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(A) Upon an award of a franchise, and the subsequent execution of a franchise agreement, a cable operator may construct, install, maintain, operate, repair, replace, remove or restore a cable system within the geographical limits set forth in the franchise agreement.
(B) The franchised cable system may utilize the streets, rights-of-way, easements and public ways of the city.
(C) The franchised operator shall be responsible for obtaining its own easements for private property, including privately-owned utility or street light poles.
(D) A franchised operator, through a separate pole or utility easement agreement with an affected utility, may locate the cable system on, or within, the property of the utility company.
(Prior Code, § 110.088) (Ord. 13-08, passed 6-3-2013)
The city may develop rules and regulations with respect to the submission and processing of applications for a franchise. The rules and regulations shall primarily be aimed at determining the legal, financial, technical and character qualifications of the applicant. Unless otherwise prohibited by law, the rules and regulations may require an applicant to pay an application fee which shall be equal to the administrative costs associated with processing an application for a franchise. If required, the total application fee must be paid prior to the Council’s formal action on the franchise application and shall not be subject to refund. No application fee shall be required to renew an existing franchise provided that the cable operator has satisfactorily complied with the provisions of this subchapter and the franchise agreement.
(Prior Code, § 110.090) (Ord. 13-08, passed 6-3-2013)
(A) During the term of the franchise, a franchised operator shall pay to the city a sum of money equal to 5% of the annual gross revenues accruing from cable services rendered within the city. To the extent consistent with applicable law, payments of compensation made by a franchised cable operator to the city, pursuant to the provisions of this subchapter, shall be considered in addition to, and exclusive of, any and all authorized taxes, business license fees, other fees, other levies or assessments presently in effect or subsequently adopted. The franchise fee is for the privilege of using the streets, rights-of-way, easements and public ways and other facilities of the city in the operation of the cable system, and for the city’s supervision during the term of the franchise. If the FCC, Congress or other governmental entity with authority over cable service allows a franchising authority to increase the franchise fee beyond the above percentage, then the city shall have the authority to increase the franchise fee to any new maximum stated rate allowable. It is intended that the franchise fees will promote the health, safety and welfare of the citizens of the city. Accordingly, the franchise fee shall be deposited into the general revenues of the city, unless otherwise specified.
(B) (1) Within 45 days after the end of each reporting quarter, a franchised operator shall file with the city a detailed report clearly showing the gross revenues received by the franchised operator for operations within the city during the proceeding reporting quarter and certified by an authorized representative of the franchised operator attesting to the accuracy of the revenue figures. The report shall be in a form mutually agreed upon by the city and the cable operator.
(2) The report shall include revenue from whatever source, directly or indirectly derived from the operation of the cable system, to provide cable service. Revenue may be reported in the aggregate for the total franchise service area by general service type or source. This report shall specifically identify in detail the sources and amounts of all gross revenues received by a franchisee during the quarter for which payment is made. It is specifically understood that the right of audit and re-computation of any and all amounts paid shall be accorded to the city for five years following payment.
(C) In the event that payment is not made within 60 days after the end of a reporting quarter, then the cable operator may be declared in default of the franchise, and the city may take action against the cable operator as authorized in this subchapter.
(D) The acceptance of any payment shall not be construed as a release of, or an accord or satisfaction of, any claim that the city might have for further or additional sums payable under the terms of this subchapter, or for any other performance or obligation of a franchised operator.
(E) To the extent consistent with applicable law, payments of compensation made by a franchised operator to the city pursuant to this subchapter shall be considered in addition to, and exclusive of, any and all authorized taxes, business license fees or other levies or assessments presently in effect or later adopted.
(F) Franchise fee under this subchapter shall include all items included as a franchise fee under federal law and does not include any item excluded by federal law.
(G) If at any time, the concept of franchise fees are deemed illegal, or unconstitutional, the franchising authority may, if permitted by law, impose an alternative user charge, or excise fee, at a rate not in excess of those fees designated franchise fees and described herein, on the franchised cable system operator.
(Prior Code, § 110.091) (Ord. 13-08, passed 6-3-2013)
(A) To the extent that federal or state law or regulation may now, or as the same may hereafter be amended to, authorize the city to regulate the rates for any particular service tiers, service packages, equipment or any other services provided by the cable operator, the city shall have the expressed right to exercise rate regulation to the full extent authorized by law, or to refrain from exercising such regulation for any period of time, at the sole discretion of the city.
(B) The cable operator shall, however, comply with all state and federal laws, regulations and orders of courts regarding any reduction in fees imposed on the cable operator.
(Prior Code, § 110.092) (Ord. 13-08, passed 6-3-2013)
(A) A cable operator’s franchise may not be assigned in whole or in part without the city’s prior written approval. For purposes of this section, ASSIGNMENT shall mean the transfer, sale or any other form of assignment of a cable operator’s franchise, to include any transaction or action which effectively or actually changes ownership from one person or entity to another to include the transfer of 50% or more of the ownership interest of an entity. Any attempted assignment without prior written approval shall constitute a default in the franchise.
(B) A proposed assignment shall be subject to the following.
(1) At least 120 days before a proposed assignment is scheduled to become effective, the franchised operator shall make a written request to the Council for the city’s approval of the proposed assignment.
(2) The city will not unreasonably withhold its consent to an assignment. However, in making its determination, the Council may consider the following criteria:
(a) Qualifications of the proposed assignee;
(b) Financial ability and stability of the proposed assignee;
(c) The experience of the proposed assignee which may include conducting an investigation of the proposed assignee’s record in other communities;
(d) Legal integrity of the proposed assignee or transferee;
(e) Information from the proposed assignee willingness to abide by the terms of the franchise; and
(f) The corporate connection, if any, between the franchised operator and the proposed assignee.
(C) Nothing in this section shall restrict the city from considering other reasonable criteria allowed under law, and in particular, any criteria established under state or federal law, rule or regulation.
(D) Before an assignment or transfer is approved by the city, the proposed assignee shall execute an affidavit that it has read, understood and intends to abide by any existing franchise agreements along with stipulated conditions, covenants, liabilities, obligations and provisions associated with the cable operator’s regulatory, statutory or contractual requirements.
(E) The city may condition such transfer upon such reasonable terms and conditions as it deems appropriate including curing of any outstanding defaults; provided, however, that any such terms and conditions shall be related to the legal, technical and financial qualifications of the prospective controlling party or transferee.
(F) In the event of an assignment, the former franchised operator shall remain liable for any franchise fees incurred for the period while it was franchisee, subject to the application of the state statute of limitations.
(G) (1) Consent shall not be required for an assignment to any entity controlled by, controlling or under common control of the cable operator.
(2) In addition, consent shall not be required for the granting of a security interest in the cable operator’s system including its franchise. However, if the holder of the security interest repossesses, forecloses or takes other action concerning its collateral, it shall dispose of the system within a reasonable period of time and the disposition by the holder of the security interest shall be considered an assignment subject to the provisions of this section.
(Prior Code, § 110.093) (Ord. 13-08, passed 6-3-2013)
To the extent permitted by law, and in order to fulfill an educational and governmental access policy that will facilitate the long range needs of the community, each cable operator shall provide at its own expense one 24-hour per day education/government (EG) channel for the use of the city’s public school system, any state-accredited private or parochial school within the service area and the city and other franchising authorities served by the cable system.
(Prior Code, § 110.094) (Ord. 13-08, passed 6-3-2013)
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