(a) The applicant for an initial franchise or for the transfer of a franchise shall comply with the provisions of this chapter and applicable laws, and it shall comply with the requirements of a franchise as the city may lawfully require.
(1) The applicant must not have had any cable system or OVS franchise validly revoked, and the revocation is no longer subject to appeal, by the city within three years preceding the submission of the application.
(2) The applicant may not have had an application to the city for an initial or a renewal cable system franchise denied on the ground that the applicant failed to propose a cable system meeting the cable-related needs and interests of the community (or, in the case of a franchise renewal, denied on the ground that the franchisee failed substantially to comply with the material terms of its franchise), or as to which any challenges to such franchising decision were finally resolved (including any appeals) adversely to the applicant, within three years preceding the submission of the application; and may not have had an application for an initial or a renewal OVS franchise denied by the city on any ground within three years of the application.
(3) The applicant shall not be issued a franchise if, at any time during the ten years preceding the submission of the application, the applicant or any of its officers or directors was convicted of fraud, racketeering, anticompetitive actions, unfair trade practices or other conduct of such character that the applicant cannot be relied upon to deal truthfully with the city and the subscribers, or to substantially comply with its obligations.
(4) The applicant must have the necessary authority under California and federal law to operate a cable system and to conduct business in the state of California and the city, or show that it is in a position to obtain that authority.
(5) The applicant shall not be issued a franchise if it files materially misleading information in its application or intentionally withholds information that the applicant lawfully is required to provide.
For the purposes of Section 2.10.240(a)(1) - (3), the term "applicant" includes any affiliate of the applicant.
(b) Notwithstanding Section 2.10.240(a), an applicant shall be provided a reasonable opportunity to show that a franchise should issue even if the requirements of Section 2.10.240(a)(1) - (3) are not satisfied, by virtue of the circumstances surrounding the matter and the steps taken by the applicant to cure all harms flowing therefrom and prevent their recurrence, the lack of involvement of the applicant's principals, or the remoteness of the matter from the operation of a cable system.
(Ord. 4636 § 20, 2000)