A. 
In accordance with applicable federal and state law, the city is authorized to grant one or more nonexclusive franchises to construct, reconstruct, operate and maintain cable television systems within the city limits.
B. 
The city council finds that the development of cable television and related telecommunications services may provide significant benefits for, and substantial impacts upon, the residents of the city. Because of the complex and rapidly changing technology associated with cable television, the city council further finds that the public convenience, safety, and general welfare can best be served by establishing regulatory powers to be exercised by the city. This article is intended to specify the means for providing to the public the best possible cable television and related telecommunications services, and every franchise issued in accordance with this article is intended to achieve this primary objective. It is the further intent of this article to adopt regulatory provisions that will enable the city to regulate cable television and related telecommunications services to the maximum extent authorized by federal and state law.
(Ord. 946 § 2, 2000)
A. 
Franchise Purposes. A franchise granted by the city under the provisions of this article may authorize the grantee to do the following:
1. 
To engage in the business of providing cable service and such other telecommunications services as may be authorized by law and which grantee elects to provide to its subscribers within the designated franchise service area.
2. 
To erect, install, construct, repair, rebuild, reconstruct, replace, maintain and retain, cable lines, related electronic equipment, supporting structures, appurtenances, and other property in connection with the operation of the cable system in, on, over, under, upon, along and across streets or other public places within the designated franchise service area.
3. 
To maintain and operate the franchise properties for the origination, reception, transmission, amplification and distribution of television and radio signals, and for the delivery of cable services and such other services as may be authorized by law.
B. 
Franchise Required.
1. 
It is unlawful for any person to construct, install, or operate a cable television system within any street or public way in the city without first obtaining a franchise under the provisions of this article.
2. 
The city council finds and determines that certain multichannel video programming distributors and video providers, as those terms are defined in Section 14.01.170 of this article, provide cable service, including video programming, to subscribers within limited geographic areas where multi-family dwelling complexes and congregate-living complexes are located. That cable service, including video programming, is sometimes provided, in whole or in part, by the transmission of signals over wires or lines that are owned or controlled by telecommunications service providers or other public utilities and that are within or cross streets or public ways within the boundaries of a local franchising authority. The multichannel video programming distributor or video provider may obtain from the telecommunications service provider or other public utility, by lease, license, or similar contractual arrangement, the right to use those wires or lines in order to provide cable service, including video programming, to subscribers or customers within the multi-family dwelling complexes and congregateliving complexes referenced above. The city council further finds and determines that these contractual arrangements for signal transmission facilitate the provision of cable service, including video programming, and create a nexus between that cable service and the use of the streets and public ways of the city. Consequently, to the maximum extent authorized under California law, it is the intent of the city council to subject multichannel video programming distributors and video providers that intend to use this signal-transmission methodology to the franchise requirements set forth in this article, subject to such waivers and modifications of those requirements as may, in the discretion of the city council or its designee, be warranted in view of the limited geographic area that is proposed to be served.
C. 
Term of the Franchise.
1. 
A franchise granted under this article will be for the term specified in the franchise agreement, commencing upon the effective date of the ordinance or resolution adopted by the city council that authorizes the franchise.
2. 
A franchise granted under this article may be renewed upon application by the grantee in accordance with the then-applicable provisions of state and federal law and of this article.
D. 
Franchise Territory. A franchise is effective within the territorial limits of the city, and within any area added to the city during the term of the franchise, unless otherwise specified in the ordinance or resolution granting the franchise or in the franchise agreement.
E. 
Federal or State Jurisdiction. This article will be construed in a manner consistent with all applicable federal and state laws, and it applies to all franchises granted or renewed after the effective date of this chapter, to the extent authorized by applicable law.
F. 
Franchise Non-Transferable.
1. 
Grantee may not sell, transfer, lease, assign, sublet, or dispose of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation, or otherwise, the franchise or any of the rights or privileges therein granted, without the prior consent of the city council and then only upon such terms and conditions as may be prescribed by the city council, which consent may not be unreasonably denied or delayed. Any attempt to sell, transfer, lease, assign, or otherwise dispose of the franchise without the consent of the city council is null and void. The granting of a security interest in any assets of the grantee, or any mortgage or other hypothecation, will not be deemed a transfer for the purposes of this subsection.
2. 
The requirements of subsection (F)(1) of this section apply to any change in control of grantee. The word "control" as used herein is not limited to the ownership of major stockholder or partnership interests, but includes actual working control in whatever manner exercised. If grantee or its ultimate parent corporation is a publicly-owned corporation, prior authorization of the city council is required where ownership or control of more than twenty percent of the voting stock of grantee or its ultimate parent corporation is acquired by a person or a group of persons acting in concert, none of whom, singularly or collectively, owns or controls the voting stock of the grantee or its ultimate parent corporation as of the effective date of the franchise.
3. 
Grantee must notify the city in writing of any foreclosure or judicial sale of all or a substantial part of the grantee's franchise property. That notification will be considered by the city as notice that a change in control of ownership of the franchise has taken place, and the provisions of this paragraph that require the prior consent of the city council to that change in control of ownership will apply.
4. 
For the purpose of determining whether it will consent to an acquisition, transfer, or change in control, the city may inquire as to the qualifications of the prospective transferee or controlling party, and grantee must assist the city in that inquiry. In seeking the city's consent to any change of ownership or control, grantee or the proposed transferee, or both, must complete Federal Communications Commission Form 394 or its equivalent. This application must be submitted to the city not less than one hundred twenty days prior to the proposed date of transfer. The transferee must establish that it possesses the legal, financial and technical capability to operate and maintain the cable system and to comply with all franchise requirements during the remaining term of the franchise. If the legal, financial and technical qualifications of the applicant are satisfactory, the city will consent to the transfer of the franchise. The consent of the city to that transfer will not be unreasonably denied or delayed.
5. 
Any financial institution holding a pledge of the grantee's assets to secure the advance of money for the construction or operation of the franchise property has the right to notify the city that it, or a designee satisfactory to the city, will take control of and operate the cable television system upon grantee's default in its financial obligations. Further, that financial institution must also submit a plan for such operation within ninety days after assuming control. The plan must ensure continued service and compliance with all franchise requirements during the period that the financial institution will exercise control over the system. The financial institution may not exercise control over the system for a period exceeding one year unless authorized by the city, in its sole discretion, and during that period of time it will have the right to petition the city to transfer the franchise to another grantee.
6. 
Grantee must reimburse the city for the city's reasonable review and processing expenses incurred in connection with any transfer or change in control of the franchise. These expenses include, without limitation, costs of administrative review, financial, legal and technical evaluation of the proposed transferee, consultants (including technical and legal experts and all costs incurred by these experts), notice and publication costs, and document preparation expenses. No reimbursement may be offset against any franchise fee payable to the city during the term of the franchise.
G. 
Geographical Coverage.
1. 
Unless otherwise provided in the franchise agreement, grantee must design, construct and maintain the cable television system so as to have the capability to pass every dwelling unit and commercial building in the city, subject to any service-area line extension requirements of the franchise agreement.
2. 
After service has been established by activating trunk or distribution cables for any service area, grantee must provide service to any requesting subscriber in that service area within seven days from the date of request, provided that the grantee is able to secure on reasonable terms and conditions all rights-of-way necessary to extend service to that subscriber within that seven-day period.
H. 
Nonexclusive Franchise. Every franchise granted is nonexclusive. The city specifically reserves the right to grant, at any time, such additional franchises for a cable television system, or any component thereof, as it deems appropriate, subject to applicable state and federal law. If an additional franchise is proposed to be granted to a subsequent grantee, a noticed public hearing must first be held if it is required under the provisions of Government Code Section 53066.3.
I. 
Multiple Franchises.
1. 
The city may grant any number of franchises, subject to applicable state and federal law. The city may limit the number of franchises granted, based upon, but not necessarily limited to, the requirements of applicable law and specific local considerations, such as:
a. 
The capacity of the public rights-of-way to accommodate multiple cables in addition to the cables, conduits, and pipes of the existing utility systems, such as electrical power, telephone, gas and sewerage.
b. 
The benefits that may accrue to subscribers as a result of cable system competition, such as lower rates and improved service.
c. 
The disadvantages that may result from cable system competition, such as the requirement for multiple pedestals on residents' property, and the disruption arising from numerous excavations within the public rights-of-way.
2. 
The city may require that any new grantee be responsible for its own underground trenching and the associated costs if, in the city's opinion, the rights-of-way in any particular area cannot reasonably accommodate additional cables.
(Ord. 946 § 2, 2000)
A. 
Filing of Applications. Any person desiring an initial franchise for a cable television system must file an application with the city. A reasonable nonrefundable application fee in an amount established by resolution of the city council must accompany the application. That application fee will cover all costs associated with reviewing and processing the application, including without limitation costs of administrative review financial, legal and technical evaluation of the applicant, consultants (including technical and legal experts and all costs incurred by those experts), notice and publication requirements, and document preparation expenses. If those costs exceed the application fee, the applicant must pay the difference to the city within thirty days following receipt of an itemized statement of those costs.
B. 
Applications—Contents. An application for an initial franchise for a cable television system must contain, as applicable:
1. 
A statement as to the proposed franchise service area and an explanation as to whether this proposed service area is, or will be, a part of a larger regional cluster of franchise service areas.
2. 
A resume of the applicant's prior history, including the experience and expertise of the applicant in the cable television and telecommunications industry.
3. 
A list of the partners, general and limited, of the applicant, if a partnership, or the percentage of stock owned or controlled by each stockholder, if a closely-held corporation. If the applicant is a publicly-owned corporation, each owner of ten percent or more of the issued and outstanding capital stock must be identified.
4. 
A list of officers, directors, and managing employees of the applicant, together with a description of the background of each such person.
5. 
A statement as to the number of people employed by the applicant, whether on a full-time or part-time basis.
6. 
The names and addresses of any parent or subsidiary of the applicant, or any other business entity owning or controlling applicant in whole or in part, or that is owned or controlled in whole or in part by the applicant.
7. 
A current financial statement of the applicant verified by a certified public accountant or otherwise certified to be true, complete and correct to the reasonable satisfaction of the city.
8. 
The proposed construction and service schedule.
9. 
Any additional information that the city deems to be reasonably necessary.
C. 
Consideration of Initial Applications.
1. 
Upon receipt of an application for an initial franchise, the city manager or the city manager's designee must prepare a report and make recommendations to the city council concerning that application.
2. 
A public hearing will be noticed prior to any initial franchise grant, at a time and date approved by the city council. Within thirty days after the close of the hearing, the city council will make a decision based upon the evidence received at the hearing as to whether the franchise should be granted, and, if granted, subject to what conditions. The city council may grant one or more franchises, or may decline to grant any franchise.
D. 
Franchise Renewal. Franchise renewals will be processed in accordance with then-applicable law. The city and grantee, by mutual consent, may enter into renewal negotiations at any time during the term of the franchise.
(Ord. 946 § 2, 2000)
A. 
The terms and provisions of a franchise agreement for the provision of cable television and related telecommunications services may relate to or include, without limitation, the following subject matters:
1. 
The nature, scope, geographical area and duration of the franchise.
2. 
The applicable franchise fee to be paid to the city, including the amount, the method of computation and the time for payment.
3. 
Requirements relating to compliance with and implementation of state and federal laws and regulations pertaining to the operation of the cable television system.
4. 
Requirements relating to the construction, upgrade, or rebuild of the cable television system, as well as the provision of special services, such as outlets for public buildings, emergency alert capability and parental control devices.
5. 
Requirements relating to the maintenance of a performance bond, a security fund, a letter of credit, or similar assurances to secure the performance of the grantee's obligations under the franchise agreement.
6. 
Requirements relating to comprehensive liability insurance, workers' compensation insurance and indemnification.
7. 
Requirements relating to consumer protection and customer service standards, which requirements may include, without limitation, compliance with the statutes, rules and regulations set forth in Section 14.01.080 of this article.
8. 
Requirements relating to the grantee's support of local cable usage, including the provision of public, educational and governmental access channels, the coverage of public meetings and special events, and financial support for public, educational and governmental access channels.
9. 
Requirements relating to the grantee's obligation to provide an institutional network, and channel capacity on that institutional network for educational or governmental use, subject to the city's rules and procedures for the use of such channel capacity and for compatibility with any telecommunications network that has been or may be developed by the city.
10. 
Requirements relating to construction, operation, and maintenance of the cable television system within the public rights-of-way, including compliance with all applicable building codes and permit requirements of the city, the abandonment, removal or relocation of facilities, and compliance with FCC technical standards.
11. 
Requirements relating to recordkeeping, accounting procedures, reporting, periodic audits and performance reviews, and the inspection of grantee's books and records.
12. 
Acts or omissions constituting material breaches of or defaults under the franchise agreement, and the applicable penalties or remedies for such breaches or defaults, including fines, penalties, liquidated damages, suspension, revocation and termination.
13. 
Requirements relating to the sale, assignment or other transfer or change in control of the franchise.
14. 
The grantee's obligation to maintain continuity of service and to authorize, under certain specified circumstances, the city's operation and management of the cable system.
15. 
Such additional requirements, conditions, policies and procedures as may be mutually agreed upon by the parties to the franchise agreement and that will, in the judgment of city staff and the city council, best serve the public interest and protect the public health, welfare and safety.
B. 
If there is any conflict or inconsistency between the provisions of a franchise agreement authorized by the city council and provisions of this chapter, the provisions of the franchise agreement will control.
(Ord. 946 § 2, 2000)
A. 
General Standards. A grantee must meet or exceed all applicable consumer protection and service standards that are customary in the cable television industry and that are recommended or required by the following:
1. 
Federal statutes, and the rules, regulations and orders of the Federal Communications Commission, including the following:
a. 
The provisions of Section 76.309(c) of Title 47 of the Code of Federal Regulations, as it now exists or may later be amended.
b. 
The provisions of Section 76.630 of Title 47 of the Code of Federal Regulations, as it now exists or may later be amended.
c. 
The provisions of Section 551 of Title 47, United States Code, as it now exists or may later be amended.
2. 
The provisions of California Government Code Sections 53054, et seq., entitled the "Cable Television and Video Provider Customer Service and Information Act."
3. 
The provisions of California Government Code Section 53088, et seq., entitled the "Video Customer Service Act."
4. 
The provisions of California Civil Code Section 1722(b)(1) through (6) relating to service or repair transactions between cable television companies and their subscribers.
B. 
Franchise Agreement. Unless preempted by paramount federal law, the consumer protection and service standards referenced above in subsection A of this section that are the most stringent, and that afford the greatest degree of protection to consumers, will be specified in the cable television franchise agreement and will apply, without limitation, to all video, voice and data services that are provided by the grantee to its subscribers within the franchise service area.
(Ord. 946 § 2, 2000)
The city of Palm Desert retains the right to assess a fee paid to the city for the support of public, educational, and governmental access facilities and activities within the city. The fee shall be one percent of a grantee's gross annual cable service revenues, as that term is defined in Section 14.01.170, or in the grantee's franchise agreement, or in applicable provisions of state or federal law. The one percent shall apply unless a higher percentage is authorized by applicable state or federal law. This fee is also applicable to a state video franchise holder operating within the city, which shall pay to the city one percent of its gross revenue, as defined in California Public Utilities Code Section 5860.
(Ord. 1133 § 1, 2007)
A. 
Franchise Fee. A state video franchise holder operating in the city shall pay to the city a franchise fee that is equal to five percent of the gross revenues of that state video franchise holder. The term "gross revenues" shall be defined as set forth in Public Utilities Code Section 5860.
B. 
Audit Authority. Not more than once annually, the city may examine and perform an audit of the business records of a holder of a state video franchise to ensure compliance with all applicable statutes and regulations related to the computation and payment of franchise fees.
C. 
Customer Service Penalties Under State Video Franchises.
1. 
The holder of a state video franchise shall comply with all applicable state and federal customer service and protection standards pertaining to the provision of video service.
2. 
The city shall monitor a state video franchise holder's compliance with state and federal customer service and protection standards. The city will provide to the state video franchise holder written notice of any material breaches of applicable customer service and protection standards, and will allow the state video franchise holder thirty days from receipt of the notice to remedy the specified material breach. Material breaches not remedied within the thirty-day time period will be subject to the following monetary penalties to be imposed by the city in accordance with state law:
a. 
For the first occurrence of a violation, a monetary penalty of five hundred dollars shall be imposed for each day the violation remains in effect, not to exceed one thousand five hundred dollars for each violation.
b. 
For a second violation of the same nature within twelve months, a monetary penalty of one thousand dollars shall be imposed for each day the violation remains in effect, not to exceed three thousand dollars for each violation.
c. 
For a third or further violation of the same nature within twelve months, a monetary penalty of two thousand five hundred dollars shall be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars for each violation.
3. 
A state video franchise holder may appeal a monetary penalty assessed by the city within sixty days. After relevant evidence and testimony is received, and staff reports are submitted, the city council will vote to either uphold or vacate the monetary penalty. The city council's decision on the imposition of a monetary penalty shall be final.
D. 
City Response to State Video Franchise Applications.
1. 
Applicants for state video franchises within the boundaries of the city must concurrently provide to the city complete copies of any application or amendments to applications filed with the California Public Utilities Commission. One complete copy must be provided to the city clerk.
2. 
The city will provide any appropriate comments to the California Public Utilities Commission regarding an application or an amendment to an application for a state video franchise.
E. 
PEG Channel Capacity. A state video franchise holder that uses the public rights-of-way shall designate sufficient capacity on its network to enable the carriage of at least three public, educational, or governmental (PEG) access channels.
1. 
PEG access channels shall be for the exclusive use of the city or its designees to provide public, educational, or governmental programming.
2. 
Advertising, underwriting, or sponsorship recognition may be carried on the PEG access channels for the purpose of funding PEG-related activities.
3. 
The PEG access channels shall be carried on the basic service tier.
4. 
To the extent feasible, the PEG access channels shall not be separated numerically from other channels carried on the basic service tier, and the channel numbers for the PEG access channels shall be the same channel numbers used by the incumbent cable operator unless prohibited by federal law.
5. 
After the initial designation of PEG access channel numbers, the channel numbers shall not be changed without the prior written consent of the city, unless the change is required by federal law.
6. 
Each PEG access channel shall be capable of carrying a National Television System Committee (NTSC) television signal.
F. 
Interconnection. Where technically feasible, a state video franchise holder and incumbent cable operator shall negotiate in good faith to interconnect their networks for the purpose of providing PEG access channel programming. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. State video franchise holders and incumbent cable operators shall provide interconnection of the PEG access channels on reasonable terms and conditions and may not withhold the interconnection. If a state video franchise holder and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement, the city may require the incumbent cable operator to allow the state video franchise holder to interconnect its network with the incumbent's network at a technically feasible point on the holder's network as identified by the holder. If no technically-feasible point for interconnection is available, the state video franchise holder shall make an interconnection available to the channel originator and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by the state video franchise holder requesting the interconnection unless otherwise agreed to by the parties.
G. 
Emergency Alert System And Emergency Overrides. A state video franchise holder must comply with the Emergency Alert System requirements of the Federal Communications Commission in order that emergency messages may be distributed over the holder's network. Provisions in city-issued franchises authorizing the city to provide local emergency notifications shall remain in effect, and shall apply to all state video franchise holders in the city for the duration of the city-issued franchise, or until the term of the franchise would have expired had it not been terminated pursuant to subdivision (m) of Section 5840 of the California Public Utilities Code, or until January 1, 2009, whichever is later.
(Ord. 1133 § 2, 2007)