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(A) A franchise authorizes use of the public rights-of-way for installing and maintaining cables, wires, lines, and other facilities to operate a cable system within the city, but does not expressly or implicitly authorize the franchisee to provide service to, or install cables, wires, lines, or any other equipment or facilities upon private property without owner consent (except for use of compatible easements pursuant to 47 U.S.C. § 541(a)(2)), or to use publicly or privately owned utility poles or conduits without a separate agreement with the owners.
(B) A franchise is nonexclusive and will not expressly or implicitly preclude the issuance of other franchises to operate cable systems within the city or affect the city’s right to authorize use of public rights-of-way to other persons as it determines appropriate.
(C) A franchise conveys no property right to the franchisee or right to renewal other than as may be required by state or federal law.
(D) A franchise agreement constitutes a contract between the franchisee and the city once it is accepted by the franchisee. A franchisee contractually commits itself to comply with the terms, conditions and provisions of the franchise agreement and with all applicable laws, ordinances, codes, rules, regulations, and orders.
(Ord. 89-15, passed 5-8-89)
(A) A franchisee is subject to and must comply with all applicable local, city, state and federal laws, ordinances, codes, rules, regulations, and orders. A franchisee is also subject to the city’s police power in accordance with Illinois law.
(B) A franchisee or other person may not be excused from complying with any of the terms and conditions of this chapter or a franchise agreement by any failure of the city, upon one or more occasions, to require compliance or performance.
(C) The city may, on its own motion or at the request of an applicant or franchisee for good cause shown, waive any requirement of this chapter.
(Ord. 89-15, passed 5-8-89)
(A) The provisions of this chapter will apply to a franchise agreement as if fully set forth in the franchise agreement. The express terms of this chapter will prevail over conflicting or inconsistent provisions in a franchise agreement.
(B) The provisions of a franchise agreement will be liberally construed in order to effectuate its purposes and objectives consistent with this chapter and the public interest.
(C) A franchise agreement will be governed by and construed in accordance with the laws of the State of Illinois.
(Ord. 89-15, passed 5-8-89)
(A) An application must be filed with the city for grant of a new franchise, renewal of a franchise under either the formal or informal procedures in accordance with Section626 of the Cable Act, 47 U.S.C. § 546, modification of a franchise agreement, or a transfer of a franchise. An applicant has the burden to demonstrate compliance with all requirements of this chapter and of federal law.
(B) To be acceptable for filing, an application must be submitted in the number of copies required by the city, be accompanied by the application filing fee where required, conform to any applicable request for proposals, and contain all required information. All applications must include the names and addresses of persons authorized to act on behalf of the applicant with respect to the application.
(C) All applications accepted for filing must be made available by the city for public inspection. The city shall advertise the receipt of all accepted applications in accordance with standard procedure.
(D) An application for the grant of a new franchise may be filed pursuant to a request for proposals issued by the city or on an unsolicited basis. The city, upon receipt of an unsolicited application, may issue a request for proposals. If the city elects to issue a request for proposals upon receipt of an unsolicited application, the applicant may submit an amended application in response to the request for proposals, or may inform the city that its unsolicited application should be considered in response to the request for proposals, or may withdraw its unsolicited application. An application which does not conform to the requirements of a request for proposals may be considered nonresponsive and returned.
(E) An application for the grant of a new franchise must contain, at minimum, the following information:
(1) Name and address of the applicant and identification of the ownership and control of the applicant, including: the names and addresses of the ten largest holders of an ownership interest in the applicant, and all known persons with 5% or more ownership interest; the persons who control the applicant; all officers and directors of the applicant; and any other business affiliation and cable system ownership interest of each named person;
(2) An indication of whether the applicant, or any person controlling the applicant, or any officer or major stockholder of the applicant, has been adjudged bankrupt, had a cable franchise revoked, or not renewed, or been found guilty by any court or administrative agency of a violation of a security or antitrust law, or a felony, or any crime involving moral turpitude; and, if so, identification of any such person or entity and a full explanation of the circumstances;
(3) A demonstration of the applicant’s technical, legal and financial ability to construct and operate the proposed cable facility, including identification of key personnel;
(4) A description of applicant’s prior experience in cable operations and identification of communities in which applicant or its principals have, or had, a cable franchise or an interest therein, including the identification of any litigation involving any such franchisees and their franchising authorities;
(5) Identification of the area to be served by the cable system if the entire city is not to be served;
(6) A detailed description of the physical facility proposed, including channel capacity, technical design, performance characteristics, headend, and access facilities to be provided to satisfy the requirements of § 118.48;
(7) A description of the construction of the proposed system, including an estimate of above-ground and below-ground mileage and its location, the proposed construction schedule, a description, where appropriate, of how services will be converted from existing facilities to new facilities, and information on the availability of space on poles and conduits including, where appropriate, an estimate of the cost of rearrangement of facilities to accommodate such use;
(8) A description of the services to be provided initially, including all broadcast and non-broadcast signals to be carried and all non-television services, and if services will be offered by tiers, identification of the signals and/or services to be included on each tier;
(9) The proposed rate structure including charges for each service tier, installation, converters, and other equipment or services;
(10) A demonstration of how the proposal will reasonably meet the future cable-related needs and interests of the community, including a description of how the proposal will meet the needs described in any recent community needs assessment conducted for the city;
(11) Pro forma financial projections for the first three years of the franchise term, including statement of income, balance sheet, sources and uses of funds, and schedule of capital additions, with all significant assumptions explained in notes or supporting schedules;
(12) An affidavit of the applicant or authorized officer certifying the truth and accuracy of the information in the application, and acknowledging the enforceability of application commitments, and certifying that the proposal meets all federal and state requirements; and
(13) Any other information necessary to demonstrate compliance with the requirements of this chapter and information that the city may request of the applicant.
(F) An application for modification of a franchise must include, at minimum, the following information:
(1) The specific modification requested;
(2) The justification for the requested modification, including the impact of the requested modification on subscribers and others, and the impact on the applicant if the modification is not approved;
(3) A statement whether the modification is sought pursuant to Section 625 of the Cable Act, 47 U.S.C. § 545, and, if so, a demonstration that the requested modification meets the legal standards of 47 U.S.C. § 545; and
(4) Any other information necessary for the city to make a determination.
(G) An application for renewal of a franchise must comply with the requirements of § 118.41.
(H) An application for approval of a transfer of a franchise must comply with the requirements of § 118.42.
(Ord. 89-15, passed 5-8-89; Am. Ord. 12-49, passed 9-10-12)
(A) The city may grant a franchise for a period not to exceed 15 years to serve the city.
(B) The city may make the grant of a franchise conditioned upon the completion of construction within a prescribed time or upon the performance of other specific obligations, specifying in the franchise agreement that failure to timely comply with the condition will cause the franchise to become null and void without further action by the city.
(C) In evaluating an application for a new franchise, the city shall consider the applicant’s character; the applicant’s technical, financial, and legal qualifications to construct and operate the proposed system; the nature of the proposed facilities, equipment, and services; the applicant’s record in other communities, if any; and whether the proposal will meet anticipated community needs and serve the public interest.
(D) Based upon the application, the written and oral testimony and other material presented at a public hearing before the Council, and any other information relevant to the application, the Council shall decide whether to grant or deny a franchise application.
(E) If the Council grants a franchise application, the City Attorney and the applicant must agree on the terms of a franchise agreement within 90 calendar days from the date of the resolution making the grant. This period may be extended for good cause by the Council. If agreement is not reached with the City Attorney within 90 calendar days or if the period is not extended by the Council, the franchise grant will be null and void without further action by the city.
(F) The text of a proposed franchise agreement must be made available by the city to the public and advertised as required by city procedure.
(G) After complying with the requirements of divisions (C) through (F) above, the Council shall, following a public hearing, approve or disapprove the proposed franchise agreement by resolution.
(H) The grant of an initial franchise or a renewed franchise shall be subject to a franchise acceptance fee in an amount not to exceed the city's out of pocket costs in considering the application. Within 30 calendar days of the date the resolution approving the franchise agreement the city must notify the approved applicant of the amount of any franchise acceptance fee and its method of calculation. If the franchise acceptance fee is not paid within 60 calendar days of the date of the Council resolution approving the franchise agreement, the grant will be null and void. Prior to the franchise becoming effective, the approved applicant must demonstrate compliance with the surety, insurance and similar provisions of the franchise agreement.
(Ord. 89-15, passed 5-8-89; Am. Ord. 12-49, passed 9-10-12)
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