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(A) The term of a franchise may be for a period not to exceed 15 years from the date that a franchise agreement, or a franchise renewal agreement, is approved by the Board of Trustees.
(Prior Code, § 13.20.380)
(B) The town 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.
(Prior Code, § 13.20.390)
(C) Each franchised operator shall pay to the town franchise fees equal to 3% of the basic and expanded basic cable revenues. The franchise fees for the privilege of using the streets, rights-of-way, easements and public ways and other facilities of the town in the operation of the cable system, and for the town’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 town shall have the authority to increase the franchise fee to the maximum rate allowable. It is intended that the franchise fees will promote the health, safety and welfare of the citizens of the town. Accordingly, the franchise fee shall be deposited into the general revenues of the town, unless otherwise specified.
(1) Within 45 days after the end of each reporting quarter, a franchised operator shall file with the town a detailed financial and revenue report clearly showing the gross revenues received by the franchised operator for operations within the town during the proceeding reporting quarter, and certified by an officer of the franchised operator attesting to the accuracy of the revenue figures. The report shall be in a form approved by the town. The report shall include revenue from whatever source, directly or indirectly derived from the operation of the cable system, or the provision of any cable service by or to the cable system. Revenue may be reported in the aggregate for the total franchise service area by general service type or source.
(2) 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 town may take action against the cable operator as authorized in this chapter.
(3) The acceptance of any payment shall not be construed as a release of, or an accord or satisfaction of, any claim that the town might have for further or additional sums payable under the terms of this chapter, or for any other performance or obligation of a franchised operator.
(4) Payments of compensation made by a franchised operator to the town pursuant to this chapter 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.
(5) A franchise fee does not include any items excluded by federal law.
(Prior Code, § 13.20.400)
(Ord. 96-13.20, passed - -1996)
(A) A cable operator’s franchise may not be assigned in whole or in part without the town’s prior written approval. For purposes of this section, ASSIGNMENT means 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 Board of Trustees for the town’s approval of the proposed assignment.
(2) The town will not unreasonably withhold its consent to an assignment. However, in making its determination, the Board of Trustees 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 service record in other communities;
(d) Legal integrity of the proposed assignee or transferee;
(e) If requested by the Board of Trustees, submittals from the proposed assignee concerning any changes it intends to make in the operation and maintenance of the present cable system;
(f) The corporate connection, if any, between the franchised operator and the proposed assignee;
(g) The economic viability or non-viability of the cable system in the future, based upon certain factors including the impact of the purchase price on the town and/or the proposed assignee; and
(h) Any other aspect of the proposed assignee’s background which could affect the health, safety and welfare of the citizenry of the town as it relates to the operation of the cable system.
(3) Nothing in this section shall restrict the town from considering other criteria, and in particular, any criteria established under state or federal law, rule or regulation.
(4) Before an assignment or transfer is approved by the town, the proposed assignee shall execute an agreement that it has read, understood and intends to abide by any existing franchise agreement.
(5) In the event of any approved assignment, the assignee shall assume all obligations and liabilities of the former franchised operator, except as noted in the following division (B)(6).
(6) (a) The town’s consent to an assignment shall not relieve the former franchised operator of its liabilities under the franchise agreement until the assignment actually takes place unless specifically relieved by federal or state law or by the Board of Trustees at the time an assignment is approved. In the event of an assignment, the former franchised operator shall remain liable for any then incurred franchise fees for the period governed by the applicable state statute of limitations. Consent shall not be required for an assignment to a wholly-owned subsidiary entity of the current parent entity of a cable operator, whether the ownership is direct or indirect, such as through other wholly-owned intermediate subsidiaries.
(b) 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, § 13.20.410) (Ord. 96-13.20, passed - -1996)
To the extent permitted by law, and in order to fulfill a public, 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 PEG channel as necessary, and at the request of the town, equipment reasonably necessary to record public events and to provide for the live broadcast of events occurring at Town Hall.
(Prior Code, § 13.20.420) (Ord. 96-13.20, passed - -1996)
A cable operator shall furnish, upon request, one outlet and one converter for each public school building, municipal office building, public library, fire station, police station which is passed by the operator’s cable system. Basic cable service and the next additional service tier shall be provided at no charge. An initial connection will be made at no charge with additional connections to be made for the cost of time and materials only.
(Prior Code, § 13.20.430) (Ord. 96-13.20, passed - -1996)
When the franchised operator violates an integral provision of this chapter, or acts so as to compromise the corporate character, or legal, financial or technical integrity and/or stability of the cable system or the franchised operator to a degree that the interests of the subscribers and users are negatively affected, then the franchised operator shall be considered in default of this chapter.
(A) Examples of a default include, but are not limited to: bankruptcy; insolvency; failure to pay taxes or franchise fees; failure to receive written town approval for an assignment; or failure to substantially abide by the integral terms and conditions of the franchise agreement or this chapter. Events in the nature of force majeure or conditions which cannot be corrected because they are matters beyond the immediate control of the affected cable operator shall not be considered a default.
(B) In the event that a default occurs, the town shall notify the affected cable operator in writing of the specific violation(s).
(C) The cable operator shall have 30 days from the receipt of the written notice to bring itself into compliance so that it is no longer in default of its franchise or this chapter, as the case may be.
(D) (1) If the cable operator fails to cure its default within the time period provided for above, the matter shall be set for public hearing before the Board of Trustees to be held within 75 days after the notice of default was mailed to the cable operator.
(2) Written notice of the time and place of the public hearing shall be sent by certified mail to the cable operator and the surety at least ten days prior to the date of the hearing.
(E) (1) At the time of the hearing, the cable operator may present information on the current status of the alleged default in the franchise agreement.
(2) If the cable operator fails to attend the hearing where a continuance of the hearing has not been granted by the Board of Trustees, then the franchised operator may be declared in default of the franchise agreement.
(F) (1) If the default has not been resolved at the time of or as a result of the hearing, the Board of Trustees may, after the public hearing, direct the cable operator to take corrective action within a specified period of time or may declare the cable operator in default of the franchise agreement, and revoke or terminate the franchise.
(2) The Board of Trustees’s action shall be mailed to the cable operator and the surety within 15 days of the Board of Trustees’s action.
(G) If the Board of Trustees directs corrective action to be taken and the cable operator or surety does not rectify the default within the time specified, then the Board of Trustees may without further notice declare the cable operator to be in default and revoke or terminate the franchise.
(Prior Code, § 13.20.450) (Ord. 96-13.20, passed - -1996)
In addition to any requirements contained within this chapter, all cable operators shall be expected to comply with all applicable provisions of the Cable Communications Policy Act of 1984, being 47 U.S.C. § 551, the Cable Television Consumer Protection and Competition Act of 1992, being 47 U.S.C. §§ 521 et seq., all later legislation directed at controlling or regulating cable operators, and any rules and regulations issued pursuant to this legislation. In addition, any franchise issued pursuant to this chapter shall be subject to amendment to incorporate any federal legislation, rules or regulations which become effective after the date of the franchise.
(Prior Code, § 13.20.470) (Ord. 96-13.20, passed - -1996)
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