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(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)
(A) A transfer of a franchise must not occur without prior approval of the city.
(B) An application to transfer a franchise must meet the requirements of § 118.14 and provide complete information on the proposed transaction, including details on the legal, character, financial, technical and other pertinent qualifications of the transferee, and on the potential impact of the transfer on subscriber rates. At minimum, the information required in § 118.14(E)(l) through (4) must be provided by the proposed transferee. The information required in § 118.14(E)(5) through (10) must also be provided whenever the proposed transferee expects material changes to occur in those areas. Transfer applications should be filed at least 90 days prior to the anticipated date of the proposed transaction.
(C) Final action on an application for transfer of a franchise must be taken by the Council. In making a determination on such an application, the Council will consider the legal, financial, technical and character qualifications of the transferee to operate the system and whether operation by the transferee would adversely affect the cable services to subscribers or otherwise be contrary to the public interest.
(D) Approval by the city of a transfer of a franchise does not constitute a waiver or release of any of the rights of the city under this chapter or the franchise agreement.
(Ord. 89-15, passed 5-8-89)
(A) A franchise may be revoked by the Council for failure to construct as required, operate or maintain the cable system as required by this chapter or the franchise agreement or for other material breach of this chapter or the franchise agreement. However, where the city has issued a franchise specifically conditioned upon the completion of construction or other specific obligation by a specified date pursuant to § 118.15(B), failure of the franchisee to complete construction or comply with other specific obligation as required will result in the automatic forfeiture of the franchise without further action by the city, unless the city, at its discretion and for good cause demonstrated by the franchisee, grants an extension of time. If within 30 calendar days following written notice from the city to the franchisee that it is in material breach of this chapter or the franchise agreement, the franchisee has not taken corrective action or corrective action is not being actively and expeditiously pursued, the Council, acting on its own motion or upon the recommendation of the Mayor, may give written notice to the franchisee of its intent to consider revocation of the franchise or reducing its term, stating its reasons.
(B) Before final action can be taken, the Council shall hold a public hearing at which time the franchisee and members of the public must be given an opportunity to present evidence and make argument. Following the public hearing the Council shall determine whether or not to revoke the franchise or reduce its term based on any recommended decision, the evidence and argument presented at the hearing, and other evidence of record. The Council’s determination shall be reflected in a written opinion setting forth the reasons for its decision.
(C) Any franchise may, at the option of the city, be revoked 120 calendar days after an assignment for the benefit of creditors or the appointment of a receiver or trustee to take over the business of the franchisee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding, unless within that 120-day period:
(1) Such assignment, receivership or trusteeship has been vacated; or
(2) Such assignee, receiver or trustee has fully complied with the terms and conditions of this chapter and the franchise agreement and has executed an agreement, approved by the court having jurisdiction, assuming and agreeing to be bound by the terms, and conditions of the franchise.
(D) In the event of foreclosure or other judicial sale of any of the facilities, equipment or property of a franchisee, the city may revoke the franchise by serving notice upon the franchisee and the successful bidder at the sale, in which event the franchise and all rights and privileges of the franchise will be revoked 30 calendar days after serving such notice, unless:
(1) The city has approved the transfer of the franchise to the successful bidder; and
(2) The successful bidder has covenanted and agreed with the city to assume and be bound by the terms and conditions of the franchise.
(E) If the city revokes a franchise, or if for any other reason a franchisee abandons, terminates or fails to operate or maintain service to its subscribers, the following procedures and rights are effective:
(1) 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 franchisee’s and/or surety’s expense.
(2) The city, by resolution of the Council may acquire ownership of the cable system at an equitable price.
(3) If a cable system is abandoned by a franchisee, the city may sell, assign or transfer all or part of the assets of the system.
(F) The city may, upon resolution of the Council, acquire ownership of and operate a cable system, whether or not such ownership is acquired following revocation or forfeiture of a franchise.
(Ord. 89-15, passed 5-8-89)
(A) If the city exercises a right to purchase a cable system pursuant to this chapter or a franchise agreement and the city and franchisee are unable to agree on a price for the purchase of the system, the price may be determined by arbitration. Other matters that are arbitrable under the provisions of a franchise agreement may be subjected to the arbitration procedures specified below.
(B) The arbitration procedure employed shall be consistent with the rules and procedures of the American Arbitration Association. The city and the franchisee will each select a qualified arbitrator. The two persons selected shall select a third qualified arbitrator, and the three arbitrators will constitute a panel whose decision is binding on both parties. The fees of the first two arbitrators shall be paid by the party selecting such person, and the third person shall be compensated one-half by the city and one-half by the franchisee. The general costs of the proceeding shall be shared equally by the city and the franchisee.
(Ord. 89-15, passed 5-8-89)
(A) It is the right of all subscribers to receive all available services from the franchisee as long as their financial and other obligations to the franchisee are satisfied.
(B) In the event of a termination or transfer of the franchise for whatever reason, the franchisee must do everything in its power to ensure that all subscribers receive continuous, uninterrupted, service regardless of the circumstances. The franchisee must cooperate with the city to operate the system for a temporary period following termination or transfer as necessary to maintain continuity of service to all subscribers. The temporary period will not exceed six months without the franchisee’s written consent. During such period the cable system must be operated under such terms and conditions as the city and the franchisee may agree, or such other terms and conditions that will continue, to the extent possible, the same level of service to subscribers and that will provide reasonable compensation to the cable operator.
(C) If the franchisee discontinues service to its subscribers without city approval, the franchise may immediately be terminated, and the city is empowered to occupy and take possession of all facilities and property, real and personal, related to the cable system for the purpose of temporarily operating the system. The city may undertake such, operation itself or authorize operation by a contractor.
(Ord. 89-15, passed 5-8-89)
It is unlawful for any person to offer any gift, favor, loan, service, promise, employment or anything of value to a city official or employee, or for a city official or employee to solicit or accept any such thing of value, for the purpose of influencing the grant, modification, renewal, transfer, or any other matter affecting a franchise or the administration or enforcement of this chapter.
(Ord. 89-15, passed 5-8-89)
Rates and charges may be changed by the franchisee following a minimum 30 days prior notice to the city and the subscribers. At such time as federal law permits rate regulation, the city reserves the rights to implement procedures to impose such regulation.
(Ord. 89-15, passed 5-8-89)
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