(A)   Franchise purposes. A franchise granted by the city under the provisions of this article may authorize the grantee to do the following:
      (1)   To engage in the business of providing cable television services that are authorized and/or required by law and that the grantee elects to provide to its subscribers within the designated franchise service area.
      (2)   To erect, install, construct, repair, rebuild, reconstruct, replace, maintain, and retain, cable lines, related electronic equipment, supporting structures, appurtenances, and other property in connection with the operation of the cable system in, on, over, under, upon, along and across streets and public rights-of-way within the designated franchise service area.
      (3)   To maintain and operate the franchise properties for the origination, reception, transmission, amplification, and distribution of television and radio signals, and for the delivery of cable services and such other services as may be authorized by law.
   (B)   Franchise required. No person shall construct, install, or operate a cable television system within any street or public way in the city without first obtaining a franchise under the provisions of this article.
   (C)   Term of the franchise.
      (1)   A franchise granted under this article will be for the term specified in the franchise agreement, commencing upon the effective date of the resolution adopted by the city council that authorizes the franchise.
      (2)   A franchise granted under this article may be renewed upon application by the grantee in accordance with the then applicable provisions of the agreement, State and federal law and this article.
   (D)   Franchise service area. A franchise is effective within the territorial limits of the city, and within any area added to the city during the term of the franchise, unless otherwise specified in the resolution granting the franchise or in the franchise agreement.
   (E)   Federal or State jurisdiction. This article will be construed in a manner consistent with all federal and State laws, and this article applies to all franchises granted or renewed after the effective date of this chapter, to the extent authorized by law.
   (F)   Franchise non-transferable.
      (1)   The grantee may not sell, transfer, lease, assign, sublet, or dispose of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation, or otherwise, the franchise or any of the rights or privileges therein granted, without the prior written consent of the city council.
      (2)   Any attempt to sell, transfer, lease, assign, or otherwise dispose of the franchise without the written consent of the city council is null and void. The granting of a security interest in any assets of the grantee, or any mortgage or other hypothecation, will not be deemed a transfer for the purposes of this subsection.
      (3)   The requirements of subsections (1) and (2) apply to any change in control of the grantee. The word "control" as used herein is not limited to the ownership of major stockholder or partnership interests, but includes actual working control in whatever manner exercised.
      (4)   If the grantee is a partnership or a corporation, prior authorization of the city council is required where ownership or control of 25% or more of the partnership interests or of the voting stock of the grantee, or any company in the tier of companies controlling the grantee, whether directly or indirectly, is acquired by a person or a group of persons acting in concert, none of whom, singularly or collectively, owns or controls those partnership interests or that voting stock of the grantee, or of the grantee's upper tier of controlling companies, as of the effective date of the franchise.
      (5)   The grantee must give prior written notice to the city manager of any proposed transfer, including a foreclosure or judicial sale, of all or a substantial part of the grantee's franchise property, physical plant or equipment. That notification will be considered by the city as notice that a change in control of ownership of the franchise will take place, and the provisions of this section that require the prior written consent of the city council to a change in control of ownership shall apply to the transfer of property, physical plant or equipment.
      (6)   For the purpose of determining whether to consent to an acquisition, transfer, or change in control, the city council may inquire about the qualifications of the prospective transferee or controlling party, and the grantee must assist the city in that inquiry.
      (7)   In seeking the city council's consent to any change of ownership or control, the grantee or the proposed transferee, or both, must complete FCC Form 394 or its equivalent. This application must be submitted to the city manager not less than 120 days prior to the proposed date of transfer.
      (8)   The transferee must establish to the reasonable satisfaction of the city council that the transferee possesses the legal, financial, and technical capability to operate and maintain the cable system and to comply with all franchise requirements during the remaining term of the franchise.
      (9)   Any financial institution holding a pledge of the grantee's assets to secure the advance of money for the construction or operation of the franchise property has the right to and shall notify the city that the financial institution, or a designee satisfactory to the city, will take control of and operate the cable television system upon the grantee's default in its financial obligations. Further, that financial institution must also submit to the city a plan for such operation within 90 days after assuming control.
      (10)   The plan must insure continued service and compliance with all franchise requirements during the period that the financial institution will exercise control over the system. The financial institution may not exercise control over the system for a period exceeding one year unless authorized by the city council, in its sole discretion, and during that period of time the financial institution will have the right to petition the city council to transfer the franchise to another grantee.
      (11)   Unless prohibited by law, the grantee must reimburse the city for the city's reasonable review and processing expenses incurred in connection with any transfer or change in control of the franchise. These expenses may include, without limitation, costs of administrative review, financial, legal, and technical evaluation of the proposed transferee, consultants (including technical and legal experts and all costs incurred by these experts), notice and publication costs, and document preparation expenses. The total amount of these reimbursable expenses may be subject to maximum limits that are specified in the franchise agreement between the city and the grantee. No reimbursement may be offset against any franchise fee payable to the city during the term of the franchise.
   (G)   Geographical coverage.
      (1)   Unless otherwise provided in the franchise agreement, the grantee must design, construct, and maintain the cable television system to have the capability to pass every dwelling unit and commercial building in the franchise service area, subject to any service-area line extension provisions or territorial restrictions which are negotiated and set forth in the franchise agreement.
      (2)   After service has been established by activating trunk or distribution cables for any service area, the grantee must provide service to any requesting subscriber within that activated part of the service area within seven days from the date of request, provided that the grantee is able to secure on reasonable terms and conditions all rights-of-way and permits necessary to extend service to that subscriber within that seven-day period.
   (H)   Nonexclusive franchise. Every franchise granted is nonexclusive. The city specifically reserves the right to grant, at any time, such additional franchises for a cable television system that the city council deems appropriate, subject to State and federal law. If an additional franchise is proposed to be granted to a subsequent grantee, a noticed public hearing shall first be held if required by the provisions of Cal. Gov’t Code, Section 53066.3.
   (I)   Multiple franchises.
      (1)   The city council may grant any number of franchises, subject to State and federal law. The city council may limit the number of franchises granted, based upon, but not necessarily limited to, the requirements of law and the following specific local considerations:
         (a)   The capacity of the public rights-of-way to accommodate multiple cables in addition to the cables, conduits, and pipes of the existing utility systems, such as electrical power, telephone, gas, and wastewater.
         (b)   The benefits that may accrue to subscribers as a result of cable system competition, such as lower rates and improved service.
         (c)   The disadvantages that may result from cable system competition, such as the requirement for multiple pedestals on residents' property, and the disruption arising from numerous excavations within the public rights-of-way.
      (2)   Any new grantee shall be responsible for its own underground trenching and the associated costs. If in the city manager's opinion, the rights-of-way in any particular area cannot reasonably accommodate additional cables, the grantee must obtain an alternate route or right of way from the city manager.
(Ord. No. 2650)