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HomeMy WebLinkAbout3934 ORDINANCE NO. 3934 ORDINANCE OF THE CITY OF SAN BERNARDINO ESTABLISHING A PROCEDURE FOR THE GRANTING OF FRANCHISES FOR CABLE TELEVISION SYSTEMS. THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Definitions. For the purposes of this ordinance, the following terms, phrases, words, abbreviations, and their derivations shall have the meaning given herein. When not inconsistent with the context, I words used in the present tense include the future tense, words I in the plural number include the singular number, and words in the singular number include the plural number: (a) "City" shall mean the City of San Bernardino, a municipal corporation and charter city of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or re-incorporated form. (b) "Council" shall mean the governing or legislative body of the City of San Bernardino. (c) "Chief Administrative Officer" shall mean the city manager, city administrator, or other designation of the city's chief administrative officer, or any designee thereof. (d) "Franchise" shall mean and include any authorization granted by Councilor hereunder in terms of a franchise, privilege permit, license or otherwise to construct, operate and maintain a cable television system within all or a specified area in the City Any such authorization, in whatever form granted, shall not mean and include any license or permit required for the privilege of transacting and carrying on a business within the City as required by other ordinances and laws of this City. 2 (e) "Person" shall mean any natural person and all 3 domestic and foreign corporations, associations, syndicates, joint 4 stock corporations, partnerships of every kind, clubs, business or 5 common law trusts, and societies. 6 (f) "Grantee" shall mean the person, firm or corporation 7 granted a franchise by the Council under this ordinance, or other 8 law, and the lawful successor, transferee or assignee of said 9 person, firm or corporation. 10 (g) "Street" shall mean the surface, the air space above II the surface and the area below the surface of any public street, 12 other public right of way or public place, including public 13 utility easements. 14 (h) "Property of Grantee" shall mean all property owned, 15 installed, or used within the City by a Grantee in the conduct of 16 a cable television system business under the authority of a 17 franchise granted pursuant to this ordinance or other law. 18 (i) "Subscriber" or "User" shall mean any person or 19 entity receiving for any purpose any service of the Grantee's 20 cable television system including, but not limited to, the con- 21 ventional cable television system service of retransmission of 22 television broadcast, radio signals, Grantee's original cable- 23 casting, and the local government, education and public access 24 channels; and other services, such as leasing of channels, data 25 and facsimile transmission, pay television, and police, fire and 26 similar public service communication. 27 (j) "Cable television system"; "CATV"; and "CTV", for the 28 purpose of this ordinance, are terms describing a system employing -2- antennae, microwave, wires, wave-guides, coaxial cables, or other 2 conductors, equipment or facilities, designed, constructed or 3 used for the purpose of: 4 (1) collecting and amplifying local and distant 5 broadcast television or radio signals and distributing and trans- 6 [ Imitting i I received them; 7 (2) transmitting original cablecast programming not 8 through television broadcast signals; 9 I I tape I 'whether or not (3) transmitting television pictures, 10 programs, not received through broadcast television signals, 1I encoded or processed to permit reception by only 12 selected receivers; 13 (4) transmitting and receiving all other signals: 14 digital, voice and audio-visual; provided, however, that any of 15 the services, permitted hereunder to be performed, as described 16 above, shall be those performed by the Grantee for subscribers, 17 as herein defined, in the operation of a cable television or CATV 18 system franchised by the City and not otherwise. 19 SECTION 2. Franchise to install and operate. 20 (a) A non-exclusive franchise to install, construct, 21 operate, and maintain a cable television system on streets within 22 all or a specific portion of the City may be granted by the Counci 23 to any person, whether operating under an existing franchise, who 24 or which offers to furnish and provide such system under and pur- 25 suant to the terms and provisions of this ordinance. 26 No provision of this ordinance may be deemed or construed 27 as to require the granting of a franchise when in the opinion of 28 the Council it is in the public interest to restrict the number of -3- Grantees to one or more. 2 (b) When and in the event that the Grantee of any fran- 3 chise uses in his cable television system distribution channels 4 furnished to the Grantee by a telephone company pursuant to 5 tariff or contract on file with a regulatory body having juris- 6 diction and said Grantee makes no use of the streets independent 7 of such telephone company-furnished facilities, said Grantee 8 shall be required to comply with all of the provisions hereof as 9 a "Licensee" and in such event whenever the term "Grantee" is used 10 herein it shall be deemed to mean and include "Licensee". II SECTION 3. Cable television service. 12 (a) Basic Service. The cable television system permitted 13 to be installed and operated hereunder shall: 14 (1) be operationally capable of relaying to sub- 15 scriber terminals those television and radio broadcast signals for 16 the carriage of which the Grantee is now or hereafter authorized 17 by the Federal Communications Commission; 18 (2) be constructed with the potential of two-way 19 signal transmission; 20 (3) distribute color television signals which it 21 receives in color; 22 (4) provide at least one (1) channel, without charge, 23 for exclusive use of the City. (5) provide at least one (1) channel each for those 24 I 25 leducational and public access uses. 26 [a] until such time as there is demand for each I channel full time for its designated use, public, educational, government, and leased access channel programming may be combined 27 28 -4- I I I I , Ion one or more cable channels. To the extent time is available 1 2 therefor, access channels may also be used for other broadcast and 3 nonbroadcast services except that at least one channel shall be 4 maintained exclusively for the presentation of access programing 5 as required by paragraph (7) of this section. 6 [b] the operator of each such system shall in 7 any case, maintain at least one full channel for shared access 8 programing: provided, however, that, in the case of systems in 9 10 II 12 13 14 15 ,I bandwidth to avoid the displacement of access service. , 16 [c] whenever any of the channels described in 17 paragraphs (4), (5) or (5[b]) of this section is in use during 80 18 percent of the weekdays (Monday-Friday) for 80 percent of the time 19 during any consecutive three-hour period for six consecutive weeks 20 the system operator shall have six months in which to make a new 21 channel available for the same purposes: provided, however, that 22 the channel expansion mandated by this paragraph shall not exceed 23 the activated channel capability of the system. 24 (6) the operator of each such system shall make 25 available all other unused channels, in addition to those which 26 are part of the system's activated channel capability, for the 27 purposes specified in paragraphs (4) and (5): provided, however, 28 that in making available such additional channels the system -5- 1 2 3 4 5 ii 6 !i Ii 7 I ! , 8 I I 9 I I 10 11 12 13 14 L" ]6 ;7 i ~~ [9 20 2] 22 23 24 25 26 27 23 operator shall be under no obligation to install converters. (b) Non-basic services. The cable television system permitted to be installed and operated hereunder, may also engage in the business of: (1) transmitting original cablecast programming not received through television broadcast signals; (2) transmitting television pictures, film and video-: tape programs, not received through broadcast television signals, I I i I I I I I I whether or not encoded or processed to permit reception by only selected receivers or subscribers; (3) transmitting and receiving all other signals: digital, voice and audio-visual. (c) Subscriber complaints. In addition to other service regulations adopted by the Council, and excepting circumstances beyond Grantee's control, such as acts of God, riots and civil disturbances, and in providing the foregoing services, the Grantee shall: (1) limit system failures to minimum time duration by locating and correcting malfunctioning promptly, but in no event longer than twenty-four (24) hours after occurrence, irrespective of holidays or other non-business hours; (2) upon complaint by a subscriber, make a demonstra- tion satisfactory to the chief administrative officer that a / / / / / / / / / / -6- I I I I signal is being delivered which is of sufficient strength and 2 quality to meet the standards set forth in the regulations of the 3 Federal Communications Commission; 4 (3) render efficient service, making repairs promptly 5 and interrupting service only for good cause and for the shortest 6 time possible. Planned interruptions, insofar as possible, shall 7 be preceded by notice given to subscribers twenty-four (24) hours 8 in advance and shall occur during periods of minimum use of the 9 system; 10 (4) maintain an office in the city, which office 11 shall be open during all the usual business hours, with its 12 telephone listed in directories of the telephone company serving 13 the city, and be so operated that complaints and requests for 14 repairs or adjustment may be received at any time, day or night, 15 seven days a week, or provide a local telephone directory listing 16 any "toll free" telephone service maintained on a seven-day, 17 twenty-four (24) hour basis for the receipt of consumer complaints 18 (5) maintain a written record, or "log", listing 19 date of customer complaints, identifying the subscriber and 20 describing the nature of the complaint, and when and what action 21 was taken by Grantee in response thereto; said record shall be 22 kept at Grantee's local office, for a period of five (5) years 23 from the date of complaint, and shall be available for inspection 24 during regular business hours without further notice or demand, 25 by the chief administrative officer. (d) Municipal service. 26 27 (1) with respect to the local government channel, 28 the Grantee shall provide, at the request of the chief adminis- -7 - 1 trative officer, and upon City reimbursement of Grantee's actual 2 jcost, use of Grantee's studio, equipment and technical services , : for production of live and video-tape municipal programs, subject il to scheduling requirements of the Grantee; II II : the 3 4 i i I I without cost, when the system possesses such facilitie~ the Council, subject to the requirements of 5 with respect to the basic television services, (2) 6 Grantee shall provide all subscriber services, and a tie-in 7 i . "connect~on , il Iland as designated by I, federal law to: I I public schools and community colleges 8 9 10 I i , i wi thin the City, and [al II 12 [bl buildings owned and controlled by the City, 13 used for public purposes and not for residential use (fire and 14 police stations excepted). 15 (e) Compatibility and connectibility. 16 (1) It is the desire of the City that all cable 17 television systems franchised hereunder shall, insofar as 18 financially and technically possible, be compatible one with 19 another and with systems adjacent to the City. 20 (2) Wherever it is financially and technically 2] feasible, the Grantee shall so construct, operate and modify the 22 system so as to tie the same into all other systems within and 23 adjacent to the City. (f) Uses permitted. Any franchise granted pursuant to 24 25 the provisions of this ordinance shall authorize and permit 26 the Grantee to engage in the business of operating and providing 27 a cable television system in the City, and for that purpose to 28 erect, install, construct, repair, replace, reconstruct, maintain 29 and retain in, on, over, under, upon, across and along any street, -8- 2 II !i II ~such poles, wires, cable, conductors, ducts, conduit, vaults, II manholes, amplifiers, and appliances, attachments, and other " jl i! property as may be necessary and appurtenant to the cable tele- vision system, and, in addition, so to use, operate, and provide 3 4 5 ! similar facilities or properties rented or leased from other 6 I :1 i!persons, firms or corporations, including but not limited to any II public utility or other Grantee franchised or permitted to do II business in the City. !I SECTION 4. Franchise payments. ;1 I il franchise to use the streets, II II 110f a cable television system, I I during the life of the franchise three (3) percent of the fran- chisee's gross revenues per year from all cable services in the 7 8 9 I I I as herein defined, for the operation I any Grantee shall pay to the City, 10 (a) In consideration of the granting and exercise of a II 12 13 14 15 community except that, to the extent that the Federal Communica- 16 tions Commission, in its Rules and Regulations, at some time in 17 the future allows a City to raise the franchise fee to five (5) 18 percent absent the showings currently required by Section 76.31 19 of the Rules and Regulations of the Federal Communications 20 Commission, the City reserves the right to increase the franchise 21 fee to a level of five (5) percent. The three (3) percent 22 franchise fee is inapplicable to franchises granted before the 23 adoption of this ordinance. 24 (b) The percentage payments shall be made in the manner, 25 and at times directed in said franchise or in a Council resolution 26 fixing franchise fees and adopting rules for service and rate 27 regulation. 28 (cl No acceptance of any payment shall be construed as -9- 2 3 4 5 6 7 8 9 10 I] 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable under this ordin- ance or for the performance of any other obligation hereunder. SECTION 5. Franchise term: duration and termination. (a) The franchise granted by the Council under this ordinance shall be for a term of fifteen (15) years from the date of its acceptance by the Grantee. During the fourteenth year of the franchise, the Grantee may apply to the Council for a renewal of the franchise. Permission to renew for additional terms of ten (10) years shall not be unreasonably withheld if the Grantee has substantially complied with the terms and conditions of the existing franchise. (b) The City may terminate any franchise in the event of the willful failure, refusal or neglect by Grantee to do or comply with any material requirement or limitation contained in this ordinance or a franchise, or any material rule or regulation of the Councilor chief administrative officer validly adopted pursuant to this ordinance or a franchise. (c) The chief administrative officer may make written demand that the Grantee do or comply with any such requirement, limitation, term, condition, rule or regulation. If the failure, refusal or neglect of the grantee continues for a period of thirty (30) days following such written demand, the chief administrative officer may place his request for termination of the franchise upon the next regular Council meeting agenda. The chief adminis- trative officer shall cause to be served upon such Grantee, at least ten (10) days prior to the date of such Council meeting, a written notice of his intent to request such termination, and the -10- 1 time and place of the meeting, notice of which shall be published 2 by the City Clerk at least once ten (10) days before such meeting 3 in a newspaper of general circulation within the City. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 ]9 20 21 22 23 24 25 26 27 28 29 30 (d) The Council shall consider the request of the chief administrative officer and shall hear any persons interested h . . .. . . I t ere~n, and shall determ~ne, ~n ~ts d~scret~on, whether or not I any failure, refusal or neglect by the Grantee was with just cause~ I (e) If such failure, refusal or neglect by the Grantee was I I with just cause, the Council shall direct the Grantee to comply I within such time and manner and upon such terms and conditions as are reasonable. (f) If the Council shall determine such failure, refusal or neglect by the Grantee was without just cause, then the Council may, by resolution, declare that the franchise of such Grantee shall be terminated and forfeited unless there be compliance by the Grantee within such period as the Council may fix. (q) The termination and forfeiture of any franchise shall I I in no way affect any of the rights of the City under the franchise i I or any provision of law. I 'I (h) In the event of any holding over after expiration of , any franchise, without the prior consent of the City, expressed by I resolution, the Grantee shall pay to the City as liquidated and I I agreed damages a sum of not less than fifty percent (50%) of its I gross revenue during said period because the actual damages to the public and the City are uncertain and would be impractical or ex- tremely difficult to determine. SECTION 6. ~plications for franchise. (a) Each application for a franchise to construct, operate, or maintain any cable television systems in this City I shall be filed with the City Clerk and shall contain or be -11- accompanied by the following: 2 (1) the name, address, and telephone number of the 3 applicant; 4 (2) a detailed statement of the corporate or other 5 business entity organization of the applicant, including but not 6 limited to, the following and to whatever extent required by the 7 City: 8 (i) the names, residence and business addresses 9 of all officers, directors, and associates of the applicant. 10 (ii) the names, residence and business addresses I of all officers, persons and entities having, controlling, or be- I II 12 ing entitled to have or control of 5% or more of the ownership of 13 the applicant and the respective ownership share of each such 14 person or entity. 15 (iii) the names and addresses of any parent or 16 subsidiary of the applicant, namely, any other business entity 17 owning or controlling applicant in whole or in part or owned or 18 controlled in whole or in part by the applicant, and a statement 19 describing the nature of any such parent or subsidiary business 20 entity, including but not limited to cable television systems 21 owned or controlled by the applicant, its parent and subsidiary 22 and the areas served thereby. 23 (iv) a detailed description of all previous 24 experience of the applicant in providing cable television system 25 service and in related or similar fields. 27 (v) a detailed and complete financial statement IOf the applicant, prepared by a certified public accountant, for the fiscal year next preceding the date of the application here- 26 28 -12- 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 under, or a letter or other acceptable evidence in writing from a recognized lending institution or funding source, addressed to both the applicant and the Council, setting forth the basis for a I study performed by such lending institution or funding source, and I I a clear statement of its intent as a lending institution or fundin1 source to provide whatever capital shall be required by the applicant to construct and operate the proposed system in the City 11 or a statement from a certified public accountant, certifying that I I I I ! the applicant has available sufficient free, net and uncommitted cash resources to construct and operate the proposed system in this City. (vi) a statement identifying, by place and date, any other cable television franchise(s) awarded to the applicant, its parent or subsidiary; 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 ISubsidiary's resources committed to the completion thereof. (b) A detailed description of the proposed plan of opera- tion of the applicant which shall include, but not be limited to, the following: (1) a detailed map indicating all areas proposed to 22 be served, and a proposed time schedule for the installation of 23 all equipment necessary to become operational throughout the entir 24 area to be served. 25 (2) a statement or schedule setting forth all pro- 26 posed classifications of rates and charges to be made against sub- 27 scribers and all rates and charges as to each of said classifica- 28 tions, including installation charges and service charges. -13- 1 , 2 Ii 3 I I' 4 I !; 5 I 6 Ii 7 I' 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 23 (3) a detailed, informative, and referenced statement describing the actual equipment and operational standards proposed! I by the applicant and that such standards of operations are in com-f ! pliance with those contained in Title 47, Subpart K (Section 76.60f' et seq.), of the Rules and Regulations of the Federal Communica- tions Commission, or its successor or similar provisions. (4) a copy of the form of any agreement, undertaking, i into between the appli-! or other instrument propOsed to be entered cant and any subscriber. (5) a detailed statement setting forth in its entirety I I , I I I i , any and all agreements and undertakings, whether formal or in- formal, written, oral, or implied, existing or proposed to exist between the applicant and any person, firm, or corporation which 'I' materially relate or pertain to or depend upon the application and I the granting of the franchise. I (c) A copy of any agreement covering the franchise area, if existing between the applicant and any pUblic utility subject to regulation by the California pUblic Utilities Commission pro- viding for the use of any facilities of the public utility, in- cluding but not limited to poles, lines, or conduits. (d) Any other details, statements, information or refer- ences pertinent to the subject matter of such application which , I shall be required or requested by the Council, or by any provisionl of any other ordinance of the City (and of its Charter) . (e) An application fee in the sum of two thousand dollars ($2,000) , 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 -14- 1 which shall be in consideration thereof and not returnable or 2 refundable in whole or in part, except to the extent that such 3 fee exceeds the actual costs incurred by the City in studying, 4 investigating and otherwise processing the application; provided, 5 that any applicant who shall deliver to the City Clerk a written 6 withdrawal of or cancellation of any application hereunder, not 7 later than the seventh (7th) day next following the day such 8 application is received by the City Clerk, shall be entitled to 9 have returned and refunded the sum of fifteen hundred dollars I , 10 ($1500), less any actual costs or expenses incurred by the City byl II reason of such application. 12 (f) The Council may, by advertisement or any other means, 13 solicit and call for applications for cable television system 14 franchises, and may determine and fix any date upon or after 15 which the same shall be received by the City, or the date before 16 which the same must be received, or the date after which the same 17 shall not be received, and may make any other determinations and 18 specify any other times, terms, conditions, or limitations re- 19 specting the soliciting, calling for, making and receiving of such 20 applications. "21 ~e Grantee shall pay to the City a sum of money sufficient 22 to reimburse it for all publication expenses incurred by it in 23 connection with the granting of a franchise pursuant to the pro- 24 visions of this ordinance. Such payment shall be made within 25 thirty (30) days after the City furnishes the Grantee with a 26 written statement of such expenses. 27 (g) Upon receipt of any application for franchise, the 28 Council shall refer the same to the chief administrative officer -15- 1 I I i i 'who I shall prepare a report and make his 2 such application, and cause the same to be completed and filed 3 with the Council within thirty (30) days. 4 (h) In making any determination hereunder as to any appli-l I cation the Council may give due consideration to the quality of tht . i service proposed, rates to subscriber, income to the City, experi-I I ence, character, background, and financial responsibility of any I I applicant, and its management and owners, technical and performanc~ quality of equipment, willingness and ability to meet construction I i and physical requirements, and to abide by policy conditions, I franchise limitations and requirements, and any other considera- I I tions deemed pertinent by the Council for safeguarding the interes s 5 6 7 8 9 10 11 12 13 of the City and the public. The Council, in its discretion, shall 14 determine the award of any franchise on the basis of such con- 15 sideration and without competitive bidding. 16 If the Council shall determine to reject such application, 17 such determination shall be final and conclusive, and the same 18 shall be deemed rejected. 19 (i) If the Council shall determine to further consider the 20 application, the following shall be done: 21 (1) the Council shall decide and specify the terms 22 and conditions of any franchise to be granted hereunder and as 23 herein provided; 24 (2) the Council shall pass its resolution of intentio 25 to consider the granting of such a franchise, giving notice of 26 receipt of the application, and describing the character of the 27 franchise desired, stating the name of the proposed Grantee, the 28 character of the franchise, the terms and conditions upon which -16- such franchise is proposed to be granted, that copies of the pro- 2 posed franchise may be obtained at the office of the City Clerk, 3 fixing and setting forth a day, hour, and place certain when and 4 where any persons having any interest therein or objection to the 5 granting thereof may file written protests and appear before the 6 Council and be heard, and directing the City Clerk to publish said 7 resolution at least once within ten (10) days of the passage 8 thereof in a newspaper in general circulation within the City. 9 (j) At the time set for the hearing, or at any adjournment 10 thereof, the Council shall proceed to hear all written protests. II Thereafter, the Council shall make one of the following determina- 12 tions: 13 (1) that such franchise be denied; or 14 (2) that such franchise be granted upon the terms and 15 I conditions as specified in the resolution of intention to grant ! the same; or I 16 17 (3) that such franchise be granted, but upon the 18 terms and conditions different from those specified in the 19 resolution of intention to grant the same. 20 (k) If the Council shall determine that a franchise be 21 denied such determination shall be expressed by resolution and 22 shall be final and conclusive. 23 If the Council shall determine that a franchise be granted 24 upon the terms and conditions as specified in the resolution of 25 intention to consider granting the same, such determination shall 26 Ibe expressed by ordinance granting a franchise to the applicant. If the Council shall determine upon granting a franchise 27 28 upon terms and conditions different from those specified in the -17- 20 21 22 23 24 25 26 27 23 1 resolution of intention to consider granting the same, then such 2 determination shall be expressed by resolution adopted prior to 3 granting a franchise by ordinance. 4 SECTION 7. De osits; bonds; indemnifications; insurance. 5 (a) Performance deposit to City. The Grantee shall, con- 6 currently with the filing of an acceptance of award of the fran- 7 chise granted under this ordinance, deposit in a financial insti- itution selected by the City the sum of $40,000.00 in a joint account with the Grantee and the City as cosignators; or a sum of 115% of anticipated construction costs or $2500.00, whichever is [greater, for Grantees applying for a franchise to service 400 or Iless Subscribers. The amount of the required deposit shall be ladjusted each year after 1980, in accordance with Changes in the 8 9 10 11 12 13 14 Producer Price Index, or its Successor, published by the United 15 IStates. This sum shall be maintained in an interest-bearing joint 16 I' /account during the period of construction of the cable television r!system within the City limits, but in no event in excess of two (2) ( "years. [, f' i:be conditioned upon the faithful performance of the Grantee, and II I (upon the further condition that in the event Grantee shall fail I!otro comply with anyone or more of the provisions of this ordinance of the franchise issued to the Grantee hereunder, there shall i I I I i I i I , I [ I 17 18 19 I [be recoverable from this sum any damages or loss suffered by the I ICity as a result thereof, including the full amount of any compen- rsation, indemnification, or cost of removal or abandonment of any l'lproperty of the Grantee as prescribed herein [default, plus a reasonable allowance for the I' Ilcosts, up to the full amount of the account. I I I I I I which may be in attorney's fees and The Mayor and Common -18- I I 1 ICouncil may waive or decrease the amounts of deposits for renewal 2 of franchises for good cause. 3 (b) Performance bond for subscribers. Upon being granted 4 !a franchise, and upon filing of the acceptance required under , . ,Sect1on 8 hereof, the Grantee shall file, annually, with the City IClerk and shall thereafter during the entire term of such fran- 5 6 7 chise maintain in full force and effect a corporate 8 9 II I I I I I I I I I I I 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -19- surety bond, or other adequate surety agreement, in the amount as 2 shall have been approved by the Council. The bond or agreement 3 I shall be so conditioned that in the event such Grantee shall fail , , I to comply with anyone or more of the provisions of any agreement I lor undertaking made between Grantee and any subscriber, then there i ! shall be recoverable jointly and severally from the principal i I, and surety any damages or costs suffered or incurred by any sub- I'scriber as a result thereof, including reasonable attorneys' fees I and costs of any action or proceeding. Said condition shall be a I continuing obligation during the entire term of such franchise land thereafter until Grantee shall have satisfied in full any and all obligations to any subscriber which arise out of or pertain to 4 S 6 7 8 9 10 II 12 13 any such agreement or undertaking. 14 (c) Hold Harmless Agreement. Grantee shall indemnify IS and hold harmless the City, its officers, boards, commissions, 16 agents, and employees, against and from any and all claims, 17 demands, causes of actions, actions, suits, proceedings, damages 18 (including but not limited to damages to City property and 19 damages arising out of copyright infringements, and damages 20 arising out of any failure by Grantee to secure consents from 21 the owners, authorized distributors or licensees of programs to 22 be delivered by Grantee's cable television system), costs or 23 liabilities (including costs or liabilities of the City with 24 respect to its employees), of every kind and nature whatsoever, 25 including but not limited to damages for injury or death or damage 26 to person or property, and regardless of the merit of any of the 27 same, and against all liability to others, and against any loss, 28 cost, and expense resulting or arising out of any of the same, -20- Ii II i' , ! including any attorney fees, accountant fees, expert witness or , 2 consultant fees, court costs, per diem expense, traveling and 3 I transportation expense, or other I I lor pertaining to the exercise or I Grantee, or the granting thereof I ! costs or expenses arising out i of i byl I I 4 the enjoyment of any franchise 5 by the City. 6 I I I I I and (d) Defense of Litigation. Grantee shall at the sole risk I I City Attorney, appear in and defend any and all suits, II other legal proceedings, whether judicial, quasi- ! I I or duly constituted authorities1 officers, boards, commissions, 7 expense of Grantee, upon demand of the City, made by and 8 i ! through the I actions, or , i i judicial, administrative, legislative, or otherwise, brought or , II instituted I' . I agalnst or i ,agents, or employees, and arising out of or pertaining to the 9 10 II or had by third persons 12 affecting the City, its 13 14 exercise or the enjoyment of such franchise or the granting 15 thereof by the City. 16 Grantee shall pay and satisfy and shall cause to be paid 17 and satisfied any judgment, decree, order, directive, or demand 18 rendered, made or issued against Grantee, the City, its officers, 19 boards, commissions, agents, or employees in any of these premises 20 and such indemnity shall exist and continue without reference to 21 or limitation by the amount of any bond, policy of insurance, 22 deposit, undertaking or other assurance required hereunder, or 23 otherwise; provided, that neither Grantee nor City shall make or 24 enter into any compromise or settlement of any claim, demand, cause of action, action, suit, or other proceeding, without first 25 26 obtaining the written consent of the other. (e) Insurance Required. Upon being granted a franchise, 27 28 and upon the filing of the acceptance required under section 8 -21- 2 ii II " !I :1 hereof , the Grantee shall file with the City Clerk and shall i thereafter during the entire term of such franchise maintain in ! full force and effect at its own cost and expense each of the ;1 I ~following policies of insurance: !: " iI (1) General Comprehensive Liability Insurance in the !, " II amount of $ , together with Bodily Injury Liability :1 3 4 5 6 7 Ii Insurance in an amount not less than $ II " II including accidental death, to anyone person, and subject to the " II same limit for each person in an amount not less than $ lion account of anyone occurrence, and Property Damage Liability Ii !i Insurance in an amount not less than $ ii ,! !i from anyone occurrence; provided, however, as follows: " Ii , I for injuries 8 9 10 11 resulting 12 13 (i) the City shall be named as an additional 14 insured in any of said insurance policies; and 15 II (iil where such insurance is provided by a i ] policy which also covers Grantee or any other entity or person, it I shall contain the standard cross-liability endorsement. 16 17 18 SECTION 8. Acceptance of the Franchise. (a) No franchise granted under this ordinance shall be- 19 20 come effective for any purpose unless and until written acceptance 21 thereof shall have been filed with the City Clerk. written accep- 22 tance, which shall be in the form and substance approved by the 23 City Attorney, shall also be and operate as an acceptance of each 24 and every term and condition and limitation contained in this 25 ordinance, or in such franchise, or otherwise specified as herein 26 provided. I I I not later than 12:01 o'clock P.M. of the fortieth (40th) day next 27 (b) The written acceptance shall be filed by the Grantee 28 -22- following the effective date of the ordinance granting such 2 franchise. 3 (c) In default of the filing of such written acceptance as 4 herein required, the Grantee shall be deemed to have rejected and 5 repudiated the franchise. Thereafter, the acceptance of the 6 Grantee shall not be received nor filed by the City Clerk. The 1 , Grantee shall have no rights, remedies, or redress in the premises 8 unless and until the Council, by resolution, shall determine that 9 such acceptance be received or filed, and then upon such terms 10 and conditions as the Council may impose. I] (d) In any case, and in any instance, all rights, remedies 12 and redress in these premises which mayor shall be available to 13 the City, shall at all times be available to the City, and shall 14 be preserved and maintained and shall continuously exist in and to 15 the City, and shall not be in any manner or means modified, 16 abridged, altered, restricted, or impaired by reason of any of 17 these premises, or otherwise. 18 (e) Any franchise granted and accepted under this ordin- 19 ance shall be in lieu of any and all other rights, privileges, 20 powers, immunities, and authorities owned, possessed, controlled, or exercisable by the Grantee, of or pertaining to the constructioJ, operation, or maintenance of any cable television systems in the I 2] 22 23 City. 24 SECTION 9. Limitations of franchise. 25 (a) Every franchise granted under this ordinance shall be 26 non-exclusive. 27 (b) No privilege or exemption shall be granted or conferre 28 by any franchise granted under this ordinance except those -23- 2 specifically prescribed herein. I I (c) Any privilege claimed under any such franchise by the !Grantee in any street or other public property shall be subordinat 3 4 to any prior lawful occupancy to the streets or other public Iproperty. (d) Any such franchise shall be a privilege to be held in 5 6 7 personal trust by the original Grantee. It cannot in any event be 8 sold, transferred, leased, assigned or disposed of, in whole or 9 in part, either by forced or involuntary sale, or by voluntary 10 ,sale, merger, consolidation or otherwise, without prior consent of Ithe Council expressed by resolution, and then only under such con- I ditions as may therein be prescribed. Any such transfer or II 12 13 assignment shall be made only by an instrument in writing, such 14 as a bill of sale, or similar document, a duly executed copy of 15 which shall be filed in the office of the City Clerk within thirty 16 (30) days after any such transfer or assignment. The said consent of the Council may not be unreasonably refused; provided, however, 17 18 the proposed assignee must show financial responsibility as deter- 19 mined by the Council and must agree to comply with all provisions 20 of this ordinance; and provided, further, that no such consent 21 shall be required for a transfer in trust, mortgage, or other 22 hypothecation, in whole or in part, to secure an indebtedness, 23 except that when such hypothecation shall exceed 50% of the market 24 value of the property used by the franchisee in the conduct of the 25 cable television system, prior consent of the Council shall be 26 required for such a transfer. Such consent shall not be withheld , I unreasonably. I I In the event that Grantee is a corporation, prior approval 27 28 -24- I' 2 i I Ilof the City Council, expressed by ordinance, shall be required I i where there is an actual change in control or where ownership of I II more than 50% of the voting stock of Grantee is acquired by a II person or group of persons acting in concert, none of whom already I own 50% or more of the voting stock, singly or collectively. Any : such acquisition occurring without prior approval of the City Council shall constitute a failure to comply with a provision of 3 4 5 6 7 8 this ordinance within the meaning of Section 5 of this ordinance. 9 (e) Time shall be of the essence of any such franchise 10 granted hereunder. The Grantee shall not be relieved of his II obligation to comply promptly with any of the provisions of this 12 ordinance by any failure 13 (f) Any right or power in, or duty impressed upon, any 14 officer, employee, department, or board of the City shall be sub- 15 ject to transfer by the City to any other officer, employee, 16 department, or board of the City. 17 (g) The Grantee shall have no recourse whatsoever against I 18 the City for any loss, cost, expense, or damage arising out of any 19 provision or requirement of this ordinance or of any franchise 20 issued hereunder or because of its enforcement. 21 (h) The Grantee shall be subject to all requirements of 22 City laws, rules, regulations, and specifications heretofore or 23 hereafter enacted or established. 24 (i) Any such franchise granted shall not relieve the 25 Grantee of any obligations involved in obtaining pole or conduit 26 space from any department of the City, utility company, or from 27 others maintaining utilities in streets. 28 (j) Any franchise granted hereunder, shall be in lieu of -25- any and all other rights, privileges, powers, immunities, and 2 i I exercisable by Grante~, lauthorities owned, possessed, controlled, or lor any successor to any interest of Grantee, of or I the construction, operation, or maintenance of any pertaining to I ~able televisio~ i I I I 3 4 5 system in the City; and the acceptance of any franchise hereunder 6 shall operate, as between Grantee and the City, as an abandonment 7 of any and all of such rights, privileges, powers, immunities, and 8 I I mainten- I I authorities within the City, to the effect that, as between 9 Grantee and the City, and all construction, operation and 10 lance by any Grantee of any cable television system in the City jshall be, and shall be deemed and construed in all instances and I respects to be, under and pursuant to said franchise, and not 11 12 13 hereunder or pursuant to any other right, privilege, power, 14 immunity, or authority whatsoever. 15 SECTION 10. Rights_reserved to the City. 16 The City reserves the power to adopt and enforce require- 17 ments and regulations after a public hearing on any or all of the 18 fallowing matters, if and when deemed necessary and proper in the 19 public interest in the discretion of the City Council and is consi 20 tent with Rules and Regulations of the Federal Communications~s (a) Procedures for the periodic fixing of reasonable rate 21 22 and service charges to be charged to subscribers by Grantee, and 23 provisions for the enforcement thereof. (bl Operational standards pertaining to the quality of 24 25 audio-visual reception by subscribers. (cl Channel capacity requirements. 26 27 (d) Requirements for carriage of specified television 28 signals, radio signals, and supplementary signal carriage services. -26- (e) Requirements for the provision of equipment and channe s 2 for local production and presentation of cablecast programs, and 3 regulations pertaining thereto. 4 (f) Requirements and regulations pertaining to minimum 5 service requirements and fair business practices by the Grantee. 6 (g) Public safety requirements pertaining to the installa- 7 tion and use of all CATV equipment. 8 (h) Procedures for the investigation and resolution of all 9 complaints by subscribers regarding Grantee's CATV operations, 10 including implementation thereof by designated City officers, 11 employees, or agents. 12 (i) There is hereby reserved to the City every right and 13 power which is required to be herein reserved or provided by any 14 law and the Grantee, by its acceptance of the franchise, agrees to 15 be bound thereby and to comply with any action or requirements of I the City in its exercise of such rights or power, heretofore or 16 17 hereafter enacted or established. 18 (j) Nothing herein shall be deemed or construed to impair 19 or affect, in any way, to any extent, the right of the City to 20 acquire the property of the Grantee, either by purchase or through 21 the exercise of the right of eminent domain, at a fair and just 22 value, which shall not include any amount for the franchise it- 23 self or for any of the rights or privileges granted, and nothing 24 herein contained shall be construed to contract away or to modify 27 lor abridge, whether for a term or in perpetuity, the City's right IOf eminent domain. (k) Neither the granting of any franchise nor any pro- I I vision hereof shall constitute a waiver or bar to the exercise of 25 26 28 -27- any ~overnmental right or power of the City. 2 (1) The Council may do all thinqs which are necessary and 3 convenient in the exercise of its jurisdiction under this ordin- 4 ance and may determine any 0uestion of fact which may arise during 5 the existence of any franchise granted hereunder. The chief administrative officer, with the approval of the City Attorney, is 6 7 hereby authorized and empowered to adjust, settle, or compromise 8 any controversy or charge arising from the operations of any 9 Grantee under this ordinance, either on behalf of the City, the 10 Grantee, or any subscriber, in the best interest of the public. 11 Either the Grantee or any member of the public who may be dis- 12 satisfied with the decision of the chief administrative officer 13 may appeal the matter to the Council for hearing and determination 14 The Council may accept, reject or modify the decision of the chief 15 administrative officer, and the Council may adjust, settle or 16 compromise any controversy or cancel any charge arising from the 17 operations of the Grantee or from any provision of this ordinance. 18 SECTION 11. Council to ad~t rules and regulations. (a) Standards of Operation 19 20 (1) Prior to receiving any applications for franchis s, 21 the Council may adopt, after a public hearing, rules, regulations nd 22 standards governing the operation of cable television systems in t e 23 City. Such rules, regulations and standards shall apply to and sh 11 24 govern the operations of the Grantee of any franchise hereunder, 25 and are expressly declared a part of any franchise hereunder. 26 (2) Rules, regulations and standards not adopted I prior to rece~v~ng any I adopted by the Council application for a franchise shall be at the first regular meeting of the Council 27 28 -28- . 2 i ! I !next following the I I IWhiCh shall become effective upon adoption and shall be applicable . fl. I effect~ve date 0 this ordinance, by reso ut~on 3 I, Illto any application for a franchise previously received. I (3) The standards adopted pursuant to these procedure I' I shall be exclusively in those areas not either expressly or , I I, impliedly preempted by the Federal Communications Commission at II I the time of adoption. , (4) Provided the same do not materially alter the I content of the franchise without consent of the Grantee, the I Council may at any time adopt new rules or regulations or standard, I lor may amend, modify, delete, or otherwise change its respective i II rules or regulations or standards previously adopted, in the 4 5 6 7 8 9 10 II 12 13 following manner: The Council shall pass its resolution of 14 intention stating or describing the rules or regulations or stand- 15 ards to be adopted, amended, modified, deleted, or otherwise 16 changed, and fixing and setting forth a day, hour, and place 17 certain when and where any persons having any interest therein or 18 objection thereto may appear before the Council and be heard. 19 Such resolution shall direct the City Clerk to pUblish the same 20 at least once within ten (10) days of the passage thereof in a 21 newspaper of general circulation within the City, and to mail a 22 copy of the same to any Grantee or applicant for a franchise, not 23 more than thirty (30) days nor less than fifteen (15) days prior 24 to the time fixed for hearing thereon. 25 At the time set for such hearing, or at any adjournment 26 I thereof, the Council shall proceed to hear and pass upon such I comments as may be presented. Thereafter the Council, by its I resolution, may adopt, amend, modify, delete, or otherwise change 27 28 -29- 2 3 its respective rules, regulations and standards. Such determina- tion by the Council shall be final and conclusive. Any rule or regulation or standard as adopted, amended, modified, deleted, or otherwise changed by the Council shall be- come effective upon the tenth (lOth) day following the adoption of such resolution, unless a longer period shall be otherwise pro- vided in such resolution. (b) Rates (1) Prior to granting any franchise hereunder the Council, by resolution, shall establish and fix all rates and charges for the Basic Service, herein defined, allowable to Grantee, such as: 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (i) charges for installation; (ii) subscriber rates; except the rates for pay television; (iii) service charges for separate classifica- tions of service (e.g., additional connections, etc.) Once established, such rates or charges shall not be changed at any time after granting of a franchise, except after due notice and hearing as provided herein. (2) Rates and charges for services, other than the Basic Service, shall also be approved by the Council by resolution after due notice and hearing as provided. (3) In connection with any proposed change of any rates or charges of Grantee to subscribers initiated by Grantee, or the approval of rates for additional services, at any time after the granting of a franchise, the City Council may direct the chief administrative officer of the City to conduct a preliminary -30- 1 investigation, in the form he deems suitable, in~o the matter. 2 The Chief Administrative Officer shall prepare and file with the 3 Council a written report of the investigation, his findings, and I 4 an opinion containing his recommendations and the reasons therefor~ I 5 Upon receipt of the report the City Council may determine to hold I I 6 a public hearing on the application and shall pass a resolution I 7 of intention to hold such a hearing, describing and stating any 8 rates or charges to be charged, the reasons of the Council 9 therefor, fixing and setting forth a day, hour, and place certain 10 when and where any persons having any interest therein may appear 11 before the Council and be heard. Such resolution shall direct 12 the City Clerk to publish the same resolution at least once 13 within ten (10) days of the passage thereof in a newspaper of 14 general circulation within the City. The City Clerk also shall )< cause a copy of such resolution to be mailed to the Grantee at 16 least ten (10) days prior to the date specified for hearing thereon. 1;) ~ \; At the time set for any further hearing, or at any adjourn- 1" j'.J ment thereof, the Council shall proceed to hear the matter. 20 At the conclusion of the public hearing, if the Council 21 determines to do so, the Council shall find that the changing of ~, L.'.J i i I , the system operator, the subscribers and users, and the City, then I the Council, by resolution, shall authorize the change of rates I or charges of Grantee to subscribers and users as determined. I I I , , I i Such resolution shall thereupon become and shall be a part of any 22 any rates or charges of Grantee to subscribers will be fair to 23 24 25 ~:) franchise granted hereunder and affected thereby. 2:; (4) Neither the Council nor the Grantee shall, as -31- to rates, charges, service, service facilities, rules, regulations 2 or in any other respect, make or grant any preference or advan- 3 tage to any person nor subject any person to prejudice or dis- 4 advantage. 5 SECTION 12. Permits and construction. 6 (a) within thirty (30) days after acceptance of any 7 franchise, the Grantee shall proceed with due diligence to obtain 8 all necessary permits and authorizations which are required in 9 the conduct of its business including, but not limited to, any 10 utility joint use attachment agreements, microwave carrier licenser , II and any other permits, licenses and authorizations to be granted 12 by duly constituted regulatory agencies having jurisdiction over 13 the operation of the cable television systems, or associated 14 microwave transmission facilities. 15 In connection therewith, copies of all petitions, applica- 16 tions and communications submitted by the Grantee to the Federal 17 Communications Commission, Securities and Exchange Commission, or 18 any other federal or state regulatory commission or agency having 19 jurisdiction in respect to any matters affecting Grantee's cable 20 television operations, shall also be submitted simultaneously to 21 the chief administrative officer. 22 (b) within ninety (90) days after obtaining all necessary 23 permits, licenses and authorizations, including right of access 24 to poles and conduits, Grantee shall commence construction and 25 installation of the cable television system. 27 I (c) Within one hundred eighty (180) days after the commenc - Iment of construction and installation of the system, Grantee . shall proceed to render service to subscribers, and the completion 26 28 -32- 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 of the installation and construction shall be pursued with reasonable diligence thereafter, so that service to all of the areas designated and scheduled on the map and plan of construction made part of the franchise shall be provided as set forth therein. I (d) 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 whether on public property or on privately- owned property unless and until first securing the written approva of the chief administrative officer. Whenever Grantee shall not utilize existing poles, con- duits and other facilities, or whenever existing conduits and other facilities shall be located beneath the surface of the streets, or whenever the City shall undertake a program designed to cause all conduits and other facilities to be located beneath the surface of the streets in any area or throughout the City, in the exercise of its police power or pursuant to the terms hereof, upon reasonable notice to Grantee, any such conduits or other facilities of Grantee shall be constructed, installed, placed or replaced beneath the surface of the streets. Any con- struction, installation, placement, replacement, or changes which may be so required shall be made at the expense of Grantee, whose costs shall be determined as in the case of public utilities. (e) The City 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 similar facilities erected, controlled, or maintained exclusively by or for Grantee in any street, provided such use by City does 3 4 -33- 2 II ! ! not interfere with the use by Grantee. (f) In those areas of the City where the transmission 3 lor distribution facilities of the respective public utilities I 4 Iproviding telephone, communication and electric services are 5 lunderground or hereafter are placed underground, the Grantee 6 Ilikewise shall construct, operate and maintain all of his trans- 7 mission and distribution facilities underground. The term 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 "underground" shall include a partial underground system; pro- I vided , that upon obtaining the written approval of the chief I ladministrative officer, amplifiers in the Grantee's transmission land distribution lines may be placed in aopropriate housings upon Ithe surface of the ground. I (g) The Grantee at his expense shall protect, support, temporarily disconnect, relocate, or remove any property of Grantee when, in the opinion of the chief administrative officer the same is required by reason of traffic conditions, public safety, street vacation, freeway or street construction, change or establishment of street grade, installation of sewers, drains, waterpipes, power line, signal line, transportation facilities, tracks, or any other types of structure or improvements or governmental agencies whether acting in a governmental or a pro- prietary capacity, or any other structure or public improvement, including but not limited to movement of buildings, urban renewal and redevelopment, and any general program under which the City shall undertake to cause all such properties to be located 26 beneath the surface of the ground. The Grantee shall in all 27 cases have the privilege, subject to the corresponding obliga- 28 tions, to abandon any property of Grantee in place, as herein -34- 1 provided. Nothing hereunder shall be deemed a taking of the 2 property of Grantee, and Grantee shall be entitled to no surcharge 3 by reason of anything hereunder. I 4 (h) Upon the failure, refusal, or negelect of Grantee to 5 cause any work or other act required by law or hereunder to be I properly completed in, on, over, or under any street within any I I time prescribed therefor, or upon notice given, where no time is i prescribed, the chief administrative officer may cause such work I or other act to be completed in whole or in part, and upon so doin~ shall submit to Grantee an itemized statement of the costs i thereof. The Grantee shall, within thirty (30) days after receipt I I of such statement, pay to the City the entire amount thereof. 6 7 8 9 10 11 12 13 (i) In the event that, 14 (1) the use of any part of the system of Grantee 15 is discontinued for any reason for a continuous period of thirty 16 (30) days, without prior written notice to and approval by the 17 City; or 18 (2) any part of such system has been installed in 19 any street or other area without complying with the requirements 20 hereof; or 21 (3) any franchise shall be terminated, cancelled, 22 or shall expire, then the Grantee shall, at the option of the 23 City, and at the expense of Grantee and at no expense to the 24 City, and upon demand of the City, promptly remove from any 25 streets or other area all property of Grantee, and Grantee shall 26 promptly restore the street or other area from which such property 27 has been removed to such condition as the chief administrative 28 officer shall approve. -35- 1 I I I I i I The Council W4Y, upon written application therefor by I Grantee, approve the abandonment of any of such property in place I I 2 3 by Grantee and under such terms and conditions as the Council may 4 prescribe. Upon abandonment of any such property in place, Grante~ 5 6 II shall cause to be executed, acknowledged, and delivered to the Cit I such instruments as the City Attorney shall prescribe and approve, I transferring and conveying the ownership of such property to the I I 7 8 City. 9 SECTION 13. Technical Standards. 10 (a) The performance of Grantee's cable television system 11 shall meet the technical standards as set forth in Section 76.605 12 or any successor section of the Federal Communication Commissions 13 and Rules, as those standards may exist from time to time. (b) Grantee shall conduct performance tests which may be 14 15 " observed by the City in accordance with the requirements of Section 1, I II 1,76.601 or any successor section of the Federal Communication Com- I I imission's Rules, as these requirements may apply or be extended !: I I, from time to time. iI i Ii SECTION 14. Miscellaneous Provisions. i 'I' (a) A franchise granted to provide service within the Cityj Lhall authorize and permit the Grantee to solicit, sell, distribut, I' and make a charge to subscribers wi thin the City for connection to! ,the cable television system of Grantee, and shall also authorize I I iand permit the Grantee to traverse any portion of the City in ordeJ I I !to provide service outside the City. ! I i (b) A franchise, easement, license or other permit granted Ito anyone other than the Grantee to traverse any portion of the 16 17 18 19 20 21 22 23 24 25 26 27 I ICity in order to provide service outside the City shall not !authorize nor permit said person to solicit, sell, distribute, I I I i 28 29 -36- 1 or make any charge to subscribers within the City nor to render 2 any service or connect any subscriber within the City to the 3 cable television service system of Grantee. 4 (c) No franchise granted under this ordinance shall ever 5 be given any value by any court or other authority, public or 6 private, in any proceeding of any nature or character, wherein 7 or whereby the City shall be a party or affected therein or 8 thereby. 9 (d) Grantee shall be subject to all provisions of the 10 I t i other ordinances, rules, regulations, and specifications of the I City heretofore or hereafter adopted, including but not limited 11 12 to those pertaining to works and activities in, on, over, under 13 and about streets. 14 Any privilege claimed under any franchise granted in any 15 street or other public property shall be subordinate to any prior 16 lawful occupancy of the streets or other public property. \1 Grantee also shall be subject to the provisions of general 18 laws of the State of California, or as hereafter amended, when 19 applicable to the exercise of any privilege contained in any 20 franchise, including but not limited to those pertaining to works 21 and activities in and about State highways. 22 (e) Grantee shall be prohibited from directly or indirectl 23 doing any of the following: 24 (1) engaging in the business of selling at retail, 25 leasing, renting, repairing or servicing of television sets or 26 radio s; 27 (2) imposing a fee or charge for any service or 28 repair to subscriber-owned receiving devices except for the -37- 2 3 4 5 6 7 8 9 \0 I] 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 connection of its service or for the determination by Grantee of the quality of its signal to the recipients thereof; (3) soliciting, referring, or causing or permitting the solicitation or referral of any subscriber to persons engaged in any business herein prohibited to be engaged in by Grantee; (4) providing information concerning the viewing patterns of identifiable individual subscribers to any person, group or organization for any purpose. (f) If the Federal Communications Commission or the Public Utilities Commission of the state of California or any other federal or state body or agency shall now or hereafter exercise any paramount jurisdiction over the sUbject matter of any franchise, then to the extent such jurisdiction shall preempt or preclude the exercise of like jurisdiction by the City the jurisdiction of the City shall cease and no longer exist. (g) When not otherwise prescribed herein, all matters herein required to be filed with the City shall be filed with the City Clerk. (h) 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 charge. (i) Before providing cable television service to any subscriber, the Grantee shall provide a written notice to the subscriber substantially as follows: "Subscriber is hereby notified that in providing cable television service the Grantee is making -38- II !I i , 1 II 2 3 i I , 4 5 6 7 8 9 10 11 12 \3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 use of public rights-of-way within the City of San Bernardino and that the continued use of such rights-of-way is in no way guaranteed. In the event the continued use of such rights- of-way is denied to Grantee for any reason, Grantee will make every reasonable effort to provide service over alternate routes. By accepting cable television service, subscriber agrees he will make no claim nor undertake any action against the City of San Bernardino, its officer, or its employees if the service to be provided hereunder is interrupted or discontinued." (j) The form of the Grantee's contract with the subscriber shall also be subject to approval of the City. SECTION 15. Equal opportunity employment and affirmative action plan. In the carrying out of the construction, maintenance and operation of the cable television system, the Grantee shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, or national origin. The Grantee shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selection of -39- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 training, including apprenticeship. The Grantee shall post in conspicuous pleaces, available to employees and applicants for employment, notices setting forth the provisions of this non-discrimination clause. The Grantee shall, in all solicitations, or advertisements for employees placed by or on behalf of the Grantee, state that all qualified applicants shall receive consideration for employ- ment without regard to race, creed, color, sex, or national origin. The Grantee shall incorporate the foregoing requirements in all of its contracts for work relative to construction, main- tenance and operation of the cable television system, other than contracts for standard commercial supplies or raw materials, and shall require all of its contractors for such work to incor- porate such requirements in all subcontracts for such work. SECTION 16. Violations. (al From and after the effective date of this ordinance, it shall be unlawful for any person to construct, install or maintain within any public street in the City, or within any othe public property of the City, or within any privately owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the City, any equipment or facilities for distributing any television signals or radio signals through a cable television system, unless a franchise authorizing such use of such street or property or area has first been obtained, and unless such franchise is in full force and effect. -40';' .----- II I I {b} It to make or use 4 part of a franchised cable television system within this City 5 for the purpose of enabling himself or others to receive or use 6 any television signal, radio signal, picture, program or sound, 7 without payment to the owner of said system. 8 {c} It shall be unlawful for any person, without the 9 consent of the owner, to wilfully tamper with, remove or injure 10 any cables, wires or equipment used for distribution of televisio IJ signals, radio signals, pictures, programs or sound. 12 SECTION 17. Penalty. 13 Any person violating any provision of this ordinance shall 14 be guilty of a misdemeanor, and upon conviction thereof shall be 15 punished by a fine not exceedina $500.00 or by imprisonment for J6 a period of not more than six (6) months, or by both such fine 17 and imprisonment. 18 The City Clerk and her authorized officers and personnel J9 and all police officers are authorized and empowered to arrest 20 and issue notices to appear for violations of the provisions of 21 this ordinance pursuant to section 836.5 and Chapter 5C and 5D 22 of Part 2 Title 3 (Section 853.6 et seq.) of the Penal Code of 23 the State of California . SECTION 18. Severability. 24 25 If any section, subsection, sentence, clause or phrase 26 of this ordinance is for any reason held illegal, invalid, or 27 unconstitutional by the decision of any court of competent juris- 28 diction, such decision shall not affect the validity of the -41- remaining portions hereof. The Council hereby declares that it 2 i I would have passed this ordinance and each section, subsection, I ! i sentence, clause, and phrase hereof, irrespective of the fact tha, anyone or more sections, subsections, sentences, clauses, or I I I phrases be declared illegal, invalid or unconstitutional. The in 3 4 5 6 validity of any portion of this ordinance shall not abate, reduce 7 or otherwise affect any consideration or other obligation require 8 of the Grantee of any franchise granted hereunder. 9 I HEREBY CERTIFY that the foregoing ordinance was duly 10 adopted by the Mayor and Common Council of the City of San 11 Bernardino at a,,,,) /}f~'Wu/ ft~ v --. :/ on the__JL,_day Of___IJ'-6I<l r ~~~~ f1tLd:~ ~n_~ .~&tf</ ~.u4-/' meeting thereof, held 12 , 1980, by the following 13 vote, to wit: 14 AYES: Councilmen c-. .fIt ' '-:/ "'7';"::1' fl-!,./ ,/-t" '''' (;?~,a~ , &u,Jdu . 15 16 NAYS: 17 ABSENT: 18 19 ~~~ ,/ City Clerk 20 The foregoing ordinance is hereby approved ~ ' 1980. day 21 of 22 23 24 25 Approved as to form: 26 ~~~ ..,~~; 27 28 -42-