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§ 113.04  AUTHORITY GRANTED BY FRANCHISE.
   (A)   Any franchise granted pursuant to the provisions of this subchapter shall authorize and permit the grantee to do the following:
      (1)   Erect, install, construct, repair, replace, re-construct, maintain and retain, in, on, over, under, across and along any public street, alley, way or place now laid out and dedicated and all extensions thereof, such poles, wires, cable, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments and other property as may be necessary and appurtenant to the CATV system; and in addition, so to use, operate and provide similar facilities or properties rented or leased from other persons, firms or corporations, including, but not limited to, any public utility or other grantee of any franchise of this village;
      (2)   Maintain and operate facilities and properties for the collection, transmission, conduction, amplification, conversion and distribution of programs and other services by use of electricity, radiation or other energy source; or
      (3)   Solicit, sell, distribute and make charge to subscribers within the village for connection to the CATV system of the grantee.
   (B)   A franchise granted solely to traverse any portion of the village in order to provide service outside the village, shall not authorize nor permit the grantee to solicit, sell, distribute or make any charge to subscribers within the village, nor to render any service or connect any subscribers within the village to the CATV system of the grantee.
(Ord. 77, passed 8-6-1981)
§ 113.05  APPLICATION FOR FRANCHISE.
   All applications to construct, operate or maintain any CATV system in this village or to traverse any portion of the village for transmitting or conveying of such service elsewhere, shall be filed with the Village Clerk, and each application shall set forth, contain or be accompanied by the following:
   (A)   The name, address and telephone number of the applicant;
   (B)   A detailed statement of the corporate or other business entity organization of the applicant including, but not limited to, the following;
      (1)   The names, residence addresses and business addresses of all officers, directors and partners or business associates of the applicant;
      (2)   The names, residence addresses and business addresses of all persons and entities having an ownership interest in the applicant and the respective ownership share of each such person or entity;
      (3)   The names and addresses of any parent or subsidiary of the applicant and of any other business entity owning or controlling in whole or in part or owned or controlled in whole or in part by the applicant, and a statement describing the nature of any such parent or subsidiary business entity, including, but not limited to, all CATV or similar systems owned or controlled by the applicant, its parent or subsidiary and the areas served thereby;
      (4)   A detailed description of all previous experience of the applicant as to providing CATV service or related or similar services;
      (5)   A detailed and complete financial statement of the applicant, prepared by certified public accountant, for the fiscal year next preceding the date of the application hereunder, or a letter or other acceptable evidence in writing from a responsible lending institution or funding source, addressed to both the applicant and the Council, setting forth the basis for a study performed by such lending institution or funding source, and a clear statement of its intent as a lending institution or funding source to provide whatever capital shall be required by the applicant to construct and operate the proposed system in the village, or a statement from a certified public accountant, certifying that the applicant has available sufficient free, net and uncommitted cash resources to construct and operate the proposed system in this village; and
      (6)   A statement indentifying, by place and date, any other cable television franchise(s) awarded to the applicant, its parent or subsidiaries; the status of said franchise(s) with respect to completion thereof; the total cost of completion of such system(s); and the amount of applicant’s and its parent’s or subsidiary’s resources committed to the completion thereof.
   (C)   A detailed description of the proposed plan of operation of the applicant, which shall include, but not be limited to, the following:
      (1)   A detailed map indicating all areas proposed to be served, routes to be taken, a diagram of the equipment which will be exposed and a proposed time schedule for the installation of all equipment necessary to become operational throughout the entire area to be served;
      (2)   A statement or schedule setting forth all proposed classifications of rates and charges to be made against subscribers and all rates and charges as to each of any said classification, including installation charges, service charges and special, extraordinary or other charges. The purchase price, terms and nature of any optional or required equipment, device or other thing to be offered for sale to any subscriber shall be described and explained in detail; and
      (3)   A detailed statement describing the actual equipment and operational standards proposed by the applicant.
   (D)   A copy of the form of any agreement undertaking or other instrument proposed to be entered into between the applicant and any subscriber;
   (E)   Any other information pertinent to the subject matter of such application and requested by the Committee; and
   (F)   An application fee in the sum of $250 which shall be in the form of cash, certified or cashier’s check or money order to pay the costs of studying, investigating and otherwise processing such application and shall not be returnable or refundable in whole or in part except to the extent that such fee exceeds the actual cost incurred by the village in studying, investigating and otherwise processing the application.
(Ord. 77, passed 8-6-1981)
§ 113.06  FRANCHISE PROCEDURE.
   (A)   The Village Council may, by advertisement or any other means, solicit and call for application for CATV franchises, and may determine and fix the time for filing such applications.
   (B)   Upon receipt of any application for franchise, in manner, time and form as herein or otherwise provided, the Village Clerk shall forward and deliver same to the Committee.
   (C)   Upon receiving the same from the Village Clerk, as aforesaid, the Committee shall cause such application to be investigated, shall prepare a report of such investigation, shall make its recommendations respecting such application, and shall cause said report and recommendations to be placed upon the agenda of a regular or special session of the Village Council. A copy of such report and recommendations and notice of the date it will be presented to the Village Council shall be mailed or otherwise delivered to the applicant at the address listed in the application. The Village Clerk shall cause notice of such meeting to be published at least once in a newspaper of general circulation in the village, stating the hour, date and place of the meeting, stating that the proposed franchise will be considered, and stating that comments from the public will be heard.
   (D)   The Village Council shall receive the report and recommendations of the Committee, shall consider the same together with such application, and comments of the public and shall make its determination either that such application be accepted upon such terms and conditions as the Village Council shall determine, or that such application be rejected. The Village Council may make its determination at the regular or special session at which the Committee report is received or may defer the decision to a subsequent regular session of the Village Council. In making any determination as to any application, the Council shall consider the quality of the service proposed, the rates to subscribers, income to the village, experience, character and financial responsibility of the applicant and its management and owners, the technical and performance quality of the equipment to be used, the willingness and ability of the applicant to meet construction and physical requirements, policy considerations, franchise limitations and requirements imposed by this subchapter and any other considerations deemed pertinent by the Village Council.
   (E)   If the Village Council shall determine that such application shall be rejected, such determination shall be final and conclusive. If the Village Council shall determine that such application shall be accepted, the Council shall:
      (1)   Decide and specify the terms and conditions of any franchise to be granted hereunder and as herein provided; and
      (2)   Pass an ordinance or resolution granting such franchise, stating the name of the grantee, the character of the franchise and the terms and conditions upon which such franchise is granted.
(Ord. 77, passed 8-6-1981)
§ 113.07  ACCEPTANCE OF FRANCHISE.
   (A)   No franchise hereunder shall become effective for any purpose unless and until a written acceptance thereof shall have been filed with the Village Clerk, and such written acceptance shall operate as an acceptance of each and every term and condition and limitation contained in this subchapter, and in such franchise.
   (B)   Such written acceptance shall be filed by the grantee not later than 30 days after grant of the franchise as provided above, and in default of such written acceptance as herein required, the grantee shall be deemed to have rejected the same.
(Ord. 77, passed 8-6-1981)
§ 113.08  FRANCHISE REQUIREMENTS.
   In addition to any other franchise requirements hereunder, or made or adopted as herein provided, the following requirements shall apply to any franchise granted or renewed by the Village Council under this subchapter.
   (A)   Franchise payments, operations within franchise area. In consideration of the granting and exercise of a franchise to use the streets of the franchise area for the purpose of operating a cable television system for the use and benefit of subscribers therein, the grantee shall pay yearly to the village during the entire time of any franchise granted pursuant to this subchapter, an annual franchise fee equal to 3% of the grantee’s yearly gross revenues derived from all cable services provided by the grantee within the village, or $250, whichever is greater.
   (B)   Franchise payments, operations outside franchise area. In consideration of the granting and exercise of a franchise to use the streets of the franchise area solely for the purpose of providing cable television service to subscribers outside the franchise area, the grantee shall pay to the village during the entire life of the franchise, a franchise fee as specified by the Council when such franchise is granted, which fee shall be separate and distinct from that specified in division (A) above.
   (C)   Franchise payments not in lieu of taxes. Any franchise payments to the village by the grantee shall not be in lieu of any occupation, income, license or property tax or similar levy, assessment or charge which would otherwise apply to and be payable by the grantee.
   (D)   Corporate surety bond re: village. The franchise granted shall specify that upon acceptance of such franchise, the grantee shall file with the Village Clerk and shall thereafter during the entire term of such franchise maintain in full force and effect a corporate surety bond or other adequate surety agreement in the amount and kind specified in the franchise granted and conditioned that in the event the grantee shall fail to comply with any one or more of the provisions of such franchise, then there shall be recoverable jointly and severally from the principal and surety any damages or costs suffered or incurred by the village or by any subscriber as a result thereof, including attorneys’ fees and costs of any action, or proceeding, and including the full amount of any compensation, indemnification, cost of removal of any property or other costs which may be incurred up to the full principal amount of such bond; and said condition shall be a continuing obligation during the entire term of such franchise and thereafter until the grantee shall have satisfied in full any and all obligations to the village and any subscriber which arise out of or pertain to said franchise. Neither the provisions of this section, nor any bond accepted by the village pursuant hereto nor any damages recovered by the village thereunder shall be construed to excuse faithful performance by the grantee, or limit the liability of the grantee under any franchise issued pursuant to this subchapter.
   (E)   Comprehensive liability insurance. Upon acceptance of such franchise, the grantee shall file with the Village Clerk and shall thereafter during the entire term of such franchise maintain in full force and effect a comprehensive liability policy of insurance with limits of not less than $500,000 for property damage to any one person, $500,000 for property damage in any one accident, $500,000 for personal injury to any one person and $1,000,000 for personal injury in any one accident or such higher amounts as the Village Council may fix in the franchise, or any amendment thereto, and of such insuring institutions, form and substance as shall be approved by the Committee, and which shall assure the grantee, and shall provide primary coverage for the village, its officers, board, committees, agents and employees against liability for loss or damage for personal injury, death and property damage occasioned by any activity or operation of the grantee under such franchise.
   (F)   Hold harmless agreement. The grantee shall indemnify and hold harmless the village, its officers, board, committees, agents and employees against and from any and all claims, demands, causes of actions, actions, suits, proceedings, damages, (including, but not limited, to damages to village property and damages arising out of copyright infringements, and damages arising out of any failure by the grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the grantee’s cable television system), costs or liabilities (including costs or liabilities of the village with respect to its employees), of every kind and nature whatsoever including, but not limited to, damages for injury or death or damage to person or property, and regardless of the merit of any of the same, against all liability to others, and against any loss, cost and expense resulting or arising out of any of the same including any attorney fees, accountant fees, expert witness or consultant fees, court costs, per diem expense, travelling and transportation expense or other costs or expense arising out of or pertaining to the exercise or the enjoyment of any franchise hereunder by the grantee or the granting thereof by the village.
   (G)   Defense of litigation. The grantee shall at the sole risk and expense of the grantee, upon demand of the village, made by and through the Village Attorney, appear in and defend any and all suits, actions or other legal proceedings whether judicial, quasi-judicial, administrative, legislative or otherwise, brought or instituted or had by third persons or duly constituted authorities, against or affecting the village, its officers, board, committees, agents or employees and arising out of or pertaining to the exercise or the enjoyment of such franchise, or the granting thereof by the village.
(Ord. 77, passed 8-6-1981)
§ 113.09  CONSTRUCTION AND USE OF FACILITIES.
   (A)   Within 30 days after acceptance of any franchise, the grantee shall proceed with due diligence to obtain all necessary permits and authorizations which are required in the conduct of its business, including, but not limited, to any utility joint use attachment agreements, microwave carrier licenses, and any other permits, licenses and authorizations to be granted by duly constituted regulatory agencies having jurisdiction over the operation of cable television systems, or associated microwave transmissions facilities. In connection therewith, copies of all petitions, applications and communications submitted by the grantee to the Federal Communications Commission or any other federal or state regulatory commission or any agency having jurisdiction in respect to any matters affecting the grantee’s cable television operations, shall also be submitted simultaneously to the Committee.
   (B)   Within 30 days after obtaining all necessary permits, licenses and authorizations, including right of access to poles and conduits, the grantee shall commence construction and installation of the CATV system.
   (C)   Within two years after the commencement of construction and installation of the system, the grantee shall complete construction of the facilities needed to permit the reception of broadcast signals, the origination of programming within the village, and the distribution of signals to the franchise area. Provided, however, the Village Council may approve exceptions to this requirement upon a showing by the grantee of undue hardship or expense.
   (D)   Failure on the part of the grantee to commence and diligently pursue each of the foregoing requirements and to complete each of the matters set forth herein shall be grounds for termination of such franchise.
   (E)   The grantee shall utilize existing poles, conduits and other facilities whenever possible and shall not construct or install any new, different or additional poles, conduits or other facilities without first securing the written approval of the Committee. Any poles, conduits or other facilities of the grantee to be installed in, under, over, along, across or upon a public street, alley, way or place shall be so located so as to cause minimum interference with the rights of other users of the streets, alleys, ways or places or of property owners who adjoin any of the streets, alleys, ways or places. In the event of disturbance of any public street, alley, place or way by the grantee, it shall, at its own expense, promptly replace and restore such street to as good a condition as before the work causing such disturbance was performed, and to the satisfaction of the Committee.
   (F)   In all sections of the village where all existing cables or other like facilities of utility companies are presently or subsequently placed underground, the grantee shall place its cables or like facilities underground, at the grantee’s expense.
   (G)   The village shall have the right, free of charge, to make additional use, for any public or municipal purpose, whether governmental or proprietary, of any poles, conduits or other facilities erected, controlled, or maintained exclusively by or for the grantee in any street or other public way or public place, provided such use by the village does not interfere with the use by the grantee.
   (H)   The grantee shall at the expense of the grantee, protect, support, temporarily disconnect or temporarily relocate any property of the grantee when, in the opinion of the Committee, the same is required by reason of street construction, change or establishment of street grade, installation of sewers, drains, waterpipes, power lines or signal lines.
   (I)   In the event the use of any part of the system of the grantee is discontinued for any reason for a continuous period of 30 days, without prior written notice to and approval by the Committee, or in the event any part of such system has been installed in any street or other area without complying with the requirements hereof, or in the event any franchise shall be terminated, cancelled or shall expire, the grantee shall, at the option of the village, and at the expense of the grantee and at no expense to the village, promptly remove from any street or other area all property of the grantee and the grantee shall promptly restore the street or other area from which such property has been removed to such condition as the Committee shall approve; provided the Village Council may, upon written application therefore by the grantee; approve the abandonment of any such property in place by the grantee and under such terms and conditions as the Village Council may prescribe; and upon abandonment of any such property in place, the grantee shall cause to be executed, acknowledged and delivered to the village such instruments as shall be approved by the Committee, conveying the ownership of such property to the village.
   (J)   Upon the failure, refusal or neglect of the grantee to cause any work or other act required by law or by this subchapter to be completed in, on, over or under any street within any time prescribed therefor, or upon notice given, where notice is prescribed, the Committee may cause such work or other act to be completed in whole or in part, and upon so doing shall submit to the grantee an itemized statement of the costs thereof, and the grantee shall, within 30 days after receipt of such statement, pay unto the village the entire amount thereof.
(Ord. 77, passed 8-6-1981)
§ 113.10  STANDARDS.
   (A)   General rules. The CATV system of a grantee receiving a franchise shall:
      (1)   Be capable of relaying to subscriber terminals television and radio broadcast signals;
      (2)   Be constructed with the capability of two-way digital signal transmission;
      (3)   Distribute color television signals which it receives;
      (4)   Be constructed and operated so as not to interfere with the television reception of persons not served by the grantee and so as not to interfere with, obstruct or hinder in any manner the operation of any utility serving the village;
      (5)   Provide at least one channel, without charge, for exclusive use of the village and other governmental agencies;
      (6)   Provide at least one channel, without charge, for use by the public school system;  provided, however, the Village Council may waive this requirement at the time a franchise is granted if the franchise so granted provides for the addition of said channel by the grantee at the request of the Village Council, after the Village Council has determined there is a demand for said channel; and
      (7)   Provide at least one channel as a public access channel for use by civic groups and interested citizens; provided, however, the Village Council may waive this requirement at the time a franchise is granted if the franchise so granted provides for the addition of said channel by the grantee at the request of the Village Council, after the Village Council has determined there is a demand for said channel.
   (B)   Additional services. The cable television system may also engage in the business of:
      (1)   Transmitting original cablecast programming not received through television broadcast signals;
      (2)   Transmitting television pictures, film and videotape programs, not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers or subscribers; and/or
      (3) Transmitting and receiving all other signals: digital, voice and audio-visual.
   (C)   Refusal of service. No person, firm or corporation within the service area of the grantee, and where trunk lines are in place, shall be refused service; provided, however, that the grantee shall not be required to provide service to any subscriber who does not pay the applicable connection fee or service charges.
   (D)   Service standards. The grantee shall:
      (1)   Correct malfunctions promptly but in no event later than 24 hours after occurrence; in the event it should be impossible or impractical to correct any malfunctions within 24 hours, then each subscriber whose reception is so disrupted shall receive a rebate from the grantee in the amount of one thirtieth of such subscriber’s monthly charge for every additional 24-hour period that said subscriber’s television reception is so disrupted, unless said disruption in service was entirely beyond the control of the grantee;
      (2)   Answer all complaints by subscribers;
      (3)   Planned interruptions of service, insofar as possible, shall be preceded by a notice given to subscribers 24 hours in advance and shall occur during periods of minimum use of the system;
      (4)   Maintain an office in the village, which office shall be open during the usual business hours, with a local telephone number listed in directories of the telephone company serving the village, which office shall be so operated that complaints and requests for repairs or adjustments may be received at any time, 24 hours a day, seven days a week, provided, however, that the Village Council may waive the requirement of maintaining an office in the village, if the grantee shall maintain an office in the area, subject to the same standards as if in the village, and provide an agent in the village to receive payments and accept complaints; and
      (5)   Provide notice of such office, or area office and local agent, and the grantee’s complaint procedure to each subscriber at the time of initial subscription to the system.
   (E)   Complaint procedures. The Committee shall have primary responsibility for the administration of complaints regarding cable television franchises, and shall adopt procedures to be followed in resolving and processing such complaints.
   (F)   Content. The grantee shall not send, transmit, retransmit or otherwise pass through its system any material, audio or visual, which is obscene under state or local law or any motion picture which has been rated “X” by the Motion Picture Film Board.
   (G)   Failure to provide service. Any grantee of any franchise hereunder who shall, within one year after the payment of any installation charge by any subscriber, fail to operate its system or make its system available to such subscriber, on a regular and continuous basis, shall refund the installation charge to such subscriber, together with interest thereon at not less than 5% per year.
(Ord. 77, passed 8-6-1981)
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