HomeMy WebLinkAboutORD-32-79 THE GRANTING OF FRANCHISES FOR CABLE TELEVISION PROVIDING TERMS AND CONDITIOND=Please publish Wednesday, July 18, 1979 only; and send
PROOF and Proof of Publication to City Clerk, P,O, Box
449, Orange. CA 92666,
CHARLOTTE M, JOHNSTON, Ole, CITY Cl.ERK
oRANGE CITY NEWS:
l'
Section
6800
6801
6802
6803
6804
6805
6806
6807
6808
6809
6810
6811
6812
6813
6814
6815
6816
6817
6818
6819
6820
6821
6822
6823
6824
6825
6826
6827
6828
6829
6830
6831
6832
6833
6834
6835
6836
6837
6838
6839
6840
6841
6842
6843
6844
INDEX
ORDINANCE NO. 32-
79 AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE ADDING SECTIONS 6800 ET SEQ.
TO THE ORANGE MUNICIPAL CODE PROVIDING FOR
THE GRANTING OF FRANCHISES FOR CABLE
TELEVISION SYSTEMS; PROVIDING TERMS AND CONDITIONS
FOR THE OPERATION OF SUCII CABLE
TELEVISION SYSTEMS; AND FEES, RATES, AND CHARGES
THEREFOR.Authority for
Franchise De fini
tions Council to Grant
Franchise Grant of
Franchise Uses Permitted by
Grantee Franchise
Nonexclusive Duration of
Franchise Franchise
Payments Limitations of
Franchise Rights Reserved to the
City Permits, Installation and
Service Underground
Construction Removal and Abandonment of Property of
Grantee Street Vacation or
Abandonment Changes Required by Public
Improvements Restoration of
Streets Faithful Performance
Bond Hold
Harmless Comprehensive Liability
Insurance Security
Fund Open Books and
Records Communications with Regulatory
Agencies Opera'tional
Standards Miscellaneous
Provisions Application for
Franchise Application
Fee Effect of
Annexations Renewal of CATV
Franchise New
Services Territorial Area
Involved Acceptance and Effective Date of
Franchise Tree Trimming;
Removal Emergency
Work Rates and
Charges Authority for Late ~
harges Authority for Certaln Other
Charges Limitation on
Charges Violations 1
tion Effect of Preemption or Deregu
a Use of Telephone
Facilities Franchise
Nontransferable Safety
Requirements Removal of Facilities Upon
Request Repair of streets and public
ways Erection of Poles
prohibited 1 I.!T[
7"
Page
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I section
I'
6845
6846
6847
6848
6849
6850
6851
6852
6853
6854
6855
6856
6857
6858
6859
6860
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Page
No
Recourse
Against City for Losses, etc.Movement of
Facilities Services special
Service
Areas Revocation of
Franchise Receivership Authority
of
City to Terminate in the Event of Condemnation
continuity of
Service Mandatory Reports Maintenance
and
Complaints Rights Reserved
to the Grantee Rights of
Individuals Protected Federal Regulation
Franchise Agreement
Separability and
Severability publication Costs
27 27
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29
29
30
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33
ORDINANCE NO.
32-79 AN
ORDINANCE OF THE CITY COUNCIL OF Tag crT OF
ORANGE ADDING SECTIONS 6800 gT SEQ TO Y
THE
ORANGE MUNICIPAL CODE PROVIDING FOR THE GRANTING
OF FRANCHISES FOR CABLE TELEVISION SYSTEMS;
PROVIDING TERMS AND CONDITIONS FOR THE
OPERATION OF SUCH CABLE TELEVISION SYSTEMS;
AND FEES, RATES, AND CHARGES TIIEREFOR.THE
CITY COUNCIL OF THE CITY OF ORANGE DOES ORDAIN AS FOLLOWS:
SECTION
I:Authority
for Franchise Th7
pro~isions ~f t~is chapter are adopted pursuant to the
Ca11forn1a Const1tut10n, the Franchise Act of 1937 comprising 6001
et seq. of the California Public Utilities Code and 39732 and
53066 of the California Government Code. 'Section
6800 section
6801 Definitions For
the purposes of this ordinance, the following terms,
phrases, words, abbreviations, and their derivations shall
have the meaning given herein.a)
b)
c)
Basic
CATV Service" shall mean the distribution of all television
signals provided at the basic monthly rate,including
broadcast television and local origination,access,
automated-display and special programming
signals, as indicated in the franchise agreement.
Basic Radio Service" means the distribution of all
radio signals, provided at the basic monthly rate,
including the retransmission of broadcast FM radio
signals, the retransmission of shortwave, weather,
news, time and other similar audio broadcast channels,
and the transmission of cablecast radio signals, as
indicated in the franchise agreement.
d)
Basic Subscriber" shall mean any person or entity
receiving Basic CATV Service.
CATV" shall mean a cable television system as hereinafter
defined.
e)Cable Television system" or "system," also referred to
as "Cable communications system," "Cable TV System,"
CATV System" or "Broadband Communications Network"
means a system composed of, without limi~ation, antenna~,
cables, wires, lines, towers, wireless 11nks, cab~ecast1ng
studios, or any other conductors, convert?rs, equ1pment
or facilities designed, constructed or w1red for,the
purpose of pr;dUcing, receiving, ~plifying, stor1ng,
processing or distributing by COa,X1al cable audio
and/or visual and/or ~ata ~ignals ~o ~d from persons,
subscribers and locat10ns 1n the C1ty.
f)
g)
h)
m'
r"~'"
i)
Expanded CATV Service" shall mean. .
service in addition to Basic CATV S
any, communicatJ.Ons
the grantee for an additional fee ~
rvJ.lcde,provided by
b f 1" , '
J.nc u J.ng, but not
y way,o, J.mJ.tatJ.on, pay TV, burglar alarm service,
advertJ.sJ.ng, data or other electronJ.'c t ,.
f"
ransmJ.sSJ.on
serv7ces, acsJ.mJ.le reproduction services, meter reading
servJ.ces and home shopping services.
FCC" shall mean the Federal Communications Commission.
Franchise" th 'means e nonexclusJ.ve authorization
granted as provided hereunder to occupy or use the
street~ within the City for the construction, operation
and maJ.ntenance of a cable television system within all
or part of the geographic limits of the City.
Franchise Agreement" means a signed and notarized
statem~nt on the pa:t of both grantor and grantee
acceptJ.ng and agreeJ.ng to all of the provisions of the
franchise herein granted, including referenced specifications
franchise applications, and other related material. '
Franchise Area" shall mean the territory within the
City throughout which grantee shall be authorized to
construct, maintain and operate its system and shall
include any enlargements thereof and additions thereto.
j)
k)Grantee" shall mean the person, firm or corporation to
whom or which a franchise, as hereinabove defined, is
granted by the Council under this ordinance, and the
lawful successor, transferee or assignee of said person,
firm or corporation.
1)Grantor" means the City of Orange as represented by
the City Council acting within the scope of its jurisdiction.
m)Gross Annual Receipts" shall mean any and all compensation
and other consideration in any form whatever and any
contributing grant or subsidy received directly or
indirectly by a grantee from (1) subscribers or users
in payment for televisioner FM radio signals, reception
or service received within the City, including installation
and 1 ine extension charges, (2) any fees or income
received by grantee for parrying advertising or commercial
messages over the CATV ~cilities, and (3) from any
other person for utilization of or connection to the
property of grantee to the extent City may from time to
time legally impose a franchise payment on account
thereof. Notwithstanding the above, Gross Annual
Receipts shall not include any taxes on services furnished
by the grantee and imposed directly on any subscrib~r
or user by any city, state or other governmental unJ.t
and collected by the grantee for such governmental
unit.
Property of grantee" shall mea~ all property ovmed,
installed or used by a grantee J.n the,conduct of a CATV
business in the City under the authorlty of a franchise
granted pursuant to this ordinance.
n)
2-
r-- ".
0)St
t" "bl'ree orpu ~c street" shall m r~ad,
highway, freeway, lane, path,e:~l~
nlYc~
u~~reet,s~
d7wal~,
parkway, or drive which is own~d by a ~ublic ent~ ty ~
n fee or as to which a public enti t has an ea~ement
for street purposes, and with resp~ct to wh~ch,
and to the extent that, City has a right to grant ~he
use of , the ~urface of, and space above and below, ~~ connect~
on w~th,a franchise for a cable telev~s~
on system.p)subscriber"
shall mean any person or entity receiving for any
purpose the CATV service of a grantee.Section 6802
Council to Grant Franchise The City
Council is empowered to grant by resolution consistent with
the requirements of the Federal Communications Commissio~, a
nonexclusi~e franchise to any qualified person, f~
rm or corporat~on to operate a cable television system as
hereinabove defined within the city limits of Orange.No
provision
of this ordinance may be deemed or construed as to
require the granting of a franchise when in the opinion of the
Council it is in the public interest to restrict the number of
grantees to one or more, or to refrain from granting any franchise
at that time in all or any portion of the City.Section 6803
Grant of Franchise In the
event that grantor shall grant to the grantee a nonexclusive, revocable
franchise to construct, operate,maintain, and
reconstruct a cable television system, said franchise shall
constitute both a right and an obligation to provide the
services as required by the provisions of this ordinance and
the franchise agreement. This franchise shall include those
provisions of the grantee's "Application for Franchise" that
are finally negotiated and accepted by the grantor and
grantee in writing.Section 6804
Uses
Permitted by Grantee Any franchise granted
pursuant to the provisions of this ordinance shall
authorize and permit the grantee to engage in the
business of operating and providing a CATV system in the
city, and for that purpose to ere~t, install~construct repair replace,
reconstruct, mainta~n and reta~n in, on, o~
erf und~r, upon, across and along any public .street, such poles,
wires, cable, ~onductors, ducts, condu~t,vaults, manholes, amplifiers,
appl~ances, attachments, and other property as
may be necessary and appurtenant to the .CATV system; and
in addition, so to use, operate, and prov~de similar facilities or
properties rented or leased from other persons, firms or
corporation, including but not limit:d to any public utility
or other grantee franchised or perm~tted to do business
in the city.3-
m1 "
section 6805 Franchise Nonexclusive
i
i:
The franchise granted herein is no 1 i
f '
nexc us ve The
grantor spec~ ~cally reserves the right t t .
h ddit' 1
0 gran, at any
tJ.me, sue ,a ~ona franchises for a cable t 1 i i
system as ~t deems appropriate.
e ev s on
section 6806 Duration of Franchise
No franchise granted by the Council under this ordinance
shall be for a term longer than fifteen (15) years following
the date of acceptance of such franchise by the grantee or
the renewal thereof. Any such franchise shall term in t '
h 1 t' l'
a e l.n
woe or propor ~onate y l.f City acquires the CATV system
property of the grantee or a portion thereof.
section 6807 Franchise Payments
al
b)
As c,?mpens~tion for t~e franchise to be granted and in
cons~derat1.on of perm1.ssion to use the streets and
pul?lic ways of the grantor for the construction, operation,
ma~ntenance, and reconstruction, of a cable television
system, the grantee shall pay to the grantor an annual
amount equal to three percent (3%) of the grantee's
gross annual receipts. Such payments will be made to
the city Treasurer.
Payments due the grantor under this provision shall be
computed quarterly, for the preceding quarter, as of
March 31, June 30, september 30, and December 31. Each
qua~terly payment shall be due and payable no later
than'sixty (60) days after the dates listed in the
previous sentence. Each payment shall be accompanied
by a brief report showing the basis for the computation
and such other relevant facts as may be required by the
grantor. '
c)The City shall have the right to inspect the grantee's
records showing the gross receipts from which its
franchise payments are computed and the right of audit
and recomputation of any and all amounts paid under
this ordinance. No acceptance of any payments shall be
construed as a release or as an accord and satisfaction
of any claim the city may have for further or additional
sums payable under this ordinance or for the performance
of any other obligation hereunder.
In the event that the above payment is not received by
the City within the specified time, grantee shall pay
to the City liquidated damag~s of ~w~ percent (2%) per
month on the unpaid balance ~n add1.t1.on thereto.
In the event of arty holding over after expiration or
other termination of any franchise granted hereunder,
without the prior consent of the city, exp:essed by
resolution, the grantee shall pay to the C1.ty a
reasonable compensation and damages, of not less than
one hundred percent (100%) of its total gr,?ss profits
before depreciation and excluding any spec1.al charges
during said period.
d)
e)
4-
f) The grantee shall file with .the City, within ninety
90) days ~fter the e~piration of any fiscal year of
the fr<;tnch~se, or porhon thereof during which such
franch~se ~s ~n force, a financial statement prepared
by a certified public accountant, or a certified financial
statement prepared by an appropriate grantee financial
off~cer, sho~ing in detail the gross annual receipts, as
def~ned here~n, of grantee during the preceding fiscal
year or portion thereof. It shall be the duty of the
g rant,;,e to pay. t~ the City, within ten (10) days after
the t~me for f111ng such statements, the sum hereinabove
prescribed or any unpaid balance thereof for the calendar
year or portion thereof covered by such statements.
g) In the event that Federal regulatory authorities or the
courts, in the future, permit a higher franchise fee on
total gross annual revenues of the CATV system than
the three percent (3%) limit now in effect, a higher
franchise fee may be utilized at the City Council's
option. If Federal prohibitions did not exist at the
time of passage of this ordinance, the franchise fee
would have been established, subject to State regulations,
at a percentage above three percent (3%) of the total
gross annual revenues of the CATV system.
section 6808 Limitations of Franchise
a) No privilege or exemption shall be granted or conferred
by any franchise granted under this ordinance except
those specifically prescribed herein.
b)
c)
Any privilege claimed under any such franc~ise by the
grantee in any public street or other publ~c property
shall be subordinate to any prior or subsequent lawful
occupancy or use thereof by the CitY,or any other ,
governmental entity, shall be subord1nate to any pr10r
lawful occupancy or use thereof by any other pe:son,
and shall be subordinate to any easements there1~,
whether created prior or subsequent to the grant~ng of
any franchise hereunder.
Time shall be of the essence of any such franchi~e
granted hereunder. The grantee shall ~ot be rel~eved
of his obligation to comply promptly w1th, any of the
provisions of this ordinance or by any fa~lure of the
City to enforce prompt compliance.
Any right or power in, or duty impressed upon, a~y
officer, employee, department, or boa:d of the C1ty
shall be subject to transfer by the C1ty to any ~ther
officer, employee, department, or board of the C1ty.
b bj ct to all requirements of
The grantee shall e su e
1 t'ons and specifications
City ordinances, rules, regUtad10r established.
heretofore or hereafter enac e
t d hereunder shall be in lieu of
Any franch~se gran,:,
ht privileges, powers, immunities,
any and all other ng s,
d controlled or
d th . t' es owned possesse, ,an au or~ 1 , successor to any interest
exercisable by grantee, ,o~ anlo the construction,
of grantee, of 0: perta~n ~~
an CATV system in the
operation, or ma~ntenance
f anyYfranchise hereunder
City; and the acceptance 0
d)
e)
f)
5-
9
shall operate, as between grantee and the Ci
abandonment of any and all of such ri h
ty, as an
powers, immunities, and authorities wlt~~~ ~;v~i~ges,
to the effect that, as between grantee and th CitY'
any and all construction, operation and maint:nanc~'
by any grantee of any CATV system in the City shall b
and shall be deemed and construed in all instances
e,
and respects to be, under and pursuant to said franchise,
and not under or pursuant to any other rl.'ght ""1prl.vl. ege,
power, l.mmunl.ty or authorl.ty whatsoever.
g) The gr~ntee shall ~t all times during the life of this
franchl.se comply wl.th all provisions of existing and
fut~re r~les and regul~tions of the City, the State of
Call.fornl.a, and the Unl.ted States of America.
h) Any fixtures placed in any publicway by the grantee
shall be placed in such a manner as not to interfer~
with the usual travel on such publicway.
Section 6809 Rights Reserved to the City
al Riqht to Purchase the System, Upon the revocation of
the franchise, or the expiration of the terms thereof,
and upon payment by the grantor to the grantee, of the
fair market value of the grantee's CATV system, the
grantor may purchase, acquire, takeover, or hold said
system. For purposes of this section, "fair market
val ue" shall be determined by valuing the grantee's
system as a going concern. No value shall be assigned
to the franchise granted hereunder. Immediately upon a
determination of revocation or expiration of the franchise,
the grantor and grantee shall attempt to mutually agree
upon the fair market value of the system. However, if
within a reasonable period of time they cannot agree
upon the fair market valuation, then said valuation
shall be determined by a three-member Board of
Appraisers,one selected by the grantor, one selected by the
grantee,and one selected by the appraisers themselves.
The cost of said appraisal shall be borne equally by
the grantor and the grantee. For purposes of this
section,fair market value shall be determined by valuing
the grantee's CATV system as a going
concern,There is hereby reserved to the Ci~y every right
and power which is required to be herel.n reserved
or provided by an ordinance of the city, and the
grantee,by its acceptance of any franchise, agrees to be
bound thereby and to comply with any action or
requirements of the city in its exercise of such rights or
power,heretofore or hereafter enacted or
established.Neither the granting of any franchise hereunder, nor
any of the provisions contained he:ein sha~l be
construed to prevent the city from grantl.ng any l.de~tical,
or ,similar franchise to any other person, fl.rm or ~9rporatl.
on,within ~ll or any portion of the
city.Neither the granting of any franchise nor any provis~
on hereof shall constitute a waiver or bar to the exerCl.
se of any governmental right or power of the City,
now existing or hereafter
granted.
b)
c)
d)
e)
The
cO';lncil, may do all ~hings which are necessary and co~
veUl,e~t ~n the exerc~se of its jurisdiction under th~
s ord~nan~e and ~ay determine any question of fact which
may ar~se dur~ng the existence of any franchise granted
hereunder. The City Manager is hereby authorized and
empowered to adjust, settle, or compromise any controversy
or charg7 aris~ng from the operations of any
g:;antee under th~s ord~nance,either on behalf of the
C~ ty, the grantee, or any subscriber in the best interest
of the public. Either the grantee or any member
of the public who may be dissatisfied with the decision
of the City Manager may appeal the matter to the
council for hearing and determination, The Council may
accept, reject or modify the decision of the City Manager,
and the Council may adjust, settle or compromise any
controversy or cancel any charge arising from the operations
of any grantee or from any provision of this ordinance.
All actions by the Council under this paragraph
shall be after hearing, upon ten (10) days'advance
written notice to grantee at its address on file
with the city.f)
Riqht of Inspection of Construction. The grantor shall have
the right to inspect all construction or installation work
performed subject to the provisions of the franchise and
to make such tests as it shall find necessary to ensure
compliance with the terms of this franchise and other
pertinent provisions of law.Right
of Intervention. The grantor may intervene in any
suitor proceeding in which the grantee is a party,provided
that the grantor's interests are not adequately represented
by the existing parties, and provided ,further,
that the disposition of each suit or proceed~ng without
the grantor's participation, may as a practical matter,
impair or impede the grantor's ability to protect
those interests.Right
to Require Removal of proP7rty: At the expiration of
the term for which the franchHe ~s granted, and upon
its revocation or expiration, a~ provided f~r herein,
the grantor shall have the r~ght to req';l~re the grantee
to remove, at its own expense, all port~ons of the
cable television system from all streets and publicways
within the city.Section
6810 Permits, Installation and Service a)
Within sixty (60) days after accepta~c7 of any franc~ise the
grantee shall proceed with d';led71~gence to obta~n all
necessary permits and author~zat~ons which are required
in the conduct of its business, including, but t
1, 't d to any utility joint use attachment no ~
m~ e, '1' and any other agreements
microwave carr~er ~censes,ermits
licenses and authorizations to be g~anted by,ulY
co;stituted regulatory agencies havini Jurisdic~~~n over
the operation of CATV,s~s~ems, or the r as~oc a e microwave
transmission faclllt~es,gl
h)
7-
11
bl
cl
J7""'"""'-''''
n
the evt;mt th<;1t ~he City permits overhead cable nstallatl~
n~ wlth~n one hundred and fifty (150) days after
o~taln~ng ~he n7c7ssary pole agreements with the approprla~
e publ~~ utlllty, grantee shall commence constructlon
and ~nstallation of the CATV system. In the
event that un~erground cables are required, wi thin one
hundr7d and h~ty ! 150) days after obtaining permits for
such lnstallat~on ~n the public right-of-
way grantee shall commence construction and installation
of the CATV
system.Within one hundred and twenty (120) days after
the commencement of construction and installation of
the system, grantee shall proceed to render service
to subscribers, and the completion of the construction
and installation shall be pursued with reasonable
diligence
thereafter.Fail ure on the part of the grantee to commence
and diligently pursue each of the foregoing
requirements and to complete each of the matters set forth
herein,shall be grounds for termination of such
franchise.The Council in its discretion shall extend the time
for the commencement and completion of construction
and installation for additional periods in the event
that the Council determines that grantee, acting in
good faith, experiences delays by reason of
circumstances beyond his
control.e) By acceptance of the franchise granted
hereunder,grantee agrees that failure to comply with any
time requirements referred to in Subsections (a), (b) (
c)and (d) of this section will result in damage to
the City, and that it is and will be impracticable
to determine the actual amount of such damage in the
event of delay; and grantee therefore agrees that, in
addition to any other damage suffered by City, he will pay
to City the sum of Two Hundred and Fifty Dollars ($250.
00)per day for each and every day's delay beyond the
time prescribed, plus authorized extensions thereof,
for completion of any of the acts required to be done
by this
section.
d)f)Grantor shall complete installation of the cable
system wi thin five (5) years after granting of the
franchise.The grantee shall schedule his construc~ion
activities to coordinate with the City's constructwn
activities on the streets, so as to avoid unnecessary
inconvenience to the
public.A franchise issued by the City may require
faster construction than established above if deemed
prudent by the
City.Grantor may at its sole option reduce ~he duration
of the franchise on a month-for-m~nt~ bas~s for
e~ch ~onth delay in system construction wlth~n
the
franchlsee
s
control.
gl
1m
ection 6 811 Underground Construction
I~ al~ areas ~f,t~e City where electric utility and
commun~catJ.ons facJ.IJ.t~es ~re ~nderground, the grantee shall
place J.~s ~ables ~nd dJ.~t~J.~utJ.on equipment underground.
lihen eXJ.stJ.ng aerJ.al utJ.lJ.tJ.es in any City area a.re converted
to underground construction, such that both electric and
communicati~ns uti~i~i7s ar7 underground, the grantee shall
replace aerJ.al facJ.lJ.tJ.es wlth underground facilities concurrently
and in coope~a~i~n with similar programs of the telephone
and power utJ.lltJ.es. All underground wires or cable of
grant7e shall be pla~ed in conduits, or upon the approval of
the DJ.rector of PublJ.c Works be of material suitable for
direct earth burial. Amplifiers in grantee's transmission
and distribution lines may be in appropriate pedestals as
approved by the Director of Public Works. Prior to excavation,
grantee shall obtain excavation permits and approval of the
location of underground facilities from the City.
Section 6812 Removal and Abandonment of Property of Grantee
In the event that the use of any part of the CATV
system is discontinued for any reason for a continuous
period of three (3) months, or in the event such system
or property has been installed in any street or public
place without complying with the requirements of grantee's
franchise or this ordinance, or the franchise has been
terminated, cancelled or has expired, the grantee shall
promptly, upon being given ten (10) days' notice from
the Director of Public Works, remove from the streets
or public places all such property and poles of such
system other than any which the Director of Public
Works may permit to be abandoned in place. In the
event of such removal, the grantee shall promptly
restore the street or other area from which such property
has been removed to a condition satisfactory to the
Director of Public Works.
Any property of the grantee :emaining ~n p~ace ninety
90) days after the terminatlOn or explrat1.0n, of the.
franchise shall be at the option of the Counc1.1 consldered
permanently abandoned. The Director of P~b~ic Work~
may extend such time not to exceed an addltJ.onal thlrty
30) days.
c) Any property of the grantee permitted to be abandoned
in place shall be abandoned in such m~nner as the
Director of Public works shall prescr1.be, ~pon permanent
abandonment of the property of the gran~ee ln place,
the property shall become that of th7 Clty, and,the
t h 11 b' t to the City an 1.nstrument 1.n
i~~ St~ bes~p~~oved by the city Attorney, transferring
to the City the ownership of such property.
Section 6813 street Vacation or Abandonment
a)
b)
In the event any street, alley, PUb~i~
e~;;~:~~dO~y the
portion thereof used by the g~antee,sha~
b the rantee,
grantor, or the use thereof d1.~Cont~~uegra~tee sgall forthwith
during the term of this franch1.se'
l
e
specifically permitted
remove his facilities therefrom un eS~
al thereof restore,
to continue the same, and on the remo
9-
repair or reconstruct the street area where such removal has
occurred, ,and place t~e,street area where such removal has
occurred ~n such c~nd~t~on as may be required by the grantor.
In the event of fa~lure, neglect or refusal of the grantee
after thirty ~30) ,days' notice by the grantor to repair, ,
improve or ma~nta~n.such street portion, the grantor may do
such work or cause ~t to be done, and the cost thereof as
found and declared by the grantor shall be paid by the
grantee.
section 6814 Chanqes Required by Public Improvements
The.gran~ee shall from time to time protect, support,
temporar~ly d~slocate, temporarily or permanently as may be
required, remove or relocate, without expense to the municipality
or any other governmental entity any facilities installed,
used, and maintained under the franchise if and when made
necessary by any lawful change of grade, alignment, or width
of any public street, including the construction of any
subway or viaduct, by the City or any other governmental
entity, or made necessary by any other public improvement or
alteration in, under, on, upon or about any public street or
other public property, whether such public improvement or
alteration be at the instance of the City or another governmental
entity, and whether such improvement or alteration is for a
governmental or proprietary function, or made necessary by
traffic conditions, public safety, street vacation or any
other public project or purpose of City or any other governmental
entity.
Section 6815 Restoration of streets
Whenever the grantee shall disturb the surface of any
street, alley, public highway or ground for any purpose, ,
mentioned herein, he shall restore the same to the cond~t~on
in which it was prior to the opening thereof, and when any
opening is made by the grantee in any hard surface pavement
in any street, alley or public highway the grantee shall
promptly refill the opening and restore the pavement. The
grantor may refill and/or repave in case of neglec~ of th~
grantee. The cost thereof, incl uding the cost of ~nspectw~
and supervision, shall be paid by the grantee. A~l e~cavat~ons
made by the grantee in the street, alley and publ~c h~ghways
shall be properly safeguarded for the p:evention <?f accide~ts.
The work hereby required shall be done ~n the str~ct compl~ance
with the rules, regulations and ordinances of the grantor as
now or hereafter provided.
Section 6816 Faithful Performance Bond
a)Th t hall concurrently with the filing of and
e gran ee s , . t d der this
acceptance of award of any franch~se gran e un ,
ordinance file with the City Clerk, and at all t~mes
thereafte~ maintain in full force and effect for the
term of such franchise or any renewal thereof, a~
grantee's sole expense, a corporate surety bond .1.~ a
company and in form and content appr~ved b~ the ;.1.ty
Attorne in the minimum amount of F~fty T ousal\... , ,
DollarsY($50,000.00), renewable annually, and CO~d~tloned
upon the faithful performance by ~~:eg~~~t~~
i~fc~~~ter
obligations imposed by sucih ir~~~g the full amount of
and all applicable laws, nc u 1
10-
I ..",Ii Il'llIIlI1
any compensation, indemnificat1'ons
b d t f. ,
or cost of r~~oval
or a an onmen 0 any property of th ~"
reasonable allowance for attorneys' ~
grant~r, plus a
to the full amount of the bond
ees an costs, up
the payment of the annual f 'h~
nd specifically including
d d b'
ranc 1se fees as herein
provl e , or su ]ect to the above conditions t
s~all deposit and maintain a minimum of an addi~~~n:~
F1fty Thousand Dollars ($50 000 00) l' th '
f d t f ' ,.
n e securlty
un , a~ se orth ln Section 6819, for a total of at
least,Slxty Thousand Dollars ($60 000.00)' 'd
secur1 ty fund. .'
1n sa1
b) Neither the provisions of this section nor any bond
accepted by the Ci~y pursuant hereto, ~or any damages
recovered,by the Clty thereunder, shall be construed to
e~cu~e,falthful performance by the grantee or limit the
llabll1ty of the grantee under any franchise issued
hereunder or for damages, either to the full amount of
the bond or otherwise.
c) The bond shall provide that thirty (30) days' prior
written ~otice of intention not to renew, cancellation,
or materlal change, be given to the City, in which
event grantee shall provide a substitute bond complying
w~th this section in form and content approved by the
Clty Attorney.
d) Funds represented by the aforestated bond shall be
recoverable by the grantor in case of noncompliance
by the grantee, its assignees, vendees, leasees, or
successors in interest.
Section 6817 Hold Harmless
Indemnification. The grantee shall defend, indemnify
and hold harmless the City, its officers, boards, commissions,
agents and employees, and each of them, against and from any
and all claims, demands, actions, suits, liabilities and
judgments of every kind and nature and regardless of the
merit of the same, arising out of or related to the exercise
or enjoyment of any CATV franchise granted pursuant to the
provisions of this chapter, including costs of investigations,
attorney's fees and court costs in the defense of any actions,
to the extent that such claims or demands are alleged to be
the result of an error, omission, intentional act or negligent
act of grantee or any persons employed by grantee, even if
that grantee employee is in error or by misinformation
alleged to be a grantor employee.
Section 6818 comprehensive Liability Insurance
al Upon acceptance of such franchise the grantee shall
file with the City Clerk and shall thereafter during
the entire term of such franchise maintain in full
force and effect, at its own expense, a general ,
comprehensive liability insu~ance policy or po~icles
provided by a company authOrlZed to do business in the
State of California, in a form approved ~y the City
Attorney protecting the City, its councll, boards,
commissi~ns, members thereof, and all officers, employees
and agents and each of them, against liability for
loss or da~ages for personal injury, death and property
11-
damage occasioned by the operati
minimum liability limits of Fl'V oHns dOf grantee, with
D 11 ($ 500 0
e un red Thousand
oars , 00.00) for personal ' .
anyone person, and One Million D01~
nJury or death of
for personal injury or death of tars ($l,OOO,OOO.?O)
wo or more persons ln
ny ~ne occ~rrence, and Fifty Thousand Dollars ($50 000 00)
or amag e 0 property resu 1 ting from any one occur~enc~.
b) The policy o~ ~licies shall name the City, its officers
boards, comm7s~10ns, ,agents and employees, and each of '
them, as addltlonal lnsured and shall contain a "
that a writt t' f
provlslon
eI?- no lee 0 any cancellation, modification or
reduc~lon ln cove~age of said policy shall be delivered to
the,Clty Clerk thlrty (30) days in advance of the 7ffectlve
date ther70f., Such insurance shall be primary lI?-
surancenot co~trlbutlng to any insurance held by the Cl
ty. No franchlse granted under this chapter shall be eff7c~
ive un~ess and until each of the foregoing pollcles
of lnsurance as required in this section has beeI?-
delivere~ 70 the City Clerk. Any substitute polley or
pollCles,shall be subject to the same approvals and shall
comply Wl th all of the provisions of this paragraph.Section
6819
Security Fund a) Within
thirty (30) days after the effective date of the franchise, the
grantee shall deposit into a bank account of the
grantor, established by the grantor, and maintain on deposit
throughout the term of this franchise, the sum of
not less than Ten Thousand Dollars ($10,000.00)as security
for the faithful performance by it of all the provisions
of this franchise, and compliance with all orders,
permits and directions of any agency of the grantor having
jurisdiction over its acts or defaults under this
contract, and the payment by the grantee of any claims,
liens and taxes due the grantor which arise by reason
of the construction, operation or maintenance of the
system. The grantee shall have the right to earn interest
on funds deposited in the security fund.b) Within
thirty (30) days after notice to it that any amount has
been withdrawn by the grantor from the security fund
pursuant to subsection (a) of this section,the grantee
shall deposit a sum of money sufficient to restore such
security fund to the original amount.c) If
the
grantee fails, after ten (10) days notice to pay to the grantor
any franchise fee due and unpaid; or,fails to repay
to the grantor, within such ten (10)days, any damages,
costs or expenses which the grantor shall be compelled
to pay by reas~n of, any a<;:t or ,default of the
grantee in connectlo~ wlth thlS fr~nchlse;or fails after
thirty (30) days notlce of such ~allure by the grantor
to comply with any provision o~ the franchise which the
grantor reasonably determlnes can be remedied by
an expenditure of the security, the grantor may immediately
with~raw the amount the~eof,with interest and
any penaltles, from the securlty fund. upon such
withdrawal, the grantor shall notify the grantee of
the amount and date thereof.12-
I
e)
The
security fund deposited pursuant to this s 'shall
become the property of the grantor in thectlon that
the franchise is cancelled by reason of t~e event
default
of the grantee or revoked for cause. The grantee,
h~wever, shall be entitled to the return of dSUCh ~
etcurtltYh fund~ or,portion thereof, as remains on eposl
ate eXplratlOn of the term of the f h't '
t' ranc
lse,or
upon e~mlna lon of the franchise at an earlier date,
provlded that there is then no outstanding default on
the part of the grantee.The
r~ghts reserved to the grantor with respect to the securlty
fund are in addition to all other rights of the
grantor whether reserved by this contract or authorized b~
law" and no action, proceeding or exercise of a rlght
wlth respect to such security fund shall affect any
other right the grantor may have.d)
Section
6820 Open Books and Records a)
The grantee shall maintain an office within the City and
manage all of its operations in accordance with a policy
of totally open books and records. The grantor shall
have the right to inspect at any time during normal
business hours, all books, records, maps, plans,income
tax returns, financial statements, service complaint
logs, performance test results and other like materials
of the grantee which relate to the operation of
the franchise. Access to the aforementioned records shall
not be denied by the grantee on the basis that said
records contain "proprietary" information.b)
The grantee shall at all times make and keep in the City
full and complete plans and records showing the exact
location of all CATV system equipment installed or
in use in streets and other public places in the City.
c)
The grantee shall file with the Director of Public Works,
on or before the last day in December of each year,
a current map or set of maps drawn to scale,showing
all CATV system equipment installed and in place
in streets and other public places of the City,Section
6821 Communications with Requlatory Aqencies Copies
of all petitions, applications, communications,and
reports submitted by the grantee to the Federal Communications Commission
Security and Exchange Commission, or any other ederal
or' State regulatory commission or age~cy having Jurisdiction
in respect to any matters affectlng cable ,communications
operations authorized pursuant to this franchlse,shall
also be submitted within twenty (20) days to the grantor,
if such petition, application, communicat~on, ,or report
materially or directly affe~ts cable,communlcatlons operations
pursuant to this franchlse. Caples of respo~ses from
the regulatory agencies to the grantee shall likewlse be
furnished within twenty (20) days to the grantor,13-
section 6822 Operational Standards
The CATV system shall provide to subscribers such
broadcast TV channels and FM stations and such nonbroadcast
services as shall be d~signated in the franchise granted.
For TV chaIll;els so deslgnated! grantee shall provide, to
each,s~bscrlber ~ho~e TV rece7ver is in good operating
condJ.tJ.On! and wJ.t~ln the desJ.gnated subscriber charges,
good quallty coordlnated sound and video signal without
m~terial degr~dati?n in 70lor f~delity and intelligence, and
wlthout materlal vldeo slgnal dlstortJ.on or interferences
such as but not, limi ted to II
snow" and multiple images. FM
stations so deslgnated shall be received without material
degradation or distortion from such FM receivers of subscriber
as are in good operating condition. In addition to the
foregoing, the CATV system shall be installed and maintained
in accordance with the highest and best accepted standards
of the industry to the effect that subscribers shall receive
the highest possible service, and the following requirements
shall apply:
I
i
a) Provide, maintain and operate facilities which deliver
signals of adequate strength to produce good video
signals with good sound at all outlets and meet FCC and
cable television standards.
b)Limit system failure to a minimum time duration by
locating and correcting malfunctions promptly, but in
no event longer than twenty-four (24) hours
after notice for at least ninety percent (90%) of all
malfunctions.Upon complaint to the City by a subscriber, make
a demonstration satisfactory to the City Manager
or designated staff that a signal is being delivered
which is of sufficient strength and quality to meet
the standards set forth in this
ordinance.Render efficient service, making repairs promptly
and interrupting service only for,good cau~e an~ for
the shortest time possible' such J.nterruptJ.ons lnsofar
as possible shall be prec~ded by notice given to
subscribers twenty-four (24) hours in advance and
shall occur during period of minimum use of
the system.Maintain an office in the service area as requ~
red by thi s ordinance, which office shall be open
dunng all the usual business hours, have a te17P~
one number listed in the directories of the PacJ.fJ.c
Telephone and Telegraph Company for Orange and extended areas,
and be so operated that complaints and requ7sts for repai~
s or adjustments may be received at any tlme, In
additJ.on,a twent -four (24) hour per day answering or
referr~l telepho~e number shall be provided to ac7ept
subscrJ.ber ft normal busJ.
ness hours,complalnts and requests
a er Keep a maintenance ~ervice lo~ whi~~ew~;~ei~~~c~
l:et~~nature of each servJ.ce com~laJ.ntf' 'd complaint
and the d the disposi tJ.on
0 saJ.was recelve , h' 1 g shall be
made available time and date cleared. T J.
S 0,for periodic inspection by the
CJ.
ty.
c)
d)
e)
g) The g7a~tee shall ?perate and maintain its cable
telev~s~on system ~n full complianc 'th 11 '
t d d t f
e w~ a apphcabl e
s an, ar ,s se orth by the Federal Comm i i
Comm~ss~on.
un cat ons
h)Grantee shall make aV';lilable to subscribers, at
reasonable cost, lock~ng keys (parental control
to control the use of premium programming.
a
devices)
section 6823 Miscellaneous Provisions
a)When not otherwise prescribed herein all matters
herein required to be filed with the' City shall be
filed with the Director of Public Works.
b) ~ra~tee shall have no financial interest, directly or
nd~rectly, nor shall any of its officers shareholders
1, "or emp oyees, ~n any TV or radio sales or repair business,
nor shall grantee or any of such persons accept or
receive referral fees or gratuities from any such sales
or repair business. Any violation of this paragraph,
unknown to grantee, by an employee of grantee who is
not an officer shall not constitute a breach of this
Paragraph (b), unless grantee should fail to institute
prompt remedial action upon discovery thereof.
c) No person, firm or corporation in the existing service
area of the grantee shall be arbitrarily refused service;
provided, however, that the grantee shall not be required
to provide service to any subscriber who does not pay
the applicable connection fee or monthly service charge.
d) All notices which City may give to grantee or which
grantee may give to City shall be given in writing and
may be given by first class mail, postage prepaid
addressed to grantee's most recent address on file with
the City, and addressed to City at its City Hall. Such
notices, so sent by mail shall be deemed given one day
after deposit in the U. s. mails if so deposited in
Orange County or Los Angeles County; otherwise they
shall be deemed given upon receipt.
Section 6824 APplication for Franchise
a)Application for franchise hereunder shall be in wri~ing,
shall be filed with the City Clerk, and shall conta~n,
but not be limited to, the following information:
1 )The name and address of the applicant. If the
applicant is a partnership, the name and address
of each partner shall also be set fo~th., If the
applicant is a corporation, the appl~c~t~on,shall
also state the names and addresses of ~ts d~rectors,
main officers, major stockholders and assoc~at7s~
and the names and addresses,of parent and subs~d~ary
companies and the state of ~ncorporation.
15-
2 )
3 )
4 )
5 )
A statement and description of the CATV s stem
proposed to be constructed, installed malntained
or operated by the applicant; the '
of such system and . t '
proposed location
s var~ous components; the
an~efl~n w~~ch,applicant proposes to construct
l.ns <,1 , ma~ntal.n and operate the same; and, ,
pa7tl.~ularly, the extent and manner in which
ex~stl.ng 07 fut~r~ J?oles or other facilities of
other publl.c utl.hhes will be used for such
system.
A de~cription, in detail, of the public streets,
pu~ll.c pla~es and proposed public streets within
wh~ch appll.~ant proposes or seeks authority to
construct, ~nstall or maintain any CATV equipment
or facilities; a detailed description of the
equipment or facilities proposed to be constructed
inst<,1l~ed or maintained therein, and the proposed '
specl.f~c location thereof.
A map specifically showing and delineating the
proposed service area or areas within which
applicant proposes to provide CATV services and
for which a franchise is requested.
A statement or schedule of proposed rates and
charges to subscribers for installation and services,
and a copy of proposed service agreement between
the grantee and its subscribers shall accompany
the application.
6 )A copy of any contract, if existing, between the
applicant and any public utility providing for the
use of facilities of such public utility, such as
poles, lines, or conduits.
7 )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 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 deemed void
and of no force and effect whatsoever.
A financial statement prepared by a certified
public accountant, showing ~PJ?licant's financial
status and his financial ab~l~ty to complete the
construction and installation of the proposed CATV
system.
A statement as to when construction will beg~n
after the date of the granting of the franch~se
and after the execution of the utility agreement
described in No.6.
8 )
9)
16-
10 )A statement indicating h h
are ~eld and how many e~i:~~nOgts~rb CATibV franchises
serv~ced.
scr ers are
11)A statement of intent with regard to program
ohr~gl~nat~?n and acceptance of local advertising
s a 1 be ~ncluded.
12 )The number. and identification of channels
to be carr~ed on the CATV system.
13) A detailed list:ing, of oper"ti\lg equipment including
model numbers and types, with an "equal or better"
guarantee.
proposed
14) A p::oposed sub~criber complaint processing and
equ~pment repa~r procedure.
15) A, pr?posed "proof ot performance" description,
l~st~ng tests to be pertormed and equipment utilized.
b) Upon consideration of any such application, the Council
may refuse to grant the requested franchise or the
council may by ordinance grant a franchise for a CATV
system to any such applicant as may appear from said
application to be in its opinion best qualified to
render proper and efficient CATV service to television
viewers and subscribers in the City. The council's
decision in the matter shall be final. If favorably
considered, the application submitted shall constitute
and form part of the franchise as granted.
c) The Council may at any time demand, and applicant shall
provide, such supplementary, additional or other information
as the Council may deem reasonably necessary to determine
whether the requested franchise should be granted.
d) Any franchise granted pursuant to this ordinance shall
include the following condition:
The CATV system herein franchised shall be used
and operated solely and exclusively for the purpose
expressly authorized by ordinance of the city of
Orange and no other purpose whatsoever.
Inclusion of the foregoing statement in any such franchise
shall not be deemed to limit the authority of the City
to include any other reasonable condition, lim~tation.
or restriction which it may deem necessary to ~mpose 7n
connection with such franchise pursuant to the author~ty
conferred by this ordinance,
Section
6825 Each
application shall be accom~anied by an application fee
in the sum of One Thousand and Flve Hundred Dollars 1,
500.00) which shall be used by the City to cover the costs
of reviewing, investigating and processing such an application.
This fee is not refundable.APplication
Fee 7-
e.ection 6826
a)
b)
c)
il
Effect of Annexations
In the event any new territory shall b d
C't h' h "
e annexe to the
J. y w J.C J.S contJ.guous to only one fran hi i
the City such t'
c se area n
new erntory shall become by operation
of law, a I?art of such franchise area imm~diatel u on
the effectJ.ve date of such annexation.
y P
In the;' even~ an:( new territory shall become annexed to
the C7ty whJ.c~ J.s co~tiguous to more than one franchise
area J.n the CJ. ty or J.S not contiguous to any franchise
area~ then ~he Council shall determine at a public
hearJ.ng, whJ.c~ grantee or grantees, if any, shall serve
such new terrJ.tory.
In the event any,po~tion of t~e unincorporated territory
covered by an eXJ.stJ.ng franchJ.se or license granted by
the County of Orange is annexed to the City prior to
the time that the grantee of such County franchise or
l~ce~se h~s comme;'nced instal~ation of a CATV system
WJ.thJ.n saJ.d terrJ.tory, all rlghts acquired by said
grantee under its County franchise or license shall
terminate by operation of law as of the date on which
the annexation to the City becomes effective.
d)In the event any portion of unincorporated territory
covered by an existing franchise or license granted by
the County of Orange is annexed to the City after the
grantee thereof has commenced or completed construction
and installation of a CATV system within said territory,
the rights reserved under such franchise or license to
the County of Orange or to any officer thereof, shall
inure to the benefit of the City of Orange and all
regulatory provisions of this ordinance and any other
rules and regulations applicable to CATV systems operating
within the city, whether then in effect or subsequently
adopted, shall be applicable to and binding upon said
grantee. In addition, the grantee shall be obligated
to pay annually to the city, the percentage of the ,
gross receipts established by the Count:( of Orange;' ln
said franchise or license which are derJ.ved from J.ts
operations within the annexed ter7itory ~or five.years
or upon termination of the franc~lse,. whlchever lS. of
the shorter time duration, at WhlCh tlme the councJ.l
may establish the percentage of gross receipts to be
paid to the city.
Section 6827 Renewal of CATV Franchise
a)Any franchise issued pursuant to this ordin~nce may h,e
renewed after a public hearing for an addi tJ.c;lUal penod
of ten (10) years, so that the aggregate perlod of the
franchise in such instance would be twen~y-five (
25)years instead of fifteen (15) years. Prlor to
the commencement of the twenty-fifth year
application for renewal shall begin in the same manner as if
a ~ew application and franchise is sought. No
franchlse or renewal thereof may be assigned, sold, ~
eased~ encumbered,or otherwise transferred without the pnor
wt'ltten consent of
the
b)Upon expiration of the fifteenth
the grantor shall have the right yeatriOf the franchise,
a ts election, to:
1) Renew or extend the franchis f
period, as agreed b th
e or an additional
y e grantor and grantee;
2) Invite additional franchise appl'c t"
or, ~
a lons or proposals:
3) Terminate the franchise without further action.
The gran~ee shal~ make it a condition of each contract
e~tered l.nto b~ ~t that the grantor shall have the
r~ght to exerC1.se these options.
I:
Section 6828 New Services
j:
It sha~l be the poli~y of the City liberally to amend
th~s franch~se, upon appl~cation of the grantee, when necessary
o enabl,:, the grantee ~o ~ake advantage of any developments
ln,the ~1.eld of tr~nsm~ss~on of television and radio signals
wh~ch w~ll afford l.t an opportunity more effectively efficiently
11 t' "or econom1.ca y 0 serve ~ts customers. Provided however
that this section shall not be construed to requi~e the City
to ma~e a~y amen~ment or to prohibit it from unilaterally
changwg ~ts pohcy stated herein,
section 6829 Territorial Area Involved
This franchise relates to the present territorial
limits of the City and to any area henceforth added thereto
during the term of this franchise,
Section 6830 Acceptance and Effective Date of Franchise
a) No franchise granted pursuant to the provisions of this
ordinance shall become effective unless and until the
resolution granting same has become effective and, in
addition, unless and until all things required by this
ordinance are done and completed, all of such things
being hereby declared to be conditions precedent to
the effectiveness of any such franchise granted hereunder,
In the event any of such things are not done and completed
in the time and manner required, the council may declare
the franchise null and void,
b) within twenty (20) days after the effective date of the
resolution awarding a franchise, or within such extended
period of time as the council in its discretion may
authorize, the grantee shall file w~th the City Clerk
his written acceptance, in f~rm sahsfactor~ to the
City Attorney, of the franch~se, together w7th all
bonds and insurance policies required by thlS ordinance,
together with his agreement to be bound by and to
comply with and to do all things required o~ him by the
provisions of this ordinance and the franch1.se. Such
acceptance and agreement shall be acknowledged by the
grantee before a notary public, and shall in form and
content be satisfactory to and approved by the City
Attorney.
j
I
19 -
ection
6831 Tree Trimming; Removal The
g:antee shall not remove any tree or trim any porhOn,
e~ther above, at or below ground level of any t h'
bl '1 . h ' ree
Wlt ~
n any P';llC P ace w~t out the prior consent of th city.
The C1 ty shall have the right to do the work w' t~ the ac~
ua~ co~t thereof to be paid. by the grantee. If SU~h tnmm1ng ~
s not performed by C1 ty, the grantee shall be respo~
si~le for any and all damages to any tree as a result of
tnmm~n~, or, to the land surrounding any tree, whether such
tree ~s tr~mmed or removed.Section
6832 Emergency Work The
City reserves the right to remove any portion of the
grantee's equipment and facilities as may be required in any
emergency as determined by the City without liability for
interruption of service and City shall not be obligated to
restore service or to pay the costs of expenses of restoring service.
section
6833 Rates and Charges a)
Basic Rates. The initial rates for Basic CATV service,installation
and connection charges shall not exceed the
rates set forth in the franchise application or those
otherwise approved by City council action. Basic service
rates and charges shall not be increased until the
system is completed.b)
Annual Rate Adiustment. The initial rates shall be adjusted
after the system is completed, effective October
1 of the year the system is completed, and shall
be adjusted for five (5) successive years thereafter,based
upon the Consumer Price Index (Urban Wage Earners)prepared
by the Bureau of Labor statistics of the united
States Department of Labor, relating to all items,
Series A, for the Los Angeles-Long Beach area
1967=100) (herein the "CPI"), in accordance with the
following formula:
1 )
2 )
3 )
The grantee shall submit to the City by september 1
of each year a report of the most recent ~PI
information for the twelve (12) month per10d
preceding the report.
The number of points of increase or decrease.i~
the CPI for said twelve (12) month period, d~V1ded
by the index base of one hundred (10~) shall ~
used as the total annual percentage 1ncrease 1n
the CPl.
The grantee may request and the City shall thereon
grant an annual rate adjustment in the amounts
requested by grantee, provided that:
The amount of such annual rate adjustment
a.
divided by the current subscriber rates ~hall
not exceed seventy-five ~ercent (~5%) of
the total annual percentage 1ncrease ~n the C~
I as determined under subparagraph (2)
above,
and
T~e gr~ntee provides the City with written
ts~at:men~s showing that the rate
in~urred bY~~hJustlfied ~y increased expenses
f 't
e grantee ln the operation
o ~ s CATV system.
4) The annual ra~e adjustment requested by the rantee
shall automatlcally become effective fort -f?
45) days after submission of grantee' s a~pl~~:tion
th:refor, ,un~ess the City Council makes prior
wrl.tten flndlngs that:
b.
a. Grantee's expenses have increased in a lesser
percentage amount than the increase in the
CPI.
b. Grantee's net profit has increased in a
greater percentage amount than the increase
in the CPI.
c. Grantee has not adequately served or serviced
the subscribers in the City, or is in material
breach of this ordinance or its franchise.
d. Grantee has not provided such sufficient
financial information upon which the City can
make the findings set out in Subsections a.
and b. above, and City identifies the additional
information necessary to make such findings,
c) Council Approval. Basic service rates and charges
shall not be increased, except under Subsection (b)
above or upon approval of the City Council in accordance
with the provisions of this section. Allowing an
increase in basic service rates and charges is a
legislative act.
1) Any application by the grantee for a rate increase
shall be accompanied and supported by the following
information:
a.Copies of financial balance sheets and income
statements for at least the preceding three
final years. These shall be audited, or
certified by the appropriate company financial
officer. If the grantee is a subsidiary of
another firm, similar financial data shall be
furnished for the parent corporation.
An itemization of capital assets, both tangible
and intangible, including,purchase dates ~nd
costs the accounting basls for depreciatlon
and the depreciation schedule, If intangible
assets such as goodwill are being amortized,
the amortization period shall be stated.
A detailed breakdown of operating, marketing
and general and administrative costs by
category for each of the three preceding
years.
b.
c.
4l~
d. The ~umber of subscribers for Basic CATV
serv~ce and pay-TV service for each of
the three preceding
years.e. The number of cable plant-miles
and dwelling units passed by the cable plant for
each of the three
preceding years.f. A statement as to any allocation of
funds to parent comp~ny overhead or
operating costs,and the bas~s for
such allocation.2) Upon receipt of a rate increase
request, accompanied by all of the supporting information of (
1) above,it shall be the obligation of the City
Council to act upon this request within a period of
150 days from the date upon which all
supporting material has been made available in adequate
form. Prior to taking action on the request, at
least one noticed public hearing shall be held upon
the
rate request.The Council shall approve, partially
approve or disapprove any increase of rates or
rates for additional services on the basis of
the
following considerations:a. Performance of the grantee in abiding
by the items of the ordinance
and franchise.b. Value of the service or
services provided.c. Rates for comparable service or
services in
surrounding communities.d. Quality
of service.e. Efficiency of
grantee
management.
f.
g.
Ji h.Revenues and profits from all
services offered.Depreciated original cost of th7
cab17 plant and associated equipment, All ~
ntang~ble assets for which costs have not
actually ~een expended, such as the value of th7
franch~se,oodwill and the value of the go~
ng concern,hall not be amortized as an expense,
and a return shall not be paid on any
of these values. Actual costs, such as
the purchase of a system above net book value,
may be amortized over a period of no~ less
th~n twenty years but the unamort~zed
port~on shall not be' included in any rate
base or rate of
return calculations.t f return on grantee'
s investment A fa~r ra
eo. d'd to investments hav~ng
correspon ~
ng
compare
risk.
The decision of the council approv~na ~r
the rate request shall be acc~mp,:,n~e
n
y
indicating the basis for the ec~s~o .
disapproving
findings
22-
3 )In the event a rate increase '
the grantee shall refrain fro~sapgr~nied ~s requested,
increases for a period f 'h
py ng or further
date of the prior f'l'
0 e~g teen months from the
ng, If the rate request is
den~ed, or a lesser increase than requested is
approved, th~ grantee shall refrain from applying
for further ~ncreases for a period of nine months
from the date of the prior filing.
Section 6834 Authority for Late Charges
The grantee may impose a late charge of one and one-
half percent (1~1/2%) P7r month, or the maximum rate
permitted by l~w, w~~chever ~s less, for each monthly payment not
paid wlth~n th~rty (30) days of the prescribed date of
required
payment.Section 6835 Authority for Certain Other
Charges If a subscriber of grantee shall become in arrears
more than forty-five (45) days in the payment of a
valid billing of , grantee ( grant7e shall ~ave the right, with
five days wr~tten pr~or not~ce, to d~sconnect subscriber
from its system. After such disconnection, if the
subscriber wishes future service from grantee, the subscriber shall
be obligated to pay the grantee the authorized reconnection
fee and
balance due.If, however, the grantee shall travel to the
subscriber's location and, prior to disconnection, the
subscriber shall pay grantee the arrearage in order to prevent
the disconnection,grantee shall be entitled to charge such subscriber
a fee not to exceed ten dollars ($10.00) for the
costs incurred.Section 6836 Limitation
on Charges a) The grantee shall receive no
consideration whatsoever for or in connection with its service to
its subscribers other than in accordance with
this
section.
b) If, in the future, the State of California or any other
public agency regulates t~e rates of th7 grant:e for ,
the service provided for ~n thls franch~se, thH sectlOn
shall be of no effect during such state regulation to
the extent of any conflict therewith.
c) The grantee shall credit or refund to the subscriber an
amount equal to one day's service ch~rge,for each d~y
service is interrupted whenever serv~ce lS not prov~ded
for a per iod of two (2) consecu ti ve days beg inning from
the time such outage is reported to th: grantee,
except when such outage is caused by clrcu~stances
outside of the grantee's control such as f~re, earthquake,
riot, and other similar circumstances.
Section 6837 Violations
a)From and after the effective date of this <;>rdinance, it
shall be unlawful for any person,to 7sta~1~sh, operate
or to carryon the business of d~str~but~ng to any
persons in this city any television signals or ra~io
signals by means of a CATV system unless a franchlse . ,
therefor has first been obtained pursuant,to ~he provls~ons
of this ordinance, and unlesS such franchlse lS in full
force and effect.
23-
b)From and after the effective date of this ordinance, it
shall be unlawful for any person to construct install
or maintain wi thin any public street in the city or
within any other pUblic property of the City or' within
any privately-owned area within the City whi~h has
not yet become a public street but is designated or
delineated as a proposed public street on any tentative
subdivision map approved by the City, any equipment or
facilities for distributing any television signals or radio
signals through a CATV system, unless a franchise
authorizing such use of such street or property or area has
first been obtained pursuant to the provisions of this
ordinance,and unless such franchise is in full force and
effect.c)It shall be unlawful for any person, firm or
corporation to make any unauthorized connection, or to
knowingly utilize an unauthorized connection, whether
physically,electrically, acoustically, inductively or
otherwise,wi th any part of a franchised CATV system within
this Ci ty for the purpose of taking or receiving
television signals, radio signals, pictures, programs, or
sound.It shall be unlawful for any person, firm, or
corporation to make any unauthorized connection, or to
knowingly utilize an unauthorized connection, whether
physically,electrically, acoustically, inductively or
otherwise,with any part of a franchised CATV system within
the Ci ty for the purpose of enabling h~mse~f or ot~ers
to receive any television signal, radJ.o s1.gnal, pJ.
cture~program or sound, without payment to the owner of saJ.
d
system.It shall be unlawful for any person, without the
consent of the owner, to willfully tamper with, remove
0: . ,injure any cables, wires oreq';lipment u~ed for d1.stnbutJ.
On of television signals, radio sJ.gnals, p1.ctures,
programs or
sound.
d)
e)Section 6838 Effect of Preemption or
Deregulation In the event the Federal Communications Commis~ion ~
r the Public Utilities Commission of the State of CalJ.forn1.
a or any other federal or state body or a~en~y ~ha~ 1 not
or hereafter shall exercise any paramount ]ur1.sd1.ct1.on ~ver
the subject matter of any franchise hereunder, then to t
e extent such juriSdiction s~all preemp~,~r p~~~lj~~i;~~
ction exercise of like jurisdict1.on by the 1. Yt d or
precluded of the City shall to the extent so preemp
e th
t 'cease and no longer exist; provided, ~~
ev~~'age~Cya~~
the deregulation by any federal or state, eYbY the City of
any preemption or preclusion of the,e~e:ch1.
s J.'mpair alter
or f . l' hall not d1.mJ.n1.
s , ,o 1.ts po J.ce power
s , ' f the rantee under
any affect any contractual obl1.gatJ.o~ Oth's r~spect any and
all franchise issued hereund7r; and 1.
n ~ion of gr~ntee and
any minimum standards govern1.n9 the ~
P~~:rges specified
herein and all maximum rates, rat1.os
an d r existing now and at
any or in any franchise issue~
hereun ~ime as such
paramount time in the future includ1.ng
such lude that of the City
in jurisdiction shall pr7empt or ~
r~~eges and authorities
of any and all powers ~ r1.ghts,
Pl:
1.~ r fix any of the same
are the City to determ1.ne, estab 1.S
0
each and all hereby declared by the Cit
accepting any franchise hereunder t bY and by any grantee
nature and to be for the benefi t ~f ~he
e ~ontractual in
situated therein, and agreement of
C~ty and all subscribers
f h
grantee to accept and
con orm to sue standards, rates, ratios a d h
hereby declared by the City and b an
n c arges ~s
franchise hereunder to be th Yt y g~antee accept~ng the
e mos mater~al and essential
cons~derat~on for the granting of such fran h' h ab
f h. h . h 1 '
c ~se, t e sence
o W ~c , ~n \v 0 e or ~n part, would cause the C' t h
granted such franchise. ~
y not ave
Section 6839 Use of Telephone Facilities
lhen and in the event that the grantee of any franchise
granted hereUl;der uses in his CATV system distribution
channels furnls~ed to the grantee by a telephone company
pursuant to tar~ff or contract on file with a regulatory
body having ,jurisdiction and said grantee makes no use of
the,s~r7et ~nd7pendent of such telephone company furnished
fac~l~tles, sa~~ ~rantee shall be required to comply with
all of the prov~s~ons hereof as a "permittee" and in such
event whenever the term "grantee" is used herein it shall be
deemed to mean and include "permittee." No provision of
this ordinance shall be deemed or construed as requiring the
gran~in'il of a franchise hereunder to a telephone company
furn~shlng such a channel service.
Section 6840 Franchise Nontransferable
Any such franchise shall be a privilege to be held in
personal trust by the original grantee, It cannot in any
7vent be sold, transferred, leased, assigned or disposed of,
n whole or in part, either by forced or involuntary sale,
or by voluntary sale, merger, consolidation or otherwise,
without the prior consent of the Council expressed by resolution,
after receipt of any proposed contractual documents, including
the consideration, and then only under such conditions as
may in said resolution be prescribed, Any such transfer or
assignment shall be made only by an instrument in writing, a
duly executed copy of which shall be filed in the office of
the City Clerk within thirty (30) days after any such transfer
or assignment. The said consent of the Council may not be
arbitrarily refused; provided, however, the proposed assignee
must show financial responsibility and must agree to comply
Iii th all provisions of this ordinance and of the franchise.
In order that the City may exercise its option to take ?ver
the facilities and properties of the CATV sys~emauthonzed
herein upon expiration or forfeitu~e of the, r1ghts, and ,
privileges of the grantee under th~s franch~se as ~s prov~ded
for herein the grantee shall not make, execute, or enter
into any d~ed deed of trust, mortgage, conditional sales
contract, or ~ny loan, lease, pledg7" sale, gift or similar
agreement concerning any of the fac~l~ties and property,
real or personal, of the CATV busin7ss ~ithout prior approva~
of the City Council upon its determ~t;a~~(:m that the t~ansactlOn
proposed by the grantee will not be ~n~m~cal to the r~ghts
of the City under this franchise. pr~vide~, ,however, that
this section shall not apply to the d~spos~t70n of worn out
or obsolete facilities or personal property ~n the normal
course of carrying on the CATV business. A request for
Council consent must be accompanied with a fee of $500,00 to
assist in defraying City investigation expenses.
25-
Prior aI?proval of the City Council shall be re uiredwhenown7rsh~p or control of more than thirty perce~t (30%)of the r~ght of control of grantee is acquired bft ' , y a per sonorgroup0perso~s ac ~ng ~n concert, none of whom alreadyownorcon~rol th~rty percent !30%) or more of such right ofcontrol, s~~gularly or collect~vely. By its acceptance ofthisfranch~se the,g7a~tee specifically grants and agreesthatany. such acqt;t~s~bon occur7ing without prior approvalofthe,C~ty Counc~l shall const~tute a violation of thisfranch~se by the grantee.
Section 6841 Safety Requirements
al The grantee shall at all times employ ordinary care andshallinstalla~d maintain in use commonly acceptedmethodsanddev~ces for preventing failures and accidentswhicharelikelytocausedamage, injuries, or nuisancestothepublic.
b) The grantee shall install and maintain its wires,
cables, fixtures, and other equipment in accordance
with the requirements of the National Electrical Code,
as it now exists or hereafter may be amended and in
such manner that they will not interfere with anyinstallationsoftheCityorofapublicutility servingtheCity.
cl All structures and all lines, equipment, and connections
in, over, under, and upon the streets, sidewalks,
alleys, and public ways or places of the City, wherever
situated or located, shall at all times be kept and
maintained in a safe, suitable, substantial condition,
and in good order and repair.
d) The grantee shall strictly adhere to all building and
zoning codes currently or hereafter in force. The
grantee shall arrange its lines, cables, and other
appurtenances on both public and private property, in
such a manner as to cause no unreasonable interference
wi th the use of said public or private property by any
person.
Section
6842 Removal of Facilities Upon Request Upon
termination of service to any subscriber, the ,grantee
shall promptly remove all its facilities and equ~pment from
the premises of such subscriber upon his request.Section
6843 Repair of streets and Public Ways Any
and all streets and public ways w~ich ar7 disturbed or
damaged during the construction, operat~on, ma~ntenance,or
reconstruction of the Cable Television System, shall be promptly
repaired by the grantee, at its expense, and to the satisfaction
of the grantor.Section
6844 Erection of Poles Prohibited The
grantee is expected to make use of e~isting aerial poles.
However, the grantee shall have the r~ght to erect Poles '
f wr'tten "is obtained from the grantor.perm~ss~on h
11 lease pole Exceptasmaybepermitted, the granteets ~tion The grantor spacefromexistingownersforallco~s t
r~
n
arriving at shallutilizeitsbestofficestoass~s equitable
rental agreement.26-
ection 6845 No Recourse Against City for Losses, etc.
he grantee sfh~tll hav7 no recourse whatsoever againstthec~ty or any 0 ~ s off~cers or employees for any 1
cost~, expense or,damages arising out of any provisiono~~,
requ~rement of th~s chapter, or said franchise or from
atte~pt at enforc7ment or clarification of any PrOViSio:
n~
r
requ~r7ment of th~s chapter, or the resolution granting the
franch~se, ,or the enforcement ~f this chapter or said franchise,
Any franch~se granted under th~s chapter shall not relieve
the grantee of any obligation involved in obtaining pole
space from any de~art~e~t of the ~ity, the utility companies,
or from others ma~nta~n~ng poles ~n streets as herein
defined, or other public easements or pUbli~ properties
Nothing in this chapter is to be construed as granting to
the grantee the right to cross or trespass upon in any
way, with cab 1 e or wi th any other type of struc~ure or
installation, property which is not public property or
within a suitable right-
of-way.Section 6846 Movement
of Facilities In the event it is necessary temporarily to
move or remove any of the grantee's wires, cables, poles
or other facilities placed pursuant to the franchise, in
order lawfully to move a large object, vehicle, building or
other structure over the streets, alleys or highways of the
grantor, grantee upon reasonable notice shall move at the expense
of the person requesting the temporary removal such of
his facilities as may be required to facilitate
such movements.Section
6847 services Services shall be offered to all City
residents in accordance with the provisions of the
franchise agreement.The grantee shall not materially reduce the level
of service without permission of the City, but may at
its discretion substitute programming to offer subscribers an
equal or better array
of services.Section 6 8 4 8 Special
Service Areas As defined in the franchise agreement, the
grantee shall be permitted to charge higher installation fees for
areas of low housing density, commercial ar~as and/or
un~erground areas that require exceptionally h~gh construct~
on costs.Upon petition by the grantee, the Council may ~
efer or indefinitely suspend any expansio~ into such a
spec~~l service area required by this ord~nance after a show~
n~ by ,grantee that such expansion would cause unreasona~le f~
nanc~al hardship to gran tee. The adequacy of such a ~how~ng
s~all be determined and weighed against the public. ~
nterest ~n system expansion by the Council after a publJ.
c hearing.Section 6849 Revocation
of Franchise d after due
notice to Any franchJ.se ~ssued,hereun
er ma~, It r dor ~uspended grantee and a public hear~ng be revoke , a
e e h f
11 i by the Council as it deems necessary on any of tea
ow
ng grOunds:a)For willful false or misleading statements
in, or material omission from,
any
J
b)F,or failure to file and maintain th beend, security or
lns';lrance, or pay franchise fees required under this
ordlnance.
c)For repeated failure, as determined b th
t' '1'
Y e
maln aln slgna quallty in accordance with
and FCC standards.
Council, to
this ordinance
d)For any sale, lease, assignment or transfer of control
of its franchise without consent of the Council.
For v~olation of material terms of this ordinance or
mater7al te:ms of a franchise agreement issued pursuant
to thl~ ordl~an~e such as, but not limited to, any
dela~ ln beglnnlng co~struction or excessive delay in
mee~lng the ~onstructl?n,schedule or delay in offering
aslc subs~rlber televl~lon and radio service or delay
ln completlng constructlon of the cable system.
If the grantee becomes insolvent, unable or unwilling
to pay its debts, or is adjudged a bankrupt or all or
part of grantee's facilities should be sold under an
instrumen~ t? sec';lre a debt and are not redeemed by
grantee Wlthln thlrty (30) days from said sale.
If the grantee attempts to or practices any fraud or
decei t in its conduct or relations under the franchise.
e)
f)
g)
h)If the grantee should fail to receive or to obtain all
necessary pole right agreements for any reason within
one (1) year after the effective date of the franchise
due to his own lack of diligence and effort.
If the grantee fails to meet any conditions established
in a franchise agreement or if the grantee fails to
perform as required in areas designated as grounds for
revocation in the franchise agreement.
i)
Upon determination by the City Manager that one or
more of the above grounds for revocation, alteration or
suspension of the franchise exists, the City shall
notify the grantee of that determination and shall
state the major causes and reasons supporting the
determination. The grantee shall be granted ten (10)
days to respond to the notification statement. T~e
City shall consider the response of the grantee, lf
any, and may terminate, postpone for,a period, or ,
proceed with the revocation, alteratlon or sUSpenSlon
process. If the City proceeds with the re~ocation,
alteration or suspension process, or reactlv~tes a
postponed proceeding, a statement of,revocatlo~,
alteration or suspension shall be WIltten statlng
the principle reasons for such action and a copy of the
statement shall be sent by registered, mail t? t~e
grantee at his principal place of buslness,wlthln,the
Ci ty. This statement and a notice of publ1c hearlng
shall be published in a newspaper of gener~l circulation
and a publ ic hearing shall be ~cheduled, thuty (30)
days after publ ication. The Cl ty councll shall take ,
final action on the revocation, alteration or,suspen~lon
of the franchise after completion of the publlC hearlng.
28-
t'lN~hSU~h re~olcation shall be effective unless or
un ~, e ounc~ shall have adopted a resolution
sett~ng forth ~he cause and reasons for the revocation
and the, effect~ve date thereof. In the event the
r7vo~at~on depends upon a finding of fact, such
hn~~ng of f<;tct as I?a~e by the City Manager or other
des~gnated C~ty off~c~al and reported to the Council
shall be stated in such resolution. '
Up~n revocation of a franchise, the City may by
resolut~on declare a forfeiture, whereupon all rights
of the holders of the franchise shall immediately be
divested without a further act upon the part of the
grantor, and the grantee shall forthwith remove its
structures or property from the streets and restore the
streets to such condition as the grantor may require
and upon fail ure to do so, the grantor may perform the
work and collect the cost thereof from the grantee.
Section 6850 Receivership
Upon the foreclosure or other judicial sale of all or a
substantial part of the CATV System, or upon the termination
of any lease covering all or a substantial part of the CATV
System, the grantee shall notify the City Clerk of such
fact, and such notification shall be treated as a notification
that a change in control of the grantee has taken place and
the provisions of this ordinance governing the consent of
the Council to such change in control of the grantee shall
apply.
The grantor shall have the right to revoke the franchise
one hundred and twenty (120) days after the appointment of a
receiver, or trustee, to take over and conduct the business
of the grantee, whether in receivership, reorganization,
bankruptcy, or other action or proceeding, unless such,
receivership or trusteeship shall have been vacated pr~or to
the expiration of said one hundred and twenty (120) days, or
unless:
b)
Ivi
thin one hundred and twenty (120) days after his election
or appointment, such receive~ ~r trustee shall have
fully complied with all the prov~s~ons of the franchise
and remedied all defaults thereunder; and Such
receiver or trustee, wi thin said one hundred and twenty (
120) days, shall have exec~te~ a~ a~ree~ent,duly
approved by the court having Jur~sd~ct~on ~n the premises,
whereby such receiver or truste7 ~ssumes and agrees
to be bound by each and every prov~s~on of the franchise.
a)
Section
6851 Authority of City to Terminate in the Event of
Condemnation In
order to preserve the right of the Ci~y under the franchise
provided for, and its right to acqu~re the prd~perty f
h by eminent doma~n procee ~ngs o
the grantee by purc ase or time
during the existence at
its then fair market value~ at any 'd
d that if at any of
the franchise, it is espec~ally pro~~ee rantee under the time
t~e franchise or the prop~rty o~ min~
nt domain proceedings franch~
se shall become the sUbJec~ oh ~l have the right at by
the City, the City reserves an s a at
an time the
time such proceedings are commenced, or 1
Yt'd
f nchise by reso u ~on.thereafter,
to terminate sa~ ra
Section 6852 Cont~n tui y of Service Mandatory
It shall be the right of all '
available services insofar as theisu~~cr~b7rs to receive all
obligations to the grantee are hon~r ~
nanc~al and other
the grantee elects to overbuild, reb~fid In t~e event that
the system, or the grantor revokes f ~ I
mod~fy, or sell
franchise, the grantee shall do eve~rt ~~ s,to,renew the
ensure that all subscribers receive ~
h~~g ~n ~ts ~wer to
service regardless of the circumstan
ont~nu?us, un~nterrupted
of the franchise. In the event of p~~~haurl~g the lifetime
or a change of grantee the curr
se y the grantor,
with the grantor to op~rate the :yn;tg~anftee shall cooperate
r 'od d' h' h '
e or a temporary
pe 1 , urlng w ~c t~me grantee shall receive f i d
reasonable compensation in maintaining cont' 't
ar
f
an
to all subscribers. ~
nUl y 0 service
Section 6853 Reports
a)Annual Report. No later than April
the grantee shall present a written
gran'tor which shall include:
1) A certified financial report for the previous
calendar year, including gross revenues from all
sources, gross subscriber revenues from each
category of service, net income and end-
of-year
balance sheet.15 of
each year,report
to the 2) ~ summ~ry of the previous year'
s activities ncludlng, but not limited to,
subscriber totals and
new services.3) A summary of complaints received
and handled.4) Projected plans for
the future.Section 6854 Maintenance
and Complaints al The grantee shall maintain an office in the
City which shall be open during all usual business hours
and have a publicly listed toll-free telephone
to accept subscriber complaints. A written log shall
be maintained listing all complaints
and their dispositions.b) The grantee shall render efficient
service, make repairs promptly, and interrupt service only for
good cause and for the shortest time
possible. Such interruptions,insofar as possible, shall be preceded
by notice and shall occur during period of minimum use
of the system.A written log shall be maintained
for
all service interruptions.c) The grantee shall maintain a repair
force of technicians capable of responding to
subscriber complaints or requests for service within twenty-
four (24) hours, or such other reasonable time period
as determined by the Ci ty Manager, after receipt of
a written, comp~aint,except in the case of natural
disaster, ln WhlCh case the grantee shall use its
best efforts. No charge shall be made to the
subscriber
d)The grantor shall ensure that all subscrib randmembersofthegeneralpublichavereceus, prtogramllllilrs,t' f t h ' 0 rse 0 asa, J.S ac ory earJ.ng of any complaints, where there illeVJ.dence that the grantee has not settled th 1 'e comp aJ.nttothesatJ.sfachon of t~e person initiating the complaint.The g:antor sha~l establJ.sh procedures for handlin dsetthngcomplaJ.nts. g an
e)A subscriber whose complaints have not been satisfiedshallhavetherighttofileacomplaintinwritingwiththeCity.
f)If a s';lbscriber file~ in writing with the grantor a
complaJ.nt for a servJ.ce problem, which is preventable
and reasonably within the grantee's control as determined
by the City Manager, and if such grantee fabs within
twenty-four (24) hours, or such other reasonable
time peri~d as det~rmined b~ the City Manager,
following receJ.pt of wrJ.tten notJ.ce by the grantor to remedy
the problem, the City Manager may levy a fine of up to
one hundred dolla.rs ($100) fer any occurrence or series
of related occurrences. Such fines may be collected
by the City from the Security
Fund.g)In the event that a grantee's rates and charges
and rate structures are deregulated pursuant to Federal
or State legislation or court or City Council action, if
a subscriber files in writing with the grantor a
complaint for a service problem which is preventable and
reasonably within the grantee's control, as determined by the
City Manager, and if such grantee fails wi thin
twenty-four 24) hours, or such other reasonable time
period as determined by the City Manager, following
receipt of written notice by the grantor to remedy
the problem,the City Manager may levy a fine of up to
five hundred dollars ($500) for any occurrence or series
of related occurrences. Such fines may be collected by
the City from the Security Fund. If the franchisee
objects to the fine in writing to the grantor, the
grantee and grantor shall conduct arbitration in
accordance with the rules of the American Arbitration
Association, The decision of the arbitrator shall
be final.Section 6855 Riqhts Reserved to
the Grantee Riqht of Appeal to Grantor. Should theg:
antee become dissatisfied with any material decision or rulJ.n~
of,the City Manager or staff pertaining to cable communJ.ca~
J.on matters, the grantee may appeal the ~atter to the
CJ.ty Council. The Council may accept, reJect, or
modify the,decision of its City Manager or Staff. If the
grantee lS dissatisfied with the results of such app~al,
the grant7e may pursue such other remedies as are avaJ.lable, ~
nc~ud7ng,the bringing of action in any court of
competent )
32-
section
6856 Rights of Individuals Protected a)
Discriminatory Practices Prohibited. The grantee shall not
deny servlce, deny access or otherwl's d' i'b' ,
e
lser mlnate agalnst
sU,scrlbers, programmers, or general citizens on
the basls of race, color, religion, national origin,sex
or age. The grantee ~hall strictly adhere to the equal
employment opportun7ty requirements of the Federal Government,
as expressed ln Section 76.13(a) (8) and 76.
311 ?f Chapter I of Ti tl e 47 of the Code of Federal Regulatlons.
The grantee shall comply at all times with
all other,applicable Federal, State, or City laws,and ~
ll 7x~cut7ve and administrative orders relating to nondlscrlmlnatlon.
b)
Subliminal Transmission Prohibited, No subliminal transmission
shall be utilized at any time, for any purposes
whatsoever.c)
Privacy and Other Human Rights. The grantee and the grantor
shall maintain constant vigilance with regard to
possible abuses of the right of privacy or other human
rights of any subscriber, programmer, or general citizen
resulting from any device or signal associated with
the Cable Television System, The grantee shall not
place in any private residence any equipment capable of
two-way communications without the written consent
of the residents, and will not utilize the two-
way communications capability of the system for
unauthorized subscriber surveillance of any
kind.d) Permission of Property Owner Required. No cable,
line,wire, amplifier, converter, or other piece of
equipment owned by the grantee shall be installed by the
grantee wi thout first securing the written permission of
the owner of any property involved, except for
utility easements and utility rights-of-way.
If such permission is later revoked, whether by the original
or a subsequent owner, the grantee shall remove forthwith
any of its equipment which is both visible and
movable and promptly restore the property to
its original condition,e) Sale of Subscriber Lists Prohibited.
The grantee shall not sell, or otherwise make available,
lists of ~he names and addresses of its subscribers,
or any IlSt which identifies, by name,
subscriber viewing habits,to any person, agency, or enti~y, fora~
y p';lrpose whatsoever, without the speciflc
authorlzatlon,of the,grantor, expressed by resoluti?n, after,a
publl~ hear~ng which shall be announced by wrltten
notlce publlshed ln a newspaper of general circulation at
least ~en (10)consecutive days before the date
of the hearlng.Section
6857 Federal Regulation Any lawful modifications resulting
from amendment of Section 76.31 ("Franchise Standards") of the
R';
lle~ and e Regula'tions of the Federal
Communications
Commlsslon ar h h' "f h' e as of
the date suc ereby lncorporated lnto
thlS ranc lS ,Odifications become obligatory ~nder FCC,r~g~
la~t~~~~ ~~e ln the event no obligatory date
lS
establlS e,' 1 year of FCC adoption or at the time
of franchlse renewa ,
r
section 6858 Franchise Agreement
The franchise shal ~ be evidenced by an executed franchise
agreement betwee~ the C~ty and the grantee. The franchise
agreement shall ~ncorporate the terms of this ordinance and
the grantee's franchise application. Any conflict between
the two shall be specifically resolved in the franchise
agreement.
Section 6859 Separability and Severability
If any material section of this ordinance or the
franchise a~reem~nt, as determined by the City Council, is
held to be ~nval~d or pre-empted by Federal or State
regulations or laws, the grantor shall have the option to terminate
or modify this ordinance or the franchise agreement. If
any of the provisions of this ordinance or the
application thereof to any person or circumstances is held invalid by
a competent judicial agency, such invalidity shall not
effect other provisions or applications of the ordinance which
can be given effect without the invalid provision or
application.To this end, the provisions of this ordinance are
declared severable at that time. The invalidity of any portion
of this ordinance shall not abate, reduce or otherwise
effect any consideration or other obligation required of the
grantee of any franchise granted
hereunder.Section 6860 publication
Costs The grantee shall assume the cost of publication
of this franchise as such publication is required by law
and such is payable under the grantee's filing of acceptance
of this
franchise.SECTION
II:This ordinance shall be published once within fifteen (
15)days after its passage in the Orange City News~ a news~aper
of general circulation, published and circulated ~n the C~ ty
of Orange, and shall take effect thirty (30) days from and
after the date of its final
passage.ADOPTED this 10th day of1979.Jill
v Mayor of the city il/
b-of Ora
ge
ATTEST:CHARLOTTE M, JOHNSTON.
CMC City.~lerk0.3 f the Cit~f
Orange BY: ~~~~.-
J~Wanda H, Moore, Deputy City
Clerk
33-
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF ORANGE )
I, CHARLOTTE M. JOHNSTON, CMC, City Clerk of the City of Orange,
California, DO HEREBY CERTIFY that the foregoing ordinance was intro-
duced at a regular meeting of the City Council duly held on the 26th
day of June, 1979, and thereafter at a regular meeting of said City
Council duly held on the 10th day of July, 1979, was duly passed and
adopted by the following vote, to wit:
AYES:
NOES:
ABSENT:
COUNCILMEN:
COUNCILMEN:
COUNCILMEN:
BARRERA, SMITH, MAYOR 1I0YT, PEREZ, BEAM
NONE,
NONE,
WITNESS my hand and seal this 11th day of July, 1979,
Charlotte M, Johnston, CMC
City Clerk of the City of Orange
BY: WANDA II, MOORE, Deputy City
Clerk