HomeMy Public PortalAboutOrdinance 820ORDINANCE NO. 820
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF BEAUMONT, AMENDING CHAPTER 5.36 OF
THE BEAUMONT MUNICIPAL CODE
"TELECOMMUNICATIONS ORDINANCE"
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT,
RIVERSIDE COUNTY, STATE OF CALIFORNIA AS FOLLOWS:
Section 1 • Chapter 5.36, entitled "Cable Television Franchises", is hereby amended in its
entirety to read as specifically provided for in Exhibit "A", which Exhibit is attached hereto and made
a part hereof.
Section ?• This Ordinance shall take effect as provided by law.
MOVED, PASSED AND ADOPTED this 19th day of March , 2002.
CITY OF BEAUMONT
By ^�
Brian DeForg
CFR TTFTCATION
or
I, Alan C. Kapanicas, City Clerk of the City of Beaumont, do hereby certify that the foregoing
Ordinance was introduced at a regular meeting of the City Council held on 12/4/2001 , 2001,
and was duly adopted upon second reading on 3/19/02 , 8flfl, upon the following roll call
vote:
AYES: Mayor DeForge, Council Members Fox, Berg, Dressel, and Valdivia.
NOES: None.
ABSTAIN: None.
ABSENT: None.
CITY OF UMONT
ALAN
(SEAL)
Ame
• N 'AS, City Clerk
•
CHAPTER 5.36
TELECOMMUNICATIONS ORDINANCE
PART 1. GENERAL PROVISIONS
Section 5.36.100. Purpose
Section 5.36.105. Definitions
Section 5.36.110. Applicability
Section 5.36.115. Registration
Section 5.36.120. Use of Public Property
Section 5.36.125. Location of Facilities
Section 5.36.130. Relocation or Removal of Facilities
Section 5.36.135. Damage to Facilities
Section 5.36.140. Restoration of Property
Section 5.36.145. Indemnification
Section 5.36.150. Compliance with Zoning
Section 5.36.155. Waiver of Provisions
Section 5.36.160. Franchises
Section 5.36.165. Violations
Section 5.36.170. Severability
PART 2. CABLE TELEVISION
Section 5.36.200. Franchising Procedures
Section 5.36.205. Franchise Required
Section 5.36.210. Granting
Section 5.36.212. Multiple Franchises
Section 5.36.215. Term of Franchise
Section 5.36.220. Franchise Applications
Section 5.36.225. Application Fee
Section 5.36.227. Contents of Cable TV Franchise Agreements
Section 5.36.230. New Franchise Procedure
Section 5.36.235. Franchise Renewal Procedure
Section 5.36.240. Transfer of Ownership
Section 5.36.245. Unauthorized Operation of Cable System
Section 5.36.250. Annexations
Section 5.36.255. Joint Exercise of Powers Agreement
Section 5.36.260. Reservation of Rights
Section 5.36.265. Consumer Protection and Service Standards
Section 5.36.300. City Regulation of Franchise
Section 5.36.305. Administration
Section 5.36.310. Cable Programming
Section 5.36.315. Basic Service
Section 5.36.320. Required Channel Capacity
DRAFT 2/28/02
(Incorporates Adelphia's
Comments)
Section 5.36.325. Performance Evaluation Sessions
Section 5.36.330. Integration of Advancements in Technology
Section 5.36.335. Cable Service to Public Buildings Occupied by Public Agencies
Section 5.36.340. PEG Channels
Section 5.36.345. PEG Facilities
Section 5.36.350. Public Access Usage Management
Section 5.36.355. Interconnection
Section 5.36.360. Emergency Override
Section 5.36.365. Tree Trimming
Section 5.36.370. Removal and Abandonment of Cable System
Section 5.36.375. Acquisition of Cable System
Section 5.36.400. Customer Service
Section 5.36.405. Continuity of Service
Section 5.36.410. Non-discriminatory Services
Section 5.36.415. Local Office
Section 5.36.420. Line Extensions
Section 5.36.425. New Service Requests
Section 5.36.430. System or Individual Outage Complaints
Section 5.36.435. Scheduling Appointments
Section 5.36.440. Notification of Service Interruptions
Section 5.36.445. Notification of Service or Channel Changes
Section 5.36.450. Telephone Communication Services
Section 5.36.455. Complaint Log
Section 5.36.460. Subscriber Test Requests
Section 5.36.465. Conditions of Service -Subscriber Information
Section 5.36.470. Complaints -Subscriber Information
Section 5.36.475. Investigation of Complaints
Section 5.36.480. Non -Compliance with Standards
Section 5.36.485. Billing, Late Fees, Disconnection of Service and Notification of Rate Changes
Section 5.36.487. Credits for Outages
Section 5.36.489. Refund of Deposits
Section 5.36.491. Parental Control Lock
Section 5.36.493. Privacy
Section 5.36.495. Landlord/Tenant
Section 5.36.497. Unauthorized Connections and Tampering
Section 5.36.500. Construction and Technical Standards
Section 5.36.505. Construction Requirements
Section 5.36.510. Standards
Section 5.36.600. Administration and Enforcement
Section 5.36.605. Franchise Fees
Section 5.36.610. Compensation Relating to Non -Cable Telecommunications Services
Section 5.36.615. Fees on Non -Cable Operator Revenues
Section 5.36.620. Audit
2
Section 5.36.625. Late Payments
Section 5.36.630. Inspection of Records
Section 5.36.635. Location of Cable Operator's Properties
Section 5.36.640. Insurance
Section 5.36.645. Indemnification
Section 5.36.650. Letter of Credit
Section 5.36.655. Possessory Interest
Section 5.36.700. Enforcement of Federal Rate Regulations
Section 5.36. 705. Effectiveness
Section 5.36. 710. Rate Increases
Section 5.36. 715. Auditor's Opinion
Section 5.36. 720. Time for Action
Section 5.36. 725. Determination by City Manager
Section 5.36. 730. Determination by City Council
Section 5.36. 735. Appeals
Section 5.36. 740. Complaints Concerning Premium Service Rates
PART 3. OPEN VIDEO SYSTEMS
Section 5.36.750. Prerequisites to Operating an Open Video System
Section 5.36.755. Public, Educational and Governmental Access
Section 5.36.760. Fees
Section 5.36.765. Compensation Relating to Non -Cable Telecommunications Services
Section 5.36.770. Fees on Non -Open Video System Operator Revenues
Section 5.36.775. Audit
Section 5.36.780. Late Payments
PART 4. TELEPHONE COMPANIES
Section 5.36.800. Telephone Companies
PART 5. WIRELESS TELECOMMUNICATIONS SYSTEM OPERATORS
Section 5.36.850. Wireless Telecommunications System Operators
PART 6. OTHER TELECOMMUNICATIONS SYSTEM OPERATORS
Section 5.36.900. Other Telecommunications System Operators
TELECOMMUNICATIONS ORDINANCE
PART 1. GENERAL PROVISIONS
Section 5.36.100. Purpose. The purpose of this ordinance is to promote competition in the
telecommunications industry, facilitate the development of telecommunications infrastructure,
minimize aesthetic impacts and damage to public property, provide for the payment of reasonable
compensation for the commercial use of public property, and establish customer service standards.
Section 5.36.105. Definitions. All of the following definitions shall be construed liberally for the
purpose of maximizing the scope of this ordinance.
a. Basic Service means any service tier which includes the retransmission of local
television broadcast signals.
b. Cable Operator means any person or group of persons (A) who provides cable
service over a Cable System and directly or through one or more affiliates owns a significant interest
in such Cable System, or (B) who otherwise controls or is responsible for, through any arrangement,
the management and operation of such a Cable System.
c. Cable Programming Service means any video programming provided over a Cable
System regardless of service tier, including installation or rental of equipment used for the receipt of
such video programming, other than: (1) Video programming carried on the Basic Service tier; (2)
Video programming offered on a pay -per -channel or pay -per -program basis; or (3) A combination of
multiple channels of pay -per -channel or pay -per -program video programming offered on a
multiplexed or time -shifted basis, so long as the combined service consists of commonly -identified
video programming and is not bundled with any regulated tier of service.
d. Cable Service means (A) the one-way transmission to subscribers of (i) video
programming, or (ii) other programming service, and (B) subscriber interaction, if any, which is
required for the selection of such video programming or other programming service.
e. Cable System means a facility within the City, consisting of a set of closed
transmission paths and associated signal generation, reception, and control equipment that is designed
to provide cable service which includes video programming and which is provided to multiple
subscribers within a community, but such term does not include (A) a facility that serves only to
retransmit the television signals of 1 or more television broadcast stations; (B) a facility that serves
only subscribers in 1 or more multiple unit dwellings under common ownership, control, or
management, unless such facility or facilities uses any public right -of- way; (C) a facility of a
common carrier which is considered a Cable System under federal law; or (D) any facilities of any
electric utility used solely for operating its electric utility system.
f. Gross Revenues means the revenue derived by a Cable Operator from the operation
of the Cable System to provide cable service. -Gross Revenues includes, but is not limited to, revenue
from (1) subscriber payments for service, equipment, late fees, franchise fees and other charges; (2)
advertising carried on the Cable System or in subscriber bills; and (3) programmers or others relating
4
to transmissions carried on the Cable System, including but not limited to payments to carry
programming and home shopping revenues. Gross Revenues includes, but is not limited to, all gross
revenue whether or not actually received. Gross Revenues shall include all gross revenue which is not
actually received, such as the value of free service provided to Cable Operator's employees and the
value of services bartered or exchanged for non -monetary consideration. Gross Revenues includes,
but is not limited to, revenues derived from the operation of the Cable System received or attributed
to the franchisee, any direct or indirect affiliate of the franchisee or any partner, joint venturer or
other entity related in any similar way to franchisee. Gross Revenues includes revenues derived from
the provision of intemet access, cable modems and similar services, unless specifically excluded by
federal law. Nothing shall be excluded from Gross Revenues for any reason, including but not limited
to the fact that the Cable Operator may itemize particular items on subscriber bills such as franchise
fees. This definition shall be deemed to include all gross receipts and revenues to the full extent
permitted by federal law.
g. Gross Non -Cable Revenues means the revenue derived from the operation of
Telecommunications Facilities other than revenue defined in this section as Gross Revenue. Gross
Non -Cable Revenues includes, but is not limited to, revenue from (1) subscriber payments for
service, equipment, late fees, franchise fees and other charges; (2) advertising carried on the
Telecommunications Facilities or in subscriber bills; and (3) programmers or others relating to
transmissions carried on the Telecommunications Facilities, including but not limited to payments to
carry programming and home shopping revenues. Gross Non -Cable Revenues includes, but is not
limited to, all gross revenue whether or not actually received. Gross Non -Cable Revenues shall
include all gross revenue which is not actually received, such as the value of free service provided to
Telecommunications Operator's employees and the value of services bartered or exchanged for non -
monetary consideration. Gross Non -Cable Revenues includes, but is not limited to, revenues derived
from the operation of the Telecommunications Facilities received or attributed to the franchisee, any
direct or indirect affiliate of the franchisee or any partner, joint venturer or other entity related in any
similar way to franchisee. Gross Non -Cable Revenues includes revenues derived from the provision
of internet access, cable modems and similar services, unless a Cable Operator has paid a cable
television franchise fee based on the identical revenues. This definition shall be deemed to include all
gross receipts or revenues to the full extent permitted by federal law.
h. Other Telecommunications Operator means any person or group of persons other
than a Cable Operator, an Open Video System Operator, a Wireless Telecommunications Operator or
a Telephone Company (A) who provides Telecommunications Services over Telecommunications
Facilities and directly or through one or more affiliates owns a significant interest in such
Telecommunications Facilities, or (B) who otherwise controls or is responsible for, through any
arrangement, the management and operation of such Telecommunications Facilities.
i. Open Video System means a system within the City for the provision of video
programming operated in compliance with Federal Communications Commission regulations.
j. Open Video System Operator means any person or group of persons who have been
certified by the Federal Communications Commission as an Open Video System Operator for an
Open Video System located within the City and (A) who provides video programming over the Open
Video System and directly or through one or more affiliates owns a significant interest in such Open
5
Video System, or (B) who otherwise controls or is responsible for, through any arrangement, the
management and operation of such an Open Video System.
k. Telecommunications Operator means any person or group of persons (A) who
provides Telecommunications Services over Telecommunications Facilities and directly or through
one or more affiliates owns a significant interest in such Telecommunications Facilities, or (B) who
otherwise controls or is responsible for, through any arrangement, the management and operation of
such Telecommunications Facilities.
1. Telecommunications Services means the transmission of voice, video, data or other
information between two or more points along wires, optical fibers or other transmission media, or
using radio waves or other wireless media, including but not limited to cable television services,
telephone services, cellular telephone services, personal communications services, internet services,
open video system services and other similar services.
m. Telecommunications Facilities means facilities within the City used or related to the
provision of Telecommunications Services including, but not limited to, wires, optical fiber, antenna,
cabinets, pedestals and equipment.
n. Telephone Company means any telephone or telegraph corporation as defined by
Sections 234-236 of the Public Utilities Code (or any successor sections) which has obtained a
certificate of public convenience and necessity from the California Public Utilities Commission.
o. Wireless Telecommunications Operator means any person or group of persons who
provides wireless telecommunications services including, but not limited to, cellular telephone,
personal communications system, spread spectrum or other wireless services, and (A) who provides
Telecommunications Services over Telecommunications Facilities and directly or through one or
more affiliates owns a significant interest in such Telecommunications Facilities, or (B) who
otherwise controls or is responsible for, through any arrangement, the management and operation of
such Telecommunications Facilities;
Section 5.36.110. Applicability. All Telecommunications Operators shall comply with all provisions
of this Section (General Provisions) and all other applicable provisions of this Code. In addition, all
Cable Operators shall comply with Sections 5.36.200 through 5.36.740 below; all Open Video
System Operators shall comply with Sections 5.36.750 through 5.36.785 below; all Telephone
Companies shall comply with Section 5.36.800 below; all Wireless Telecommunications Operators
shall comply with Section 5.36.850 below; and all other Telecommunications Operators shall comply
with Section 5.36.900 below. All Telecommunications Operators which provide services that fall
within more than one of the foregoing categories shall comply with each and every applicable section
of this Code.
Section 5.36.115. Registration. All Telecommunications Operators who own or lease any
Telecommunications Facilities located in the public right-of-way (excluding Telecommunications
Operators who merely purchase bandwidth on facilities owned by others) shall register with the City
on forms provided by the Planning Department. These forms shall include, but not be limited to, the
following:
6
1. The name and legalstatus of the registrant, including any affiliates who are
required to register pursuant to this section;
2. The name, address and telephone number of an officer, agent or employee who
will serve as the contact point for the registrant;
3. A description of the registrant's existing or proposed Telecommunications
Facilities that are owned or will be used within the City, together with a list of any other
Telecommunications Operators who will be using those Telecommunications Facilities;
4. A description of the Telecommunications Services that the registrant is or will
be offering using Telecommunications Facilities within the City;
5. A copy of the registrant's applicable Certificate of Public Convenience and
Necessity, if any, issued by the California Public Utilities Commission.
6. A registration fee in the amount established by the City Council.
Section 5.36.120. Use of Public Property. Encroachment Permit. Prior to excavating, installing
Telecommunications Facilities upon (including but not limited to placing Telecommunications
Facilities within existing conduit), or otherwise using City -owned property for any purpose that
requires an encroachment permit under the City's encroachment permit ordinance, a
Telecommunications Operator shall obtain an encroachment permit pursuant to this Code and comply
with all other applicable requirements of those sections. The encroachment permit application shall
also include a description of any surplus conduit that the applicant intends to install and the capacity
of the Telecommunications Facilities being installed. If the Telecommunications Operator is
proposing to install Telecommunications Facilities without utilizing existing surplus conduit, the
Telecommunications Operator shall submit a description of all existing surplus conduit along the
proposed route together with an explanation of why that existing surplus conduit is not being utilized.
In such a situation, the Telecommunications Operator shall also submit evidence that it has contacted
all other Telecommunications Operators who are reasonably likely to be installing
Telecommunications Facilities along all or part of the same route and has offered to participate in a
joint installation project on reasonable terms. In such a situation where, in addition, the
Telecommunications Operator proposes to install overhead Telecommunications Facilities, the
Telecommunications Operator shall submit evidence that it has offered to participate on reasonable
terms together with other entities utilizing the utility poles to install the Telecommunications
Facilities and other facilities underground. If the Telecommunications Operator proposes to install
utility cabinets or other above -ground facilities, the Telecommunications Operator shall include
information about noise generated by the facilities and alternatives for reducing the aesthetic impacts
of the facilities, including but not limitedto size reductions, screening, alternative locations and
undergrounding. The Planning Department may deny the encroachment permit for failure to comply
with the foregoing or any other lawful reason. The Planning Department may also attach any
reasonable conditions to the encroachment permit, including but not limited to requiring some or all
Telecommunications Facilities to be placed underground, requiring boring rather than trenching,
specifying a future time period when all excavations must take place, specifying the location where
7
facilities may be installed, requiring trenches to remain open for a reasonable period of time to permit
installation of facilities by the City or its designees, and requiring the installation of surplus conduits
and dedication of such conduits to the City subject to the payment of the direct marginal cost of
installing such surplus conduits by the City .
Section 5.36.125. Location of Facilities. All Telecommunications Facilities shall be installed within
existing underground ducts or conduits whenever excess capacity is available on reasonable terms.
Overhead facilities may be installed only if space is available on existing utility poles.
Whenever existing Telecommunications Facilities or electric utility facilities are located underground
along a particular street or public way, new Telecommunications Facilities must be installed
underground along that street or public way.
Whenever any new or existing Telecommunications Facilities or electric utility lines are located or
relocated underground along a particular street or public way, the Telecommunications Operator shall
relocate its Telecommunications Facilities underground concurrently with the other lines at its sole
expense to the full extent permitted by law.
Whenever new Telecommunications Facilities will exhaust the capacity of a street or otherwise make
the installation of future Telecommunications Facilities impractical, the Telecommunications
Operator installing the new Telecommunications Facilities shall provide additional ducts, conduits,
manholes and other facilities designated by the Planning Department for reasonable
nondiscriminatory access by other Telecommunications Operators.
Section 5.36.130. Relocation or Removal of Facilities. Within thirty (30) days following written
notice from the City, a Telecommunications Operator shall relocate or remove, without expense to
the City, any facilities installed, used and/or maintained by such Telecommunications Operator if and
when such relocation or removal is reasonably necessary or convenient for the construction, repair,
maintenance or installation of any City or other public improvement, or for any lawful change of
grade, alignment, or width of any public street, way, alley, or place, including the construction of any
subway or viaduct, by or on behalf of the City, irrespective of the funding source, or if the facilities
have been abandoned or have not been used for a period of ninety (90) days.
Section 5.36.135. Damage to Facilities. Unless directly and proximately caused by the willful acts
of the City, the City and its officials, employees, agents and volunteers shall not be liable for any
damage to or loss of any Telecommunications Facilities as a result of or in connection with any
public works or any other acts of the City or its officials, employees, agents or volunteers.
Section 5.36.140. Restoration of Property. When a Telecommunications Operator or any person
acting on its behalf does any work in or affecting any public property, the Cable Operator shall, at its
sole expense, promptly remove any unauthorized obstructions therefrom and restore such property to
as good a condition as existed before the work was undertaken, unless otherwise directed by the City.
Section 5.36.145. Indemnification. A Telecommunications Operator shall indemnify, defend and
hold harmless the City and its officers, employees, agents and volunteers from and against any and all
8
liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of
every nature arising from the operations of, or the use of public property by, the Telecommunications
Operator or its officers, employees, agents or contractors, except such loss or damage which was
caused by the sole negligence or willful misconduct of the City.
Section 5.36.150. Compliance with Zoning. All Telecommunications Facilities shall comply with all
applicable requirements of this Code, including but not limited to zoning requirements and building
code requirements.
Section 5.36.155. Waiver of Provisions. The City Council may waive any provision of this Code to
the extent permitted by law in exchange for exceptional public benefits provided by a
Telecommunications Operator.
Section 5.36.160. Franchises. Any person required to obtain a franchise pursuant to this Code shall,
in addition to all other requirements, reimburse the City for all of its costs, including but not limited
to all costs of retaining consultants, related to the franchise.
Section 5.36.165. Violations.
a. Civil Action. The City may initiate a civil action in any court of competent
jurisdiction to enjoin any violation of this Chapter.
b. Termination or Modification of Agreements. If any person breaches any franchise
agreement or other agreement made pursuant to this Chapter, the City may, following reasonable
notice, opportunity to cure and opportunity to be heard, terminate the agreement or reduce the term of
the agreement.
9
c. Cumulative Remedies. The foregoing remedies shall be deemed non-exclusive,
cumulative remedies and in addition to any other remedy the City may have at law or in equity.
Section 5.36.170. Severability. If any provision of this Chapter is determined by any court of
competent jurisdiction, or by any federal or state agency having jurisdiction over its subject matter, to
be invalid and in conflict with any paramount federal or state law or regulation now or hereafter in
effect, or is determined by that court or agency to require modification in order to conform to the
requirements of that paramount law or regulation, then that provision will be deemed a separate,
distinct, and independent part of this Chapter, and such determination will not affect the validity and
enforceability of any other provisions. If that paramount federal or state law or regulation is
subsequently repealed or amended so that the provision of this Chapter determined to be invalid or
subject to modification is no longer in conflict with that law or regulation, then that provision will
again become effective and will thereafter be binding on the City and any affected video or
telecommunications service provider; provided, however, that the City must give the affected video
or telecommunications service provider 30 days written notice of that change before requiring
compliance with that provision, or such longer period of time as may reasonably be required for the
video or telecommunications service provider to comply with that provision.
PART 2. CABLE TELEVISION
Section 5.36.200. Franchising Procedures.
Section 5.36.205. Franchise Required. No person shall establish, construct, operate, or maintain
within this City a Cable System unless a franchise has been obtained pursuant to the provisions of
this division, and unless such franchise is in full force and effect.
Section 5.36.210. Granting. The City Council may grant one or more nonexclusive revocable
franchises to establish, construct, operate and maintain Cable Systems within the City. A franchise
shall be effective only upon execution of a Franchise Agreement between the City and a Cable
Operator and compliance with all requirements of this Code. The franchises shall be subject to the
provisions of this Code as they may be amended from time to time.
Section 5.36.212. Multiple Franchises.
a. The City may grant any number of franchises, subject to applicable state and federal
law. The City may limit the number of franchises granted, based upon, but not necessarily limited to,
the requirements of applicable law and specific local considerations, such as:
1. The capacity of the public rights-of-way to accommodate multiple cables in
addition to the cables, conduits, and pipes of the existing utility systems, such as electrical power,
telephone gas, and sewerage.
2. The benefits that may accrue to subscribers as a result of cable system
competition, such as lower rates and improved service.
10
3. The disadvantages that may result from cable system competition, such as the
requirement for multiple pedestals on residents, property, and the disruption arising from numerous
excavations within the public rights-of-way.
b. The City may require that any new Cable Operator be responsible for its own
underground trenching and the associated costs if, in the City's opinion, the rights-of-way in any
particular area cannot reasonably accommodate additional cables.
Section 5.36.215. Term of Franchise. A franchise shall be granted for 10 years or such other period
as may be specified in the Franchise Agreement.
Section 5.36.220. Franchise Applications. All applicants for a new franchise, a franchise renewal or
a franchise transfer shall submit a written application to the City. All applicants shall be expected to
offer to subscribers a modern, efficient, cost -effective system that will facilitate quality maintenance,
deliver a variety of programming and services, and provide the flexibility needed to adjust to
changing technology and new developments in the industry. Applicants are encouraged to formulate
their proposals in an innovative fashion, so as to meet the informational requirements of the City and
the service needs of subscribers. Proposals shall contain sufficient material to enable the City Council
to make fully informed judgments concerning the adequacy of the proposal and the applicant's
qualifications to construct, operate and maintain a Cable System in the City. All applicants shall, at a
minimum, provide the following information unless waived by the City Manager:
(1) The identity of the franchise applicant, including all affiliates of the applicant.
(2) A description of the cable services that are or will be offered or provided by the
franchise applicant over its existing or proposed facilities.
(3) A description of the transmission medium that will be used by the Cable Operator to
offer or provide such cable services.
(4) Preliminary engineering plans, specifications and a network map of the facilities to be
located within the City, all in sufficient detail to identify:
(a) The location and route requested for applicant' s proposed cable facilities.
(b) The location of all overhead and underground public utility,
telecommunication, cable, water, sewer drainage and other facilities in the public way along the
proposed route.
(c) The location(s), if any, for interconnection with the cable facilities of other
cable carriers.
(d) The specific trees, structures, improvements, facilities and obstructions, if any,
that applicant proposes to temporarily or permanently remove or relocate.
11
(5) If applicant is proposing to install overhead facilities, evidence that surplus space is
available for locating its cable facilities on existing utility poles along the proposed route.
(6) If applicant is proposing an underground installation in existing ducts or conduits
within the public ways, information in sufficient detail to identify:
(a) the excess capacity currently available in such ducts or conduits before
installation of applicant's cable facilities;
(b) the excess capacity, if any, that will exist in such ducts or conduits after
installation of applicant's cable facilities.
(7)
A preliminary construction schedule and completion dates.
(8) Financial statements prepared in accordance with generally accepted accounting
principles by a Certified public accountant or other accountant satisfactory to the City demonstrating
the applicant's financial ability to construct, operate, maintain, relocate and remove the facilities. If in
the normal course of its business, the applicant does not prepare a separate financial statement for the
franchised system, the applicant may submit a combined financial statement for the local region,
which statement shall include the franchised system.
(9) Information in sufficient detail to establish the applicant's technical qualifications,
experience and expertise regarding the cable facilities and services described in the application.
(10) Information to establish that the applicant has obtained all other governmental
approvals and permits to construct and operate the facilities and to offer or provide the cable services.
(11) A detailed description of all. Telecommunications Services that the applicant intends to
provide and sufficient information to determine whether such services are subject to franchising.
(12) An accurate map showing the location of any existing cables facilities in the City that
applicant intends to use or lease.
(13) A description of the services or facilities that the applicant will offer or make available
to the City and other public, educational and governmental institutions.
(14) A description of applicant's access and line extension policies.
(15) The area or areas of the City the applicant desires to serve and a schedule for build -out
to the entire franchise area.
(16) The number of activated, programmed channels that the applicant intends to provide to
together with the programming that the applicant intends to provide.
(17) All fees, deposits or charges required pursuant to Sections 5.36.160, 5.36.225 and the
City's Planning and Building Departments..
12
(18) Such other and further information as may be requested by the City Manager.
If a franchise is granted to a person, firm or corporation posing as a front or as the representative of
another person, firm or corporation, and such information is not disclosed in the original application,
such franchise shall be deemed void and of no force and effect whatsoever.
Section 5.36.225. Application Fee.
a. An application fee for a new, renewal or transfer of franchise shall be required in the
amount established from time to time by resolution of the City Council.
b. The purpose of the application fee is to pay the cost of studying, investigating and
otherwise processing such application, which shall be in consideration thereof and not returnable or
refundable in whole or in part. Application fees are over and above construction inspection and
permit fees. Application fees shall include, but not be limited to, all costs incurred in assessing
community needs, conducting public meetings, and renewing applications and negotiating franchise
agreements, including consultant and attorney fees.
Section 5.36.227. Contents of Cable Television Franchise Agreements.
a. The terms and provisions of a franchise agreement for the provision of cable television
and related telecommunications services may relate to or include, without limitation, the following
subject matters:
1. The nature, scope, geographical area, and duration of the franchise.
2. The applicable franchise fee to be paid to the City, including the amount, the
method of computation, and the time for payment.
3. Requirements relating to compliance with and implementation of state and
federal laws and regulations pertaining to the operation of the cable television system.
4. Requirements relating to the construction, upgrade, or rebuild of the cable
television system, as well as the provision of special services, such as outlets for public buildings,
emergency alert capability, and parental control devices.
5. Requirements relating to the maintenance of a performance bond, a security
fund, a letter of credit, or similar assurances to secure the performance of the Cable Operator's
obligations under the franchise agreement.
6. Requirements relating to comprehensive liability insurance, workers'
compensation insurance, and indemnification.
7. Requirements relating to consumer protection and customer service standards.
13
8. Requirements relating to the Cable Operator's support of local cable usage,
including the provision of public, educational, and governmental access channels, the coverage of
public meetings and special events, and financial support for public, educational, and governmental
access channels.
9. Requirements relating to the Cable Operator's agreement (if any) to provide an
institutional network, and channel capacity on that institutional network for educational or
governmental use, subject to the City's rules and procedures for the use of such channel capacity and
for compatibility with any telecommunications network that has been or may be developed by the
City.
10. Requirements relating to construction, operation, and maintenance of the cable
television system within the public rights-of-way, including compliance with all applicable building
codes and permit requirements of the City, the abandonment, removal, or relocation of facilities, and
compliance with FCC technical standards.
11. Requirements relating to recordkeeping, accounting procedures, reporting,
periodic audits, and performance reviews, and the inspection of Grantee's books and records.
12. Acts or omissions constituting material breaches of or defaults under the
franchise agreement, and the applicable penalties or remedies for such breaches or defaults, including
fines, penalties, liquidated damages, suspension, revocation, and termination.
13. Requirements relating to the sale, assignment, or other transfer or change in
control of the franchise.
14. The Cable Operator's obligation to maintain continuity of service and to
authorize, under certain specified circumstances, the City's operation and management of the cable
system.
15. Such additional requirements, conditions, policies, and procedures as may be
mutually agreed upon by the parties to the franchise agreement and that will, in the judgment of City
staff and the City Council, best serve the public interest and protect the public health, welfare, and
safety.
b. This Telecommunications Ordinance shall be incorporated into each franchise
agreement by reference, as though set forth in full; provided, however, that if there is any conflict or
inconsistency between the provisions of a :franchise agreement authorized by the City Council and
provisions of this Chapter, the provisions of the franchise agreement will control.
Section 5.36.230. New Franchise Procedure. Upon receipt of an application for a new franchise, the
City Council may, by resolution, approve or conditionally approve a franchise agreement with the
applicant or deny the application. In making any determination hereunder as to any application, the
City Council shall give due consideration to: the quality of the service proposed; rates to subscribers;
experience, character, background and financial responsibility of the applicant, its management and
owners; system design; technical and performance quality of equipment; willingness and ability to
14
meet construction requirements to and abide by franchise limitations and requirements; and other
considerations deemed pertinent by the City Council for safeguarding the interests of the City and the
public.
Section 5.36.235. Franchise Renewal Procedure.
a. During the 6 -month period which begins with the 36th month before the franchise
expiration, a proceeding to consider the renewal of a franchise shall be commenced either upon
receipt of a written notice from the Cable Operator requesting such a proceeding, or upon the City's
own initiative. If the City receives such a notice from the Cable Operator, it shall commence the
proceeding within 6 months of receipt. This proceeding shall be for the purpose of, among other
thing, identifying the future cable -related community needs and interests, and reviewing the
performance of the Cable Operator under the franchise during the then current franchise term. The
proceeding shall include, without limitation, a review of the foregoing matters by City staff and at
least one noticed public meeting. The proceeding shall not be deemed complete until the review has
been completed and the City has given the Cable Operator written notice of Cable System and service
features necessary to meet future cable -related community needs and interests, and of information
that must be included in a proposal for a renewal, and of a deadline for submission of a renewal
proposal.
b. Upon completion of the proceeding described in subsection (a) above, the Cable
Operator may submit a proposal for renewal. Any such proposal shall include the matters described
in Section 5.36.220 above and subsection (a) above.
c. Upon receipt of a renewal proposal pursuant to subsection (b) above, the City shall
provide prompt public notice of the proposal. Within four months after receipt of the proposal, the
City shall either (1) renew the franchise or renew the franchise subject to conditions by adoption of a
City Council resolution approving a franchise agreement; or (2) issue a preliminary assessment that
the franchise should not be renewed and, at the request of the operator or on its own initiative,
commence an administrative proceeding concerning the renewal.
d. Any administrative proceeding pursuant to subsection (c)(2) shall consider whether:
(1) the Cable Operator has substantially complied with the material terms of the
existing franchise and with applicable law;
(2) the quality of the operator's service, including but not limited to signal quality,
response to consumer complaints, and billing practices, but without regard to the mix or quality of
cable services or other services provided over the system, has been reasonable in light of community
needs;
(3) the operator has the financial, legal, and technical ability to provide the
services, facilities, and equipment as set forth in the operator's proposal; and
(4) the operator's proposal is reasonable to meet the future cable -related
community needs and interests, taking into account the cost of meeting such needs and interests.
15
The Cable Operator shall be given at least thirty (30) days advance notice of the
administrative proceeding. The Cable Operator shall be afforded fair opportunity for full
participation, including the right to introduce evidence, to require the production of evidence and to
question witnesses. A transcript shall be made of the proceeding. At the completion of the
proceeding, the City shall issue a written decision, with the reasons therefor, granting, conditionally
granting or denying the proposal for renewal based upon the record of the proceeding. The City shall
transmit a copy of the decision to the Cable Operator. Any denial of a proposal for renewal made in
compliance with subsection (b) above shall be based on one or more adverse finding made with
respect to the factors described in this subsection. A denial may not be based on any violation of the
franchise or any events described in subsection (d)(2) above which occurred after 1984 unless the
City provided the Cable Operator with notice and the opportunity to cure, or in any case in which it is
documented that the City waived its right to object, or the Cable Operator gave written notice of a
failure or inability to cure and the City failed to object within a reasonable time after receipt of such
notice.
e. The City and a Cable Operator may agree to waive the provisions of subsections (a)
through (d). If the City and a Cable Operator agree to such a waiver, the Cable Operator may submit
a proposal for the renewal of a franchise pursuant to this subsection at any time, and the City may,
after affording the public adequate notice and opportunity for comment, renew the franchise or renew
the franchise subject to conditions by adoption of a City Council resolution approving or
conditionally approving a franchise agreement, or deny the franchise renewal. The provisions of
subsection (a) through (d) above shall not apply to a decision to grant or deny a renewal pursuant to
this subsection. The denial of a renewal pursuant to this subsection shall not affect action on a
renewal proposal that is submitted in accordance with subsections (a) through (d) above.
f. The provisions of subsections (a) through (d) above are intended to reflect federal law
and may be modified to conform to any changes in federal law.
Section 5.36.240. Transfer of Ownership.
(1) A franchise is a privilege to be held in personal trust by the original Cable Operator. A
Cable Operator shall not sell, transfer, lease, dispose of or assign this franchise or any rights
thereunder, including any beneficial interest or right to operate thereunder, by voluntary sale, merger,
consolidation, or otherwise, or by operation of law, without the prior approval of the City Council.
(2) If a Cable Operator is a partnership or a corporation, prior approval of the City
Council is also required when there is an actual change in control of the Cable Operator. A change in
control shall be deemed to include, but not be limited to, the following: (a) in the case of a
partnership, the general partner changes, (b) ownership of twenty percent or more of its voting stock
or the voting stock of any parent or affiliate which directly or indirectly through other affiliates owns
twenty percent or more of the Cable Operator's voting stock is to be acquired by a person or group of
persons acting in concert. The word "control" as used in this Section is not limited to major
stockholders but includes de facto control or significant influence with respect to the operation of the
Cable Operator's Cable System. For purposes of this Section, "significant influence" occurs where a
person other than the Cable Operator or a person controlling controlled by or under common control
16
with the Cable Operator or exercises working or effective control of decisions affecting the operation
of the Cable System.
(3) The consent of the City Council is not required for transfer of the franchise to a
wholly-owned subsidiary of the Cable Operator or to any person controlling, controlled by or under
common control with the Cable Operator providing any such person agrees in writing to be bound by
the existing franchise and provides bonds and insurance acceptable to the City. The City shall
continue to regard the Cable Operator and its transferee as a single entity for all purposes.
(4) A Cable Operator's execution of a deed of trust, mortgage or other instrument given
merely to secure the payment of any indebtedness of a Cable Operator shall not constitute a transfer
under this division and shall not require the consent of the City Council
(5) Upon foreclosure or other judicial sale of all or a substantial part of the system or upon
the termination of a lease covering all or a substantial part of the system, the Cable Operator shall
notify the City of the fact. The notificationshall be considered as notice that a change in control of
the Cable Operator has occurred. In this case the City Councils approval of the new owner of the
system must be obtained as herein required.
(6) Prior to any transfer or change in control, a Cable Operator shall submit to the City
any form required by federal law together with the matters described in Section 5.36.220 above. The
City Council shall approve, conditionally approve or deny the transfer or change in control within
120 days following receipt of all required material, unless an extension is agreed to by the City and
the Cable Operator. Conditions of approval may include, but are not limited to, the following: (a)
Resolution of any outstanding franchise violations or performance deficiencies; (b) Payment of any
outstanding franchise fees; (c) Payment of City costs incurred in reviewing the transfer; (c) Filing of
any appropriate bonds, insurance endorsements, letters of credit or guarantees; and (d) Written
assumption of all obligations of the transferor by the transferee.
(7) Within thirty days after the date of the resolution approving transfer of the franchise,
or within such extended period of time as the City Council in its discretion may authorize, the
transferee shall file with the clerk of the City Council its written acceptance of the franchise, in a
form satisfactory to the City, together with all required bonds and insurance certificates, and its
agreement to be bound by and to comply with and to do all thing required of it by the provisions of
this division and the franchise award resolution. Such acceptance and agreement shall be
acknowledged by the transferee before a notary public and shall be in a form and content satisfactory
to and approved by the City Attorney.
(8) The City may cancel a franchise sixty days or later after the appointment of a receiver
or trustee to take over and conduct the business of the Cable Operator, whether in receivership, or
other action or proceeding, unless the receivership or trusteeship is vacated prior to the expiration of
the sixty days, or unless:
(a) within sixty days after his election or appointment, the receiver or trustee
complies with this division and remedies all defaults; and
17
(b) such receiver or trustee, within sixty days, executes an agreement, approved by
the court, whereby the receiver or trustee assumes and agrees to be bound by this division and the
franchise granted to Cable Operator.
(9) Failure to comply with the requirements of this section is a material breach of this
Title, subject to the remedies provided for herein.
Section 5.36.245. Unauthorized Operation of Cable System. If a Cable System is established,
constructed, operated or maintained within the City without the franchise required by this division,
the City may notify the Cable Operator of the franchise requirement. If the Operator continues an
unauthorized operation for thirty days after such notice from the City, the Operator shall forfeit to the
City all Gross Revenues from the system for so long as such unauthorized operation continues. The
City may also pursue any civil or criminal remedies, including but not limited to obtaining injunctive
relief to immediately enjoin the continue unauthorized operation.
Section 5.36.250. Annexations. Within thirty (30) days after annexation of areas to the City which
are served by a Cable Operator who does not have a franchise from the City, the Cable Operator shall
apply for a new franchise. Pending consideration of such a franchise, the Cable Operator shall
comply with each and every provision of this Article, including but not limited to the franchise fee
requirement. If a newly annexed area is not actively served by a Cable Operator, the Cable
Operator(s) serving the area within the City contiguous to the newly annexed area shall provide
service to that area subject to the provisions of its franchise agreement.
Section 5.36.255. Joint Exercise of Powers Agreement. Should a joint exercise of powers agreement
(Gov, Code, § 6500 et seq.) or similar agreement be entered between the county and a City or cities
located therein in accordance with law providing for the joint regulation of Cable Operators and cable
service or other cooperative arrangements, involved Cable Operators shall be governed by, and
subject to that agreement, pursuant to this Title's provisions, provided that no such joint powers
agreement shall impair any right or obligation of the Cable Operator under a franchise agreement.
Section 5.36.260. Reservation of Rights. Insofar as it is not preempted by Federal or state
regulations, the City reserves all rights it may have or subsequently acquire under state, federal or
other law with respect to the regulation of cable services or other communications services by a
Cable Operator. The City further reserves the right to amend this Code and apply such amendments
to an incumbent Cable Operator in any manner that is consistent with a franchise agreement or
applicable law. A franchise granted pursuant to this Article shall not be deemed to authorize or
prohibit the provision of Telecommunications Services other than Cable Services. The provision of
such other Telecommunication Services shall be governed exclusively by other Articles of this Title.
Section 5.36.265 Consumer Protection and Service Standards.
a. General Standards. A Cable Operator must meet or exceed all applicable consumer
protection and service standards that are customary in the cable television industry and that are
recommended or required by the following:
18
1. Federal statutes, and the rules, regulations, and orders of the Federal
Communications Commission, including the following:
(a) The provisions of Section 76.309(c) of Title 47 of the Code of Federal
Regulations, as it now exists or may later be amended.
(b) The provisions of Section 76.630 of Title 47 of the Code of Federal
Regulations, as it now exists or may later be amended.
(c) The provisions of Section 551 of Title 47, United States Code, as it
now exists or may later be amended.
2. The provisions of California Government Code Sections 53054, et seq.,
entitled the "Cable Television and Video Provider Customer Service and Information Act."
3. The provisions of California Government Code Section 53088, et seq., entitled
the "Video Customer Service Act."
4. The provisions of California Civil Code Section 1722 (b) (1) - (6) relating to
service or repair transactions between cable television companies and their subscribers.
b. Franchise Agreement. Unless preempted by paramount federal law, the consumer
protection and service standards referenced above in paragraph a that are the most stringent, and that
afford the greatest degree of protection to consumers, will be specified in the cable television
franchise agreement and will apply, without limitation, to all video, voice, and data services that are
provided by the Cable Operator to its subscribers within the franchise area.
Section 5.36.300. City Regulation of Franchise
Section 5.36.305. Administration. The office of the City Manager is designed as having primary
responsibility for the administration of the franchise and this article. Whenever a right may be
exercised under this article by the City or the City Manager, such right may also be exercised by a
designee or employee.
Section 5.36.310. Cable Programming if provided for in the Franchise Agreement, the cable
programming offered by the Cable Operator shall include at a minimum each of the following
categories as is appropriate to the franchise area: community, family, children's, news and public
affairs, sports, cultural, arts and music, minority or foreign language, and educational for all ages.
Section 5.36.315. Basic Service. Basic service shall be available to all subscribers. No subscriber
shall be required to purchase any other service as a prerequisite to purchasing basic service. Basic
service shall include all public, educational and governmental channels at no extra charge.
Section 5.36.320. Required Channel Capacity. The Cable System shall have the capacity, the
number of activated and programmed channels and the data/video return ("two-way" or "upstream")
19
capability specified in the Franchise Agreement. The Cable System shall have a maximum frequency
of no less than 750 MHz or such other frequency that is specified in the Franchise Agreement.
Section 5.36.325. Performance Evaluation Sessions. The City and each Cable Operator shall hold
scheduled performance evaluation sessions as specified in the Franchise Agreement.
Section 5.36.330. Integration of Advancements in Technology. In addition to such upgrades as may
be required under a Franchise Agreement, it is the responsibility of a Cable Operator to periodically
review upgrading its Cable System to integrate advancements in technology as may be required to
meet the needs and interests of the community in light of the costs thereof. It is recognized that
Subscribers in the City have an especially strong interest in a System design that will eliminate the
need for set-top converters not necessary for advances in technology and/or otherwise permit
Subscribers to fully utilize the capabilities of consumer electronic equipment while receiving Cable
Service.
To assist the City to understand the practical applications of developments in cable technology, the
Franchisees shall submit a report to the City every odd --numbered year during the Franchise term.
Each report shall describe developments in cable technology that have been incorporated into Cable
Systems of comparable size in the United States, and whether, how, and by what date the Franchises
plans to incorporate those technological developments into the System. In addition, the report shall
describe the effect of those developments on public, educational, and governmental use of the Cable
System, and the effect and compatibility of those technological changes on other consumer electronic
equipment. Except as provided in a Franchise Agreement, the City, on receipt of each plan, may
promptly schedule hearings to consider whether Cable Operator's timetable for implementing the new
technologies is adequate to meet the future cable related needs and interests of the City. Except as
provided in a Franchise Agreement, if the City considers the plan to be adequate, the City shall adopt
it and the Franchisee shall be bound to implement it as if it were set forth herein.
Any increase in charges by a Cable Operator to Subscribers for providing Basic Cable Services in
compressed or digitized forms shall comply with standard industry practices at the time such
technology is introduced into the System. The introduction of compressed or digitized programming
shall be a business decision of the Cable Operator made in good faith after due consideration of the
needs and interests of the community, advancements in technology, the availability of programming,
and the cost to Subscribers.
Section 5.36.335. Cable Service to Public Buildings Occupied by Public Agencies. Upon request by
the City, a Cable Operator shall install, at no charge, as set forth in the Franchise Agreement, at least
one service outlet per public agency at all buildings occupied by public agencies within the Franchise
Area, and shall charge only its time and material costs for any additional service outlets to such
facilities. The Cable Operator shall provide Basic Cable Service and Cable Programming Service to
all outlets in such buildings free of charge. "Public agency" shall mean an agency of the City, the
City, State or Federal Governments, and special districts, including school and water districts and any
political subdivision of the State of California.
Section 5.36.340. PEG Channels. The Cable Operator shall make available one or more dedicated
channels on its Cable System for purposes of public, educational and governmental access, as set
20
forth in the Franchise Agreement. Such channels shall be available on the lowest tier of basic
service. Such channels shall not be used for any advertisements or commercial programming.
Section 5.36.345. PEG Facilities. The Cable Operator shall provide facilities, services and
equipment for use in relation to public, educational and governmental access to the extent provided in
the Franchise Agreement.
Section 5.36.350. Public Access Usage Management. Nothing in this section shall prevent the City
from delegating to an independent nonprofit entity such as a commission or nonprofit corporation the
authority to manage all or any part of the City's PEG facilities, programming and/or funds. The
commission or nonprofit corporation may be established jointly with neighboring jurisdiction at the
City's sole option.
Section 5.36.355. Interconnection. A Cable Operator shall design its System so that it may be two-
way interconnected with any or all other cable television systems or similar communication systems
in the area. Interconnection of systems may be made by direct cable connection, microwave link,
satellite or other appropriate methods.
A Cable Operator may interconnect its system with other Cable Systems upon its own initiative, or
upon request of the City Council to interconnect. If so requested, a Cable Operator shall begin good
faith negotiations concerning interconnection with the other affected system or systems. If so
requested, a Cable Operator shall interconnect with any adjacent Cable System which is controlled by
the Cable Operator or which is under common control.
All signals to be interconnected will comply with FCC technical standards for all classes of signals
and will result in no more than a low level of distortion.
A Cable Operator shall cooperate with any interconnection corporation, regional interconnection
authority, state or federal regulatory agency which may be hereafter established for the purpose of
regulating, facilitating, financing or otherwise providing for the interconnection of communications
systems beyond the boundaries of the City.
Section 5.36.360. Emergency Override. To provide an emergency alert capability, the Cable
Operator shall install and maintain an Emergency Alert System which allows the City to
simultaneously override audio signals and broadcast emergency messages on all television channels.
In case of public emergency, the City may, as directed by the Administrator of Emergency Services
or other authorized official, activate and use such emergency override system for the duration of the
emergency .The Cable Operator shall assist and cooperate with the City in periodic testing of the
emergency override system.
Section 5.36.365. Tree Trimming. When trimming trees, a Cable Operator shall comply with all
City regulations applicable to utilities.
Section 5.36.370. Removal and Abandonment of Cable System. In the event that a franchise is
terminated or expires without being renewed, or if all or a portion of the Cable System is not used for
a period of ninety (90) days, the Cable Operator shall either remove the Cable System or the
21
abandoned portion thereof or shall obtain the permission of the Director of Community Development
to abandon the Cable System in place within ninety (90) days. The Cable Operator shall obtain an
encroachment permit prior to removing the Cable System.
Section 5.36.375. Acquisition of Cable System. Notwithstanding the granting of a franchise, the
City retains the right to acquire the Cable System at any time by negotiated sale or eminent domain,
and retains the right to resell the Cable System to any third party. If the City denies the renewal of
the franchise, the City may acquire the Cable System at a price not to exceed fair market value,
determined on the basis of the Cable System valued as a going concern but with no value allocated to
the franchise itself or any use of the Cable System for purposes other than Cable Television Services.
If the City revokes a franchise, the City may acquire the Cable System at a price not to exceed the
depreciated book value of the Cable System.
Section 5.36.400. Customer Service
Section 5.36.405. Continuity of Service. Customers have the right to receive, and the Cable
Operator has the obligation to provide, efficient service, high-quality reception, prompt repairs and
service interrupted only for good cause and for the shortest possible time. It shall be the right of all
subscribers to continue receiving service insofar as their financial and other obligations to the Cable
Operator are honored. In the event that the Cable Operator elects to over build, rebuild, modify, or
sell the system, or the City Council gives notice of intent to terminate or fails to renew this franchise,
the Cable Operator shall act so as to ensure that all subscribers receive continuous, uninterrupted
service.
Section 5.36.410. Non -Discriminatory Services. The Cable Operator shall not deny service or access
or otherwise discriminate against subscribers, channel users or general citizens on the basis of race,
color, religion, national origin, sex, age, disability or occupation. Nothing in this section shall be
deemed to prohibit senior discounts.
Section 5.36.415. Local Office. The Cable Operator shall maintain a local business office in a
location specified in the Franchise Agreement which shall be open to the public during convenient
hours (for working people) on weekdays and on weekends.
Section 5.36.420. Line Extensions.
(1) The Cable Operator must extend and make cable television service available to every
business location (other than home occupations) unless, due to the low density of businesses in a
particular area, the City waives this requirement. The Cable Operator must extend and make cable
television service available to every dwelling unit within three months in any unserved area reaching
the average density of ten occupied residential dwelling units per one-quarter mile, as measured from
the nearest active coaxial feeder line. Extension of cable television service to any unserved area
satisfying the foregoing requirements will be subject to the following:
(a) Each occupied residential dwelling unit must be located within a distance of no
more than one hundred fifty feet from the anticipated location of such extension, provided that an
occupied residential dwelling unit located more than this distance from the anticipated location of
22
such extension shall be counted if the owner or occupant agrees to pay the Cable Operator an
additional amount not to exceed the actualtime and materials cost of the portion of the drop to such
residential dwelling unit exceeding one hundred fifty feet; and
(b) The Cable Operator is able to secure all necessary easements or rights-of-way
for purposes of locating its Cable System in the area of such extension.
(2) In areas not meeting the requirements for mandatory extension of service, the Cable
Operator shall provide, upon the request o f a potential subscriber desiring service, an estimate of the
reasonable costs required to extend service to said subscriber, including materials, labor, overhead
and private easements, if necessary. The Cable Operator shall then extend service within four months
upon request of said potential subscriber, who shall be responsible for all reasonable costs associated
with the extension. The Cable Operator may require advance payment or assurance of payment
satisfactory to the Cable Operator.
Section 5.36.425. New Service Requests.
(1) The Cable Operator shall provide service to all dwelling units and all business
locations within the City (subject to the limitations on line extensions in the previous section)
pursuant to the following requirements.
(2) In any case in which either no new drop is required, or a new aerial drop is required of
no more than one hundred fifty feet, or a new underground drop is required of seventy-five feet or
less as measured from the nearest active or required feeder line along a reasonably direct route, the
Cable Operator shall make cable service available at the standard connection charge within seven (7)
days of receipt of any service request. In any case in which a new drop is required which is longer
than the foregoing standards, the Cable Operator shall make cable service available at the standard
connection charge within fourteen (14) days of receipt of any service request. Notwithstanding the
foregoing, if the service request requires a drop in excess of one hundred fifty feet, the Cable
Operator may charge the business or resident requesting service an additional amount which shall not
exceed the actual time and materials cost of the drop in excess of one hundred fifty feet.
(3) Upon receiving a request for new service the Cable Operator shall make reasonable
efforts to promptly acquire all easements or rights of occupancy necessary for extension of service to
such resident's home and not already secured by the Cable Operator. The Cable Operator shall not be
required to install service until such easements or rights of occupancy have been acquired.
Section 5.36.430. System or Individual Outage Complaints.
(1) Upon receipt of a service complaint, the Cable Operator shall respond as follows: (1)
to a system outage of one or more channels, within two hours; (2) to an individual outage of one or
more channels, within twenty-four hours; and (3) to all other reception problems, by the next working
day or as agreed upon by the subscriber and the Cable Operator. The Cable Operator shall have
available at all times a sufficient number of technicians capable of responding to the foregoing
matters within the foregoing time frames.
23
(2) The Cable Operator will be deemed to have responded to a service complaint when a
field service representative competent to fix the problem arrives at the service location (which may be
some portion of the Cable System and not a subscriber's residence) and begins work on the problem.
In the case of a response which involves request for service at a subscriber's residence, and the
subscriber is not home when the field service representative arrives, response will re deemed to have
taken place if the field service representative leaves notification of arrival and instructions for
rescheduling on the subscriber' s front door.
(3) Where the Cable Operator its unable to respond to a service complaint within the
applicable time period specified in this section, the Cable Operator shall make reasonable efforts,
within such time period, to notify the complainant of the reason(s) and the estimated time frame for
correction, and shall proceed to correct the service complaint at the earliest possible time.
Section 5.36.435. Scheduling Appointments. All appointments for service, installations, or
disconnection shall be specified by date. At the subscriber's option, weekday service calls shall be
scheduled as morning or afternoon appointments during specified four-hour blocks of time. For
service calls responding to system or individual outages, holiday and weekend scheduling shall also
be available. If the appointment cannot be kept, the Cable Operator shall make reasonable efforts to
promptly notify the subscriber in advance and reschedule the appointment. A Cable Operator may
not cancel an appointment with a subscriber after the close of business on the business day prior to
the scheduled appointment.
Subscribers who have experienced a missed appointment due to the fault of a Cable Operator shall
receive installation free of charge (if the appointment was for installation). The subscriber shall
receive a credit against the Basic Service Charge in the minimum amount of twenty dollars ($20.00)
if the missed appointment is for a service call. Alternatively, subscribers may pursue their remedies
pursuant to Civil Code section 1722.
Section 5.36.440. Notification of Service Interruptions. Where service interruptions of one hour
duration or longer are planned, the Cable Operator shall notify subscribers at least twenty-four hours
before the anticipated interruption, provided that no notification shall be required for service
interruptions occurring between 2:00 a.m. and 6:00 a.m. Notification need not be repeated before
each anticipated interruption as long as the initial notification advises of the possibility of repeated
interruptions during a specified period not to exceed one month. To the extent feasible, the Cable
Operator shall avoid interruptions between 5:00 pm. and midnight.
Section 5.36.445. Notification of Service or Channel Changes. The Cable Operator shall notify
subscribers of any changes in programming services or channel positions as soon as possible through
announcements on the Cable System and in writing. Notices must be given to subscribers a
minimum of thirty (30) days in advance of such changes if the change is within the control of the
Cable Operator. Cable Operator shall provide a copy of all notifications to the City and shall make
every reasonable effort to do so at least seven (7) days in advance of the distribution to subscribers.
If the subscriber notice is not timely provided, the proposed change may not occur until and unless
the proper notice is provided.
Section 5.36.450. Telephone Communication Service.
24
(1) The Cable Operator shall render efficient telephone communication service,
sufficiently staffed by knowledgeable, courteous personnel.
(2) Customer Service Response. At a minimum, the Cable Operator shall have on duty a
sufficient number of customer service representatives available to handle customer calls during all
hours that the business office is open. During times not handled by customer service representatives,
each system must have a capable answering service for repair requests or service complaints.
Answering Machines are rot acceptable, except for automated response units that are used to process
and route calls to on -duty personnel of the Cable Operator.
(3) Telephone System Requirements. The Cable Operator shall at all times provide a
telephone system meeting the following requirements:
(a) Each Cable Operator shall have a phone system with a sufficient capacity to
promptly respond to telephone calls. Telephone numbers for customer service shall be listed in a
local telephone directory. All telephone lines for customer service shall be toll free to subscribers
within the franchise area
(b) Knowledgeable, qualified customer service representatives shall be available to
respond to customer telephone inquiries during all hours that the business office is open.
(c) Under normal operating conditions, telephone answer time by a customer
service representative, including wait time, and the time required to transfer the call, shall not exceed
thirty seconds. Those systems which utilize automated answering and distributing equipment shall
limit the number of routine rings to four or fewer. Systems not utilizing automated equipment shall
make every effort to answer incoming calls as promptly as the automated systems. Under normal
operating conditions, the customer shall receive a busy signal less than three percent of the total time
that the telephone system is staffed by customer service representatives. These standards shall be met
no less than eighty percent of the time measured quarterly. If the City receives complaints indicating
a significant problem in any telephone system, the City may require the Cable Operator to meet the
above standards not less than eighty percent of the time measured over a sixty-day period until such
time as the performance is perceived to be satisfactory.
(d) The Cable Operator shall, by means of automatic monitoring equipment, track
all customer service telephone calls and prepare monthly summaries of all calls according to the
criteria listed in subsection (c). Such report shall be delivered to the City annually and, in addition, as
requested.
(e) Notwithstanding subsection (c) above, in cases of major system outages or
major service interruption, the Cable Operator may provide a recorded message informing customers
of the problem and probable correction time as long as customers are still able to react a customer
service representative.
(f) In cases where the Cable Operator's existing telephone system cannot
demonstrate compliance with the standards set forth in subsections (c) or (d), the Franchise
25
Agreement may specify comparable criteria for the Cable Operator's telephone system and the time
frame for compliance with the standards set forth in this section.
Section 5.36.455. Complaint Log. The Cable Operator shall keep a computer log or written record
for at least three years of (1) all service calls and complaints which require the dispatch of a service
vehicle to respond to the service call or complaint, and (2) all calls regarding outages, regardless of
whether a service vehicle was dispatched, together with the disposition of all such calls. This record
shall be available for public inspection by the affected subscriber at the local office of the Cable
Operator during regular office hours such that each subscriber may examine his or her own records.
The log or record shall be available for inspection by the City at any time at the local office of the
Cable Operator during regular office hours. Before making a record available for inspection under
this section, the Cable Operator may require reasonable advance notice, which shall in no event
exceed one working day.
Section 5.36.460. Subscriber Test Requests. Upon reasonable request or complaint by subscriber,
the Cable Operator shall, at its sole expense, perform such signal level tests as necessary to establish
if a signal of requisite quality is being delivered to the subscriber's premises. The test shall be
conducted at the subscriber's receiver and at other such locations deemed necessary by the Cable
Operator, and a copy of the written test results shall be made available to the subscriber upon request.
Section 5.36.465. Conditions of Service -Subscriber Information. The Cable Operator shall send or
deliver to all new and reconnected subscribers in writing and to all subscribers at least once a year, in
a form easy to read and understand, information concerning the conditions of service, including but
not limited to: rates, fees, charges, deposits, refunds of deposits, available levels of service (tiers),
payment options, discounts (if any), service call policy, privacy protections and disconnection and
reconnection policy. The Cable Operator shall provide a copy of such information to the City prior to
its distribution to the Cable Operators subscribers for review and comment.
Section 5.36.470. Complaints -Subscriber Information. Upon connection or reconnection to the
system and at least once a year, the Cable Operator shall, by appropriate means, such as a card or
brochure, printed notice on billing statement, or billing insert, furnish to each subscriber information
concerning the procedures for making inquiries or complaints to the Cable Operator or the City,
including the name, address and local telephone number of the Cable Operator and the City. The
form and content of the complaint notice shall be subject to review and comment by the City.
Section 5.36.475. Investigation of Complaints.
(1) When there have been a significant number of complaints made, or where there exists
other evidence which, in the judgment of the City, indicates a problem with the reliability or quality
of cable service as required under this Title or in the franchise agreement, the City Council shall have
the right and authority to require the Cable Operator to evaluate the performance, operation or
administration of the Cable System including without limitation matters relating to customer service.
The Cable Operator shall fully cooperate with the City in performing such evaluation and shall
prepare results and a report, if requested, within thirty days after notice. Such report shall include the
following information:
26
(a) The nature of the complaint or problem which precipitated the evaluation;
(b) What system component, operation or service was evaluated;
(c) The equipment used and procedures employed;
(d) The method, if any, by which such complaint or problem could be or has been
resolved; and
(e) Ay other information pertinent to the evaluation which may be required.
(2) The City may require that evaluations be supervised, or conducted, at a cost to be paid
by the Cable Operator, by an engineer, accountant or other consultant selected by the City and not on
the permanent staff of the Cable Operator or the City. The engineer, accountant or other consultant
shall sign all records of the evaluation and forward to the City such records with a report interpreting
the results of the evaluation and recommending actions to be taken. The City's rights under this
section, shall be limited to evaluating specific subjects and characteristics based on complaints,
circumstances or other evidence which cause the City to reasonably believe that evaluation is
necessary to protect the public against substandard cable service.
Section 5.36.480. Non -Compliance with Standards. In the event of repeated and verifiable non-
compliance with the customer service standards contained in this Chapter, the City may, in addition
to pursuing any other civil or criminal remedy, direct the Cable Operator to add sufficient personnel
and/or telephone lines and equipment to ensure compliance with such standards.
Section 5.36.485. Billing, Late Fees, Disconnection of Service and Notification of Rate Changes.
(1) Bills for services shall be monthly. Nothing in this section shall prohibit voluntary
prepayment of services by subscribers, provided that the Cable Operator shall not be required to offer
or accept any discount or other reduction in the amount paid by any subscriber for a voluntary
prepayment of services. Bill shall include a listing of the Cable Operator's customer service
telephone number in a manner that makes such number significantly more prominent than any other
telephone numbers listed on the bill. Bills shall not list the City's telephone number in a manner that
causes confusion to the public. All telephone numbers shall be listed on the bill in a form approved
by the City.
(2) Bills will be clear, concise and understandable. Bills must be fully itemized, with
itemizations including, but not limited to, basic and premium service charges and equipment charges.
Bills will also clearly delineate all activity during the billing period, including optional charges,
rebates and credits.
(3) In case of a billing dispute, the Cable Operator must respond to a written complaint
from a subscriber within thirty (30) clays.
(4) Before itemizing on subscriber bills any fees, taxes, assessments or other items
payable to the City the itemization of which is not expressly authorized by state or federal statute or
27
regulation, the Cable Operator shall submit a sample bill to the City for review and comment. In the
event that the billing language proposed by the Cable Operator is misleading or incomplete, the Cable
Operator shall modify the same as requested by the City or shall include a reasonable explanation as
agreed to by the City and the Cable Operator.
(5) Charges on a bill shall not he deemed delinquent and a subscriber shall not be subject
to a late fee, so long as payment is received from the subscriber within ten days after the end of the
service period covered by the bill.
(6) A Cable Operator shall only disconnect a subscriber's service for good cause. A Cable
Operator shall not disconnect service for non-payment until the Cable Operator has provided the
subscriber with notice, provided on or after the due date of the subscriber's bill and separately from
that bill or any other standard monthly bill, at least ten (10) days in advance of the disconnection.
The notice shall specify the earliest date the disconnection will occur, the total payment required to
avoid disconnection and the telephone number and office hours to contact a customer service
representative. In no event shall disconnection for nonpayment occur less than fourteen (14) days
after the end of any billing period for which charges are delinquent. If service is disconnected by the
Cable Operator's personnel at or near the drop to the subscriber, such personnel first attempt to visit
the subscriber and give the subscriber an opportunity to continue service by paying all accrued
charges.
Section 5.36.487. Credits for Outages.
(1) Except for loss of service beyond the reasonable control of the Cable Operator, after
notification from a subscriber of an individual or system outage and following the time frames set out
in Section 5.36.475 for an opportunity to cure, the Cable Operator shall, upon request, credit the
subscriber's account on a pro -rata basis one -thirtieth of the subscriber's monthly rate for each day or
portion of a day that the system or individual outage continues. In addition, in cases where, within
any seven-day period, there have been more than six individual outages, system outages or service
interruptions of fifteen minute or more, the Cable Operator shall, upon request, credit the subscriber's
account for one -forth of the subscriber's monthly rate. Should an individual or system outage affect a
pay-per-view or other similarly priced per -event service, the subscriber shall, upon request, be
credited the charges for such service. Credit shall be given under this section only if the subscriber
has notified the Cable Operator of the outage within forty-eight hours of its occurrence and has
provided access to the Cable Operator as necessary to correct the problem,
(2) Nothing in this section shallprohibit the Cable Operator from giving other credits.
Section 5.36.489. Refund of Deposits. The Cable Operator shall refund all subscriber deposits
within thirty days of termination of service. Any outstanding balance, including any equipment not
returned by the subscriber, may be deducted from the deposit. The refund shall be mailed to the
subscriber at no expense, or shall be handled as otherwise agreed to by the subscriber.
Section 5.36.491. Parental Control Lock. The Cable Operator shall provide subscribers, upon
request, with a parental blocking device or digital code that permits inhibiting the video portions of
premium channels. The Cable Operator may charge a reasonable rate for such a device.
28
Section 5.36.493. Privacy.
(1) The Cable Operator shall not sell or otherwise release to any person, without specific
written authorization from each individual subscriber, any list which identifies individual subscriber
viewing habits or any list which contains the name, address and/or telephone numbers of individual
subscribers.
(2) The Cable Operator shall not place in a residence any equipment capable of being
used by the Cable Operator for audio eavesdropping or video surveillance. In addition, the Cable
Operator shall not activate any two-way communications capability of the system in a subscriber's
residence, or use the system to gather information about individual subscriber viewing habits, without
the subscriber's informed written or electronic consent. Notwithstanding the above, the Cable
Operator shall have the right to use the system to (i) obtain information necessary to render cable
service or any other service provided by the Cable Operator to the subscriber, (ii) verify receipt of
cable service for billing purposes or (iii) detect unauthorized reception.
Section 5.36.495. Landlord/Tenant.
(1) Neither the owner of any residential dwelling nor his agent or representative shall ask
or demand any payment, service or gratuity in any form as a condition for permitting the installation
of Cable service to the dwelling unit occupied by a tenant or resident requesting service.
(2) Neither the owner of any residential dwelling nor his agent or representative shall
penalize, charge or surcharge a tenant or resident or forfeit or threaten to forfeit any right of such
tenant or resident, or discriminate in any way against such tenant or resident who requests or receives
cable service from a Cable Operator operating under a valid and existing cable franchise issued by
the City.
(3) No person shall resell, without the express written consent of the Cable Operator and
without a franchise from the City, where required, any cable service, program or signal transmitted
by a Cable Operator operating under a franchise issued by the City. However, the owner of a
multiple dwelling unit, under the auspices of a bulk cable service agreement with the Cable Operator,
may charge tenants for cable service, so long as such charges do not exceed the charges made by the
Cable Operator to the owner, plus a reasonable sum to reimburse the owner for necessary
administration and billing.
(4) Nothing in this section shall prohibit a person from requiring that Cable System
facilities conform to laws and regulations and reasonable conditions necessary to protect safety,
functioning appearance and value of premises or the convenience and safety of persons or property.
(5) Nothing in this section shall prohibit a person from requiring a Cable Operator to
agree to indemnify the owner, or his agents or representatives, for damages or from liability for
damages caused by the installation, operation, maintenance or removal of Cable System facilities.
29
Section 5.36.497. Unauthorized Connections and Tampering. No person, firm or corporation shall
make any authorized connection, whether physically, electrically, acoustically, inductively or
otherwise, with any part of a franchised Cable System for the purpose of taking or receiving
television signals, radio signals, pictures, programs, or sound. Also no person, without the consent of
the owner, shall tamper with, remove or injure any cables, wires or equipment used for distribution of
television signals, radio signals, pictures, programs or sound.
Section 5.36.500. Construction and Technical Standards
Section 5.36.505. Construction Requirements. All construction (including, but not limited to, the
initial construction of the Cable System and any rebuild, expansion, replacement, repair or
maintenance of all or any part of the Cable System) shall be performed in compliance with this
Article and all other provisions of this Code. At least ninety (90) days prior to initiating any major
construction (other than routine maintenance or repair, installation of subscriber drops or minor line
extensions), a Cable Operator shall submit a construction plan to the City. The construction plan
shall include a description of the work, equipment specifications, existing and proposed locations of
all facilities, traffic control plans, resident and business notification plans and a detailed construction
schedule. The City may approve, conditionally approve or deny the construction plan. The City may
require the posting of construction bonds. Additional construction requirements may be specified in
a Franchise Agreement.
Section 5.36.510. Standards. A Cable Operator shall construct, install, operate and maintain its
system consistent with all of the following:
a. All ordinances and construction standards of the City.
b. National Electrical Safety Code.
c. National Electrical Code.
d. Rules, regulations and orders of the Federal Communications Commission.
e. Rules, regulations and orders of 1:he Califomia Public Utility Commission.
f. All other applicable federal, state and local laws and regulations.
A Cable Operator shall construct, install and maintain its Cable System in an orderly and professional
manner, using due diligence and materials of good and durable quality. All such work shall be
performed in close coordination with other public and private utilities following accepted
construction procedures and practices and working through existing committees and organizations.
All cable and wires shall be installed, where possible, parallel with and in the same manner as electric
and telephone lines on the same poles. Multiple cable configurations shall be arranged in parallel and
bundled with due respect for engineering considerations.
A Cable Operator shall, at its own cost and expense, install and maintain shielding, filtering and
grounding at affected installations with the system to eliminate television interference encountered
from overload by amateur radio transmissions which are in compliance with FCC regulations.
A Cable Operator shall maintain equipment capable of providing standby power to be engaged
automatically in the event of a power: failure for twenty-four (24) hours at all headends serving the
City, including without limitation all switching facilities, towers, electronics and heating, ventilation
30
and air conditioning systems and equipment located at such headends and such switching facilities.
The Cable Operator shall also maintain on its distribution system alternative power sources (battery
back-up) so that both the subscriber and the institutional networks (if any) may be maintained at full
power for at least two (2) hours beyond the time when normal power sources serving the Cable
System have ceased.
If the City reasonably believes that the Cable System is not in technical compliance with the
foregoing standards, the City may require the Cable Operator to conduct its own technical testing of
the system, and Cable Operator shall disclose the results of such tests to the City upon their
completion. Any deficiencies shall be cured by the Cable Operator promptly and no later than thirty
(30) days following completion of testing. The City shall also have the right to observe any system
performance tests conducted by the Cable Operator and to obtain copies of the results of such tests.
A Cable Operator shall comply with all of the same standards and codes, including but not limited to
the payment of inspection fees, to construct and maintain its system within private rights-of-way as
are required by the City's public streets.
Section 5.36.600. Administration and Enforcement
Section 5.36.605. Franchise Fees. All Cable Operators shall pay a franchise fee to the City in an
amount equal to five percent (5%) of the Cable Operator's Gross Revenues. The Cable Operator shall
make franchise fee payments on the first day of each quarter year, or at such other times specified in
the Franchise Agreement. Franchise fee payments shall be submitted together with documentation of
the Cable Operator's Gross Revenues in such form as may be required by the City from time to time.
Section 5.36.610. Compensation Relating to Non -Cable Telecommunications Services. Except as
prohibited by law, all Cable Operators shall pay compensation to the City for use of public property
in an amount equal to five percent (5%) of the Cable Operator's Gross Non -Cable Revenues.
Payments shall be submitted to the City on the first day of each quarter of each calendar year together
with documentation of the Cable Operator's Gross Non -Cable Revenues in such form as may be
required by the City from time to time.
Section 5.36.615. Fees on Non -Cable Operator Revenues. In consideration of the use of public
property, any person other than a Cable Operator who provides Cable Service or any other
Telecommunications Service over a Cable System for which charges are assessed to subscribers but
which are not received by a Cable Operator shall pay a fee to the City in an amount equal to five
percent (5%) of that person's Gross Revenues and Gross Non -Cable Revenues. The Cable Operator
whose Cable System is used by such person shall collect the foregoing fee from such person no later
than the tenth (10th) day prior to the close of each calendar quarter and shall remit the fee to the City
no later than the first (1st) day of the following calendar quarter. If the Cable Operator fails to collect
or remit all or part of this fee, the Cable Operator shall be directly liable to the City for payment of
the uncollected or unremitted fee.
Section 5.36.620. Audit. Consistent with Section 5.36.630, the City shall have the right to inspect
and audit all of the Cable Operator's books and records and those of its affiliates relevant to an
accurate determination of the total amount of the Cable Operator's Gross Revenues and Gross Non -
31
Cable Revenues. The Cable Operator shall make such records available to the City within fourteen
(14) days of the City's request. Such records shall be available for inspection by the City at the Cable
Operator's office within the City during normal business hours. Such records shall be retained by the
Cable Operator for a period of at least five (5) years. The City will bear the cost of any such audit;
provided, however, that if such audit indicates a franchise fee underpayment of three percent (3%) or
more of the amount due, the Cable Operator shall reimburse the City for all reasonable costs relating
to the audit. Any additional amount due to the City as a result of the audit shall be paid within thirty
(30) days following written notice to the Cable Operator, which notice shall include a copy of the
audit report. If the Cable Operator believes the audit report is in error, it may send a written response
to the City describing the error in lieu of making the payment. If the City disagrees with the
response, it shall notify the Cable Operator in writing, after which the Cable Operator shall pay the
additional amount due within thirty (30) days. The City may elect to perform such audit jointly with
one or more other government agencies which regulate affiliated systems.
Section 5.36.625 Late Payments. In the event that the Cable Operator does not make any payments
required by this Code on or before the date due, a late payment penalty shall accrue at a rate of one
and one-half percent (1-1/2 %) per month on the unpaid amount until paid.
Section 5.36.630. Inspection of Records. The Cable Operator shall maintain at its local office, and
shall make available for inspection and auditing at that office within seven days after receipt of a
written request by the City, complete and accurate books, records, maps, plans and other materials of
the Cable Operator which are reasonably related to the City's review of the Cable Operators
compliance with this Code and the Franchise Agreement. To the extent that an affiliate of the Cable
Operator aggregates information relating to the Cable System together with information about other
Cable Systems, the Cable Operator shall have copies of such records available for inspection and
auditing at the local office within seven days after receipt of a written request by the City. The City
shall maintain the confidentiality of any of the foregoing records to the extent that they are not public,
contain sensitive business information and confidentiality is permitted by law.
Section 5.36.635. Location of Cable Operator's Properties.
(1) The Cable Operator shall at all times make and keep on file in the office of the
Community Development Director current, full and complete plans and records to a scale and form
approved by the Community Development. Director, showing the exact location of all Cable System
equipment installed or in use in streets, alleys and public places in the City.
(2) The Cable Operator shall file with the Community Development Director, on or before
the last day of March of each year, a current map or set of maps drawn to a scale designated by the
Community Development Director, showing all Cable System equipment installed in streets, alleys
and public places of the City during the previous year.
Section 5.36.640. Insurance. The Cable Operator shall at all times during the existence of any
franchise issued hereunder maintain in full force and effect at its own cost and expense to following
policies of insurance:
32
(1) A general comprehensive liability insurance policy with minimum liability limits of
Two Million Dollars ($2,000,000.00) combined single limit per occurrence for bodily injury ,
personal injury and property damage;
(2) An automobile liability policy with minimum liability limits of Two Million Dollars
($2,000,000.00) combined single limit per accident for bodily injury and property damage; and
(3)
law.
Workers' compensation insurance with minimum policy limits as required by State
All of the foregoing policies (except workers' compensation insurance) shall all name the City, its
officers, officials, agents, employees and volunteers as insureds, and shall be primary to any
insurance maintained by the City. The precise terms of these policies, including but not limited to
liability limits, deductibles, acceptable insurers and other terms, shall be specified in the franchise
agreement.
Section 5.36.645. Indemnification. The Cable Operator shall indemnify, defend and hold harmless
the City and its officers, officials, employees, agents and volunteers from and against any and all
liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of
every nature arising out of or in connection with the Cable Operator's enjoyment of the franchise
hereunder, or its failure to comply with any of its obligations contained in the franchise agreement or
this Title, or arising out of the construction, installation, maintenance, operation or removal of its
Cable System, except such loss or damage which was caused by the sole negligence or willful
misconduct of the City.
Section 5.36.650. Letter of Credit. Within thirty (30) days after the effective date of a Franchise
Agreement, the Cable Operator shall deposit with the City an irrevocable Letter of Credit in the
amount set forth in the Franchise Agreement in a form and with an institution approved by the City.
The Letter of Credit may be drawn upon by the City for the purpose of remedying any non-
compliance by the Cable Operator with any provision of this Code or the Franchise Agreement.
Section 5.36.655. Possessory Interest. The granting of a franchise pursuant to this Title may create
an interest subject to property taxation pursuant to California Revenue and Taxation Code section
107 et seq. The Cable Operator shall be solely responsible for payment of any such taxes.
Section 5.36.700. Enforcement of Federal Rate Regulations
Section 5.36.705. Effectiveness. This Chapter shall be effective only if the City has been certified by
the Federal Communications Commission ("FCC") to enforce federal rate regulations.
Section 5.36.710. Rate Increases. Prior to increasing rates for basic service and/or associated
equipment at any time, the Cable Operator shall file its proposed rates with the City Clerk together
with the form for determination of rate increases as may be issued by the FCC or the City, and any
other information required by the City Manager. If the proposed rates are greater than the benchmark
rates permitted by FCC regulations, the Cable Operator shall submit a cost -of -service showing
pursuant to FCC regulations. Within seven (7) days of filing its proposed rates, but no later than thirty
33
(30) days prior to the effective date of the proposed rates, the Cable Operator shall notify its
subscribers of its proposed rates and that written comments may be submitted to the City Clerk by
mailing such notice to all subscribers, either separately or in conjunction with bills or other notices
sent to subscribers.
Section 5.36.715. Auditor's Opinion. All forms and materials submitted by the Cable Operator
pursuant to this chapter shall be submitted together with an unqualified opinion of a certified public
accountant ("Auditor's Opinion"). The Auditor's Opinion shall contain, at a minimum, the following
items:
(a) A certification that the data submitted by the Cable Operator truly and
accurately reflect the actual costs of regulated equipment and services and other costs reported
therein as determined by the Auditor in accordance with generally accepted auditing standards,
including without limitation, AU section 801 et seq. of the A1CPA Professional Standards and any
successor sections, and that the financial information contained therein is reported in compliance with
FCC rules and regulations implementing the Cable Act of 1992, including without limitation, 47 CFR
sections 76.924 and 76.925 and any successor sections;
(b) A detailed explanation of the source data examined, tested and utilized by the
Auditor in formulating the Auditor's Opinion;
(c) A list of documents furnished by the Cable Operator to the Auditor and utilized
by the Auditor in formulating the Auditor's Opinion;
(d) A detailed explanation of the auditing methodology utilized by the Auditor in
formulating the Auditor's Opinion; and
(f) A detailed explanation of the assumptions utilized by the auditor in
formulating the Auditor's Opinion.
Upon the request of the City Manager, the Auditor shall provide to the City Manager a
copy of the audit working papers utilized in formulating the Auditor's Opinion within five (5) days of
such request. These working papers shall be kept confidential to the extent required by federal law
and FCC regulations.
This section shall not in any way affect the City's authority to review records of the Cable Operator
pursuant to Section 5.36.630 above, or any other law, ordinance or agreement.
34
Section 5.36.720. Time for Action.
(a) Quarterly Rate Adiustments. If the Cable Operator submits its proposed rates pursuant
to the quarterly rate adjustment system authorized by the FCC, the provision of this subsection shall
apply. The proposed rates shall take effect thirty (30) days after submission of all required
information to the City, unless the City disapproves the rate or the City Manager issues an order
extending the 30 -day period as follows. The City Manager may issue a written order extending this
30 -day period for the purpose of requesting or considering additional information or comments for:
(a) an additional ninety (90) days in cases not involving cost -of -service showings if the City Council
and City Manager are unable to make a determination within the 30 -day period; or (b) an additional
one hundred fifty (150) days in cases involving cost -of -service showings. The proposed rates shall
take effect following such extension unless the Cable Operator has not submitted all required
information or unless the City disapproves the proposed rate. Prior to expiration of such extended
period, the City Manager may issue a brief written order directing the Cable Operator to keep an
accurate account of all amounts received by reason of the proposed rate and on whose behalf such
amounts were paid. At any time following expiration of such extended period, the City may
disapprove the proposed rate and, if the foregoing accounting order was issued, may order the Cable
Operator to refund all amounts previously collected as a result of the disapproved rate. To the extent
provided by federal law, a Cable Operator utilizing the quarterly rate adjustment system may increase
its rates for basic service to reflect increases in franchise fees or FCC regulatory fees without
complying with this subsection.
(b) Annual Rate Adjustments. If the Cable Operator submits its proposed rates pursuant
to the annual rate adjustment system authorized by the FCC, the provision of this subsection shall
apply. The Cable Operator shall submit its proposed rates no later than 90 days prior to the proposed
effective date of the rates. Within 45 days of submission, the City may notify the Cable Operator that
its submission is facially incomplete, in which case the review period shall be tolled until such time
as the City receives all required information. If prior to a determination by the City there is a material
change in the Cable Operator's circumstances which affects the rate filing, the Cable Operator may
file an amendment. The proposed rates shall take effect the later of ninety (90) days after submission
of all required information to the City or thirty (30) days after receipt of any amendment, unless the
City disapproves the rate. If the City takes no action during this period, during the subsequent 12 -
month period the City may nevertheless issue a written decision disapproving the proposed rates and
order a refund and a prospective rate reduction. During this 12 -month period, if the Cable Operator
makes a written inquiry concerning whether the City intends to issue a rate order, the City shall notify
the Cable Operator of its intent within 15 days of receipt of the inquiry.
(c) Required Channel Additions to Basic Service Tier. If the Cable Operator is required
by federal or local law to add channels to the Basic Services Tier and submits a proposed rate
adjustment as a result, the proposed rates shall take effect sixty (60) days after receipt of a complete
application unless the City rejects the proposed rate as unreasonable.
(d) New Equipment. If the Cable Operator submits a proposed rate for a new type of
equipment, the proposed rate shall take effect sixty (60) days after receipt of a complete application
unless the City rejects the proposed rate as unreasonable. If the Cable Operator's most recent rate
filing was based on the system that enables them to file up to once per quarter, the City may order
35
refunds and prospective rate reductions following the expiration of the sixty (60) day period,
provided that it issues an accounting order prior to the expiration of that period. If the Cable
Operator's most recent rate filing was based on the annual rate system, the City may order refunds
and prospective rate reductions following the expiration of the sixty (60) day period in accordance
with FCC regulations.
Section 5.36.725. Determination by City Manager. In cases not involving cost -of -service showings,
the City Manager shall consider all writtenmaterial submitted by the Cable Operator and the public
and determine if the proposed rates are within the limits established by the FCC regulations. The
Cable Operator shall have the burden of proof to establish that its proposed rates are within the limits
established by the FCC regulations. The City Manager may approve or disapprove the proposed rates,
allow the proposed rates to take effect by operation of law by taking no action, or refer the matter to
the City Council for hearing. The City Manager shall issue a written decision if he or she approves
over opposition or disapproves the proposed rates in whole or in part. The City Manager is not
required to issue a written decision if he or she approves a proposed rate which has not been opposed
by any person or if he or she takes no action, in which event the proposed rate shall take effect upon
expiration of the time period prescribed in the Section above. If the City Manager determines that the
rates are unreasonable and do not comply with FCC regulations, the City Manager may prescribe
reasonable rates as authorized by FCC regulations. If the City Manager determines that the Cable
Operator's existing rates exceed the amounts permitted by FCC regulations, the City Manager may
order the Cable Operator to refund the amounts overcharged to its subscribers to the extent permitted
by the FCC regulations within ninety (90) days of the order. The City Manager shall notify the City
Council of any determination made concerning proposed rates. The determination of the City
Manager shall be final. Notwithstanding the foregoing, within ten (10) days after the determination
by the City Manager or at the next regularly scheduled City Council meeting, whichever is later, any
member of the City Council may call up the proposed rates for consideration by the City Council in
accordance with the following Section. The proposed rates shall not take effect until the expiration of
this period or, if called up by a Councilmember, pending determination by the City Council.
Section 5.36.730. Determination by City Council. In cases involving a cost -of -service showing and
in cases which are called up by a Councilmember in accordance with the foregoing Section, a hearing
on the proposed rates shall be scheduled before the City Council upon submission of all required
materials. The Cable Operator shall have the burden of proof to establish that its proposed rates are
within the limits established by the FCC regulations. The City Council shall issue a written decision
if it approves over opposition or disapproves the proposed rates in whole or in part. The City Council
is not required to issue a written decision if it approves a proposed rate which has not been opposed
by any person or if it takes no action, in which event the proposed rate shall take effect upon
expiration of the time period prescribed in Section 5.36.720 above. If the City Council determines
that the rates are unreasonable and do not comply with FCC regulations, the City Council may
prescribe reasonable rates as authorized by FCC regulations. If the City Council determines that the
Cable Operator's existing rates exceed the amounts permitted by FCC regulations, the City Council
may order the Cable Operator to refund the amounts overcharged to its subscribers to the extent
permitted by the FCC regulations within ninety (90) days of such order.
36
Section 5.36.735. Appeals. The Cable Operator or any interested person may appeal any decision of
the City Council or the City Manager relating to compliance with Federal rate standards to the FCC
in accordance with FCC regulations.
Section 5.36.740. Complaints Concerning Premium Service Rates. Upon receipt of more than one
subscriber complaint made within 90 days after the effective date of an increased rate, the City
Manager is authorized to file a complaint with the FCC challenging the reasonableness of the Cable
Operator's rate for cable programming service, or the reasonableness of the Cable Operator's charges
for installation or rental of equipment used for the receipt of cable programming service. However,
the City Manager shall not file a complaint with respect to cable programming services after March
31, 1999 unless the City is authorized to do so by federal law or regulation.
PART 3. OPEN VIDEO SYSTEMS
Section 5.36.750. Prerequisites to Operating an Open Video System. Prior to operating an Open
Video System, an Open Video System Operator shall elect to either obtain a cable television
franchise pursuant to Part 2 above or to comply with this Part 3. No person or entity shall operate an
Open Video System without first (a) submitting a written notice of its election; (b) complying with
Article I above; (c) providing the City with a copy of its Federal Communications Commission
certification as an Open Video System; and (d) completing negotiations with the City and otherwise
complying with the public, educational and governmental access requirements contained in Section
5.36.755 below. If an Open Video System Operator fails to comply with any federal, state or City
requirement, it shall immediately cease operations until such compliance occurs. This Part 3 shall not
be deemed to authorize an Open Video System Operator to conduct any operations other than the
provision of cable services. If an Open Video System Operator provides other Telecommunications
Services, those Services shall comply with all applicable sections of this Code. Constructing or
operating an Open Video System shall notbe deemed to give any Open Video System Operator a
vested right to continue to maintain such a system. In the event that federal law ever permits the City
to require an Open Video System Operator to obtain a franchise or license, all Open Video System
Operators shall immediately apply for such a franchise or license from the City.
Section 5.36.755. Public, Educational and Governmental Access. Prior to operating an Open Video
System, an Open Video System Operator shall negotiate with the City concerning public, educational
and governmental access channel capacity, services, facilities and equipment. These negotiations may
include the local Cable Operator(s) if all parties so agree. If the City and the Open Video System
Operator are unable to reach agreement, the Open Video System Operator must satisfy the same
public, educational and government access obligations as the local Cable Operator(s) by connecting
with the Cable Operator's public, educational and governmental access channel feeds and by sharing
the Cable Operator's costs relating to such channels. The City Council may adopt a resolution
governing the use of such channels and the implementation of the connection of the Open Video
System with the Cable System.
Section 5.36.760. Fees. All Open Video System Operators shall pay a fee to the City in an amount
equal to five percent (5%) of the Open Video System Operator's Gross Revenues. The Open Video
System Operator shall make fee payments quarterly on the first day of each calendar quarter. Fee
37
payments shall be submitted together with documentation of the Open Video System Operator's
Gross Revenues in such form as may be required by the City from time to time.
Section 5.36.765. Compensation Relating to Non -Cable Telecommunications Services. All Open
Video System Operators shall pay compensation to the City for use of public property in an amount
equal to five percent (5%) of the Open Video System Operator's Gross Non -Cable Revenues.
Payments shall be submitted to the City on the first day of each quarter of each calendar year together
with documentation of the Open Video System Operator's Gross Non -Cable Revenues in such form
as may be required by the City from time to time.
Section 5.36.770. Fees on Non -Open Video System Operator Revenues. In consideration of the use
of public property, any person other than a Open Video System Operator who provides Cable Service
or any other Telecommunications Service over an Open Video System for which charges are assessed
to subscribers but which are not received by an Open Video System Operator shall pay a fee to the
City in an amount equal to five percent (5%) of that person's Gross Revenues and Gross Non -Cable
Revenues. The Open Video System Operator whose Open Video System is used by such person shall
collect the foregoing fee from such person no later than the tenth (10th) day prior to the close of each
calendar quarter and shall remit the fee to the City no later than the first (1st) day of the following
calendar quarter. If the Open Video System Operator fails to collect or remit all or part of this fee, the
Cable Operator shall be directly liable to the City for payment of the uncollected or unremitted fee.
Section 5.36.755. Audit. Consistent with Section, the City shall have the right to inspect and audit
all of the Open Video System Operator's books and records and those of its affiliates relevant to an
accurate determination of the total amount of the Open Video System Operator's Gross Revenues and
Gross Non -Cable Revenues. The Open Video System Operator shall make such records available to
the City within fourteen (14) days of the City's request. Such records shall be available for inspection
by the City at the Open Video System Operator's office within the City during normal business hours.
Such records shall be retained by the Open Video System Operator for a period of at least three (3)
years. The City will bear the cost of any such audit; provided, however, that if such audit indicates a
franchise fee underpayment of three percent (3%) or more of the amount due, the Open Video System
Operator shall reimburse the City for all reasonable costs relating to the audit. Any additional amount
due to the City as a result of the audit shall be paid within thirty (30) days following written notice to
the Open Video System Operator, which notice shall include a copy of the audit report. If the Open
Video System Operator believes the audit report is in error, it may send a written response to the City
describing the error in lieu of making the payment. If the City disagrees with the response, it shall
notify the Open Video System Operator in writing, after which the Open Video System Operator
shall pay the additional amount due within thirty (30) days.
Section 5.36.780. Late Payments. In the event that the Open Video System Operator does not make
any payments required by this Code on or before the date due, a late payment penalty shall accrue at
a rate of one and one-half percent (1-1/2 %)per month on the unpaid amount until paid.
PART 4. TELEPHONE COMPANIES
Section 5.36.800. Telephone Companies. All Telephone Companies shall comply with all provisions
of Part 1 above. All Telephone Companies shall obtain a franchise from the City pursuant to Part 6
38
below unless such Companies are exempt from franchising requirements pursuant to state or federal
law. A Telephone Company shall not be deemed exempt from the franchise requirement unless and
until it provides documentation of such exemption to the satisfaction of the City.
PART 5. WIRELESS TELECOMMUNICATIONS SYSTEM OPERATORS
Section 5.36.850. Wireless Telecommunications System Operators. All Wireless
Telecommunications System Operators shall comply with all provisions of Part 1 above. All Wireless
Telecommunications System Operators shall obtain a franchise from the City pursuant to Part 6
below unless such Companies are exempt from franchising requirements pursuant to state or federal
law. A Wireless Telecommunications System Operator shall not be deemed exempt from the
franchise requirement unless and until it provides documentation of such exemption to the
satisfaction of the City.
PART 6. OTHER TELECOMMUNICATIONS SYSTEM OPERATORS
Section 5.36.900. Other Telecommunications System Operators. All Telecommunications System
Operators shall comply with all provisions of Part 1 above. All Telecommunications System
Operators shall obtain a franchise from the City pursuant to this Part 6 unless such Companies are
exempt from franchising requirements pursuant to state or federal law. A Telecommunications
System Operator shall not be deemed exempt from the franchising requirement of Part Article 6
unless and until it provides documentation of such exemption to the satisfaction of the City.
39