HomeMy WebLinkAboutOrd 22 ORDINANCE NO. 22
AN ORDINANCE OF THE CITY OF CATHEDRAL CITY
ADDING CHAPTER 5. 10 TO THE CATHEDRAL CITY
MUNICIPAL CODE, ESTABLISHING A PROCEDURE
FOR THE GRANTING OF FRANCHISES FOR CABLE
TELEVISION SYSTEMS.
The city council of the City of Cathedral City does ordain as follows:
SECTION 1. A new chapter, to be numbered 5. 10 hereby is_.added .to the
Cathedral City Municipal Code, to read as follows:
Chapter 5. 10
CABLE TELEVISION SYSTEMS
Sections:
5. 10.010 Definitions.
5. 10.020 Franchise to install and operate.
5. 10.030 Cable television service.
5. 10.040 Franchise payments.
5. 10.050 Franchise term: duration and termination.
5. 10.060 Applications for franchise.
5. 10.070 Indemnifications: insurance.
5. 10.080 Acceptance of franchise.
5.10.090 Limitations of franchise.
5.10. 100 Rights reserved to the City.
5. 10. 110 Council to adopt rules and regulations.
5. 10. 120 Permits and construction.
5. 10. 130 Technical standards.
5. 10. 140 Miscellaneous provisions.
5.10. 150 Equal opportunity employment and affirmative
action plan.
5.10.160 Violations.
5.10.010 Definitions. For the purposes of this chapter, the following
terms, phrases, words, abbreviations, and their derivations shall have the
meaning given herein. When not inconsistent with the context, words used in
the present tense include the future tense, words in the plural number include
the singular number, and words in the singular number include the plural
number:
(1) "Franchise" shall mean and include any authorization granted here-
under in terms of a franchise, privilege, permit, license or otherwise to
construct, operate and maintain a cable television system within all or a
specified area in the City. Any such authorization, in whatever form granted,
shall not mean and include any license or permit required for the privilege of
transacting and carrying on a business within the City as required by other
ordinances and laws of this City.
(2) "Person" shall mean any natural person and all domestic and foreign
corporations, associations, syndicates, joint stock corporations, partnerships,
of every kind, clubs, business or common law trusts, and societies.
(3) "Grantee" shall mean the person, firm or corporation granted a fran-
chise by the Council under this chapter, and the lawful successor, transferee
or assignee of said person, firm or corporation.
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000246
(4) "Street" shall mean the surface, the air space above the surface
and the area below the surface of any public street, other public right of
way or public place, including public utility easements.
(5) "Property of Grantee" shall mean all property owned, installed, or
used within the City by a grantee in the conduct of a cable television system
IL business under the authority of a franchise granted pursuant to this chapter.
(6) "Subscriber" or "User" shall mean any person or entity receiving
for any purpose any service of the grantee's cable television system includ-
ing, but not limited to, the conventional cable television system service of
retransmission of television broadcast, radio signals, grantee's original
cablecasting, and the local government, education and public access channels;
and other services, such as leasing of channels, data and facsimile trans-
mission, pay television, and police, fire and similar public service communication.
(7) "Cable television system;" "CATV," and "CTV," for the purpose of
this chapter, are terms describing a system employing antennae, microwave,
wires, wave-guides, coaxial cables, or other conductors, equipment or facilities,
designed, constructed or used for the purpose of:
(A) collecting and amplifying local and distant broadcast television
or radio signals and distributing and transmitting them;
(B) transmitting original cablecast programming not received through
television broadcast signals;
(C) transmitting television pictures, film and videotape programs,
not received through broadcast television signals whether or not encoded or
processed to permit reception by only selected receivers;
(D) transmitting and receiving all other signals: digital, voice
and audio-visual; provided, however, that any of the services, permitted here-
under to be performed, as described above, shall be those performed by the
grantee for subscribers, as herein defined, in the operation of a cable tele-
vision or CATV system franchised by the City and not otherwise.
5. 10.020 Franchise to install and operate. (a) A nonexclusive fran-
chise to install, construct, operate, and maintain a cable television system
on streets within all or a specific portion of the City may be granted by the
Council to any person, whether operating under an existing franchise, who or
which offers to furnish and provide such system under and pursuant to the
terms and provisions of this chapter. No provision of this chapter may be
deemed or construed as to require the granting of a franchise when in the
opinion of the Council it is in the public interest to restrict the number
of grantees to one or more.
(b) When in the event that the grantee of any franchise granted here-
under uses in his cable television system distribution channels furnished to
the grantee by a telephone company pursuant to tariff or contract on file
with a regulatory body having jurisdiction and said grantee makes no use of
the streets independent of such telephone company-furnished facilities, said
grantee shall be required to comply with all of the provisions hereof as a
t "licensee" and in such event whenever the term "grantee" is used herein it
shall be deemed to mean and include "Licensee."
5. 10.030 Cable television service. (a) Basic Service. The cable
television system permitted to be installed and operated hereunder shall, un-
less otherwise provided by the document granting the franchise:
(1) be operationally capable of relaying to subscriber terminals
those television and radio broadcast signals for the carriage of which the
grantee is now or hereafter authorized by the Federal Communications Com-
mission;
(2) be constructed with the potential of two-way signal transmission;
(3) distribute color television signals which it receives in color;
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(4) provide at least one (1) channel, without charge, for exclusive
use of the City.
(5) provide at least one (1) channel each for those educational
and public access uses.
(A) until such time as there is demand for each channel full
time for its designated use, public, educational, government, and leased
L access channel programming may be combined on one or more cable channels. To
the extent time is available therefor, access channels may also be used for
other broadcast and nonbroadcast services except that at least one channel
shall be maintained exclusively for the presentation of access programming
as required by paragraph (B) of this section.
(B) the operator of each such system shall in any case,
maintain at least one full channel for shared access programming: Provided,
however, that, in the case of systems in operation on June 21, 1976, if
insufficient activated channel capability is available to provide one full
channel for shared access programming the system operator shall provide what-
ever portions of channels are available for such purposes. In meeting its
access obligations, every operator of a cable television system shall make
reasonable efforts in programming the system's bandwidth to avoid the dis-
placement of access service.
(C) whenever any of the channels described in paragraphs
(4) , (5) or (5) (B) of this section is in use during 80 percent_'of .thaweekgays
(Monday-Friday) for 80 percent of the time during any consecutive three-hour
period for six consecutive weeks, the system operator shall have six months
in which to make a new channel available for the same purposes: Provided,
however, that the channel expansion mandated by this paragraph shall not
exceed the activated channel capability of the system.
(6) the operator of each such system shall make available all
other unused channels, in addition to those which are part of the system's
activated channel capability, for the purposes specified in paragraphs (4)
and (5) : Provided, however, that in making available such additional channels
the system operator shall be under no obligation to install converters.
(b) Non-basic services. The cable television system permitted to be
installed and operated hereunder, may also engage in the business of:
(1) transmitting original cablecast programming not received
through television broadcast signals;
(2) transmitting television pictures, film and videotape programs,
not received through broadcast television signals whether or not encoded or
processed to permit reception by only selected receivers or subscribers;
(3) transmitting and receiving all other signals: digital, voice
and audio-visual.
(c) Subscriber complaints. In addition to other service regulations
adopted by the Council, and excepting circumstances beyond grantee's control,
such as Acts of God, riots and civil disturbances, and in providing the fore-
going services, the grantee shall, unless otherwise provided by the document
x granting the franchise:
q (1) limit system failures to minimum time duration by locating
and correcting malfunctioning promptly, but in no event longer than twenty-
four hours after occurrence, irrespective of holidays or other non-business
hours.
(2) upon complaint by a subscriber, make a demonstration satis-
factory to the city manager that a signal is being delivered which is of
sufficient strength and quality to meet the standards set forth in the regu-
lations of the Federal Communications Commission:
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(3) render efficient service, making repairs promptly and inter-
rupting service only for good cause and for the shortest time possible. Planned
interruptions, insofar as possible, shall be preceded by notice given to sub-
scribers twenty-four hours in advance and shall occur during periods of
minimum use of the system.
(4) maintain an office in the city, which office shall be open
during all the usual business hours, with its telephone listed in directories
of the telephone company serving the city, and be so operated that complaints
and requests for repairs or adjustment may be received at any time, day or
night, seven days a week, or provide a local telephone directory listing and
"toll free" telephone service maintained on a seven-day, twenty-four hour
basis for the receipt of consumer complaints;
(5) maintain a written record, or "log," listing date of customer
complaints, identifying the subscriber and describing the nature of the com-
plaint, and when and what action was taken by grantee in response thereto; said
record shall be kept at grantee's local office, for a period of two years from
the date of complaint, and shall be available for inspection during regular
business hours without further notice or demand, by the city manager.
(d) Municipal service. (1) With respect to the local government
channel, the grantee shall provide, at the request of the city manager, and
upon City reimbursement of grantee's actual cost, use of grantee's studio,
equipment and technical services for production of live and video-tape munici-
pal programs, subject to scheduling requirements of the grantee;
(2) with respect to the basic television services, the grantee
shall provide all basic services, and a tie-in connection, without cost,
when the property is equipped with cable and as designated by the Council,
subject to the requirements of federal law to:
(A) public schools and community colleges within the City,
and
(B) buildings owned and controlled by the City, used for
public purposes and not for residential use (fire and police stations excepted.)
(e) Compatibility and connectibility. (1) It is the desire of the
City that all cable television systems franchised hereunder shall, insofar as
financially and technically possible, be compatible one with another and with
systems adjacent to the City.
(2) Wherever it is financially and technically feasible, the gran-
tee shall so construct, operate and modify the system so as to tie the same
into all other systems within and adjacent to the City.
(f) Uses permitted. Any franchise granted pursuant to the provisions
of this chapter shall authorize and permit the grantee to engage in the business
of operating and providing a cable television system in the City, and for that
purpose to erect, install, construct, repair, replace, reconstruct, maintain
and retain in, on, over, under, upon, across and along any street, such poles,
wires, cable conductors, ducts,:_conduit, vaults, manholes, amplifiers and
appliances, attachments and other property as may be necessary and appurtenant
II: to the cable television system; and, in addition, so to use, operate, and pro-
v1ide similar facilities or properties rented or leased from other persons,
firms or corporations, including but not limited to any public utility or
other grantee franchised or permitted to do business in the City.
5. 10.040 Franchise payments. (a) In consideration of the granting
and exercise of a franchise to use the streets, as herein defined, for the
operation of a cable television system, any grantee shall pay to the City,
during the life of the franchise three (3) percent of the franchisee's gross
revenues per year from all basic cable services in the community except that,
to the extent that the Federal Communications Commission, in its Rules and
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Regulations, at some time in the future allows a City to raise the franchise
fee to five (5) percent absent the showings currently required by Section 76.31
of the Rules and Regulations of the Federal Communications Commission, the City
reserves the right to increase the franchise fee to a level of 5%.
(b) The percentage payments shall be made in the manner, and at times
directed in said franchise or in a Council resolution fixing franchise fees
and adopting rules for service and rate regulation.
(c) No acceptance of any payment shall be construed as a release or as
an accord and satisfaction of any claim the City may have for further or
additional sums payable under this ordinance or for the performance of any
other obligation hereunder.
5. 10.050 Franchise term: duration and termination. (a) Unless other-
wise provided by the document granting the franchise, the franchise granted
by the Council under this chapter shall be for a term of fifteen years from
the date of its acceptance by the grantee. During the fourteenth year of the
franchise, or earlier, the grantee may apply to the Council for a renewal of
the franchise. Permission to renew for additional terms of fifteen years shall
not be unreasonably withheld if the grantee has substantially complied with the
terms and conditions of the existing franchise.
(b) The City may terminate any franchise granted pursuant to the provi-
sions of this chapter in the event of the willful failure, refusal or neglect
by grantee to do or comply with any material requirement or limitation contained
in this chapter, or any material rule or regulation of the Council or city
manager validly adopted pursuant to this chapter.
(c) The city manager may make written demand that the grantee do or
comply with any such requirement, limitation, term, condition, rule or regula-
tion. If the failure, refusal or neglect of the grantee continues for a period
of thirty days following such written demand, the city manager may place his
request for termination of the franchise upon the next regular Council meeting
agenda. The city manager shall cause to be served upon such grantee, at least
ten days prior to the date of such Council meeting, a written notice of his
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 days
before such meeting in a newspaper of general circulation within the city.
(d) The Council shall consider the request of the city manager and shall
hear any persons interested therein, and shall determine, in its discretion,
whether or not any failure, refusal or neglect by the grantee was with just
cause.
(e) If such failure, refusal or neglect by the grantee was with just
cause, the Council shall direct the grantee to comply within such time and
manner and upon such terms and conditions as are reasonable.
(f) If the Council shall determine such failure, refusal or neglect by
the grantee was without just cause, then the Council may, by resolution, declare
that the franchise of such grantee shall be terminated and forfeited unless
there be compliance by the grantee within such period as the Council may fix.
(g) The termination and forfeiture of any franchise shall in no way
effect any of the rights of the City under the franchise or any provision of
law.
5. 10.060 Applications for franchise. (a) Each application for a
franchise to construct, operate, or maintain any cable television systems in
this City shall be filed with the city clerk and shall contain or be accompanied
by the following, unless waived by the city manager:
(1) the name, address, and telephone number of the applicant;
(2) a detailed statement of the corporate or other business entity
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organization of the applicant, including but not limited to, the following
and to whatever extent required by the City:
(A) the names, residence and business addresses of all of-
ficers, directors, and associates of the applicant;
(B) the names, residence and business addresses of all
officers, persons and entities having, controlling, or being entitled to have
L or control of 5% or more of the ownership of the applicant and the respective
ownership share of each such person or entity;
(C) the names and addresses of any parent or subsidiary of
the applicant, namely, any other business entity owning or controlling appli-
cant in whole or in part or owned or controlled in whole or in part by the
applicant, and a statement describing the nature of any such parent or sub-
sidiary business entity, including but not limited to cable television systems
owned or controlled by the applicant, its parent and subsidiary and the areas
served thereby;
(D) a detailed description of all previous experience of the
applicant in providing cable television system service and in related or similar
fields;
(E) a detailed and complete financial statement of the appli-
cant, prepared by a certified public accountant, for the fiscal year next
preceding the date of the application hereunder, or a letter or other acceptable
evidence in writing from a recognized lending institution or funding source,
addressed to both the applicant and the Council, setting forth the basis for
a study performed by such lending institution or funding source, and a clear
statement of its intent as a lending institution or funding source to provide
whatever capital shall be required by the applicant to construct and operate
the proposed system in the City, or a statement from a certified public
accountant, certifying that the applicant has available sufficient free, net
and uncommitted cash resources to construct and operate the proposed system
in this City;
(F) a statement identifying, by place and date, any other
cable television franchise(s) awarded to the applicant, its parent or sub-
sidiary; the status of said franchise(s) with respect to completion thereof;
the total cost of completion of such system(s) ; and the amount of applicant's
and its parent's or subsidiary's resources committed to the completion thereof.
(b) A detailed description of the proposed plan of operation of the
applicant which shall include, but not be limited to, the following:
(1) a detailed map indicating all areas proposed to be served,
and a proposed time schedule for the installation of all equipment necessary
to become operational throughout the entire area to be served;
(2) a statement or schedule setting forth all proposed classifica-
tions of rates and charges to be made against subscribers and all rates and
charges as to each of said classifications, including installation charges
and service charges;
(3) a detailed, informative, and referenced statement describing
the actual equipment and operational standards proposed by the applicant and
1 that such standards of operations are in compliance with those contained in
Title 47, Subpart K (Section 76.601 et seq.) , of the Rules and Regulations of
the Federal Communications Commission;
(4) a copy of the form of any agreement, undertaking, or other
instrument proposed to be entered into between the applicant and any subscriber;
(5) a detailed statement setting forth in its entirety any and all
agreements and undertakings, whether formal or informal, written, oral, or
implied, existing or proposed to exist between the applicant and any person,
firm, or corporation which materially relate or pertain to or depend upon the
application and the granting of the franchise.
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(c) A copy of any agreement covering the franchise area, if existing
between the applicant and any public utility subject to regulation by the
California Public Utilities Commission providing for the use of any facilities
of the public utility, including but not limited to poles, lines, or conduits.
(d) Any other details, statements, information or references pertinent
to the subject matter of such application which shall be required or requested
by the Council, or by any provision of any other Ordinance of the City.
(e) An application fee in the sum of $1,000.00, which shall be in the
form of cash, certified or cashier's check, or money order, to pay the costs
of studying, investigating, and otherwise processing such application, and
which shall be in consideration thereof and not returnable or refundable in whole
or in part, except to the extent that such fee exceeds the actual costs incurred
by the City in studying, investigating and otherwise processing the applica-
tion; provided, that any applicant who shall deliver to the city clerk a
written withdrawal of or cancellation of any application hereunder, not later
than the seventh day next following the day such application is received by the
city clerk, shall be entitled to have returned and refunded the sum of $500.00,
less any actual costs or expenses incurred by the City by reason of such ap-
plication.
(f) The Council may, by advertisement or any other means, solicit and
call for applications for cable television system franchises, and may deter-
mine and fix any date upon or after which the same shall be received by the
City, or the date before which the same must be received, or the date after
which the same shall not be received, and may make any other determinations
and specify any other times, terms, conditions, or limitations respecting the
soliciting, calling for, making and receiving of such applications.
The grantee shall pay to the City a sum of money sufficient to reimburse
it for all publication expenses incurred by it in connection with the granting
of a franchise pursuant to the provisions of this chapter. Such payment shall
be made within thirty days after the City furnishes the grantee with a written
statement of such expenses.
(g) Upon receipt of any application for franchise, the Council shall
refer the same to the city manager who shall prepare a report and make his
recommendations respecting such application, and cause the same to be completed
and filed with the Council within forty-five days.
(h) In making any determination hereunder as to any application the
Council may give due consideration to the quality of the service proposed,
rates to subscriber, income to the City, experience, character, background, and
financial responsibility of any applicant, and its management and owners,
technical and performance quality of equipment, willingness and ability to
meet construction and physical requirements, and to abide by policy conditions,
franchise limitations and requirements, and any other considerations deemed
pertinent by the Council for safeguarding the interests of the City and the
public. The Council, in its discretion, shall determine the award of any fran-
chise on the basis of such considerations and without competitive bidding. If
the Council shall determine to reject such application, such determination shall
be final and conclusive, and the same shall be deemed rejected.
(i) If the Council shall determine to further consider the application,
the following shall be done:
(1) the Council shall decide and specify the terms and conditions
of any franchise to be granted hereunder and as herein provided;
(2) the Council shall pass its resolution of intention to consider
the granting of such a franchise, giving notice of receipt of the application,
and describing the character of the franchise desired, stating the name of the
proposed grantee, the character of the franchise, the terms and conditions upon
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090252
which such franchise is proposed to be granted, that copies of the proposed
franchise may be obtained at the office of the city clerk, fixing and setting
forth a day, hour, and place certain when and where any persons having any
interest therein or objection to the granting thereof may file written protests
and appear before the Council and be heard, and directing the city clerk to
publish said resolution at least once within ten days of the passage thereof
in a newspaper in general circulation within the City.
(j) At the time set for the hearing, or at any adjournment thereof,
the Council shall proceed to hear all written protests. Thereafter, the
Council shall make one of the following determinations:
(1) that such franchise be denied; or
(2) that such franchise be granted upon the terms and conditions
as specified in the resolution of intention to grant the same; or
(3) that such franchise be granted, but upon the terms and condi-
tions different from those specified in the resolution of intention to grant
the same.
(k) If the Council shall determine that a franchise be denied such
determination shall be expressed by resolution and shall be final and conclu-
sive.
(1) If the Council shall determine that a franchise be granted upon the
terms and conditions as specified in the resolution of intention to consider
granting the same, such determination shall be expressed by ordinance granting
a franchise to the applicant.
(m) If the Council shall determine upon granting a franchise upon terms
and conditions different from those specified in the resolution of intention
to consider granting the same, then such determination shall be expressed by
resolution adopted prior to granting a franchise by ordinance.
5.10.070 Indemnifications; insurance. (a) Hold harmless agreement.
Grantee shall indemnify and hold harmless the City, its officers, boards, com-
missions, agents, and employees, against and from any and all claims, demands,
causes of actions, actions, suits, proceedings, damages (including but not
limited to damages to City property and damages arising out of copyright in-
fringements, and damages arising out of any failure by grantee to secure con-
sents from the owners, authorized distributors or licensees of programs to be
delivered by grantee's cable television system) , costs or liabilities (includ-
ing costs or liabilities of the City with respect to its employees) , of every
kind and nature whatsoever, including but not limited to damages for injury or
death or damage to person or property, and regardless of the merit of any of
the same, and against all liability to others, and against any loss, cost, and
expense resulting or arising out of any of the same, including any attorney
fees, accountant fees, expert witness or consultant fees, court costs, per diem
expense, traveling and transportation expense, or other costs or expenses arising
out of or pertaining to the exercise or the enjoyment of any franchise hereunder
II by grantee, or the granting thereof by the City.
(b) Defense of litigation. Grantee shall at the sole risk and expense
of grantee, upon demand of the City, made by and through the city attorney,
appear in and defend any and all suits, actions, or other legal proceedings,
whether judicial, quasi-judicial, administrative, legislative, or otherwise,
brought or instituted or had by third persons or duly constituted authorities,
against or affecting the City, its officers, boards, commissions, agents, or
employees, and arising out of or pertaining to the exercise or the enjoyment of
such franchise or the granting thereof by the City. Grantee shall pay and
satisfy and shall cause to be paid and satisfied any judgment, decree, order,
directive, or demand rendered, made or issued against grantee, the City, its
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officers, boards, commissions, agents, or employees in any of these premises;
and such indemnity shall exist and continue without reference to or limita-
tion by the amount of any bond, policy of insurance, deposit, undertaking or
other assurance required hereunder, or otherwise; provided, that neither
grantee nor City shall make or enter into any compromise or settlement of
any claim, demand, cause of action, action, suit, or other proceeding,
without first obtaining the written consent of the other.
(c) Insurance required. Upon being granted a franchise, and upon
the filing of the acceptance required under Section 5. 10.080, the grantee shall
file with the city clerk and shall thereafter during the entire term of such
franchise maintain in full force and effect at its own cost and expense each
of the following policies of insurance:
(1) General Comprehensive Liability Insurance in the amount of
not less than $10,000,000, together with Bodily Injury Liability Insurance
in an amount not less than $1,000,000 for injuries including accidental
death, to any one person, and subject to the same limit for each person in
an amount not less than $1,000,000 on account of any one occurrence, and
Property Damage Liability Insurance in an amount not less than $100,000 re-
sulting from any one occurrence; provided, however, as follows:
(i) the City shall be named as an additional insured in any
of said insurance policies; and
(ii) where such insurance is provided by a policy which also
covers grantee or any other entity or person, it shall contain the standard
cross-liability endorsement.
5. 10.080 Acceptance of the Franchise. (a) No franchise granted under
this chapter shall become effective for any purpose unless and until written
acceptance thereof shall have been filed with the city clerk. Written accep-
tance, which shall be in the form and substance approved by the city attorney,
shall also be and operate as an acceptance of each and every term and condi-
tion and limitation contained in this chapter, or in such franchise, or other-
wise specified as herein provided.
(b) The written acceptance shall be filed by the grantee not later than
12:01 o'clock P.M. of the fortieth (40th) day next following the effective date
of the ordinance granting such franchise.
(c) In default of the filing of such written acceptance as herein re-
quired, grantee shall be deemed to have rejected and repudiated the franchise.
Thereafter, the acceptance of the grantee shall not be received nor filed by
the city clerk. The grantee shall have no rights, remedies, or redress in
the, premises, unless and until the Council, by resolution, shall determine
that such acceptance be received or filed, and then upon such terms and condi-
tions as the Council may impose.
(d) In any case, and in any instance, all rights, remedies and redress
in these premises which may or shall be available to the City, shall at all
times be available to the City, and shall be preserved and maintained and
shall continuously exist in and to the City, and shall not be in any manner
or means modified, abridged, altered, restricted, or impaired by reason of
4 any of these premises, or otherwise.
(e) Any franchise granted and accepted under this chapter shall be in
lieu of any and all other rights, privileges, immunities, and authorities
owned, possessed, controlled, or exercisable by the grantee, of or pertaining
to the construction, operation, or maintenance of any cable television systems
in the City.
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000254
5.10.090 Limitations of franchise. (a) Every franchise granted
under this chapter shall be non-exclusive.
(b) No privilege or exemption shall be granted or conferred by any
franchise granted under this chapter except those specifically prescribed
herein or in the document granting the franchise.
(c) Any privilege claimed under any such franchise by the grantee in
any street or other public property shall be subordinate to any prior lawful
occupancy to the streets or other public property.
(d) Any such franchise shall be a privilege to be held in personal
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 in-
voluntary sale, or by voluntary sale, merger, consolidation or otherwise,
without prior consent of the Council expressed by resolution, and then only
under such conditions as may therein be prescribed. Any such transfer or
assignment shall be made only by an instrument in writing, such as a bill of
sale, or similar document, a duly executed copy of which shall be filed in
the office of the city clerk within thirty days after any such transfer or
assignment. The said consent of the Council may not be unreasonably refused;
provided, however, the proposed assignee must show financial responsibility
as determined by the Council and must agree to comply with all provisions of
this chapter; and provided, further, that no such consent shall be required
for a transfer in trust, mortgage, or other hypothecation, in whole or in
part, to secure an indebtedness, except that when such hypothecation shall
exceed 50% of the market value of the property used by the franchisee in
the conduct of the cable television system, prior consent of the Council
shall be required for such a transfer. Such consent shall not be withheld
unreasonably.
In the event that grantee is a corporation, prior approval of the Council,
expressed by ordinance, shall be required where there is an actual change in
control or where ownership of more than 50% of the voting stock of grantee is
acquired by a person or group of persons acting in concert, none of whom already
own 50% or more of the voting stock, singly or collectively. Any such acqui-
sition occurring without prior approval of the Council shall constitute a
failure to comply with a provision of this chapter within the meaning of
Section 5. 10.050. Such approval shall not be unreasonably withheld.
(e) Time shall be of the essence of any such franchise granted here-
under. The grantee shall not be relieved of his obligation to comply promptly
with any of the provisions of this chapter by any failure of the City to
enforce prompt compliance.
(f) Any right or power in, or duty impressed upon, any officer, employee,
department, or board of the City shall be subject to transfer by the City to
any other officer, employee, department, or board of the City.
(g) The grantee shall have no recourse whatsoever against the City for
any loss, cost, expense, or damage arising out of any provision or requirement
of this chapter or of any franchise issued hereunder or because of its enforce-
ment.
L (h) The grantee shall be subject to all requirements of City laws,
rules, regulations, and specifications heretofore or hereafter enacted or
established.
(i) Any such franchise granted shall not relieve the grantee of any
obligations involved in obtaining pole or conduit space from any department
of the City, utility company, or from others maintaining utilities in streets.
(j) Any franchise granted hereunder, shall be in lieu of any and all
other rights, privileges, powers, immunities, and authorities owned, possessed,
controlled, or exercisable by grantee or any successor to any interest of
grantee, of or pertaining to the construction, operation, or maintenance of
-10- 000255
any cable television system in the City; and the acceptance of any franchise
hereunder shall operate, as between grantee and the City, as an abandonment of
any and all of such rights, privileges, powers, immunities, and authorities
within the City, to the effect that, as between grantee and the City, and all
construction, operation and maintenance by any grantee of any cable television
system in the City shall be and shall be deemed and construed in all instances
and respects to be, under and pursuant to said franchise, and not hereunder or
pursuant to any other right, privilege, power, immunity, or authority whatsoever.
5. 10.100 Rights reserved to the City. Unless otherwise provided by the
document granting the franchise, the City reserves the power to adopt and enforce
requirements and regulations on any or all of the following matters, if and
when deemed necessary and proper in the public interest in the discretion of
the City Council and is consistent with Rules and Regulations of the Federal
Communications Commission:
(a) Procedures for the periodic fixing of reasonable rates and service
charges to be charged to subscribers by grantee, and provisions for the enforce-
ment thereof.
(b) Operational standards pertaining to the quality of audio-visual re-
ception by subscribers.
(c) Channel capacity requirements.
(d) Requirements for carriage of specified television signals, radio
signals, and supplementary signal carriage services.
(e) Requirements for the provision of equipment and channels for local
production and presentation of cablecast programs, and regulations pertaining
thereto.
(f) Requirements and regulations pertaining to minimum service require-
ments and fair business practices by the grantee.
(g) Public safety requirements pertaining to the installation and use of
all CATV equipment.
(h) Procedures for the investigation and resolution of all complaints by
subscribers regarding grantee's CATV operations, including implementation there-
of by designated City officers, employees, or agents.
(i) There is hereby reserved to the City every right and power which is
required to be herein reserved or provided by any law and the grantee, by its
acceptance of the franchise, agrees to be bound thereby and to comply with any
action or requirements of the City in its exercise of such rights or power,
heretofore or hereafter enacted or established.
(j) Nothing herein shall be deemed or construed to impair or affect, in
any way, to any extent, the right of the City to acquire the property of the
grantee, either by purchase or through the exercise of the right of eminent
domain, at a fair and just value, which shall not include any amount for the
franchise itself or for any of the rights or privileges granted, and nothing
herein contained shall be construed to contract away or to modify or abridge,
whether for a term or in perpetuity, the City's right of eminent domain.
(k) Neither the granting of any franchise nor any provision hereof shall
constitute a waiver or bar to the exercise of any governmental right or power
of the City.
(1) The Council may do all things which are necessary and convenient
in the exercise of its jurisdiction under this chapter and may determine any
question of fact which may arise during the existence of any franchise granted
hereunder. The city manager, with the approval of the city attorney, is here-
by authorized and empowered to adjust, settle, or compromise any controversy or
charge arising from the operations of any grantee under this chapter, either
on behalf of the City, the grantee, or any subscriber, in the best interest of
the public. Either the grantee or any member of the public who may be dissatisfied
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000256
with the decision of the city manager may appeal the matter to the Council for
hearing and determination. The Council may accept, reject or modify the deci-
sion of the city manager, and the Council may adjust, settle or compromise any
controversy or cancel any charge arising from the operations of the grantee or
from any provision of this chapter.
510.110 Council to adopt rules and regulations. (a) Standards of
Operati on. (1) Prior to receiving any applications for franchises, the
Council may adopt rules, regulations and standards governing the operation of
cable television systems in the City. Such rules, regulations and standards
shall apply to and shall govern the operations of the grantee of any franchise
hereunder, and are expressly declared a part of any franchise hereunder.
(2) Rules, regulations and standards not adopted prior to receiving
any application for a franchise shall be adopted by the Council at the first
regular meeting of the Council next following the effective date of this chapter,
by resolution which shall become effective upon adoption and shall be applicable
to any application for a franchise previously received.
(3) The standards adopted pursuant to these procedures shall be
exclusively in those areas not either expressly or impliedly preempted by the
Federal Communications Commission at the time of adoption.
(4) Provided the same do not materially alter the content of the
franchise without consent of the grantee, the Council may at any time adopt new
rules or regulations or standards, or may amend, modify, delete, or otherwise
change its respective rules or regulations or standards previously adopted, in
the following manner: The Council shall pass its resolution of intention stating
or describing the rules or regulations or standards to be adopted, amended,
modified, deleted, or otherwise changed, and fixing and setting forth a day,
hour, and place certain when and where any persons having any interest therein
or objection thereto may appear before the Council and be heard. Such resolu-
tion shall direct the city clerk to publish the same at least once within ten
(10) days of the passage thereof in a newspaper of general circulation within
the City, and to mail a copy of the same to any grantee or applicant for a
franchise, not more than thirty (30) days nor less than fifteen (15) days prior
to the time fixed for hearing thereon.
(5) At the time set for such hearing, or at any adjournment there-
of, the Council shall proceed to hear and pass upon such comments as may be
presented. Thereafter the Council, by its resolution, may adopt, amend,
modify, delete, or otherwise change its respective rules, regulations and stan-
dards. Such determination by the Council shall be final and conclusive.
(6) Any rule or regulation or standard as adopted, amended, modified,
deleted, or otherwise changed by the Council shall become effective upon the
tenth day following the adoption of such resolution, unless a longer period
shall be otherwise provided in such resolution.
(b) Rates. Unless and until the Council adopts an ordinance establish-
ing procedures for the periodic fixing of reasonable rates pursuant to Section
5. 10.100, the following limitations shall apply to the rates charged to sub-
scribers by grantee:
(1) No increase in rates shall be imposed upon subscribers except
after thirty days prior notice to subscribers.
(2) No charge shall be imposed upon any subscriber for termination
of CATV service or removal of CATV apparatus upon termination of such service.
(3) No charge shall be made to any subscriber by reason of the
maintenance, repair, removal, or replacement of any CATV apparatus, or property
of grantee, unless the same was caused by the deliberate or negligent act of
said subscriber.
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000257
(4) Except as otherwise provided by paragraph (a) hereinabove,
grantee shall not charge different rates to subscribers within the same class
of service, nor shall there be any difference in the services or facilities or
in any other respect between subscribers within the same class, except that
installation charges may vary according to the costs of installation. No
grantee shall make or grant any preference to any corporation or person as to
rates, charges, services, facilities, or rebates, or in any other respect, nor
subject any corporation or person to any prejudice or disadvantage.
(5) Except as otherwise provided by paragraph (a) hereinabove,
grantee shall not, without specific approval from the Council, charge within
the City any rate, charge, fee, price, cost, or the like, which substantially
exceeds the same then currently charged by grantee to patrons and customers in
any area surrounding or near to the City.
5.10.120 Permits and construction. (a) Within thirty days after
acceptance of any franchise, the grantee shall proceed with due diligence to
obtain all necessary permits and authorizations which are required in the con-
duct of its business including, but not limited to, any utility joint use attach-
ment agreements, microwave carrier licenses and any other permits, licenses and
authorizations to be granted by duly constituted regulatory agencies having
jurisdiction over the operation of the cable television systems, or associated
microwave transmission facilities. In connection therewith, copies of all
petitions, applications and communications submitted by the grantee to the
Federal Communications Commission, Securities and Exchange Commission, or any
other federal or state regulatory commission or agency having jurisdiction in
respect to any matters affecting grantee's cable television operations, shall
also be submitted simultaneously to the city manager, if requested.
(b) Within ninety days after obtaining all necessary permits, licenses
and authorizations, including right of access to poles and conduits, grantee
shall commence construction and installation of the cable television system.
(c) Within one hundred eighty days after the commencement of construc-
tion and installation of the system, grantee shall proceed to render service
to subscribers, and the completion of the installation and construction shall
be pursued with reasonable diligence thereafter, so that service to all of the
areas designated and scheduled on the map and plan of construction made part
of the franchise shall be provided as set forth therein.
(d) Grantee shall utilize existing poles, conduits, and other facilities
whenever possible, and shall avoid constructing or installing any new, different,
or additional poles, conduits, or other facilities whether on public property
or on privately-owned property.
Whenever grantee shall not utilize existing poles, conduits and other
facilities, or whenever existing conduits and other facilities shall be located
beneath the surface of the streets, or whenever the City shall undertake a
program designed to cause all conduits and other facilities to be located be-
neath the surface of the streets in any area or throughout the City, in the
exercise of its police power or pursuant to the terms hereof, upon reasonable
notice to grantee, any such conduits or other facilities of grantee shall be
constructed, installed, placed, or replaced beneath the surface of the streets.
Any construction, installation, placement, replacement, or changes which may be
so required shall be made at the expense of grantee, whose costs shall be deter-
mined as in the case of public utilities.
(e) The City shall have the right, free of charge, to make additional
use, for any public or municipal purpose, whether governmental or proprietary,
of any poles, conduits, or other similar facilities erected, controlled, or
maintained exclusively by or for grantee in any street, provided such use by
-13- 0100253
City does not interfere with the use by grantee.
(f) In those areas of the City where the transmission or distribution
facilities of the respective public utilities providing telephone, communication
and electric services are underground or hereafter are placed underground, the
grantee likewise shall construct, operate and maintain all of his transmission
and distribution facilities underground. The term "underground" shall include
,:
a partial underground system; provided, that upon obtaining the written approval
of the city manager, amplifiers in the grantee's transmission and distribution
lines may be placed in appropriate housings upon the surface of the ground.
(g) The grantee at his expense shall protect, support, temporarily dis-
connect, relocate, or remove any property of grantee when, in the opinion of
the city manager the same is required by reason of traffic conditions, public
safety, street vacation, freeway or street construction, change or establish-
ment of street grade, installation of sewers, drains, waterpipes, power line,
signal line, transportation facilities, tracks, or any other types of structure
or improvements or governmental agencies whether acting in a governmental or a
proprietary capacity, or any other structure or public improvement, including
but not limited to movement of buildings, urban renewal and redevelopment, and
any general program under which the City shall undertake to cause all such
properties to be located beneath the surface of the ground. The grantee shall
in all cases have the privilege, subject to the corresponding obligations, to
abandon any property of grantee in place, as herein provided. Nothing here-
under shall be deemed a taking of the property of grantee, and grantee shall be
entitled to no surcharge by reason of anything hereunder.
(h) Upon the failure, refusal, or neglect of grantee to cause any work
or other act required by law or hereunder to be properly completed in, on, over,
or under any street within any time prescribed therefor, or upon notice given,
where no time is prescribed, the city manager may cause such work or other act
to be completed in whole or in part, and upon so doing shall submit to grantee
an itemized statement of the costs thereof. The grantee shall, within thirty
days after receipt of such statement, pay to the City the entire amount thereof.
(i) In the event that,
(1) the use of any part of the system of grantee is discontinued for
any reason for a continuous period of thirty days, without prior written notice
to and approval by the City; or
(2) any part of such system has been installed in any street or other
area without complying with the requirements hereof; or
(3) any franchise shall be terminated, cancelled, or shall expire,
then the grantee shall, at the option of the City, and at the expense of grantee
and at no expense to the City, and upon demand of the City, promptly remove from
any streets or other area all property of grantee, and grantee shall promptly
restore the street or other area from which such property has been removed to
such condition as the city manager shall approve.
The Council may, upon written application therefor by grantee, approve
the abandonment of any of such property in place by grantee and under such
terms and conditions as the Council may prescribe. Upon abandonment of any
such property in place, grantee shall cause to be executed, acknowledged, and
delivered to the City such instruments as the city attorney shall prescribe
and approve, transferring and conveying the ownership of such property to the
City.
5.10.130 Technical Standards. (a) The performance of grantee's cable
television system shall meet the technical standards as set forth in Section
76.605 or any successor section of the Federal Communication Commission's
Rules, as those standards may exist from time to time.
-14- 000259
(b) Grantee shall conduct performance tests in accordance with the re-
quirements of Section 76.601 or any successor section of the Federal Communica-
tion Commission's Rules, as these requirements may apply or be extended from
time to time.
5.10.140 Miscellaneous Provisions. (a) A franchise granted to provide
service within the City shall authorize and permit the grantee to solicit, sell,
distribute, and make a charge to subscribers within the City for connection to
the cable television system of grantee, and shall also authorize and permit the
grantee to traverse any portion of the City in order to provide service outside
the City.
(b) A franchise, easement, license or other permit granted to anyone
other than the grantee to traverse any portion of the City in order to provide
service outside the City shall not authorize nor permit said person to solicit,
sell, distribute, or make any charge to subscribers within the City nor to
render any service or connect any subscriber within the City to the cable tele-
vision service system of grantee.
(c) No franchise granted under this chapter shall ever by given any
value by any Court or other authority, public or private, in any proceeding of
any nature or character, wherein or whereby the City shall be a party or affected
therein or thereby.
(d) Grantee shall be subject to all provisions of the other ordinances,
rules, regulations, and specifications of the City heretofore or hereafter
adopted, including but not limited to those pertaining to works and activities
in, on, over, under and about streets.
Any privilege claimed under any franchise granted pursuant to this chapter
in any street or other public property shall be subordinate to any prior lawful
occupancy of the streets or other public property.
Grantee also shall be subject to the provisions of general laws of the
State of California, or as hereafter amended, when applicable to the exercise
of any privilege contained in any franchise granted under this chapter, includ-
ing but not limited to those pertaining to works and activities in and about
State highways.
(e) Grantee shall be prohibited from directly or indirectly doing any of
the following:
(1) engaging in the business of selling at retail, leasing, renting,
repairing or servicing of television sets or radios;
(2) imposing a fee or charge for any service or repair to subscriber-
owned receiving devices except for the connection of its service or for the de-
termination by grantee of the quality of its signal to the recipients thereof.
(3) soliciting, referring, or causing or permitting the solicitation
or referral of any subscriber to persons engaged in any business herein pro-
hibited to be engaged in by grantee.
(4) providing information concerning the viewing patterns of identi-
fiable individual subscribers to any person, group or organization for any
purpose.
(f) If the Federal Communications Commission or the Public Utilities
Commission of the State of California or any other Federal or State body or
agency shall now or hereafter exercise any paramount jurisdiction over the
subject matter of any franchise granted under this chapter, then to the extent
such jurisdiction shall preempt or preclude the exercise of like jurisdiction by
the City the jurisdiction of the City shall cease and no longer exist.
(g) When not otherwise prescribed herein, all matters herein required
to be filed with the City shall be filed with the city clerk.
(h) No person, firm or corporation within the service area of the grantee,
and where trunk lines are in place, shall be refused service; provided, how-
ever, that the grantee shall not be required to provide service to any subscriber
-15- 000260
who does not pay the applicable connection fee or service charge.
(i) The form of the grantee's contract with the subscriber shall also be
subject to approval of the City.
5. 10.150 Equal opportunity employment and affirmative action plan.
(a) In the carrying out of the construction, maintenance and operation
of the cable television system, the grantee shall not discriminate against any
employee or applicant for employment because of race, creed, color, sex, or
national origin.
(b) The grantee shall take affirmative action to ensure that applicants
are employed, and that employees are treated during employment, without regard
to their race, creed, color, sex or national origin. Such action shall include,
but not be limited to, the following: employment, upgrading, demotion or trans-
fer, recruitment or recruitment advertising, layoff or termination, rates of pay
or other forms of compensation, and selection of training, including apprentice-
ship.
(c) The grantee shall post in conspicuous places, available to employees
and applicants for employment, notices setting forth the provisions of this
non-discrimination clause.
(d) The grantee shall, in all solicitations, or advertisements for em-
ployees placed by or on behalf of the grantee, state that all qualified appli-
cants shall receive consideration for employment without regard to race, creed,
color, sex, or national origin.
(e) The grantee shall incorporate the foregoing requirements in all of
its contracts for work relative to construction, maintenance and operation of
the cable television system, other than contracts for standard commercial
supplies or raw materials, and shall require all of its contractors for such
work to incorporate such requirements in all subcontracts for such work.
5. 10.160 Violations. (a) 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
or radio signals through a cable television system, unless a franchise authoriz-
ing 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.
(b) It shall be unlawful for any person, without the consent of the
owner, to wilfully tamper with, remove or injure any cables, wires or equipment
used for distribution of television signals, radio signals, pictures, programs
or sound.
L SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause or
phrase of this ordinance is for any reason held illegal, invalid or unconsti-
tutional by the decision of any court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions hereof. The Council
hereby declares that it would have passed this ordinance and each section, sub-
section, sentence, clause, and phrase hereof, irrespective of the fact that any
one or more sections, sub-sections, sentences, clauses, or phrases be declared
illegal, invalid or unconstitutional. The invalidity of any portion of this
ordinance shall not abate, reduce or otherwise affect any consideration or
other obligation required of the grantee of any franchise granted hereunder.
SECTION 3. EFFECTIVE DATE. This Ordinance shall be in full force and effect
thirty (30) days after passage.
-16- 000261
SECTION 4. POSTING. The city clerk shall within 15 days after the passage
of this ordinance, cause it to be posted in at least the 3 public places desig-
nated by resolution of the City Council; shall certify to the adoption and
posting of this ordinance; and shall cause this ordinance and its certification,
together with proof of posting, to be entered in the book of ordinances of this
City.
The foregoing ordinance was approved and adopted at a meeting of the City Council
held July 21st , 1982, by the following vote:
Ayes: Councilmembers Case, Krings, Martin, Smith and Mayor Murphy
Noes: None
Absent: None
/
,Ji . / AA// 44..,,
MAYOR / /
ATTEST:
®/ ' LOP I//ii
ITY CLERK
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
C ATTORNEY CITY MANAGE
I HEREBY CERTIFY THAT THE FOREGOING ORDINANCE
NO. WAS DULY ADOPTED BY THE CITY COUNCIL
OF THE CITY OF CATHEDRAL CITY, CALIFORNIA, IN A
MEETING THEREOF HELD ON THE .2/ ' l= DAY OF ,
198 Z, AND THAT SA"I;: WAS POSTED IN AT LEAST E THRE
PUBLIC PLACES SPECIFIED FOR SUCH POSTINGS, BY THE SAID
CITY COUNCIL
67P/- -7-e /& f' '''I
L
CITY CLERK
-17- 000262