A franchise shall be granted by the Village Board only when the benefits
of granting such franchise outweigh the disadvantages or risks considering
the following:
A. The cable services offered.
B. The charges for such services.
C. The financial status of the applicant.
D. The experience of the applicant.
E. The equipment to be utilized by the applicant in relation
to that used by the industry in general in similar markets.
F. The operating record of the applicant in the Village
and other locations.
G. The interruption of public use of roads, streets and
other Village property.
H. The effect of network use on Village roads, streets and
property.
I. Any erosion or runoff which may be created by network
use of Village roads, streets, or property.
J. Such other and further factors as are relevant to the
determination that the benefits to be received are significantly greater than
the costs, financial or otherwise, to the Village and its residents.
Upon filing by the grantee of the property acceptance, the performance
bond and the required insurance, the permit shall take effect and shall be
for a term of 15 years, unless a lesser period is specified in the permit.
Any permit granted hereunder by the Village shall not be exclusive,
and the Village may grant similar permits whenever it determines that it is
beneficial to the Village or its residents to do so.
Any use permit granted hereunder shall give the grantee the right to construct, erect, operate and maintain in, upon, along, above, over and under Village roads, streets and property towers, antennas, poles, cables, electronics equipment and other network appurtenances necessary for the operation of a cable television network, subject to the further restrictions of §
127-23.
Any permit granted hereunder shall be a privilege to be held for the benefit of the public by the grantee. Said permit shall not be sold, transferred, leased, assigned or disposed of in whole or in part, either by forced or voluntary sale, merger, consolidation, trust, receivership or any other means, without the prior consent of the Village expressed by a Village Board resolution and then only under such conditions as the Village Board may establish. Each potential transferee shall be considered according to the criteria of §
127-3.
A transfer shall be considered to have occurred where ownership or control
of more than 20% of the voting stock of the grantee is to be acquired by a
person or group of persons acting in concert, none of whom already owns or
controls 20% or more of such right of control, singularly or collectively.
A change of control from a subsidiary to a parent corporation or vice versa
shall not be considered as a transfer. A transfer shall also be considered
to have occurred for all changes in ownership or control by a person or group
of persons acting in concert who already own or control more than 20% of the
voting stock, singularly or collectively. These same provisions shall apply
to a partnership.
In the event any valid law, rule or regulation of any governing authority
or agency having jurisdiction, including but not limited to the Federal Communications
Commission, contravenes the provisions of this chapter subsequent to its adoption,
then the provisions hereof shall be superseded by any such valid law, rule
or regulation to the extent that the provisions hereof are in conflict with
and contrary to any such law, rule or regulation.
If the Federal Communications Commission or state denies permission
to operate any system for which a permit is granted under this chapter, the
permit shall be null and void. Applications for a permit shall be reopened.
The applicant whose request for permission to operate has been denied may
reapply for a permit.
The granting of any permits pursuant to this chapter shall not prevent
the Village Board from amending the chapter as it deems necessary. All cable
television companies holding permits shall be given written notice of hearings
concerning amendments of this chapter.
The Village may inspect and supervise all construction or installation
work performed subject to the provisions of any permit.
Use permits shall be effective upon payment of fees, filing of a certificate of insurance required under §
127-17, filing of the performance bond required under §
127-18 and the issuance of the permit by the Village Clerk-Treasurer.
In consideration of the granting of cable television permits to the
grantee, the grantee shall pay to the Village during the life of the franchise
a percentage of its gross annual receipts of whatever nature derived, either
directly or indirectly, from such cable television operation, except initial
installation charges and such other exemptions as may be granted by the Village
Board. This fee shall be paid by the grantee to the Village in January of
each year, and an independent auditor shall certify the amount of the grantee's
revenues from all cable services in order to verify the fee paid pursuant
hereto. Sales taxes or other taxes levied directly on a per-subscription basis
and collected by the grantee shall be deducted from the local annual gross
revenues before computation of sums due the Village is made. The percentages
designated in this section may be amended no more than once a year by the
Village Board consistent with increased costs for municipal facilities and
supervision and applicable rules of other regulatory agencies. Acceptance
of payments by the Village shall not be construed as a release or satisfaction
of any claims the Village may have for further or additional sums payable
hereunder or for any other performance or obligation required of the grantee.
Application for a permit shall be filed with the Village Clerk-Treasurer
in accordance with any filing instructions promulgated by the Village Board
and shall contain the following written information:
A. Proposal bond and filing fee. The proposal bond of $2,000 as required in §
127-18 and payment of a nonrefundable filing fee to the Village as set by the Village Board shall be filed and paid concurrently with the filing of an application.
B. Name and address. The name and address of the applicant,
date of application and signature of applicant or appropriate corporate officer(s).
C. Operation. A general description of the applicant's proposed
operation, including but not limited to business hours, operating staff and
maintenance procedures beyond those required in this chapter.
D. Use of Village property. A description of what Village
property would be used and how the property would be used, including a description
of all excavations and construction anticipated.
E. Service provided. A statement of the television and radio services to be provided, including both off-the-air and locally originated signals. The statement shall also specify the initial area to be served under the permit which is subject to the requirements of §
127-19 (time for performance) and a statement describing the grantee's plan, if any, for extension of the service area beyond the initial service area.
F. Special services. A statement setting forth a description
of the automated services proposed as well as a description of production
facilities, if any, to be made available by the grantee for the public, municipal
and educational channels.
G. Programming assistance. A statement establishing any
additional funding facilities or equipment beyond those required elsewhere
to be designated for programming the public, educational and governmental
access channels, if any.
H. Schedule of charges. The applicant's proposed schedule of charges as required by the provision of §
127-20.
I. Corporation organization. A statement detailing the corporate
or partnership organization of the applicant, if any, including the names
and addresses of its officers and directors or partners and the number of
shares held by each officer and director of partnership shares.
J. Stockholders. A statement identifying the number of authorized
and outstanding shares of applicant corporation's stock, including a current
list of the names and current addresses of its shareholders holding 5% or
more thereof.
K. Intracompany relationships. A statement describing all
intracompany relationships of the applicant corporation, including parent,
subsidiary or affiliated companies.
L. Agreements and understandings. A statement setting forth
all agreements and understandings, whether written or oral, existing between
the applicant and any other person, firm, group or corporation with respect
to any permit awarded hereunder and the conduct of the operation thereof existing
at the time of proposal submittal.
M. Financial statement. If applicant is a corporation, audited
financial statement for two previous years. If applicant is a partnership,
copies of the United States Partnership Return of Income (IRS Form 1065) for
the two previous fiscal years. If applicant is a sole proprietorship, copies
of the United States Individual Income Tax Return (IRS Form 1040) for the
two previous fiscal years.
N. Financial projection. A five-year operations proforma
which shall include the initial and continuing plant investment, annual profit
and loss statements detailing income and expenses, annual balance sheets and
annual levels of subscriber penetration. Costs and revenues anticipated for
voluntary services shall, if presented, be incorporated in the proforma as
required in this chapter but shall be separately identified in the proforma.
O. Financing. Suitable written evidence from a recognized
financing institution, addressed both to the applicant and to the Village,
advising that the applicant's financial ability and planned operation have
been analyzed by the institution and that the financing institution is prepared
to make the required funds available to the applicant if it is awarded a permit.
If the planned operation is to be internally financed, a Board resolution
shall be submitted authorizing the expenditure of all funds which may be required
to construct, install and operate a cable television network authorized by
the permit, if granted.
P. Technical description. A technical description of the
type of system proposed by the applicant, including but not limited to system
configuration (e.g., hub, dual cable), system capacity and two-way capability.
Q. Convictions. A statement as to whether the applicant
or any of its officers or directors or holders of 5% or more of its voting
stock has in the past 10 years been convicted of or has charges pending for
any crimes other than a routine traffic offense and the disposition of each
such case. If a partnership, the above applies to all partners.
R. Operating experience. A statement detailing the CATV
prior experience of the applicant, including that of the applicant's officer,
management and staff to be associated with the proposed operation.
S. Permit renewal information. If an application is for renewal of a permit, the proposal must include, in addition to the information required in Subsections
A through
R above:
(1) A summary of the technical, financial and programming
history of the network since the granting of the original permit.
(2) A statement and timetable that outlines all proposed
changes, expansion or improvements in the system as to services, programming
or technical specifications during the coming five years.
T. Additional requirements. The application for permit shall respond specifically and in sequence to Subsections
A through
S above of this section and shall be bound separately from any additional information proffered by the applicant.
U. Supplement to applications. The Village may require such
additional information it deems reasonably necessary for its determinations.
The Village may require at any time that a cable television network
file any of the following records with the Village Clerk-Treasurer:
A. Report to stockholders. The report to stockholders, if
any.
B. Income statement. Any income statement revealing all
revenues and expenses applicable to its operations.
C. Asset statement. An asset statement revealing all assets
and liabilities devoted to network operations, together with an itemization
of its investment in each such asset on the basis of original cost, less depreciation.
These reports shall include existing financing arrangements and such other
reasonable information as the Village may request and shall be signed by a
certified public accountant.
D. Facilities report. A facilities report setting forth
the total physical miles of plant operation and a map showing the location
of the same.
E. Service report. A service record report detailing all
complaints received and network downtime experienced during the previous 12
months and shall include all complaints, their disposition and response time.
F. Operations report. An operations report listing:
(1) A current list of all officers and directors with their
addresses.
(2) Copies of all pertinent agreements or contracts, including
pole use agreements, entered into by the grantee during the fiscal year in
the conduct of its business under the permit granted hereunder.
(3) The names and business and residential addresses and
phone numbers of the cable television network resident manager and engineer.
(4) A copy of all types of subscriber agreements as set forth in §
127-25 hereunder. Copies of individual subscribers' agreements are not to be filed with the Village.
G. Engineering plans. Engineering plans for the network.
For the purpose of this chapter, the following terms, phrases and words
and their derivations shall have the meaning specified herein. When not inconsistent
with the context, words used in the present tense include the future, and
words in the singular number include words in the plural number.
ADDITIONAL SERVICE
A subscriber service provided by the grantee for which a special
charge is made based on program or service content, time or separate space
usage.
BASIC SERVICE
All subscriber services provided by the grantee, including the delivery
of broadcast signals and programming originated over the cable system. Covered
by the regular monthly charge paid by all subscribers.
CABLE TELEVISION NETWORK
Any network of cables, optical, electrical or electronic equipment,
including cable television systems, used for the purpose of transmission of
electrical impulses of television, radio and other intelligences, either analog
or digital, for sale or use by the inhabitants of the Village. CATV is the
abbreviation for cable television network.
COMMENCE OPERATION
Operation will be considered to have commenced when sufficient distribution
facilities have been installed so as to permit the offering of full network
services to at least 50% of the dwelling units located within the initial
service area of the Village.
FCC
The Federal Communications Commission and any legally appointed or
elected successor.
GRANTEE
All persons and organizations, including but not limited to subsidiaries,
parents or affiliate companies, associations or organizations, having any
rights, power, privileges, duties, liabilities or obligations under this chapter,
and also includes all persons having or claiming any title to or interest
in the system, by interest in the subsidiary, parent or affiliate company,
association or organization or by any subcontract, transfer, assignment, management
agreement or operating agreement otherwise arising or created.
REASONABLE NOTICE
The provision of notice of contemplated action delivered at least
48 hours prior to such action.
SALE
Includes any sale, exchange or barter.
SERVICE AREA
That geographical area within the limits of the Village specified
in the permit.
STREET
Includes all streets, roadways, highways, avenues, lanes, alleys,
courts, places, squares, curbs, sidewalks, public parking areas, easements,
rights-of-way or other public ways in the Village which have been or may hereafter
be dedicated and open to public use, or such other public property so designated
by law.
SUBSCRIBER
Any person, firm, company, corporation, or association receiving
either basic service or additional service from the grantee under the schedule
of charges filed with and approved by the Village.
SUBSCRIBER TERMINAL
The cable television network's cable terminal to which the subscriber's
equipment is connected. Separate terminals may be provided for delivery of
cable television signals, FM broadcast or other signals of differing classifications.
SUBSTANTIALLY COMPLETED
Operations will be considered substantially completed when sufficient
distribution facilities have been installed so as to permit the offering of
full network service to at least 90% of the dwelling units in the service
area to which access is legally and reasonably possible.
VILLAGE
The Village of Orfordville, its officers and employees unless otherwise
specifically designated, as well as the area within the corporate limits of
the Village as from time to time existing.
VILLAGE BOARD
The Village Board of the Village of Orfordville and any legally appointed
or elected successor.