This article shall be known and may be cited as the “Sherman Cable Television Regulatory Ordinance.”
(1991 Code, sec. 7-1)
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Access channels.
Channels dedicated for public, educational and governmental use.
Additional services.
Programming or services for which an additional charge is made beyond the charge for basic subscriber services, including, but not limited to, movies, concerts, variety acts, sporting events, pay-per-view programs, interactive services, and any other service utilizing any facility or equipment of a cable television system operating pursuant to a franchise granted under this article.
Basic subscriber radio service.
Such audio services as the retransmission of broadcast FM radio signals, shortwave, weather, news, time and other similar audio services and the transmission of cablecast (nonbroadcast) radio signals as permitted by the FCC.
Basic subscriber television service.
(Definition to be taken from FCC report and order from the effective competition rulemaking, plus) as may be changed by the commission, Congress or other body having jurisdiction, provided that if the commission definition is repealed and not replaced by any such body, “basic subscriber television service” shall mean any service tier which includes the retransmission of local television broadcast signals.
Cable Act.
The Cable Communications Policy Act of 1984, P.L. 98-549, as may be amended.
Cablecast signals.
A nonbroadcast signal that originates within the facilities of the cable television system.
Cable television system, also referred to as “CATV system” or “system.”
A facility consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, and such upstream channels, and services as may be required by the ordinance or the franchise agreement, but such term does not include:
(1) 
A master antenna television system;
(2) 
A facility that serves only subscribers in one or more multiple-dwelling units under one (1) common ownership, control or management unless such facility or facilities uses any public right-of-way;
(3) 
A facility of a common carrier except that such facility shall be considered a cable system to the extent such facility is used in the transmission of video programming directly to subscribers; or
(4) 
Any facilities of any electric utility used solely for operating its electric utility systems.
Channel.
A six-megahertz (MHz) frequency band, which is capable of carrying either one (1) standard video signal, a number of audio, digital or other nonvideo signals or some combination of such signals.
Closed circuit service.
Video, audio, data and other services provided to government, educational and nonprofit and other not-for-profit community groups and organizations. These may include, but are not limited to, one-way video, audio or digital services among institutions or to residential subscribers to the extent such service does not violate any law or regulation governing the provision of such services.
Commercial subscriber.
A subscriber who receives a service in a place of business where the service may be utilized in connection with a business, trade or profession.
Converter.
An electronic device, which converts signals to a frequency not susceptible to interference within the television receiver of a subscriber, any channel selector which permits a subscriber to view all signals delivered at designated converter dial locations at the set or by remote control.
Depreciated value.
The value as shown on the grantee’s books and records of all the cable system’s assets after depreciation, which shall be calculated to the end of the grantee’s last fiscal year, with no value for goodwill, value of the city’s franchise, or value of going concern.
Discrete institutional channels.
Broadband communications channels dedicated to serving city, county, state or federal governmental agencies and educational institutions which can only be received by the institutions intended to receive signals on such channel.
Drop.
A coaxial connection from feeder cable to the subscriber’s television set, radio or other terminal.
Fair market value.
The price that a willing buyer would pay to a willing seller for a going concern based on the system valuation method prevailing in the industry at the time.
FCC.
The Federal Communications Commission and any legally appointed or elected successor.
Franchise.
The nonexclusive rights granted pursuant to this article to construct, operate and maintain a cable television system along the public ways within all or a specified area in the city. Any such authorization, in whatever form granted, shall not mean or include any license or permit required for the privilege of transacting and carrying on a business within the city as required by other ordinances and laws of the city.
Franchise agreement.
A franchise contract entered into voluntarily by the grantee, containing the specific provisions of the franchise granted.
Franchise area.
That portion of the city for which a franchise is granted under the authority of this article. If not otherwise stated in the franchise agreement, the franchise area shall be the corporate limits of the city including all territory thereafter annexed to the city.
Franchise fee.
The percentage, as specified by the city, of the franchisee’s gross annual revenues in exchange for the rights granted pursuant to this article and the franchise agreement.
Franchisee or grantee.
The natural person, partnership, domestic and foreign corporation, association, joint venture, or organization of any kind which has been legally granted a franchise by the city, and its lawful successor, transferee or assignee.
Grantor.
The city as represented by the council acting within the scope of its jurisdiction.
Gross annual revenues.
All revenues derived directly or indirectly by the grantee, its affiliates or subsidiaries from the operation of a cable television system in the city.
Initial service area.
The portions of the city which the grantee agrees to build in the franchise agreement.
Installation.
The connection of the system from a feeder cable to subscribers’ terminals.
Institutional discrete channels.
Broadband communications channels used to provide public, educational, and governmental services to qualified institutions.
Just cause.
That set of facts and circumstances which, in an individual case, a reasonable man would adjudge to be beyond the grantee’s reasonable control and which would, therefore, represent a justifiable basis for nonperformance, depending on the facts and circumstances arising from necessary utility delays or changes, rearrangements, power outages, the fulfillment of governmental or regulatory restrictions or requirements, national emergencies, uncontrollable material shortages, inability to obtain necessary easements, earthquakes, work stoppages and unauthorized strikes, or the elements and acts of God.
Monitoring.
Observing a communications signal, or the absence of a signal, where the observer is not a party to the communication, whether the signal is observed by visual or electronic means, for any purpose whatsoever.
Plant mile.
A linear mile of strand bearing cable as measured on the street or easement from pole to pole or pedestal to pedestal.
Public property.
Any real property owned by the city other than a highway, sidewalk, easement or dedication.
Public way.
The surface, the airspace above the surface, and the area below the surface of any public street, highway, lane, path, alley, sidewalk, boulevard, drive, bridge, tunnel, waterways, utility easements or other public right-of-way now or hereafter held by the city which shall entitle the city and the grantee to the use thereof for the purpose of installing, operating and maintaining the cable television system. Public way shall also include parks and parkways except to the extent limited by the dedication of the park to the city.
Reasonable notice.
Written notice addressed to the grantee at its principal office within the city or such other office as the grantee has designated to the city as the address to which notice shall be transmitted to it, which notice shall be certified and postmarked not less than ten (10) days prior to that day in which the party giving such notice shall commence any action which requires the giving of notice. In computing such ten (10) days, Saturdays, Sundays and holidays recognized by the city shall be excluded.
Resident.
Any person residing in the city as otherwise defined by applicable law.
Residential subscriber.
A subscriber who receives a service in an individual dwelling unit where the service is not to be utilized in connection with a business, trade or profession.
Sale.
Any sale, exchange or barter.
School.
Any public or nonprofit educational institution including primary and secondary schools, colleges, and universities, both public and private.
Service area.
The entire geographic area within the franchise territory.
Subscriber.
Any authorized person who elects to subscribe to, for any purpose, a service provided by the grantee by means of or in connection with the cable television system.
System facilities.
The cable system constructed for use within the city, without limitation, the headend, antenna, cables, wires, lines, towers, amplifiers, converters, health and property security systems, equipment or facilities located within the corporate limits of the city, designed, constructed or wired for the purpose of producing, receiving, amplifying and distributing by coaxial cable, fiber optics, microwave or other means, audio and visual radio, television and electronic signals to and from subscribers in the city and any other equipment or facilities located within the city intended for the use of the system; provided, however, such system facility excludes buildings, contracts, facilities and other equipment where primary use is for providing service to other system facilities located outside the city.
Transfer.
The disposal by the grantee, directly or indirectly, by gift, assignment, voluntary sale, merger, consolidation or otherwise, of ten (10) percent or more at one (1) time of the ownership or controlling interest in the system to a person or group of persons acting in concert, none of whom already own a percentage of the system.
Upstream signal.
A signal originating from a terminal to another point in the cable television system including video, audio or digital signals for either programs or other uses.
User.
A person or organization utilizing a channel or equipment and facilities for purpose of production and/or transmission of material, as contrasted with receipt thereof in a subscriber capacity.
Year.
The remaining portion of the year in which the franchise is granted. Thereafter, “year” means a full calendar year.
(1991 Code, sec. 7-2)
Except as otherwise provided, violations of this article are punishable as provided in section 1.01.009.
(1991 Code, sec. 7-3)
(a) 
The city finds that the development of cable television systems has the potential of having great benefit and impact upon the people of the city. Because of the complex and rapidly changing technology associated with cable television, the city further finds that the public convenience, safety and general welfare can best be served by establishing regulatory power which should be vested in the city or such persons as the city shall designate. It is the intent of this article and subsequent amendments to provide for and serve the public interest and public purposes in these matters, and any franchise issued pursuant to this article shall be deemed to include this finding as an integral part thereof.
(b) 
It is recognized that cable television systems have the capacity to provide not only entertainment and information services to the city’s residents, but also to provide a variety of broadband, interactive communications services to institutions and individuals. Many of these services involve city agencies and other public institutions by providing governmental, educational or healthcare communications.
(c) 
For these purposes, the following goals underlie the regulations contained herein and as may be authorized by the state and federal laws:
(1) 
Cable services should be provided to the maximum number of city residents.
(2) 
The initially constructed system should be capable of accommodating both the present and reasonably foreseeable future needs of the city.
(3) 
The system should be improved and upgraded during the franchise term so that new facilities necessary for the operation of this system shall be integrated to the maximum extent financially feasible with existing facilities.
(d) 
Notwithstanding any other provisions of this article to the contrary, the grantee shall at all times comply with all laws and regulations of the local, state and federal government or any such local, state and federal law or regulation that shall require the grantee to perform any service, or shall permit the grantee to perform any service or shall prohibit the grantee from performing any service. If, in compliance with any state or federal law, the grantee finds conflict with the terms of this or any law or regulation of the city, then as soon as possible following knowledge thereof, the grantee shall notify the city of the point of conflict believed to exist between such regulation or law and the laws or regulations of the city or this article.
(e) 
In any controversy or dispute under this article or the franchise agreement, the law of the state shall apply.
(1991 Code, sec. 7-4)
No person, whether or not a subscriber of the cable television system, may intentionally or knowingly cause to be damaged any wire, cable, conduit, equipment or apparatus of grantee, or commit any act with intent to cause such damage, or to tap, remove or tamper with or otherwise connect or maintain any wire or device to a wire, cable conduit, equipment and apparatus or appurtenances of grantee with the intent to obtain and maintain a signal or impulse from the cable television system without authorization from or compensation to the grantee, or to obtain and maintain cable television or other communications service with intent to cheat or defraud grantee of any lawful charge to which it is entitled.
(1991 Code, sec. 7-5)
Equal opportunity employment shall be afforded by all operators of cable television systems to all qualified persons and no person shall be discriminated against in employment because of race, religion, age, national origin, sex or physical handicap.
(1991 Code, sec. 7-116)
Whenever reasonably possible, all services, personnel, hardware and supplies for the construction, maintenance and operation of the system shall be procured locally.
(1991 Code, sec. 7-118)