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City of Royal Oak, MI
Oakland County
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Table of Contents
Table of Contents
The franchise agreement shall be in such form and contain such terms and provisions as shall be approved by the City Commission. The agreement may be adopted, and amended, by resolution of the City Commission or by any other mode of adoption or amendment authorized or required by law.
A grantee shall be awarded a franchise, pursuant to the provisions of § 222-5 of this chapter, either by resolution of the City Commission or by any other means authorized or required by law. The grantee shall be promptly notified of the award by the City by written notice thereof, sent by registered or certified mail, which notice shall be accompanied by one or more copies of the franchise agreement.
[Amended 8-16-1982 by Ord. No. 82-7; 6-16-1997 by Ord. No. 97-7]
A. 
The franchise agreement shall be properly executed and delivered to the City by the grantee on or before 15 days after the date the City sends written notice of the award to the grantee, which fifteen-day period may be extended by the City Commission for good cause; provided, however, that the franchise agreement shall not become effective until that specific date set forth in the franchise agreement.
B. 
At the time of delivery of the franchise agreement by the grantee to the City, the grantee shall pay to the City all costs incurred by the City in the franchise process. All other payments which are to be made to the City by the grantee shall be made in accordance with the terms and conditions of the franchise agreement.
C. 
At the time of delivery of the franchise agreement as provided in this section, the grantee shall also deliver all other monies and all documents and instruments required by this chapter or by the franchise agreement.
[Amended 6-16-1997 by Ord. No. 97-7]
Upon timely receipt by the City from the grantee of the properly executed franchise agreement, together with the acceptance fee and such other monies, documents and instruments as may be required in accordance with § 222-10 of this article, the City may execute the agreement and, upon execution thereof, shall deliver one fully executed copy to the grantee; provided, however, nothing herein shall prohibit the City from revoking the award of the franchise prior to delivery of an executed copy of the franchise agreement to the grantee. In the event of any such revocation, which shall be accomplished in the same manner as that used in granting the award, any funds and all documents and instruments delivered by the grantee to the City in connection with the grantee's acceptance of the award shall be returned forthwith to the grantee.
[Amended 8-16-1982 by Ord. No. 82-7; 6-16-1997 by Ord. No. 97-7]
A. 
The franchise agreement shall provide for a nonexclusive franchise for a term which shall commence as of the date set forth in the franchise agreement.
B. 
The franchise agreement shall provide that, throughout the term of the franchise, the grantee shall pay the City a franchise fee within 90 days after the end of each fiscal year of the grantee. The fee shall not be less than 5% of the grantee's gross revenues for each year. The grantee shall take any action with respect to any federal or state agency which may be necessary or appropriate to make the payment and receipt of such fees lawful. Acceptance of any payment by the City shall not be construed as a release of or as an accord and satisfaction regarding any claim the City may have for further and additional sums payable as a franchise fee or for the performance of any other obligation of the grantee under this chapter or the franchise agreement.
C. 
Unless otherwise provided in its franchise agreement, a grantee shall agree:
(1) 
That the grantee agrees to and accepts all provisions of this chapter and waives any claim that any provision hereof is unreasonable, arbitrary, invalid, or void.
(2) 
That the grantee recognizes the right of the City to make amendments to this chapter, during the term of the franchise pursuant to the terms and conditions of the franchise agreement.
[Amended 6-16-1997 by Ord. No. 97-7]
The franchise agreement shall contain such further conditions or provisions as may be negotiated between the City and the grantee except that no such conditions or provisions shall conflict with any provision of the City Charter, this chapter or other law in effect on the date of the franchise agreement. In the case of such conflict, the provisions of the City Charter, this chapter or other law shall prevail over the conflicting provision of the franchise agreement.
[Amended 8-16-1982 by Ord. No. 82-7; 6-16-1997 by Ord. No. 97-7]
Unless otherwise provided in the franchise agreement in question:
A. 
Any franchise granted pursuant to this chapter shall be subject to the right of the City, by resolution of the City Commission, to revoke the franchise for just cause. Just cause shall include, without limitation:
(1) 
A material violation by the grantee of any provision of the franchise agreement or this chapter, or any rule, order, or determination of the City made pursuant thereto, where such violation shall remain uncured pursuant to the terms and conditions of the franchise agreement.
(2) 
Any attempt by grantee to dispose of any of the facilities or property of the system in contravention of the franchise agreement.
(3) 
The commission of any fraud or deceit upon the City.
B. 
Any franchise granted hereunder shall be subject to all applicable provisions of the City Code made pursuant to the police power of the City, the City Charter, and any amendments thereto, whether made prior to or after the inception of the franchise.
C. 
Any franchise granted hereunder shall be subject to the following additional rights of the City:
(1) 
To require proper and adequate extension of plant and service and maintenance thereof at the highest practicable standard of efficiency, pursuant to the terms and conditions of the franchise agreement.
(2) 
To establish reasonable standards of service and quality of products, and to prevent unjust discrimination in service or rates.
(3) 
To require continuous and uninterrupted service to the public in accordance with the terms of the franchise throughout the entire period thereof.
(4) 
To impose such other regulations as may be determined by the City Commission to be conducive to the health, safety and welfare of the public.
(5) 
Through its appropriately designated representatives, to inspect all construction or installation work performed subject to the provisions of the franchise and this chapter and make such inspections as it shall find necessary to insure compliance with the terms of the franchise, this chapter and other pertinent provisions of law.
(6) 
At the expiration of the term for which a franchise is granted or upon termination and cancellation as provided therein, to require the grantee to remove at the grantee's sole expense any and all portions of the system from the public ways within the City.
(7) 
To require the grantee to safeguard and keep private all individual home subscriber information.
[Amended 6-16-1997 by Ord. No. 97-7]
Unless otherwise provided in the franchise agreement in question, any termination or cancellation of a franchise prior to the expiration of the term thereof shall be made by resolution of the City Commission only after a public hearing thereon. The grantee shall be entitled to 30 days' written notice of such hearing, and the notice shall specify with reasonable particularity the grounds upon which the contemplated termination is based. Any such termination shall be subject to any requirements of higher law and any limitation contained in the franchise agreement between the City and the grantee.
[Amended 6-16-1997 by Ord. No. 97-7]
Any breach by the grantee of the franchise agreement, in addition to constituting a breach of contract, shall constitute a violation of this chapter. The reasonable costs of any litigation, including attorney fees, incurred by the City to enforce this chapter or franchise granted pursuant hereto shall be reimbursed to the City by the grantee, in respect of such litigation or part thereof in which the City is the prevailing party.