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HomeMy Public PortalAboutOrdinance 5291 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 29 30 31 32 ORDINANCE NO. 529 AN ORDINANCE OF THE CITY OF BEAUMONT, CALIFORNIA ESTABLISHING A PROCEDURE FOR THE GRANTING OF FRANCHISES FOR CABLE TELEVISION SYSTEMS The City Council of the City of Beaumont does ordain as follows: SECTION 1- Definitions. For the purpose of this ordinance, the following terms, phrases, words, abbreviations, and their derivations shall have the meaning 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: '(a) "City" shall mean the City of Beaumont, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, en- larged or re -incorporated form. (b)"Council" shall mean the governing body of the City of Beaumont or any future board constituting the legislative body of the City. (c) "Chief ADministrative Officer" Shall mean the City Manager, City Administrator, or other designation of the City's chief executive officer, or any designee thereof. (d) "Franchise" shall mean and include any authoriza- tion granted 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 trans- acting and carrying on a business within the Cit as required by other ordinances and laws of this City. f (e) "Person: shall mean any natural person and all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, and societies. (f) "Grantee" shall mean the person, firm or corpor- ation granted a franchise by the Council under this ordinance, and the lawful successor, transferee or assignee of said person, firm or corporation. (g) "Street" shall mean the surface, the air space above the surface and the area below the surface of any public street, other public right of way or public place, including public utility easements. (h) "Property of Grantee" shall mean all property own installed, or used within the City by a Grantee in the conduct of a cable television system business under the authority of a fran- chise granted pursuant to this ordinance. (i) "Subscriber" or "User" shall mean any person or entity receiving for any purpose any service of the Grantee's cable television system including, but not limited to, the conventional cable television system service of retransmission of television broadcast, radio signals, Grantee's original cablecasting, and the local government, education and public access channels; and other services, such as leasing of channels, data and facsimile trans- mission, pay television, and police, fire and similar public service communication. 1 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 29 30 31 32 (j) "Cable television system;" "CATV;" and "CTV," for the purpose of this ordinance, are terms describing a system employing antennae, microwave, wires, wave -guides, coaxial cables, or other conductors, equipment or facilities, designed, constructe or used for the purpose of: (1) collecting and amplifying local and distant broadcast television or radio signals and distri- buting and transmitting them; (2) transmitting original cablecast programming not received through television broadcast signals; (3) transmitting television pictures, film and video-tape programs, not received through broadcast television signals, whether or not en- coded or processed to permit reception by only selected receivers; (4) transmitting and receiving all other signals: digital, voice and audio-visual; provided, however that any of the services, permitted hereunder to be performed by the Grantee for subscribers, as herein defined, in the operation of a cable tele- vision or CATV system franchised by the City and not otherwise. Section 2 - Franchise to install and operate. (A) A non-exclusive franchise to install, construct, operate, and maintain a cable television system on streets within all or a specific portion of the City may be granted by the Coun- cil to any person, whether operating under an existing franchise, who or which offers to furnish and provide such system under and pursuant to the terms and provisions of this ordinance. No Provision of this ordinance may be deemed or construed as to require the granting of a franchise when in the opinion of the Council it is in the public interest to restrict the number of Grantees to one or more. (B) When and in the event that the Grantee of any franchise granted hereunder uses in his cable television system distribution channels furnished to the Grantee by a telephone company pursuant to tariff or contract on file with a regulatory body having jurisdiction and said Grantee makes no use of the streets independent of such telephone compa.nv-furnished facilities said Grantee shall be required to comply with all of the provi- sions hereof as a "Licensee" and in such event whenever the term "Grantee" is used herein 'i.t shall be deemed to mean and include "Licensee." Section 3 - Cable television service. (A) Basic service. The cable television system permitted to be installed and operated hereunder shall: (1) be operationally capable of relaying to subscriber terminals those television and radio broadcast signals for the carriage of which the Grantee is now or hereafter authorized by the Federal Communications Commission; 1 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 29 30 31 32 (2) be constructed with the potential of two-way signal transmission; (3) distribute color television signals which it receives in color; (4) provide at least one (1) channel, without charge, for the exclusive use of the City. (5) provide at least one (1) channel each for those educational and public access uses. (a) until such time as there is demand for each channel full time for its designated use, public, educational, government, and leased acces channel programming may be combined on one or more cable channels. To the extent time is avail- able therefore, access channels may also be used for other broadcast and nonbroadcast services except that at least one channel shall be main- tained exclusively for the presentation of access programing as required by paragraph (7) of this section. (b) the operator of each such system shall in any case, maintain at least one full channel for shared access programing: Provided, however, That, in the case of systems in operation on June 21, 1976, if insufficient activated channel cap- ability is available to provide one full channel for shared access programing the system operator shall provide whatever portions of channels are available for such purposes. In meeting its access obligations, every operator of a cable television system shall make reasonable efforts in programing the system's bandwidth to avoid the displacement of access service. (c) whenever any of the channels described in paragraphs (4), (5), or (5(b)) of this section is in use during 80 percent of the weekdays (Monday -Friday) for 80 percent of the time during any consecutive three-hour period for six consecutive weeks, the system operator shall have six months in which to make a new channel avail- able for the same purposes: Provided, however, That the channel expansion mandated by this para- graph shall not exceed the activated channel capability of the system. (6) the operator of each such system shall make available all other unused channels, in addition to those which are part of the system's activated channel capability, for the purposes specified in paragraph (4) and (5): Provided, however, That in making available such additional channels the system 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 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 29 30 31 32 (1) transmitting original cablecast programing not received through television broadcast signals; (2) transmitting television pictures, film and video-tape programs, not received through broad- cast television signals, 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 servi regulations adopted by the Coucnil, 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 demon- stration satisfactory to the chief administrative officer that a signal is being delivered which is of sufficient strength and quality to meet the standards set forth in the regulations of the Federal Communications Commission; (3) render efficient service, making repairs promptly and interrupting service only for good cause and for the shortest time possible. Planne interruptions, insofar as possible, shall be pre- ceded by notice given to subscribers twenty-four (24) hours in advance and shall occur during periods of minimum use of the system. (4) maintain an office in the city, which office shall be open during all the usual... business hours, with its telephone listed in directories of the telephone company serving the city, and be so operated that complaints and requests for repairs or adjustment may be received at any time, day or night, seven days a week, or provide a local telephone directory listing and "toll free" telephone service maintained on a seven-day, twenty-four (24) hour basis for the receipt of consumer complaints; (5) maintain a written record, or "log," listing date of customer complaints, identifying the sub- scriber and describing the nature of the complaint and when and what action was taken by Grantee in response thereto; said record shall be kept at Grantee's local office, for a period of five (5) years from the date of complaint, and shall be available for inspection during regular business hours without further notice or demand, by the chief administrative officer.. 1 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 29 30 31 32 (D) Municipal service. (1) With respect to the local government channel, the Grantee shall provide, at the request of the Chief Administrative officer, and upon City reim- bursement of Grantee's actual cost, use of Grantee's studio, equipment and technical service for production of live and video-tape municipal programs, subject to scheduling requirements of the Grantee; (2) With respect to the basic television services the Grantee shall provide all subscriber services, and a tie-in connection, without cost, when the system possesses such facilities and as designated by the Council, subject to the requirements of federal law to: (i) public schools and community colleges with the City, and (ii) buildings owned and controlled by the City, used for public purposes and not for resi- dential use (fire and police stations excepted.) (E) Compatibility and connectibility. (1) it is the desire of the City that all cable television systems franchised hereunder shall, insofar as financially and technically possible, be compatible one with another and with systems adjacent to the City. (2) wherever it is financially and technically feasible, the Grantee shall so construct, operate and modify the system so as to tie the same into all other systems within and adjacent to the City, (F) Uses permitted. Any franchise granted pursuant to the provisions of this ordinance shall authorize and permit the Grantee to engage in the business of operating and providing a cable television system in the City, and for that purpose to erect install, construct, repair, replace, reconstruct, maintain and re- tain in, on, over, under, upon, across and along any street, such poles, wires, cable, conductors, ducts, conduit, vaults, manholes, amplifiers, and appliances, attachments, and other property as may be necessary and appurtenant to the cable television system; and, in addition, so to use, operate, and provide similar facilities or properties rented or leased from other persons, firms or corpora- tions, including but not limited to any public utility or other Grantee franchised or permitted to do business in the City. Section 4 - Franchise Payments. (A) In consideration of the granting and exercise of a franchise to use the streets, as herein defined, for the operation of a cable television system, any Grantee shall pay to the City, during the life of the franchise three (3) percent of the franchisee's gross revenues per year from all cable services in the community except that, to the extent that the Federal Communications Commission, in its Rules and Regulations, at some time in the future allows a City to raise the franchise fee to five (5) percent absent the showings currently required by Section 76.31 of the Rules and Regulations of the Federal 1 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 29 30 31 32 Communications Commission, the City reserves the right to increase the franchise fee to a level of 5%. (B) The percentage payments shall be made in the manner, and at times directed in said franchise or in a Council resolution fixing franchise fees and adopting rules for service and rate regulation. (C) No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable under this ordinance or for the perfor- mance of any other obligation hereunder. Section - 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 fifteen (15 ) 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 granted pursuant to the provisions of this ordinance 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 any material rule or regulation of the Council or chief administrative officer validly adopted pursuant to this ordinance. (C) The Chief administrative officer may make written demand that the Grantee do or c_omply_, with any such requir ment, 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 adminstra.tive 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 terrninatior and the time and place of the meeting, notice of which shall be published by the City Clerk at least once ten (10) days before such meeting in a newspaper of general circulation within the City. (D) The Council shall consider the request of the chief administrative officer and shall hear any persons interested therein, and shall determine, in its discretion, whether or not any failure, refusal or neglect by the Grantee was with just cause. (E) If such failure, refusal or neglect by the Grantee was with just cause, the Council shall direct the Grantee to comply within such time and manner and upon such terms and con- ditions 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, be resolution, declare that the franchise of such Grantee shall be terminated and forfeited unless there be compli- ance by the Grantee within such period as the Council may fix. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 v/24 25 26 27 28 29 30 31 32 (G) The termination and forfeiture of any franchise shall in no way effect any of the rights of the City under the franchise or any provision of law. (H) In the event of any holding over after expiration of any franchise granted hereunder, without the prior consent of the City, expressed by resolution, the Grantee shall pay to the Cit reasonable compensation and damages, of not less than one hundred (100%) percent of its gross revenue during said period. Section 6 - Applications for franchise. (A) Each application for a franchise to construct, operate, or maintain any cable television systems in this City shal be filed with the City Clerk and shall contain or be accompanied by the following: (1) the name, address, and telephone number of the applicant; (2) a detailed statement of the corporate or other business entity organization of the appli- cant, including but not limited to, the followin and to whatever extent required by the City: (i) the names, residence and business addresses of all officers, directors, and assoc- iates of the applicant. (ii) the names, residence and business addresses of all officers, persons and entities having, controlling, or being entitled to have or control of 5% or more of the ownership of the applicant and the respective ownership share of each such person or entity. (iii) the names and addresses of any paren or subsidiary of the applicant, namely, any othe business entity owning or controlling applicant in whole or in part by the applicant, and a stat ment describing the nature of any such parent or subsidiary business entity, including but not limited to cable television systems owned or con trolled by the applicant, its parent and subsi- diaryand the area served thereby. (iv) a detailed description of all pre- vious experience of the applicant in providing cable television system service and in related or similar fields. (v) a detailed and complete financial statement of the applicant, prepared by a certi- fied public accountant, for the fiscal year next preceding the date of the application hereunder, or a letter or other acceptable evidence in writing from a recognized lending institution or funding source, addressed to both the applicant and the Council, setting forth the basis for a study performed by such lending institution or funding source, and a clear statement of its in- tent as a lending institution or funding source to provide whatever capital shall be required by the applicant to construct and operate the proposed system in the City,or a statement from 1 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 29 30 31 32 a certified public accountant, certifying that the applicant has available sufficient free, net and uncommitted cash resources to construct and operate the proposed system in this City. (vi) a statement identifying, by place and date, any other cable television franchise(s) awarded to the applicant, its parent or subsidi- ary; the status of said franchise(s) with respect to completion thereof; the total cost of completion of such sYtem(s); and the amount of applicant's and its parent's or subsidiary's resources committed to the completion thereof. (B) A detailed description of the proposed plan of operation of the applicant which shall include, but not be limited to the following: (1) a detailed map indicating all areas pro- posed to be served, and a proposed time schedule for the installation of all equipment necessary to become operational throughout the entire area to be served. (2) a statement or schedule setting forth all propsoed classifications of rates and charges to be made against subscribers and all rates and charges as to each of said classifications, in- cluding installation charges and service charges. (3) a detailed, informative, and referenced statement describing the actual equipment and operational standards proposed by the applicant and that such standards of operations are in compliance with those contained in Title 47, Subpart K (Section 76.601 et seq.), of the Rules and Regulations of the Federal Communications Commission. (4) a copy of the form of any agreement, under- taking , or other instrucment proposed to be entered into between the applicant and any . subscriber. (5) a detailed statement setting forth in its entirety any and all agreements and undertakings whether formal or informal, written, oral, or implied, existing or proposed to exist between the applicant and any person, firm, or corpor- ation which materially relate or pertain to or depend upon the application and the granting of the franchise. (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 Commissio providing for the use of any facilities of the public utility, including but not limited to poles, lines, or conduits. (D) Any other details, statements, information or references pertinent to the subject matter of such application which shall be required or requested by the Council, or by any provision of any other Ordinance of the City. 1 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 29 30 31 32 (E) An application fee in the sum of $2,000 (two thousand dollars), which shall be in the form of cash, certi- fied or cashier's check, or money order, to pay the costs of studying, investigating, and otherwise processing such application, and which shall be in consideration therof and not returnable or refundable in whole or in part, except to the extent that such fee exceeds the actual costs incurred by the City in studying, investi- gating and otherwise processing, the application; provided, that any applicant who shall deliver to the City Clerk a written with- drawal of or cancellation of any application hereunder, not later than the seventh (7th) day next following the day such application_ is received by the City Clerk, shall be entitled to have returned and refunded the sum of $1,500 (one thousand five hundred dollars),' less any actual costs or expenses incurred by the City by reason o such application_. (F) The Council may, by advertisement or any other means, solicit and call for applications for cable television system franchises, and may determine and fix any date upon or afte which the same shall be received by the City, or the date before which the same must be received, or the date after which the same shall not be received, and may make any other determinations and specify any other times, terms, conditions, or limitations respect -1 ing the soliciting, calling for, making and receiving of such applications. The Grantee shall pay to the City a sum of money sufficient to re- imburse it for all publication expenses incurred by it in connect- ion with the granting of a franchise pursuant to the provisions of this ordinance. Such payment shall be made within thirty (30) days after the City furnishes the Grantee with a written statement of such expense. (G) Upon receipt of any application for franchise, the Council shall refer the same to the chief administrative officer who shall prepare a report and make his recommendations respecting such application, and cause the same to be completed and filed with the Council within sixty (60) days. (H) In making any determination hereunder as to any application the Council may give due consideration to the quality of the service proposed, rates to subscriber, income to the City, experience, character, background, and financial responsi- bility of any applicant, and its management and owners, technical and performance quality of equipment, willingness and ability to meet construction and physical requirements, and to abide by policy conditions, franchise limitations and requirements, and any other considerations deemed pertinenet by the Council for safe- guarding the interests of the City and the public. The Council, in its discretion, shall determine the award of anv franchise on the, basis of such considerations and without competitive bidding. If the Council shall determine to reject such application, such determination shall be final and conclusive, and the same shall be deemed rejected. (I) If the Council shall determine to further consider the application, the following shall be done: (1) the Council shall decide and specify the terms and conditions of any franchise to be granted hereunder and as herein provided; 1 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 29 30 31 32 (2) the Council shall pass its resolution of intention to consider the granting of such a franchise, giving notice of receipt of the application, and describing the character of the franchise desired, stating the name of the proposed Grantee, the character of the franchise, the terms and conditions upon which such fran- chise is proposed to be granted, that copies of the proposed franchise may be obtained at the Office of the City Clerk, fixing and setting forth a day, hour, and place certain when and where any persons having any interest therein or objection to the granting thereof may file written protests and appear before the Council and be heard, and directing the City Clerk to publish said resolution at least once within ten (10) days of the passage thereof in a news- paper in general circulation within the City. (J) At the time set for the hearing, or at any ad- journment thereof, the Council shall proceed to hear all written protests. Thereafter, the Council shall make one of the following determinations: (1) that such franchise be denied; or (2) that such franchise be granted upon the terms and conditions as specified in the resolu- tion of intention to grant the same; or (3) that such franchise be granted, but upon the terms and conditions different from those specified in the resolution of intention to grant the same. (K) If the Council shall determine that a franchise be denied such determination shall be expressed by resolution and shall be final and conclusive. If the Council shall determine that a franchise be granted upon the terms and conditions as specified in the resolution of intent- ion to consider granting the same, such determination shall be expressed by ordinance granting a franchise to the applicant. If the Council shall determine upon granting a franchise upon terms and conditions different from those specified in the resol- ution of intention to consider granting the same, then such deter- mination shall be expressed by resolution adopted prior to grantin a franchise by ordinance. Section 7 - Deposits; bonds, indemnifications; insurance. (A) Performance deposit to City. The Grantee, shall concurrently with the filling of an acceptance of award of the franchise granted under this chapter, deposit in a financial institution selected by the City the sum of $50,000 (fifty thousand dollars) in a joint account with the grantee and the City as cosignators. This sum shall be maintained in an interest-bearing joint -account during the period of construction of the cable television system within_ the city limits, but in no event in excess of two (2) years. The return of the sum plus interest to the grantee shall be conditioned upon the faithful performance of the grantee, and upon the further condition that in the event grantee shall fail to comply with any one or more of the provisions of this Chapter or of the franchise issued to the 1 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 29 30 31 32 grantee hereunder, there shall be recoverable from this sum any damages or loss suffered by the city as a result thereof, includ- ing the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the grantee as prescribed herein which may be in default, plus a reasonable allowance for the attorney's fees and cost up to the full amount of the account. (B) Performance Bond for Subsribers. Upon being granted a franchise, and upon filing of the acceptance required under Section 8 hereof, the Grantee shall file, annually, with the City Clerk and shall thereafter during the entire term of such franchise maintain in full force and effect a corporate surety bond, or other adeauate surety agreement, in the amount as shall have been approved by the Council. The bond or agreement shall be so conditioned that in the event such Grantee shall fail to comply with any one or more of the provisions of any agreement or undertaking made between Grantee and any subscriber, then there shall be recoverable jointly and severally from the principal and surety any damages or costs suffered or incurred by any subscriber as a result thereof, including reasonable attorneys' fees and cost of any action or proceeding. Said condition shall be a continuing obligation_ during the entire term of such franchise and thereafte until Grantee shall have satisfied in full any and all obligations to any subscriber which arise out of or pertain to any such agree- ment or undertaking. (C) Hold Harmless Agreement. Grantee shall indemnify and hold harmless the City, its officers, boards, comm- issions, agents, and employees, against and from any and all claims. demands, causes of actions, actions, suits, proceedings, damages (including but not limited to damages to City property and damages arising out of copyright infringements, and damages arising out of any failure by Grantee to secure consents from the owners, author- ized distributors or licensesse of programs to be delivered by Grantee's cable television system), costs or liabilities (includ- ing costs or liabilities of the City with respect to its employees) of every kind and nature whatsoever, including but not limited to damages for injury or death or damage to person or property, and regardless of the merit of any of the same, and against all lia- bility to others, and against any loss, cost,and expense resulting or arising out of any of the same, including any attorney fees, accountant fees, expert witness or consultant fees, court costs, per diem expense, traveling and transportation expense, or other costs or expenses arising out of or pertaining to the exercise or the enjoyment of any franchise hereunder by Grantee, or the grant- ing thereof by the City. (D) Defense of Litigation. Grantee shall at the sole risk and expense of Grantee, upon demand of the City, made by and through the City Attorney, appear in and defend any and all suits, actions, or other legal proceedings, whether judicial, quasi- judicial, administrative, legislative, or otherwise, brought or instituted or had by third persons or duly constituted authorities, against or affecting the City, its officers, boards, commissions, agents, or employees, and arising out of or pertaining to the exercise or the enjoyment of such franchise or the granting thereof by the City. Grantee shall pay and satisfy and shall cause to be paid and sat- isfied any judgment, decree, order, directive, or demand rendered, made or issued against Grantee, the City, its officers, boards, commissions, agents, or employees in any of these premises; and 1 2 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 such indemnity shall exist and continue without reference to or limitation by the amount of any bond, policy of insurance, deposit, undertaking or other assurance required hereunder, or otherwise; provided, that neither Grantee nor Cityshallmake or enter into any conpromise or settlement of any claim, demand, cause of action, action, suit, or other proceeding, without first obtain- ing the written consent of the other. (E) Insurance Required. Upong being granted a franchise, and upon the filing of the acceptance required under Section 8 hereof, the Grantee shall file with the City Clerk and shall thereafter during the entire term of such franchise main- tain in full force and effect at its own cost and expense each of the following policies of insurance: (1) General Comprehensive Liability Insurance in the amount of $1,000,000 (one million dollars) together with Bodily Injury Liability Insurance in an amount not less than $1,000,.000, (one million dollars) for injuries including acciden- tal death, to any one person, and subject to the same limit for each person in an amount not less than $1,000,000. on account of any one occurence, and Property Damage Liability Insurance in an amount not less than $50,000. (fifty thousand) resulting from any one occurrence; provided, however, as follows: (i) the City shall be named as an additional insured in any of said insurance policies; and (ii) where such insurance is provided by a policy which also covers Grantee or any other entity or person, it shall contain the standard cross -liability endorsement. Section 8 - Acceptance of the Franchise. (A) No franchise granted under this ordinance shall become effective for any purpose unless and until written accept- ance thereof shall have been filed with the City Clerk. Written acceptance, which shall be in the form and substance approved by the City Attorney, shall also be and operate as an acceptance of each and every term and condition and limitation contained in this ordinance, or in such franchise, or otherwise specified as herein provided. (B) The written acceptance shall be filed by the Grantee not later than 12:01 o'clock P.M. of the fortieth (40th) day next following the effective date of the ordinance granting such franchise. (C) In default of the filing of such written accep- tance as herein required, the Grantee shall be deemed to have re- jected and repudiated the franchise. Thereafter, the acceptance of the Grantee shall not be received nor filed by the City Clerk. The Grantee shall have no rights, remedies, or redress in the premises, unless and until the Council, by resolution, shall deter- mine that such acceptance be received nor filed, and then upon such terms and conditions as the Council may impose. 1 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 29 30 31 32 (E) Time shall be of the essence of any such fran- chise granted hereunder. The Grantee shall be relieved of his obligation to comply promptly with any of the provisions of this ordinance by any failure of the City to enforce prompt compliance. (F) Any right or power in, or duty impressed upon, any officer, employee, department, or board of the City shall be subject to transfer by the City to any other officer, employee, department,or board of the City. (G) The Grantee shall have no recourse whatsoever against the City for any loss, cost, expense, or damage arising out of any provision or requirement of this ordinance or of any franchise issued hereunder or because of its enforcement. (H) The Grantee shall be subject to all requirements of City laws, rules, regulations, and specifications heretofore or hereafter enacted or established. (I) Any such franchise granted shall not relieve the Grantee of any obligations involved in obtaining pole or conduit space from any department of the City, utlity company, or from others maintaining utilities in streets. (J) Any franchise granted hereunder, shall be in lieu of any and all other rights, privileges, powers, immunities, and authorities owned, possessed, controlled, or exercisable by the Grantee, or any successor to any interest of Grantee, of or pertaining to the construction, operation, or maintenance of any cable television system in the City; and the acceptance of any franchise hereunder shall operate, as between Grantee and the City, as an abandonment of any and all of such rights, privileges, powers, immunities, and authorities within the City, to the effect that, as between Grantee and the City, and all construction, oper- ation and maintenance by any Grantee of any cable television system in the City shall be, and shall be deemed and construed in all instances and respects to be, under and pursuant to said franchise, and not hereunder or pursuant to any other right, privilege, power, immunity, or authority whatsoever. Section 10 - Rights reserved to the City. The City reserves the power to adopt and enforce requirements and regula- tions on any or all of the following matters, if and when deemed necessary and proper in the public interest in the discretion of the City Council and is consistent with Rules and Regulations of the Federal Communications Commission: (A) Procedures for the periodic fixing of reasonable rates and service charges to be charged to subscribers by the Grantee, and provisions for the enforcement thereof. (B) Operational standards pertaining to the quality of audio-visual reception by subscribers. (C) Channel capacity requirements. (D) Requirements for carriage of specified televisior signals, radio signals, and supplementary signal carriage services. (E) Requirements for the provision of equipment and channnels for local production and presentation of cablecast pro- grams, and regulations pertaining thereto. 1 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 29 30 31 32 (F) Requirements and regulations pertaining to minimum service requirements and fair business practices by the Grantee. (G) Public safety requirements pertaining to the installation and use of all CATV equipment. (H) Procedures for the investigation and resolution of all complaints by subscribers regarding Grantee's CATV opera- tions, including implementation thereof by designated City officers employees, or agents. (I) There is hereby reserved to the City every right and power which is required to be herein reserved or provided by any law and the Grantee, by its acceptance of the franchise, agrees to be bound thereby and to comply with any action or requirements of the City in its exercise of such rights or power, heretofore or hereafter enacted or established. (J) Nothing herein shall be deemed or construed to impair or affect, in any way, to any extent, the right of the City to acquire the property of the Grantee, either by purchase or through the exercise of the right or eminent domain, at a fair and just value, which shall not include any amount for the franchise itself or for any of the rights or privileges granted, and nothing herein contained shall be construed to contract away or to modify or abridge, whether for a term or in perpetuity, the City's right of eminent domain. (K) Neither the granting of any franchise nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City. (L) The Council may do all things which are necessary and convenient in the exercise of its jurisdiction under this ordi- nance and may determine any question of fact which may arise during the existence of any franchise granted hereunder. The chief administrative officer, with the approval of the City Attorney, is hereby authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of any Grantee under this ordinance, either on behalf of the City, the Grantee, or any subscriber, in the best interest of the public. Either the Grantee or any member of the public who may be dis- satisfied with the decision of the chief administrative officer may appeal the matter to the Council for hearing and determination. The Council may accept, reject or modify the decision of the chief administrative officer, and the Council may adjust, settle, or compromise any controversy or cancel any charge arising from the operations of the Grantee or from any provision of this ordi- nance. Section 11 - Council to adopt rules and regulations. (A) Standards of Operation (1) Prior to receiving any applications for franchises, the Council may adopt rules, regula- tions and standards governing the operation of cable television systems in the City. Such rules regulations and standards shall apply to and shall govern the operations of the Grantee of any franchise hereunder, and are expressly declared a part of any franchise hereunder. 1 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 29 30 31 32 (2) Rules, regulations and standards not adopted prior to receiving any application for a franchise shall be adopted by the Council at the first meeting of the Council next following the effective date of this ordinance, by resolu- tion which shall become effective upon adoption and shall be applicable to any application for a franchise previously received. (3) The standards adopted pursuant to these procedures shall be exclusively in those area not either expressly or impliedly preempted by the Federal Communications Commission at the tim adoption. (4) Provided the same do not materially alter the content of the franchise without consent of the Grantee, the Council may at any time adopt new rules or regulations or standards, or may amend, modify, delete, or otherwise change its respective rules or regulations or standards pre- viously adopted, in the following manner: The Council shall pass its resolution of intention stating or describing the rules or regulations or standards to be adopted, amended, modified, deleted, or otherwise changed, and fixing and setting forth a day, hour, and place certain when and where any persons having any interest therein or objection thereto may appear before the Council and be heard. Such resolution shall direct the City Clerk to publish the same at least once within ten (10) days of the passage thereof in a newspaper of general circulation within the City, and to mail a copy of the same to any Grantee or applicant for a franchise, not more than thirty (30) days nor less than fifteen (15) days prior to the time fixed for hearing thereon. At the time set for such hearing, or at any adjournment thereof, the Council shall proceed to hear and pass upon such comments as may be presented. Thereafter the Council, by its reso- lution, may adopt, amend, modify, delete, or otherwise change its respective rules, regulation and standards. Such determination 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 become effective upon the tenth (10th) day following the adoption of such resolution, unless a longer period shall be otherwise provided in such resolution. (B) Rates. Unless and until the City Council adopts an ordinance establishing procedures for the periodic fixing of reasonable rates pursuant to Section.10, the following limitations shall apply to the rates chargea to subscribers by Grantee: (1) No increase in rates beyond those represent- ed to a subscriber at the time of initiation of service to such subscriber shall be applied to 1 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 29 30 31 32 such subscriber for a period of not less than one year thereafter, except for such additional in- stallations or services as may be requested by such subscriber durina such period. (2) NO increase in rates shall be imposed upon subscribers except after thirty days prior notice to subscribers. (3) No charge shall be imposed upon any sub- scriber for termination of CATV service or re- moval of CATV apparatus upon termination of such service. No rate or charge of any type shall be imposed on a subscriber after receipt of notice of termination from such subscriber, unless such subscriber withdraws such notice prior to actual termination of service. (4) No charge shall be made to any subscriber by reason of the maintenance, repair, removal, or replacement of any CATV apparatus, or property of Grantee, unless the same was caused by the deliberate or negligent act of said subscriber. (5) Except as otherwise provided by paragraph (1) hereinabove, Grantee shall not charge different rates to subscribers within the same class of service, nor shall there be any differ- ence in the services or facilities or in any other respect between subscribers within the same class, except that installation charges may vary according to the costs of installation. No Grantee shall make or grant any preference to any corporation or person as to rates, charges, services, facilities, or rebates, or in any other respect, nor subject any corporation or person to any prejudice or disadvantage. Section 12 - Permits and construction. (A) Within thirty (30) days after acceptance of any franchise, the Grantee shall proceed with due diligence to obtain all necessary permits and authorizations which are required in the conduct of its business including, but not limited to, any utility joint use attachment agreements, microwave carrier licenses and any other permits, licenses and authorizations to be granted by duly constiutued regulatory agencies having juridic - tion over the operation of the cable television systems, or associated micro -wave transmission facilities. In connection therewith, copies of all petitions, applications and communications submitted by the Grantee to the Federal Communica- tions Commission, Securities and Exchange Commission, or any other federal or state regulatory commission or agency having jurisdic- tion in respect to any matters affecting Grantee's cable televi- sion operations, shall also be submitted simultaneously to the chief administrative officer. (B) Within ninety (90) days after obtaining all necessary permits, licenses and authorizations, including richt of access to poles and conduits, Grantee shall commence construc- tion and installation of the cable television system. 1 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 29 30 31 32 (C) Within one hundred eighty (180) days after the commencment of construction and installation of the system, Grantee shall proceed to render service to subscribers, and the completion of the installation and construction shall be pursued with reasonable diligence thereafter, so that service to all of th areas designated and scheduled on the map and plan of construction made part of the franchise shall be provided as set forth therein. (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 approval of the chief administrative officer. Whenever Grantee shall not utilize existing poles, conduits and other facilities, or whenever existing conduits and other facili- ties shall be located beneath the surface of the streets, or when- ever the City shall undertake a program designed to cause all conduits and other fatilit.ies 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 be- neath the surface of the streets. Any construction, 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 ex- clusively by or for Grantee in any street, provided such use by City does not interfere with the use by Grantee. (F) In_ those areas of the City where the transmission or distribution facilities of the respective public utilities providing telephone, communication and electric services are under- ground or hereafter are placed underground, the Grantee likewise shall construct, operate and maintain all of his transmission and distribution facilities underground. The term "underground" shall include a partial underground system; provided, that upon obtain- ing the written approval of the chief administrative officer, amplifiers in the Grantee's transmission and distribution lines may be placed in appropriate housings upon the surface of the around. (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 proprietary capacity, or any other structure or public improvement, including but not limited to ovement of buildings, urban renewal and redevelopment, and any general program under which the City shall undertake to cause all such properties to be located beneath the surface of the ground. he Grantee shall in all cases have the privilege, subject to the orresponding obligations, to abandon any property of Grantee in lace, as herein provided. Nothina hereunder shall be deemed a aking of the property of Grantee, and Grantee shall be entitled to o surcharge by reason of anything hereunder. 1 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 29 30 31 32 (H) Upon the failure, refusal, or neglect of Grantee to cause any work or other act required by law or hereunder to be properly completed in, on, over, or under any street within any time presecribed therefore, or upon notice given, where no time is prescribed, the chief administrative officer may cause such work or other act to be completed in whole or in part, and upon so doing shall submit to Grantee an itemized statement of the costs thereof. The Grantee shall, within thirty (30) days after receipt of such statement, pay to the City the entire amount thereof. (1) In the event that, (1) the use of any part of the system of Grantee is discontinued for any reason for a continuous period of thirty (30) days, without prior written notice to and approval by the City; or (2) any part of such system has been installed in any street or other area without complying with the requirements hereof; or (3) any franchise shall be terminated, cancell- ed, or shall expire, then the Grantee shall, at the option of the City, and at the expense of Grantee and at no expense to the City, and upon demand of the City, promptly remove from any streets or other area all property of Grantee, and Grantee shall promptly restore the street or other area from which such property has been removed to such condition as the chief administrar tive officer shall approve. The Council may, upon written application there- for by Grantee, approve the abandonment of any such property in place by Grantee and under such terms and conditions as the Council may prescribe. Upon abandonment of any such property in place, Grantee shall cause to be executed, acknowledged, and delivered to the City such instruments as the City Attorney shall prescribe and approve, transferring and conveying the ownership of such property to the City. Section 13 - Technical Standards. (A) The performance of Grantee's cable television system shall meet the technical standards as set forth in Section 76.605 or any successor section of the Federal Communication Commissions and Rules, as those standards may exist from time to time (B) Grantee shall conduct Performance tests in accord ance with the requirements of Section 76.601 or any successor section of the Federal Communication Commission's Rules, as these requirements may apply or be extended from time to time. Section 14 - Miscellaneous Provisions (A) A franchise granted to provide service within the City shall authorize and permit the Grantee to solicit, sell, 1 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 29 30 31 32 distribute, and make a charge to subscribers within the City for connection to the cable television system of Grantee, and shall also authorize and permit the Grantee to traverse any portion of the City in order to provide service outside the City. (B) A franhcise, easement, license or other permit granted to anyone other than the Grantee to traverse any portion of the City in order to provide service outside the City shall not authorize nor permit said person to solicit, sell, distribute, or make any charge to subscribers within the City nor to render any service or connect any subscriber within the City to the cable television service system of Grantee, (C) No franchise granted under this ordinance shall ever be given any value by any Court or other authority, public or private, in any proceeding of any nature or character, wherein or whereby the City shall be a party or affected therein or thereby. (D) Grantee shall be subject to all provisions of the other ordinances, rules, regulations, and specifications of the City heretofore or hereafter adopted, including but not limit- ed to those pertaining to works and activities in, on, over, under and about streets. Any privilege claimed under any franchise granted Pursuant to this ordinance in any street or other public property shall be sub- ordinate to any prior lawful occupancy of the streets or other Public property. Grantee also shall be subject to the provisions of general laws of the State of California, or as hereafter amended, when applic- able to the exercise of any privilege contained in any franchise granted under this ordinance, including but not limited to those pertaining to works and activities in and about State Highways. (E) Grantee shall be prohibited from directly or indirectly doing any of the following: (1) engaging in the business of selling at retail, leasing, renting, repairing or servicing of television sets or radios; (2) imposing a fee or charge for any service or repair to subscriber -owned receiving devices except for the 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 per- mitting 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 view- ing patterns of identifiable individual subscrib- ers to any person, group or organization for any purpose. 1 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 29 30 31 32 (F) If the Federal Communication 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 granted under this ordinance, then to the extent such jurisdiction shall preempt or preclude the exercise of like jursidiction 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 use of public rights-of-way within the City of Beaumont and that the continued use of such rights-of-way is i. 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 so,-T=cie, subscriber agrees he will make no claim nor undertake any action against the City of Beaumont, its officers, or its employees if ff the service to be provided hereunder is interrupted or discontinued." (J) The form of the Grantee's contract with the sub- scriber shall also be subject t approval of the City. Section 15- Equal opportunity employment and affirma- tive action plan. In the carrying out of construction, mainten- ance 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 appli- cants are employed, and that employees are treated during employ- ment, 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, recruit- ment or recruitment advertising, layoff or termination, rates of nay or other forms of compensation, and selection of training, including apprenticeship. The Grantee shall post in conspicuous places, available to employ- ees 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 employment without regard to race, creed, color, sex, or national origin. 1 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 29 30 31 32 The Grantee shall incorporate the foregoing requirements in all of its contracts for work relative to construction, maintenance 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 incorporate such requirements in all subcontracts for such work. Section 16 - Violations. (A) From and after the effective date of this ordi- nance, it shall be unlawful for any person to construct, install, or maintain within any public street in the City, or within any other 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 ielineated 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 signal through a cable television s_ -stem, unless a franchise authorizing such use of such street or property or area has first been obtain- ed pursuant to the provisions of this ordinance, and unless such franchise is in full force and effect. (B) It shall be unlawful for any person, firm or corporation to make or use any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a franchised cable television system within this City for the purpose of enabling himself or others to receive or use any television signal, radio signal, picture, program or sound, without payment to the owner of said system. (C) It shall be unlawful for any person, without the consent of the owner, to wilfully tamper with, remove or injure any cables, wires, or equipment used for distribution of television signals, radio signals, pictures, programs or sound. Section 17 - Severability. If any section, sub- section sentence, clause or phrase of this ordinance is for any reason held illegal, invalid or unconstitutional by the decision of any court of competent jursidiction, such decision shall not affect the validity of the remaining portions hereof. The Council hereby declares that it would have passed this ordinance and each section, sub -section, sentence, clause, and phrase hereof, irresp- ective of the fact that any one or more sections, sub -sections, sentences, clauses, or phrases be declared illegal, invalid or unconstitutional. The invalidity of any portion of this ordinance shall not abate, reduce or otherwise affect any consideration or other obligation required of the Grantee of any franchise granted hereunder. Section 18 - Repealing Ordinance 402. Ordinance 402, and all other ordinances or parts of ordinances in conflict herewith are hereby repealed. 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Section 19 - Effective Date. This ordinance shall become effective thirty (30) days from and after its passage. MOVED, PASSED AND ADOPTED this 27th day of October , 1981 by the following vote: AYES: Councilmen May, Shaw, Hammel, Lowry and Mayor Thompson NOES: None. ABSENT: None. ABSTAIN: None. / MAYOR OF THE CITY OF BEAUMONT ATTEST: CITY CLERK CERTIFICATION The foregoing is certified to be a true copy of Ordinance 529 duly adopted by the said City Council of the City of Beaumont on the date herein set forth. LL CITY CLERK, CITY OF BEAUMONe