Ordinance No. 571 - Cable Communications SystemsORDINANCE NO. 571
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AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF ROSEMEAD PROVIDING
FOR THE GRANTING OF FRANCHISES
FOR CABLE COMMUNICATIONS SYSTEMS
THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY
ORDAIN AS FOLLOWS:
Section 1. Sections 6700 through 6721 of the Rosemead
Municipal Code are hereby repealed. .
Section 2. A new Chapter 7 of Title 6 entitled "CABLE
COMMUNICATIONS FRANCHISES" is hereby added to said Code to
read as follows:
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"CHAPTER 7. CABLE COMMUNICATIONS FRANCHISES
6700 SHORT TITLE
This Chapter shall be known and may be cited as the
"City of Rosemead Cable Communications Franchise
Ordinance".
6701 DEFINITIONS
For the purposes of this Chapter, the following words,
terms, phrases, and their derivations shall have the
meanings given herein. When not inconsistent with the
context, words used in the present tense include the
future tense, words in the plural number include the
singular number, and words in the singular. number
include the plural number. The word 'shall" is always
mandatory and not merely directory.
(1) "City" means the City of Rosemead, Calfornia,
and all of the territory within its present
and future corporate boundaries.
(2) "City Council" means the Council of the City
of Rosemead, or such representative person or
entity as may be designated initially or at
some future date to act on cable communica-
tions matters.
(3) "FCC" means the Federal Communications
Commission, or a designated representaive.
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(4)
"Cable Communications System" or "System',
sometimes referred to as Cable TV Svstem",
"CATV System", or "Broadband Communications
Network", means a system o antennas, cables,
amp TETers, towers, microwave links, cable-
casting studios, and any other conductors,
converters, equipment or facilities, designed
and constructed for the primary purpose of
distributing video programming to home
subscribers, and the secondary purpose of
producing, receiving, amplifying, storing,
processing, or distributing audio, video,.
digital, or other forms of electronic or
electrical signals.
(5)
"Grantee" means the person or entity to which
a franchise henceforth is granted for the
construction, operation, maintenance, and
reconstruction of a Cable Communications
System, and the lawful successors, trans-
ferees, or assignees of said corporation or
entity.
(6)
"Grantor" means the City of Rosemead as
represented by the City Council acting within
the scope of its jurisdiction.
• (7)
"Subscriber" means any person, firm,
corporation, or other entity who or which
elects to subscribe to, for any purpose, a
service provided by the Grantee by means of or
in connection with the Cable Communications
System.
(8)
"Residential Subscriber" means a subscriber
who received a service in an individual
dwelling unit, where the service is not to be
utilized in connection with a business, trade,
or profession.
(9)
"Commercial Subscriber" means a subscriber who
receives a service in a place of business,
where the service may be utilized in
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connection with a business, trade, or
profession.
(10)
"Agency Subscriber" means a subscriber who
receives a service in a government or public
agency, school, or non-profit corporation.
(11)
"Programmer" means any person or entity who or
which produces or otherwise provides program
material or information for transmission by
video, audio, digital, or other signals,
either live or from recorded tapes or other
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storage media, to subscribers, by means of the
Cable Communications System.
(12)
"Channel" means a six (6) Megahertz (MHz)
frequency band, which is capable of carrying
either one standard video signal, a number of
audio, digital or other non-video signals, or
some combination of such signals.
(13)
"Local Ori ination Channel" means any channel
where the Grantee is the only designated
programmer and provides video programs to
subscribers.
(14)
"Community Access
"Public Access Channel"
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Channel or Community Channel' means any
channel where any member of the general public
or any non-commercial organization may be a
programmer, without charge, on a first-come,
first-service, non-discriminatory basis.
(15)
"Educational Channel" or "Educational Access
Channel means any channel where educational
institutions are the only designated
programmers.
• (16)
"Government Channel" or "Government Access
Channel means any channel where local
government agencies are the only designated
programmers.
(17)
"Leased Channel" or "Leased Access Channel"
means any channel available for lease and
programming by persons or entities other than
the Grantee, including those portions of the
other access channels not in_use by their
designated programmers.
(18)
"Open Channel" means any channel that can be
received by all subscribers, without the
necessity for special equipment.
(19)
"Private Channel" or "Closed-Circuit Channel"
means any channel which is available only to
subscribers who are provided with special
converter or terminal equipment to receive
signals on that channel.
(20)
"Converter" means an electronic device which
converts signal carriers from one form to
another.
(21)
"Broadcast Signal" means a television or radio
signal that is transmitted over the air to a
wide geographic audience and is received by a
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Cable Communications System off-the-air or by
microwave link.
(22)
"Non-Broadcast Signal" means a signal that is
transmitted by a Cable Communications System
and that is not involved in an over-the-air.
broadcast transmission path.
(23)
"Cablecast Signal" means a non-broadcast
signal that originates within the facilities
of the Cable Communications System.
(24)
"Basic Subscriber Television Service" means
the total o a o the o owing:
(A) the retransmission to all subscribers of
all broadcast television channel signals
authorized by the FCC and provided for in
franchise agreement;
(B) the provision to all subscribers of non-
broadcast open channel signals,
originating from sources outside the
Cable Communications System;
(C) the cablecasting to all subscribers of
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the Local Origination Channel, and the
Public, Educational and Government Access
channel signals;
(D) the transmission to all subscribers of
all other cablecast open-channel signals.
Basic Subscriber Television Service may be
offered to subscribers in one or more tiers or
combination of programs.
(25)
"Basic Subscriber Radio Service" means the
provision to all subscribers of such audio
services as the retransmission of broadcast AM
or FM radio signals, the retransmission of
shortwave, weather, news, time and other
similar audio broadcast channels, and the
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transmission of cablecast AM or FM radio
signals, as permitted by the FCC.
(26) "Closed-Circuit" or "Institutional Service"
means such video, audio,.da*_a and other
services provided to institutional users on an
individual application, private channel basis.
These may include, but not be limited to, two-
way video, audio or digital signals among
institutions, or from institutions to
residential subscribers.
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(27)
"Additional Subscriber Service" means any
service not included in Basic Subscriber
Television Service", or "Basic Subscriber
'Radio Service" or "Institutional Service"
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including, but not limited to, pay-cable.
(28)
"Pay-Cable" or "Pay-Television" means the
delivery to subscribers, over the Cable
Communications System, of televisionsignals
for a fee or charge to subscribers over and
above the charge for Basic Subscriber Service,
on a per program, per channel, or other
subscription basis.
(29)
"Streets and Public Wes' means the surface of
and the space above and below any public
street, sidewalk, alley, or other public way
of any type whatsoever, now or hereafter
existing as such within the City.
(30)
"Resident" means any person residing in the
City as otherwise defined by applicable law.
(31) "Monitoring" means observing a one-way
communications signal, or the absence of a
• signal, where the observer is neither the
subscriber nor the programmer, whether the
signal is observed by visual or electronic
means, for any purpose whatsoever.
(32) "Tapping" means observing a two-way
communications signal exchange, where the
observer is neither of the communicating
parties, whether the exchange is observed by
visual or electronic means, for any purpose
whatsoever.
(33) "Year" means the remaining portion of 1984.
Thereafter, "year" means a full calendar year.
(34) "Section" means any section, subsection, or
provision of this franchise ordinance.
(35) "School" means any educational institution
including primary and secondary schools,
colleges and universities, both public and
private.
(36) "Franchise Agreement" means a signed and
notarized statement on the part of both
Grantor and Grantee accepting and agreeing to
all of the provisions of a franchise granted
pursuant to this Chapter, including referenced
specifications, franchise applications, and
other related material. The franchise
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agreement may modify terms of this Chapter by
mutual agreement, with any such modification
requiring confirmation by appropriate
ordinance amendment.
(37)
"Community Access Corporation" means the non-
profit, public corporation, hereinafter
defined, whose duties shall include the
financing, management and programming of the
Community and Public Access Channels.
(38)
"Gross Annual Revenues" means the annual gross
revenues received by the Grantee from all
sources of operations of the Cable
Communications System, except that any sales,
excise or other taxes collected for direct
pass-through to local, state or federal
government shall not be included.
(39)
"Person" means any corporation, partnership,
proprietorship,:individual or organization
authorized to do business in the State of
California, or any natural person.
6702
GRANT OF FRANCHISE
• (1)
Public Hearing.' The City Council shall hold
a duly noticed public hearing prior to
granting any Cable Communications System
franchise. Notice of said hearing shall be
published at least ten (10) days prior to said
hearing in a newspaper of general circulation
in the City.
(2)
Basis for Award of Franchise. Pursuant to
California Government Code section 53066, the
City Council may base its award of a Cable
Communications System franchise on the
following criteria:
(A) quality of service;
(B) rates to the subscriber;
(C) income to the City;
(D) experience and financial responsibility
of the applicant; and
(E). any other consideration that will
safeguard the local public interest.
(3)
Grant. In the event that Grantor shall grant
to the Grantee a non-exclusive, revocable
franchise to construct, operate, maintain, and
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reconstruct a Cable Communications System
within the City, said franchise shall
constitute both a right and an obligation to
provide the services of Cable Communications
System as required by the provisions of this
Chapter and the franchise agreement. The
franchise shall include those provisions of
the Grantee's "Application for Franchise" that
are finally negotiated and accepted by the
Grantor and Grantee in writing.
The franchise shall be granted under the terms
and conditions contained herein, consistent
with Grantor statutory requirements, which are
incorporated by this reference as if fully set
forth herein. In the event of conflict between
the terms and conditions of the franchise and
the terms and conditions on which the Grantor
can grant a franchise, the statutory
requirements shall, without exception,
control.
The franchise shall be subject to the general
ordinance provisions now in effect or
hereafter made effective. Nothing in the
franchise shall !be deemed to waive the
• requirements of the various codes and
ordinances of the City regarding permits, fees
to be paid, or manner of construction.
(4) Use of Public Streets and Ways. For the
purpose o operating and maintaining a Cable.
Communications System in the City, the Grantee
may erect, install, construct, repair,
replace, reconstruct, and retain in, on, over,
under, upon, across, and along the public
streets and ways within the City such wires,
cables, conducutors, ducts, conduits, vaults,
manholes, amplifiers, appliances, pedestals,
attachments, and other property and equipment
as are necessary and appurtenant to the opera-
tion of the Cable Communications System.
• Prior to construction or alternation, however,
the Grantee shall in each case file plans with
the appropriate City agencies and utility
companies, and receive written approval before
proceeding.
(5) Duration. The term of the franchise and all
rig ts, privileges, obligations and restric-
tions pertaining thereto shall be fifteen (15)
years from the effective date of the franchise
unless terminated sooner as hereinafter pro-
vided. The effective date of the franchise
granting ordinance shall be thirty (30) days
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after passage by the Council unless the
Grantee fails to file by that time in the
appropriate office of the City a written
acceptance of the franchise, in which event it
shall be null and void.
(6) Franchise Non-exclusive. The franchise
granted shall be non-exclusive. The Grantor
specifically reserves the right to grant, at
any time, such additional franchises for a
Cable Communications System as it deems
appropriate.
(7) Franchise Non-transferable. The franchise
shall not be sublet or assigned, nor shall any
of the rights or privileges therein granted or
authorized be leased, assigned, sold or
transferred, either in whole or in part, nor
shall title thereto, either legal or
equitable, or any right, interest or property
therein, pass to or vest in any person, except
the Grantee, either by act of the Grantee or
by operation of law, without the prior consent
of the City expressed by ordinance. The
granting of such consent shall not render
unnecessary any,subsequent consent.
• If the Grantee shall, in violation of this
section, transfer the franchise prior to
obtaining City consent, all of the profits of
the Cable Communications System from the date
of franchise transfer until the date of City
consent shall be returned to the System's
subscribers, on a pro rata basis.
The Grantee, upon transfer as heretofore
described shall, within sixty (60) days
thereafter, file with the City a copy of the
deed, agreement, mortgage, lease, or other
written instrument evidencing such sale,
transfer or lease, certified and sworn to as
correct by the Grantee.
• Every such transfer as heretofore described,
whether voluntary or involuntary, shall be
deemed void and no effect unless Grantee shall
within sixty (60) days after the same shall
have been made, file such certified copy as is
required.
(8) Change in Control. The Grantee shall
promptly notify the Grantor of any proposed
change in, or transfer of or acquisition by,
any other party of control of the Grantee with
respect to which the consent of the Grantor is
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required, pursuant to the section of this
Chapter entitled "Franchise Non-transferable".
Such change in control shall make the
franchise subject to revocation unless and
until the Grantor shall have consented
thereto. For the purpose of determining
whether it will consent to such change,
transfer, or acquisition of control, the
Grantor may inquire into the qualifications of
the prospective controlling party, and the
Grantee shall assist the Grantor in any such
inquiry. The City may condition said transfer
upon the terms and conditions as it deems
appropriate.
For the purposes of this section, a presump-
tive change in control will be established
upon the sale or transfer of ten percent
(10%) or more of the Grantee's ownership
stock.
6703
DESIGN AND CONSTRUCTION PROVISIONS
(1)
System Design Concept. The Cable
Communications System shall be constructed in
accordance with!the provisions of the
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franchise agreement.
(2)
Initial Geographical Coverage. The Grantee
shall design and construct the Cable
Communications System in such manner as to
have the eventual capability to service
every single-family dwelling unit, multiple-
family dwelling unit, agency, and business
establishment within the area of the
franchise. Service shall be provided to
subscribers in accordance with the schedules
and line extension policies specified in the
franchise agreement. The initial route of
cables serving institutional subscribers shall
be approved by Grantor, and confirmed in the
franchise agreement.
• (3)
Cablecasting Facilities. The Grantee shall
provide cablecasting facilities in accordance
with the provisions cf the franchise
agreement.
(4)
Interconnection. The Grantee shall provide
the interconnection capability specified in the
franchise agreement. The Grantor may, in the
future, require the Grantee to participate in
interconnecting the Cable Communications
System to other cable systems in the greater
Los Angeles metropolitan area. Such inter-
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connection may be required when both the
Grantor and the franchising authority for the
other cable system(s) agree that such inter-
connection is desirable, and also'on the
number of channels to be transmitted and
received by each system.
When such interconnection is required, the
cost shall be borne by both Grantees, in the
proportion of number of channels received to
total number of channels transmitted and
received, under the assumption that benefits
accrue primarily through receipt of additional
channels.
In the case of regional or state-wide inter-
connection, the same principle shall apply.
(5) System Construction Schedule.
(A) The Grantee shall begin to offer Basic
Subscriber Television and Radio Service
in accordance with the schedule contained
in the franchise agreement, or sooner. -
(B) Service need not be provided in any area
power and telephone utilities are not
available.
(C) The Grantee shall provide a detailed
construction plan indicating progress
schedule, area construction maps, test
plan, and projected dates for offering
service. In addition, the Grantee shall
update this information on a monthly
basis, showing specifically whether
schedules are being met and the reasons
for any delay.
(6) Penalties for Delay in Construction. The
Grantor may at its sole option, apply any or
all of the following penalties in connection
. with delays in System construction:
(A) Reduction in the duration of the
franchise on a month-to-month basis for
each month of unexcused delay exceeding
six (6) months.
(B) Forfeiture of performance bonds for
unexcused delays exceeding one (1) year.
(C) Termination of the franchise for
unexcused delays exceeding eighteen (18)
months.
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(D) If, after nine (9) months of the
effective date of the franchise, Grantee
has not commenced construction and
Grantee does not commence construction
within thirty (30) days of written notice
of such failure from Grantor, subject to
the procedural provisions of section
6706(5), Grantor may impose a financial
penalty not to exceed One Thousand
Dollars ($1,000.00) per day for each day
the Grantee fails to initiate construc-
tion.
(7)
Provision of Service. After service has been
established by activating trunk cables for any
area, the Grantee shall provide service to any
requesting subscriber within that area within
sixty (60) days from the date of request.
(8)
Undergrounding of Cable. The undergrounding
of cables is encouraged. In any event, cables
shall be installed underground at Grantee's
cost where existing utilities are already
underground. Previously installed aerial
cable shall be undergrounded in concert with
other utilities, when such other utilities may
convert from aerial to underground
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construction.
(9)
Construction Components and Techniques. Con-
struction components an techniques shall be
in accordance with the franchise agreement.
(10)
Technical and Performance Standards. System
technical and performance standards shall be
in accordance with the franchise agreement.
(11)
Test and Compliance Procedure. The Grantee
shall submit, concurrent with its franchise
application, a detailed test plan describing
the methods and schedules for testing the
Cable Communications System on an ongoing
basis to determine compliance with the
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provisions of the franchise agreement. The
tests for the residential services shall be
performed periodically, at intervals no
greater than every six (6) months, on a
minimum of twenty (20) subscriber television
receivers, located throughout the service
area. At least eight (8) of these locations
shall be at the far end of the distribution
trunk cables. The tests shall be witnessed by
representatives of the Grantor, and written
test reports shall be submitted to the
Grantor. If more than ten percent (10%) of
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the locations tested fail to meet the
performance standards, the Grantee shall be
required to indicate what corrective measures
have been taken, and the entire test shall be
repeated for at least twenty (20) different
locations. A second failure of more than ten
percent (10%) may result, at the Grantor's
option, in an order to reduce subscriber rates
due to degraded service.
(12) Emergency Requirements. The Grantee shall
design and construct the system to provide for
a restricted audio override of the audio
portion of all channels during emergencies.
An emergency power source shall be provided by
the Grantee. Equipment redundancy shall be
provided as required to meet performance
standards during periods of emergency or
component failure..
(13) Construction Codes. The Grantee shall
strictly adhere to all building and zoning
codes currently or hereafter in force. The
Grantee shall arrange its lines, cables, and
other appurtenances, on both public and
private property',, in such a manner as to cause
• no unreasonable interference with the use of
said public or private property by any person.
In the event of such interference, the Grantor
may require the removal of the Grantee's
lines, cables, and appurtenances from the
property in question.
(14) Repair of Streets and Public Ways. Any and
all streets and public ways which are
disturbed or damaged during the construction,
operation, maintenance, or reconstruction of
the Cable Communications System, shall be
promptly repaired by the Grantee, at its
expense, and to the satisfaction of the
Grantor.
(15) Erection of Poles Prohibited. The Grantee
shall not erect, or any reasosn, any pole on
or along any street or public way in an
existing aerial utility system. If additional
poles in an existing aerial route are
required, Grantee shall negotiate with the
utility for the installation of the needed
poles. Any such addition shall require the
advance written approval of the Grantor. The
Grantee shall negotiate the lease of pole
space and facilities from the existing pole
owners for all aerial construction, under
mutually acceptable terms and conditions. The
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Grantor shall utilize its best offices to
assist in arriving at equitable pole rental
agreement.
(16) Restoration of Streets. Whenever the Grantee
shall disturb the surface of any street,
alley, public highway or ground for any
purpose mentioned herein, it shall restore the
same to the condition in which it was prior to
the opening thereof, and when any opening is
made by the Grantee in any hard surface
pavement in any street, alley or public
highway, the Grantee shall promptly refill the
opening and restore the pavement. The Grantor
may refill and/or repave in case of neglect of
the Grantee. The cost thereof, including the
cost of inspection and supervision, shall be
paid by the Grantee. All excavations made by
the Grantee in the streets, alleys and public
highways shall be properly safeguarded for the
prevention of accidents. The work hereby
required shall be done in strict compliance
with the rules, regulations and ordinances of
the Grantor as now or hereafter provided. -
(17) Reservations of!Street Rights. Nothing in
• the franchise shall be construed to prevent
the Grantor from constructing sewers,
grading, paving, repairing and/or altering
any street, alley, or public highway, or
laying down, repairing or removing water mains
or constructing, maintaining or establishing
any other public work. All such work shall be
done insofar as practicable, in such manner as
not to unnecessarily obstruct, injure or
prevent the free use and operation of the
poles, wires, conduits, conductors, pipes or
appurtenances of the Grantee. If any such
property of the Grantee herein shall interfere
with the construction or repair of any street
or public improvement, whether it be
construction, repair or removal of a sewer or
water main, the improvements of a street or
any other public improvement, all such poles,
wires, conduits or other appliances and
facilities shall be removed or replaced in
such manner as shall be directed by the
Grantor so that the same shall not interfere
with the said public work of the Grantor, and
such removal or replacement shall be at the
expense of the Grantee herein.
(18) Trimming of Trees. Nothing contained in this
franchise shall be deemed to empower or
authorize Grantee to cut or trim any trees,
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ornamental or otherwise, in any of the
streets, alleys or public highways, but
Grantee may cut or trim trees as necessary
only pursuant to a prior agreement with the
owner of property which is adjacent to the
street area in which such tree stands.
(19) Street Vacation or Abandonment. In the event
any street, alley, public highway or portion
thereof used by the Grantee shall be vacated
by the Grantor, or the use thereof
discontinued by the Grantee, during the term
of this franchise, the Grantee shall forthwith
remove its facilities therefrom unless
specifically permitted to continue the same,
and on the removal thereof restore, repair or
reconstruct the street area where such removal
has occurred, and place the street area where
such removal lhas occured in such condition as
may be required by the Grantor. In the event
of failure, neglect or refusal of the Grantee,
after thirty (30) days notice by the Grantor
to repair, improve or maintain such street
portion, the Grantor may do such work or cause
it to be done, and the cost thereof as found
and declared bylthe Grantor shall be paid by
• the Grantee and collection may be made by
court action or otherwise.
(20) Movement of Facilities. In the event it is
necessary temporarily to move or remove any of
the Grantee's wires, cables, poles or other
facilities placed pursuant to the franchise,
in order lawfully to move a large object,
vehicle, building or other structure over the
streets, alleys or highways of the Grantor,
Grantee upon reasonable notice shall move at
the expense of the person requesting the
temporary removal such of his facilities As
may be required to facilitate such movements.
SECTION 6704 SERVICE PROVISIONS
is (1) Services to be Provided. The Cable
Communications System shall provide, as a
minimum, the services listed in the franchise
agreement. Services shall not be reduced
without prior approval of Grantor.
(2) Basic Subscriber Television Service (BSTS).
The Basic Subscriber Television Service"
shall include the FCC-required services, the
distant television broadcast signals, the
imported non-broadcast signals, and the
provision of all other cablecast open-channel
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signals. This service shall be provided to
all subscribers at the established BSTS
monthly subscription rates. Tiers of service
may be provided at different rates, to offer
residents a broader choice.
(3)
Basic Subscriber Radio Service (BSRS). The
Basic Subscriber Radio Service shall include
the provision of all designated audio
services, including broadcast FM and-At radio,
and cablecast FM signals. This service shall
be provided to all subscribers at the
established BSRS monthly subscription.
(4)
Institutional Service (IS). The
Institutional Service shall include the
provision of transmission and/or reception
services to institutional users, on a leased
channel basis at established IS rates.
Services may include the distribution of video
or non-video signals.
(5)
Additional Subscriber Services. "Additional
Subscriber Services'', not included in the BSTS
and BSRS services specified above, may be
provided, either! within the basic subscription
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rates, or on a premium basis.
(6)
Local Origination Channel(s). The Grantee
shall operate the cablecasting studios on a
high-quality, professional basis for the
purpose of providing cablecast programming
responsive to local needs and interests. The
emphasis for the Local Origination Channel(s)
shall be on providing programming that is
unavailable to viewers on broadcast television
channels.
(7)
Government Access Channel. The Grantee shall
provide one or more channels for the use of
the Grantor at no charge to the Grantor. The
Grantee shall make every effort to provide
advice and technical expertise to aid in the
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utilization of the channel(s).
(8)
Educational Access Channel. The Grantee
shall provide one or more channels for the use
of the local educational institutions at no
charge. The Grantee shall make every effort
to provide advice and technical expertise to
aid in the utilization of the channel(s).
(9) Public Access Channel. The Grantee shall
make at least one channel available to the
public at no charge. The public access
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channel(s) shall be managed and operated by an
independent, non-profit public corporation,
the "Community Access Corporation" as
described later in this Chapter. The Grantee
shall make available for programmers of the
public access channel the facilities listed
in the franchise agreement, under terms of a
mutual agreement with the Community Access
Corporation.
(10) Service to Public Buildings. Grantee shall,
at cost, provide and maintain one (1) cable
television drop to each City facility, library
and public school located within the
authorized franchise service area upon request
for service.
(11) Service to Private Non-profit Schools.
Grantee shall, at cost, provide and maintain
one (1) cable television drop to each private,
non-profit school site within the authorized
franchise service area.
As used in this section, "private, non-profit
schools" means schools that satisfy the
requirements oflsection 12154 of the Education
Code of the State of California and which are
exempt from taxation under Section 214 of the
Revenue and Taxation Code of the State of
California.
SECTION 6705 OPERATION AND MAINTENANCE
(1) Open Books and Records. The Grantee shall
maintain an o fice within the franchise
territory and manage all of its operations in
accordance with a policy of totally open books
and records. The Grantor shall have the right
to inspect at any time during normal business
hours, all books, records, maps, plans, income
tax returns, financial statements, service
complaint logs, performance test results and
• other like materials of the Grantee which
relate to the operation"of the franchise.
Access to the aforementioned records shall not
be denied by the Grantee on the basis that
said records contain "proprietary"
information.
(2) Communications with Regulatory Agencies.
Copies of all petitions, applications,
communications, and reports submitted by the
Grantee to the Federal Communications
Commission, Securities and Exchange
Commission, or any other federal or state
16
regulatory commission or agency having
jurisdiction in respect to any matters
affecting cable communications operations
authorized pursuant to this franchise, shall
also be submitted simultaneously to the
Grantor. Copies of responses from the
regulatory agencies to the Grantee shall
likewise be furnished simultaneously to the
Grantor.
(3) Reports.
(A) Annual Report. No later than April 15
of each year, the Grantee shall present a
written report to the Grantor which shall
include:
(1) A fully-audited and certified
financial report for the previous
calendar year, including gross
revenues from all sources, gross
subscriber revenues from each
category of service, net income and
end-of-year balance sheet.
(2) A summary of the previous year's
• activities, including, but not
limited to, subscriber totals and
new services.
(3) A summary of complaints received and
handled.
(4) Projected plans for the future.
(B) Monitoring and Compliance Reports. No
later than April 15 of each year, the
Grantee shall provide a written report of
the FCC performance tests for the Home
Subscriber Network required in Part 76,
Section 76.601 of FCC Rules and
Regulations. In addition, the Grantee
shall provide, in accordance with Section
5, reports of the Test and Compliance
procedures established by the franchise
agreement, no later than thirty (30) days
after the completion of each series of
tests.
(C) Additional Reports. The Grantee shall
prepare and furnish to the Grantor, at
the times and in the form prescribed,
such additional reports with respect to
its operation, affairs, transactions, or
property, as may be reasonably necessary
17
• f
and appropriate to the performance of any
of the rights, functions or duties of the
Grantor in connection with this
franchise.
(4) Maintenance and Complaints.
(A) The Grantee shall maintain an office in
the franchise territory which shall be
open during all usual business hours,
have a publicly listed toll-free
telephone, and be so operated to receive
subscriber complaints and requests for
repairs or adjustments on a 24-hour
basis. A written log shall be maintained
listing all complaints and their
disposition.
(B) The Grantee shall render efficient
service, make repairs promptly, and
interrupt service only for good cause and
for the shortest time possible. Such
interruptions, insofar as possible, shall
be preceded by notice and shall occur
during period of minimum use of the
system. Alwritten log shall be
• maintained for all service interruptions.
(C) The Grantee shall maintain a repair force
of technicians capable of responding to
subscriber complaints or requests for
service within 24 hours after receipt of
the complaint or request. No charge
shall be made to the subscriber for this
service.
(D) The Grantor shall ensure that all
subcsribers, programmers, and members of
the general public have recourse to A
satisfactory hearing of any complaints,
where there is evidence that the Grantee
has not settled the complaint to the
• satisfaction of the person initiating the
complaint. The Grantor shall establish
procedures for handling and settling
complaints.
(5) Safety.
(A) The Grantee shall, at all times, employ
the standard of care attendant to the
risks involved and shall install and
maintain in use commonly accepted methods
and devices for preventing failures and
accidents which are likely to cause
18
damage, injury, or nuisance to the public
or to employees of the Grantee.
(B) The Grantee shall install and maintain
its wires, cables, fixtures, and other
equipment in accordance with requirements
of the National Electrical Code, and in
such manner that they will not interfere
with any installations of the Grantor or
any public entity.
(C) All lines, equipment, and connections in,
over, under, and upon the streets and
public ways and private property in the
City, wherever situated or located, shall
at all times be kept and maintained in a
safe and suitable condition, and in good
order and repair.
SECTION 6706 REGULATION OF FRANCHISE AND RATES
(1) Charges Permitted and Regulated. The Grantee
may make such charges or services provided to
subscribers as are permitted by the franchise
agreement or by!subsequent approval of the
Grantor. The Grantee shall receive no
• remuneration whatsoever for its subscribers
for or in connection with any service provided
to subscribers without approval of the
Grantor. New services are encouraged and
reasonable charges for such new services shall
not be unreasonably limited or denied.
(2) Schedule of Rates. The initial schedule of
rates to be utilized by the Grantee shall be
those in the Grantee's franchise application,
and shall be firm for a period of at least two
(2) years after commencement of service within
the City. The schedule of rates shall include
installation and monthly charges for providing
Basic Service, Closed-Circuit Service,-rates
for Additional Services, any special rates for
• large institutions, motels, multiple family
dwelling units, or any other type of special
subscriber. No additional charge shall be
made for the provision of any converter
without prior approval of the Grantor. All
rates shall be published and non-
discriminatory, and be uniform to all persons
and organizations of like classes, under
similar circumstances and conditions. Nothing
in this provision shall be construed to
prohibit the reduction or waiving of charges
in conjunction with promotional campaigns for
the purpose of attracting subscribers, nor the
19
granting of reduced rates to non-profit
institutions, nor shall this provision be
interpreted to prohibit the establishment of a
graduated scale of charges and rate schedules
which vary with volume of usage, to which any
subscriber or programmer included within a.
particular classification shall be entitled.
(3) Chan e in Rates. Increases in rates for
asic service shall be requested no more often
than annually by Grantee. Upon receipt of a
rate increase request, Grantor shall schedule
a public hearing prior to arriving at a
decision. Upon request from Grantor, Grantee
shall provide and Grantor shall consider
relevant financial and other information
necessary to determine the justification for
the requested increase. Failure to provide
such requested information shall be grounds
for denial of the rate increase. Within
ninety (90) days after receipt of the rate
increase request, Grantor, expressed by City
Council resolution, shall approve the request
in full, approve the request in part, or
disapprove the request. In any event, Grantor.
shall provide findings as to the basis for its
. decision. If no Grantor action has occurred
within ninety (90) days after receipt of the
rate increase request, unless Grantor and
Grantee agree in writing to an extension of
time, the request shall be deemed to have been
approved.
(4) Rate Regulation Criteria. Grantor shall take
into consideration for rate regulation
purposes all costs associated with the
construction and operation of the Cable
Communications System. Grantor may also con-
sider any or all of the following factors in
determining whether to approve, modify or
disapprove Grantee's requests for rate
increases during the term of this franchise:
. (A) Grantee's substantial fulfillment of all
material requirements of the franchise.
(B) Quality of service, as indicated by the
number and type of service complaints,
Grantee's response to complaints, and the
results of periodic system performance
tests.
(C) prevailing rates for comparable services
in other cable systems of similar size
and complexity.
20
(D) Rate of return on Grantee's financial
investment and equity, as compared to
businesses of equivalent cumulative basis
for all system revenues and costs,
including services such as pay-television
services that may be exempt from local
rate regulation. Upon request from
Grantor, Grantee shall provide all
information as shall be reasonably
necessary to determine system revenues
and costs.
(E) Performance of Grantee in introducing new
services and expanding the cable system's
capability, as compared to other systems
of similar size and complexity.
(S) Remedies for Franchise Violations.
(A) In addition to the penalties for delays
in construction as specified in section
6703(6) hereof, Grantor reserves the right
to impose the following penalties in the
event Grantee violates any other material
provision of the franchise, provided that
Grantee has not commenced corrective
action within thirty (30) days of service
of written notice by certified mail to,
or personal service on, the general
manager of Grantee:
(1) Impose a financial penalty, not to
exceed One Thousand Dollars
($1,000.00) per day or per incident,
for Grantee's individual willful and
repeated violation of the franchise
or failure to take corrective action
with respect to a violation of any
provision of the franchise.
(2) Require Grantee to make rate rebates
or payments to the customers or
classes of customers in such amount
and on such basis as Grantor may
deem reasonable, provided, however,
.that payment or rebates to customers
shall be made only in the event of:
(a) billing error on an individual
or class basis. The refund
shall be equal to the actual
amount of the error.
(b) an unexcused interruption or
abandonment of service in
21
0 •
excess of forty-eight (48)
hours. The rebate shall equal
a pro rata portion of the
subscriber monthly fee or be
determined upon some other
reasonable basis.
(3) Require Grantee to correct or
otherwise remedy the violation prior
to any rate increase becoming
effective.
(B) In the event the stated violation is not
reasonably curable within thirty (30)
days, the franchise will not be
terminated or revoked or a penalty
imposed if the Grantee provides, within
the said thirty (30) days, a plan, satis-
factory to the Grantor, to remedy the
violation and continues to demonstrate
good faith-in seeking to correct said
violation.
(C) In determining which remedy or remedies
for Grantee's violation are appropriate,
Grantor shall take into consideration the
nature of the violation, the person or
persons bearing the impact of the
violation, the nature of the remedy
required in order to further prevent such
violations, and such other matters as the
Grantor may deem appropriate.
(D) Within ten (10) days after receipt of a
written notice of a violation from
Grantor, Grantee may request a hearing
before the City Manager or other person
designated by the City Council. Such a
proceeding shall afford full due process
of law and shall be held within thirty
(30) days of the receipt of the request
therefor.
. (E) The determination of the City Manager or
other person designated by the City
Council shall be subject to appeal to the
City Council within fifteen (15) days of
service of notice in writing of said
determination to Grantee. A notice of
appeal shall be delivered to the City
Clerk within said time period and shall
specify the grounds for the appeal.
Grantor and Grantee may agree to waive
the conduct of a hearing provided for in
section 6704(5)(D) and proceed directly
22
0 (6)
to a final determination by the City
Council as provided for in this part.
(F) The City Council, in the case of an
appeal or direct jurisdiction, shall hold
a hearing affording Grantee full due
process of law. Said hearing shall be
set within thirty (30) days of the
receipt of the request therefor.
(G) The City Council, in determining any
penalty, shall make written findings of
fact which address the considerations
referenced in section 6706(5)(C) hereof.
(H) Nothing herein shall prevent either the
Grantor or the Grantee from obtaining
injunctive 'relief to enforce the
provisions of the franchise.
(I) Nothing,herein shall prevent Grantor from
conducting hearings and providing for
remedies on a joint basis with other
cities served by the same cable system.
Advance Charges; Deposits and Late Payment
•
es. Grantee may require payment
es and deposits as follows:
(A) The Grantee may require subscribers to
pay for service in advance of the
beginning of each month.
(B) Nothing in this provision shall be
construed to prohibit charges for initial
installation and reconnection or to
prohibit Grantee from requiring
reasonable deposits for equipment.
(C) Grantee may require subscribers to pay a
late payment charge on any bill not paid
by its due date. Such late payment
charge shall not exceed one and one-half
percent (1-1/2%) of the overdue amount or
fifty cents ($.50), whichever is greater.
(7) Installation and Reconnection. Except as
otherwise provided in the franchise agreement,
the Grantee may make a charge to subscribers
for the installation of service outlets and
for the reconnection of service outlets. The
rates for such connection or reconnection
shall be authorized by the Grantor as provided
in the section entitled "Schedule of Rates".
The Grantee may waive all or a portion of such
23
0
charges for connection or reconnection, as
provided in the section entitled "Schedule of
Rates".
(8) Disconnection. There shall be no charge for
disconnection of any installation or outlet.
If any subscriber fails to pay a properly due
monthly fee or charge, the Grantee may
disconnect the subscriber's service as
follows:
(A) No service shall be disconnected until
the delinquent fee is sixty (60) days
overdue or until ten (10) days after
written notice to the subscriber of
intent to disconnect for failure to pay,
whichever is later.
(B) In the case of pay-cable services only,
no service shall be disconnected until
the delinquent fee is thirty'(30) days
overdue or until ten (10) days after
written notice to the subscriber of
intent to disconnect for failure to pay,
whichever is later.
I
• Upon payment of the delinquent fee or charge
and the payment of a reconnection charge, the
Grantee shall promptly reinstate the
subscriber's cable service.
SECTION 6707 REGULATION OF FRANCHISE
(1) Areas of Regulation. The Grantor shall have
responsibility for regulation in the following
areas:
(A) Administering and enforcing the
provisions of the Cable Communications
System franchise(s).
(B) Coordination of the operation of
government and educational channels.
(C) Providing technical, programming and
operational support to public agency
users, such as City departments, schools
and health care institutions.
(D) Establishing procedures and standards for
institutional operations and services,
use of dedicated channels, and sharing of
public facilities.
24
(E) Planning expansion and growth of cable
services.
(F) Analyzing the possibility of integrating
cable communications with other City,
state or regional telecommunications
networks.
(G) Formulating and recommending long-range
telecommunications policy for the City.
(H) Collecting the designated franchise.fees.
SECTION 6708 COMMUNITY ACCESS CORPORATION
At Grantor's sole option, Grantor may ensure that the
Public Access and other Community Channels are governed by an
independent, non-profit corporation, termed the Community
Access Corporation (CAC), such that these channels may be
free of censorship, open to all residents of the City and
available for all forms of public expression, community
information, and debate on public issues.
SECTION 6709 GENERAL FINANCIAL AND INSURANCE PROVISIONS
(1) Payment to the Grantor.
• (A) As compensation for the franchise to be
granted, and in consideration of
permission to use the streets and public
ways of the City for the construction,
operation, maintenance, and reconstruc-
tion, of a Cable Communications System
within the City, and to defray the costs
of franchise regulation, the Grantee
shall pay to the Grantor an annual amount
equal to five percent (5%) of the
Grantee's Gross Annual Revenues.
(B) Payments due the Grantor under this
provision shall be computed quarterly,
for the preceding quarter, as of March
• 31, June 30, September 30, and December
31. Each quarterly payment shall be due
and payable no later than thirty (30)
days after the dates listed in the
previous sentence. Each payment shall be
accompanied by a brief report showing the
basis for the computation and such other
relevant facts as may be required by the
.Grantor.
(C) No acceptance of any payment shall be
construed as an accord that the amount
paid is in fact the correct amount, nor
25
. i i
shall such acceptance of payment be
construed as a release of any claim the
Grantor may have for further or
additional sums payable under the
provisions of this permit. All amounts
paid shall be subject to audit and
recomputation by the Grantor.
(D) Following the issuance and acceptance of
the franchise, the Grantee shall initiate
franchise fee payments to the Grantor.
These payments are to be considered
advances of payments due in later years
of the franchise inasmuch as they exceed
the actual franchise payments due during
any year.
(2) Letter of Credit. Within thirty (30) days of
the effective date of the franchise, Grantee
shall deliver to Grantor an irrevocable and
unconditional letter of credit in form and
substance acceptable to Grantor, from a bank
approved by Grantor in the amount of Twenty-
Five Thousand Dollars ($25,000.00). Such a
letter shall beimaintained on deposit
throughout the term of this franchise. The
• use of the letter of credit by Grantor to
satisfy any penalties shall be in full
compliance with the procedural provisions of
this Chapter.
(3) Faithful Performance Bond. Upon the
effective date of the franchise, Grantee shall
furnish proof of the posting of a faithful
performance bond, which may be a corporate
surety body, running to the Grantor, in the
penal sum of Three Hundred Thousand Dollars
($300,000.00). The faithful performance bond
shall be a form approved by the City Attorney.
Upon demonstration by Grantee to the
satisfaction of Grantor that all the
construction to be undertaken in the City
• pursuant to the franchise agreement has in
fact been completed and the system is fully
operational, the bond shall be reduced to a
sum of Sixty Thousand Dollars ($60,000.00).
Such bond for a sum of Sixty Thousand Dollars
($60,000.00) shall be maintained by the
Grantee throughout the term of this franchise.
(4) Damages and Defense.
(A) The Grantee shall hold harmless the
Grantor for all damages and penalties
arising directly or indirectly as a
26
result of the exercise of the franchise.
These damages and penalties shall
include, but shall not be limited to,
damages arising out of copyright
infringement, defamation, and all other
damages arising out of the construction,
operation, maintenance or reconstruction
of the Cable Communications System
authorized herein, whether or not any act
or omission complained of is authorized,
allowed, or prohibited,by this franchise.
(B) The Grantee shall pay all expenses
incurred by the Grantor in defending
itself with regard to all damages and
penalties mentioned in subsection (a)
above. These expenses shall include all
out-of-pocket expenses, such as attorney
fees, and shall also include the
reasonable value of any services rendered
by any employees of the Grantor.
(5) Liability Insurance and Indemnification.
Upon the effective date of the franchise,
Grantee shall furnish proof that Grantor and
Grantee have been added as named insureds to
• the liability insurance policy. Said policy
shall remain in force, in the minimum amounts
of Two Million Dollars ($2,000,000.00), in the
areas of general and owners liability and
property damage. Grantee shall also provide
worker's compensation coverage consistent with
California statutory requirements and motor
vehicle insurance coverage of Two Million
Dollars ($2,000,000.00). Insurance coverage
during system construction, fire coverage and
extended coverage shall all provide for one
hundred percent (100%) coverage of the
replacement value of the assets. The
insurance shall provide that Grantee shall
receive thirty (30) days written notice prior
to any alteration of a material provision of
• the insurance or any reduction in coverage of
the insurance by this section. Such notice
shall also be required in the case of
cancellation of any coverage required by this
section.
The liability insurance policy shall be
maintained throughout the duration of this
franchise, with a copy filed with Grantor.
27
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SECTION 6710 RIGHTS RESERVED TO THE GRANTOR
(1) Right to Purchase the System. Grantor, in
compliance with California law governing
eminent domain and upon payment of fair market
value, may condemn the franchise, property and
plant of Grantee.
(2) Grantor shall have the right to purchase those
portions of the system within the City of
Rosemead only upon revocation or expiration of
the initial terms of the franchise or any
renewal or extensions thereof. Purchase price
to Grantor shall not include any sum for the
value of the franchise and such plant and
property shall be valued according to book
value of all capital investments attributable
thereto, less depreciation.
(3) Right of Inspection of Records. There shall
be kept in the Grantor's offices a separate
record for the franchise, which record shall
show the things hereafter set forth. The
Grantee shall provide such information in such
form as may bejrequired by the Grantor for
• said records. '
(A) The true and entire cost of construction
of equipment, of maintenance and of the
administration and operation thereof; the
amount of stock issued, if any; the
amount of cash paid in, the number and
par value of shares, the amount and
character of indebtedness, if any; the
rate of taxes, the dividends declared;
the character and amount of all fixed
charges; the allowance, if any, for
interest, for wear and tear or
depreciation; all amounts and sources of
income.
(B) The amount collected annually from the
City treasury and the character and
extent of the service rendered therefor
to the City.
(C) The amount collected annually from other
users of service and the character and
extent of the service rendered therefor
to them.
The books of records kept by the Grantor shall
be open to public examination at any time
during the business hours of the Grantor's
office. The information, in addition to any
28
• •
further data which may be required by the
Grantor, shall be furnished by the Grantee to
the Grantor upon request, and at the Grantee's
own cost and expense.
The Grantor shall have the right to inspect
all books, records,.maps, plans, income tax
returns, financial statements, and other like
material of the Grantee at any time during
normal business hours.
(4) Right of Inspection of Construction. The
Grantor shall have the right to inspect all
construction or installation work performed
subject to the provisions of the franchise and
to make such tests as it shall find necessary
to ensure compliance with the terms of this
franchise and other pertinent provisions of
law.
(5) Right of Intervention. The Grantor shall
have the right of intervention in any suit or
proceeding to which the Grantee is party, and
the Grantee shall not oppose such intervention
by the Grantor.
(6) Right to Require Removal of Property. At the
expiration of the term or which the franchise
is granted, or upon its revocation or
expiration, as provided for herein, the
Grantor shall have the right to require the
Grantee to remove, at its own expense, all
portions of the Cable Communications System
from all streets and public ways within the
City.
SECTION 6711 RIGHTS OF INDIVIDUAL PROTECTED
(1) Discriminatorv Practices Prohibited. The
Grantee shall not deny service, deny access,
or otherwise discriminate against subscribers,
programmers, or general citizens on the basis
• of race, color, religion, national origin, sex
or age. The Grantee shall strictly adhere to
the equal employment opportunity requirements
of the federal and state governments, as
expressed in Section 76.13(a)(8) and 76.311 of
Chapter 1 of Title 47 of the Code of Federal
Regulations. The Grantee shall comply at all
times with all other applicable federal, state
and City laws, and all executive and
administrative orders relating to non-
discrimination.
29
E
L:i
(2)
Cable Tapping Prohibited. Neither the
Grantee, nor any other person, agency, or
entity shall tap, or arrange for tapping, of
any cable, line, signal input device, or
subscriber outlet or receiver for any purpose
whatsoever.
(3)
Privacy and Other Human Rights. The Grantee
and the Grantor shall maintain constant
vigilance with regard to possible abuses of
the right of privacy or other human rights of
any subscriber, programmer, or general citizen
resulting from any device or signal associated
with the Cable Communications System. The
Grantee shall not place in any private
residence any equipment capable of two-way
communications without the written consent of
the residents, and will not utilize the two-
way communications capability of the System
for unauthorized subscriber surveillance of
any kind.
(4)
Permission of Property Owner Required. No
cable, line, wire, amplifier, converter, or
other piece of equipment owned by the Grantee
shall be installed by the Grantee without
first securing the written permission of the
owner of any property involved. If such
permission is later revoked, whether by the
original or a subsequent owner, the Grantee
shall remove forthwith any of its equipment
which is both visible and movable and promptly
restore the property to its original
condition.
(5)
Sale of Subscriber Lists Prohibited. The
Grantee shall not sell, or otherwise make
available, lists of the names and addresses of
its subscribers, or any list which identifies,
by name, subscriber viewing habits, to any
person, agency, or entity, for any purpose
whatsoever, without the specific authorization
of the Grantor, expressed by resolution, after
a public hearing which shall be announced by
written notice published in a newspapper of
general circulation at least ten (10)
consecutive days before the date of the..
hearing.
SECTION
6712 TERMINATION AND RENEWAL
(1)
Revocation.
(A) In addition to any rights set forth
elsewhere in this Chapter, the Grantor
30
reserves the right to revoke the
franchise, and all rights and privileges
pertaining thereto, in the event that:
(1) The Grantee willfully or repeatedly
violates any material provision of
the franchise; or
(2) The Grantee's construction schedule
is delayed for over eighteen (18)
months, due to any cause which is
within the Grantee's reasonable
control; or
(3) The Grantee becomes insolvent, is
involuntarily adjudged as bankrupt,
or files a voluntary petition for
relief under the Bankruptcy Act; or
(4) The Grantee is adjudged to have
practiced any fraud or deceit upon
the Grantor and such judgment
becomes final after all appeals are
exhausted according to law.
(B) If Grantee violates any provision
• contained in section 6712(1)(A)(1)-(4)
hereof, Grantor shall give written notice
of the default to Grantee.
(C) Grantee shall be given thirty (30) days,
after such written notice, to correct
such default, or to commence appropriate
corrective action. Such notice and
period to cure need not be repeated if
the same were previously provided to
Grantee as a prerequisite to other
remedies. The franchise shall not be
revoked pursuant to this section if,
within said thirty (30) days, Grantee
provides a plan satisfactory to Grantor
to remedy the violation and Grantee
• continues to demonstrate good faith in
seeking to correct said violation.
(D) If Grantee fails to correct such default
.or to commence appropriate correction
action as provided in section 6712(1)(C)
hereof, Grantor may elect to impose a
penalty, as provided in section 6706(5)
hereof, or Grantor may elect to terminate
this franchise as follows:
31
o •
(1) Grantor shall hold a public hearing
to consider the option of revocation
of the franchise;
(2) Grantor shall give Grantee at least
ten (10) days advance written notice
of such hearing;
(3) Grantor shall publish notice of such
hearing in a newspaper of general
circulation in the City at least ten
(10) days in advance of such
hearing;
(4) Grantee shall be afforded all due
process of law, including the right
to appear and be heard at the
hearing;
(5) If after such hearing Grantor
determines that the franchise should
be revoked, Grantor shall advise
Grantee of its decision in writing.
Grantee shall have a period of
thirty (30) days, beginning the next
day following written notice to
• Grantee of such decision, within
which to file any appropriate legal
action. During such thirty (30) day
period, the franchise shall remain
in full force and effect, unless
the term thereof expires sooner;
(6) Absent a court order to the contrary
and upon the expiration of the
thirty (30) day period set forth in
section 6712(1)(D)(5) hereof, the
Grantor may by ordinance or
resolution declare a forfeiture of
the franchise, whereupon all rights
of the holders of the franchise
shall immediately be divested
• without a further act upon the part
of the Grantor, and the Grantee
shall upon demand of Grantor
forthwith remove its structure or
property from the streets and
restore the streets to such
condition as the Grantor may
reasonably require and upon failure
to do so, the Grantor may perform
the work and collect the costs
thereof from the Grantee. The costs
thereof shall be a lien upon all
plant and property of the Grantee.
32
. a •
Such lien shall not attach to the
property of the Grantee located on
the poles or other utilities until
removal of such property from the
pole. Should Grantor decide to take
over and operate the system, Grantee
shall be compensated consistent with
the provisions of section 6714(1)
hereof.
(2) Receivership. The Grantor shall have the
right to revoke the franchise one hundred
twenty (120) days after the appointment of a
receiver, or trustee, to take over and conduct
the business of the Grantee, whether in
receivership, reorganization, bankruptcy, or
other action or proceeding, unless such
receivership or'trusteeship shall have been
vacated prior to the expiration of said one
hundred twenty (120) days, or unless:
(A) Within one hundred twenty (120) days
after his election or appointment, such
receiver or trustee shall have fully
complied with all the provisions of the
franchise and remedied all defaults
• thereunder; and
(B) Such receiver or trustee, within said one
hundred twenty (120) days, shall have
executed an agreement, duly approved by
the court having jurisdiction in the
premises, whereby such receiver or
trustee assumes and agrees to be bound by
each and every provision of the franchise.
(3) Ex iration. Upon expiration of the initial
term o the franchise and consistent with
section 6712(4) hereof, the Grantor shall have
the right, at its election to:
(A) renew or extend the franchise;
(B) invite additional franchise applications
or proposals;
(C) allow the franchise to terminate without
further action.
The Grantee shall make it a condition of each
contract entered into by it that the Grantor
shall have the right to exercise these
options.
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(4) Renewal or Extension. The Franchise may be
renewed or extended by the Grantor at any time
during the term of the franchise, upon
application of the Grantee, in accordance with
the then existing rules of the FCC, and
applicable law.
(A) Grantee shall submit its application for
renewal at least nine (9) months prior to
the date of expiration.
(B) The Grantor shall schedule a hearing on
the question of renewal, with such
hearing to take place at least six (6)
months before expiration of the
franchise. At least ten (10) days
advance written notice of such hearing
shall be given to Grantee and shall be
published in a newspaper with local
circulation. At such hearing, the
Grantee shall have full due process of
law including the opportunity to appear
and be heard.
(C) Based upon;;information introduced at the
hearing, and any other relevant
• information that it may obtain from the
Grantee, the City shall make a determina-
tion as to whether the Grantee has
substantially complied with material
requirements of the franchise. Such
determination shall be made no less than
two (2) months before the franchise
expires, and a copy of the written
determination supplied to Grantee.
(5) Continuity of Service Mandatory. It shall
be the right of all subscribers to receive all
available services insofar as their financial
and other obligations to the Grantee are
honored. In the event that the Grantee elects
to overbuild, rebuild, modify, or sell the
• system, or the Grantor revokes or fails to
renew the franchise, the Grantee shall do
everything reasonable in its power to insure
that all subscribers receive continuous,
uninterrupted service regardless of the
circumstances, during the lifetime of the
franchise. In the event of purchase by the
Grantor, or a change of Grantee „the current
Grantee shall cooperate with the Grantor to
operate the system for a reasonable temporary
period, in maintaining continuity of service
to all subscribers.
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SECTION 6713 MISCELLANEOUS PROVISIONS
(1) Compliance with Laws. The Grantee shall
comply with all federal and State of
California laws, as well as all City
ordinances, resolutions, rules, and
regulations heretofore or hereafter adopted or
established during the entire term of the
franchise.
(2) Separability. If any section of the
franchise is held to be invalid or pre-empted
by federal or state regulations or laws, such
finding or pre-emption shall not affect the
remaining provisions of the franchise except
as provided in section 6713(6).
(3) Captions. The captions to sections
throughout this Chapter are intended solely to
facilitate reading and reference to the
sections and provisions of this Chapter. Such
captions shall not affect the meaning or
interpretation of this Chapter.
(4) No Recourse Against the Grantor. The Grantee
shall have no recourse whatsoever against the
• Grantor or its officials, boards, commissions,
agents, or employees for any loss, costs,
expense, or damage arising out of any
provision or requirement of the franchise or
because of the enforcement of the franchise.
(5) Non-enforcement by the Grantor. The Grantee
shall not be relieved of its obligation to
comply with any of the provisions of this
permit by reason of any failure of the Grantor
to enforce prompt compliance.
(6) Subsequent Action by State or Federal Agencies.
Should the State of California, the FCC, or
any other agency of the federal government
subsequently require the Grantee to perform or
cease to perfrom any act which is inconsistent
with any provisions of the franchise, the
Grantee shall so notify the Grantor. Upon
receipt of such notification, the Grantor
shall determine if a material provision of the
franchise is affected. Upon such determina-
tion, the Grantor shall have the right to
modify or amend any of the sections of the
franchise to such reasonable extent as may be
necessary to carry out the full intent and
purpose of the franchise. The Grantor may
terminate the franchise in the event the
Grantor determines that substantial and
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material compliance with the original proposed
terms of the franchise has been frustrated by
such state or federal requirement.
SECTION 6714 FRANCHISE APPLICATIONS
(1) Franchise Applications. Applicants for a
franchise shall submit to the Grantor, or to a
designated agency, written application
utilizing the standardized format provided by
the-Grantor, at the time and place designated
by the Grantor for accepting applications, and
including the designated application fee. Any
applicant which presently has an application
on file with the City may modify that
application to contain the provisions of this
Chapter.
(2) Franchise Processing Fee. The Grantee shall
be required to reimburse the Grantor for
reasonable costs, including legal and
consultant fees, expended in soliciting and,
evaluating applications, and processing the
franchise award, to the extent.that such.costs
are not recovered from application fees.''
1984PASSED, APPROVED and ADOPTED this 28th day of August ,
.
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF ROSEMEAD )
I, Ellen Poochigian, City Clerk of the City of Rosemead,
do hereby certify that the foregoing ordinance was duly
adopted by the City Council and signed by the Mayor of said
City at a meeting that was held on the 28th day of August
1984; and was passed by the following vote:
AYES: Councilmen Bruesch,Cleveland,Tury and Mayor Taylor
NOES:
ABSENT: Councilman Imperial
ELLEN POOCHI N, City Clerk
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