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(A) Unless a franchise agreement provides otherwise, a franchisee, in consideration of the privilege granted under a franchise for the use of public rights-of-way to construct and operate a cable system, must pay to the city 5% of the franchisee’s gross revenues derived from the operation of its cable system within the city during the period of its franchise. Franchise fees are payable quarterly. A franchisee must pay the franchise fee due to the city for the preceding quarter within 30 calendar days of the end of that quarter.
(B) Any payment of franchise fees to adjust for a shortfall in the quarterly payments for the preceding year must be made no later than the filing date for the annual financial statements. Adjustments for any overpayment will be credited to subsequent quarterly payments.
(C) Unless a franchise agreement provides otherwise, franchisee fee payments shall be accompanied by a financial statement showing the gross revenues received by the franchisee during the period covered by the payments and the number of subscribers served at the end of the period.
(D) A franchisee must file within three months of the end of its fiscal year the franchisee’s annual financial statements for the preceding year, audited by a certified public accountant or certified as accurate by the franchisee’s chief financial officer. The franchisee will bear the cost of the preparation of such financial statements.
(E) The city may inspect and audit any and all books and records of the franchisee, and recompute any amounts determined to be payable under the franchise. The cost of the audit will be borne by the franchisee if the annual payment to the city is increased by more than 5% as a result of the audit.
(F) In the event that a franchise payment is not received by the city on or before the due date, interest will be charged from the due date at an interest rate of 1 1/2% per month. In addition, the franchisee will pay a late charge of 5% of the amount of such payment. Interest and late charges will not be imposed for any payment necessary as a result of the yearly adjustment provided for in division (B) above, if the payment to correct for a shortfall does not exceed 10% of the total payments made during the year. In the event such payment exceeds 10% of the total payments made during the year, the franchisee will be liable for interest and late charges for the entire amount due.
(G) When a franchise terminates for whatever reason, the franchisee must file with the city within 90 calendar days of the date its operations cease a financial statement, audited by a CPA or certified by the franchisee’s chief financial officer, showing the gross revenues received by the franchisee since the end of the previous fiscal year. Adjustments will be made at that time for franchise fees due to the date that the franchisee’s operations ceased.
(Ord. 89-15, passed 5-8-89)
(A) Within three months of the close of its fiscal year, a franchisee must file with the city an annual report that includes the following information:
(1) A summary of the previous calendar year’s activities in development of the system, including but not limited to services begun or dropped, number of subscribers (including gains and losses), homes passed, and miles of cable distribution plants in service. The summary shall also include a comparison of any construction, including system upgrades, during the year with any projections previously provided to the city.
(2) A financial statement, including a statement of income, a balance sheet, and where the franchisee is in a significant construction phase, a statement of sources and applications of funds. The statement shall include notes that specify all significant accounting policies and practices upon which it is based. A summary shall be provided comparing the current year with previous years since the beginning of the franchise.
(3) A copy of updated maps depicting the location of all trunks where there was construction in the year of the report.
(4) A summary of complaints, identifying the number and nature of complaints and their disposition. Where complaints involve one or more recurrent system problems, the nature of each problem and what steps have been taken to correct it shall be identified. More detailed information on complaints shall be submitted upon request of the city.
(5) If the franchisee is a corporation, a list of officers and members of the board and the officers and board members of any parent corporation; and where a parent corporation’s stock is publicly traded, a copy of its most recent annual report.
(6) A list of all partners or stockholders holding 5% or more ownership interest in the franchisee and any parent corporation; provided, however, when any such entity has fewer than ten persons holding 5% ownership interest, the ten largest such holders. Alternatively, the annual ownership information required by the FCC for broadcast licensees may be supplied.
(7) A copy of all the franchisee’s rules and regulations applicable to subscribers and users of the cable system.
(B) A franchisee must maintain a complete set of books and records available for inspection upon reasonable prior notice by the city during normal business hours.
(C) Upon written request of the franchisee and approval by the City Attorney, information of a proprietary nature submitted to the city pursuant to this chapter or a franchise agreement will not be made available for public inspection.
(D) The franchisee shall provide to the city a copy of all filings of the franchisee or affiliated entity made with the Federal Communications Commission, the Securities and Exchange Commission, or other federal agency where such filings involve matters that affect, or could affect, the operation of the franchised cable system or the franchisee’s capability to carry out its obligations under the franchise agreement and this chapter.
(Ord. 89-15, passed 5-8-89)
(A) A franchisee must have available at all times personnel, equipment and procedures capable of locating and correcting major system malfunctions. Major system malfunctions must be corrected without delay. Corrective action for all other malfunctions must be initiated not later than the next business day after the subscriber service call is received, and must be completed as promptly as possible.
(B) A franchisee must provide each subscriber at the time cable service is installed written instructions for placing a service call, filing a complaint, or requesting an adjustment. Each subscriber must also be provided with a schedule of the subscriber’s rates and charges, a copy of the service contract, delinquent subscriber disconnect and reconnect procedures, and a description of any other of the franchisee’s policies in connection with its subscribers.
(C) A franchisee must maintain a complete record of service complaints received and action taken. These records must be open to the city for inspection during normal business hours. Such records must be retained for not less than two years.
(D) Upon termination of service to a subscriber and at the subscriber’s request, a franchisee must remove all its facilities and equipment from the subscriber’s premises within 30 days of the subscriber’s request. Where removal is impractical, such as with buried cable or internal wiring, facilities and equipment may be disconnected and abandoned rather than removed.
(E) If warranted in the city’s judgment, the city may adopt regulations governing customer service so as to assure prompt, courteous or responsive treatment of the public by a cable operator.
(Ord. 89-15, passed 5-8-89; Am. Ord. 12-49, passed 9-10-12)
(A) Unless approved by the city and to the extent consistent with federal law, no franchisee may in its rates or charges, or in the availability of the services or facilities of its system, or in any other respect, make or grant undue preferences or advantages to any subscriber or potential subscriber to the system, or to any user or potential user of the system, nor subject any such persons to any undue prejudice or any disadvantage.
(B) A franchisee must not deny cable service to any potential subscribers because of the income of the residents of the area in which the subscribers reside.
(Ord. 89-15, passed 5-8-89)
(A) A franchisee must utilize, with the owner’s permission, existing poles, conduits or such other facilities whenever possible. Copies of agreements for use of poles, conduits or other facilities must be filed with the city upon city request.
(B) All transmission lines, equipment and structures must be installed and located to cause minimum interference with the rights and reasonable convenience of property owners. The city may from time-to-time issue such reasonable rules and regulations concerning the installation and maintenance of the cable system installed in the public rights-of-way as may be consistent with this chapter and the franchise agreement.
(C) Suitable safety devices and practices as required by local, city, state and federal laws, ordinances, regulations and permits must be used during construction, maintenance and repair of a cable system.
(D) A franchisee must remove, replace or modify at its own expense the installation of any of its facilities within any a public right-of-way when required to do so by the city to allow it to change, maintain, repair or improve a public thoroughfare.
(E) On streets and roads where electrical or telephone utility wiring are located underground, either at the time of initial construction or subsequently, the cable must also be located underground at the franchisee’s expense. Between a street or road and a subscriber’s residence, the cable must be located underground if either electrical and telephone utility wiring are located underground. If both electric and telephone utility wiring is aerial, a franchisee may install aerial cable except where a property owner or resident requests underground installation and agrees to bear the additional cost over aerial installation.
(F) A franchisee must obtain any required permits before causing any damage or disturbance to public thoroughfares or private property as a result of its construction or operations and must restore to their former condition such private property and public thoroughfares, the latter in a manner approved by the city. If such restoration is not satisfactorily performed within a reasonable time, the city, or the property owner in the case of private property may, after prior notice to the franchisee, cause the repairs to be made at the expense of the franchisee.
(G) A franchisee may trim trees within public rights-of-way at its own expense as necessary to protect its wires and facilities, subject to any direction that may be provided by the city. Trees on private property may be trimmed with the consent of the property owner.
(H) At the request of any person holding a valid building moving permit and upon sufficient notice, the franchisee must temporarily raise, lower or cut its wires as necessary to facilitate such move upon not less than 72 hours’ advance notice. The direct expense of such temporary changes, including standby time, must be paid by the permit holder and the franchisee may require payment in advance.
(Ord. 89-15, passed 5-8-89)
(A) A franchisee must protect the privacy of all subscribers pursuant to the provisions of Section 631 of the Cable Act, 47 U.S.C. § 551. A franchisee must not condition subscriber service on the subscriber’s grant of permission to disclose information which, pursuant to federal law, cannot be disclosed without the subscriber’s explicit consent.
(B) It is unlawful for any person to intercept or use any video, voice, or data signal transmissions over a cable system, unless such interception or use is authorized by the franchisee or other person having the lawful right to authorize the reception or use.
(Ord. 89-15, passed 5-8-89)
(A) Any cable system constructed within the city must meet or exceed technical standards consistent with this chapter, the franchise agreement, and the franchisee’s application. The system must be capable of delivering all National Television Systems Committee (NTSC) color and monochrome standards signals and designed to provide picture quality of TASO grade 2 or better and superior reliability. All television signals transmitted on a cable system must include any closed captioning information for the hearing impaired. Antennas, supporting structures, and outside plant used in the system must be designed to comply with the recommendations of the Electronics Industries Association on tower structures and outside plant.
(B) All construction, installation and maintenance must comply with the National Electrical Safety Code, the National Electric Code, the standards of the Occupational Safety and Health Administration, all state and local regulations, and good and accepted industry practices. Close coordination with public and private utilities or any other cable operator in the area, and the use of accepted practices and procedures, is retired to avoid damage or adverse impact on existing or planned facilities.
(C) At the stages of any construction specified in the franchise agreement, the franchisee must perform at its expense proof of performance tests designed to demonstrate compliance with the retirements of this chapter, the franchise agreement, and FCC requirements. The franchisee must provide the proof of performance test results promptly to the city.
(D) The city may require periodic proof of performance tests to be performed at the expense of the franchisee. The franchisee must provide the test results promptly to the city.
(E) The franchisee must advise the city when a proof of performance test is scheduled so that the city may have an observer present.
(F) A franchisee must not design, install or operate its facilities in a manner that will interfere with the signals of any broadcast station, the electrical system located in any building, the cable system of another franchisee, or individual or master antennas used for receiving television or other broadcast signals.
(Ord. 89-15, passed 5-8-89)
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