis directly to multiple subscribers in the franchise
area. The franchisee shall memorialize the service date by notifying
the LFA in writing of the same, which notification shall become a
part of this franchise.
SUBSCRIBER
A person who lawfully receives cable service over the cable
system with the franchisee's express permission.
TELECOMMUNICATIONS FACILITIES
The franchisee's existing telecommunications services and
information services facilities and its FTTP Network facilities.
TELECOMMUNICATION SERVICES
Shall be defined herein as it is defined under Section 3
of the Communications Act, 47 U.S.C. § 153(46), which currently
states: "The offering of telecommunications for a fee directly to
the public, or to such classes of users as to be effectively available
directly to the public, regardless of the facilities used."
TITLE II
Title II of the Communications Act, Common Carriers, as amended,
under which the franchisee has upgraded its network with the FTTP
Network.
TITLE VI
Title VI of the Communications Act, Cable Communications,
as amended, which governs only the provision of cable services by
a franchisee.
TRANSFER OF THE FRANCHISE
A.
Any transaction in which:
(1)
An ownership or other interest in the franchisee
is transferred, directly or indirectly, 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 held by the franchisee under the
franchise are transferred or assigned to another person or group of
persons.
B.
However, notwithstanding Subsections A(1) and
(2) above, a transfer of the franchise shall not include transfer
of an ownership or other interest in the franchisee to the parent
of the franchisee or to another affiliate of the franchisee; transfer
of an interest in the franchise or the rights held by the franchisee
under the franchise to the parent of the franchisee or to another
affiliate of the franchisee; any action which is the result of a merger
of the parent of the franchisee; or any action which is the result
of a merger of another affiliate of the franchisee.
VIDEO PROGRAMMING
Shall be defined herein as it is defined under Section 602
of the Communications Act, 47 U.S.C. § 522(20), which currently
states: "Programming provided by, or generally considered comparable
to programming provided by, a television broadcast station."
Customer service requirements are set forth
in Exhibit C, which shall be binding unless amended by written consent
of the parties.
[Adopted 5-14-2012 by Ord. No. 2012-02]
The municipality hereby authorizes the entering into of a cable
franchise agreement with Comcast to construct, install, maintain,
extend, and operate a cable system, the specific terms of which, agreeable
to both parties, are memorialized in said agreement attached hereto
and incorporated herein by reference.
If any sentence, clause, section or part of this ordinance or
the underlying agreement is, for any reason, found to be unconstitutional,
illegal or invalid, such unconstitutionality, illegality or invalidity
shall not affect or impair any of the remaining provisions, sentences,
clauses, sections or parts hereof. It is hereby declared as the intent
of the Board of Supervisors that this ordinance would have been adopted
had such unconstitutional, illegal or invalid sentence, clause, section
or part thereof not been included herein.
Any prior ordinances or resolutions granting a franchise in
favor of Comcast or its predecessors in interest are hereby repealed
insofar as the same impact this ordinance and the agreement authorized
herein.
This ordinance shall be effective five days following adoption
or as by law provided.