Sec. 5-27. Rate regulation and consumer protection.

   (1)   Scope and applicability. The city reserves all rights to implement and impose regulation of a franchisee's rates and charges to the maximum extent permitted by law, and may do so by amendment to this chapter, by amendment to a franchise agreement, or in any other lawful manner.

   (2)   Rate regulation procedures. Rate regulation shall be performed in accordance with the rules and regulations of the FCC. The city manager, or his designee, may take any required steps to file complaints, toll rates, issue accounting orders or take any other steps required to comply with FCC regulations. The city commission shall be responsible for issuing final rate orders that establish rates or order refunds. No rate may be put into effect without the prior review and approval of the city, except as federal law may otherwise require.

   (3)   Rate discrimination prohibited. Except to the extent the city may not enforce such a requirement, a franchisee is prohibited from discriminating in its rates or charges or from granting undue preferences to any subscriber, potential subscriber, or group of subscribers or potential subscribers; provided, however, that a franchisee may offer temporary, bona fide promotional discounts in order to attract or maintain subscribers, so long as such discounts are offered on a non-discriminatory basis to similar classes of subscribers throughout the franchise area; and a franchisee may offer discounts for the elderly, the disabled, or the economically disadvantaged; and such other discounts as it is expressly entitled to provide under federal law, if such discounts are applied in a uniform and consistent manner. A franchisee shall comply at all times with all applicable federal, state, and city laws, and all executive and administrative orders relating to non- discrimination.

   (4)   Cable consumer protection standards. Each franchisee must satisfy cable consumer protection standards established by the city from time to time by ordinance or by resolution. In addition, each franchisee shall at all times satisfy any additional or stricter requirements established by applicable law including, without limitation, FCC customer service standards and consumer protection laws.

(Ord. No. 00-31, § 1, 6-20-00) Penalty, see Section 5-11

Sec. 5-28. Franchise fee.

   A franchisee shall pay to the city a franchise fee in an amount equal to five percent (5%) of gross revenues.

(Ord. No. 00-31, § 1, 6-20-00) Penalty, see Section 5-11

Sec. 5-29. Transfers.

   (1)   City approval required. No transfer shall occur without prior written notice to and approval of the city commission. Transfer without the prior written approval of the city shall be considered to impair the city's assurance of due performance. The granting of approval for a transfer in one instance shall not render unnecessary approval of any subsequent transfer.

   (2)   Application.

      (A)   The franchisee shall promptly notify the city of any proposed transfer. If any transfer should take place without prior notice to the city, the franchisee will promptly notify the city that such a transfer has occurred.

      (B)   At least one hundred twenty (120) calendar days prior to the contemplated effective date of a transfer, the franchisee shall submit to the city an application for approval of the transfer. Such an application shall provide complete information on the proposed transaction, including details on the legal, financial, technical, and other qualifications of the transferee, and on the potential impact of the transfer on subscriber rates and service. At a minimum, the following information must be included in the application, provided that a franchisee is not required to duplicate information that it submits to the city to comply with its obligations under federal or state law:

         1.   All information and forms required under federal law or the equivalent of such forms if no longer required by federal law;

         2.   All information required in Sections 5-24(2)(A) and 5-24(2)(E)-J. of this chapter;

         3.   Any contracts or other documents that relate to the proposed transaction, and all documents, schedules, exhibits, or the like referred to therein to the extent that such documentation is required by the FCC;

         4.   Any shareholder reports or filings with the Securities and Exchange Commission (SEC) that discuss the transaction;

         5.   Other information necessary to provide a complete and accurate understanding of the financial position of the cable system before and after the proposed transfer;

         6.   Complete information regarding any potential impact of the transfer on subscriber rates and service;

         7.   A brief summary of the proposed transferee's plans for at least the next five (5) years regarding line extension, plant and equipment upgrades, channel capacity, expansion or elimination of services, and any other changes affecting or enhancing the performance of the cable system.

      (C)   For the purposes of determining whether it shall consent to a transfer, the city or its agents may inquire into all qualifications of the prospective transferee and such other matters as the city may deem necessary to determine whether the transfer is in the public interest and should be approved, denied, or conditioned as provided under Section 5-29(3). The franchisee and any prospective transferees shall assist the city in any such inquiry, and if they fail to do so, the request for transfer may be denied.

   (3)   Determination by city. In making a determination as to whether to grant, deny, or grant subject to conditions an application for a transfer of a franchise, the city shall consider the legal, financial, and technical qualifications of the transferee to operate the cable system; any potential impact of the transfer on subscriber rates or services; whether the incumbent cable operator is in compliance with its franchise agreement and this chapter and, if not, the proposed transferee's commitment to cure such noncompliance; whether the transferee owns or controls any other cable system in the city, and whether operation by the transferee may eliminate or reduce competition in the delivery of cable service in the city; and whether operation by the transferee or approval of the transfer would adversely affect subscribers, the public, or the city's interest under this chapter, the franchise agreement, or other applicable law.

   (4)   Transferee's Agreement. Subject to any transitional provisions that may apply, no application for a transfer of a franchise shall be granted unless the transferee agrees in writing that it will abide by and accept all terms of this chapter and the franchise agreement, and that it will assume the obligations, liabilities, and responsibility for all acts and omissions, known and unknown, of the previous franchisee under this chapter and the franchise agreement for all purposes, including renewal, unless the city, in its sole discretion, expressly waives this requirement in whole or in part.

   (5)   Approval does not constitute waiver. Approval by the city of a transfer of a franchise does not constitute a waiver or release of any of the rights of the city under this chapter or a franchise agreement, whether arising before or after the date of the transfer.

   (6)   Exception for intra-company transfers. Notwithstanding the foregoing, a franchise agreement may provide that transfers to affiliates of a franchisee shall be excepted from the requirements of Section 5-29(1) and (2) where the affiliate is wholly-owned and managed by an entity that will guarantee the performance under a franchise agreement; and, subject to any transitional provisions that may apply the transferee affiliate:

      (A)   Notifies the city of the transfer at least sixty (60) calendar days before it occurs and, at that time provides the agreements and warranties required by this section, describes the nature of the transfer, and submits complete information describing who will have direct and indirect ownership and control of the cable system after the transfer;

      (B)   Warrants that it has read, accepts and agrees to be bound by each and every term of the franchise and related amendment, regulations, ordinances and resolutions then in effect;

      (C)   Agrees to assume all responsibility for all liabilities, acts and omissions known and unknown of its predecessor franchisees for all purposes, including renewal;

      (D)   Agrees that the transfer shall not permit it take any position or exercise any right which could not have been exercised by its predecessor franchisees;

      (E)   Warrants that the transfer will not substantially increase the financial burdens upon or substantially diminish the financial resources available to the franchisee (the warranty to be based on comparing the burdens upon and resources that will be available to the transferee compared to its predecessors), or otherwise adversely affect the ability of the franchisee to perform;

      (F)   Warrants that the transfer will not in any way adversely affect the city or subscribers (including by increasing rates);

      (G)   Notifies the city that the transfer is complete within five (5) business days of the date the transfer is complete; and

      (H)   Agrees that the transfer in no way affects any evaluation of its legal, financial or technical qualifications that may occur under the franchise or applicable law after the transfer, and does not directly or indirectly authorize any additional transfers.

(Ord. No. 00-31, § 1, 6-20-00) Penalty, see Section 5-11