Violations of the provisions of Sections
4.08.130,
4.08.160 and
4.20.140 shall constitute a misdemeanor. With the foregoing exceptions, a violation of the provisions of this title shall not constitute a misdemeanor, infraction or other crime.
(County code § 11-1.1201)
A. At the time of the issuance of any franchise under the provisions of this title, it will be impractical to reasonably ascertain the total extent of damages which may be incurred as a result of the breach by the grantee of its obligations under the franchise documents as prescribed by Section
4.44.030. The provisions of Section
4.44.030 shall apply in the event of a breach as liquidated damages therefor. Factors relating to the impracticality of ascertaining damages shall include, but are not limited to, the following:
1. The
facts that:
a. The primary damage resulting from breaches by the grantee of the schedules for the construction and extension of the cable communications system and provision of services prescribed by Sections
4.12.020 through
4.12.150, and of the duty prescribed pursuant to Sections
4.12.150 and
4.16.170, will be to members of the public who are denied services or denied quality or reliable services,
b. Such breaches cause inconvenience, anxiety, frustration and deprivation
of the benefits of the franchise to individual members of the general
public in subjective ways and in varying degrees of intensity which
are incapable of measurement in precise monetary terms,
c. That services might be available through the cable communications
system which are both necessary and available at a substantially lower
cost than alternative services, and the monetary loss resulting from
the denial of services or denial of quality or reliable services is
impossible to calculate in precise monetary terms, and
d. The termination of a franchise for such breaches and other remedies
is, at best, a means of future correction and not a remedy which makes
the public whole for past breaches;
2. The
fact that the failure of a grantee to make timely reports identifying
its progress in installing its cable communications system within
service areas will make it difficult in ways which are not measurable
for the city to administer the construction schedule, delay initiation
to enforcement proceedings and impede compliance with the periods
allowed for construction; and
3. The
fact that the failure of a grantee to file timely annual reports will
deny information necessary to enable the city to expeditiously, effectively
and efficiently administer the franchise and exercise its regulatory
powers in relation thereto for the promotion and protection of the
public convenience, health, safety and welfare.
B. Without the provisions of Section
4.44.030, the actual damages for which a grantee would be liable could greatly exceed the specified amount of liquidated damages. Therefore, the provisions of Section
4.44.030 are of benefit to a grantee.
(County code § 11-1.1202)
A. The city council shall assess a grantee, and the grantee shall be liable, for liquidated damages in the amount of one thousand dollars for each calendar day on which a grantee is in breach and for each breach of any of the provisions of any of the following: Sections
4.12.020 through
4.12.150; the time limitations prescribed pursuant to Section
4.12.210; or Section
4.16.170. Such liquidated damage sum shall be separately applicable to each calendar day of delay in complying with the provisions of Section
4.12.020(A)—
(E) and separately applicable for each calendar day of delay in complying with any of the provisions of Section
4.12.020. Such liquidated damage sum shall be separately applicable to each calendar day of delay in complying with each approval or the conditions thereof issued pursuant to the provisions of Section
4.12.050.
B. The city council shall assess a grantee, and the grantee shall be liable, for liquidated damages in the amount of five hundred dollars for each calendar day in excess of twenty calendar days the grantee is in breach of any of the provisions of Section
4.20.160.
(County code § 11-1.1203)
In addition to the liquidated damages set forth in Section
4.44.030, in its sole discretion, the city council may reduce the term of any franchise one calendar month for each cumulative thirty calendar days in excess of the first thirty calendar days a grantee is in breach of any of the provisions of Section
4.12.020. The purpose of this section is to authorize the city council, after a grantee has been in breach of the provisions of the section for the first thirty calendar days, to reduce the term of the franchise for subsequent delays caused by the grantee's breach on a month-to-month basis.
(County code § 11-1.1204)
A. The city finance director shall charge and transfer from the security fund established pursuant to Section
4.28.090 to th
e credit of the city such amounts as are assessed as liquidated damages by determinations of the city council pursuant to Section
4.12.230 which are not appealed to arbitration and become final, or which are affirmed by an arbitration panel under the provisions of Section
4.12.240.
B. With respect to breaches of any of the provisions of Sections
4.20.150 or
4.16.170, the city council shall determine the amount of liquidated damages to be assessed and mail notice thereof to the grantee. Such a notice may provide for assessments for breaches occurring in advance of the notice and for periods of breach subsequent to the issuance of the notice pending compliance by the grantee. The determinations by the city council shall become final, binding and conclusive, not subject to judicial review or reversal by any authority, and judicially enforceable, unless, within thirty calendar days following the date of the mailing of the notice of the determination, the grantee files with the city clerk a written notice appealing the determination to arbitration pursuant to the provisions of Section
4.44.060. The notice of appeal shall specifically identify the grounds for the appeal. The city finance director shall charge and transfer from the special account established pursuant to Section
4.28.090 to th
e credit of the city such amounts as are assessed as liquidated damages by determinations of the city council pursuant to this subsection which are not appealed to arbitration and become final, or which are affirmed by an arbitration panel under Section
4.44.060.
C. With respect to breaches of any of the provisions of Section
4.28.020 or
4.28.030, the city finance director shall charge and transfer from the special account established pursuant to Section
4.28.090 to th
e credit of the city such amounts as are assessed as franchise fees, interests and liquidated damages by determinations of the city council pursuant to Section
4.28.060 which are not appealed to arbitration and become final or which are affirmed by an arbitration panel under Section
4.28.060, or such amounts of franchise fees, interests and liquidated damages as are prescribed by a judgment of a court.
D. The city finance director shall mail notice to the grantee of transfers from the special account. The notice shall identify the amount of transfer, the balance of the account after transfer (including accumulated interest) and the total amount, if any, which the grantee is required to pay in order to replenish the account in accordance with the requirements of Section
4.28.090.
E. Any amount owing by a grantee in excess of the current balance within the special account established pursuant to Section
4.28.090 may be recovered from the surety on the performance bond filed pursuant to the provisions of Section
4.28.080 or from the grantee.
(County code § 11-1.1205)
A. With a request for arbitration proceedings conducted pursuant to the provisions of Section
4.44.050(B), the arbitration panel should be selected, the hearing scheduled within the time prescribed, notice given, the hearing conducted, a decision made and the costs divided in the manner prescribed by Sections
4.44.140 through
4.44.190. The questions which may be submitted to the arbitration panel and the jurisdiction of the arbitration panel shall be limited to the following:
1. The interpretation of the provisions of the franchise documents solely in relation to the decision required by subsection
B of this section; and
2. The
amount, if any, owing by the grantee.
B. The
grantee shall immediately pay any amount determined to be owing by
the arbitration panel.
C. The
arbitration award may be judicially enforced, shall be final, binding
and conclusive upon the parties, and shall not be subject to judicial
review or vacation, except on the grounds set forth in Section 1286.2
of the
Code of Civil Procedure of the state.
(County code § 11-1.1206)
Neither the reduction of the term of the franchise nor liquidated damages shall be the exclusive remedy for the types of breaches identified in Section
4.44.030. Neither the right to assess liquidated damages, nor the assessment of liquidated damages, nor the right to reduce, nor the reduction of the term of the franchise shall bar or otherwise limit the right of the city to obtain judicial enforcement of the grantee's obligations by means of specific performance, injunctive relief, mandate or other remedies at law or in equity, other than monetary damages.
(County code § 11-1.1207)
The following material breaches of the obligations of a grantee
under the franchise documents shall constitute grounds for the termination
of a franchise by the city:
A. Cumulative unexcused delays in excess of one hundred eighty calendar days in complying with the provisions of Section
4.12.020(C) or beyond the times prescribed pursuant to Section
4.12.210 in relation to Section
4.12.020(C);
B. The failure of a grantee to make any payment to replenish the security fund established under Section
4.28.090 within the time required by that section;
D. The
failure to make any disclosure of fact within the application for
the franchise which is required by this title, or a request for proposals,
or the misrepresentation of such a fact in the application;
E. The willful failure to make any payment required by Section
4.28.020; or
F. Any
other act or omission by the grantee which materially violates the
terms, conditions or requirement of the franchise documents, or any
other directive, rule or regulation issued thereunder and which is
not corrected or remedied within thirty calendar days following the
mailing to the grantee of written notice of the violation or within
such period beyond the thirty calendar days as is reasonable.
(County code § 11-1.1208)
A. The city council shall not determine that a franchise shall be terminated either upon grounds identified by Section
4.44.080 or pursuant to Section
4.08.110(K) until a hearing has been conducted upon the matter. Written notice of the time, date and place of the hearing shall be mailed to the grantee and to the grantee's surety on the performance bond filed pursuant to Section
4.28.080 not later than thirty calendar days in advance of the date of the commencement of the hearing. The notice shall state the reasons for the hearing, describe the basis for termination and identify the terms, conditions or requirements with respect to which the breach has occurred, if a breach is the basis for termination.
B. The
hearing may be conducted either by the city council or, at the sole
discretion of the city council, by a hearing officer appointed by
the city council to conduct the hearing. Any such hearing officer
shall be an attorney licensed to practice under the laws of the state.
C. The
cost of providing quarters for the hearing, the compensation for the
hearing officer, if any, and the per diem cost of any reporter retained
to record the proceedings shall be borne by the city. The cost of
preparing a transcript and record of the hearing shall be borne by
the grantee. All costs incurred by the parties for attorneys' fees,
expert witness fees and other expenses shall be borne solely by the
party incurring the costs.
(County code § 11-1.1209)
A. All
witnesses testifying at the hearing concerning termination shall be
sworn. Witnesses shall be subject to direct and cross examination.
However, formal rules of evidence applicable to the trial of civil
and criminal proceedings in the trial courts of the state shall not
be applicable to the hearing. The provisions of the Administrative
Procedure Act, commencing at Section 11500 of the
Government Code
of the state, or any successor legislative enactment, shall not be
applicable to any such hearing. The hearing may be continued from
time to time.
B. If the
hearing is conducted by a hearing officer, the officer, upon the conclusion
of the hearing, shall prepare a recommended decision which includes
findings of fact and conclusions. The recommended decision shall be
filed with the city clerk and mailed to the parties not later than
thirty calendar days after the conclusion of the hearing. Upon the
receipt of such a recommended decision, the city council, without
a hearing except as otherwise required as follows, may either:
1. Adopt
the recommended decision, including findings of fact and conclusions
submitted by the hearing officer;
2. Adopt
the findings of fact and conclusions contained in the recommended
decision, modify the decision and adopt the recommended decision as
so revised; or
3. Based
upon the record of the hearing, modify the findings of fact, conclusions
or decision and adopt the recommended decision as so revised.
C. If the
hearing is conducted by the city council, upon the conclusion of the
hearing, the city council shall adopt a decision which includes findings
of fact and conclusions.
D. If the decision by the city council is that there are grounds for the termination of the franchise and that the franchise should be terminated, the city council shall adopt a resolution which terminates the franchise and includes its decision. The effective date of the termination shall be such date as is prescribed by the city council, within its sole discretion, in the resolution, and the effective date may be made variable in relation to whether an appeal to arbitration is filed pursuant to Section
4.44.110.
(County code § 11-1.1210)
A. Not
later than thirty calendar days following the date of the mailing
to the grantee of the resolution of termination by the city council,
the grantee shall be authorized to appeal to arbitration the determination
to terminate the franchise. The appeal shall be taken by filing a
written notice thereof with the city clerk. The notice of appeal shall
state the specific reasons for the appeal and shall be accompanied
by a fee equal to the estimate by the city clerk of the cost of preparing
the transcript and record of the hearing. In the event the grantee
fails to file the notice of appeal with the accompanying fee within
thirty calendar days following the date on which a copy of the resolution
of termination was mailed to the grantee, the termination of the franchise
shall become final, binding and conclusive and not subject to review
or reversal by any authority. Judicial enforcement of the decision
may be sought.
B. Except as otherwise provided in this section, the arbitration panel shall be selected, the hearing scheduled within the time prescribed, notice given, the hearing conducted, a decision made and the costs divided in the manner prescribed by Sections
4.44.140 through
4.44.190.
C. The
questions which may be submitted to the arbitration panel and the
jurisdiction of the panel shall be limited to a decision as to whether
the evidence received during the hearing preceding the determination
by the city council established a basis for the termination of the
franchise and interpretation of the provisions of the franchise documents
solely in relation to the question of whether there was a basis for
termination. Under no circumstances shall the arbitration panel have
authority to be vested with jurisdiction to review, reverse or otherwise
nullify the exercise of discretion by the city council in terminating
the franchise if the panel determines there are grounds for termination.
D. The
hearing by the arbitration panel shall not be trial de novo, and no
new evidence shall be introduced, received or considered and the sole
function of the panel shall be to review the record of the hearing
preceding the decision by the city council to decide whether there
was substantial evidence in the record to support the findings and
to interpret the franchise documents in relation to the decision by
the city council. The city council's determination to terminate shall
be sustained by the arbitration panel if it finds that there is substantial
evidence in the record to sustain the determination and that the conclusions
are consistent with the provisions of the franchise documents. In
determining whether there is substantial evidence in the record to
support the findings, the panel shall conduct an independent review
of the evidence in the record and determine weight of the evidence
contained in the record. The panel shall not substitute its discretion
for that of the city council with respect to the determination to
terminate. If the panel decides that the determination by the city
council to terminate violates the provisions of the franchise documents,
the panel shall remand the matter to the city council for further
determination, reserving jurisdiction to review the determination.
However, such remand shall not include a duty to receive further evidence,
unless such evidence was initially offered and excluded during the
hearing preceding the city council's decision. Objections by the grantee
which were not presented during the hearing preceding the city council's
decision shall have been waived.
E. The
decision by the city council as affirmed by the arbitration award
may be judicially enforced, shall be final, binding and conclusive
upon the parties, and shall not be subject to judicial review or vacation,
except on the grounds set forth in Section 1286.2 of the Code of Civil
Procedure of the state to the extent such grounds are consistent with
the express terms of this title.
(County code § 11-1.1211)
Upon the final determination to terminate the franchise pursuant to Section
4.44.100 or
4.44.110, th
e city council, in its sole discretion, shall be authorized to purchase the property associated with the franchise as defined by Section
4.36.020. The purchase of the property shall be made in accordance with the standards, procedures and provisions set forth in Sections
4.36.010 through
4.36.140. No compensation shall be payable by the city or its assignee in relation either to the termination of the franchise or purchase of the property, except pursuant to and in accordance with Section
4.36.010 through
4.36.140.
(County code § 11-1.1212)
In the event a grantee fails to operate its cable communications
system for seven consecutive days without prior approval by the city
council and for reasons which are not beyond its control, the city,
through its officers, agents, employees or contractors, at its option,
may enter upon the premises of the grantee, occupy such premises and
property constituting the cable communications system, and operate
the system until such time as the grantee presents proof satisfactory
to the city council that the grantee is ready, willing and able to
renew the operation of the system. In operating the system, the city
or its contractor shall be authorized to contract in the name of the
grantee, incur expenses in the name of the grantee, and take any and
all other actions necessary to enable it to effectuate the purposes
of this section. The costs incurred by the city council in undertaking
such operation shall be a charge against the assets of the grantee,
and the city or its contractor shall be authorized to reimburse itself
for the costs incurred from revenues received during the period of
operation.
(County code § 11-1.1213)
Except as otherwise provided by this title, arbitration proceedings
of matters expressly made arbitrable under the provisions of this
title shall be conducted in compliance with the provisions of the
California Arbitration Act, commencing with Section 1280 of the Code
of Civil Procedure of the state.
(County code § 11-1.1214)
A. Each
arbitration panel shall be conducted by a panel of three arbitrators.
One arbitrator shall be appointed by the grantee, one arbitrator shall
be appointed by the city and the third arbitrator shall be the chairperson
of the panel and shall be appointed by the other two arbitrators.
If the other two arbitrators are unable to agree upon an appointment,
the third arbitrator shall be appointed by the presiding judge of
the superior court of the county. Each member of the arbitration panel
shall be an attorney licensed to practice within the courts of the
state. No member of the panel shall be an officer, employee or attorney
of any grantee, or any affiliate thereof, or of the city.
B. The
grantee and the city council shall each appoint its arbitrator and
mail notice to the other of its selection not later than fifteen calendar
days following the filing of a notice of appeal to arbitration or
the mailing of the initiation of arbitration. The third arbitrator
shall be appointed no later than thirty calendar days following the
filing of the notice of the appeal to arbitration or the mailing of
the initiation of arbitration.
(County code § 11-1.1215)
The chairperson of the arbitration panel shall select the site of the hearing, retain a stenographic reporter to report the hearing and, in consultation with the other members of the panel and the parties, schedule the hearing. The hearing shall be scheduled to commence not later than seventy-five calendar days following the filing of the notice of appeal to arbitration or the mailing of the initiation of arbitration. The chairperson of the panel shall mail written notice of the time, date and place of the hearing to the other two arbitrators, the grantee and the grantee's surety on the performance bond filed pursuant to the provisions of Section
4.28.080 not later than twenty calendar days in advance of the hearing.
(County code § 11-1.1216)
A. The
compensation and expenses of the arbitrator appointed by the grantee
shall be borne and paid solely by the grantee. The compensation and
expenses of the arbitrator appointed by the city council shall be
borne and paid solely by the city. The grantee and city shall each
bear and solely pay their own costs of attorneys' fees, expert and
other witness fees, and other expenses incurred in preparing and prosecuting
their respective cases. In proceedings where the record of a public
hearing of the city council is to be considered by the arbitration
panel, the costs of transcribing, typing and copying the record shall
be borne and paid solely by the grantee.
B. The compensation and expenses of the chairperson of the arbitration panel, rental, if any, for the place of the hearing, per diem costs of the stenographic reporter, costs of transcribing the typing of any transcripts of the arbitration hearing and any other costs of the arbitration proceeding not identified in subsection
A of this section shall be divided equally between, borne and paid by the grantee and the city. The arbitration panel shall not be empowered to order a division of costs, fees or expenses different from that prescribed by this section.
(County code § 11-1.1217)
The arbitration award shall be determined by a majority of the
members of the arbitration panel and shall be in writing. If it is
necessary for the panel to make determinations of fact, the panel
shall include findings of fact and conclusions with the award if requested
by any party to the proceeding. The award shall be issued and mailed
to the parties not later than ninety calendar days following the close
of the arbitration hearing.
(County code § 11-1.1218)
The arbitration panel shall have no authority to add to, delete or alter any provision of the franchise documents but shall limit its interpretation to the express terms of the franchise documents. Under no circumstances shall an arbitration panel be vested with authority or jurisdiction to determine or award monetary damages (by way of setoff, counterclaim, directly, or otherwise) or any other relief against the city, or its officers, agents or employees, except with respect to proceedings under Section
4.36.100 or
4.36.110 to determine the value of property and, in such instances, any of the property according to the expressed terms and standards of the franchise documents.
(County code § 11-1.1219)
No provision of this chapter shall bar the right of the city
to seek or obtain judicial relief from a violation of any provision
of the franchise documents or any rule, regulation, requirement or
directive promulgated thereunder. Neither the existence of other remedies
identified in this chapter nor the exercise thereof shall bar or otherwise
limit the right of the city to recover monetary damages (except where
liquidated damages are otherwise prescribed) for such violation by
the grantee, or judicial enforcement of the grantee's obligations
by means of specific performance, injunctive relief or mandate, or
any other judicial remedy at law or in equity.
(County code § 11-1.1220)