The city may grant one or more franchises in accordance with this article. No person may construct or operate a cable system in the city without a current and valid franchise granted by the city.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.15)
(a) 
A franchise authorizes use of the public rights-of-way for installing and maintaining cables, wires, lines, and other facilities to operate a cable system within the city, but does not expressly or implicitly authorize the franchisee to provide service to, install cables, wires, lines, or any other equipment or facilities upon private property without owner consent (except for use of compatible easements pursuant to 47 USC § 541(X)(2)), or to use publicly or privately owned utility poles or conduits without a separate agreement with the owners.
(b) 
A franchise is nonexclusive and will not expressly or implicitly preclude the issuance of other franchises to operate cable systems within the city or affect the city’s right to authorize use of public rights-of-way to other persons as it determines appropriate.
(c) 
A franchise conveys no property right to the franchisee or right to renewal other than as may be required by state or federal law.
(d) 
A franchise agreement constitutes a contract between the franchisee and the city once it is accepted by the franchisee. A franchisee contractually commits itself to comply with the terms, conditions and provisions of the franchise agreement and with all applicable laws, ordinances, codes, rules, regulations, and orders.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.16)
(a) 
A franchisee is subject to and must comply with all applicable local, city, state and federal laws, ordinances, codes, rules, regulations, and orders. A franchisee is also subject to the city’s police power in accordance with state law. Where the city has granted multiple franchises so as to establish the provision of cable service on a competitive basis, it shall be the obligation of each franchisee to operate its system so as to compete fairly.
(b) 
A franchisee or other person may not be excused from complying with any of the terms and conditions at this article or a franchise agreement by any failure of the city, upon one or more occasions, to require compliance or performance.
(c) 
The city may, on its own motion or at the request of an applicant or franchisee for good cause shown, waive any requirement of this article.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.17)
(a) 
The provisions of this article will apply to a franchise agreement as if fully set forth in the franchise agreement. The express terms of this article will prevail over conflicting or inconsistent provisions in a franchise agreement unless such agreement pre-dated the effective date of this article.
(b) 
The provisions of a franchise agreement will be liberally construed in order to effectuate its purposes and objectives consistent with this article and the public interest.
(c) 
A franchise agreement will be governed by and construed in accordance with state laws.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.18)
(a) 
An application must be filed with the city for grant of a new franchise, renewal of a franchise under either the formal or informal procedures in accordance with Section 626 of the Cable Act, 47 USC §546, modification of a franchise agreement, or a transfer of a franchise. An applicant has the burden to demonstrate compliance with all requirements of this article and of federal law.
(b) 
To be acceptable for filing, an application must be submitted in the number of copies required by the city, be accompanied by the application filing fee where required, conform to any applicable request for proposals, and contain all required information. All applications must include the names and addresses of persons authorized to act on behalf of the applicant with respect to the application.
(c) 
All applications accepted for filing must be made available by the city for public inspection. The city shall advertise the receipt of all accepted applications in accordance with standard procedure.
(d) 
An application for the grant of a new franchise may be filed only in response to a request for proposals issued by the city and publicly advertised. A person that desires to file an application may file a request with the city to issue a request for proposals. Such a request should indicate the nature of that person’s interest and why it is believed that the issuance of a new franchise would serve the public interest. An application which does not conform to the requirements of a request for proposals may be considered nonresponsive and returned.
(e) 
An application for the grant of a new franchise must contain at minimum the following information:
(1) 
Name and address of the applicant and the identification of the ownership and control of the applicant, including: the names and addresses of the ten largest holders of an ownership interest in the applicant, and all known persons with 5% or more ownership interest; the persons who control the applicant; all officers and directors of the applicant; and any other business affiliation and cable system ownership interest of each named person;
(2) 
An indication of whether the applicant, or any person controlling the applicant, or any officer or major stockholder of the applicant, has been adjudged bankrupt, and had a cable franchise revoked, or not renewed, or been found guilty by any court or administrative agency of a violation of a security or antitrust law, or a felony, or any crime involving moral turpitude; and if so, identification of any such person or entity and a full explanation of the circumstances;
(3) 
A demonstration of the applicant’s technical, legal and financial ability to construct and operate the proposed cable facility, including identification of key personnel;
(4) 
A description of applicant’s prior experience in cable or similar operations and identification of any other communities in which the applicant or its principals have, or had, a cable franchise or an interest therein, including the identification of any litigation involving any such franchisees and their franchising authorities;
(5) 
Identification of the area to be served by the cable system if the entire city is not being served;
(6) 
A detailed description of the physical facility proposed, including channel capacity, technical, technical design, performance characteristics, headend, and any access facilities to be provided;
(7) 
A description of the construction of the proposed system, including an estimate of above-ground and below-ground mileage and its location, the proposed construction schedule, a description, where appropriate, of how services will be converted from existing facilities to new facilities, and information on the availability of space on poles and conduits including, where appropriate, an estimate of the cost of rearrangement of facilities to accommodate such use;
(8) 
A description of the services to be provided initially;
(9) 
The proposed rate structure including charges for each service tier, installation, converters, and other equipment or services;
(10) 
A demonstration of how the proposal will reasonably meet the future cable-related needs and interests of the community, including a description of how the proposal will meet the needs described in any recent community needs assessment conducted for the city;
(11) 
Pro forma financial projections for the first five years of the franchise term, including statement of income, balance sheets, sources and uses of funds, and schedule of capital additions, with all significant assumptions explained in notes or supporting schedules;
(12) 
An affidavit of the applicant or authorized officer certifying the truth and accuracy of the information in the application, and acknowledging the enforceability of application commitments, and certifying that the proposal meets all federal and state requirements; and
(13) 
Any other information necessary to conform with the requirements of a request for proposals and information that the city may request of the applicant.
(f) 
An application for modification of a franchise must include, at minimum, the following information:
(1) 
The specific modification requested;
(2) 
The justification for the requested modification, including the impact of the requested modification on subscribers and others, and the impact on the applicant if the modification is not approved;
(3) 
A statement whether the modification is sought pursuant to Section 625 of the Cable Act, 47 USC §545, and, if so, a demonstration that the requested modification meets the legal standards of 47 USC § 545; and
(4) 
Any other information necessary for the city to make a determination.
(g) 
An application for renewal of a franchise must comply with the requirements of Section 4.124.
(h) 
An application for approval of a transfer of a franchise must comply with Section 4.125.
(i) 
To be acceptable for filing an application must be accompanied by a filing fee in the following amount, as appropriate:
(1) 
For a new franchise: $7,500.00.
(2) 
For a renewal of a franchise: $7,500.00.
(3) 
For a transfer of a franchise: $2,500.00.
(4) 
For modification of a franchise pursuant to 47 USC §545: $2,000.00.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.19)
(a) 
The city may grant a franchise for a period of time which the city council determines in its to discretion to best serve the public interest but not in excess of ten years.
(b) 
The city may make the grant of a franchise conditioned upon the completion of construction within a prescribed time or upon the performance of other specific obligations, specifying in the franchise agreement that failure to timely comply with the condition will cause the franchise to become null and void without further action by the city.
(c) 
In evaluating an application for a new franchise, the city shall consider the applicant’s character; the applicant’s technical, financial, and legal qualifications to construct and operate the proposed system; the nature of the proposed facilities, equipment, and services; the applicant’s record in other communities, if any; and whether the proposal will meet anticipated community needs and serve the public interest.
(d) 
Based upon the application, the written and oral testimony and other material presented at a public hearing before the council, and any other information relevant to the application, the council shall decide whether to grant or deny a franchise application. If two or more competing applications are filed in response to a request for proposals, the council shall grant the application which it considers to represent the highest and best bid in terms of the overall public interest. However, the council is not obligated to grant any application if it considers that the public interest is not served thereby.
(e) 
If the council grants a franchise application, the council and the applicant must agree on the terms of a franchise agreement within 90 calendar days from the date of the resolution making the grant. This period may be extended for a good cause by the council. If agreement is not reached with the council within 90 calendar days or if the period is not extended, the franchise grant will be null and void without further action by the city.
(f) 
The text of a proposed franchise agreement must be consistent with the requirements of this article and be made available by the city to the public and advertised as required by city procedure.
(g) 
After complying with the requirements of subsections (c) through (f) above, the council shall, follow a public hearing approve or disapprove the proposed franchise agreement by resolution.
(h) 
The grant of an initial franchise or a renewed franchise may be subject to a franchise acceptance fee in an amount not to exceed the city’s out-of-pocket costs in considering the application, less the amount of the filing fee. Within 30 calendar days of the date of the resolution approving the franchise agreement, the city must notify the approved applicant of the amount of any franchise acceptance fee and its method of calculation. If the franchise acceptance fee is not paid within 60 calendar days of the date of the council resolution approving the franchise agreement, the grant will be null and void. Prior to the franchise becoming effective, the approved applicant must demonstrate compliance with the surety, insurance and similar provisions of the franchise agreement.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.20)
(a) 
If the city grants a franchise to a municipal entity to provide cable service within the city, the provisions of this section shall also apply to such a franchisee.
(b) 
A municipal franchise entity shall be a corporate entity established under state law.
(c) 
A franchise agreement with a municipal entity shall not contain terms and conditions which, when considered in their totality, are unreasonably more favorable or less burdensome than those contained in an agreement between the city and a privately owned competitor. However, this provision is not intended to preclude the city from enforcing less favorable or more burdensome terms of a franchise agreement with a privately owned cable operator if those terms were freely and voluntarily agreed to by the private operator at the time the franchise agreement was executed.
(d) 
A municipal entity which provides utility service in addition to cable service shall take all reasonable precautions to ensure that its cable operations are not cross-subsidized by its utility operations. Among other things, the cable operations shall be conducted by a separate department which shall have its own books of account that carefully segregate all costs and revenues from utility operations. All costs directly attributed to cable operations, including any shared building and personnel costs, shall be borne by the cable department. The cable department shall also bear a fair share of all general overhead and indirect costs of the municipal entity according to an equitable formula.
(e) 
Relative to the television signals to be carried on the system of a municipal entity, that entity shall establish an independent citizens’ advisory committee which shall be responsible for selecting the identity of the signals. However, the municipal franchisee shall have the right to establish the selection parameters, such as the number of signals to be carried of each general type, and impose cost limits.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.21)
(a) 
Unless a franchise agreement specifies otherwise, the following insurance coverage shall be in force at all times during the franchise period: workman’s compensation insurance to meet all state requirements, and general comprehensive liability insurance with respect to the construction, operation and maintenance of a cable system, including the operation of motor vehicles, in the following minimum amounts:
(1) 
For bodily injury, including death, $1,000,000.00 for any one person, and $2,000,000.00 for any one accident;
(2) 
For property damage $1,000,000.00; and
(3) 
For damages resulting from a liability of any nature that may arise from or be occasioned by the operation of the cable system, including any communication over the cable system, excepting programming on government channels, $2,000,000.00.
(b) 
All insurance policies must be with sureties qualified to do business in Texas and in a form approved by the city attorney. The city may require in a franchise agreement coverage and amounts in excess of the above minimum.
(c) 
A franchise must, at its sole cost and expense, indemnify, hold harmless, and defend the city, 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 regardless of whether the act or omission complained of is authorized, allowed or prohibited by the franchise. This provision includes, but is not limited to, claims arising out of copyright infringements or a failure by the franchisee to secure consents from the owners, authorized distributors, or licensees of programs to be delivered by the cable system.
(d) 
The franchise agreement may require the franchisee to have in force at all times a performance bond or an irrevocable letter of credit in an amount as necessary to ensure the faithful performance by the franchisee of its obligation under the franchise agreement. Such surety instruments must be provided by an entity qualified to do business in the state and in a form approved by the city attorney.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.22)
(a) 
Prior to the franchise becoming effective, the city may require a franchisee to post a cash security deposit as specified in the franchise agreement to be used as a security and to ensure the faithful performance of all provisions of law and the franchise agreement and compliance with all orders, permits and directions of the city, and the payment by the franchisee of any claims, liens or taxes due the city which arise by reason of the construction, operation or maintenance of the system.
(b) 
The city shall place any such security deposit in an interest bearing account. The interest will accrue to the benefit of the franchisee but may not be withdrawn; all interest will be added to and become part of the original security fund during the term of the franchise.
(c) 
If a franchisee fails to pay the city any fees or taxes due, liquidated damages, damages, or costs or expenses incurred by the city by reason of any act or default of the franchisee, or if the franchisee fails to comply with any provision of the franchise agreement that the city reasonably determines can be remedied by an expenditure of the security fund, the city may, after ten calendar days notice to the franchisee, withdraw the amount with any interest from the security fund. Upon such withdrawal, the city shall notify the franchisee of the amount and date of the withdrawal.
(d) 
Within 30 calendar days after notice to it that an amount has been withdrawn by the city from the security fund, the franchisee must deposit a sum of money sufficient to restore the security fund to the original amount. If the franchisee fails to restore the security fund to the original amount within 30 calendar days, the entire security fund remaining may be forfeited, and/or such failure may be considered a material breach of this article and may be used as ground for revocation of the franchise.
(e) 
The security fund will become the property of the city in the event the franchise is revoked. The franchises is entitled to the return of the security fund that remains following termination of the franchise, less any outstanding default or unpaid amounts owed to the city by the franchisee.
(f) 
The rights reserved to the city with respect to the security fund are in addition to all other rights of the city whether reserved by this article or authorized by other law, and no action, proceeding or exercise of a right with respect to such security fund will affect any other right the city may have.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.23)
(a) 
The following minimum requirements for facilities and services apply to all franchises. The city may require that a franchise exceed these minimum requirements:
(1) 
A cable system franchised or refranchised after the effective date of this article must have a minimum capacity of 65 video channels available for immediate or potential use and have the capability for two-way communications.
(2) 
A cable system may be required to provide one or more access channels for public, educational or governmental access or reserve channels for future access use.
(3) 
A cable system must provide leased access channels as required by federal law.
(4) 
Service to public buildings may be required without charge as set forth in the franchise agreement.
(5) 
A cable system must provide an emergency override capability to allow city officials to transmit information to viewers on all channels in the event of a public emergency.
(b) 
The city may waive minimum requirements of this section where, in the judgment of the city, such waiver is justified in the public interest.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.24)
(a) 
Unless a franchise agreement provides otherwise, a franchisee, in consideration of the privilege granted under a franchise for the use of public rights-of-way to construct and operate a cable system, must pay to the city a maximum of 5% or a maximum allowed by law of the franchisee’s gross revenues derived from the operation of its cable system within the city during the period of its franchise. Franchisee fees are payable quarterly. A franchisee must pay the franchise fee due to the city for the preceding quarter within 30 calendar days of the end of that quarter.
(b) 
Any payment of franchise fees to adjust for a shortfall in the quarterly payments for the preceding year must be made no later than the filing date for the annual financial statements. Adjustments for any overpayment will be credited to subsequent quarterly payments.
(c) 
Unless a franchise agreement provides otherwise, franchisee fee payments shall be accompanied by a financial statement showing the gross revenues received by the franchisee, with separate subtotals for each type of service for which a separate charge is made, during the period covered by the payments and the number of subscribers served, with subtotals reflecting the number for each type of service, at the end of the period.
(d) 
A franchisee must file within three months of the end of its fiscal year the franchisee’s annual financial statements for the preceding year audited by a certified public accountant or certified as accurate by the franchisee’s chief financial officer. The franchisee will bear the cost of the preparation of such financial statements.
(e) 
The city may inspect and audit any and all books and records of the franchisee, and recompute any amounts determined to be payable under the franchise. The cost of the audit will be borne by the franchisee if the annual payment to the city is increased by more than 5% as result of the audit.
(f) 
In the event that a franchise payment is not received by the city on or before the due date, interest will be charged from the due date at an interest rate of 1½% per month. In addition the franchisee will pay a late charge of 5% of the amount of such payment. Interest and late charges will not be imposed for any payment necessary as a result of the yearly adjustment provided for in subsection (b) above, if the payment to correct for a shortfall does not exceed 10% of the total payments made during the year. In the event such payment exceeds 10% of the total payments made during the year, the franchisee will be liable for interest and late charges for the entire amount due.
(g) 
When a franchise terminates for whatever reason, the franchisee must file with the city within 90 calendar days of the date its operations cease, a financial statement, audited by a CPA or certified by the franchisee’s chief financial officer, showing the gross revenues received by the franchisee since the end of the previous fiscal year. Adjustments will be made at the time for franchise fees due to the date that the franchisee’s operations ceased.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.25)
(a) 
Within three months of the close of its fiscal year, a franchisee must file with the city an annual report that includes the following information:
(1) 
A summary of the previous calendar year’s activities in development of the system.
(2) 
A financial statement, including a statement of income, a balance sheet, and the number of subscribers it served at the end of the year. The statement shall include notes that specify all significant accounting policies and practices upon which it is based.
(3) 
A copy of updated maps depicting the location of all trunks where there was construction in the year of the report.
(4) 
If the franchisee is a corporation, a list of officers and members of the board and the officers and board members of any parent corporation; and where a parent corporation’s stock is publicly traded, a copy of its most recent annual report.
(5) 
A list of all partners or stockholders holding 5% or more ownership interest in the franchisee and any parent corporation. However, when any such entity has fewer than ten persons holding 5% ownership interest, the ten largest such holders.
(6) 
A copy of all the franchisee’s rules and regulations applicable to subscribers and users of the cable system.
(b) 
A franchisee must maintain a complete set of books and records available for inspection upon reasonable prior notice by the city during normal business hours.
(c) 
Upon written request of the franchisee and approval by the city attorney, information of a proprietary nature submitted to the city pursuant to this article or a franchise agreement will not be made available for public inspection, unless otherwise required to be made available pursuant to applicable law.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.26)
(a) 
A franchisee must maintain in the city a business office open during normal business hours with a listed local telephone number and employ a sufficient number of telephone lines to allow reasonable access by subscribers and members of the public. When the business office is closed, an answering machine or service capable of receiving service complaints and inquires must be employed.
(b) 
A franchisee must have available at all times personnel, equipment and procedures capable of locating and correcting major system malfunctions. Major system malfunctions must be corrected without delay. Corrective action for all other malfunctions must be initiated not later than the next business day after the subscriber service call is received, and must be completed as promptly as possible.
(c) 
A franchisee must provide each subscriber at the time cable service is installed written instructions for placing a service call, filing a complaint, or requesting an adjustment. Each subscriber must also be provided with a schedule of the subscriber’s rates and charges, a copy of the service contract, delinquent subscriber disconnect and reconnect procedures, and a description of any other of the franchisee’s policies in connection with its subscribers.
(d) 
A franchisee must maintain a complete record of service complaints received and action taken. These records must be open to the city for inspection during normal business hours. Such records must be retained for not less than two years.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.27)
(a) 
Unless approved by the city and to the extent consistent with federal law, no franchisee may in its rates or charges, or in the availability of the services or facilities of its system, or in any other respect, make or grant undue preferences or advantages to any subscriber or potential subscriber to the system, including preferences based on the geographic location of the subscriber, or to any user or potential user of the system, nor subject any such persons to any undue prejudice or any disadvantage.
(b) 
A franchisee must not deny cable service to any potential subscribers because of the income of the residents of the area in which the subscribers reside.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.28)
(a) 
A franchisee must utilize, with the owner’s permission, existing poles, conduits or such other facilities whenever possible. Copies of agreements for use of poles, conduits or other facilities must be filed with the city upon city request.
(b) 
All transmission lines, equipment and structures must be installed and located to cause minimum interference with the rights and reasonable convenience of property owners. The city may from time to time issue such reasonable rules and regulations concerning the installation and maintenance of the cable system installed in the public rights-of-way as may be consistent with this article and the franchise agreement.
(c) 
Suitable safety devices and practices as required by local, city, state and federal laws, ordinances, regulations and permits must be used during construction, maintenance and repair of a cable system.
(d) 
A franchisee must remove, replace or modify at its own expense the installation of any of its facilities within any public right-of-way when required to do so by the city to allow it to change, maintain, repair or improve a public thoroughfare.
(e) 
On streets and roads where electrical and telephone utility wiring are located underground, either at the time of initial construction or subsequently, the cable must also be located underground at the franchisee’s expense. Between a street or road and a subscriber’s residence, the cable must be located underground if the 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 over aerial installation.
(f) 
A franchisee must obtain any required permits before causing any damage or disturbance to public thoroughfares or private property as a result of its construction or operations and must restore to their former condition such private property and public thoroughfares, the latter in a manner approved by the city. If such restoration is not satisfactorily performed within a reasonable time, the city, or the property owner in the cases of private property, may, after prior notice to the franchisee, cause the repairs to be made at the expense of the franchisee.
(g) 
A franchisee may trim trees within public rights-of-way at its own expense as necessary to protect its wires and facilities, subject to any direction that may be provided by the city. Trees on private property may be trimmed with the consent of the property owner.
(h) 
At the request of any person holding a valid building moving permit and upon sufficient notice, the franchisee must temporarily raise, lower or cut its wires as necessary to facilitate such move upon not less than 72 hours advance notice. The direct expense of such temporary changes, including standby time, must be paid by the permit holder and the franchisee may require payment in advance.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.29)
(a) 
A franchisee must protect the privacy of all subscribers pursuant to the provisions of Section 631 of the Cable Act, 47 USC §551. A franchisee must not condition subscriber service on the subscriber’s grant of permission to disclose information which, pursuant to federal law, cannot be disclosed without the subscriber’s explicit consent.
(b) 
It is unlawful for any person to intercept or use any video, voice, or data signal transmissions over a cable system, unless such interception or use is authorized by the franchisee or other person having the lawful right to authorize the reception or use.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.30)
(a) 
Any cable system constructed within the city must meet or exceed technical standards consistent with this article, the franchise agreement, and the franchisee’s application. The system must meet all FCC technical standards and be capable of delivering all National Television Systems Committee (NTSC) color and monochrome standards signals and designed to provide superior picture quality and reliability. All television signals transmitted on a cable system must include any closed captioning information for the hearing impaired. Antennas, supporting structures, and outside plant used in the system must be designed to comply with the recommendations of the Electronics Industries Association on tower structures and outside plant.
(b) 
All construction, installation and maintenance must comply with the National Electric Code, and all state and local regulations, and good and accepted industry practices.
(c) 
At the stages of any construction specified in the franchise agreement, the franchisee must perform at its expense, proof of performance test designed to demonstrate compliance with the requirements of this article, the franchise agreement, and FCC requirements. The franchisee must provide the proof of performance test results promptly to the city.
(d) 
The city may require periodic proof of performance tests to be performed at the expense of the franchisee. The franchisee must provide the test results promptly to the city.
(e) 
The franchisee must advise the city when a proof of performance test is scheduled so that the city may have an observer present if it desires.
(f) 
A franchisee must not design, install or operate its facilities in a manner that will interfere with the signals of any broadcast station, the electrical system located in any building, the cable system of another franchisee, or individual or master antennas used for receiving television or other broadcast signals.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.31)
(a) 
The city has the right to apply any one or combination of the following remedies in the event a franchisee violates any provision of the law or its franchise agreement:
(1) 
Impose liquidated damages in such amount, whether per day, incident, or other measure of violation, as provided in the franchise agreement. Payment of liquidated damages by the franchisee will not relieve the franchisee of its obligation to meet the franchise requirements.
(2) 
Reduce the duration of the franchise on such basis as the city determines is reasonable pursuant to the process specified in Section 4.126.
(3) 
Revoke the franchise as provided for in Section 4.126.
(b) 
In determining which remedy or remedies are appropriate, the city must 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 city determines are appropriate.
(c) 
In addition to or instead of any other remedy, the city may seek legal or equitable relief from any court or competent jurisdiction.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.32)
(a) 
If a franchisee decides to initiate a formal franchise renewal process in accordance with Sections 626(a) through (g) of the Cable Act, being 47 USC §§ 546(a) through (g), it must notify the city within 30 to 36 months of the franchise expiration date. Upon such notification, or at the city’s own initiative, the city must commence the following process:
(1) 
The city shall review and evaluate the future cable-related community needs and interests and the franchisee’s past performance. The review and evaluation process must include opportunity for public comment.
(2) 
Immediately upon completion of the review and evaluation process, the city must provide a copy of its findings to the franchisee and provide notice that the franchisee may file a renewal application. Such notice must specify the information to be included in the renewal application and the deadline for filing the application, which must be no earlier than 30 calendar days following the date of the notice. If the franchisee does not submit a renewal application by the specified date, it will be deemed not to be seeking renewal of its franchise.
(3) 
Upon receipt of the renewal application, the city shall publish notice of its receipt and may schedule one or more public meetings or implement other procedures under which comments from the public on the application may be received.
(b) 
In considering a renewal application, the city must consider whether:
(1) 
The cable operator has substantially complied with the material terms of the existing franchise and with applicable law;
(2) 
The quality of the cable operator’s service, including signal quality, response to consumer complaints, and billing practices (but without regard to the mix, quality, or level of cable services or other services provided over the system) has been reasonable in light of community needs;
(3) 
The cable operator has the financial, legal and technical ability to provide the services, facilities, and equipment set forth in its proposal; and
(4) 
The cable operator’s proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests.
(c) 
The city council shall hold at least one public hearing to consider the application. An advisory committee or a committee of the council may make recommendations to the council prior to its consideration, a copy of which recommendations shall be made available to the franchisee in advance of the council’s consideration. Following the public hearing on the renewal application, the council must either:
(1) 
Pass a resolution agreeing to renew the franchise, subject to the negotiation of a franchise agreement satisfactory to the city and the franchisee; or
(2) 
Pass a resolution that makes a preliminary assessment that the franchise should not be renewed.
(d) 
The council’s action under subsection (c) above must be taken within four months of the date of the renewal application notice to the franchisee required in subsection (a)(2) above.
(e) 
If a preliminary assessment is made that a franchise should not be renewed, at the request of the franchisee or on its own initiative, the city must commence an administrative proceeding in accordance with Section 626(c) of the Cable Act, 47 USC § 546(c).
(f) 
The city shall commence an administrative proceeding, initiated by a hearing order which establishes the issues to be addressed in the hearing and the procedures to be followed and appoints a presiding officer for the hearing. Upon the completion of the hearing, the presiding officer shall issue a recommended decision. Parties to the hearing and the public shall have calendar days to comment on the recommended decision after its issuance.
(g) 
Based on the recommended decision, the comment and arguments presented, and other evidence of record, the council, following a public hearing, shall make a final determination on whether to grant or deny the renewal application. The council shall issue a written decision setting forth the reasons for its decision.
(h) 
The provisions of subsections (a) through (g) above notwithstanding, a franchisee may submit a proposal for renewal of a franchise in conformance with 47 USC §546(h). Before taking any action on such an informal proposal, the city must hold one or more public hearings or implement other procedures under which comments on the proposal from the public may be received. Following such public hearings or other procedures, the council shall determine whether the franchise should be renewed and the terms and conditions of any renewal. In making its determination the council shall not consider the pendency of any other application for a franchise.
(i) 
Once the council grants a renewal application, the city and the franchisee must agree on a franchise agreement, pursuant to the procedures specified in Section 4.111(e) through (h), before the renewal becomes effective.
(j) 
If renewal of a franchise is denied, the city may require the former franchisee to remove its facilities and equipment. If the former franchisee fails to do so within a reasonable period of time, the city may have the removal done at the former franchisees and/or surety’s expense.
(k) 
Notwithstanding 47 USC §546(a) through (h), any lawful action to revoke a cable operator’s franchise for cause shall not be negated by the subsequent initiation of renewal proceedings by the cable operator under this section. [47 USC §546(i)].
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.33)
(a) 
A transfer of a franchise must not occur without prior approval of the city.
(b) 
An application to transfer a franchise must meet the requirements of Section 4.110 and provide complete information on the proposed transaction, including details on the legal, character, financial, technical and other pertinent qualifications of the transferee, and on the potential impact of the transfer on subscriber rates. At minimum, the information required in Section 4.110(e)(1)through (4) must be provided by the proposed transferee. The information required in Section 4.110(e)(5) through (10) must also be provided whenever the proposed transferee expects material changes to occur in those areas.
(c) 
Final action on an application for transfer of a franchise must be taken by the city council. In making a determination on such an application, the council will consider the legal, financial, technical and character qualifications of the transferee to operate the system and whether operation by the transferee would adversely affect the cable service to subscribers or otherwise be contrary to the public interest.
(d) 
Approval by the city of a transfer of a franchise does not constitute a waiver or release of any of the rights of the city under this article or the franchise agreement.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.34)
(a) 
A franchise may be revoked by the city council for failure to construct as required, operate or maintain the cable system as required by this article or the franchise agreement or for other material breach of this article or the franchise agreement, including, but not limited to, a finding in a court of law that the franchisee has engaged in practices within the city that are in violation of federal or state antitrust laws. However, where the city has issued a franchise specifically conditioned upon the completion of construction or other specific obligation by a specified date pursuant to Section 4.111(b), failure of the franchisee to complete construction or comply with other specific obligation as required will result in the automatic forfeiture of the franchise without further action by the city, unless the city, at its discretion and for good cause demonstrated by the franchisee, grants an extension of time. If within 30 calendar days following written notice from the city to the franchisee that it is in material breach of this article of the franchise agreement, the franchisee has not taken corrective action or corrective action is not being actively and expeditiously pursued, the council, acting on its own motion or upon the recommendation of the city manager, may give written notice to the franchisee of its intent to consider revocation of the franchise or reducing its term, stating its reasons.
(b) 
Before final action can be taken, the council shall hold a public hearing at which time the franchisee and members of the public must be given an opportunity to present evidence and make argument. Following the public hearing, the council shall determine whether or not to revoke the franchise or reduce its term based on any recommended decision, the evidence and argument presented at the hearing, and other evidence of record. The council’s determination shall be reflected in a written opinion setting forth the reasons for its decision.
(c) 
Any franchise may, at the option of the city, be revoked 120 calendar days after as 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 120-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 article and the franchise agreement and has executed an agreement, approved by the court, having jurisdiction, assuming and agreeing to be bound by the terms, and conditions of the franchise.
(d) 
In the event of foreclosure or other judicial sale of any of the facilities, equipment or property of a franchisee, the city may revoke the franchise by serving notice upon 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 30 calendar days after serving such notice, unless:
(1) 
The city has approved the transfer of the franchise to the successful bidder; and
(2) 
The successful bidder has covenanted and agreed with the city to assume and be bound by the terms and conditions of the franchise.
(e) 
If the city 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 city may require the former franchisee to remove its facilities and equipment. If the former franchisee fails to do so with a reasonable period of time, the city may have the removal done at the franchisee’s and/or surety’s expense.
(2) 
If a cable system is abandoned by a franchisee, the city may sell, assign or transfer all or part of the assets of the system.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.35)
(a) 
It is the right of all subscribers to receive all available services from the franchisee as long as their financial and other obligations to the franchisee are satisfied.
(b) 
In the event of a termination or transfer of the franchise for whatever reason, the franchisee must do everything in its power to ensure that all subscribers receive continuous, uninterrupted service through the existing facilities unless the subscribers can reasonably be served by a competing cable operator. Where necessary, the franchisee must cooperate with the city to operate the system for a temporary period following termination or transfer as required to maintain continuity of service to all subscribers.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.36)
It is unlawful for any person to offer any gift, favor, loan, service, promise, employment or anything of value to a city official or employee, or for a city official or employee to solicit or accept any such thing of value, for the purpose of influencing the grant, modification, renewal, transfer, or any other matter affecting a franchise or the administration or enforcement of this article.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.37)
(a) 
Authority.
The authority for the regulation of basic service by the city is the Cable Television Consumer Protection and Competition Act of 1992 (“Cable Act of 1992”).
(b) 
Purpose.
The purpose of this section is to implement the rate regulation provisions of the Cable Act of 1992 and to administer Federal Communications Commission (FCC) requirements. Should the FCC modify the provisions of their rules and regulations, the city shall comply with and administer the modified rules and regulations.
(c) 
Rate Regulation Process.
(1) 
The cable operator has 30 days from the date of notification to submit schedules and supporting information. Justification will be provided on FCC form 193 (benchmark calculation). The cable operator may invoke a cost of service review on the grounds that its costs require higher rates than the benchmark allow.
(2) 
The city shall, within 30 days of receipt of the filing of the request, issue a written order that:
(A) 
Allows the proposed rates to take effect.
(B) 
Disallows the proposed rates.
(C) 
Extends the time to make a decision.
(i) 
If the cable operator is using benchmark rates, the extended time shall be 90 days.
(ii) 
If the cable operator is using cost of service, the extended time shall be 120 days.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.38)
(a) 
If requested by the city, applications for a franchise or franchise renewal shall include proposals for the provision of access channels sufficient to meet community needs during term of franchise as determined by city, and shall specify what grants, if any, it is willing to make for equipment and facilities to be used for local program production by cable access users.
(b) 
Any access channel operations must conform to the following minimum requirements:
(1) 
Access channels shall be carried on the franchisee’s lowest priced service offering.
(2) 
The franchisee shall have no control over the content of any programming carried on access channels. The city may require a franchisee, or select a nonprofit corporation or other entity, to manage the access program and to establish reasonable rules for the use of access channels consistent with the requirements of this article, the franchise agreement and the intended purpose of such channels. Such rules shall be subject to review and approval by the city.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.39)
Unless a franchise agreement specifies otherwise, it shall be the obligation of a franchisee to serve every area of the city and provide service to all residents who reasonably request service. In the event that the city limits are extended, a franchisee shall within six months thereof expand its system so as to serve the annexed area that has a minimum housing density of 30 dwelling units per cable mile that is not otherwise provided service by a cable system.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.40)
(a) 
The city may, upon the approval of the city council, acquire ownership of, and operate a cable system on behalf of itself or a municipal entity.
(b) 
If the city exercises its right to purchase a cable system pursuant to this article or a franchise agreement and the city and franchisee are unable to agree on a price for the purchase of the system, the price may be determined by arbitration. Upon written notice by either the city or the franchisee to the other, the dispute must immediately be put to arbitration consistent with the rules and procedures of the American Arbitration Association. The city and the franchisee will each select a qualified arbitrator. The two persons selected must select a third qualified arbitrator, and the three arbitrators will constitute a panel whose decision is binding on both parties. The fees of the last two arbitrators must be paid by the party selecting such person, and the third person must be compensated one-half by the city and one-half by the franchisee. The general costs of the proceeding must be shared equally by the city and the franchisee.
(c) 
Notwithstanding any other provisions of this article, the city reserves the right to exercise the power of eminent domain to acquire the property of any cable system of any franchisee and to purchase, own and/or operate such system so acquired consistent with state and federal law.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.41)
(a) 
The city may periodically evaluate the performance of a franchisee during the franchise term, including an evaluation of the picture quality and reliability of service rendered. A franchisee shall cooperate fully with this evaluation and supply the city with all relevant information requested and perform, if requested, any tests reasonably necessary to the evaluation of the system’s technical performance. If the city desires to implement a survey of subscribers in connection with its evaluation of service, a franchisee shall distribute the city’s questionnaire to its subscribers. Any meetings between the city and the franchisee for the purpose of evaluation shall be publicized in advance and open to the public.
(b) 
If evaluation indicates the need for modification to the franchise agreement, the city shall attempt to negotiate the necessary changes. The city shall issue a report to the council of the results of the performance evaluation and any recommended changes to the franchise agreement as negotiated with the franchisee.
(c) 
The council may hold a public hearing on any performance evaluation reports. Any franchise agreement modifications must be approved by the council before they become effective.
(d) 
If a performance evaluation results in a report that the performance of a franchisee is in material violation of its obligations under this article or the franchise agreement and the franchisee has failed to undertake adequate corrective measures, the city may initiate enforcement remedies pursuant to Section 4.123.
(1995 Code of Ordinances, Title IX, Chapter 93, Section 93.42)