(a) 
Franchise Required. No cable communications system shall be allowed to occupy or use the streets in the franchise area or be allowed to operate without a franchise in accordance with the provisions of this ordinance.
(b) 
Franchise Nonexclusive. Any franchise granted shall be nonexclusive. City specifically reserves the right to grant, at any time, such additional franchises for a cable communications system as it deems appropriate.
(c) 
Establishment of Franchise Requirements. The City may establish appropriate requirements for new franchises or franchise renewals, and may modify these requirements from time to time to reflect changing conditions and state of art in the cable industry. Such requirements shall not be retroactive to franchises then in effect, but shall become applicable when the franchise is renewed, or when Grantee's service area is expanded.
(d) 
Franchise Area. The City may grant a franchise for all or any defined portion of the City. The service area shall be the entire area defined in the franchise agreement. The initial service area shall be that portion of the franchise area scheduled to receive initial service, as stated in the franchise agreement.
(Prior code § 63002; added by Ord. No. 1407CCS, adopted 4/28/87)
Each application, for a franchise to construct, operate, or maintain any cable system in this City shall be filed with the City Clerk. An application shall include, but shall not be limited to, the following information:
(a) 
The name, address, and telephone number of the applicant.
(b) 
A detailed statement of the corporate or business entity organization of the applicant, including, but not limited to, the following and to whatever extent required by the City:
(1) 
The names, residence and business addresses of all officers, directors, and associates of the applicant.
(2) 
The names, residence and business addresses of all officers, persons, and entities having any share of the ownership of the applicant of 1% or more and the respective ownership share of each such person or entity.
(3) 
The names and addresses of any parent or subsidiary of the applicant, namely, any other business entity owning or controlling applicant in whole or in part or owned or controlled in whole or in part by the applicant, and a statement describing the nature of any such parent or subsidiary business entity including, but not limited to, cable systems owned or controlled by the applicant, its parent, and subsidiary and the areas served thereby.
(4) 
A detailed description of all previous experience of the applicant in providing cable television system service and in related or similar fields.
(5) 
A detailed and complete financial statement of the applicant, certified by an independent certified public accountant, for the fiscal year next preceding the date of the application hereunder, or a letter or other acceptable evidence in writing from a recognized lending institution or funding source, addressed to both the applicant and the Council, setting forth the basis for a study performed by such lending institution or funding source, and a clear statement of its intent as a lending institution or funding source to provide whatever capital shall be required by the applicant to construct and operate the proposed system in the City, or a statement from an independent certified public accountant, certifying that the applicant has available sufficient free, net, and uncommitted cash resources to construct and operate the proposed system in this City.
(6) 
A detailed financial plan (pro forma) describing for each year of the franchise, projected number of subscribers, rates, all revenues, operating expenses, capital expenditures, depreciation schedules, income statements, and a sources and uses of funds statement. All information is to be presented in the format required by City.
(7) 
A statement identifying, by place and date, any other cable system franchises awarded to the applicant, and any parent, or subsidiary corporation; the status of said franchises with respect to completion thereof; the total cost of completion of such franchised systems; and the amount of applicant's and its parent's or subsidiary's resources committed to the completion thereof.
(8) 
A statement identifying franchises owned or operated by applicant, its parent or subsidiary corporation, that have been revoked or licenses terminated by the Federal Communication Commission or franchising entity.
(c) 
A detailed description of the proposed plan of operation of the applicant which shall include, but not be limited to, the following:
(1) 
A detailed map indicating all areas proposed to be served, and a proposed time schedule for the installation of all equipment necessary to become operational throughout the entire area to be served.
(2) 
A statement or schedule setting forth all proposed classifications of rates and charges to be made against subscribers and all rates and charges as to each of said classifications, including installation charges and service charges.
(3) 
A detailed, informative, and referenced statement describing the actual equipment and operational standards proposed by the applicant.
(4) 
A copy of the form of any agreement, undertaking, or other instrument proposed to be entered into between the applicant and any subscriber.
(5) 
A detailed statement setting forth in its entirety any and all agreements and undertakings, whether formal or informal, written, oral, or implied, existing or proposed to exist, between the applicant and any person, firm, or corporation which materially relate or pertain to or depend upon the application and the granting of the franchise.
(d) 
A copy of any agreement covering the franchise area, if existing, between the applicant and any municipal utility or public utility subject to regulation by the California Public Utilities Commission providing for the use of any facilities of the public utility including, but not limited to, poles, lines, or conduits.
(e) 
Any other details, statements, information, or references pertinent to the subject matter of such application which shall be required or requested by the City, or by any other provision of law.
(Prior code § 63003; added by Ord. No. 1407CCS, adopted 4/28/87)
(a) 
Amount. Notwithstanding any other requirement of this Chapter, each applicant must furnish with its proposal a nonrefundable filing fee in the form of a certified or cashier's check made payable to the City of Santa Monica, in an amount as may be established by the City at the time of application. No proposal for a franchise shall be considered without receipt of said check.
(b) 
Deposit and Use. All checks received will be deposited to an account of the City and will serve to recover all expenses incurred by the City in the preparation and granting of a franchise, the execution of a franchise, and regulation of a franchise pursuant to this Chapter. Said expenses shall include, but not be limited to, any and all administrative, engineering, publication, or legal costs, and consultant's expenses, incurred in connection with the processing, evaluation, and preparation of documents relating to the franchise.
(c) 
Additional Fee. In the event that expenses exceed the total amount of filing fees collected from the applicants, an applicant awarded a franchise shall pay to the City the excess amount.
(Prior code § 63004; added by Ord. No. 1407CCS, adopted 4/28/87)
(a) 
Solicitation of Proposals. The City may, by advertisement or any other means, solicit and call for applications for cable system franchises, and may determine and fix any date upon or after which the same shall be received by the City, or the date before which the same must be received, or the date after which the same shall not be received, and may make any other determinations and specify any other times, terms, conditions, or limitations respecting the soliciting, calling for, making, and receiving of such applications. The terms and conditions for application shall be described in a document called "Request for Proposals."
(b) 
Compliance with City Requirements. Any person submitting a proposal for a cable system in response to the City's Request for Proposals shall provide all information required by this Chapter and all other information requested by the City's Request for Proposals or otherwise required by City. Each proposal shall be responsive to the questions soliciting the information, and shall completely, accurately, and materially supply all of the information so solicited. Any misrepresentation, failure, neglect, or refusal to provide any of such information may, at the discretion of City, render a proposal invalid. The requested information must be complete and verified as true by the applicant.
(c) 
Property of City. All proposals received by the City from an applicant shall become the sole property of City and shall become public documents.
(d) 
Applicant Responsibility. Before submitting a proposal, each applicant shall be solely responsible for and must:
(1) 
Be familiar with local conditions that may in any manner affect performance under the franchise, including, but in no event limited to, community and institutional telecommunication needs, relevant demographics, topographics, pole attachment policies of appropriate utility authorities, undergrounding, and subscriber desires.
(2) 
Be familiar with federal, state, and local laws, ordinances, rules, and regulations affecting performance under the franchise.
(3) 
Carefully correlate and relate all information and observations with the requirements of this Chapter and the Request for Proposal documents.
(e) 
Referral to City Manager. Upon receipt of any application for franchise, the City Manager shall prepare and submit a report to the City Council which includes recommendations respecting such application. The City will evaluate all proposals that have complied with its requirements. All applicants that have met the City's qualifications in the Request for Proposals and have submitted proposals on the required forms will be offered the opportunity to make a formal presentation to the City Council in support of their applications.
(f) 
Investigations. The City may make such investigations as it deems necessary to determine the ability of the applicant to perform under the franchise, and the applicant shall furnish to the City all such information and data for this purpose as the City may request. The City reserves the right to reject any proposal if the evidence submitted by, or investigation of such applicant fails to satisfy the City that such applicant is properly qualified to carry out the obligations of the franchise agreement, comply with the provisions of this Chapter, or to satisfactorily construct and operate the system. Proposals that modify or place conditions upon requirements stated in the City's Request for proposals may be rejected by the City.
(g) 
Rejection. The City may reject any and all applications from whatever source and whenever received and the City also reserves the right to waive any or all requirements where the best interests of the City may be served, and may, if it so desires, request new or additional proposals.
(h) 
Public Comment. If, upon receiving the City Manager's report, the City Council shall determine to further consider the application, it shall pass a resolution setting a public hearing for the consideration of applications, fixing and setting forth a day, hour, and place certain when and where any persons having any interest therein or objections may file written comments and appear before the City Council and be heard, and directing the City Clerk to publish said resolution at least once within 10 days of the passage thereof in a newspaper of general circulation within the City.
(i) 
Consideration. In making any determination hereunder as to any application for a new franchise, the City Council may consider factors including, but not limited to, the quality of the service proposed, income to the City, experience, character, background, and financial responsibility of any applicant, and its management and owners, technical and performance quality of equipment, willingness and ability to meet construction and physical requirements, to meet all requirements set forth in this Chapter, and to abide by all purpose and policy conditions, franchise limitations and requirements, and any other considerations deemed pertinent by the City Council for safeguarding the interests of the City and the public.
(j) 
Determination. At the time set for the hearing, or at any adjournment thereof, the City Council shall proceed to hear all protests. The City Council shall then make one of the following determinations:
(1) 
That such application be denied, which determination shall be final and conclusive.
(2) 
That such franchise be granted upon such terms and conditions as City Council may establish.
(k) 
Additional Information. The City Council may at any time demand, and applicants shall provide, such supplementary, additional, or other information as the City Council may deem reasonably necessary to determine whether the requested franchise should be granted.
(l) 
Awards Based on Merit. It is the intention of the City to award any cable franchise on the basis of merit of proposals. To this end, any communications with City Councilmembers by those wishing to submit proposals for a cable franchise should be limited to public sessions. Requests for information should be directed to the City Manager.
(m) 
City Council Decisions Final. Any decision of the City Council concerning selection of a franchise pursuant to this Chapter shall be final.
(Prior code § 63005; added by Ord. No. 1407CCS, adopted 4/28/87)
(a) 
Successful applicants chosen by the City Council will be granted the right and privilege to construct, erect, operate, and maintain in, upon, along, across, above, over, and under the streets, alleys, public ways, and public places now laid out or dedicated and all extensions thereof, and additions thereto, in the City poles, wires, cables, underground conduits, manholes, and other cable conductors and fixtures necessary for the maintenance and operation in the City of Santa Monica of a cable system, to be used for the sale and distribution of cable services to the residents of the City.
(b) 
Any privilege claimed under any such franchise by the Grantee in any street or other public property shall be subordinate to any prior lawful occupancy of the streets or other public property.
(c) 
Insofar as it is not inconsistent with or otherwise preempted by Federal or State regulations, the City Council retains all authority to regulate all telecommunications services provided by a Grantee to the extent necessary to assure the delivery of proposed services, if any, and that such services are in compliance with all regulatory provisions of this Chapter and other applicable laws.
(Prior code § 63006; added by Ord. No. 1407CCS, adopted 4/28/87)
The renewal of any franchise granted pursuant to this Chapter shall be subject to the terms of applicable law and to such terms and conditions as may be established by the City.
(Prior code § 63007; added by Ord. No. 1407CCS, adopted 4/28/87)
For the purpose of operating and maintaining a cable communications system in the franchise area, and subject to the provisions of Section 6.108.10.110 herein, the Grantee may erect, install, construct, repair, replace, reconstruct, and retain in, on, over, under, upon, across, and along the public streets and ways within the franchise area such wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments, and other property and equipment as are necessary and appurtenant to the operation of the cable communications system. Prior to construction or alteration, however, Grantee shall in each case file plans with the appropriate City agencies and local utility companies, and receive written approval before proceeding. Grantee shall in any event comply with all applicable City construction codes and procedures.
(Prior code § 63008; added by Ord. No. 1407CCS, adopted 4/28/87)
The term of any franchise and all rights, privileges, obligations, and restrictions pertaining thereto shall be as specified in the franchise agreement unless terminated sooner as hereinafter provided. The effective date of the franchise shall be the date of execution of the franchise agreement by City, subject to prior execution by Grantee. In no event shall the term of any franchise exceed 20 years.
(Prior code § 63009; added by Ord. No. 1407CCS, adopted 4/28/87)
(a) 
Transfer of Franchise. Any franchise granted hereunder shall be a privilege to be held for the benefit of the public. Said franchise cannot in any event be sold, transferred, leased, assigned, or disposed of, including, but not limited to, by force or voluntary sale, merger, consolidation, receivership, change of management, or other means without the prior written consent of City, expressed by City Council resolution, and then only under such conditions as City may establish. City consent shall not be unreasonably withheld.
(b) 
Ownership and Control. Grantee shall promptly notify in writing City of any proposed change in, or transfer of, or acquisition by any other party of, control of Grantee. The word "control" as used herein is not limited to major stockholders, but includes actual working control in whatever manner exercised. A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or transfer by any person or group of persons of 10% or more of the beneficial ownership interest of Grantee. Every change, transfer, or acquisition of control of Grantee shall make the franchise subject to cancellation unless and until City shall have consented thereto. For the purpose of determining whether it shall consent to such change, transfer, or acquisition of control, City retains the right to request such information as it deems appropriate to determine the prospective party's qualifications, and Grantee shall assist City in any such inquiry.
(c) 
Grantee Responsibility. In seeking City's consent to any change in ownership or control, Grantee shall have the responsibility:
(1) 
To show to the satisfaction of City whether the proposed purchaser, transferee, or assignee which shall include all officers, directors, and all persons having a legal or equitable interest in 5% or more of its voting stock:
(i) 
Has ever been convicted or held liable for acts involving moral turpitude including, but not limited to, any violation of Federal, State, or local law or regulations, or is presently under an indictment, investigation, or complaint charging such acts.
(ii) 
Has ever had a judgment in an action for fraud, deceit, or misrepresentation entered against it, her, him, or them by any court of competent jurisdiction.
(iii) 
Has pending any legal claim, lawsuit, or administrative proceeding arising out of or involving a cable system.
(2) 
To establish, to the satisfaction of City, the financial capability of the proposed transferee to operate the franchised system, based on the proposed transferee's aggregate financial commitments and resources. City may request, and Grantee shall provide, all reasonable financial data relative to the transfer.
(3) 
To establish to the satisfaction of City that the capability of the proposed transferee is such as shall enable it to maintain and operate the cable system for the remaining term of the franchise under the existing franchise term, and, upon City request, to provide adequate security for this purpose.
(d) 
The Grantor agrees that any financial institution having a pledge of the franchise or its assets for the advancement of money for the construction and/or operation of the franchise shall have the right to notify the Grantor that it or its designee satisfactory to the Grantor will take control and operate the cable communications system, in the event of a Grantee default in its financial obligations. In such event, the financial institution shall submit a plan for operation that will insure continued service and compliance with all franchise requirements during the term the financial institution exercises control over the system. The financial institution shall not exercise control over the system for a period exceeding one year unless extended by the Grantor in its discretion and during said period of time it shall have the right to petition the Grantor to transfer the franchise to another Grantee. If the Grantor finds that such transfer, after considering the legal, financial, character, technical, and other public interest qualifications of the applicant are satisfactory, the Grantor shall transfer and assign the rights and obligations of such franchise as in the public interest. The consent of the Grantor to such transfer shall not be unreasonably withheld.
(e) 
Consent to Transfer Subordinate to City's Other Rights. The consent or approval of City to any transfer of the franchise shall not constitute a waiver or release of the rights of City in and to the streets, and any transfer shall by its terms, be expressly subordinate to the terms and conditions of the franchise.
(f) 
Necessity for Completion of Construction. In the absence of extraordinary circumstances, City shall not approve any transfer or assignment of the franchise prior to completion of construction of the proposed system.
(g) 
Right to Purchase Cable System. The franchise agreement shall provide the terms and conditions under which the City has the right to purchase the cable system, if and when it is placed on the market for sale.
(h) 
Successor in Interest. In no event shall a transfer of ownership or control be approved without the successor in interest becoming a signatory to the existing franchise agreement, or a modified franchise agreement approved by City.
(Prior code § 63010; added by Ord. No. 1407CCS, adopted 4/28/87)
In accepting a franchise, Grantee acknowledges that its rights hereunder are subject to the police powers of City to adopt and enforce general ordinances necessary to the safety and welfare of the public; and it agrees to comply with all applicable general laws and ordinances enacted by City pursuant to such power.
Any conflict between the provisions of this ordinance and any other present or future lawful exercise of City's police powers shall be resolved in favor of the latter, except that any such exercise that is not of general application in the jurisdiction or applies exclusively to any cable communications system franchise which contains provisions inconsistent with this ordinance shall prevail only if upon such exercise City finds any emergency exists constituting a danger to health, safety, property, or general welfare of such exercise if mandated by law.
(Prior code § 63011; added by Ord. No. 1407CCS, adopted 4/28/87)
(a) 
Annual Franchise Payment. A Grantee of a franchise hereunder shall pay to City an annual fee in an amount as designated in the franchise agreement. Such payment shall be in addition to any other prescribed fees, including, but not limited to, business license and permit fees, and shall commence as of the effective date of the franchise. City, upon request, shall be furnished a statement, either audited and certified by an independent Certified Public Accountant or certified by a financial officer of Grantee, reflecting the total amounts of gross revenues and all payments, deductions and computations for the period covered by the payment. City shall have the right to conduct an independent audit of Grantee's records, and if such audit indicates a franchise fee underpayment of 2% or more, Grantee shall assume all reasonable costs of such an audit.
(b) 
Acceptance by City. No acceptance of any payment by Grantee shall be construed as a release or as an accord and satisfaction of any claim City may have for further or additional sums payable as a franchise fee under this ordinance or for the performance of any other obligation of the Grantee. All amounts paid shall be subject to audit and recomputation by City.
(c) 
Payment Schedule. Franchise fee payments shall be made in accordance with the schedule indicated in the franchise agreement.
(d) 
Franchise Fee Itemization. Any Grantee "pass through" or itemization of franchise fee costs on subscriber's bills shall be in accordance with Federal law.
(e) 
Failure to Make Required Payment. In the event that any franchise payment or recomputed amount is not made on or before the dates specified in the franchise agreement, Grantee shall pay as additional compensation:
(1) 
An interest charge, computed from such due date, at an annual rate equal to the maximum interest rate which could lawfully be charged by a private lender in effect upon the due date.
(2) 
A sum of money equal to 5% of the amount due in order to defray those additional expenses and costs incurred by City by reason of delinquent payment.
(Prior code § 63012; added by Ord. No. 1407CCS, adopted 4/28/87)