A. 
Any person may apply for an initial franchise by submitting an application therefor on that person's own initiative, or in response to a request for proposals issued by City. If the City receives an unsolicited application, it may choose to issue a request for additional proposals, and require the applicant to amend its proposal to respond thereto.
B. 
An application must be filed for an initial cable system franchise. All applications under the provisions of this chapter shall be in writing and shall be filed in the Office of the City Clerk. These requirements do not apply to a renewal proposal submitted pursuant to 47 U.S.C. Section 546(h) as may be amended.
C. 
1. 
The City Manager may specify the information that must be provided in connection with an application, and the form in which the information is to be provided.
2. 
At a minimum, each application must identify the applicant, show that the applicant is financially, technically and legally qualified to construct, maintain and repair the cable system, and show that the applicant is willing to comply unconditionally with this chapter and its franchise obligations. In addition, any application for an initial franchise must describe in detail the cable system that the applicant proposes to build or maintain, show where it is or will be located, set out the system construction schedule, show that the applicant will provide adequate channels, facilities and other support for public, educational and government use (including institutional network use) of the cable system, and include a pro forma showing capital expenditures and expected income and expenses for the first five years the applicant is to hold the franchise. To be accepted for filing, an original and six copies of a complete application must be submitted. All applications shall include the names and addresses of persons authorized to act on behalf of the applicant with respect to the application.
3. 
The City may at any time demand, and applicant 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. An applicant shall respond to any request for information from the City, by the time specified by the City.
D. 
An application may be rejected if it is incomplete, or if the response to requests for information is not timely and complete.
E. 
The City may conduct such investigations as are necessary to act on an application.
F. 
Before taking final action on an application, the City shall conduct a public hearing in accordance with applicable state and Federal law.
G. 
In determining whether to grant a franchise, the City may consider:
1. 
Where the applicant has not previously held a cable system franchise in the City, whether the applicant's record in other communities indicates that it can be relied upon to provide high-quality service throughout any franchise term;
2. 
Whether the applicant has the financial, legal, and technical ability to provide the services, facilities, and equipment set forth in an application, and to satisfy any minimum requirements established by the City;
3. 
Whether the applicant's application is reasonable to meet the future cable-related needs and interests of the City, taking into account the cost of meeting such needs and interests;
4. 
Whether issuance of a franchise is warranted in the public interest considering the immediate and future effect on the public right-of-way, public property, and private property that will be used by the applicant's cable system;
5. 
Whether the applicant has proposed to provide adequate facilities, equipment, channels and other support for PEG use of the cable system;
6. 
Such other matters as the City is authorized or required to consider.
H. 
If the City determines that issuance of a franchise would be in the public interest considering the factors described in this section, it may offer a franchise to the applicant.
I. 
Within thirty-one days after the effective date of the ordinance awarding a franchise, or within such extended period of time as the City Council in its discretion may authorize, the successful applicant or franchisee shall file with the City Clerk an unconditional written acceptance, in form satisfactory to the City Attorney, of the franchise, together with an agreement to be bound by and to comply with all applicable provisions of the City Charter, this chapter, and the franchise. Such acceptance and agreement shall be acknowledged before a notary public and shall in form and content be satisfactory to and approved by the City Attorney.
(Ord. 649-05, 2005)
A. 
This section establishes provisions that apply to applications for renewal governed by 47 U.S.C. Section 546(a) through (h) as may be amended.
B. 
A franchisee that intends to exercise rights under 47 U.S.C. Section 546(a)-(h) as may be amended shall submit a notice in writing to the City in a timely manner clearly stating that it is activating the procedures set forth in those sections. The City shall thereafter commence any proceedings that may be required under Federal law, and upon completion of those proceedings, the City may issue a request for proposals and an application may be submitted for renewal. The City may preliminarily deny the application by resolution, and if the application is preliminarily denied, the City may conduct such proceedings and by resolution establish such procedures and appoint such individuals as may be necessary to conduct any proceedings to review the application.
(Ord. 649-05, 2005)
A. 
This section establishes provisions that apply to applications for transfer approval.
B. 
An application for transfer must contain all the information required by Section 15.28.510(C)(2), by the franchise ordinance, the FCC Form 394 or successor form, and any other information that it is required to file under applicable Federal or state law.
C. 
Subject to limitations under applicable law, in determining whether a transfer application should be granted, denied, or granted subject to conditions, the City may consider the legal, financial, and technical qualifications of the transferee to operate the cable system; any potential impact of the transfer on subscriber rates or services; whether the incumbent cable operator is in compliance with its franchise; whether the transferee owns or controls any other cable system in the City; whether the transfer may eliminate or reduce competition in the delivery of cable service in City; and whether operation by the transferee or approval of the transfer would otherwise adversely affect subscribers, the public, or the City's interest under this chapter, the franchise, or other applicable law. The proposed transferee shall pay all reasonable costs incurred by the City in reviewing and evaluating the applications.
D. 
No application for a transfer of a franchise shall be granted unless the transferee agrees in writing that it will abide by and accept all terms of this chapter and the franchise, and all noncompliance issues have been resolved, or preserved to the satisfaction of the City. Notwithstanding the foregoing, if the nature of the transfer is a such that the franchisee will not change (i.e., a change of control), transferee shall not have the obligation to accept the ordinance or franchise or assume the obligations of the franchisee, provided that:
1. 
The franchisee unconditionally reaffirms that it will abide by and accept the terms and conditions of this chapter, the franchise and any additional agreed upon terms and conditions that are needed to ensure compliance by the franchisee with such franchise agreement, in light of the franchisee's performance history;
2. 
The franchisee reaffirms that it remains responsible for all of its obligations and liabilities, known and unknown under the franchise and applicable law;
3. 
The ultimate entity that will own and control the franchisee, or an intermediate entity in the ownership chain above the franchisee that has verifiable and satisfactory financial statements demonstrating sufficient assets, provides a guarantee of the franchisee's full and faithful performance of all franchise obligations.
(Ord. 649-05, 2005)
A. 
1. 
The applicant must be willing to comply with the provisions of this chapter and applicable laws; and to comply with such requirements of a franchise as the City may lawfully require.
2. 
The applicant must not have had any cable system or OVS franchise revoked by the City within three years preceding the submission of the application. If franchisee challenges a revocation, it may not apply while the appeal is pending, or for three years after the final resolution of the appeal if the revocation is valid.
3. 
The applicant may not have had an application to the City for an initial or renewal cable system franchise denied on the ground that the applicant failed to propose a cable system meeting the cable-related needs and interests of the community, or as to which any challenges to such franchising decision were finally resolved (including any appeals) adversely to the applicant, within three years preceding the submission of the application; and may not have had an application for an initial or renewal OVS franchise denied on any ground within three years of the application. This restriction may be waived or good cause, or otherwise at the City's discretion.
4. 
The applicant shall not be issued a franchise if, at any time during the ten years preceding the submission of the application, applicant was convicted of fraud, racketeering, anti-competitive actions, unfair trade practices or other conduct of such character that the applicant cannot be relied upon to deal truthfully with the City and the subscribers, or to substantially comply with its obligations.
5. 
Applicant must have the necessary authority under California and Federal law to operate a cable system, or show that it is in a position to obtain that authority.
6. 
The applicant shall not be issued a franchise if it files materially misleading information in its application or intentionally withholds information that the applicant lawfully is required to provide.
7. 
For purposes of subsections (A)(2) through (4) of this section, the term applicant includes any entity that owned or controlled the applicant at the time of such adverse action, any affiliate of the same entity, or its lawful successors or assigns.
B. 
Notwithstanding anything in this section to the contrary, an applicant shall be provided a reasonable opportunity to show that a franchise should issue even if the requirements of anything in this section are not satisfied, by virtue of the circumstances surrounding the matter and the steps taken by the applicant to cure all harms flowing therefrom and prevent their recurrence, the lack of involvement of the applicant's principals, or the remoteness of the matter from the operation of a cable system.
(Ord. 649-05, 2005)
A cable system operator shall pay to the City a franchise fee in an amount equal to five percent of gross revenues, or the maximum amount permitted by law, which ever is greater.
(Ord. 649-05, 2005)
A franchisee may not directly or indirectly require a subscriber or a building owner or manager to enter into an exclusive contract as a condition of providing or continuing cable service. A franchisee must provide service on a month to month basis, however, nothing in this section prevents a franchisee from entering into a longer term contract with a subscriber in exchange for discounted rates.
A. 
It is the policy of the City to ensure that every cable system provides service in its franchise area upon request to any person or any government building. Each franchisee shall extend service upon request within its franchise area, provided that, a franchise may permit a franchisee to require a potential subscriber to contribute a fair share of the capital costs of installation or extension as a condition of extension or installation in cases where such extension or installation may be unduly expensive. Cable service must be provided within time limits specified in Section 4.7 of the City's Customer Service Standards Resolution.
B. 
A cable system within the City shall meet or exceed the technical standards set forth in 47 C.F.R. Section 76.601 and any other applicable technical standards as may be amended.
C. 
Each cable operator shall perform at its expense such tests as may be necessary to show whether or not the franchisee is in compliance with its obligations under applicable FCC standards, this chapter or a franchise.
D. 
Each franchisee shall, during the term of its franchise, ensure that subscribers are able to receive continuous service. In the event the franchise is revoked or terminated, the franchisee may be required to continue to provide service for a reasonable period to assure an orderly transition of service from the franchisee to another person. A franchise may establish more particular requirements under which these obligations will be satisfied.
(Ord. 649-05, 2005)
A. 
The City may regulate any of the cable operator's rates and charges, to the extent allowed by applicable law. If the City chooses to regulate rates:
1. 
It will do so in accordance with FCC rules and regulations, where applicable;
2. 
Except to the extent FCC rules provide otherwise, all rates and charges that are subject to regulation, and changes in those rates or charges must be approved in advance;
3. 
The City Manager may take any required steps to file complaints, toll rates, issue accounting orders or take any other steps required to comply with FCC regulations;
4. 
The City Council shall be responsible for issuing rate orders that establish rates or order refunds; and
5. 
A franchisee must comply with all rate orders issued by the City Council pending appeals by the franchisee unless a stay order has been issued by the FCC.
B. 
Except to the extent the City may not enforce such a requirement, a cable operator is prohibited from unlawfully discriminating in its rates or charges or from granting undue preferences to any subscriber, potential subscriber, or group of subscribers or potential subscribers; provided, however, that a franchisee may offer temporary, bona fide promotional discounts in order to attract or maintain subscribers, so long as such discounts are offered on a nondiscriminatory basis to similar classes of subscribers throughout the franchise area; and a franchisee may offer discounts for the elderly, the disabled, or the economically disadvantaged; and such other discounts as it is entitled to provide under Federal or state law, if such discounts are applied in a uniform and consistent manner.
C. 
A cable operator shall not deny access or charge different rates to any group of subscribers or potential subscribers because of the income of the residents of the local area in which such group resides.
D. 
1. 
Each cable system operator must satisfy FCC, state and City cable system customer service standards or consumer protection standards. The City cable system customer service standards may be adopted by resolution. In the case of a conflict among standards, the stricter standard shall apply.
2. 
For each violation of a cable system customer service standard, penalties will be imposed as follows and shall not be charged or passed-through to subscribers:
a. 
Two hundred dollars for each day of each material breach, not to exceed six hundred dollars for each occurrence of material breach.
b. 
If there is a subsequent material breach of the same provision within twelve months, four hundred dollars for each day of each material breach, not to exceed one thousand two hundred dollars for each occurrence of the material breach.
c. 
If there is a third or additional material breach of the same provision within twelve months of the first, one thousand dollars for each day of each material breach, not to exceed three thousand dollars for each occurrence of the material breach.
3. 
Any penalty assessed under this section will be reduced dollar for dollar to the extent any liquidated damage provision of a franchise imposes a monetary obligation on a franchisee for the same customer service failures, and no other monetary damages may be assessed. A citation may be served on the franchisee by providing a copy to the person to whom notices are to be sent under the franchise. Penalties will be imposed pursuant to procedures set forth in the municipal code, applied in a manner consistent with California Government Code Section 53088(2)(r).
(Ord. 649-05, 2005)