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No person shall own or operate a cable television system (CATV), or other system as defined herein, in the town, except by franchise granted by the Board of Alderpersons to the franchisee, which shall comply with all of the provisions of this chapter.
(Prior Code, § 4.1-5(a)) (Ord. passed 9-19-1979)
(A) The Board of Alderpersons may, by advertisement or any other means, solicit and call for applications for CATV system franchises, determine and fix any date upon or after which the same shall be received, or the date after which the same shall not be received and may make any other determinations and specify any other times, terms, conditions or limitations respecting the soliciting, calling for, making and receiving of the applications.
(B) Proposals and applications shall be submitted in the form specified by the Town Administrator/Town Clerk.
(Prior Code, § 4.1-6) (Ord. passed 9-19-1979)
If an section, sentence, clause or phrase of this chapter is held invalid or unconstitutional, the invalidity or unconstitutionality shall not affect, the validity of the remainder of this chapter and any portions in conflict are hereby repealed; provided, that in the event that the FCC declares any section invalid, the section will be renegotiated by the town and the franchisee.
(Prior Code, § 4.1-4) (Ord. passed 9-19-1979)
FRANCHISE AGREEMENT
The franchise agreement shall grant to the franchisee the right, privilege and franchise to construct, operate and maintain a CATV system in the town for a period of 15 years. The franchise shall not be exclusive and the town reserves the right to grant a similar franchise to any other entity at any time during the period of the franchise issued pursuant to this chapter.
(Prior Code, § 4.1-5) (Ord. passed 9-19-1979)
(A) The franchise agreement, together with the provisions of this chapter, shall constitute the terms and conditions upon which the franchisee may exercise the rights described herein. In the event this chapter or the franchise agreement conflict with mandatory regulations of the FCC or other governmental body having jurisdiction, the same shall, only insofar as the conflict shall exist, be deemed of no effect and the remaining provisions of this chapter and the agreement shall remain in full force and effect. The franchise agreement shall contain the representations, warranties and agreements as shall be agreed upon between the Board and the franchisee. The applicant awarded a franchise by the Board’s resolution shall execute a franchise agreement agreeing to the terms and provisions of this chapter, the proposal and any conditions or provisions that may be negotiated between the town and the franchisee. In no event shall the terms of the franchise agreement conflict with any provision of this chapter, FCC regulations or any other law.
(B) At the minimum the franchise agreement shall contain representations by the franchise that:
(1) It accepts and agrees to all of the provisions of this chapter and any supplementary specifications, as to construction, operation or maintenance of the system, which the Board may include in the franchise agreement;
(2) It has examined all of the provisions of this chapter and waives any claims that any provisions hereof are unreasonable, arbitrary or void;
(3) It recognizes the right of the Board to make reasonable amendments to this chapter or the franchise agreement during the term of the franchise; provided, that no change shall compromise the franchisee’s ability to perform satisfactorily its obligations or rights under this chapter or the franchise agreement. It further recognizes and agrees that the Board shall, in no way, be bound to renew the franchise at the end of any franchise term; and
(4) It acknowledges that its rights hereunder are subject to the police power of the town to adopt and enforce general ordinances necessary to the safety and welfare of the public and it agrees to comply with all applicable general laws enacted by the Board pursuant to the power.
(C) In addition, the franchise agreement may contain specific standards that will be met related to signal quality and technical standards of construction, operation and maintenance of the system.
(Prior Code, § 4.1-8)
(D) Upon award of the franchise by the Board of Alderpersons and following execution of the franchise agreement, it shall be mandatory for the franchisee diligently and expeditiously to pursue the construction and operation of a CATV system for the citizens of the town and following construction of the system, it shall be mandatory for the franchisee to provide continuous regular service to its subscribers.
(Prior Code, § 4.1-7) (Ord. passed 9-19-1979)
The franchise and rights therein granted shall take effect and be in force for a period of 15 years from and after the grant and acceptance date of the franchise, which shall be effected by the execution of the franchise agreement, which shall occur not more than 30 days from the adoption of a resolution by the Board of Alderpersons designating the franchisee, unless the time is extended by the Alderpersons.
(Prior Code, § 4.1-10) (Ord. passed 9-19-1979)
Upon termination of the franchise for whatever reason, including expiration or revocation, the Board of Alderpersons shall have the right to determine whether the franchisee shall be eligible to continue to operate and maintain the CATV system.
(Prior Code, § 4.1-10) (Ord. passed 9-19-1979)
(A) Upon the expiration of the term of the franchise and subject to approval by the Board of Alderpersons, the franchisee may negotiate renewal of its franchise for an additional period, not inconsistent with FCC rules and regulations.
(B) The franchisee shall notify the Board in writing no less than one year in advance of the expiration date of its desire to renew or not to renew the franchise. The Board may propose certain franchise modifications to the franchisee and make any given renewal contingent upon acceptance of the modifications. Renewal shall be preceded by a public hearing held at least 30 days in advance of a decision by the Board of Alderpersons. A renewal may be granted not more than two years prior to the expiration of any existing term. The Board of Alderpersons may determine whether or not the franchisee has performed satisfactorily its obligations under the franchise by reviewing the following:
(1) Technical developments and performance of the system;
(2) Programming;
(3) Other services offered;
(4) Cost of service;
(5) Compliance with any requirement in this chapter or in FCC regulations;
(6) Annual and other reports made to the Board or the FCC;
(7) Extension of service; and
(8) Other matters of concern.
(C) In the event the current franchisee is determined by the Board of Alderpersons to have performed unsatisfactorily, new applicants shall be sought and evaluated by the Board and the Town Administrator/Town Clerk and a franchise award may be made according to the application and award procedures set forth in this chapter.
(D) Upon failure to renew the franchise following expiration of the term of the franchise, the Board shall have the right of first refusal to purchase the CATV system. Should the Board decide to purchase the system, it shall do so at a price not to exceed its then fair market value. In determining the fair value of the system, the original cost of all tangible and intangible property, as well as the salvage value, the book value, the replacement cost, cash flow and other factors, including outstanding debts of the system to be assumed by the Board, may be considered. Under no circumstances shall any valuation be made for “good will” or any right or privilege granted by this chapter. Should a dispute arise over the determination of the fair value of the system, the dispute shall be resolved by arbitration, as provided in § 110.025.
(Prior Code, § 4.1-10) (Ord. passed 9-19-1979)
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