[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
A.
A franchise will be granted to a corporation organized under the
laws of the State of Pennsylvania and qualified to do business in
the State of Pennsylvania, pursuant to the provisions of this chapter.
C.
Upon acceptance of a franchise, franchisee shall be bound by all
terms and conditions contained in this chapter.
D.
A franchise is granted for the territorial boundary of the Borough.
A.
The franchise authorizes use of Borough streets for installing cables,
wires, lines, optical fiber, underground conduit, and other facilities
to operate a cable system within the franchise area, but does not
expressly or implicitly authorize the franchisee to provide service
to, or install cables, wires, lines, underground conduit, or any other
equipment or facilities on private property without owner consent
[except for use of compatible easements pursuant to Section 621 of
the Cable Act, 47 U.S.C. § 541(a)(2)], or to use publicly
or privately owned conduits without a separate agreement with the
owners; nor does the franchise authorize the franchisee to provide
service(s) of any nature outside of the scope of cable service as
defined in this chapter.
B.
The franchise is nonexclusive and will not explicitly or implicitly
preclude the issuance of other franchises to operate cable systems
within the Borough, or affect the Borough's right to authorize
use of Borough streets by other persons to operate cable systems or
for other purposes as it determines appropriate.
C.
Once the franchise has been accepted by the franchisee, the terms,
conditions, and provisions of this chapter, subject to all other duly
enacted and applicable laws, shall define the rights and obligations
of the franchisee and the Borough relating to the franchise.
D.
All privileges prescribed by the franchise shall be subordinate to
any prior lawful occupancy of the streets, and the Borough reserves
the right to reasonably designate where the franchisee's facilities
are to be placed within the streets.
A.
The franchisee shall at all times be subject to all lawful exercise
of the police power of the Borough, and to such reasonable regulations
as the Borough may hereafter provide by ordinance or resolution, including,
without limitation, all rights the Borough may have under 47 U.S.C.
§ 552. The franchisee shall at all times be subject to and
shall comply with all federal, state and Borough laws, as the same
may be amended from time to time.
B.
No course of dealing between franchisee and the Borough, nor any
delay on the part of the Borough or franchisee in exercising any rights
hereunder, shall operate as a waiver of any such rights of the Borough
or franchisee or acquiescence in the actions of the Borough or franchisee
in contravention of rights except to the extent expressly waived by
the Borough or franchisee or expressly provided for hereunder.
C.
The Borough shall have the maximum plenary authority to regulate
cable systems, franchisees, and franchises as may now or hereafter
be lawfully permissible; except where rights are expressly waived,
they are reserved, whether expressly enumerated or not.
A.
The provisions of this chapter will be liberally construed in favor
of the Borough or franchisee in order to effectuate the purposes and
objectives of this chapter and to promote the public interest.
B.
Except as to matters that are governed by federal law or regulation,
the franchise hereunder will be governed by and construed in accordance
with the laws of the State of Pennsylvania.
Nothing in this chapter shall limit any right the Borough may
have to acquire by eminent domain or otherwise any property of franchisee.
A.
Franchisee shall maintain the technological sophistication of the cable system operated pursuant to the franchise granted hereunder at a level consistent with technical standards in the cable industry prevailing from time to time or as federally mandated. The standards will be such that the cable system can reasonably accommodate the cable-related needs of the community. The Borough has established need ascertainment procedures in § 151-22D.
B.
Franchisee shall, upon completion of any cable system upgrade, submit
to the Borough, in written and computer form, "as-built" maps for
the entire cable system, as upgraded, to the extent that such maps
have not been previously provided to the Borough.
C.
Franchisee shall design the cable system in accordance with prevailing
FCC guidelines and/or regulations.
D.
At such times as required by FCC rules, the franchisee shall perform
at its expense proof of performance tests, designed to demonstrate
compliance with this chapter and FCC requirements. The franchisee
shall provide the proof of performance test results promptly to the
Borough. Franchisee shall provide the Borough 10 days' advance
written notice when a proof of performance or other required test
is scheduled so that the Borough may have an observer present. The
Borough shall have the right to inspect the cable system facilities
during and after their construction to ensure compliance with this
chapter and applicable provisions of local, state and federal law,
and may require that the franchisee perform additional tests based
upon its prior investigation of system performance or upon subscriber
complaints.
A.
Emergency alert system. franchisee shall install and thereafter maintain
for use by the Borough an Emergency Alert System (EAS). This EAS shall
be remotely activated by telephone and shall allow a representative
of the Borough to override the audio on all channels on the system
in the event of a civil emergency or for reasonable tests. The Borough
will provide reasonable notice to franchisee prior to any test use
of the EAS. The franchisee will issue guidelines, policies and operating
procedures for use of the EAS.
B.
Emergency use. Upon request of the Borough, franchisee shall, at
its sole reasonable expense, make available additional systems and
related facilities to the Borough for emergency use during any emergency
or disaster.
C.
Free Borough connections. The franchisee shall furnish, free of charge,
one service distribution connection to each school, fire station,
Borough police and hall and public library on its pole plant route
and located within the Borough.
A.
System construction schedule. The franchisee shall specify the construction
schedule.
B.
Construction standards.
(1)
The franchise is granted pursuant to, and subject to franchisee's
compliance with, all applicable federal, state and Borough regulations.
No Borough regulations are waived or amended hereby, except for Ordinance
No. 80-2.
(2)
All construction work involving disturbance of Borough streets or other public or private property shall be completed promptly and shall be complete in accordance with the provisions of § 151-27 only upon restoration at franchisee's expense of the disturbed area(s) to a condition equalling or exceeding the preconstruction condition, to the satisfaction of the Borough or private property owner, and approved by the Borough Engineer.
(3)
Prior to erection of any towers, poles, or conduits or the construction,
upgrade, or rebuild of a cable communications system authorized under
this chapter, the franchisee shall first submit to the Borough and
other designated parties in accordance with applicable municipal ordinances,
for approval a concise description of the facilities proposed to be
erected or installed, including engineering drawings, if required,
together with a map and plans indicating the proposed location of
all such facilities. No erection or installation of any tower, pole,
underground conduit, or fixture or any rebuilds or upgrading of the
cable communications system shall be commenced by any person until
such approval therefor has been received from the Borough.
(4)
All safety practices required by law shall be used during construction,
maintenance, and repair of a cable system. A franchisee shall not
place facilities, equipment, or fixtures where they will interfere
with any gas, electric, telephone, water, sewer, or other utility
facilities, or obstruct or hinder in any manner the various utilities
serving the residents of the Borough or their use of any street or
any other public right-of-way.
(5)
Any contractor proposed for work or construction, installation, operation,
maintenance, or repair of system equipment must be properly licensed
under laws of the state and all applicable local ordinances.
(6)
All poles, lines, structures and other facilities of franchisee in,
over and under the streets, sidewalks, alleys, easements and other
public grounds or places within the Borough shall be kept by the franchisee
at all times in a safe and substantial condition.
(7)
A franchisee shall, on the request of any person holding a building
moving permit issued by the Borough, temporarily raise or lower its
wires to permit the moving of buildings. The expense of such temporary
removal or raising or lowering of wires shall be paid by the person
requesting same, and the franchisee shall have the authority to require
such payment in advance, except in the case where the requesting person
is the Borough, in which case no such payment shall be required. The
franchisee shall be given not less than five calendar days' advance
notice to arrange for such temporary wire changes.
C.
Location of system facilities.
(1)
A franchisee shall use, with the owner's permission, existing
underground conduits or overhead utility facilities whenever feasible
and may not erect poles in public rights-of-way without the express
permission of the Borough. Copies of agreements for use of conduits
or other facilities shall be filed with the Borough request.
(2)
Attachment to Borough poles, towers or other electrical facilities.
(a)
Franchisee shall have the right, authority, power and privilege
to attach any system facilities to any existing or future poles, towers,
or other electrical facilities owned by the Borough in a manner which
will not interfere with the use of such poles, towers and other electrical
facilities by the Borough.
(b)
Franchisee agrees to pay to the Borough that fee per year per
pole owned by the Borough and used by franchisee arrived at by negotiation
and contract with PECO Energy Co. and/or Bell Atlantic for the use
of their poles; or, if the two fees are dissimilar, the higher of
the two; or, if no satisfactory agreement is reached with either utility,
then said fee shall be $1.50 per pole per year.
(3)
The Borough shall have the right to install and maintain free of
charge upon the poles owned by the franchisee any wire and pole fixtures
that do not unreasonably interfere with the cable system operations
of the franchisee. The Borough shall hold the franchisee harmless
from any and all actions, causes of action or damage caused by the
placement of the Borough's wires or fixtures upon the poles owned
by franchisee.
(4)
To the extent that existing poles or underground conduits are insufficient
for its purposes, or if franchisee is unable to negotiate agreements
providing for use of existing utility facilities, franchisee shall
have the right to erect or construct and maintain its own such facilities
as necessary for the construction and maintenance of its television
distribution system, subject to the approval of the location by the
Borough Engineer.
(5)
The Borough Engineer shall not approve the installation of new poles
when, in his professional opinion, the installation of such new transmission
facilities in underground conduit is feasible from an engineering
standpoint. In addition, on streets where both electrical utility
and telephone wiring are located underground, either at the time of
initial construction of a cable system or at any time thereafter,
a franchisee's cable shall also be located underground at the
franchisee's expense. Between a street and a subscriber's
residence, a franchisee's cable must be located underground if
both electrical and telephone utility wiring are located underground.
If either electric or telephone utility wiring is aerial, a franchisee
may install aerial cable except where a property owner or resident
requests underground installation and agrees to bear the additional
cost of such installation over and above the cost of aerial installation.
(6)
All wires, cable lines, and other transmission lines, equipment,
and structures shall be installed and located to cause minimum interference
with the rights and convenience of property owners.
(7)
The Borough may issue and franchisee shall comply with such rules
and regulations concerning the installation and maintenance of a cable
system installed in, on, or over the streets, as may be consistent
with this chapter.
(8)
A franchisee shall have the authority to trim trees that overhang
a street of the Borough so as to prevent the branches of such trees
from coming in contact with the wires and cables of the franchisee.
At the option of the Borough, such trimming may be done by it or under
its supervision and direction, at the expense of the franchisee.
D.
Moving, removal or abandonment of facilities.
(1)
A franchisee shall, at its expense, and by a time specified by the
Borough, protect, support, temporarily disconnect, relocate, or remove
any of its property when required by the Borough by reason of traffic
conditions, public safety, street construction, street resurfacing
or widening, change of street grade, installation of sewers, drains,
water pipes, power lines, signal lines, tracks, or any other type
of municipal, public utility improvements, street vacation, or for
any other purpose where the convenience of the Borough would be served
thereby; provided, however, that the franchisee shall, in all such
cases, have the privilege of abandoning any property in place. The
Borough shall reimburse a franchisee under this subsection to the
same extent that it reimburses telephone, electric and other like
companies for such disconnection, relocation or removal.
(2)
If any removal, relaying, or relocation is required to accommodate
the construction, operation, or repair of the facilities of another
person that is authorized to use the public streets, a franchisee
shall, after 30 days' advance written notice, take action to
effect the necessary changes requested by that person. All costs to
franchisee of any such removal, relaying or relocation of its facilities
shall be absorbed by the person requesting same.
(3)
In the event of an emergency, or where a cable system creates or
is contributing to an imminent danger to health, safety, or property,
the Borough may remove, relay, or relocate that cable system without
prior notice. When possible, the Borough will make reasonable efforts
to notify franchisee and give franchisee reasonable opportunity to
cure.
(4)
In the event the use of any part of a cable system is discontinued
for any reason for a continuous period of 12 months, or in the event
such system or property has been installed in any street without complying
with the requirements of this chapter, or the franchise has been terminated
or canceled or has expired, the franchisee, within 30 days after written
notice by the Borough, shall commence removal from the streets of
all such property as the Borough may require.
(5)
The Borough may extend the time for the removal of abandoned facilities
for a period not to exceed 180 days.
(6)
In the event of such removal or abandonment, the franchisee shall
restore the area to a condition satisfactory to the Borough.
E.
Publicizing proposed construction work. Franchisee shall publicize
significant proposed construction work at least one week prior to
commencement of that work by causing written notice of such construction
work to be delivered to the Borough Secretary and by notifying those
persons most likely to be affected by the work in at least two of
the following ways: by telephone, in person, by mail, by distribution
of flyers to residences, by publication in local newspapers, or in
any other manner reasonably calculated to provide adequate notice.
In addition, before entering onto any person's property, the
franchisee shall make reasonable efforts to contact the property owner
or (in the case of residential property) the resident at least two
days in advance. If the franchisee must enter premises, it must make
reasonable efforts to schedule an appointment at the convenience of
the owner or resident.
A.
Open book and records. The Borough shall have the right to inspect
and copy upon two weeks' written notice at any time during normal
business hours all books, receipts, maps, plans, financial statements,
contracts, service complaint logs, performance test results, records
of requests for service and other reasonable material of franchisee
relating to the operation of franchisee's cable system serving
the Borough and which are required to perform its regulatory and compliance
monitoring responsibilities under the terms of this chapter or applicable
law.
B.
Reports required. The franchisee shall file the following reports
with the Borough, at the Borough's request:
(1)
All reports required by the Federal Communications Commission (FCC)
including, but not limited to any proof of performance tests and results,
Equal Employment Opportunity (EEO) reports, and all petitions, applications,
and communications of all types submitted by franchisee to the FCC,
the Security and Exchange Commission (SEC), or any other federal or
state regulatory commission or agency having jurisdiction over any
matter affecting operation of franchisee's system.
(2)
An annual report setting forth the physical miles of plant construction
and plant in operation during the fiscal year. Such report shall also
contain any revisions to the system "as-built" maps filed with the
Borough.
(3)
Construction reports will, upon request, be sent to the Borough bimonthly
after the franchise is awarded for any construction undertaken during
the term of the franchise until construction is complete, including
any rebuild that may be specified under this chapter.
(4)
Proof of performance test results will be supplied to the Borough
when sections of the system are rebuilt and as required in this chapter.
(5)
Technical tests required by the Borough as specified in this chapter
will be submitted to the Borough promptly upon completion of such
tests.
(6)
The following financial reports as specified hereunder and submitted,
upon request, to the Borough 90 days after the end of the franchisee's
fiscal year:
(a)
An ownership report, indicating all persons, who at any time
during the preceding year did control or benefit from an interest
in the franchise of 5% or more.
(b)
An annual list of officers and members of the Board of Directors
of franchisee and any affiliates.
(c)
Such financial reports pertaining to the Borough, in the form(s)
prescribed, as may be reasonably necessary and appropriate to the
exercise by the Borough of its regulatory and compliance monitoring
responsibilities.
(7)
The following system and operational annual reports shall be submitted
to the Borough upon request:
(a)
A report on the system's technical tests and measurements.
(b)
A report on programs and services offered by franchisee.
(c)
An annual summary of the previous year's activities including,
but not limited to, subscriber totals for each category of service
offered, including number of pay units sold, new services offered,
and the amount collected annually from other users of the system and
the character and extent of the service rendered thereto.
(d)
An annual summary of complaints received and handled.
(8)
The franchisee shall upon request prepare and furnish to the Borough
at the time and in the form prescribed, such additional reports with
respect to its operation, affairs, transactions, or property as may
be reasonably necessary and appropriate to the performance of any
of the rights, functions or duties of the Borough in connection with
this chapter.
C.
Records required.
(1)
The franchisee shall at all times maintain:
(a)
A record of all complaints received and interruptions or degradation
of service experienced for the preceding period prior to a performance
review.
(b)
A full and complete set of plans, records, and "as-built" maps
showing the exact location of all cable communications system equipment
installed or in use in the Borough, exclusive of subscriber service
drops.
(2)
The Borough may impose reasonable requests for additional information,
records, and documents from time to time.
D.
Performance evaluation.
(1)
The Borough may, at its discretion, hold scheduled performance evaluation
sessions annually. All such evaluation sessions shall be open to the
public.
(2)
Special evaluation sessions may be held at any time during the term
of the franchise at the request of the Borough.
(3)
All evaluation sessions shall be open to the public and announced
in a newspaper of general circulation. Franchisee shall notify subscribers
of all such evaluation sessions by announcement on a local origination
channel on the system between the hours of 11:00 a.m. and 9:00 p.m.
for five consecutive days preceding each session.
(4)
Topics that may be discussed at any scheduled or special evaluation
session may include, but not be limited to system performance and
construction, franchisee compliance with this chapter, customer service
and complaint response, subscriber privacy, services provided, programming
offered, service rate structures, if applicable, franchise fees, penalties,
free or discounted services, applications of new technologies, judicial
and FCC filings, and line extensions.
(5)
During the review and evaluation by the Borough, the franchisee shall
fully cooperate with the Borough and shall provide such information
and documents as the Borough may need to reasonably perform its review.
A.
Customer service requirements. Franchisee shall comply with all applicable
federal, state, and local customer service requirements. Unless otherwise
prohibited by law, franchisee must satisfy the following requirements,
or such more stringent requirements as may be subsequently enacted
by federal regulation:
(1)
Franchisee shall maintain a facility in reasonable proximity to the
Borough that shall be open at least during normal business hours,
which shall include evening hours and some weekend hours.
(2)
Franchisee shall render sufficient service, make repairs promptly,
and interrupt service only for good cause and for the shortest time
possible.
(3)
Franchisee shall maintain adequate telephone lines and personnel
to respond to subscriber complaints or inquiries and schedule service
calls in a timely manner. The franchisee shall provide maintenance
personnel sufficient to respond to area outages within six hours during
the period from 8:00 a.m. through 4:00 p.m. seven days per week, excepting
major outages due to storms, civil unrest or acts of God.
(4)
Service calls for maintenance or repairs shall be performed at no
charge; provided, however, if such maintenance or repair is required
as a result of damage caused by a subscriber or as a result of subscriber's
personal equipment, including but not limited to television, VCR and
remote controls, and in-home wiring, then franchisee may charge a
reasonable cost for time and material.
B.
Notice of programming changes. Franchisee shall give at least 30
days' notice to subscribers and the Borough of any change in
programming decisions or channel realignment.
C.
Reconnection. Franchisee shall restore service to customers wishing
restoration of service provided customer shall first satisfy any previous
obligations owed to franchisee.
D.
Disconnection. Franchisee shall charge subscribers to have cable
service disconnected only in accordance with the provisions of the
Cable Act. A refund of unused service charges shall be paid to the
customer within 30 days from the date of termination of service.
E.
Downgrade fees. Franchisee shall charge downgrade fees only in accordance
with the provisions of the Cable Act.
F.
Parental control option. Franchisee shall provide parental control
devices to all subscribers who wish to be able to cut off any objectionable
channel or channels of programming from the cable service entering
the subscriber's home. Franchisee shall charge for this control
option only in accordance with the provisions of the Cable Act.
A.
Finding. The Borough finds that the streets and public rights-of-way
of the county, state, and Borough to be used by a franchisee for the
operation of a cable system are valuable public property acquired
and maintained by the county, state, and Borough at great expense
to the taxpayers. The Borough further finds that the grant of a franchise
to use streets and public rights-of-way is a valuable property right
without which a franchisee would be required to invest substantial
capital. The Borough further finds that as a result of the grant of
the franchise and regulation of same under this chapter, it will incur
substantial costs.
B.
Payment to Borough.
(1)
The Borough shall be paid a franchise fee in an amount no less than
5% of gross annual revenues. In the event the maximum amount permitted
under applicable law is increased to an amount greater than 5%, then
franchisee shall, within 30 days after such increase, make payments
according to the terms of this section at said increased rate. If
the maximum percentage rate ceiling is totally removed, any increase
in the rate to be paid to the Borough by franchisee shall be the subject
of negotiation between the parties.
(2)
To the extent not inconsistent with applicable law, the franchise
fee is in addition to all other taxes and payments that the franchisee
may be required to pay under any federal, state, or local law and
to any other tax, fee, or assessment imposed by utilities and cable
operators for use of their services, facilities or equipment.
(3)
To the extent not inconsistent with applicable law, payment of the
franchise fee shall not be considered in the nature of a tax.
(4)
No acceptance of any payment by the Borough shall be construed as
a release or an accord and satisfaction of any claim the Borough may
have for further or additional sums payable as a franchise fee under
this chapter or for the performance of any other obligation of the
franchisee.
(5)
In the event any franchise fee payment or recomputation amount is
not made on or before the date specified herein, franchisee shall
pay additional compensation and interest charges computed from such
due date, at an annual rate equal to the commercial prime interest
rate of the Borough's primary depository bank during the period
such unpaid amount is owed.
(6)
The franchise fee and any other costs assessed by the Borough against
a franchisee shall be paid quarterly to the Borough and shall commence
as of the effective date of the franchise. The Borough shall be furnished
at the time of each payment with a statement certified by the franchisee's
Chief Financial Officer or an independent certified public accountant
reflecting the total amount of quarterly gross revenues for the payment
period. Quarterly payments shall be made to the Borough no later than
45 days following the end of each calendar quarter. Quarter computation
dates are the last days of the months of March, June, September, and
December. The Borough may require that an annual statement of gross
revenues shall be furnished to the Borough by an independent, certified
public accountant, and that franchisee shall provide an annual complete
audit statement for each calendar year within 90 days from the end
of that calendar year.
(7)
The Borough shall have the right to inspect and copy the franchisee's
records as is necessary to verify the accuracy of franchisee's
franchise fee payments and other possible levied taxes, and the rights
to audit and to recompute any amounts determined to be payable under
this chapter for a period of four years from the date of payment.
Audits shall be at the expense of the Borough unless the audit discloses
an underpayment of greater that 5% of the entire amount determined
to be payable for the period being audited, in which case the costs
of the audit shall be borne by the franchisee as a cost incidental
to the enforcement of the franchise. Any additional amounts due to
the Borough as a result of the audit shall be paid within 30 days
following written notice to the franchisee by the Borough of the underpayment,
which notice shall include a copy of the audit report, unless written
notice of disagreement is filed by the franchisee with the Borough
within such time period. In the case of a dispute, the issue shall
be resolved through binding arbitration in accordance with the procedures
of the American Arbitration Association.
(8)
Franchisee shall maintain subscriber revenue records for customers
within the franchise area on a separate basis. In addition, franchisee
shall provide, upon request, such additional documentation as to enable
the Borough to determine the accuracy of franchise fee revenue calculations.
A.
Insurance required. Franchisee shall maintain, and by its acceptance
of the franchise specifically agrees that it will maintain, throughout
the entire length of the franchise period, at least the following
liability insurance coverage insuring the Borough and the franchisee:
worker's compensation and employer liability insurance to meet
all requirements of Pennsylvania law and comprehensive general liability
insurance with respect to the construction, operation and maintenance
of the cable system, and the conduct of franchisee's business
in the Borough, in the minimum amounts of:
B.
Qualifications of sureties. All insurance policies shall be with
sureties qualified to do business in the State of Pennsylvania; shall
be with sureties with an A-1 or better rating of insurance by Best's
Key Rating Guide, Property/Casualty Edition; and in a form approved
by the Borough Secretary.
C.
Policies available for review. All insurance policies shall be available
for review by the Borough, and a franchisee shall keep on file with
the Borough certificates of insurance.
D.
Additional insureds; prior notice of policy cancellation. All insurance
policies shall name the Borough, its Council, Councilpersons, officers,
boards, commissions, Commissioners, agents, and employees as additional
insureds and shall further provide that any cancellation or reduction
in coverage shall not be effective unless 30 days' prior written
notice thereof has been given to the Borough. Franchisee shall not
cancel any required insurance policy without submission of proof that
the franchisee has obtained alternative insurance satisfactory to
the Borough which complies with this chapter.
E.
Indemnification. Franchisee shall, at it sole cost and expense, indemnify,
hold harmless, and defend the Borough, its officials, boards, commissions,
agents, and employees, against any and all claims, suits, causes of
action, proceedings, and judgments for damages or equitable relief
arising out of the construction, maintenance, or operation of its
cable system, the conduct of franchisee's business in the Borough
or in any way arising out of the franchisee's enjoyment or exercise
of the franchise granted hereunder, except that the franchisee shall
not indemnify, hold harmless and defend the Borough, in connection
with any negligent or malicious act or omission attributable to the
Borough. This provision includes, but is not limited to, the Borough's
reasonable attorney' fees incurred in defending against any such
claim, suit, or proceeding; and claims arising out of copyright infringements
or a failure by franchisee to secure consents from the owners, authorized
distributors, or franchisees of programs to be delivered by the cable
system.
F.
Indemnification for Cable Act claims. Franchisee shall, at its sole
cost and expense, fully indemnify, defend, and hold harmless the Borough,
and in its capacity as such, the officers, agents, and employees thereof,
from and against any and all claims, suits, actions, liability, and
judgments for damages of otherwise subject to Section 638 of the Cable
Act, 47 U.S.C. § 558, arising out of or alleged to arise
out of the installation, construction, operation, or maintenance of
its system, including but not limited to any claim against the franchisee
for invasion of the right of privacy, defamation of any person, firm
or corporation, or the violation or infringement of any copyright,
trade mark, trade name, service mark, or patent, or of any other right
of any person, firm, or corporation. This indemnity does not apply
to programming carried on any channels leased pursuant to 47 U.S.C.
§ 532, unless the franchisee was in any respect engaged
in determining the editorial content of the program, or adopts a policy
of pre-screening programming for the purported purpose of banning
indecent or obscene programming. Nothing herein shall prohibit the
Borough from participating in the defense of any litigation by its
own counsel and obtaining indemnification for the costs associated
therewith.
G.
No limit of liability. Neither the provisions of this section nor
any damages recovered by the Borough shall be construed to limit the
liability of the franchisee for damages under any franchise issued
hereunder.
A.
Security deposit. Prior to the franchise becoming effective, the
franchisee shall post with the Borough a cash security deposit to
be used as a security fund to ensure the franchisee's faithful
performance of and compliance with all provisions of this chapter,
and other applicable law, and compliance with all orders, permits,
and directions of the Borough, and the payment by the franchisee of
any claims, liens, fees, or taxes due the Borough which arise by reason
of the construction, operation, or maintenance of the system, or for
any damages or loss suffered by the Borough as a result of the franchisee's
nonperformance, including the full amount of any compensation, indemnification
or cost of removal of any property of the franchisee in the event
of default, and a reasonable allowance for attorneys' fees and
costs. The amount of the security fund shall be $20,000.
B.
Surety bond. The Borough and franchisee may agree that the franchisee
may, in lieu of the security fund, file and maintain with the Borough
a bond with an acceptable surety in the amount of $100,000 to indemnify
the Borough against any losses it may suffer in the event the franchisee
fails to comply with one or more of the provisions of the franchise.
Said bond shall be obtained at the sole expense of the franchisee
and remain in effect for the full term of the franchise plus an additional
six months thereafter. The franchisee and its surety shall be jointly
and severally liable under the terms of the bond for any damages or
loss suffered by the Borough as a result of the franchisee's
nonperformance, including the full amount of any compensation, indemnification
or cost of removal of any property of the franchisee in the event
of default, and a reasonable allowance for attorneys' fees and
costs, up to the full amount of the bond. The bond shall provide for
30 days' prior written notice to the Borough of any intention
on the part of the franchisee to cancel, fail to renew, or otherwise
materially alter its terms. Neither the filing of a surety bond with
the Borough, nor the receipt of any damages recovered by the Borough
thereunder, shall be construed to excuse faithful performance by the
franchisee or limit the liability of the franchisee under the terms
of the franchise for damages, either to the full amount of the bond
or otherwise.
C.
Security fund in addition to all other Borough rights. The rights
reserved to the Borough with respect to any security fund or an indemnity
bond are in addition to all other rights of the Borough, whether reserved
by this chapter or authorized by other law, and no action, proceeding,
or exercise of a right with respect to such security fund or indemnity
bond will affect any other right the Borough may have.
D.
Procedures. In order for the Borough to assert its rights to recovery
from the security fund, it shall, through the Borough Secretary, provide
notice identifying the specific nature of the default or claim. Franchisee
shall, within five days, commence, and diligently work toward, the
resolution of the alleged default or claim; such resolution to be
achieved within 60 days of notice. In the event of failure of franchisee
to resolve the default or claim, the Borough shall issue a notice
of default or claim and may thereupon claim its losses against the
security fund.
A.
Establishment of performance bond. Prior to any cable system construction,
upgrade, or other work in the streets, a franchisee shall establish
in the Borough's favor a performance bond in an amount equal
to 120% of cost of proposed physical construction (based upon estimate
approved by Borough Engineer) to ensure the franchisee's faithful
performance of the construction, upgrade, or other work.
B.
Recovery under performance bond. In the event a franchisee subject to such a performance bond fails to complete the cable system construction, upgrade, or other work in the streets in a safe, timely, and competent manner in accord with the material provisions of the franchise, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the Borough as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the franchisee, or the cost of completing or repairing the system construction, upgrade, or other work in the streets, plus a reasonable allowance for attorneys' fees, up to the full amount of the bond. The Borough may also recover against the bond any amount recoverable against the security fund or surety bond where such amount exceeds that available under the security fund or surety bond. Before seeking recovery under this Subsection B, Borough shall provide to franchisee reasonable notice and opportunity to cure.
C.
Changes to amount of performance bond. Upon completion of the system
construction, upgrade, or other work in the Streets and payment of
all construction obligations of the cable system to the satisfaction
of the Borough, the Borough shall eliminate the bond or reduce its
amount after a time appropriate to determine whether the work performed
was satisfactory, which time shall be established considering the
nature of the work performed.
D.
Qualifications of sureties. The performance bond shall be issued
by a surety with an A-1 or better rating of insurance in Best's
Key Rating Guide, Property/Casualty Edition; shall be subject to the
approval of the Borough; and shall contain the following endorsement:
"This bond may not be canceled, or allowed to lapse, until 60
days after receipt by the Borough, by certified mail, return receipt
requested, or a written notice from the issuer of the bond of intent
to cancel or not to renew."
|
E.
Performance bond in addition to all other Borough rights. The rights
reserved by the Borough with respect to any performance bond established
pursuant to this chapter are in addition to all other rights and remedies
the Borough may have under this chapter, or at law or equity and all
other Borough regulations.
A.
Available remedies. In addition to any other remedies available at
law or equity, the Borough may apply any one or a combination of the
following remedies in the event a franchisee violates this chapter,
or applicable state or federal law:
(1)
Revoke the franchise pursuant to the procedures specified in this
chapter.
(2)
In addition to or instead of any other remedy, the Borough may seek
legal or equitable relief from any court of competent jurisdiction.
(3)
Impose penalties available under state and local law for violation
of Borough ordinances.
B.
Determination of appropriate remedies. In determining which remedy
or remedies are appropriate, the Borough shall take into consideration
the nature of the violation, the person or persons bearing the impact
of the violation, the nature of the remedy required in order to prevent
further violations, and such other matters as the Borough determines
are appropriate to the public interest.
C.
Notice of violation or default. Except as otherwise provided hereunder,
prior to applying one or more of the remedies provided in this section,
the Borough Secretary shall provide notice identifying the specific
nature of the violation or default. Franchisee shall, within five
days, provide a response and commence, and diligently work toward
the correction of the violation or default. In the event the violation
or default is not corrected within 60 days of notice, the Borough
may proceed to apply the remedies provided in this section as may
be appropriate in the circumstances. Nothing in this subsection shall
be construed to limit the ability of the Borough to impose penalties
in the usual manner for violation of its other ordinances and regulations.
The rights granted under this chapter shall be freely assignable
and transferable by the company subsequent to the commencement of
service and during the term hereof, provided that no assignment or
transfer of the rights granted hereunder shall become effective until
the assignee or transferee has filed with the Borough Secretary an
instrument accepting terms of this chapter and agreeing to perform
all of the conditions hereof.
A.
Basis for revocation. A franchise may be revoked by the Borough for a franchisee's failure to construct, operate, or maintain the cable system as required by this chapter, for defrauding or attempting to defraud the Borough or subscribers, if the franchisee is declared bankrupt, or for any other material violation of this chapter. To invoke the provisions of this section, the Borough shall give the franchisee written notice via certified mail of the default in its performance. If within 30 calendar days following such written notice from the Borough to the franchisee, the franchisee has not taken corrective action or corrective action is not being actively and expeditiously pursued to the satisfaction of the Borough, the Borough may give written notice via certified mail to the franchisee of its intent to revoke the franchise, stating its reasons; provided that, no opportunity to cure shall be provided where the franchisee has defrauded or attempted to defraud the Borough or its subscribers, or in the case of a fraud or attempted fraud, the franchise may be revoked after the hearing required under Subsection B; revocation for bankruptcy shall be governed by Subsection C.
B.
Procedure. Prior to revoking a franchise, the Borough shall hold
a public hearing, upon 30 calendar days' notice, at which time
the franchisee and the public shall be given an opportunity to be
heard. Following the public hearing, the Borough may determine whether
to revoke the franchise based on the information presented at the
hearing, and other information of record. If the Borough determines
to revoke a franchise, it shall issue a written decision setting forth
the reasons for its decision. A copy of such decision shall be transmitted
to the franchisee.
C.
Revocation after bankruptcy. Any franchise may, at the option of
the Borough following a public hearing before the Borough, be revoked
120 calendar days after an assignment for the benefit of creditors
or the appointment of a receiver or trustee to take over the business
of the franchisee, whether in a receivership, reorganization, bankruptcy
assignment for the benefit of creditors, or other action or proceeding,
unless within that one-hundred-twenty-day period:
(1)
Such assignment, receivership, or trusteeship has been vacated; or
(2)
Such assignee, receiver, or trustee has fully complied with the terms and conditions of this chapter and has executed an agreement, approved by a court of competent jurisdiction, assuming and agreeing to be bound by the terms and conditions of this chapter, and such other conditions as may be established or as are required pursuant to § 151-29.
D.
Revocation after foreclosure. In the event of foreclosure or other
judicial sale of any of the facilities, equipment, or property of
a franchisee, the Borough may revoke the franchise, following a public
hearing before the Borough, by serving notice on the franchisee and
the successful bidder at the sale, in which event the franchise and
all rights and privileges of the franchise will be revoked and will
terminate 30 calendar days after serving such notice, unless:
(1)
The Borough has approved the transfer of the franchise to the successful
bidder; and
E.
Rights on revocation. If the Borough revokes a franchise, or if for
any other reason a franchisee abandons, terminates, or fails to operate
or maintain service to its subscribers, the following procedures and
rights are effective:
(1)
The Borough may require the former franchisee to remove its facilities
and equipment at the former franchisee's expense. If the former
franchisee fails to do so within a reasonable period of time, the
Borough may have the removal done at the former franchisee's
and/or surety's expense.
(2)
In the event of revocation, the Borough, by resolution, may acquire
ownership of the cable system at an equitable price.
(3)
If a cable system is abandoned by a franchisee or the franchisee
fails to operate or maintain service to its subscribers or otherwise
terminates the franchise, the ownership of all portions of the cable
system in public rights-of-way shall revert to the Borough and the
Borough may sell, assign, or transfer all or part of the assets of
the system.
A.
Discriminatory practices prohibited. Franchisee shall not deny service,
deny access, or otherwise discriminate against subscribers, programmers,
or residents of the Borough on the basis of race, color, religion
national origin, sex, or age. Notwithstanding the foregoing, franchisee
may offer price discounts to senior citizens. Moreover, nothing shall
prohibit franchisee from entering into service agreements (with discounts
and special terms) including apartments, condominiums and other dwelling
units, hotels/motels, and mobile home parks located within the Borough.
Franchisee shall comply at all times with all applicable federal,
state, and Borough laws, and all executive and administrative orders
relating to nondiscrimination.
B.
Equal employment opportunity. A franchisee shall not refuse to employ,
discharge from employment, or discriminate against any person in compensation
or in terms, conditions, or privileges of employment because of race,
color, religion, national origin, sex, or age. The franchisee shall
comply with federal, state, and local laws and regulations governing
equal employment opportunities, as the same may be from time to time
amended.
C.
Subscriber privacy. A franchisee shall at all times protect the privacy
of all subscribers pursuant to the provisions of Section 631 of the
Cable Act, 47 U.S.C. § 551. A franchisee shall not condition
subscriber service on the subscriber's grant of permission to
disclose information which, pursuant to federal or state law, cannot
be disclosed without the subscriber's explicit consent.
A.
Compliance with laws. Franchisee and the Borough shall comply with
all applicable federal, state, and Borough laws and regulations as
they become effective, unless otherwise stated.
B.
Captions. Captions and headings of this chapter are for convenience
and reference purposes only and shall not affect in any way the meaning
and interpretation of any provisions of this chapter.
C.
Calculation of time. Unless otherwise indicated, when the performance
or doing of any act, duty, matter, payment, or thing is required hereunder
and a period of time or duration for the fulfillment of doing thereof
is prescribed and is fixed herein, the time shall be computed so as
to exclude their first and include the last day of the prescribed
or fixed period of duration time. When the last day of the period
falls on a Saturday, Sunday, or a legal holiday, that day shall be
omitted from the computation.