§ 11-703. Cable Franchise; Open Video System Franchise. 147
   (1)   Franchise Required. No Person may own, construct, operate or maintain a Cable System or Open Video System within the City, provide Cable Service over a Cable System, or provide OVS Service over an Open Video System, unless a Cable Franchise or OVS Franchise, whichever is applicable, is first issued by the City to the owner of such Cable System or Open Video System in accordance with this Chapter. A Cable Franchise or Open Video System Franchise or any renewal thereof may be issued by the City only after it is authorized by separate ordinance of City Council, and shall not become effective unless or until so authorized. In considering such an authorization, the Council shall consider whether the applicant has demonstrated:
      (a)   that it has no substantial history of non-compliance with applicable law and regulation relating to the management of, and the construction and maintenance of Facilities in, Streets and rights-of-way, wherever located;
      (b)   that it possesses all licenses, permits, and authorizations required by the Federal Communications Commission, the PUC, the Commonwealth, and the City as a condition of its using the Right-of-Way and furnishing the Services and operating the Facilities proposed by the applicant;
      (c)   that its Cable System or Open Video System is responsive to the needs and interests of the local community and has satisfied such further requirements of Council as are consistent with the Cable Acts and the applicable regulations of the Federal Communications Commission for granting or renewing a Cable Franchise or Open Video System Franchise.
   (2)   Term of Franchise. Unless otherwise specified in a Cable Franchise or OVS Franchise, no Cable Franchise or OVS Franchise shall be issued for a period of more than fifteen (15) years.
   (3)   Compensation from Cable Franchisees. Except as expressly provided otherwise in an existing Franchise Agreement, each Cable Franchisee shall pay to the City the maximum cable franchise fees and other compensation permitted by law, and all fees required for ROW Registration, Street Closure Permits and Street Opening Permits, or otherwise required by law pursuant to this Chapter.
   (4)   Compensation from OVS Franchisees. Every OVS Franchisee shall pay compensation to the City as follows:
      (a)   The OVS Franchisee shall pay to the City all fees required for ROW Registration, Street Closure Permits and Street Opening Permits, or otherwise required by law pursuant to this Chapter, and a percentage of its Gross Revenue each month equal to the maximum gross revenue percentage paid by any Cable Franchisee in the City for the same month; provided, however, that if there is no Cable System operating in the City, on account of all Cable Systems having become Open Video Systems in accordance with applicable federal law, the percentage shall be equal to the maximum percentage that was required of any Cable Franchisee pursuant to this Section 11-703, subject to any limit that may be imposed by federal law. To the extent the OVS System is used for the provision of Telecommunications Service, and except as prohibited by law, the OVS Franchisee shall also pay all other fees required of Telecommunications Providers under the Code.
      (b)   For purposes of this Section 11-703, and except as prohibited by the Cable Acts or regulations of the Federal Communications Commission, Gross Revenue shall be defined to include all the revenues derived from the operation of a Cable System or an Open Video System to provide Cable Services or OVS Services; and, except as required otherwise by federal law, shall include the revenues of affiliated persons using the capacity of the Open Video System or Cable System to provide Cable Service or OVS Service to subscribers for a fee, to the extent the OVS franchisee does not otherwise pay a fee to the City on account of such revenues.
      (c)   Except as expressly provided otherwise in an existing OVS Agreement or in subsection (a) above, each OVS Franchisee shall pay to the City the maximum fees on its gross revenue and other compensation permitted by law, and all fees required of Franchisees under Section 11-706.
   (5)   Transfer of Interest. No Transfer of Interest in any Cable System or Open Video System may take place except as provided in the Cable Acts and the applicable Franchise Agreement(s), and shall require approval by ordinance of City Council unless expressly provided otherwise in an approved Franchise Agreement. No Transfer of Interest in the Registered User’s Facilities shall take place without the prior written consent of the City. The City, in granting consent, and City Council, in approving such ordinance, shall consider whether the Transfer of Interest is consistent with the terms and requirements of applicable law and meets the requirements of subsection 11-701(2) and regulations under that Section, and complies with all applicable requirements of the Cable Acts.
   (6)   A Cable Franchisee and an OVS Franchise shall be required to obtain and maintain a Right of Way Registration pursuant to subsection 11-701(2) and to pay the fees required thereof under Section 11-706.

 

Notes

147
   Amended, Bill No. 230454 (approved July 12, 2023). See note 145 for effective date provisions.