A. Grant: A franchise granted by the city under the provisions of this chapter shall encompass the following purposes:
1. To engage in the business of providing cable service, and such other services as may be permitted by law, which grantee chooses to provide to subscribers within the designated service area.
2. To erect, install, construct, repair, rebuild, reconstruct, replace, maintain and retain cable lines, related electronic equipment, supporting structures, appurtenances and other property in connection with the operation of the cable television system in, on, over, under, upon, along and across streets, public property or other public places within the designated service area.
3. To maintain and operate said franchise properties for the origination, reception, transmission, amplification and distribution of television and radio signals and for the delivery of cable services, and such other services as may be permitted by law.
4. To set forth the obligations of a grantee under the franchise.
B. Franchise Required: It shall be unlawful for any person to construct, install or operate a cable television system in the city within any street or public property without a properly granted franchise awarded pursuant to the provisions of this chapter.
C. Term Of Franchise: A franchise granted hereunder shall be for a term established in the franchise agreement, commencing on grantor's adoption of an ordinance or resolution authorizing the franchise.
D. Franchise Renewal: A franchise granted hereunder may be renewed upon application by grantee pursuant to the provisions of applicable state and federal law and of this chapter.
E. Franchise Territory: Any franchise shall be valid within all the territorial limits of the city, and within any area added to the city during the term of the franchise, unless otherwise specified in the franchise agreement.
F. Federal Or State Jurisdiction: This chapter shall be construed in a manner consistent with all applicable federal and state laws, and shall apply to all franchises granted or renewed after the effective date of this chapter to the extent permitted by applicable law.
G. Franchise Nontransferable:
1. Grantee shall not sell, transfer, lease, assign, sublet or dispose of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, the franchise or any of the rights or privileges therein granted, without the prior consent of the city council and then only upon such terms and conditions as may be prescribed by the city council, which consent shall not be unreasonably denied or delayed; provided that such consent shall not be required for transactions between any parent, subsidiary or commonly owned entities. Any attempt to sell, transfer, lease, assign or otherwise dispose of the franchise without the consent of the city council shall be null and void. The granting of a security interest in any grantee assets, or any mortgage or other hypothecation solely for purposes of financing, shall not by itself be considered a transfer for the purposes of this section.
2. The requirements of subsection G1 of this section shall apply to any change of control of grantee. The word "control" as used herein is not limited to major stockholder or partnership interests, but includes actual working control in whatever manner exercised. The acquisition or accumulation by any person or group of persons acting in privity of forty percent (40%) of the voting shares or interests in grantee or any person which controls grantee shall be presumed to constitute a change of control of grantee, but grantee shall be entitled to rebut such presumption.
3. Grantee shall notify grantor in writing of any foreclosure or any other judicial sale of all or a substantial part of the franchise property of grantee. Such notification shall be considered by grantor as notice that a change in control of ownership of the franchise has taken place and the provisions under this section governing the consent of grantor to such change in control of ownership shall apply.
4. For the purpose of determining whether it shall consent to such change, sale, transfer, lease, assignment, sublease, disposal or acquisition of control, grantor may inquire into the qualifications of the prospective transferee or controlling party, and grantee shall assist grantor in such inquiry. In seeking grantor's consent to any change of ownership or control, grantee shall have the responsibility of ensuring that the transferee completes any required application identical or substantially similar to FCC form 394 "Application for Franchise Authority Consent to Assignment of Control of Cable Television Franchise", or any successor form. An application shall be submitted to grantor not less than sixty (60) days prior to the date of transfer. The transferee shall be required to establish that it possesses the qualifications and financial and technical capability to operate and maintain the system and comply with all franchise requirements for the remainder of the term of the franchise. If the legal, financial, background, and technical qualifications of the applicant are satisfactory to grantor, grantor shall consent to the transfer of the franchise on such terms and conditions as it determines in its discretion. The consent of grantor to such transfer shall not be unreasonably denied or delayed.
5. Any financial institution having a pledge of grantee or its assets for the advancement of money for the construction and/or operation of the franchise shall have the right to notify grantor that it or its designee satisfactory to grantor shall take control of and operate the cable television system, in the event of a grantee default of its financial obligations. Further, said financial institution shall also submit a plan for such operation within thirty (30) days of assuming such control that will ensure, to grantor's satisfaction, continued service and compliance with all franchise requirements, at least the same level, during the term the financial institution exercises control over the system. The financial institution shall not exercise control over the system for a period exceeding one year unless extended by grantor in its discretion, and during said period of time it shall have the right to petition grantor to transfer the franchise to another grantee. If, by the end of the one year period, the financial institution has not petitioned for transfer to another grantee, or if grantor does not consent to such transfer, the franchise shall cease and terminate at grantor's option.
6. At the time an application for a transfer is submitted to grantor, grantee shall deposit with grantor an application fee of one thousand five hundred dollars ($1,500.00) to cover grantor's reasonable out of pocket processing and review expenses in connection with the transfer of the franchise or of control of the franchise. The application fee shall not be charged against any franchise fee due to grantor during the term of the franchise.
H. Geographical Coverage:
1. Grantee shall design, construct and maintain the cable television system to have the capability to pass every dwelling unit within the public streets and rights of way and public property in the city, subject to any service area and line extension requirements of the franchise agreement.
2. After service has been established by activating trunk and/or distribution cables for any service area, grantee shall provide service to any requesting subscriber within that service area within thirty (30) days from the date of request, provided that grantee is able to secure all rights of way necessary to extend service to such subscriber within such thirty (30) day period on reasonable terms and conditions.
I. Nonexclusive Franchise: Any franchise granted shall be nonexclusive. Grantor specifically reserves the right to grant, at any time, such additional franchises for a cable television system or any component thereof, as it deems appropriate, subject to applicable state and federal law, provided that if grantor grants an additional franchise on terms more favorable to the second grantee (whether by the grant of greater benefits or the imposition of lesser obligations), then the initial grantee shall have the right to renegotiate its franchise to incorporate the more favorable terms.
J. Multiple Franchises:
1. Grantor may grant any number of franchises subject to applicable state or federal law. Grantor may limit the number of franchises granted, based upon, but not necessarily limited to, the requirements of applicable law and specific local considerations, such as:
a. The capacity of the public rights of way to accommodate multiple cables in addition to the cables, conduits and pipes of the utility systems, such as electrical power, telephone, gas and sewerage.
b. The benefits that may accrue to cable subscribers as a result of cable system competition, such as lower rates and improved service.
c. The disadvantages that may result from cable system competition, such as the requirement for multiple pedestals on residents' property, and the disruption arising from numerous excavations of the rights of way.
2. Each grantee awarded a franchise to serve the entire city shall offer cable service to all residences in the city, in accordance with construction and service schedules mutually agreed upon between grantor and grantee, line extension policies, and applicable law.
3. Developers of new residential housing with underground utilities shall provide conduit to accommodate cables for at least two (2) cable systems.
4. Grantor may require that any new grantee be responsible for its own underground trenching and the costs associated therewith, if, in grantor's opinion, the rights of way in any particular area cannot feasibly and reasonably accommodate additional cables. (Ord. 95-011, 7-25-1995)