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§ 112.05 ACCEPTANCE; INDEMNIFICATION; EFFECTIVE DATE.
   (A)   Within 25 days after the City Council has taken final action to approve the granting of a franchise, the grantee shall file a written acceptance of the conditions required for the franchise, acknowledged before a notary public, with the City Clerk. The acceptance shall acknowledge that the grantee agrees to be bound by and to comply with the provisions of this chapter and the franchise, and shall be in such form and content as to be satisfactory to and approved by the City Attorney.
   (B)   Concurrently with the filing of the written acceptance, the grantee shall file with the City Clerk the bond and insurance policies required by § 112.12.
   (C)   The effective date of the franchise shall be the date the grantee files its written acceptance of the conditions required for the franchise in accordance with the provision of division (A) of this section.
(Ord. 20, passed 8-5-1982)
§ 112.06 DURATION OF FRANCHISE; TERMINATION; TRANSFER.
   (A)   The franchise shall be nonexclusive and shall be for a term as specified in the franchise, not to exceed 15 years.
   (B)   (1)   Except as herein provided, no transfer of control of the CATV shall take place, whether by forced or voluntary sale, lease, mortgage, assignment, encumbrance, or any other form of disposition, without prior notice to and approval by the City Council. Provided, that the transfer, alteration, substitution, or conveyance of shares within the parent, holding corporation, subsidiaries, or corporations in the control (as hereinafter defined) of the franchisee’s parent corporation shall not constitute transfer of control. Provided further, that transfer of control shall include any situation when 10% or more of the shares is transferred to any entity outside the control (as hereinafter defined) of the parent corporation. The notice shall include full identifying particulars of the proposed transaction, and the City Council shall either approve or disapprove the transfer by resolution, within 60 days of the receipt of the notice.
      (2)   The consent or approval of the City Council to any assignment, lease, transfer, sublease, or mortgage of the grantee shall not constitute a waiver or release of the rights of the city in and to the streets.
      (3)   For the purpose of this section, the following definition shall apply unless the context clearly indicates or requires a different meaning.
         CONTROL. Is not limited to majority stock ownership, but includes actual working control in whatever manner exercised.
      (4)   A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person or group of persons of 10% of the voting shares of any corporate grantee.
      (5)   In the absence of extraordinary circumstances, the City Council will not approve any transfer or assignment of the grantee before completion of initial construction of the energized cable.
      (6)   Notwithstanding anything herein to the contrary, the franchisee may hypothecate or pledge its interest in this franchise for the purpose of obtaining financing, the proceeds of which shall be utilized in the construction, maintenance, and operation of a cable television system authorized under the terms of this chapter. Any change in ownership or control of the system resulting from the pledge or hypothecation shall not become absolute without:
         (a)   The approval of the city; and
         (b)   Any new grantee filing with the city its written acceptance of this chapter, the franchise, and all the conditions thereto. The acceptance shall be filed within 60 days following the date of the change.
   (C)   The City Council may terminate the franchise prior to the date of expiration upon a finding, made after 30 days’ notice of any proposed termination and public hearing, that:
      (1)   The grantee has failed to comply in some material respect with any of the provisions of this chapter, or has, by any act or omission, violated in some material respect any term or condition of any franchise or permit issued hereunder;
      (2)   The grantee made a material, false statement in the application for the franchise, or in any information submitted pursuant to § 112.07(B) knowing it to be false; or
      (3)   The grantee, contrary to the best interest of public convenience and welfare, is not providing subscribers with service which is regular, adequate, and proper.
   (D)   In the event that the use of any tangible part of the CATV system is discontinued for any reason for a continuous period of 90 days, or the franchise has been terminated, cancelled, or has expired, the grantee shall promptly remove from the streets or public places all the property of the system, other than that which the Mayor may permit to be abandoned in place, and as directed by the Mayor shall either restore the street or pay the city for restoring the street or other area from which the property has been removed to a condition for public use as good as the abutting portions thereof. Any property remaining in place 60 days after the termination or expiration of the franchise shall be considered permanently abandoned.
(Ord. 20, passed 8-5-1982)
§ 112.07 AUTHORITY GRANTED BY FRANCHISE.
   (A)   The grantee of any franchise issued pursuant to the provisions of this chapter shall be authorized, subject to approval of plans by the Mayor, to construct or have constructed, operate, and maintain a CATV system and to engage in the business of providing a CATV service in the city, and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain, and retain in, over, on, under, upon, across, and along any public street, such wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments, and other, property, excepting poles, as may be necessary and appurtenant to the CATV system; and in addition, so to use, operate, and provide similar facilities or properties rented or leased from other persons, including, but not limited to, any public utility or other grantee franchised or permitted to do business in the city.
   (B)   (1)   The grantee may initially charge subscribers and users of the CATV system for services up to the amounts specified in its schedule of rates and charges as proposed in its franchise application and approved by the City Council. The maximum rates shall be in effect for a minimum period of two years from the date of completion of installation of the CATV systems capable of effectively serving no less than 60% of the customers proposed in the approved initial plans.
      (2)   The grantee may establish rates for service from time to time thereafter not greater than the rates for equivalent service charge under the franchise granted by the City of Albemarle, or under the franchise granted by the county, whichever is less.
   (C)   The grantee shall not engage in the sale, service, repair, rental, or lease of television receivers, radio receivers, parts or accessories, nor shall any employee or stockholder hold any interest in any such business venture in the County. The grantee shall not require or attempt to influence its subscribers to deal with any particular person in regard to the above-mentioned services.
   (D)   Construction and maintenance of the CATV system, including house connection, shall be in accordance with the provisions of:
      (1)   The National Electrical Safety Code of the Institute of Electrical and Electronic Engineers;
      (2)   The National Electronic Code of the National Fire Protection Association; and
      (3)   The Southern Bell Telephone System’s Code of Pole Line Construction.
(Ord. 20, passed 8-5-1982; Ord. -, passed 10-7-1982)
§ 112.08 CONDITIONS TO USE OF STREETS.
   (A)   The poles used for a distribution system shall be those erected and maintained by the city, the power company, the telephone company, or either, whenever agreement can be reached with the owners of the poles. Any poles, wires, cables, conduits, or other properties to be realigned or reset to permit their use for purposes of the grantee under an agreement with the owner thereof shall be constructed or installed only at such locations and depths and in such manner as shall be approved by the owner and the Mayor. They shall be located so as to cause minimum interference with the proper use of streets and to cause minimum interferences with the rights or reasonable convenience of the general public and of property owners who adjoin the streets.
   (B)   The installation of the facilities, including service drops to subscribers, shall be made underground in areas where facilities of both the telephone company and the power company are underground or hereafter may be placed underground. In addition to the foregoing, installation of the facilities shall be made underground when required by city ordinances or policies.
   (C)   The grantee shall, at its expense, protect, support, temporarily disconnect, relocate in the same street or other public place, or remove from the street or other public place, any property of the grantee when required by the city by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signal lines, or any other type of structures or improvements by the city, and the city shall not be liable for any disturbance of the grantee’s installations resulting therefrom. The grantee shall carry out the instructions and directions of the Mayor whenever it is necessary to raise or remove any of the grantee’s wires or cables temporarily for the purpose of moving or removing buildings or structures on the public streets of the city, and shall perform such tree trimming or other maintenance work as shall be required or as shall be directed by the Mayor, all at the grantee’s expense.
   (D)   Whenever a grantee takes up or disturbs any pavement, sidewalk, or other improvement of any street, the same shall be replaced and the surface restored in as good condition as before entry in accordance with ordinances, regulations, technical standards, and fee schedules of the city as administered by the Mayor. Any opening or obstruction in the streets shall be guarded and protected at all times by the placement of adequate barriers, fences, or boardings, the bounds of which shall be clearly designated by warning lights of approved types.
(Ord. 20, passed 8-5-1982)
§ 112.09 PERMITS, INSTALLATION, AND SERVICE.
   (A)   Within 30 days after the effective date of the franchise, the grantee shall proceed with due diligence to obtain all necessary permits and authorizations which are required in the conduct of its business including, but not limited to, any utility joint use attachment agreements.
   (B)   Within 90 days after obtaining all necessary permits, licenses, and authorizations, the grantee shall commence construction and installation of the CATV system.
   (C)   Within one year after obtaining all necessary permits and authorization, the grantee shall proceed to render to subscribers in at least 40% of the franchise area, and the completion of the system shall be pursued with reasonable diligence thereafter with extension of service to the remaining franchise area within the next succeeding year.
   (D)   Failure on the part of the grantee to commence and diligently pursue each of the foregoing requirements and to complete each of the matters set forth herein shall be grounds for termination of the franchise, under and pursuant to the terms of § 112.06; provided, however, the City Council may extend the time for the commencement and completion of construction and installation for additional periods in the event the grantee, acting in good faith, experiences delays by reason of circumstances beyond its control.
   (E)   The grantee shall, upon request, file a map with the city at the close of each franchise year, showing the areas and locations of the city being served by the CATV system and the location and identification of component parts of the system.
(Ord. 20, passed 8-5-1982)
§ 112.10 OPERATIONAL REQUIREMENTS.
   (A)   The grantee shall install and maintain a CATV system which shall be in accordance with the highest and best accepted standards of the industry to the effect that subscribers shall receive the highest possible service. In addition, the grantee shall comply with all requirements of duly constituted regulatory agencies having jurisdiction over the operator of the CATV systems.
   (B)   The grantee must obtain individual permits for street openings, must have the installation or construction plans approved by the Mayor prior to construction, must secure all necessary permits at its expense, and must pay all fees charged for closing pavement cuts.
   (C)   When any portion of the CATV system is to be installed on public utility poles and facilities, a certification that agreements for such joint use have been entered shall be filed with the city.
   (D)   The grantee shall maintain at least one office within the county for the purpose of handling subscriber complaints and providing prompt maintenance service. The office shall be open during all regular business hours, and have a publicly listed, toll-free telephone which shall be so operated that complaints and requests for repairs or adjustments may be received on a 24-hour basis. The grantee shall establish procedures for receiving, acting upon, and resolving subscriber complaints to the satisfaction of the Mayor which shall include, but not be limited to, maximum response time to commence service of all complaints of 24 hours. The grantee shall furnish a notice of the procedures to each subscriber at the time of initial subscription to the system.
(Ord. 20, passed 8-5-1982)
§ 112.11 REMUNERATION TO CITY.
   (A)   Within 60 days after the close of its fiscal year after acceptance of a franchise, and each succeeding fiscal year thereafter during the life of the franchise, the grantee shall pay to the city for the privilege of constructing, operating, and maintaining the CATV system as defined in § 112.03, and for the privilege of providing the CATV service as defined in § 112.03 during the preceding fiscal year a sum equal to that percentage of its gross annual receipts during that fiscal year as is determined from time to time by the City Council, which sum shall not be less than 3% of its gross annual receipt for the fiscal year or more than the maximum sum allowed by federal and state regulatory agencies for the privileges.
   (B)   Within 45 days after the expiration of the grantee’s fiscal year, the grantee shall file with the city financial data acceptable to the Mayor, including computer data, and in the case of any question, dispute, or controversy, a certified financial statement prepared by a certified public accountant, or other person satisfactory to the City Council, showing in detail the gross annual receipts, as defined herein, of the grantee during the fiscal year. The payment of this fee is in addition to any ad valorem taxes which the city may levy on the grantee’s real or personal property. At any time during the three fiscal years following the payment of the annual fee, the city shall have the right to inspect the grantee’s records showing the gross annual receipts from which these payments are computed and the right of audit and recomputation of any and all amounts under this chapter. Acceptance of payments hereunder shall not be construed as a release or an accord and satisfaction of any claim the city may have for further or additional sums payable under this chapter or for the performance of any other obligations hereunder. In the event of holding over after expiration or other termination of any franchise granted hereunder, without the consent of the city, the grantee shall pay to the city reasonable compensation and damages, of not less than 100% of its total gross profits during the period.
(Ord. 20, passed 8-5-1982)
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