[HISTORY: Adopted by the Borough Council of the Borough of Vandergrift 9-11-2006 by Ord. No. 4-2006. Amendments noted where applicable.]
Terms. For the purpose of this ordinance, the following terms, phrases, words and abbreviations shall have the meanings ascribed to them below. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number:
AFFILIATE
An entity which owns or controls, is owned or controlled by, or is under common ownership with grantee.
BASIC CABLE SERVICE
The service tier which includes the retransmission of local broadcast television signals required to be carried on the cable system, for which grantee charges the lowest monthly charge.
CABLE ACT
The Cable Communications Policy Act of 1984, as amended.
CABLE SERVICE
(i) The one-way transmission to subscribers of video programming or other programming service, and (ii) subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service.
CABLE SYSTEM
A facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment or other communications equipment that is designed to provide cable service to subscribers.
FCC
Federal Communications Commission or successor governmental entity thereto.
FRANCHISE
The initial authorization, or renewal thereof, issued by the franchising authority, whether such authorization is designated as a franchise, permit, license, resolution, contract, certificate, or otherwise, which authorizes construction and operation of the cable system for the purpose of offering cable service or other service to subscribers.
FRANCHISE AUTHORITY
The Borough of Vandergrift, or the lawful successor, transferee or assignee thereof.
GRANTEE
Comcast of California/Pennsylvania/Utah/Washington, Inc. or the lawful successor, transferee or assignee thereof.
GROSS REVENUE
The revenue derived by the grantee from the operation of the cable system in the service area to provide cable services, calculated in accordance with generally accepted accounting principles, including but not limited to monthly basic, expanded basic, premium, pay-per-view fees, installation fees, equipment rental fees, late fees, leased access fees, advertising and home shopping revenue, and the amount of the franchise fee itself. Gross revenue shall not include refundable deposits, bad debt, investment income, nor any taxes, fees or assessments imposed or assessed by any governmental authority.
PERSON
An individual, partnership, association, joint stock company, trust corporation, or governmental entity.
PUBLIC WAY
The surface of, and the space above and below, any public street, highway, freeway, bridge, land path, alley, court, boulevard, sidewalk, parkway, way, lane, public way, drive, circle or other public right-of-way, including public utility easements, dedicated utility strips or rights-of-way dedicated for compatible uses and any temporary or permanent fixtures or improvements located thereon now or hereafter held by the franchise authority in the service area which shall entitle the franchise authority and the grantee to the use thereof for the purpose of installing, operating, repairing and maintaining the cable system. "Public way" shall also mean any easement now or hereafter held by the franchise authority within the service area for the purpose of public travel or for utility or public service use dedicated for compatible uses, and shall include other easements or rights-of-way as shall within their proper use and meaning entitle the franchise authority and the grantee to use thereof for the purposes of installing or transmitting grantee's cable service or other service over poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, compliances, attachments and other property as may be ordinarily necessary and pertinent to the cable system. This definition does not include private property, streets or easements.
SERVICE AREA
The present municipal boundaries of the franchising authority and shall include any additions thereto by annexation or other legal means.
SUBSCRIBER
A person or entity who lawfully receives cable services or other service therefrom with grantee's express permission.
VIDEO PROGRAMMING
Programming provided by, or generally considered comparable to programming provided by, a television broadcast station.
A. 
Grant. The Borough hereby grants to grantee a nonexclusive franchise which authorizes the grantee to construct and operate a cable system and offer cable service and other services in, along, among, upon, across, above, over, under or in any manner connected with public ways within the service area and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain or retain in, on, over, under, upon, across or along any public way, and all extensions thereof and additions thereto, such poles, wires, cables, conductors, ducts, conduits, vaults, manholes, pedestals, amplifiers, appliances, attachments, and other related property or equipment as may be necessary or pertinent to the cable system.
B. 
Term. The franchise granted pursuant to this ordinance shall be for an initial term of 15 years from the effective date of the franchise as set forth in Subsection C, unless otherwise lawfully terminated in accordance with the terms of this ordinance.
C. 
Effective date. The effective date of this franchise granted pursuant to this ordinance shall be September 11, 2006.
D. 
Nonexclusive grant. The right to use and occupy said public ways, as defined above, for the purposes herein set forth shall not be exclusive in grantee. However, the franchise authority shall require a franchise agreement for any other person or entity, as defined above, engaging in the cable service business within any portion of the Borough. Further, no such franchise agreement shall contain terms or conditions more favorable or less burdensome to the competitive entity than the material terms and conditions herein, including, but not limited to: franchise fees; insurance; system build-out requirements; performance bonds or similar instruments; customer service standards; required reports and related recordkeeping; and notice and opportunity to cure breaches. If any such additional or competitive franchise is granted by the franchising authority which, in the reasonable opinion of the grantee, contains more favorable or less burdensome terms or conditions than this franchise agreement, the franchising authority agrees that it shall amend this franchise agreement to include any more favorable or less burdensome terms or conditions. In the event a change in federal or state law provides for an alternative franchising or licensing scheme, grantee shall have the right to provide the Borough with notice of its election of the new franchising or licensing scheme and to terminate this franchise prior to expiration.
A. 
Conditions of street occupancy. All transmission and distribution structures, poles, other lines, and equipment installed or erected by the grantee pursuant to the terms hereof shall be so located so as to cause a minimum of interference with the proper use of public ways and with the rights and reasonable convenience of property owners who own property that adjoins any of said public ways. Except for existing facilities, the grantee shall not place, or caused to be placed, any transmission and distribution structures, poles, other lines or other equipment above, over, under, across, through or in any way connected with the public ways of the municipality without first obtaining written approval of the franchise authority.
B. 
Restoration of public ways. If during the course of grantee's construction, operation or maintenance of the cable system there occurs a disturbance of any public way by grantee, it shall at its own cost and expense replace and restore such public way to a condition satisfactory to the franchise authority.
C. 
Relocation at request of franchising authority. The grantee upon notice by the franchising authority shall, at its own expense, protect, support, temporarily disconnect, relocate on the same street or other public way, or remove from such street or other public way, any of its property when required to do so by the franchising authority because of street or other public excavation, construction, repair, regrading or grading, traffic conditions, installation of sewers, drains, water pipes, municipally owned power or signal lines, vacation or relocation of streets, or any other type of structures or improvement necessary for the public health, safety and welfare; but the grantee shall, in all cases, have the right of abandonment of its property. However, grantee agrees, at the request of the municipality, to remove or arrange for removal of all property existing in aerial installations and all aboveground equipment associated with underground service no longer utilized by the grantee. Furthermore, in only those cases where public safety or completion of a mandatory construction or excavation project will be adversely affected, the grantee will remove portions of underground cable as necessary. Should the franchise authority make application to any public agency or other funding source which provides monetary reimbursement for relocation or replacement of existing transmission pipes, power lines or communications facilities, etc., such application shall include a request made on behalf of the grantee to cover costs of relocation or replacement of grantee's property. Should said public fund reimbursement request to fully compensate grantee be denied, and should the franchising authority and the grantee be unable to agree on an acceptable method and amount of reimbursement, then grantee shall be released from any obligation to provide cable service to the affected street or area. However, and in all cases involving relocation, the grantee shall make a special effort to relocate cable system on facilities which exist in alleys and on secondary streets, thereby reducing cost to the grantee and/or the franchising authority. Determination as to economic feasibility of relocation shall be made according to the provisions of Subsection I which follows. All relocations addressed in this Subsection C shall be discussed with the franchising authority.
D. 
Relocation at request of third party. The grantee shall, on the request of any person holding a building moving permit issued by the franchising authority, temporarily raise or lower its wires to permit the moving of such building, provided: (a) the expense of such temporary raising or lowering of wires is paid by said person, including, if required by the grantee, making such payment in advance; and (b) the grantee is given not less than 10 business days' advance written notice to arrange for such temporary wire changes.
E. 
Trimming of trees and shrubbery. The grantee may trim trees or other vegetation owned by the municipality to prevent their branches or leaves from touching or otherwise interfering with its wires, cables or other structures. All trimming and pruning shall be at the expense of the grantee. All trimming or pruning provided for herein shall be done under the supervision and direction of the appropriate municipal committee.
F. 
Use of grantee's equipment by franchising authority. Subject to any applicable state or federal regulations or tariffs, the franchising authority shall have the right to make additional use, for any public purpose, of any poles or conduits controlled or maintained exclusively by or for the grantee in any public way, provided that: (a) such use by the franchising authority does not interfere with a current or future use by the grantee; (b) the franchising authority holds the grantee harmless against any and from all claims, demands, costs or liabilities of every kind and nature whatsoever arising out of such use of said poles or conduits, including, but not limited to, reasonable attorneys' fees and costs.
G. 
Safety requirements. Construction, installation and maintenance of the cable system shall be performed in an orderly and workmanlike manner. All such work shall be performed in accordance with applicable safety code or technical requirements, including, but not limited to, National Electrical Safety Code (National Bureau of Standards); National Electrical Code (National Bureau of Fire Underwriters); and applicable FCC or other federal, state and local regulations. The cable system shall not endanger or interfere with the safety of persons or property in the service area. In particular, grantee shall comply with all federal laws or regulations which govern cable plant signal leakage or interference with communications media.
H. 
Aerial and underground construction. All installations shall be underground in those areas of the municipality where both telephone and electric utilities' facilities are underground at the time of the installation of the grantee's transmission and distribution facilities. In areas where the telephone and/or the electric utilities' facilities are above the ground at the time of the installation of the grantee's cable system, the grantee may install its service above the ground only upon condition that at such time as those facilities are placed underground by the telephone and electric companies, the grantee shall likewise place its facilities underground at its sole cost and expense.
I. 
Required extensions of service. The cable system as presently constructed is hereby approved as to extent of service area; grantee is hereby authorized to extend the cable system as necessary, as desirable, or as required pursuant to the terms hereof within the service area. Whenever grantee shall receive a request for cable service from at least 15 subscribers within 1,320 cable bearing strand feet (one-quarter cable mile) of its trunk cable, it shall extend its cable system to such subscribers at no cost to said subscribers for system extension, other than the usual connection fees for all subscribers, provided that such extension is technically feasible and if it will not adversely affect the operation, financial condition or market development of the cable system.
J. 
Subscriber charges for extensions of cable service. No subscriber shall be refused cable service arbitrarily. However, for unusual circumstances, such as requirements for underground cable, or where there is more than 125 feet of distance from distribution cable to connection of service to subscribers or a density of less than 15 subscribers per 1,320 cable bearing strand feet of trunk or distribution cable, grantee may establish a special fee. Service may be made available on the basis of cost of material, labor and easements as a special fee, in order that existing subscribers shall not be unfairly burdened.
K. 
Service to public buildings. The grantee shall provide without charge one outlet of basic cable service to each governmental office building, fire station, police station, and public, private and parochial elementary and secondary school building that is passed by its cable system. The outlets of basic service shall not be used to distribute or sell cable services in or throughout such buildings, nor shall such outlets be located in common or public areas open to the public. Users of such outlets shall hold grantee harmless from any and all liability or claims arising out of their use of such outlets, including but not limited to those arising from copyright liability. Notwithstanding anything to the contrary set forth in this Subsection K, the grantee shall not be required to provide an outlet to such buildings where the drop line from the feeder cable to said buildings or premises exceeds 125 cable feet, unless it is feasible and if it will not adversely affect the operation, financial condition or market development of the cable system to do so, or unless the appropriate governmental entity agrees to pay the incremental cost of such drop line in excess of 125 cable feet. In the event that additional outlets of basic service are provided to such buildings, the building owner shall pay the usual installation and service fees associated therewith.
L. 
Emergency alert system. Grantee shall comply with the FCC's Emergency Alert System requirements throughout the term of the franchise.
M. 
Technical standards. The grantee shall comply with all applicable technical standards of the FCC as published in subpart K of 47 CFR 76. To the extent those standards are altered, modified or amended during the term of this franchise, the grantee shall comply with such altered, modified or amended standards within a reasonable period after such standards become effective. Upon request, the franchising authority shall have the opportunity to review the grantee's test results verifying compliance with this section.
A. 
Franchise fee. Grantee shall pay to the franchising authority a franchise fee equal to 5% of gross revenues, as defined in § A520-1, received by grantee from the operation of the cable system. Franchise fee payments due the franchising authority under this section shall be computed quarterly. For the purpose of the franchise fee computation, the applicable accounting period shall be a calendar year, unless otherwise agreed to in writing by the franchising authority and grantee. The quarterly franchise fee payments shall be due and payable 60 days after the close of the preceding quarter. Each payment shall be accompanied by a brief report from a representative of the grantee showing the basis for the computation. In no event shall the franchise fee payments required to be paid by the grantee exceed 5% of gross revenues received by grantee in any twelve-month period. The franchise fee payment shall be the sole compensation due, and no other fee, charge or other consideration shall be paid by the grantee. Sales tax or other tax levied on a per-subscription basis and collected by grantee shall be deducted from gross revenues in computing any sum due.
B. 
Rates and charges. The franchising authority may not regulate the rates for the provision of cable service and other service provided over a cable system to cable subscribers except as authorized by the Cable Act.
C. 
Renewal of franchise. Renewal of this franchise shall be governed by and comply with the provisions of Section 626 of the Cable Act.
D. 
Conditions of sale. Subject to federal and state law, in the event that renewal of the franchise is denied or the franchise is revoked for cause by the franchising authority, the conditions of the sale shall be in accordance with the provisions of the Cable Act.
E. 
Transfer of franchise. Neither the grantee nor any other person may transfer the cable system or the franchise without the prior written consent of the franchising authority, which consent shall not be unreasonably withheld or delayed. No change in control of the grantee, defined as an acquisition of 50% or greater ownership interest in grantee, shall take place without the prior written consent of the franchising authority, which consent shall not be unreasonably withheld or delayed. No consent shall be required, however, for: (i) a transfer in trust, by mortgage, hypothecation, or by assignment of any rights, title, or interest of the grantee in the franchise or in the cable system in order to secure indebtedness; or (ii) a transfer to an entity directly or indirectly owned or controlled by Comcast Corporation. Within 30 days of receiving a request for consent, the franchising authority shall, in accordance with FCC rules and regulations, notify the grantee in writing of the additional information, if any, it requires to determine the legal, financial and technical qualifications of the transferee or new controlling party. If the franchising authority has not taken action on the grantee's request for consent within 120 days after receiving such request, consent shall be deemed given.
A. 
Books and records. The grantee agrees that the franchising authority may review such of its books and records as are reasonably necessary to monitor compliance with the terms hereof. Such records shall include, but shall not be limited to, any public records required to be kept by the grantee pursuant to the rules and regulations of the FCC. Notwithstanding anything to the contrary set forth herein, grantee shall not be required to disclose information which is proprietary or confidential in nature. The franchising authority agrees to treat any information disclosed by the grantee on a confidential basis, and only to disclose it to employees, representatives and agents thereof that have a need to know, or in order to enforce the provisions hereof. Confidentiality shall be strictly maintained in this manner unless prevailing law requires action to the contrary. All such documents pertaining to financial matters that may be the subject of an inspection by the franchising authority shall be retained by the grantee for a minimum period of three years.
B. 
Periodic review. Beginning three years after the effective date of the franchise, and every three years thereafter, the franchising authority may on its own initiative, and shall at the request of the grantee, schedule a public meeting for the purpose of reviewing the performance of the grantee under the franchise. The franchising authority shall notify grantee of the time and place of such meeting and provide the grantee with an opportunity to be heard. The public shall be afforded appropriate notice and opportunity for comment. Within four months of such meeting, the franchising authority shall provide grantee with a written copy of its findings.
A. 
Insurance requirements.
(1) 
The grantee shall obtain, effective from the date of the enactment of this ordinance granting a franchise, and shall keep in full force and effect during the entire term of such franchise, or any extension thereof, a policy of comprehensive general liability insurance, duly executed by the officers or authorized representatives of a responsible and nonassessable insurance company, evidencing minimum coverages for the benefit of the municipality as an additional insured of not less than the sum of $500,000 for bodily injury, including death to any one person, and not less than $1,000,000 for bodily injury or death on account of any one occurrence, and not less than $100,000 for damage to property in any one accident. A certificate of insurance verifying such policy shall be delivered to the municipality upon the enactment of such ordinance.
(2) 
The grantee shall also carry Workers' Compensation Insurance covering all of its employees subject to the Workers' Compensation Act of the Commonwealth of Pennsylvania and shall furnish the municipality with a certificate of insurance upon the enactment of such ordinance.
(3) 
The insurance heretofore mentioned shall be noncancellable except upon 30 days' prior written notice to the municipality.
B. 
Indemnification. The grantee shall indemnify, defend and hold harmless the franchising authority, its officers, employees, and agents from and against any liability or claims resulting from property damage or bodily injury (including accidental death) that arise out of the grantee's construction, operation, maintenance or removal of the cable system, including, but not limited to, reasonable attorneys' fees and costs, provided that the franchising authority shall give the grantee written notice of its obligation to indemnify and defend the franchising authority within 10 business days of receipt of a claim or action pursuant to this section. If the franchising authority determines that it is necessary for it to employ separate counsel, the costs for such separate counsel shall be the responsibility of the franchising authority.
C. 
Bonds. The grantee shall file with the Municipal Secretary and shall maintain in full force and effect during the term hereof a corporate surety bond or other adequate surety agreement in the amount of $20,000. The bond or agreement shall be conditioned that, in the event that grantee shall fail to pay the franchise fee due the municipality under the terms of § A520-4A, then there shall be recoverable jointly and severally from the principal and surety any damages or loss or costs suffered or incurred by the municipality as a result thereof, including attorney's fees and costs of any action or proceeding, and including the full amount of any compensation or indemnification up to the full principal amount of such bond. Said condition shall be a continuing obligation during the entire term of this ordinance.
A. 
Notice of violation. In the event that the franchising authority believes that the grantee has not complied with the terms of the franchise, it shall notify grantee of the exact nature of the alleged noncompliance in writing.
B. 
Grantee's right to cure or respond. Grantee shall have 30 days from receipt of the notice described in Subsection A to respond to the franchising authority, contesting the assertion of noncompliance, or to cure such default or, in the event that, by the nature of default, such default cannot be cured within the thirty-day-period, initiate reasonable steps to remedy such default and notify the franchising authority of the steps being taken and the projected date that they will be completed.
C. 
Enforcement.
(1) 
Subject to applicable federal and state law, in the event the franchising authority, after such meeting, determines that grantee is in default of any provision of the franchise, the franchising authority may:
(a) 
Pursue any and all remedies legal or equitable and available to the franchising authority.
(b) 
In the case of a default of a material provision of the franchise, declare the franchise to be revoked in accordance with the following:
[1] 
The franchising authority shall give written notice to the grantee of its intent to revoke the franchise on the basis of a pattern of noncompliance by the grantee, including one or more instances of substantial noncompliance with a material provision of the franchise. The notice shall set forth with specificity the exact nature of the noncompliance. The grantee shall have 90 days from the receipt of such notice to object in writing and to state its reasons for such objection. In the event the franchising authority has not received a response from the grantee or, upon receipt of the response, does not agree with the grantee's proposed remedy, it may then seek termination of the franchise at a public hearing. The franchising authority shall cause to be served upon the grantee, at least 10 days prior to such public hearing, a written notice specifying the time and place of such hearing and stating its intent to request termination of the franchise.
[2] 
At the designated hearing, the franchising authority shall give the grantee an opportunity to state its position on the matter, present evidence and question witnesses, after which it shall determine whether or not the franchise shall be revoked. The public hearing shall be on the record, and a written transcript shall be made available to the grantee within 10 business days. The decision of the franchising authority shall be in writing and shall be delivered to the grantee by certified mail. The grantee may appeal such determination to an appropriate court, which shall have the power to review the decision of the franchising authority "de novo" and to modify or reverse such decision as justice may require. Such appeal to the appropriate court must be taken within 60 days of the issuance of the determination of the franchising authority.
(2) 
The grantee shall not be relieved of any of its obligations to comply promptly with any provision of the franchise by reason of any failure of the franchising authority to enforce prompt compliance.
D. 
Immunity. The grantee shall not be held in default or noncompliance with the provisions of the franchise, nor suffer any enforcement or penalty relating thereto, where such noncompliance or alleged defaults are caused by strikes, acts of god, or other events reasonably beyond its ability to control.
A. 
Customer service standards. The franchising authority hereby adopts the customer service standards set forth in Part 76, § 76.309 of the FCC's Rules and Regulations, as amended. The grantee shall comply in all respects with the customer service requirements established by the FCC.
B. 
Customer bills. Customer bills shall be designed in such a way as to present the information contained therein clearly and comprehensibly to customers and in a way that: (i) is not misleading and (ii) does not omit material information. Notwithstanding anything to the contrary in Subsection A above, the grantee may, in its sole discretion, consolidate costs on customer bills as may otherwise be permitted by Section 622(c) of the Cable Act [47 U.S.C. § 542(c)].
C. 
Privacy protection. The grantee shall comply with all applicable federal and state privacy laws, including Section 631 of the Cable Act and regulations adopted pursuant thereto.
A. 
Actions of grantee and franchising authority. In any action by the grantee and the franchising authority or representative thereof mandated or permitted under the terms hereof, such party shall act in a reasonable, expeditious and timely manner.
B. 
Notice. All notices shall be in writing and shall be sufficiently given and served upon the other party by hand delivery, first class mail, registered or certified, return receipt requested, postage prepaid, or by reputable overnight courier service, and addressed as follows:
(1) 
To the franchising authority:
Borough of Vandergrift
151 Lincoln Avenue
Vandergrift, PA 15690
Attn.: Borough Secretary/Manager
(2) 
To the grantee:
Comcast of California/Pennsylvania/Utah/Washington, Inc.
610 Epsilon Drive
Pittsburgh, PA 15238
Attn: Vice President/General Manager
(3) 
With a copy to:
Comcast
Northern Division
676 Island Pond Road
Manchester, NH 03109
Attn.: Vice President, Government Affairs
C. 
Descriptive headings. The captions to sections contained herein are intended solely to facilitate the reading thereof. Such captions shall not affect the meaning or interpretation of the text herein.
D. 
Severability. If any section, sentence, term, paragraph or provision hereof is determined to be illegal, invalid or unconstitutional by any court of common jurisdiction or by any state or federal regulatory authority having jurisdiction thereof, such determination shall have no effect on the validity of any other section, sentence, term, paragraph or provision hereof, all of which will remain in full force and effect for the term of the franchise.
E. 
Compliance with applicable laws and ordinances. The grantee shall at all times during the life of this ordinance be subject to all lawful exercise of the police power by the municipality. The municipality reserves the right to adopt from time to time, in addition to the provisions herein contained, such ordinances as may be necessary in the exercise of police power. Such regulation shall be reasonable and not in derogation of the rights herein granted, nor in conflict with the laws of the state or other local or federal laws or regulations.
F. 
Obscenity. The grantee and all other persons using or making use of the cable system shall comply in all respects with all federal and state laws regarding obscenity.