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(A) Duration period. The duration of the rights, privileges, and authorizations hereby granted shall be no more than 15 years from the date the franchise is awarded. Renewal procedures shall be as set forth in Title VI of the Communications Act of 1934 (as from time to time in effect) and other applicable state or federal law. In the absence of such laws, the franchise may be renewed by the city upon application of the Grantee pursuant to the procedure established in division (B) of this section and in accordance with the then applicable law.
(B) Renewal procedures.
(1) At least 15 months prior to the expiration of the franchise, the Grantee shall inform the city in writing of its intent to seek renewal of the franchise and thereupon file with the city a proposal for services.
(2) After giving public notice, the city shall proceed to determine whether the Grantee has satisfactorily performed its obligations under the franchise. To determine satisfactory performance, the city shall consider technical developments and performance of the system, programming, other services offered, cost of services, and any other particular requirements set in the chapter; also, the city shall consider the Grantee's proposal and its annual reports made to the city and the FCC; industry performance on a national basis shall also be considered. Provision shall be made for public comment.
(3) A four-month period shall be provided to determine the Grantee's eligibility for renewal.
(4) The city shall then prepare within two months any amendments to this chapter that it believes necessary.
(5) If, based upon the Grantee's performance during this franchise term, the Grantee's new proposal, and report thereon, and the public hearings, the Council finds a renewal of the franchise with the Grantee is in the public interest, Council may enter into a renewal of the franchise with the Grantee under terms and conditions as are appropriate and for an additional term not to exceed 15 years.
(6) In the event the Grantee is determined by the city to have performed satisfactorily, new applicants may be sought and evaluated and a franchise award may be made by the city.
(‘83 Code, § 123.03) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96)
The franchise is for the present territorial limits of the city and for any area henceforth added thereto during the term of this franchise, but excluding areas that are within the territorial limits solely due to agreements executed under the authority of Public Act 425 of 1984, being M.C.L.A. 124.21 through 124.49, unless the Act 425 Agreement expressly so provides and a Grantee desiring to serve such area consents thereto.
(‘83 Code, § 123.04) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96)
(A) Within 18 months from the date of award of a franchise, a Grantee must make cable television service available to every dwelling unit within the city.
(C) With respect to requests for connection requiring an aerial drop line in excess of 150 feet, the Grantee must extend and make available cable services to the residents at a connection charge not to exceed the actual installation costs incurred by the Grantee for the distance exceeding 150 feet.
(‘83 Code, § 123.05) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96) Penalty, see § 121.99
(A) The Grantee shall construct, install, operate, and maintain its Cable Communications System in a manner consistent with all applicable laws, ordinances, construction standards, governmental requirements, FCC technical standards, and with all detailed standards submitted by the Grantee as part of its application (if any), which standards are incorporated by reference herein. In addition, the Grantee shall provide the city, upon request, with a written report of the results of the Grantee's annual proof of performance tests or other tests conducted pursuant to FCC standards and requirements.
(B) Construction, installation, and maintenance of the cable communications system shall be performed in an orderly and workmanlike manner. All cables and wires shall be installed, where possible, parallel with electric and telephone lines. Multiple cable configurations shall be arranged in parallel and bundled with due respect for engineering considerations.
(1) The Grantee shall at all times comply with the following.
(a) National Electrical Safety Code of the Institute of Electrical and Electronic Engineers.
(b) National Electrical Code of the National Fire Protection Association.
(c) Bell System Code of Pole Line Construction.
(d) Applicable FCC or other federal, state and local regulations.
(e) The charter and ordinances of the city including provisions regulating public utility franchises.
(2) The Grantee's cable communications system shall be located, erected, and maintained so that none of its facilities shall endanger or interfere with the lives of persons or property, or interfere with any improvements the city may deem proper to make, or unnecessarily hinder or obstruct the free use of streets, alleys, easements, or public property.
(C) The following shall apply to Grantee's testing and compliance with the FCC regulations relating to cable television technical standards currently set forth in 47 CFR 76, subpart K.
(1) The Grantee shall provide city with a report of its testing for compliance with the regulations upon request.
(2) The Grantee shall establish the following procedure for resolving complaints from subscribers about the quality of the television signal delivered to them: all complaints shall go initially to a person designated by the Grantee. All matters not resolved by that person shall at the Grantee's or the subscriber's option be referred to the city for it to resolve. All matters not resolved by the city may be referred to the FCC for it to resolve. The Grantee shall annually notify its subscribers of the preceding.
(‘83 Code, § 123.06) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96) Penalty, see § 121.99
(A) A franchise shall not be assigned or transferred, either in whole or in part, or leased, sublet, or mortgaged in any manner, nor shall title thereto, either legal or equitable or any right, interest, or property therein, pass to or vest in any person without the prior written consent of the city. The proposed assignee or transferee must show financial responsibility as determined by the city and must agree to comply with all provisions of the franchise. The city shall not unreasonably withhold its consent to a proposed transfer or assignment. The city may charge the assignee or transferee a reasonable fee to assume the franchise consistent with the original franchise fee and to cover all reasonable costs incurred in assuring itself that the assignee or transferee is as qualified to administer the cable system as the original Grantee. The city may in a franchise provide for special and relaxed procedures for transfers or assignments to affiliates of a Grantee.
(B) The Grantee shall promptly notify the city of any actual or proposed change in, or transfer of, or acquisition by any other party of control of the Grantee. The word CONTROL as used herein is not limited to major stockholders but includes actual working control in whatever manner exercised. There may be no change in, transfer of, or acquisition of control without the prior consent of the city, which will not unreasonably be withheld, and any such alteration in control without consent shall make the franchise subject to revocation. For the purpose of determining whether it shall consent to a change, transfer, or acquisition of control, the city may inquire into the qualifications of the prospective controlling party, and the Grantee shall assist the city in any inquiry; and the party shall assume all reasonable costs incurred by the city in so doing.
(C) The consent or approval of the Council to any transfer or assignment of the franchise shall not constitute a waiver or release of the rights of the city in and to the streets, and any transfer or assignment shall, by its terms, be expressly subordinate to the terms and conditions of this franchise.
(D) In the absence of extraordinary circumstances, the city will not approve any transfer or assignment of the franchise or change in control prior to substantial completion of construction of a proposed system.
(E) The Council reserves the right, consistent with federal law, to review the purchase price of any transfer or assignment of the cable system. Any assignee to this franchise expressly agrees that any negotiated sale value which the Council (acting upon professional advice) deems unreasonable will not be considered in the rate base for any subsequent request for rate increases.
(F) In no event shall a transfer of ownership or control be approved without the successor in interest becoming a signatory to the franchise agreement.
(‘83 Code, § 123.07) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96) Penalty, see § 121.99
A Grantee shall comply with any applicable cable television rate regulation ordinances.
(‘83 Code, § 123.08) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96) Penalty, see § 121.99
(A) For the reason that the streets to be used by the Grantee in the operation of its cable communications system within the boundaries of the city are valuable public properties acquired and maintained by the city at great expense to its taxpayers, and that the grant to the Grantee of the right to use the streets is a valuable property right without which the Grantee would be required to invest substantial capital in right-of-way costs and acquisitions, and because the city will incur costs in regulating and administering the franchise, and at the option of the Council, the city may make available a portion of the franchise fee to further the development of public and community uses of cable TV, a Grantee shall pay to the city an amount equal to 5% of the Grantee's annual gross revenues.
(B) The city may by franchise agreement increase the effective percentage rate or rates applicable to a particular Grantee.
(C) The franchise fee and any other cost or penalties assessed shall be payable quarterly to the City Treasurer, in accordance with the Grantee's fiscal year. The Grantee shall file a complete and accurate verified statement of all gross revenues during the period for which a quarterly payment is made, and the payment shall be made to the city not later than 30 days after the expiration of each quarter.
(D) The city shall have the right to inspect and audit the Grantee's records to recompute any amounts determined to be payable under this chapter; provided, however, that the audit shall take place within 36 months following the close of each of the Grantee's fiscal years. Any additional amount due to the city as a result of the audit shall be paid within 30 days following written notice to the Grantee by the city (which notice shall include a copy of the audit report), unless contested by the Grantee within those 30 days.
(E) In the event that any franchise fee payment or recompute amount, cost, or penalty, is not made on or before the applicable dates heretofore specified, interest shall be charged dally from the date at the annual rate of either 12% or the current prime interest rate, whichever is greater.
(‘83 Code, § 123.09) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96) Penalty, see § 121.99
(A) The cable television system shall have at least 35 channels available for immediate use.
(B) The system shall maintain a plant having the technical capacity for return, or two-way communications.
(C) Subject to division (E) of this section, a Grantee shall maintain the following for the length of the franchise.
(1) At least one specially-designated, noncommercial public access channel available on a first- come, nondiscriminatory basis at no cost to users.
(2) At least one specially-designated channel for use by local educational authorities at no cost to users.
(3) At least one specially-designated channel for local government's uses at no cost to users.
(4) At least one specially-designated channel for leased access uses; provided, however, these uses may be combined on one or more channels until such time as additional channels become necessary.
(5) At least one specifically-designated channel available to senior citizens' programming.
(D) Subject to division (E) of this section, a Grantee shall have available within the city equipment for local production and presentation of cablecast programs other than automated services, and shall permit its use for the production and presentation of public access programs.
(E) The city may by franchise agreement modify the requirements of division (C) and/or (D) for a particular Grantee. However, at minimum such a Grantee shall provide and maintain for the length of the franchise agreement, at no cost to the city or users, at least three channels, available 24 hours per day, whose use the city will allocate among some or all of the following types of uses, as the city from time to time determines best meets the cable-related needs of the city and its residents.
(1) Public access usage.
(2) Usage by local public K-12 schools.
(3) Usage by the city.
(4) Usage by the Garden City Osteopathic Hospital.
(5) Usage by and for senior citizens.
(6) In addition, a Grantee shall maintain for the length of the franchise agreement one educational channel for use by Schoolcraft Community College, Garden City Campus, 24 hours per day, at no cost to that user, unless the need for such an educational channel is removed by the Grantee otherwise providing (by leased access or otherwise) the user a channel on the Cable Communications System.
(F) (1) A Grantee shall comply with applicable federal rules relating to emergency alert systems.
(2) In the absence of such rules a Grantee shall incorporate into its cable television system the capacity which will permit the city, in times of emergency, to override, by remote control, the audio of all channels simultaneously. The Grantee shall designate a channel which will be used for emergency broadcasts of both audio and video. The Grantee shall cooperate with the city in the use and operation of the emergency alert override system.
(G) (1) The Grantee may be required to interconnect its system with other broadband communications facilities. The interconnection shall be made within the time limit established by the city, which time limit shall be extended as necessary to obtain needed cooperation of third parties. The interconnection shall, at the city's discretion, be accomplished according to the method and technical standards determined by the city and generally accepted in industry practices.
(2) BROADBAND COMMUNICATIONS FACILITY, as used herein, means any network of cable, optical, electrical, or electronic equipment, including cable television systems, used for the purpose of transmitting telecommunications signals, but shall only include landline networks providing multi-channel video programming generally considered comparable to programming provided by television broadcast stations.
(H) (1) The Grantee shall provide additional services and facilities as are contained in its application (if any) or Franchise Agreement, which is incorporated by reference herein.
(2) It is mutually agreed upon and understood that as the "state-of-the-art" develops to allow additional channels, services, and other improvements to the system, including two-way capability, those developments may be incorporated into the system by the Grantee.
(J) The Grantee shall make available suitable channel capacity for leased access by third parties unaffiliated with the Grantee to the extent from time to time required by federal law and regulations. The Grantee shall have the sole responsibility for all operating aspects and for the fixing of rates and conditions for leased access use.
(‘83 Code, § 123.10) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96) Penalty, see § 121.99
(A) All transmission and distribution structures, lines, and equipment erected by the Grantee within the city shall be so located as to cause minimum interference with the rights and reasonable convenience of property owners who adjoin any of the streets.
(B) In case of disturbance of any street or paved area the Grantee shall, at its own cost and expense and in a manner reasonably approved by the city, replace and restore the street or paved area in as good a condition as before the work involving the disturbance was done.
(C) If at any time during the period of a franchise the city shall lawfully elect to alter or change the grade of any street, the Grantee, upon reasonable notice by the city, shall remove, relay, and relocate its poles, wires, cables, underground conduits, manholes, and other fixtures at its own expense.
(D) Any poles or other fixtures placed in or adjacent to any street by the Grantee shall be placed in such a manner as to comply with all requirements of the city.
(E) The Grantee shall, at the request of any person holding a moving permit issued by the city, temporarily raise or lower its wires to permit the moving of buildings. The expense of temporary removal or raising or lowering of wires shall be paid by the person requesting the same, and the Grantee shall have the authority to require payment in advance. The Grantee shall be given not less than 72 hours' notice to arrange for temporary wire changes.
(F) The Grantee may trim trees or other vegetation owned by the city or encroaching upon the public right-of-way to prevent their branches or leaves from touching or otherwise interfering with its wires, cables or other structures. All trimming or pruning shall be at the sole cost of the Grantee.
(G) In all sections of the city where the cables, wires, or other like facilities of public utilities are placed underground, the Grantee shall place its cables, wires, or other like facilities underground.
(H) At the expiration of the term for which the franchise is granted and absent its renewal, or upon its termination and cancellation, as provided for herein, the city shall have the right to require the Grantee to remove at its own expense all portions of the cable television system within the city.
(I) In using any easements, the Grantee shall ensure the following.
(1) That the safety, functioning and appearance of the property and convenience and the safety of other persons not be adversely affected by the installation or construction of facilities necessary for the cable television system.
(2) That the cost of the installation, construction, operation, or removal of any facilities be borne by the Grantee or a subscriber, or a combination of both.
(3) That the owner of property be justly compensated by the Grantee for any damages caused by the installation, construction, operation or removal of facilities by the Grantee.
(‘83 Code, § 123.11) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96) Penalty, see § 121.99
(A) It shall be expressly understood and agreed by and between the city and any Grantee hereunder that the Grantee shall save the city and its agents and employees harmless from and against all claims, damages, losses, and expenses, including attorney's fees, sustained by the city on account of any suit, judgment, execution, claim, or demand whatsoever arising out of but not limited to copyright infringements and all other damages arising out of the installation, operation, or maintenance of the cable system authorized herein, whether or not any act or omission complained of is authorized, allowed, or prohibited by this subchapter and any franchise granted hereunder.
(B) The Grantee shall maintain and by its acceptance of the franchise specifically agrees that it will maintain throughout the terms of the franchise, liability insurance insuring the city and the Grantee in the minimum amount of $5,000,000.
(C) The insurance policy obtained by the Grantee in compliance with this section must be approved by the City Attorney, and the insurance policy, along with written evidence of payment of required premiums, shall be filed and maintained with the City Clerk during the term of the franchise. The Grantee shall immediately advise the City Attorney of any litigation that may develop that would affect this insurance.
(D) Neither the provisions of this section nor any damages recovered by the city thereunder shall be construed to or limit the liability of the Grantee under any franchise issued hereunder or for damages.
(E) All insurance policies maintained pursuant to this chapter shall contain the following endorsement.
It is hereby understood and agreed that this insurance policy may not be canceled by the surety, nor the intention not to renew be stated by the surety until 60 days after receipt by the city, by registered mail, of written notice of intention to cancel or not to renew.
(F) The preceding are minimum requirements and the insurance and indemnity terms of a franchise agreement with a Grantee shall control to the extent they are stricter or more detailed than the preceding.
(‘83 Code, § 123.12) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96) Penalty, see § 121.99
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