As used in this chapter, the following terms
shall have the meanings indicated:
ADDITIONAL SERVICES
Any of the following:
A.
Such video services as the transmission of all
leased access signals not included in basic subscriber service, as
well as the transmission of cablecast video advertising messages and
pay television signals;
B.
Such audio services as the retransmission of
cablecast AM or FM signals, the transmission of cablecast radio advertising
messages, as permitted by the FCC;
C.
Such digital services as the transmission of
digital signals including, but not limited to, two-way signals, computer
signals, signals associated with fire and burglar alarm services,
signals associated with home shopping, remote medical diagnosis, utility
equipment monitoring, and similar services; and
D.
Services not involving the transmission of signals,
including rental of equipment, training services, and all other services
which may be provided by the franchisee to programmers or subscribers.
BASIC SERVICE
All subscriber services provided by the company in one or
more service tiers, including the delivery of broadcast signals, access
channels and origination channels, covered by a regular monthly charge
paid by all subscribers to a particular service tier, excluding optional
services for which a separate per-channel or per-program charge is
made. Home security service, data retrieval or other such auxiliary
services shall not be considered part of basic service.
BROADCAST SIGNAL
A television or radio signal that is transmitted over the
air and is received by a cable television system off the air, by satellite,
by microwave, or by direct connection to a broadcasting station.
CABLE GROSS REVENUES or GROSS REVENUES
Any and all cash, credits, property or other consideration
of any kind or nature, and all of the amounts earned or accrued, arising
from, attributable to, or in any way derived directly or indirectly
by franchisee, or an entity in any way affiliated with franchisee,
in whatever form and from all sources which are in connection with
or attributable to the operation of the cable television system within
franchisors' corporate boundaries or franchisee's provision of cable
services within franchisors' corporate boundaries.
[Amended 3-12-1984 by Ord. No. 135; 5-8-2000 by Ord. No. 218]
A.
Cable gross revenues shall include, without
limitation, all subscriber and customer fees and revenues earned or
accrued net of bad debts, including fees and revenues for basic cable
services; additional tiers; premium cable services; late charges;
pay per view; program guides; installation, disconnection, reconnection,
change in service or service call fees; fees for the provision, sale,
rental, or lease of converters, remote controls, additional outlets
and other customer premises equipment; late fees and administrative
fees; barter; revenues from the sale or carriage of other cable-related
services; fees paid by subscribers; revenues from the use of leased
access channels; advertising revenues from the system; and revenues
and compensation from home shopping programming. Cable gross revenues
shall not include the value of free services not required by the franchise
agreement; nor any taxes on services furnished by franchisors, or
other governmental unit and which are collected by franchisee on behalf
of said governmental unit. A franchise fee is not such a tax.
B.
Advertising revenues and other revenues whose
sources cannot be identified with a specific subscriber shall be allocated
to franchisors based upon the percentage of subscribers residing in
the franchise area compared to that served from the head end serving
each franchisor.
C.
All amounts earned or accrued from Internet
service and/or other interactive cable services shall be included
in cable gross revenues.
CABLE TELEVISION SYSTEM (not exempted by appropriate federal,
state and local codes) or COMMUNITY ANTENNA TELEVISION SYSTEM (CATV)
A system of antennas, cables, wires, lines, towers, waveguides,
or other conductors, converters, equipment or facilities, designed
and constructed for the purpose of producing, receiving, transmitting,
amplifying and distributing audio, video and other forms of electronic
or electrical signals, located in the Town. Said definition shall
not include any such facility that serves or will serve only subscribers
in one or more multiple unit dwellings under common ownership, control
or management, which does not use the Town's rights-of-way.
CABLECAST SIGNAL
A signal that is transmitted by a cable television system,
including microwave links, and is not involved in a broadcast transmission
path.
CHANNEL
A bank of frequencies, six megahertz wide, in the electromagnetic
spectrum capable of carrying either one audio-visual television signal
and a few nonvideo signals or a large number of nonvideo signals.
COMMERCIAL SUBSCRIBER
A subscriber who receives a service in a place of business,
where the service may be utilized in connection with a business, trade
or profession or institution.
COMPANY
Any provider of a cable television system.
CONVERTER
An electronic device which converts signals to a frequency
not susceptible to interference within the TV receiver of a subscriber,
and by an appropriate channel selector which also permits a subscriber
to view all signals delivered at designated dial locations.
COUNCIL
The Mayor and Council of the Town of Sykesville, Maryland.
FCC
The Federal Communications Commission.
FRANCHISE
Any provider of a cable communications system which receives
a franchise pursuant to this chapter.
LEASED ACCESS CHANNEL
Any channel available for lease, at fair and nondiscriminatory
rates, or a first-come-first-served basis, including those portions
of the other access channels not in use by their designated programmers.
MONITORING
Observing a communications signal, or the absence of a signal,
where the observer is neither the subscriber or the programmer, whether
the signal is observed by visual or electronic means, for any purpose
whatsoever, provided that "monitoring" shall not include system-wide,
nonindividually addressed sweeps of the system for purposes of verifying
system integrity, controlling return path transmissions, or billing
for pay services. Monitoring does not include tapping as herein defined.
PAY TELEVISION
The delivery to subscribers, over the cable communications
system, or television signals for a fee or charge to subscribers over
and above the charge for basic subscriber service, on a per-program,
per-channel, or other subscription basis.
PROGRAMMER
Any person, firm, corporation, institution or entity who
or which produces or otherwise provides program material for transmission
by video, audio, digital, or other signals either live or from recorded
tapes or films, or by other means to subscriber, by means of the cable
communications system.
PUBLIC ACCESS CHANNEL
Any channel where any member of the general public may be
a programmer, on a first-come-first-served, nondiscriminatory basis.
PUBLIC STREET
The surface of and the space above and below any public street,
avenue, highway, boulevard, concourse, driveway, bridge, tunnel, park,
parkway, waterway, dock, bulkhead, wharf, pier, alley, right-of-way,
public utility easement, public utility, and any other public ground
or water subject to the jurisdiction and control of the Town of Sykesville.
RESIDENTIAL SUBSCRIBER
A subscriber who receives a service in an individual dwelling
unit, where the service is not to be utilized in connection with a
business, trade, profession or institution.
SECURE CHANNEL
Any channel so arranged electronically as to be available
only to subscribers who possess special decoding equipment in order
to receive a usable signal.
SERVICE AREA
The geographic area in which the franchisee provides CATV
service.
SUBSCRIBER
Any person, firm, institution, corporation or other entity
who or which elects to receive, for any purpose, a service provided
by the franchisee by means of or in connection with the cable television
system.
SUBSCRIBER SERVICE DROP
Each extension wiring from the franchisee's distribution
lines to a subscriber point of use.
TAPPING
Observing a two-way communications signal exchange whether
the communications signal exchange is observed by visual or electronic
means, for any purpose whatsoever, without the consent of all parties
to the communication, subject, however, to the authority provided
pursuant to Courts and Judicial Proceedings Article, § 10-401
et seq., of the Annotated Code of Maryland to intercept communications.
TOTAL GROSS RECEIPTS
Any and all compensation and other consideration collected
or received or in any manner gained or derived by a franchisee from
the operation of its CATV service within the service area of the Town.
TOWN
The Town of Sykesville, Maryland, a Maryland municipal corporation
and all the territory now or hereafter acquired or annexed, within
its territorial corporate limits, as set forth in the Charter of the
Town.
TOWN AGENCY
The person, department, committee or agency designated by
the Council to act for it in certain matters relating to cable television;
or, if designated by the Council, the Council itself.
TOWN MANAGER
The Town Administrator of the Town of Sykesville, Maryland.
[Added 6-11-2007 by Ord. No. 268]
The Town shall advertise for application for
a CATV franchise(s) in local newspapers having general circulation
and in one or more national cable industry publications. The written
application for a franchise submitted to the Council shall contain
the following information:
A. The name, address and form of business of the applicant.
If the applicant is a corporation, it shall also state the percentage
of ownership, and the names, address and occupations of its officers,
directors and major stockholders (5% or more), and the names and addresses
of any parent or subsidiary companies. If applicant is a corporation
controlled by another corporation, the names, addresses and occupations
of the officers, directors and major stockholders (owner of 5% or
more) of the controlling corporation shall also be stated. If the
applicant is a partnership or other unincorporated association, the
percentage of ownership and the name and address of each member, whether
active or inactive, shall be set forth, and if one or more partners
are corporations, the names, addresses and occupations of such corporation's
officers, directors and major stockholders shall also be stated. It
shall also specify the names and technical and professional qualifications
and career backgrounds of the persons who will manage the system proposed
by the applicant.
B. A list of all other cable television systems, if any,
in which the applicant (or any partner or major stockholder of applicant)
has substantial interest (5% or more), stating the location, approximate
number of homes served, the name and address of the local franchising
body.
C. A thorough description of the proposed cable television
system to be installed and operated and the time schedule for such
installation, and the manner in which the applicant proposes to conduct,
install, maintain and operate the same. The description shall contain
sufficient technical detail to enable the Council to make a determination
as to whether the proposed system is technically equal to or superior
to that proposed by other applicants.
D. A schedule of proposed rates and charges to all classes
of subscribers for both installation and monthly service.
E. A statement setting forth all agreements and understandings,
whether written, oral or implied, existing between the applicant and
any person, firm or corporation with respect to the proposed franchise
or the proposed CATV operation. If a franchise is granted hereafter
to a person, firm or corporation posing as a front or as the representative
of another person, firm or corporation, and such information is not
disclosed in the original application, such franchise shall be forfeited
and the franchisee shall forfeit all revenues and any bond to the
Town.
F. A financial statement prepared by a certified public
accountant, or person otherwise satisfactory to the Council, and/or
such other financial documents as may be required by the Council,
showing applicant's financial status and his financial ability to
complete the construction and installation of the approved CATV system.
Such statements shall include, in addition to the foregoing, a responsible
estimate of the costs of construction and installation of such CATV
system and a detailed statement of the financing of such costs, the
amount of borrowed funds, if any, which may be required and including
the source and availability thereof.
G. The Council may at any time demand, and applicant
shall provide, such supplementary, additional or other information
as the Council deems reasonably necessary to show the applicant's
true ownership and control and financial, technical and character
qualifications.
H. The applicant shall specifically set forth that it
will comply with each of the provisions of this chapter and/or Town
rules and regulations related thereto.
I. The applicant may submit any other information it
feels relevant or that will enhance its proposal.
J. The applicant will accompany its application with
a cash deposit or certified check as specified in the request for
proposal, payable to the Town which sum shall be returned (without
interest) to the applicant if it is not successful in being awarded
a franchise. In the event the applicant is successful, the said deposit
shall be returned (without interest) to the applicant at the time
the franchise is accepted by the applicant and a performance bond,
as hereafter required, is filed with the Town; provided, however,
that, if a franchise is awarded and not accepted within 60 days of
the award, or the performance bond is not filed within that time,
said deposit shall be forfeited to the Town as liquidated damages,
and the Council shall have no further obligation to the applicant.
K. In addition to the deposit mentioned in Subsection
J above, the applicant will accompany the application with a check made payable to the Town in the amount of not less than $1,000 to help defray the administrative costs involved in the processing of applications. No part of this sum shall be refundable. In addition, the successful bidder shall remit to the Town the difference between the aggregate of application deposits received and the actual prefranchise award administrative costs incurred by the Town if any. Payment must be received by the Town prior to its execution of the franchise agreement.
The franchisee shall not oppose intervention
by the Town in any suit or proceeding to which the franchisee is a
party.
The franchisee shall receive no consideration
whatsoever from its subscribers for or in connection with its service
to its subscribers other than in accordance with this section, and
initial rates shall be established by agreement between the applicant
and the Council and shall be set forth in the franchise agreement.
Subscriber rates shall be at least as favorable as those offered by
the franchisee to other areas of the county; that is, if the franchisee
makes lower subscriber rates applicable elsewhere in the county, those
note rates shall become effective in the service area as of the date
of their applicability elsewhere in the county. To this connection,
the term "franchise" shall include any person, entity or firm that
is a subsidiary of the franchisee or part of its controlled group
as that term is used in the Internal Revenue Code.
A. Rate schedule. An applicant for a franchise shall
include, as a minimum, in its application its proposed initial rates
and charges for the categories and types of service listed below.
The rates shall remain in effect for at least one year after commencement
of service in the Town. Thereafter, these rates shall be changed when
appropriate, in accordance with the provisions of this section:
(1) Residential or commercial single subscriber service:
(b)
Monthly rate: first outlet and each additional
outlet.
(c)
Additional installation after initial installation.
(d)
Relocation of existing outlets.
(e)
Reconnection after discontinuance of service.
(2) Residential or commercial multiple units, where billing
is to single person, partnership, corporation or entity.
(a)
All type service listed under Subsection
A(1) above.
(3) Residential or commercial multiple units, where billing
is to individual subscribers.
(a)
All types service listed under Subsection
A(1) above.
B. Advance charges. The franchisee shall be permitted
to require advance payment for installation fees and for one month's
advance service fee. The franchisee shall require no other deposit,
advance payment or penalty from any subscriber or potential subscriber
without prior approval of the Town agency.
C. Rate change procedures and requests for rate increases.
(1) The Town shall have the authority to review the following
rates, fees and charges:
(a)
Rates for the provision of basic service to
subscribers, whether residential or commercial.
(b)
Rates for the connection, installation and reinstatement
(including converters) of basic service, whether residential or commercial.
(c)
Rates for installation, connection and reinstatement
of basic service where unusual circumstances exist such as remote
or inaccessible subscriber locations or subscriber-requested underground
service drops.
(d)
Any other rates, as may be permitted under FCC
rules.
(2) The Company may petition the Town for a change in
rates by filing, in quadruplicate, a proposed rate schedule with the
which petition shall include the justification(s) for the proposed
schedule. Said petition shall be filed at least 90 days prior to the
requested implementation date of the rate change. One copy of the
petition shall be available for public inspection at a convenient
public place during normal business hours.
(3) Within 60 days of the filing of the petition for rate
change, the Town may hold an appropriate public hearing to consider
the proposed rate change, at which hearing all persons desiring to
be heard, including the company, shall be heard on any matter, including
but not limited to the performance of the company, its services, and
the proposed new rates.
(4) If within 60 days of the filing of the petition for
rate change, a request for a public hearing is made by petition signed
by no less than 5% of the subscribers in a given service area, the
Town shall schedule a public hearing to be held within 60 days of
the filing of the request for hearing.
(5) Upon notice of any public hearing as provided in Subsection
C(3) and
(4) above, the company shall notify its subscribers of the time, place and subject matter of the public hearing by announcement on at least two local origination channels of its system between the hours of 7:00 p.m. and 9:00 p.m., for at least five consecutive days prior to the hearing. In addition, notice of any public hearing shall be published in a newspaper of general circulation at least once, but may be published two or more times, provided that one publication occurs not less than seven days nor more than 14 days before the public hearing. The company shall be responsible for publication and associated costs.
(6) Within 60 days after said hearing, the Town shall
render a written decision on the company's petition, either accepting,
rejecting, modifying or deferring the same and reciting the basis
for its decision.
(a)
The Town shall consider the following factors
in approving or disapproving the petition:
[1]
The ability of the company to render system
services and to derive a reasonable profit therefrom under the existing
rate schedule and under the proposed rate schedule;
[2]
The revenues and profits derived from system
services;
[3]
The efficiency of the company;
[4]
The quality of the service offered by the company;
[5]
The original cost of the system less depreciation;
[6]
A fair rate of return with respect to the cost
of borrowing and the rates of return on investments having similar
risks to that of cable television;
[7]
The extent to which the company has adhered
to the terms of this agreement; and
[8]
Fairness to Town residents, subscribers and
users.
(b)
The Town shall not consider any valuation based
upon the franchise granted or the company's good will, and these items
of value shall neither be amortized as an expense nor shall a return
be paid on them.
(7) The decision of the Town must be voted upon by each
member of the Town Council within this sixty-day period.
(8) If no final decision on the company's petition has
been rendered by the members of the Town Council within 180 days of
the request, the company's petition will be deemed approved. However,
no rate change may take effect if any member of the Town Council has
specifically disapproved the proposed rate change.
(9) Financial reports and accounting records.
(a)
The company's petition for a rate increase shall
include, but not be limited to, the following financial reports, which
shall reflect only the operations of its CATV system for this Town:
[4]
Statement of sources and applications of funds.
[5]
Detailed supporting schedules of expenses, income,
assets and other items as may be required.
[6]
Statement of current and projected subscribers
and penetration.
(b)
The company's accounting records applicable
to the CATV system shall be available for inspection by the Town at
all reasonable times. The Commission shall have access to records
of financial transactions for the purpose of verifying burden rates
or other indirect costs prorated to the CATV operation. The documents
listed shall include sufficient detail and/or footnotes as may be
necessary to provide the Town with the information needed to make
accurate determinations as to the financial condition of the system.
All financial statements shall be certified as accurate by an officer
of the company.
(10) Alternate procedure for rate changes and requests
for rate increases. In lieu of or in addition to procedures set forth
above, the Town of Sykesville may agree in any franchise agreement
for other and different procedures and rate changes and requests for
rate increases including the fixing thereof by any commission now
or hereafter established for this purpose in accordance with the franchise
agreement.
[Added 3-12-1984 by Ord. No. 135]
D. Refunds to subscribers.
(1) If, during the term of the franchise, the franchisee
receives refunds or any payments made for television or radio signals,
it shall, within a reasonable time, notify the Town agency and suggest
a plan for the flow-through of the refunds to its subscribers.
(2) If any subscriber terminates service within one year
of connection because of the franchisee's failure to render service
to such subscriber of a type and quality, and in the manner provided
for herein, or because the franchisee ceases to operate the system
authorized herein for any reason except expiration of the franchise,
the franchisee shall refund to such subscriber the initial connection
charges. In cases where customer complaints are unsatisfied by the
franchisee's responses to legitimate complaints of service failures,
poor service, inferior audio or video signals, the Town agency shall
have the power to:
(a)
Require the franchisee to adjust billing charges
for service deficiencies in whole or in part, based upon the Town
agency's evaluation of the deficiencies and the equities involved
or,
(b)
Require the franchisee to make reasonable refunds.
Until such time as the Council establishes a
separate Town agency, the Council itself shall have the powers of
the Town agency. The Town agency, in addition to any functions assigned
to it elsewhere in this chapter, may have the following functions:
A. Advise the Council on matters which might constitute
grounds for revocation of a franchise or other enforcement action
in accordance with this specification.
B. Resolve disagreements among the franchisee, subscribers
and public and private users of a system; such decision of the Town
agency shall be appealable to the Council in the event the Council
does not designate itself as the Town agency.
C. Advise the Council on the regulation of rates in accordance
with this chapter.
D. Coordinate the franchisee's services for best public
use of facilities and channels. of the system.
E. Determine general policy relating to the service provided
subscribers and the operation and use of public channels, with a view
to maximizing the diversity of programs and services to subscribers.
The use of public charnels shall be allocated on a first-come-first-served
basis, subject to limitations on monopolization of system time or
prime times.
F. Encourage use of public channels among the widest
range of institutions, groups and individuals. This endeavor shall
be conducted with a view toward establishing different categories
of uses.
G. Cooperate with other systems and coordinate interconnection
of systems.
H. Audit all franchisee records required by this chapter
and require the preparation and filing of information additional to
that required herein.
Citizen advisory committees may be established
as the need arises.
Tapping shall constitute a misdemeanor. Any
person found guilty of tapping is subject to punishment under the
provisions of the Courts and Judicial Proceedings Article, § 10-402
of the Annotated Code of Maryland, when the act of tapping would be
a violation of that Article. When the tapping does not constitute
a violation of the Courts and Judicial Proceedings Article, § 10-401
et seq., any person who is found guilty of tapping shall be punished
by a fine of not more than $1,000 per occurrence, or by imprisonment
for not more than one year, or both.