(A) If a franchisee decides to initiate a formal franchise renewal process in accordance with Section 626(a) through (g) of the Cable Act, 47 U.S.C. § 546(a) - (g), it must notify the city within 30 to 36 months of the franchise expiration date. Upon such notification, or at the city’s own initiative, the city must commence the following process:
(1) The city shall review and evaluate the future cable-related community needs and interests and the franchisee’s past performance. The review and evaluation process must include opportunity for public comment.
(2) Immediately upon completion of the review and evaluation process, the city must notify the franchisee that it may file a renewal application. The notice must specify the information to be included in the renewal application and the deadline for filing the application, which must be no earlier than 30 calendar days following the date of the notice. If the franchisee does not submit a renewal application by the specified date, it will be deemed not to be seeking renewal of its franchise.
(3) Upon receipt of the renewal-application, the city shall publish notice of its receipt and may schedule one or more public meetings or implement other procedures under which comments from the public on the application may be received.
(B) In considering a renewal application, the city must consider whether:
(1) The cable operator has substantially complied with the material terms of the existing franchise and with applicable law;
(2) The quality of the cable operator’s service, including signal quality, response to consumer complaints, and billing practices (but without regard to the mix, quality, or level of cable services or other services provided over the system) has been reasonable in light of community needs;
(3) The cable operator has the financial, legal and technical ability to provide the services, facilities, and equipment set forth in its proposal; and
(4) The cable operator’s proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests.
(C) The Council shall hold at least one public hearing to consider the application. An advisory committee or a committee of the Council may make recommendations to the Council prior to its consideration, a copy of which recommendations shall be made available to the franchisee in advance of the Council’s consideration. Following the public hearing on the renewal application, the Council must either:
(1) Pass a resolution agreeing to renew the franchise, subject to the negotiation of a franchise agreement satisfactory to the city and the franchisee, or
(2) Pass a resolution that makes a preliminary assessment that the franchise should not be renewed.
(D) The Council’s action under division (C) above must be taken within four months of the date of the renewal application notice to the franchisee required in division (A)(2) above.
(E) If a preliminary assessment is made that a franchise should not be renewed, at the request of the franchisee or on its own initiative, the city must commence an administrative proceeding in accordance with Section 626(c) of the Cable Act, 47 U.S.C. § 546(c).
(F) The city shall commence an administrative proceeding, initiated by a hearing order which establishes the issues to be addressed in the hearing and the procedures to be followed and appoints a presiding officer for the hearing. Upon the completion of the hearing, the presiding officer shall issue a recommended decision. Parties to the hearing and the public shall have 30 calendar days to comment on the recommended decision after its issuance.
(G) Based on the recommended decision, the comment and arguments presented, and other evidence of record, the Council, following a public hearing, shall make a final determination on whether to grant or deny the renewal application. The Council shall issue a written decision setting forth the reasons for its decision.
(H) The provisions of divisions (A) through (G) above notwithstanding, a franchisee may submit a proposal for renewal of a franchise in accordance with 47 U.S.C. § 546(h). The city must hold one or more public hearings or implement other procedures under which comments on the proposal from the public may be received. Following such public hearings or other procedures, the Council shall determine whether the franchise should be renewed and the terms and conditions of any renewal. In making its determination the Council shall not consider the pendency of any other application for a franchise.
(I) Once the Council grants a renewal application, the city and the franchisee must agree on a franchise agreement, pursuant to the procedures specified in divisions (E) through (J) of § 118.15, before the renewal becomes effective.
(J) If renewal of a franchise is denied, the city may acquire ownership of the cable system or effect a transfer of ownership of the system to another person upon the agreement of the owner of the facilities and approval of the Council. Any such acquisition by the city must be at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself.
(K) If renewal of a franchise is denied and the city does not purchase the cable system, the city may require the former franchisee to remove its facilities and equipment. If the former franchisee fails to do so within a reasonable period of time, the city may have the removal done at the former franchisee’s and/or surety’s expense.
(Ord. 89-15, passed 5-8-89)