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HomeMy WebLinkAboutCC ORD 1984-1816 AMENDING TITLE VI ADDING A NEW CHAPTER 6.10 - CABLE TELEVISIONORDINANCE NO. 1816 AN ORDINANCE AMENDING TITLE VI OF THE NATIONAL CITY MUNICIPAL CODE BY ADDING A NEW CHAPTER 6.10 - CABLE TELEVISION BE IT ORDAINED by the City Council of the City of National City, California that there is hereby added to the Municipal Code of National City, a new chapter 6.10, which is to read as follows: Sections: Chapter 6.10 CABLE TELEVISION 6.10.010 Definitions. 6.10.020 Non -Exclusive Franchise to Operate. 6.10.030 Uses Permitted. 6.10.040 Regulation of Service and Rates. 6.10.050 Duration of Franchise. 6.10.060 Franchise Fees. 6.10.070 Limitations of Franchise. 6. 10.080 Rights Reserved to the City. 6.10.085 Resolution of Disputes. 6.10.086 Penalties for Violation. 6.10.090 Permits, Installation and Service. 6.10.100 Location of Grantee's Properties. 6.10.110 Removal or Abandonment of Property of Grantee. 6. 1 0. 1 20 Failure to Perform Street Work. 6.10.130 .Faithful Performance Bond. 6.10.140 Protection of City Against Liability. 6.10.150 Inspection of Property and Records. 6.10.160 Minimum Operational Standards and Related Testing Procedures. 6.1 0.1 70 Technological Developments. 6.10.180 System Compatibility and Connectability. 6.10.190 Miscellaneous Provisions. 6.10.191 Exceptions to Extension of Service Requirements. 6.10.192 System Extensions to Excepted Areas. 6.10.200 Adoption of Rules and Regulations by the City Council. 6.10.210 Application for Franchise. 6.10.220 Effect of Annexations. 6.10.230 Effect of Preemption. 6.10.240 Locking Devices to Permit Exercise of Parental Discretion and Adequacy of Signal Scrambling Procedures. 6.10.250 Violations. 6.10.260 Revocation of Franchise. 6.10.270 Application of Chapter. 6.10.010 Definitions. For the purpose of this Chapter, the following terms, phrases, words and their derivatives shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. A. CITY. The term "City" shall mean the City of National City in its present incorporated form or in any later recognized, consolidated, enlarged or reincorporated form. B. COUNCIL. The term "Council" shall mean the present governing body of the City, or any future board constituting the legislative body of the City. C. PERSON. The term "Person" shall mean any individual, firm, partnership, association, corporation, company or organization of any kind. D. GRANTEE. The term "Grantee" shall mean the person, firm or corporation to whom or which a franchise under this chapter is granted by the Council, and the lawful successor or assignee of said person, firm or corporation. E. CABLE TELEVISION SYSTEM. The term "Cable Television System" or "CATV System" shall mean a system franchised pursuant to this Chapter which employs microwave, wires, waveguides, coaxial cables or other conductors, equipment or facilities designed, constructed or used for any or all of the following purposes: I. collecting or amplifying local and distant broadcast television, satellite, microwave or radio signals and distributing and transmitting them; 2. transmitting original cablecast programming not received through television broadcast signals; 3. transmitting television pictures, film and video tape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers; 4. transmitting or receiving two-way signals or transmissions as ancillary services; S. providing ancillary services such as burglar and fire alarm service, facsimile service or home shopping or banking services; 6. providing data transfer capability in any shape or form, including that of a security system 7. transmitting or receiving all other signals whether digital, voice or audiovisual. 2 F. SUBSCRIBERS or USERS. The terms "subscribers" or "Users" shall mean any person(s) or entity(ies) lawfully receiving for any purpose, any service of the Grantee's cable television system including, but not limited to, the conventional cable television system service of retransmission of television broadcast, satellite, microwave or radio signals, Grantee's original cablecasting, local government, education and public access channel cablecasting and other services such as leasing of channels, data and facsimile transmissions and police, fire and similar public service communications. G. GROSS ANNUAL RECEIPTS. The term "Gross Annual Receipts" shall mean any and all compensation and other consideration, in any form whatsoever, and any contributing grant or subsidy received directly or indirectly by Grantee from: I. subscribers or users in payment for any and all CATV system signals, reception and services whether said signals, reception or services are included within the terms "Basic Subscriber Services" or "Non Basic Services" as said terms are defined herein, as well as any installation or line extension charges therefor; 2. any fees or income received by the Grantee for the lease or rental, and compensation for any service in connection therewith, of any channel permitted or designated by the Federal Communications Commission to be so leased or rented; 3. any other compensation for utilization of or connection to the property of Grantee used within the City, including the sale, rental or provision to the subscriber of any equipment, parts or add-ons to be used in connection with the CATV system; 4. notwithstanding the above, Gross Annual Receipts shall not include any bad debt or taxes on services furnished by the Grantee and imposed directly on any subscribers or users by any City, State or other governmental unit and collected by the Grantee for such governmental unit. H. BASIC SUBSCRIBER SERVICES. The term "Basic Subscriber Services" shall mean and include the delivery by the Grantee for one monthly fee to all subscribers within the confines of its franchise area of: 3 I. all signals of over -the -air -television broadcast required to be carried by FCC rules and or all those over -the -air -signals which are received and transmitted in the community without the aid of a cable television system or similar apparatus with the exception of lowpower (Grade B) signals which are not required to be carried by FCC license; 2. all satellite signals received and transmitted in the community by the Grantee; with the exception pay or premium or tiered services for which an individual per -channel, per -program or per program package charge to subscribers is made; 3. all public, local education, local government, local origination, public access and institutional channels and signals; 4. other channels, signals (including microwave) programs and services, provided by the Grantee as part of the Basic Subscriber Service package. I. NON BASIC SERVICES. The term "Non Basic Services" shall mean and include channels, signals, programs and services not provided as part of the "Basic Subscriber Services" package, as defined herein above. Non Basic Services shall include: I. pay premium or tiered services for which an individual per -channel per -program or per program package charge to subscribers is made; 2. ancillary services such as burglar and fire alarm service, facsimile service or home shopping or banking service for which an individual per -subscriber charge is made. 3. equipment and appurtenances representing technological developments and enhancements in the field which the Grantee may, from time to time, make available to subscribers, provided that subscribers have the option of not acquiring said additional equipment or appurtenances and further, provided that the exercise of the option not to purchase shall, in no way, affect a subscriber's existing service or preclude him from receiving "Basic Subscriber Services" as defined herein. 4. other services not provided under Basic Subscriber Services as defined herein. 4 J. FRANCHISE AREA. The term "Franchise Area" shall mean the territory within the City throughout which Grantee shall be authorized in its franchise ordinance, to construct, maintain and operate its CATV system and includes any enlargements thereof and additions thereto. K. FEDERAL COMMUNICATIONS COMMISSION OR 'FCC.' The term Federal Communications Commission shall mean the existing federal agency of that name as constituted by the Communications Act of 1934 or any successor agency created by the United States Congress. 6.10.020 Non -Exclusive Franchise to Operate. A franchise to construct, operate and maintain a cable television system within all or any portion of the incorporated area of the City of National City may be granted by the Council to any person, firm or corporation, offering to furnish and provide such system pursuant to the terms and provisions of this chapter. Any such franchises shall be non-exclusive and the City reserves the right to grant a similar franchise to any other person or firm at any time. No provision of this chapter may be construed as to require the granting of a franchise when in the opinion of the Council it is not in the public interest to do so. Neither the granting of a competitive franchise or facilities to a franchisee or action by the City, which duplicates or parallels facilities and/or grants there under, shall be deemed to be an act of condemnation or inverse condemnation by the City. This franchise being non-exclusive, the City remains free to grant any and all duplicate or competitive rights, or exercise the same itself, that City in its wisdom decides are in the public interest. 6.10.030 Uses Permitted. Any franchise granted pursuant to the provisions of this chapter shall authorize and permit the Grantee subject to prior receipt of all applicable City permits and approvals to engage in the business of operating and providing a CATV system in the City of National City and for that purpose to erect, install, construct, operate, repair, replace, reconstruct, maintain and retain in, on, over, under, upon, across and along any public highways, street, alley, public way or public place, such poles, 5 wires, cable, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments and other property as may be necessary and appurtenant to the CATV system; and in addition, so to use, operate and provide similar facilities on properties rented or leased from other persons, firms or corporations including, but not limited to, a public utility or other Grantee franchised or permitted to do business in the City of National City. The Grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable it to exercise its rights and perform its obligations under the franchise, and to insure an uninterrupted service to each and all of its customers; provided, however, that such rules, regulations, terms and conditions shall not be in conflict with the provisions hereof or of the Grantee's franchise ordinance, the laws of the City of National City or the laws of the State of California, or of the United States of America. The Grantee shall have authority to trim trees upon and overhanging streets, alleys, sidewalks and public places of the City so as to prevent the branches of such trees from coming in contact with the wires and cables or interfering with microwave transmissions of Grantee, all trimming to be done under the supervision and direction of the City and at the expense of Grantee. 6.10.040 Regulation of Service and Rates. A. The City Council, subject to applicable Federal and State laws, shall at all times and from time -to -time during the term of any franchise granted hereunder, have the power to adopt and enforce and Grantee shall conform to reasonable rules, regulations and standards of performance pertaining to the system of Grantee. B. The City Council shall have the authority to establish or approve all subscriber, installation and other incidental rates and charges for Basic Subscriber Services as defined herein pursuant to the following procedures: 6 I. when the Grantee proposes to fix or increase its rates for Basic Subscriber services, it shall notify the City Manager in writing, a minimum of ninety (90) days before the proposed fixing or increase is scheduled to take effect; 2. the Grantee's proposal for rates or a rate adjustment shall include, but not necessarily be limited to, the following information: a. balance sheet; b. income statement; c. statement of sources and application of funds; d. statement of current and projected subscribers and subscriber penetration ratio; e. statement of any proposed system service enhancements which a rate adjustment would directly facilitate; f. survey of rates for similar services throughout the Grantee's other franchise areas in San Diego County. g• any other related items of information which the City Manager may require or the Grantee may wish to include in support of its request; 3. Upon receipt of the Grantee's written request, the City Manager shall evaluate the proposal and determine whether to recommend to the City Council that it exercise its rate regulation authority. The City Manager may appoint a hearing officer to act in his place hereunder. The City Manager's or Hearing Officer's report and recommendations along with any supporting staff or consultants' recommendations shall be submitted to the City Council within sixty (60) days of receipt of the Grantee's original request. If the City Manager determines not to recommend to the City Council that it exercise its authority hereunder, the City Manager shall within sixty (60) days of receipt of the Grantees original request file with the City Council notification of intent to approve the increase and thereafter, unless the Council directs otherwise shall notify the Grantee in writing of approval of the increase. 7 4. The City Council, upon receipt of the City Manager's findings and conclusions shall determine whether to exercise its rate regulation authority. 5. Should the City Council decide to exercise its rate regulation authority, it shall first pass its resolution of intention to do so, describing and stating any rates or charges to be changed, the reasons of the Council therefore, fixing a day, hour and place certain when and where cry persons having any interest therein may appear before the Council and be heard and directing the City Clerk to publish said resolution at least once, within fifteen (15) days of the passage thereof. The City Clerk shall cause such resolution to be published in a newspaper of general circulation within the City, and the same shall be published and a copy thereof shall be mailed to any Grantee hereunder at least ten (10) days prior to the date specified for hearing thereon. At the time set for such hearing, or at any adjournment thereof, the Council shall proceed to hear and pass on all presentations made before it, and the decision of the Council thereon shall be final and conclusive. If the Council shall find that the changing of any rates or charges of Grantee to Subscribers will not be detrimental or injurious to the best interests and welfare of the Subscribers and of the City then the Council shall, by resolution, authorize the change of any rates or charges of Grantee to subscribers as shall be deemed reasonable by the Council in the premises; and such resolution shall thereupon become and shall be a part of any franchise granted hereunder and affected thereby. C. In considering the Grantee's request for an adjustment in rates, the City shall take the following factors into consideration: I. any staff or consultants' reports and recommendations; 2. the ability of the Grantee to render system services and to derive a reasonable profit therefrom under the existing rate schedule and the proposed rate schedule; 3. the efficiency and effectiveness of the Grantee's operations; Grantee; 4. the quantity and quality of services offered by 5. the effect of denial or reduction in the requested amount of increase upon the Grantee's ability to provide necessary or desirable system enhancements; 6. the capital cost of the system less depreciation; 7. the extent of which the Grantee has adhered to the terms of its franchise agreement; 8. time elapsed since the last rate increase; 9. level of subscriber complaints; 10. comparison with rates charged in other jurisdictions; I I. statement of depreciated value of plant in service (original cost after straight line depreciation); 12. other factors which the City may deem relevant or necessary to the rendering of a decision. D. If the City fails to render a formal decision either accepting, rejecting, modifying or deferring Grantee's request for a rate adjustment within ninety (90) days after the City Manager's receipt of the Grantee's original request, the Grantee shall immediately thereafter subject to the provisions of Setion 6.10.040E, be entitled to put its proposed new rates, as specified in its original request into effect. E. Grantee shall notify all subscribers within its franchise area of any approved rate increase a minimum of thirty (30) days prior to the date the approved new rates are scheduled to go into effect. 6.10.050 Duration of Franchise. Any franchise, granted by by the City Council pursuant to this Chapter, shall be for a specified term as set forth in the ordinance granting said franchise. Any such franchise may be terminated prior to its date of expiration by the City Council as specified in this Chapter. 6.10.060 Franchise Fees. 9 A. ACCEPTANCE FEE. The Grantee of any franchise granted pursuant to this chapter may be required to pay to the City upon acceptance of such franchise a fee certain in an amount to be determined or approved by the City Council. Any such amount shall be contained in the Grantee's franchise ordinance. B. ANNUAL FRANCHISE FEE. The Grantee of any franchise under this chapter shall pay annually to the City during the life of such franchise a fixed percentage of the gross annual receipts of the Grantee as defined herein. Such percentage and the annual payment date shall be as set forth in the ordinance granting the franchise. It shall be the duty of the Grantee to pay to the City, within ten (10)days after the time for filing its annual statement, any unpaid balance for the calendar year covered by such statement. In the event that the above payment is not received by the City within the specified time, Grantee shall pay to the City a penalty of one percent (I %) per month on the unpaid balance in addition thereto. The right is reserved to the City of audit and recomputation of any and all amounts paid as franchise fees under this chapter, and no acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable under this chapter or for the performance of any obligation thereunder. If the audit discovers an underpayment of required fees in an amount totalling more than five percent (5%), the Grantee shall pay the cost of the audit. In the event of any holding over after expiration or other termination of said franchise, without the consent of the City, the Grantee shall continue to pay to the City franchise fees in the percentage amount specified in the franchise ordinance based upon its gross monthly revenues during said period. Said period to be determined by the City Council. 6.10.070 Limitations of Franchise. A. No privilege or exemption shall be granted or conferred by a franchise granted pursuant to this chapter except those specifically prescribed herein. 10 of the Grantee is subject to all requirements B. The ) applicable ordinances, rules, regulations, fees and specifications of the City heretofore or hereafter enacted or established, including, but not limited to, those concerning street work, street excavation, use, removal, and relocation of property within a street, and other street work. C. All transmission and distribution structures, lines and equipment of the Grantee within the City shall be so located as to cause minimum interference with the proper use of streets, alleys and other public ways and places, and to cause minimum interference with the rights or reasonable convenience of property owners who adjoin any of the said streets, alleys or other public ways and places. D. In case of any disturbance of pavement, sidewalk, driveway or other surfacing, by the Grantee, the Grantee shall, at its own cost and expense and in a manner approved by the Engineering Department of the city, replace and restore all paving, sidewalk, driveway or surface of any street or alley disturbed, in as good condition as before said work was commenced. E. The Grantee shall, at its expense, protect, support, temporarily disconnect, relocate or remove from any public street, alley or other public way, any property of the Grantee when required by the City Engineer and/or by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signals, lines, and tracks or any other type of structures or improvements by governmental agencies when acting in a governmental capacity, or any other structures or public improvements; provided, however, the Grantee shall in all cases have the privileges and be subject to the obligations to abandon any property of the Grantee in place, as provided in Section 6.10.110 hereof. F. Whenever it is necessary to shut off or interrupt service for the purpose of making repairs, adjustments, alterations or installations, the Grantee shall do so at such time as will cause the least amount of inconvenience to its customers and unless such interruption, is unforeseen and immediately necessary, it shall, where reasonably possible, give reasonable notice thereof to its customers. G. Any such franchise shall be a privilege to be held in trust by the original Grantee. It cannot in any event be sold, transferred, leased, assigned or disposed of, in whole or in part, either by forced or involuntary sale, merger, consolidation, stock sale or otherwise, without prior consent of the Council expressed by resolution, and then only under such conditions as may be reasonably prescribed. Such approval shall not be unreasonably withheld. Additionally, the Grantee shall file with the Council within thirty (30) days after any sale, transfer, assignment, or lease of the franchise or any part thereof, or any of the rights or privilege granted thereby, written evidence of the transaction certified to by the Grantee or its duly authorized officers. The proposed assignee must show financial responsibility and must agree to comply with all provisions of this chapter. No such consent shall be required for a transfer in trust, mortgage or other hypothecation as a whole, to secure an indebtedness. Any such transfer, lease assignment or disposition which is implemented without prior approval of the City Council shall result in forfeiture of the Grantee's franchise. H. Time shall be of the essence in any such franchise granted. The Grantee shall not be relieved of its obligation to comply promptly with any of the provisions of this chapter by failure of the City to enforce prompt compliance. I. Any right or power in, or duty impressed upon any officer, employer, department or board of the City shall be subject to transfer by the City to any other officer, employee or department of the City. J. Any such franchise granted shall not relieve the Grantee of any obligation involved in obtaining pole space from any department of the City, utility company, or from others maintaining poles in streets. K. Any Grantee hereunder agrees, through its acceptance of a franchise hereunder, to construct, operate and maintain its CATV system in strict accordance with its franchise and this chapter and furthermore agrees that any franchise granted hereunder shall operate as a contractual obligation between the Grantee and the City by which both parties agree to abide in good faith. 12 L. The Grantee shall have no recourse whatsoever against the City for any loss cost, expense or damage, arising out of any provision at this Chapter or its enforcement. 6.10.080 Rights Reserved to the City. A. No franchise granted under this chapter in any way impairs or affects any legal rights of the City. B. No franchise granted under this chapter shall ever be given any value before any court or other public authority in any proceeding of any character other than fair market value. C. There is hereby reserved to the City every right and power which is required to be herein reserved or provided by any ordinance or resolution of the City, or by the laws or constitutions of the State or federal government and the Grantee, by its acceptance of any franchise, agrees to be bound thereby and to comply with any lawful action or requirements of the City in its exercise of such rights or power, heretofore or hereafter enacted or established. D. Neither the granting of a franchise hereunder nor any of the provisions contained herein shall be construed to prevent the City from granting any identical, or similar, franchise to any other person, firm or corporation, either within or outside the designated area of any franchise. E. The City Council may do all things which are necessary and lawful in the exercise of its jurisdiction under this chapter. 6.10.085 Resolution of Disputes. The City Manager of the City of National City is hereby authorized and empowered to act to adjust, settle or compromise any controversy arising from the operations of any Grantee under this chapter or relating to the construction or application of any of the terms of this Chapter, either on behalf of the City, or any subscriber, in the best interest of the public. The City Manager shall provide the Grantee and all interested parties with notice and an opportunity to be heard prior to rendering a decision hereunder. 13 No formal proceedings or rules of evidence are required by this section. The City Manager may appoint a hearing officer to act in his place and to exercise his authority hereunder. Either Grantee, or any member of the public who may be dissatisfied with the decision of the City Manager may appeal the matter to the City Council. The Council may accept, reject or modify the decision of the City Manager, and the Council may adjust, settle or compromise any controversy arising from the operations of any Grantee or from the application of any provisions of this chapter. The Grantee shall be notified in writing of the decision of the City Council within ten (10) days of said decision. 6.10.086 Penalties for Violations. The City may, at its sole option and in addition to any other remedies legally available, subject to the provisions of Section 6.10.086 D, apply any or all of the following penalties for a material breach of the provisions of this Chapter or any franchise ordinance hereunder: A. PENALTIES FOR DELAYS IN REQUIRED SYSTEM CONSTRUCTION OR REBUILD ACTIVITY. 1. Reduction in the duration of the franchise on a month -to -month basis for each month of delay exceeding six months; 2. Forfeiture of performance bonds; 3. Revocation of the franchise pursuant to the provisions of Section 6.10.260. B. PENALTIES FOR MATERIAL BREACHES OTHER THAN CONSTRUCTION DELAYS. I. Imposition of a financial penalty not to exceed One Thousand Dollars ($1,000) per day for Grantee's individual willful and/or repeated violation or failure to take corrective action with respect to a violation; 2. Imposition of a requirement that the Grantee make rebates or payment to Subscribers or classes of Subscribers in such amount as the City may deem reasonable; 14 3. Imposition of a requirement that the Grantee correct or otherwise remedy the violation prior to any pending rate increase becoming effective; 4. Revocation of the franchise pursuant to the provisions of Section 6.10.260. C. DETERMINATION OF APPROPRIATE PENALTY. In determining which remedy or remedies are appropriate for Grantee's violation, the City shall take into account the nature of the violation, the person or persons bearing the impact of the violation, the nature of the remedy required in order to prevent further such violations, the actual cost of damage associated with the violation and other such matters as the City may deem appropriate. The City, in determining any penalty, shall make written findings of fact which address the considerations listed in this Section. D. HEARING AND APPEAL PROCEDURE. In making determinations relative to violations hereunder, City shall afford Grantee due process of law in accordance with the hearing and appeal procedures established in Section 6.10.085. 6.10.090 Permits, Installation and Service. A. Within thirty (30) days after acceptance of any franchise hereunder the Grantee shall proceed with due diligence to obtain all necessary permits and authorizations which are required in the conduct of its business including, but not limited to, any utility joint use attachment agreements, carrier licenses, and any other permits, licenses, and authorizations to be granted by duly constituted regulatory agencies having jurisdiction over the operation of CATV systems or their associated transmission facilities. B. Within ninety (90) days after obtaining all necessary permits, licenses and authorizations, Grantee shall commence construction and installation of the CATV system in accordance with an installation schedule approved by the City Council. 15 C. Within one hundred eighty (180) days after the commencement of construction and installation of the system, Grantee shall proceed to render service to subscribers, and the completion of the construction and installation shall be pursued with reasonable diligence to the end that service shall be made available to all potential subscribers throughout the entire franchise area within such time and upon such conditions as shall be determined by the City Council. D. Failure to perform in accordance with the foregoing shall be grounds for termination of the franchise. E. The City Manager may extend the time for obtaining necessary permits and authorizations and for beginning construction and installation for additional periods in the event the Grantee, acting in good faith, experiences delays by reason of circumstances beyond its control. In such event the City Manager shall so advise the Council. 6.10.100 Location of Grantee's Properties. A. Any poles, wires, cable lines, conduits, or other properties of the Grantee to be constructed or installed in streets, alleys or other public places shall be so constructed or installed only at such locations and in such manner as shall be approved by the City Engineer acting in the exercise of his professional capacities and exercising reasonable discretion. Prior to proceeding with any such installations, Grantee shall first apply for and be granted a permit on forms and in a manner prescribed by the City Engineer. B. The Grantee shall not install or erect any facilities or apparatus on public property or rights -of -way within the City, except those installed or erected upon public utility facilities now existing, without written approval of the City Engineer of the City. C. In those areas and portions of the City where both the transmission and distribution facilities of the public utility providing telephone service and those of the utility providing electric service are underground or here after may be placed underground, then the Grantee shall likewise construct, operate, and maintain all of its transmission and distribution facilities underground. Amplifiers in 16 Grantee's transmission and distribution lines may be housed in appropriate facilities upon the surface of the ground subject to approval by the City Engineer of the City. 6.120.110 Removal or Abandonment of Property of Grantee. A. In the event that the use of any part of the CATV system is discontinued for any reason for a continuous period of three (3) months, or in the event such system or property has been installed in any street, alley or public place without complying with the requirements of its franchise or ordinance, or the franchise has been terminated, cancelled or has expired, the Grantee shall promptly remove from the streets, alleys or public places all such property and poles of such system other than any which the City Engineer may permit or require to be abandoned in place. In the event of any such removal, the Grantee shall promptly restore the street, alley or other area from which such property has been removed to a condition satisfactory to the City Engineer. B. Any property of the Grantee remaining in place ninety (90) days after the termination of the franchise shall be considered permanently abandoned. The City Manager may extend such time by an amount not to exceed an additional thirty (30) days. C. Any property of the Grantee to be abandoned in place shall be abandoned in such manner as the City Engineer shall prescribe. Upon permanent abandonment of the property of the Grantee in place, the property shall become that of the City, and the Grantee shall submit to the City Council an instrument, to be approved by the City Attorney, transferring to the City the ownership of such property. D. The City may remove abandoned property at Grantee's expense. 6.10.120 Failure to Perform Street Work. Upon failure of the Grantee to commence, diligently pursue, or complete any work required by law or by the provisions of this chapter or by its franchise to be done in any street alley or other public place within the 17 time prescribed, and to the satisfaction of the City Engineer, the City Manager may at his option and through whatever means deemed necessary, cause such work to be done, and the Grantee shall pay to the City the cost thereof in the itemized amounts reported by the City Manager to the Grantee, provided, however, that before said action shall be taken by the City, the Grantee shall, if possible, be given thirty (30) days written notice to correct said work. Said payment shall be made by Grantee within thirty (30) days after receipt of the referenced itemized report. 6.10.130 Faithful Performance Bond. T h e G r ante e shall, concurrently with the filing of an acceptance of award of any franchise granted under this chapter, file with the City Clerk and at all times during original system construction or required system re -build activity maintain in full force and effect for the term of such franchise or renewal thereof or until completion of removal obligations at termination, at Grantee's sole expense, a corporate surety bond in an amount and form to be approved in advance by the City Attorney, said bond to be in the minimum amount of One Hundred Thousand Dollars ($100,000.), renewable annually, and conditioned upon the faithful performance of Grantee, and upon the further condition that in the event Grantee shall fail to comply with any one or more of the provisions of this chapter or of the franchise issued to the Grantee hereunder there shall be recoverable jointly and severally from the principal and surety of such bond any damages or loss suffered by the City as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the Grantee as prescribed hereby which may be in default, plus a reasonable allowance for attorney's fees and costs, up to the full amount of the bond, said condition to be a continuing obligation for the duration of such franchise or any renewal thereof, and thereafter until the Grantee has liquidated all of its obligations with the City that may have arisen from the acceptance of said franchise by the Grantee or from its exercise of any privilege therein granted including any removal obligations. The 18 bond shall provide that thirty (30) days' prior written notice of intention not to renew, cancellation, or material change be given to the City. Neither the provisions of this section, nor any bond accepted by the City pursuant thereto, nor any damage recovered by the City thereunder shall be construed to excuse faithful performance by the Grantee or limit the liability of the Grantee under any franchise issued hereunder or for damages, either to the full amount of the bond or otherwise. 6.10.140 Protection of City Against Liability. A. INDEMNIFICATION. The Grantee shall concurrently with the filing of an acceptance of award of any franchise granted hereunder agree to indemnify and hold harmless the City, its officers, boards, commissions, committees, agents and employees against and from any and all claims, demands, actions, suits, liabilities, and judgments of any and every kind and nature and regardless of the merit of same, except those claims which are determined by a court of competent jurisdiction to have resulted from the negligence or other acts of the City and said agents, employees and officers, arising out of or related to the exercise or enjoyment of any franchise granted to Grantee pursuant to the provisions of this chapter, including claims, demands, actions, suits, liabilities and judgments based upon any infringement or violation or alleged violation of any copyright; and Grantee shall reimburse the City for any costs and expenses incurred by City in defending against any such claim or demand or action, including any attorney fees, accountant fees, expert witness or consultant fees, court costs, per diem expenses, travel and living expenses; and Grantee shall upon demand of the City appear in and defend any and all suits, actions or other legal proceedings whether judicial, quasi-judicial, administrative or otherwise, brought by third persons or duly constituted authorities against or affecting the City, its officers, boards, commissions, agents or employees and arising out of or related to the exercise or enjoyment of such franchise, or the granting thereof by the City; the foregoing 19 obligation shall exist and continue without reference to or limitation by the amount of any bond, policy of insurance, deposit, undertaking or other security required hereunder; provided that neither Grantee nor City shall make or enter into any compromise or settlement of any claim, demand, action or suit without first giving the other ten (10) days' prior written notice of its intention to do so. B. COMPREHENSIVE LIABILITY INSURANCE. Upon acceptance of a franchise granted hereunder, the Grantee shall file with the City Clerk a Certificate of Insurance and shall thereafter during the entire term of such franchise maintain in full force and effect, at its own expense, a general comprehensive liability insurance policy or policies which shall insure Grantee and provide primary coverage for the City, its officers, boards, commissions, agents and employees, against liability for loss or liability for personal injury, death, property damage, and copyright infringement occasioned by any activity or operation of Grantee under such franchise. Such policy or policies shall be issued in a form and amount approved by the City Attorney, with minimum combined single limits of liability coverage in the amount of One Million Dollars ($I,000,000). The policy or policies shall name the City, its officers, boards, commissions, committees, agents and employees, as additional insureds and shall contain a provision that a written notice of any cancellation, modification or reduction in coverage of said policy shall be delivered to the City Clerk thirty (30) days in advance of the effective date thereof. No franchise granted under this chapter shall be effective unless and until each of the foregoing certificates of insurance as required in this subsection have been delivered to the City Clerk. 6.10.150 Inspection of Property and Records. A. At all reasonable times, the Grantee shall permit any duly authorized representative of the City to examine all property of the Grantee in the public right of way, together with any appurtenant property of the Grantee in the public right-of-way situated within or outside the City, and to examine and transcribe any and all maps and 20 other necessary records kept or maintained by the Grantee or under its control which deal with the operations, affairs, transactions or property of the Grantee within the franchise area with respect thereto. If any of such maps or records are not kept in the City, or upon reasonable request made available to the City, and if the City Manager shall determine that an examination thereof is necessary or appropriate, then all travel and maintenance expense necessarily incurred in making such examination shall be paid by the Grantee. B. The Grantee shall prepare and furnish to the City Manager at the times and in the form prescribed such reports with respect to its operations, affairs, transactions or property, as may be reasonably necessary or appropriate to the performance of any of the rights, functions or duties of the City or any of its officers in connection with the franchise. C. The Grantee shall, at all times, make and keep in the Civic Center full and complete plans and records showing the exact location of all CATV system equipment installed or in use in streets, alleys and public places in the City. The Grantee shall file with the City Engineer, without charge, a current set of maps drawn to scale showing all CATV system equipment installed and in place in streets, alleys and other public places of the City. 6.10.160 Minimum Operational Standards and Related Testing Procedures. A. Any CATV system constructed under this chapter shall be installed and maintained in accordance with the best accepted standards of the industry to the effect that subscribers shall receive the best possible service. Specifically, the system must, in all respects, meet or exceed technical standards of operation as developed by the Federal Communications Commission or any successor agency. Specific technical standards of operation associated with any particular Grantee shall be contained in the ordinance granting the subject franchise. 21 B. The Grantee shall submit, within sixty (60) days after the effective date of the franchise agreement, a detailed test plan describing the methods and schedules for testing the CATV system on an ongoing basis to determine compliance with the provisions of the franchise agreement. The tests for Basic Subscriber Services shall be performed periodically, at intervals no greater than every six (6) months, throughout the service area. At least eight (8) of the selected locations shall be at the far end of the distribution trunk cables. Written test results shall be submitted in a report to the City Manager. If more than ten (10) percent of the locations tested fail to meet the FCC performance standards, the Grantee shall be required to indicate what corrective measures have been taken, and the entire test may be repeated at the discretion of the City Manager. C. At any time after commencement of service to subcr i bers the City may require additional tests, full or partial repeat tests, different test procedures, or tests involving a specific subscriber's terminal. Requests for such additional tests shall be made on the basis of complaints received or other evidence indicating an unresolved controversy or significant noncompliance, and such tests will be limited to the particular matter in controversy. The City will endeavor to so arrange its requests for such special tests so as to minimize hardship or inconvenience to Grantee or to the subscriber. 6.10.170 Technological Developments. A. It is the desire of the City that all CATV systems franchised to operate within the City shall maintain, operate and where feasible, modify the CATV system to ensure its performance in accordance with the best accepted and proven standards of the cable television industry. B. The Grantee shall, provide technical improvements and modifications to ensure the continued operation of the CATV system in accordance with the best accepted and proven standards of the cable television industry. Such improvements and modifications shall include, but not necessarily be limited to: 22 I. continued availability and enhancement of national or international transmission capabilities via communications satellites; 2. enhancement and expansion of system channel capacity and programming; 3. improvement and expansion of public access, local origination, local government, and local educational programming; 4. maintenance and improvement of the system physical plant in accordance with the best accepted and proven CATV industry practices and FCC regulations; 5. consideration of two-way interactive capability, programming and services including institutional services; 6. application of any other new technologies or advance in the CATV field designed to enhance and improve CATV services. C. In making determinations relative to the financial and technical feasibility or appropriateness of specific system improvements or modifications and the Grantee's compliance with this Section, the City shall take the following factors into consideration: I. whether there exists a reasonable subscriber demand and, where appropriate, demonstrated willingness to pay for the proposed improvements or modifications; 2. whether the technology associated with the proposed improvements or modifications has been tested and proven reliable; 3. whether the Grantee is financially and technically able to provide the proposed improvements or modifications; 4. whether the provision of the proposed improvements or modifications will allow the Grantee a reasonable return on its investment in such proposed improvements or modifications. 5. whether the proposed improvements or modifications are provided or planned for in the Grantees' other cable television systems in San Diego County. 23 D. In implementing the provisions of this Section, the City may request, as it deems necessary, and the Grantee shall provide, a report regarding the feasibility or appropriateness of implementing specific system improvements or modifications deemed desirable by the City. Additionally, the Grantee shall provide in December of each year, an annual status report to the City Manager relative to implementation of specific system enhancements as provided for in the franchise ordinance or progress toward implementation of system enhancements as referenced in 6.10.170B. All reports required of Grantee under this subsection shall specifically address the factors included under Subsection 6.I0.170C and shall include a section which compares the CATV system services currently provided by the Grantee within National City with similar services provided by the Grantee in all its other franchise areas in San Diego County. Additionally, upon request of the City Manager, the Grantee shall provide system services information for any or all of its franchises in California. The City Manager's office will be responsible for obtaining comparative service information relative understood that the independently retain to CATV City and technical information relative to the television industry. systems other than the Grantee's. It is any Grantee hereunder may mutually or consultants for the purpose of obtaining current "state of the art" in the cable E. The Grantee shall provide the City with advance written notification of any system improvements or modifications proposed for implementation within its respective franchise area. 6.10.180 System Compatibility and Connectibility. A. It is the desire of the City that all CATV systems franchised to operate within the City shall be compatible and interconnectible with one another and with systems in adjacent cities. B. When it is financially and technically feasible, legally possible and mutually agreeable between the proposed interconnected systems the Grantee shall negotiate the construction, 24 number operation and modification of its system to interconnect it with all other adjacent CATV systems within and outside the City for the purpose of sharing programming. 6.10.190 Miscellaneous Provisions. A. The Grantee shall pay to the City a sum of money sufficient to reimburse it for expenses incurred by it in publishing legal notices and ordinances in connection with the granting of a franchise pursuant to the provisions of this chapter; such payment to be made within thirty (30) days after the City shall furnish such Grantee with a written statement of such expense. B. The Grantee shall maintain a toll twenty-four (24) hours per day, seven (7) days a free telephone week, so that CATV maintenance service shall be promptly available to subscribers and shall also keep a maintenance service log indicating the nature of each complaint, when it was received, and how and when it was resolved. This log shall be maintained for at least two (2) years and shall be available for inspection by the City. C. The Grantee shall provide each new subscriber with information on how to register inquiries or complaints and shall indicate therein that if the subscriber feels that the Grantee has failed to resolve his complaint, the subscriber should contact the City Manager's office for further action. D. No person, firm or corporation in the existing service area of Grantee shall be arbitrarily refused service; provided, however, that Grantee shall not be required to provide service to any subscriber who does not pay the applicable connection fee(s) or monthly service charge(s) or to provide service as specified in Section 6.10.191. E. The City Council may, upon finding that extraordinary circumstances applying to the land, buildings or CATV system do exist, waive any or all of the requirements of this chapter. 25 F. Grantee shall, without charge and upon request of the City Manager or appropriate public school official provide all basic subscriber services of its system as hereinafter provided: 1. One cable television connection to each City facility designated by the City Manager including, but not limited to, the Civic Center, Police stations, Fire stations, public libraries and other facilities that are owned, rented, leased or controlled by the City which are located within the Grantee's franchise area. Each such connection shall consist of, at a minimum, of a drop connection to the exterior of the building or property, and one outlet installation. 2. One cable television connection to each public school site designated by the Superintendent of Schools or other appropriate official. Each such connection shall consist of, at a minimum, a drop connection to the exterior outlet. referenced of the building and one 3. If connection of City or school facilities as in the preceding subsections presents substantial cost and other connection problems, the subject public agency and the Grantee shall mutually determine whether or not the benefit derived from such connection is justified in light of the cost, and if so, the connection procedure to be utilized and the timing of the connection. Specific facilities connection requirements may be included ordinance granted hereunder. 4. Grantee in any franchise shall continue service as presently offered to the City and public schools and guarantee access to additional services when such services become techologically and economically feasible or when said additional services are offered throughout the Grantee's franchise area. 6.10.191 Exceptions to Extension of Service Requirements. Grantee shall, subject to the provisions of Section 6.10.192, not be required to extend service into any area not previously 26 provided with cable television service, where the investment required per prospective subscriber is greater than the current maximum capital investment per subscriber throughout the City. 6.10.192 System Extensions to Excepted Areas. Grantee shall extend service to areas excluded from the mandatory extension provisions of Section 6.10.090 C. if the potential subscribers agree in writing to pay construction costs that exceed the "per subscriber" costs set forth in Section 6.10.191. Grantee shall commence construction of the cable service extension in these areas within one year of receiving the required written agreements. 6.10.200 Adoption of Rules and Regulations by the City Council. A. POWER TO ADOPT RULES AND REGULATIONS. The City Council is authorized to adopt by Resolution rules and regulations consistent with the provisions of this chapter governing the operation of CATV systems in the City and such rules and regulations shall apply to and shall govern the operations of the Grantee of any franchise granted pursuant to the provisions of this chapter. B. PROCEDURE FOR ADOPTING RULES AND REGULATIONS. The City Council may adopt rules or regulations consistent with the provisions of this Chapter or amend, modify, delete or otherwise change such rules and regulations previously adopted in the following manner: I. The City Council shall pass a resolution of intention describing the rules or regulations to be adopted, amended, modified, deleted or otherwise changed and set a day, hour and place for public hearing. Such resolution shall direct the City Clerk to publish the same at least once within fifteen (15) days of the passage thereof; 2. The City Clerk shall cause such resolution to be published at least once in the official newspaper of the City and shall cause a copy of same to be mailed or delivered to any Grantee not less than ten (10) days prior to the time fixed for hearing thereon; 27 3. At the time for public hearing or at any adjournment thereof, the City Council shall proceed to hear and pass upon such evidence, comments and objections as may be presented. Thereafter, the City Council, by its resolution, may adopt, amend, modify, delete, or otherwise change said rules and regulations. 6.10.210 Application for Franchise. A. Application for an original or renewal franchise hereunder shall be in accordance with the format and filing instructions approved by the Council. B. Prior to the granting of a franchise pursuant to this chapter, the Council shall pass a resolution declaring its intention to grant the same, stating the name of the proposed Grantee, the character of the franchise and the terms and conditions upon which it is proposed to be granted. Such resolution shall fix and set forth the day, hour and place when and where any persons having any interest therein or any objection to the granting thereof may appear before the Council and be heard thereon. It shall direct the City Clerk to publish said resolution at least once within fifteen (15) days of the passage thereof in an official newspaper of general circulation. Said notice shall be published at least ten (10) days prior to the date of hearing. At the time set for the hearing the Council shall proceed to hear and pass upon all protests and its decision thereon shall be final and conclusive. Thereafter, the Council may grant, modify or deny the franchise. 6.10.220 Effect of Annexations. A. In the event any new territory shall become annexed to the City, the City Council shall determine which Grantee or Grantees shall serve such new territory. B. In the event any portion of unincorporated territory covered by an existing franchise granted by the County of San Diego is annexed to the City prior to the time that the Grantee of such County franchise has commenced installation of a CATV system within said 28 territory, all rights acquired by said Grantee under its County franchise shall terminate as of the date on which the annexation to the City becomes effective. C. In the event any portion of unincorporated territory covered by an existing franchise granted by the County of San Diego is annexed to the City after the Grantee thereof has commenced or completed construction and installation of a CATV system within said territory, Diego or National the rights reserved under said franchise to the County of San to any officer thereof shall inure to the benefit of the City of City, and all regulatory provisions of this ordinance and any other rules and regulations applicable to CATV systems operating within the City, whether then in effect or subsequently adopted, shall be applicable to and binding upon said Grantee. Grantee shall, relative to the annexed territory, be obligated to pay franchise fees in an amount mutually determined by the City and Grantee. 6.10.230 Effect of Preemption. In the event the Federal Communications Commission or the Public Utilities Commission of the State of California or any other federal or state body or agency having jurisdiction shall now or hereafter exercise any paramount jurisdiction over the subject matter of any franchise hereunder, then to the extent such jurisdiction shall lawfully preempt or preclude the exercise of like jurisdiction by the City, the jurisdiction of the City shall, to the extent so preempted or precluded, cease and no longer exist, and the franchise shall be deemed amended accordingly provided, however, that only those provisions of the franchise so affected by the exercise of such paramount jurisdiction shall be amended and all other provisions of the franchise shall remain in full force and effect. 6.10.240 Locking Devices to Permit Exercise of Parental Discretion and Adequacy of Signal Scrambling Procedures. A. Grantee shall make available to its subscribers, upon request and for a nominal fee as fixed in its rate structure locking devices to permit exercise of parental control over programming. 29 B. Grantee shall insure through adequate signal scrambling or other techniques that pay or premium services for which subscribers do not pay the associated per channel or per program fee are not received by said subscribers. 6.10.250 Violations. A. It shall be unlawful for any person, firm or corporation to make or maintain any unauthorized connection in physical contact with any part of a franchised CATV system within the City for the purpose of taking or receiving or enabling himself or others to receive any television signals, radio signals, pictures, programs or sounds. B. It shall be unlawful for any person, firm or corporation, without the consent of the Grantee or property owner as appropriate, to willfully tamper with, remove or injure any cables, wires or equipment used for distribution of the CATV services of the Grantee. Violation of this subsection shall constitute a misdemeanor. C. From and after the effective date of this chapter, it shall be unlawful for any person to construct, install or maintain within any public street in the City or within any other public property of the City or within any privately owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the City, any equipment or facilities for distributing any television signals through a CATV system unless a franchise authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this chapter and unless such franchise is in full force and effect. 6.10.260 Revocation of Franchise. A. The City reserves the right to revoke any franchise granted hereunder and to rescind all rights and privileges associated with the franchise in the following circumstances, each of which shall represent a default and breach under this ordinance and the franchise grant: 30 I. If the Grantee should default in the performance of any of its material obligations under this ordinance or under such documents, contracts and other terms and provisions entered into by and between the City and the Grantee; 2. If the Grantee should fail to provide or maintain in full force and effect, the liability and indemnification coverages or the performance bond as required herein; 3. If any court of competent jurisdiction, the FCC or any state regulatory body by rules, decisions, or other action determines that any material provision of the franchise documents, including this ordinance, is invalid or unenforceable prior to the commencement of system construction; 4. If the Grantee should frequently violate any orders or rulings of any regulatory body having jurisdiction over the Grantee relative to this franchise unless such orders or rulings are being contested by the Grantee; 5. If the Grantee ceases to provide services for any reason within the control of the Grantee over the CATV system. The Grantee shall not, however, be declared at fault or be subject to any sanction under any provision of this chapter in any case in which performance of any such provision is prevented for reasons demonstrated to be beyond the Grantee's control. A fault shall not be deemed to be beyond the Grantee's control if committed by a corporation or other business entity in which the Grantee holds a controlling interest, whether held directly or indirectly; 6. If the Grantee attempts to evade any of the provisions of this ordinance or the franchise agreement or practices any fraud or deceit upon the City; 7. If the Grantee's construction schedule is delayed for more than eighteen (18) months later than any schedule contained in the Grantee's franchise agreement, including any extensions thereof; 8. If the Grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged a bankrupt. 31 B. The City may make a written demand that the Grantee comply with any such requirement, limitation, term, condition, rule or regulation or correct any action deemed cause for revocation. If the failure, refusal or neglect of the Grantee continues for a period of thirty (30) days following such written demand, the City may place its request for termination of the franchise upon a regular Council meeting agenda. The City shall cause to be served upon such Grantee, at least ten (10) days prior to the date of such Council meeting, a written notice of this intent to request such termination, and the time and place of the meeting, notice of which shall be published by the City Clerk at least once, ten (10) days before such meeting in a newspaper of general circulation within the City. C. The Council shall hear any persons interested at the time at the hearing, and shall determine, in its discretion, whether or not any failure, refusal or neglect by the Grantee was with just cause. No formal proceedings or formal rules of evidence shall apply at such hearing and the City Council may designate a Hearing Officer to make a report and recommendations. D. If such failure, refusal or neglect by the Grantee was with just cause, the Council shall direct the Grantee to comply within such time and manner and upon such terms and conditions as are deemed reasonable. E. If the Council shall determine such failure, refusal or neglect by the Grantee was without just cause, the Council may, by resolution, declare that the franchise of such Grantee shall be terminated and bond forfeited unless there be compliance by the Grantee within such period as the Council may fix. 6.10.270 Application of Chapter. This chapter shall upon the date it becomes effective and as it may subsequently be amended, apply to and govern the operation of any and all CATV franchises granted by the City of National City. In the event of any conflict between the provisions of this Chapter and those of any particular franchise ordinance, the provisions of the franchise ordinance shall govern. 32 r _ r PASSED AND ADOPTED this L L/ day of ATTEST: CITY CLERK 33 MAYOR 1984. Passed and adopted by the Council of the City of National City, California, on Apri 1 24, 1984 by the following vote, to -wit: Ayes: Councilmen Nays: Councilmen Absent: Councilmen Abstain: Councilmen AUTHENTICATED BY: Cooper, None Dalla, Van Dpvent =w., W4; g', , Morgan. None None KILE MORGAN Mayor of the City of National City, California City Clefk of the City of National Cit California By: Deputy I HEREBY CERTIFY that the foregoing ordinance was not finally adopted until seven calendar days had elapsed between the days of its introduction and the days of its final passage, to wit, on ....1vlar.oh....2:.,....192.4 and on April. 2.4.....19.8 4 I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or that the reading of said ordinance in full was dispensed with by a vote of not less than a majority of the members elected to the Council and that there was available for the consideration of each mem- ber of the Council and the public prior to the day of its passage a written or printed copy of said ordinance. I FURTHER CERTIFY that the above and foregoing is a full, true and cor- rect copy of ORDINANCE NO. i. 1/ ' of the City of National City, passed and adopted by the Council of said City on aptri ,..24.,...�.9 .4 (Seal) B City Clerk of the City of Natiofial City, California Deputy