Cross References — Utilities, Title VII.
[Code 1974 §637.010; CC 1984 §7-1]
A.
Title Of Chapter. This Chapter shall be known as the Farmington
Cable Television Regulatory Ordinance.
B.
Purpose. The purpose of this Chapter is to provide for the
regulation and control of any cable television system operating in
the streets, roads and public places of the City.
C.
Grant Of Franchise. Operation of a cable television system
in the City shall be permitted only if the City Council grants a franchise
pursuant to the laws of the State and subject to the provisions and
amendments of this Chapter.
D.
Length Of Franchise. No franchise shall be granted for a
period of more than fifteen (15) years.
E.
Authority Not Exclusive. The right to use and occupy the
streets, roads and public places of the City for the purpose herein
set forth shall not be exclusive, and the City reserves the right
to grant a similar use of its streets, roads and public places to
any person at any time during the period of the franchise issued pursuant
to this Chapter.
[Code 1974 §637.020; CC 1984 §7-2]
As used in this Chapter, the following words and phrases shall
have the meanings respectively ascribed to them:
A system employing antennae, microwave, wires, wave guides,
coaxial cables or other conductors, equipment or facilities designated,
constructed or used for the purpose of:
Collecting and amplifying local and distant television broadcast
signals or radio signals and distributing and transmitting them;
Transmitting original cablecase programming (origination and
access) not received through television broadcast signals;
Transmitting television pictures, film and video-tape programs
not received through broadcast television signals, whether or not
exceeded or processed to permit reception by only selected receivers;
and
Transmitting and receiving all other signals, Class I, II, III
and IV, as defined by the FCC. Any of the service permitted hereunder
to be performed, as described above, shall be performed by a franchise
only as permitted pursuant to this Chapter.
The Federal Communications Commission.
Includes an authorization granted pursuant to the laws of
the State and pursuant to this Chapter in terms of a franchise, privilege,
permit, license or otherwise to construct, operate and maintain a
cable television system within all or a specified area in the City.
Any such authorization in whatever form granted shall not mean and
include any license or permit required for the privilege of transacting
and carrying on a business within the City as required by the ordinances
and laws of this City.
The person granted a franchise by the City Council under
this Chapter and the lawful successor, transferee or assignee thereof.
All property owned, installed or used within the City by
a franchisee, but not including any permit granted by the City in
the conduct of a cable television system business under the authority
of a franchise granted pursuant to this Chapter.
All references to signals, distant, local, radio, television
or kinds such as Class I, II, III and IV shall be defined pursuant
to the definitions given in Section 76.5, Federal Communications Commission
Rules and Regulations 47 CFR 76.5.
Any person receiving for any purpose any service of the franchisee
cable television system including, but not limited to, the conventional
cable television system service of retransmission of television broadcast,
radio signals, franchisee's original cablecasting and the local government,
education and public access channels and other services, such as leasing
of channels, data and facsimile transmission, pay television, and
Police, fire and similar public service communication.
[Code 1974 §637.030; CC 1984 §7-3]
A.
Transfer Or Assignment Prohibited During Construction. No transfer or assignment of a franchise shall be approved or permitted during the period of construction of the system as set forth in Section 630.050(B).
B.
Transfer Or Assignment Without City Council Consent. Any
franchise granted pursuant to provisions of this Chapter shall be
non-transferable without approval of the City Council, and any arrangement
which shall give to any person other than the franchisee the right
to exercise control, either de jure or de facto, any of the rights
and obligations that make up any such franchise shall void the franchise
unless the Council shall approve the arrangement. This provision shall
apply, but not be limited to, control exercised by individuals, partnerships,
trusts or corporations which is transferred or assigned through sale
or is effectuated by merger, consolidation or reorganization; or where
control is transferred through leases or credit arrangements. This
provision is subject to the exception provided for in the Section
of this Chapter governing receivership.
C.
Notice Of Transfer Or Assignment. A franchisee wishing to assign or transfer control of any of the rights and obligations of a franchise granted pursuant to this Chapter shall file with the City Council an application for approval of the change in such form and containing such information and supporting documents that will allow the City Council to assess the proposal pursuant to the standards provided in Subsection (D). All such filings shall be made thirty (30) days in advance of the transfer or assignment. Failure to give notice shall be subject to revocation of the franchise.
D.
Consent Of City Council To Transfer Or Assignment. To approve
an assignment or transfer or any of the rights or obligations that
make up a cable television franchise granted by the City Council,
the Council shall determine at a public hearing, after appropriate
notice thereof, whether the transfer or assignment will affect the
legal, character, financial, technical and other public interest qualities
of the franchise or its successor in performing the obligations of
the franchise. If the Council shall find that any transaction which
will transfer or assign the rights and obligations that make up the
franchise is not in the public interest, the franchise shall be void.
Failure of the Council to disapprove any such transfer within sixty
(60) days shall be deemed to be consent and render unnecessary any
subsequent approval.
E.
Transfer Or Assignment Right Of City To Exercise First Refusal. Following City Council approval, any proposed sale or transfer of
the franchise shall first be extended to the City who shall have the
right of first (1st) refusal upon the same terms, conditions and price
as offered to a proposed transferee. The City shall exercise the right
within thirty (30) days after notice.
[Code 1974 §637.040; CC 1984 §7-4]
A.
Revocation. The City reserves the right to revoke a franchise,
and all rights and privileges pertaining thereto, in the event that:
1.
The franchise becomes insolvent, unable or unwilling to pay its legal
obligations or is adjudged a bankrupt; or
2.
The franchise continues to violate any of the material provisions
of this Chapter or a franchise granted pursuant to this Chapter after
sixty (60) days' notice in writing to correct same or a franchise
is found to practice any fraud or deceit upon the City. Prior to any
revocation proceedings under this Section, the franchisee shall be
given sixty (60) days' notice in writing, which notice shall state
with particularity the grounds upon which the City relies. Thereafter,
upon the written request of the franchisee, the franchisee shall be
entitled to a hearing before the City Council within thirty (30) days
of the date of its request.
B.
Foreclosure. Upon notice of the prospective foreclosure of other judicial sale of all or a substantial part of the system, or upon the termination of any lease covering all or a substantial part of the system, the franchisee shall notify the Mayor of this fact, and any such notification shall be treated as a notification that a change in control of the franchise has taken place, and the provisions of Section 630.030 shall apply.
C.
Receivership. A franchise shall be voidable by the City
one hundred twenty (120) days after appointment of a receiver or trustee.
If the City voids a franchise, the City shall take over and conduct
the business of the franchisee, whether in receivership, reorganization,
bankruptcy or other action or proceeding, unless any such receivership
or trusteeship shall have been vacated prior to the expiration of
the one hundred twenty (120) days, or unless:
1.
Within one hundred twenty (120) days after his/her election or appointment,
the receiver or trustee shall have fully complied with all provisions
of this Chapter and any franchise granted pursuant to this Chapter
and remedied all defaults thereunder; and
2.
The receiver or trustee, within the one hundred twenty (120) days,
shall have executed an agreement, duly approved by the court having
jurisdiction in the matter, whereby the receiver or trustee assumes
and agrees to be bound by each provision of this Chapter.
D.
Expiration. Twelve (12) months preceding the expiration
of the initial term of any franchise granted pursuant to this Chapter,
the City shall have the right, at its election, to:
E.
Renewal Or Extension. A franchise may be renewed or extended
by the City at its discretion for a period not to exceed fifteen (15)
years, upon application of a franchise, in accordance with the then
existing rules of the F.C.C. and applicable law. Renewal considerations
shall include, but not be limited to, the reports prepared throughout
the life of the franchise reviewing the system's technical performance,
the developments of cable services, the cost of all services to the
subscriber, the performance of similar systems in other communities
operating under similar requirements, and the cooperation exhibited
by a franchisee with the City and its residents through a franchise
period.
F.
City Purchase Of System Upon Revocation. At the termination
of the term for which a franchise is granted, or upon its termination
or cancellation, as provided for herein, the City, at its election
and upon the tender of payment as herein provided to the grantee,
shall have the right to purchase and take over the system constructed
and operated by the grantee in its entirety. Upon the exercise of
this option by the City and its service of an official notice of any
such action upon the grantee, together with the payment of the purchase
price as provided herein, the grantee shall immediately transfer to
the City possession and title to all facilities and property, real
and personal, of the business free from any and all liens and encumbrances
which the City does not agree to assume in lieu of some portion of
the purchase price as determined herein; and the grantee shall execute
such warranty deeds or other instruments of conveyance to the City
as shall be necessary for this purpose. The grantee shall make it
a condition of each contract entered into by it with reference to
its operations under this franchise that the contract shall be subject
to the exercise of this option by the City and that the City shall
have the right to succeed to all privileges and obligations thereof
upon the exercise of any such option. The purchase price to be paid
by the City to the grantee upon the exercise of the option as herein
provided shall be determined as the fair market value of the business
and operation of the grantee as determined by three (3) appraisers
chosen, one (1) by the City, one (1) by the grantee, and the remaining
appraiser to be chosen by the two (2) as designated by the City and
grantee. Any such appraisers shall be chosen from experts within the
cable television industry and shall possess the expertise and qualifications
necessary to make these determinations and evaluations in order to
be qualified as an appraiser. Under no circumstances shall any valuation
be made for the value of a franchise.
G.
Continuity Of Service Mandatory. A franchisee shall be required
to provide continuous service to all subscribers in return for payment
of the established fee. In the event a franchisee fails to operate
the system for ten (10) consecutive days, not due to fire, casualty,
riots, strikes, labor trouble, acts of God or other reasons beyond
franchisee's control, without prior approval of the City Council or
its delegated authority, the City or its agent shall have the right
to operate the system until such time that a new operator is selected.
If the City is required to fulfill this obligation for a franchisee,
the franchisee shall reimburse the City for any costs or damages that
result from the franchisee's failure to operate the system as required.
H.
Sale Of System Mandatory. In the event that the City elects
to purchase the system if the franchise is not awarded to a new franchisee
upon expiration of the term of a franchise or the franchise is revoked,
the franchisee shall agree to sell the system to the City or to the
new franchisee, whichever is applicable, on the terms provided for
herein.
I.
Eminent Domain. Nothing herein shall be deemed or construed
to impair or affect, in any way or to any extent, the right of the
City to acquire the property of a franchisee through the exercise
of the right of eminent domain if permitted by law; and nothing herein
contained shall be construed to contract away or to modify or abridge,
either for a term or in perpetuity, the City's right of eminent domain
with respect to any public utility.
[Code 1974 §637.050; CC 1984 §7-5]
A.
Franchise Territory. The franchise shall be limited to the
territorial limits of the City but franchisee may service and connect
to areas outside the City.
B.
Construction Timetable.
1.
Within ninety (90) days after the effective date of granting a franchise
under this Chapter, the franchisee shall file with the F.C.C. his/her
request, petition or other applications as is then proper to secure
any and all necessary permits, licenses, waivers or the like as may
be necessary to be secured from the F.C.C. to fully comply with the
terms of this Chapter. The franchisee shall thereafter diligently
pursue his/her application with the F.C.C. and shall do all reasonable
things necessary and proper to secure any such permit, license, waiver,
approval or the like from it. The franchisee shall keep the City advised
from time to time of the progress of his/her application.
2.
The franchisee shall have the system operational within twelve (12)
months of F.C.C. approval or eighteen (18) months of the City granting
the ordinance.
3.
Construction of the system shall proceed in a non-discriminatory
manner that provides equivalent services to equivalent areas of density.
4.
A franchisee shall provide service to all areas of the City having
ninety (90) potential subscribers per trunk mile where cable is required
to be placed below ground and fifty (50) potential subscribers per
trunk mile where cable may be placed above ground.
C.
Completion Requirements. Failure on the part of a franchisee to commence and diligently pursue each of the foregoing requirements shall be grounds for termination of a franchise under and pursuant to the terms of Section 630.040(A) provided however, that the time shall be extended for additional periods in the events a franchisee acting in good faith, experiences delays by reason of circumstances beyond its control. "Period of construction" shall
mean that time prior to the franchisee having established an operational
system.
[Code 1974 §636.060; CC 1984 §7-6]
A.
Basic Subscriber Service. A franchisee shall provide all
subscribers who request subscriber service with all television and
radio broadcast signals required to be carried pursuant to the rules
of the F.C.C. The applicable F.C.C. requirements governing major market
access channels (47 CFR Section 76.251, 1973) are hereby incorporated
by reference and shall be included as an obligation of any franchise
issued pursuant to this Chapter.
B.
Additional Services. In order that a franchisee shall satisfactorily perform the service requirements of its franchise, the franchisee shall make additional other services required by the F.C.C. on reasonable request from subscribers and programmers who are willing to pay the established rate for any such service. Any such service to educational institutions shall receive priority in the allocation of channels at no charge. With regard to all other services, if no rate has been established when a service has been requested, the procedure in Section 630.090 shall apply. A franchisee shall undertake to apply for any certificate of compliance or waiver necessary to permit the provision of a specific additional service.
C.
Radio Signals. Initially, a franchisee shall provide, as
an additional service, such of the area metropolitan FM radio signals
as are permitted by the F.C.C. In the event reasonable demand exists,
a franchisee shall provide AM signals as permitted by the F.C.C.
D.
Fixed Studio Facilities. A franchisee shall make available
those fixed studio facilities as required by the F.C.C.
E.
Programming. Franchisee shall provide backup signals for
those time periods which are required to be blacked out and will be
expected to originate programming locally and assist local access
in developing programming as required by the F.C.C.
[Code 1974 §636.070; CC 1984 §7-7]
A.
Channel Capacity. The franchisee shall construct a system
that shall have twenty (20) channel capacity. Initial basic service
shall provide a minimum of ten (10) active video channels.
B.
Overhead And Underground Construction. Construction of trunk
feeder and drop cable may be constructed overhead where poles now
exist and either electric or telephone lines are now overhead, but
where no overhead poles now exist, all trunk, feeder and drop cable
shall be constructed in underground system. Whenever and wherever
either electric lines or telephone lines are moved from overhead to
underground placement, all cable of this movement shall be solely
the obligation of the franchisee.
C.
Emergency Requirements. A franchisee shall design and construct
the system to provide for an audio override of all radio channels
during emergencies and for purposes of civil defense. An emergency
power source shall also be provided by a franchisee at the head-end
of the system if required by the F.C.C.
D.
Construction, Supervision And Alteration After Construction.
1.
A franchisee shall construct, operate and maintain the system subject
to the supervision of all of the authorities of the City who have
jurisdiction in such matters and in strict compliance with all laws,
ordinances, departmental rules and regulations affecting the system.
2.
The system, and all parts thereof, shall be subject to the right
of periodic inspection by the City.
3.
No construction, reconstruction or relocation of the system, or any
part thereof, within the streets or easements shall be commenced until
written permits have been obtained from the proper City Officials.
4.
The City Council may, from time to time, use such reasonable rules
and regulations concerning the construction, operation and maintenance
of the system as are consistent with the provisions of this Chapter
and the franchise issued pursuant to this Chapter.
E.
Public Property.
1.
Should the grades or lines of the streets which the franchisee is
hereby authorized to use and occupy be changed at any time during
the term of the franchise granted, the franchisee shall, if necessary
at its own expense, relocate or change its system so as to conform
with any such new grades or lines.
2.
Any alteration to the water mains, sewage or drainage system or to
any City, State or other public structures in the street required
on account of the presence of the system in the streets shall be made
at the sole cost and expense of the franchisee. During any work on
constructing, operating or maintaining of the system, the franchisee
shall also, at its own cost and expense, protect any and all existing
structures belonging to the City. All work performed by the franchisee
pursuant to this Subsection shall be done in a workmanlike manner.
F.
Interference With Public Projects. Nothing in this Chapter
shall be in preference or hinderance to the right of the City or any
board, authority, commission or public benefit corporation to perform
or carry on any public works or public improvements of any description,
and should the system in any way interfere with the construction,
maintenance or repair of any such public works or public improvements,
a franchisee shall, at its own cost and expense, protect or relocate
its system, or part thereof, as reasonably directed by City Officials.
[Code 1974 §637.080; CC 1984 §7-8]
A.
Books And Records. The franchisee shall keep full, true,
accurate and current books of account, which books and records and
all other pertinent books, records, maps, plans, financial statements
and other like materials shall be made available for inspection and
copying by the City upon reasonable notice and during normal business
hours.
B.
Communication With Regulatory Agencies. Copies of all petitions,
applications, communications and reports submitted by a franchisee,
and dealing with the system to the F.C.C. or any other Federal or
State regulatory commission or agency having jurisdiction over matters
affecting cable communications operations authorized pursuant to any
franchise granted pursuant to this Chapter, shall be submitted to
the Mayor on or before the date of filing. Public access to any such
filings shall not be denied.
C.
Reports.
1.
Annual report. Ninety (90) days following the close
of franchisee's fiscal year, it shall submit a written report to the
City, which shall include:
a.
A summary of the previous year's activities in development of this
system including, but not limited to, services begun or dropped, subscribers
gained or lost;
b.
A financial statement including a statement of income and balance
sheet;
c.
A summary of complaints, identifying the number and nature of complaints
and their disposition; and
d.
A list of officers and members of the Board of the franchisee and
any parent corporation.
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If directed by the City Council, the annual report shall be
presented at a public hearing at which the franchisee shall summarize
the contents of the report and members of the general public may comment
thereon.
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2.
Annual plant survey report. A franchisee shall prepare
and submit within ninety (90) days following the close of franchisee's
fiscal year a complete plat of its plant and cables to the City Council.
3.
General report. A franchisee shall prepare and furnish
to the City, as requested, any such reports with respect to its operation,
affairs, transactions or property as may be reasonably necessary or
appropriate to the performance of any of the functions of the City
in connection with this Chapter.
D.
Maintenance And Complaints.
1.
A franchisee shall comply with all technical standards and specifications
as required by the F.C.C.
2.
A franchisee shall render efficient service, make repairs promptly
and interrupt service only for good cause and for a reasonable time.
Any such interruptions, insofar as possible, shall be preceded by
notice and shall occur during periods of minimum use of the system.
3.
A franchisee shall maintain an office in the County, which shall
be open during all usual business hours, have a publicly listed telephone,
and be so operated that complaints and requests for repairs or adjustments
may be received via telephone during regular business hours.
4.
A franchisee shall maintain a repair and troubleshooting force capable
of responding to subscriber complaints or request for services to
the system within twenty-four (24) hours after receipt of the complaint
or request. No direct charge shall be made to the subscriber for this
service.
5.
A franchisee shall ensure that all subscribers, programmers and members
of the general public have recourse to a satisfactory hearing of any
complaint. The City shall work closely with a franchisee and members
of the public to establish procedures for handling and settling complaints.
A franchisee shall present to the City, no later than six (6) months
after the effective date of its franchise, a set of rules, regulations
and procedures concerning the handling and settling of complaints.
E.
Safety.
1.
A franchisee shall at all times comply with the United States Occupational
Safety and Health Act of 1971 and rules and regulations adopted by
the Occupational Safety and Health Administration. A franchisee shall
also comply with all relevant existing City regulations governing
employee safety.
2.
A franchisee shall install and maintain its wires, cables, fixtures
and other equipment in accordance with the requirements of the City
Electrical Code and all rules and regulations appertaining thereto
in such a manner that they will not interfere with any installations
of the City or any public utility.
F.
Receiver Sales And Service Prohibited. A franchisee shall
not engage in the business of selling, servicing, installing or leasing
television or radio receivers without the specific authorization of
the City. The City shall authorize the aforementioned activities only
if there is no other means of providing the service.
[Code 1974 §637.090; CC 1984 §7-9]
A.
Rate Increases And Decreases. Any increase or decrease in
rates that exceeds the cost of living index as prepared by the Federal
Department of Labor or similar index must be submitted to the City
Council sixty (60) days prior to filing of annual financial report
for City Council approval. Any such approval shall be deemed to be
granted if not disapproved within sixty (60) days after submission.
B.
Standard Review Of Rates. The City Council shall review
and approve or disapprove an increase or decrease of rates as provided
for herein on the basis of what is fair to the consumer and fair to
the system operator and shall be limited to the following factors:
faithfulness of the operator in abiding by the terms of the ordinance
and franchise; the quality of the service, efficiency of the operator;
revenues and profits from all services offered; depreciated original
cost of the cable plant and associated equipment; and a fair rate
of return with respect to the cost of borrowing and rates of return
in investments having corresponding risk. The value of the franchise,
good will and the value of the going concern shall not be amortized
as an expense and a return shall not be paid on any of these values.
The City Council shall decide the reasonableness of rate increases
as herein provided and shall have the right to request from a franchisee
any such information as may be necessary to determine whether a rate
increase is reasonable.
C.
Schedule Of Rates. A franchisee shall annually file with
the City Council a full schedule of all rates and all other charges
made in connection with the system. Any special rates for large institutions,
motels, multiple-family dwelling units or any other type of subscriber
shall be included. All rates shall be published and non-discriminatory.
D.
Advance Charges And Deposits. A franchisee may require subscribers
to pay for each month of basic service in advance at the beginning
of each month. No other advance or deposit of any kind shall be required
by a franchisee for basic subscriber service. Nothing in this provision
shall be construed to prohibit charges for or waiver of charges for
initial installation or reconnection. Franchisee may charge a penalty
for delinquent payments.
E.
Disconnection. There shall be no charge for disconnection
of any installation or outlet. If any subscriber fails to pay a properly
due monthly subscriber fee or any other properly due fee or charge,
a franchisee may disconnect the subscriber's service outlet; provided
however, that such disconnection shall not be effected until thirty
(30) days after the due date of the delinquent fee or charge and shall
include ten (10) days' written notice of the intent to disconnect
addressed to the street address in question. If a subscriber pays
thirty (30) days after payment is due and after notice of disconnection
has been given, a franchisee shall not disconnect. After disconnection,
upon payment in full of the delinquent fee or charge and the payment
of a reconnection charge, a franchisee shall promptly reinstate the
subscriber's cable service.
F.
Refunds To Subscribers And Users.
1.
If a franchisee fails to provide any service requested by a subscriber
or user, a franchisee shall, after being afforded a reasonable opportunity
to provide the service, not to exceed six (6) months, promptly refund
all deposits or advance charges paid for the service in question by
the subscriber or user. This provision does not alter a franchisee's
responsibility to subscribers and users under any separate contractual
agreements a franchisee might have with subscribers or users or relieve
a franchisee of liability for fines under this Chapter that may be
assessed by the City or damage that might result to the City or any
subscriber promised.
2.
If any subscriber terminates any monthly service during the first
twelve (12) months thereof because of failure of a franchisee to render
the service in accordance with the standards set forth in this Chapter,
a franchisee shall refund to the subscriber an amount equal to the
installation or reconnection charges paid by the subscriber multiplied
by the fraction of the twelve (12) month period for which the subscriber
will not be receiving service. In the event that the subscriber had
made an advance payment, the amount paid shall be refunded by the
franchisee. This provision does not relieve a franchisee of liability
established in other provisions in this Chapter.
[Code 1974 §637.100; CC 1984 §7-10]
A.
Payment To The City.
1.
As compensation for a franchise granted pursuant to this Chapter
and in consideration of permission to use the streets and public ways
of the City for the construction, operation, maintenance and reconstruction
of a cable system within the City, a franchisee shall pay to the City
an amount equal to three percent (3%) of the franchisee's gross revenues
per year from all cable services in the City. Three (3) years following
the granting of the franchise, this fee may be reviewed on an annual
basis by the City but shall not exceed the base rate approved by the
F.C.C. without justification. Any such rate may be passed onto subscribers
by the franchise holder.
2.
In addition to the above compensation, franchisee shall pay to the
City for each pole owned by the City and used in the system each year
the sum of five dollars ($5.00) per pole per year.
3.
Payments due the City under Subsection (A)(1) shall be computed quarterly, for the preceding quarter, as of March thirty-first (31st), June thirtieth (30th), September thirtieth (30th) and July thirty-first (31st) and pole charges annually following the close of franchisee's fiscal year. Each quarterly payment shall be due and payable no later than thirty (30) days after the relevant computation date. Each payment shall be accompanied by a brief report showing the basis for the computation and such other relevant facts as may be necessary for the City to compute the accuracy of the payment.
4.
No acceptance of any payment shall be construed as an accord that
the amount paid is, in fact, the correct amount, nor shall any such
acceptance of payment be construed as a release of any claim the City
may have for further or additional sums payable under the provisions
of this Chapter. All amounts paid shall be subject to audit and recomputation
by the City. In the event that recomputation results in additional
revenue to be paid to the City, such amount shall be subject to a
ten percent (10%) interest charge.
5.
Nothing in this Section shall limit a franchisee's liability to pay
other local taxes.
6.
A franchisee shall pay all necessary expenses incurred by the City
in connection with the processing of a certificate of compliance with
the F.C.C. by the franchisee.
B.
Damages And Defense.
1.
The franchisee shall pay all damages and penalties which the City
may legally be required to pay as a direct or indirect result of the
exercise of any franchise granted pursuant to this Chapter.
2.
A franchisee shall pay all expenses incurred by the City in defending itself with regard to all damages and penalties mentioned in Subsection (B)(1) above. These expenses shall include all out-of-pocket expenses, such as attorney fees, and shall also include the reasonable value of any services rendered by the City Counselor's office, or any employees of the City.
C.
Liability And Indemnification.
1.
A franchisee shall maintain, and by its acceptance of a franchise specifically agree to maintain throughout the term of its franchise, liability insurance insuring the City and itself with regard to all damage mentioned in Subsection (B) above in the minimum amounts of:
a.
Three hundred thousand dollars ($300,000.00) for bodily injury or
death to any one (1) person or five hundred thousand dollars ($500,000.00)
for bodily injury or death resulting from any one (1) accident to
any number of persons; and
b.
One hundred thousand dollars ($100,000.00) for property damage resulting
from any one (1) accident.
2.
A franchisee shall maintain, throughout the term of its franchise, a faithful performance bond running to the City, executed by a surety company authorized to do business as surety in the State, in the penal sum of one hundred thousand dollars ($100,000.00) conditioned upon a franchisee's performance of each term and condition of its franchise and each term and condition of this Chapter and that in case of any breach of condition of the bond, the amount thereof shall be recoverable from the principal and sureties thereof by the City for all damages proximately resulting from the failure of a franchisee to well and faithfully observe and perform any provision of this Chapter and its franchise. The cost of the bond to the franchisee shall be deducted from the gross receipts tax provided for in Subsection (A)(1).
3.
Upon the effective date of a franchise, a franchisee shall furnish
proof to the City that a satisfactory insurance policy has been obtained.
The insurance policy shall be approved by the City Counselor, and
the insurance policy, along with written evidence of payment of required
premiums, shall be filed and maintained with the Mayor.
D.
Security Fund.
1.
Within thirty (30) days after the effective date of a franchise, a franchisee shall deposit with the City Treasurer, who shall deposit the money in an interest-bearing escrow account to which only the City Treasurer has access and maintain on deposit through the term of its franchise, the sum of two thousand five hundred dollars ($2,500.00) in cash, which will be in addition to the performance bond provided for in Subsection (C) above and service as security for the faithful performance by it of all the provisions of this Chapter. The franchisee shall be entitled to accrued interest.
2.
Within thirty (30) days after notice to a franchisee that any amount has been withdrawn from the security fund deposited pursuant to Subsection (D)(1), a franchisee shall pay to or deposit with the City Treasurer a sum of money sufficient to restore the security to the original amount of two thousand five hundred dollars ($2,500.00).
3.
If a franchisee fails to pay the City any compensation within the
fixed time herein, or fails after thirty (30) days' notice to pay
to the City taxes due and unpaid, or fails to repay to the City within
thirty (30) days any damages, costs or expenses which the City shall
be compelled to pay by reason of any act or default of a franchisee
in connection with this Chapter, or fails after three (3) days' notice
by the Mayor of failure to comply with any provision of this franchise
which the Mayor reasonably determines can be remedied by an expenditure
of the security, the City Clerk immediately may withdraw the amount
thereof, with interest and penalties, from the security fund. Upon
withdrawal, the City Clerk shall notify the franchisee of the amount
and date thereof. The cash deposit shall be retained by the City and
returned to a franchisee at the expiration of its franchise, provided
there is then no outstanding default on the part of the franchisee.
4.
The rights reserved to the City with respect to the security fund
are in addition to all other rights of the City, whether reserved
by this Chapter or authorized by law, and no action, proceeding or
exercise of a right with respect to any such security shall affect
any other right the City may have.
[Code 1974 §637.120; CC 1984 §7-12]
A.
Discriminatory Employment Practices Prohibited. A franchisee
shall not deny service, deny access or otherwise discriminate against
subscribers, channel users or general citizens on the basis of race,
color, religion, national origin, ancestry, sex or handicap. A franchisee
shall strictly adhere to the equal employment opportunity requirements
of the F.C.C. as expressed in Sections 76.13(a) and 76.311 of Chapter
1 of Title 47 of the Code of General Regulations. A franchisee shall
comply at all times with all other applicable Federal, State, County
and City laws and all executive and administrative orders relating
to non-discrimination.
B.
Cable Tapping Prohibited. Neither a franchisee nor the City
shall tap, or arrange for the tapping or permit any other person to
tap either expressly or impliedly through their knowledge, any cable,
line, signal input device or subscriber outlet or receiver for any
purpose whatsoever.
C.
Sale Of Subscriber Lists Prohibited. A franchisee shall
not sell, or otherwise make available, lists of the names and address
of its subscribers or any list which identifies by name subscriber
viewing habits to any person, agency or entity for any purpose whatsoever
without the specific authorization of the City, expressed by resolution,
except upon request of potential lease channel users. Upon this event,
the list may be used only to the extent necessary to make full use
of the leased channel.
[Code 1974 §637.130; CC 1984 §7-13]
A.
Compliance With Laws. The franchisee shall comply with all
Federal and State laws, as well as the provisions of this Code and
other City ordinances and resolutions heretofore or hereafter adopted
or established during the entire term of its franchise, and consistent
with.
B.
No Recourse Against The City. A franchisee shall have no
recourse whatsoever against the City or its officials, boards, commissions,
agents or employees for any loss, costs, expenses or damages arising
out of any provision or requirement of this Chapter or any franchise
granted pursuant hereto or because of the enforcement of this Chapter
or any franchise granted pursuant hereto.
C.
Non-Enforcement By City. Franchisee shall not be relieved
of its obligation to comply with any of the provisions of this Chapter
by reason of failure of the City to enforce prompt compliance. Nor
shall any inaction by the City be deemed to waive a provision of this
Chapter.
D.
Day-To-Day Enforcement. The day-to-day enforcement of the
provisions of this Chapter shall be the responsibility of the City
Administrator.
E.
Additional Regulations. The City reserves the right to adopt,
in addition to the provisions contained in this Chapter, any such
additional regulations as it shall find necessary in the exercise
of its Police power; provided however, that any such regulations are
reasonable and not materially in conflict with the privileges granted
in this Chapter.
F.
Subsequent Action By State Or Federal Agencies. Should the
State, the F.C.C. or any other agency of government subsequently require
the franchisee to deliver any signals in addition to those required
by this Chapter, or to perform or cease to perform any act which is
inconsistent with any provision of this Chapter, the franchisee shall
so notify the City.
G.
Delegation Of Functions. Any function or responsibility
granted to the Mayor or the City Council pursuant to this Chapter
may be delegated by the City Council to a board, commission or officer
designated by the Mayor with a right of appeal to the City Council.
[Code 1974 §637.140; CC 1984 §7-14]
A.
The
franchisee shall comply with the rules and standards for cable television
operations, as adopted by the F.C.C., and as may be amended thereafter.
B.
The
cable system shall be capable of delivering all National Television
Systems Committee (NTSC) color and monochrome standard signals, developed
and presented to the F.C.C. on July 21, 1953, to standard Electronic
Industries Association approved television receivers without noticeable
degradation.
C.
The
system shall be capable of delivering all signals meeting the FM transmission
standards of the F.C.C. to Electronic Industries Association stereophonic
or monaural FM receivers.
[Code 1974 §637.150; CC 1984 §7-15]
A.
All
financial reports prepared for the City by a franchisee shall be prepared
by a certified public accountant and all records maintained by the
franchisee shall conform to generally accepted accounting principles
applied on a consistent and fair basis.
B.
Financial
reports and records shall be applied on a consistent basis for the
purpose of payment of franchise fees to the City, making rates and
determining depreciated system value pursuant to sale or transfer
of the system.
