[Ord. No. 2453 §3, 12-15-1980]
A. The
franchise granted by the City pursuant to this Chapter shall grant
the right and privilege to construct, erect, operate and maintain,
in, upon, along, across, above, over and under streets, alleys, public
ways and public places now laid out or dedicated and all extensions
thereof, and additions thereto, in the City, poles, wires, cables,
underground conduits, manholes and other television conductors and
fixtures necessary for the maintenance and operation in the City of
a cable TV system for the interception, sale and distribution of television
and radio signals.
B. The
right to occupy said streets, alleys, public ways and public places
for the purposes herein set forth shall not be exclusive and the City
reserves the right to grant a similar use of said streets, alleys,
public ways and public places, to any person at any time during the
period of this franchise.
[Ord. No. 2453 §4, 12-15-1980]
The franchise and the rights, privileges, obligations and authority
granted thereunder takes effect and shall be in force as provided
herein within thirty (30) days from and after final passage and shall
continue in full force and effect for a term of fifteen (15) years.
As a condition precedent to the issuance of the franchise, the grantee
shall file its unconditional acceptance of the franchise, which shall
have this Chapter, as amended, incorporated therein by reference,
and promise to comply with all its provisions, terms and conditions.
[Ord. No. 2453 §5, 12-15-1980]
A. This franchise may be renewed by the City upon application of the grantee pursuant to the procedure established in Subsection
(B) of this Section, and in accordance with the then applicable law.
B. Procedures:
1. At least thirteen (13) months prior to the expiration of the franchise,
grantee shall inform the City in writing of its intent to seek renewal
of the franchise.
2. After giving public notice, the City shall proceed to determine whether
the grantee has satisfactorily performed its obligations under the
franchise. To determine satisfactory performance, the City shall consider
technical developments and performance of the system, programming,
other services offered, cost of services, and any other particular
requirements set in the Chapter; also, the City shall consider the
grantee's annual reports made to the City and the FCC; industry performance
on a national basis shall also be considered. Provision shall be made
for public comment.
3. A four (4) month period shall be provided to determine the grantee's
eligibility for renewal.
4. The City shall then prepare within two (2) months any amendments
to this Chapter that it believes necessary.
5. If the City finds the grantee's performance satisfactory, a new franchise may be granted pursuant to the Chapter as amended for an additional period of ten (10) years. Subsequent renewal for ten (10) year periods may be applied for by grantee in accordance with procedure outlined in Section
645.050.
6. In the event the grantee is determined by the City to have performed
unsatisfactorily, new applicants may be sought and evaluated and a
franchise award may be made by the City.
[Ord. No. 2453 §6, 12-15-1980]
A. Transfer Of Franchise. Any franchise granted hereunder shall
be a privilege to be held for the benefit of the public. Said franchise
cannot in any event be sold, transferred, leased, assigned, or disposed
of, including but not limited to, by forced or voluntary sale, merger,
consolidation, receivership, or other means without the prior consent
of the City, and then only such conditions as the City may establish.
Such consent as required by the City shall, however, not be unreasonably
withheld.
B. Ownership Or Control. The grantee shall promptly notify
the City of any actual or proposed change in, or transfer of, or acquisition
by any other party of, control of the grantee. The word "control" as used herein is not limited to major stockholders but includes
actual working control in whatever manner exercised. A rebuttable
presumption that a transfer of control has occurred shall arise upon
the acquisition or accumulation by any person or group of persons
of ten percent (10%) of the voting shares of the grantee. Every change,
transfer, or acquisition of control of the grantee shall make the
franchise subject to cancellation unless and until the City shall
have consented thereto, which consent will not be unreasonably withheld.
For the purpose of determining whether it shall consent to such change,
transfer, or acquisition of control, the City may inquire into the
qualification of the prospective controlling party, and the grantee
shall assist the City in any such inquiry.
C. The
City agrees that any financial institution having a pledge of the
franchise or its assets for the advancement of money for the construction
and/or operation of the franchise shall have the right to notify the
City that it or its designee satisfactory to the City will take control
and operate the cable television system. Further, said financial institution
shall also submit a plan for such operation that will insure continued
service and compliance with all franchise obligations during the term
the financial institution exercises control over the system. The financial
institution shall not exercise control over the system for a period
exceeding one (1) year unless extended by the Council in its discretion
and during said period of time it shall have the right to petition
the City to transfer franchise to another grantee. If the City finds
that such transfer after considering the legal, financial, character,
technical and other public interest qualities of the applicant are
satisfactory, the City will transfer and assign the rights and obligations
of such franchise as in the public interest. The consent of the City
to such transfer shall not be unreasonably withheld.
D. The
City reserves the right, all other things being equal, in the event
of a request for approval of the transfer of the ownership of the
franchise by the grantee, to grant preference to any local not-for-profit
organization who demonstrates a willingness and capability to meet
the terms and amount of the bona fide offer made to the grantee for
purchase of the franchise and system. In no event, however, shall
the City delay ruling on any request for approval of the transfer
of the ownership of the franchise by the grantee for more than one
hundred eighty (180) days from receipt of said request by the City.
E. The
consent or approval of the City to any transfer of the grantee shall
not constitute a waiver or release of the rights of the City in and
to the streets, and any transfer shall by its terms, be expressly
subordinate to the terms and conditions of this franchise.
F. In
the absence of extraordinary circumstances, the City will not approve
any transfer or assignment of the franchise prior to substantial completion
of construction of the proposed system.
G. In
no event shall a transfer of ownership or control be approved without
successor in interest becoming a signatory to this franchise agreement.
[Ord. No. 2453 §7, 12-15-1980]
Upon termination of the franchise at the expiration date applicable
under the provisions of this Chapter, the grantee may be required
to remove the cable system from all subscribers properties at no expense
to the City.
[Ord. No. 2453 §8, 12-15-1980]
A. Upon expiration of the franchise under provisions set forth in Section
645.480 of the Chapter, the City shall have the right to purchase the cable television system. In order to determine the purchase price of the system, the City shall choose a recognized appraiser of cable television systems, using the following formula:
1. Replacement costs, new, or the physical property less depreciation.
2. Costs of the appraisal shall be deducted from the price to be paid
by the City.
3. The City shall purchase only those assets suitable for delivery of
basic services which are in a high state of repair. However, if the
City purchases any assets in less than a high state of repair, the
price shall be less depreciation and less the cost of restoring the
assets to a high state of repair.
4. No allowance shall be made for good will, value of the franchise
or prospective profits in determining the system's value for purchase
upon termination of the franchise.