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HomeMy WebLinkAbout38.12.4 ORDINANCE NO. 38.12.4 AN ORDINANCE OF THE CITY OF SARATOGA AMENDING ARTICLE VI OF CHAFFER 4 OF THE SARATOGA CITY CODE, PROVIDING FOR THE GRANTING OF FRANCHISES FOR CABLE TELEVISION SYSTEMS IN SAID CITY The City Council of the City of Saratoga does hereby ordain as follows: Section 1: Chapter 4, Article VI of the Saratoga City Code, together with all of the sections and subsections thereof, is amended to read as follows: ARTICLE VI - CABLE TELEVISION FRANCHISES. 'Sec. 4-200. DEFINITIONS. Far the purpose of this article~ 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 singu- lar number include the plural number. (a) "City" shall mean the City of Saratoga, a municipal corporation, and "Council" shall mean th~ City Council of said City. (b) "Franchise" shall mean and include any authorization gran[ed hereunder in terms of a franchise, privilege, permit, license or otherwise to construct, operate and maintain a CATV system in the City. Any such authorization, in whatever term granted, shall not mean and include any license or permit required for the'privilege of transacting and carrying on a business within the City in accordance with Article V of this Chapter. (c) "Grantee" shali mean the person, tirm, or corporation to whom or to which a franchise, as hereinabove defined, is granted by the Council to construct, operate or maintain, a CATV system as hereafter defined, under this ordinance, and the 'lawful successor, transferee or assignee of said person, firm or corporation. (d) ~'Street".shall~mean'the surface of and the space above and below any park of the entire width 9f right of w~y of a public street, road, highway, fr~eway, lane, pa[h, alley, court, sidewalk, parkway, or drive, or of any upaccepted street offered for dedication to City, whether or not such entire'area i§ actually used or improved for street purposes, now or hereafter existing as such within the City, or any public utility easement. (e) "Property of grantee" shall mean all property owned, installed or used by a grantee in the conduct of a CATV business in the City under the authority of a franchise granted pursuant to this Ordinance. (f) !!Subscriber" or "User" shall mean any person or entity receiving, for any purpose, aDy service of the Grantee ~s cable television system,.including, but not limited to, the conventional cable television system service of retransmission of television broadcast, radio signals, granteeis original cablecasting, and the local government, education and public access channels; and other seTvices, such as leasing of channels, data and facsimile transmission, pay 'television, and police, fire~ and similar public service communication. (g) "Cable Television System" (CATV) shall mean any facility, including any system of antennae, micro-wave, wires, wave-guide~, coaxial cables or'other conductors and equipment.designed, constructed or used for the purpose of collecting and amplifying local and distant broad- cast television or radio signals and distributing and transmitting them to subscribing members of the public who pay for such service, and shall also include the transmitting of original cable programming not received through television or radio broadcast signals, and transmitting and receiving all other digital, voice and audio-v~ual signals. CATV, for the purpose of this franchise ordinance or any ordinance granting a franchise pursuant thereto, shallnot include the delivery or transmission of any copyrighted program or event without the owner of the facility first complying with all laws applicable ~hereto. (h) "Subscriber" shall mean any person or en~ity receiving for any purpose the CATV service of a grantee. (i) "Gross Ahnual Bas.ic Subscriber Receipts" shall mean any and all compensation and other consideration received directly or indirectly by the grantee from subscribers in payment of the regularly furnished service of the cable teleVijsion system in the ~ransmission of broadcast television, radio signals and original cablecast programming of the grantee. (j) "Gross Annual Non-Basic Service Receipts" shall'mean any and all compensation and ot~er consideration received directly or ~ indirectly by the grantee from subscribers or users in payment for the receipt of signals other than broadcast television, radio, or original cablecast programming of the grantee, whether for '!pay television", "facsimile" transmission, "return",'or "response" Communication~ and(~ 'whether or not transmitted encoded or processed to permit reception by only~cte~uu~bscribers. (k) "Gross Annual Advertising Receipts" shall mean any · income, compensation, and other consideration received by grantee derived from any form of advertising. - 2 - (1) "Gross Annual Lease Receipts" shall mean any fees or in- come received by grantee for the lease or rental, and compensation for any service in connection therewith, suchas studio and equipment ~ental and production costs, of any channel permitted or designated by the Federal Communications Commission to be so leased or r~nted. See. 4-201. FRANCHISE TO INSTALL AND OPERATE (a) A non-eXclusive franchise to ~nstall, '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 pro vide such system under and pursuant to the terms and provisions of this · ordinance. Each franchise for a CATV system as herein d~fined shall be sUb- ject' to the provisions of this Article VI exclusively, rather than to the general franchise regulations of Article IV of th~S Chapter. No ~rovfsion of this ordinanc~ may'be deemed br construed as .to require the granting of a franchise when in.the opinion of'the Council it is in the public in[erest to res'trict the number of grantees to one or more. (b) Whenand~in th~ event that thle g~an[e~ of any franchise granted hereunder uses in his cable television system distribution.dhannels furnish&d 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 ~se of the streets independent'of such telephone company-furnished facilitie~ said grantee shall be required to com~ly with all of the provisions hereof as a "Licensee" and in such event whenever the term "Grantee" is used herein its. shal~ be deemed to mean and include "Licensee." Sec. 4-202. USES PERMITTED' BY GRANTEE. A franchise granted pursuant to the provisions of'this Ordinance shall authorize ~nd permit'the grantee to engage in the business of operating and providing a CATV 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 public street such poles, wires, cable, conductors, ducts, conduit, 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 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; subject, however, to all of the other terms, con- ditions, and provisions of this Ordinance and any additional conditions or provisions of any Ordinance which grants a franchise in accord herewith. N0 franchise granted hereunder shall constitute any 'franchise, permit, or'license to transmit any copyrighted program or event without complying with all laws.relating thereto. The grantee may make a charge to subscribers for installation or connection to its CATV system and a. fixed monthly charge as fil'ed and approved herein'provided. No increase in the rates and charges to subscribers, as set forth in the schedule filed and approved with grantee's application, may be made without the prior approval of the Council expressed by resolution. Rat~ may not be discriminatory. Sec. 4-203. GENERAL FRANCHISE PROVISIONS. Any franchise granted hereunder shall be subject to such reasonable conditions as may be imposed in the granting of the same, and in addition, shall be subject to the following conditions which shall also be obligations of the grantee: (a) The grantee shall comply with all encroachment permit, zoning, building, and other laws and ordinances of the City, and the City Code, as presently existing or hereafter enacted or adopted, in the 1.ocation, construction, operation, maintenance. and use of the CATV system or any part thereof, provided however, that thisTsection shall not affect the location of construction ~of the CATV system which has been located or constructed in accordance with existing laws and ordinances. (b) The grantee shall obtain such licenses and certificates as-required, and at all times during the term of any franchise keep such licenses in full force and effect, from the Federal Communications Commission, and shall comply with all present and future laws, regulations, rnles and '~'.'~ orders of the Federal Communications,Commission, as presently existing or hereafter enacted, promulgated or adopted, and shall also comply with any a~d all other laws, whether local, state, or national, as presently existing or as hereafter enacted, regulating or governing any of the activities of the grantee, except as.otherwise stated herein. (c) The gradtee shall at all times during the term of any franchise, at its own cost and expense, properly and in good, workmanlike manner, install and maintain adequate shielding, filtering, and grounding at affected installatiohs within the CATV system. The grantee shall further make efforts to mihimize television interference encountered from fundamental frequency overload by radio amateur transmissions which are in compliance 'with Federal Communications Commission regulations. (d) No grantee shall engage in the business of leasing or . selling television or othe~ receivers which make uSe.of signals transmitted by the CATV system, nor shall any gr~h~ee offer or provide any service of television or radio maintenance, sale of parts, or repair, to subscribers, other than initial or Subsequent adjustment of equipment as may be necessary by virtue of the CATV installation, and which adjustment service shall be included in and not be in addition to the installation charge to the sub- scriber. This shall not preclude the grantee from furnishing converters or '~pecial receivers" that are not part of the basic CATV system as designed and engineered. Sec. 4-204, CABLE TELEVISION SERVICE. (a) Basic Service. The cable television system permitted to be installed and/operate~ hereunder shall: ~ (1) be operationally capable of relaying to sub° ~.criber terminals those television and radio broadcast s{~nals f~r the cartilage of which the grantee is now or hereafter authorized by the Federal CommUnications Commission. Basic 'services s~all not i~clude thbse programs and signals defined in non-basic services, sub- paragraph (b) below; (2) be constructed with the potential of two-way digital signal.transmission; -4 - (3) distribute color television signals which it re&eive~ in color; (4) provide at.least one (1) channel, without charge, for exclusive use of the City, i.e. government channel per F.C.C. Rules; (5)'provide at least one (1) channel each f6r those educational and public access uses as now or hereafter required by the Federal Communications Commission for systems o~erating in the top 100 markets; (6) have a minxmum capacity of 27 channels, with ultimate 54 channel capacity.. (b) Non-Basic ~ervices. The cable television system permitted to be installed and operated hereunder may also engage in the business of: (1) tran%mittiBg Original cablecast programming not received through television broadcast signals;- (2)~t~ansmittlng television-pictures, film and videotape Rrograms not.'r~ceived'througb br6adcast television signals,~ whether or not encoded or processed to,permit r~ception by only serected receivers:or'subscribers. (3) transmitting and recexving all.other signals: digital, ~oica, and audio-visual. (c) Subscriber Complaints. Excepting circumstances beyond grantee's control, such as-Acts of God, riots,/civi'l'=~is'~'u~r~, "~f[ike~ 'flr'~,~6~"o~h~'~jdr =d~f~ss'Fn rpY'dVfding~ foregoing ~grant~e.shall': .......... .i ............... ~__ -~ . (1) limit system failures to minimum time duration by locating and correcting malfunc- tidni9g promptly, but in no event longer than 24 hours after occurrence, irrespective of (2) ~O[[~f~C'b~ a sub~c'~iber and upon request of the chief administrative officer, make a response satisfactory to the chief administrative officer ~hat a'signal is being delivered which is sufficient strength and quality to meet the standards set forth in the regulations of the - Federal Communicatiqns Commission, or in regu- lations hereafter adopted by the Council; (3)'=render efficient service, making repairs promptly and interrupting service only ~or good cause and for the shortest time possible. Planned' inter- ruptions, insofar as possible, shall be prsceded by notice given to su~cribers 24 hours in advance and shall occur during periods of minimum use of the system; (4)maintain an nffide in the City, which'office shall be open during all the usual business h~ r , with its telephone listed in directories us 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. ~d). Municipal Service. (1) With respectto the local government channel, the'grantee shall provide, at the request of the chief administrative officer, and upon City re{mbursement of granteels actual cost, use of grantee~sstudio, equipment, and tech- nical services for production of live and video-tape municipal programs, Subject to scheduling requirements of the grantee; (2) The grantee shall prgvide all basic subscriber · ~ services and a tie-in connectio~n~'~"f~r, c~bl~, · ~,i~h~'dt'~6~l~=~(~ept -fo~ '~s6allation ~costs) . ~hen. theq~ystem'~asses.such Y~cf~tieS~s" a[~i~at~d-by~h~Counc.~l~to~ (i) public schools and co~unity colleges within the City, and (ii) buildings o~ed and controlled by the City, used for public purposes and not for residential use (fire-and ~p~l~e . stations'excepted). i ~ ~ .~ (e) Compatibility and Connectibility. (1) It~is the desire of the City thatLall cable television systems fran~His'ed'hereunder shall, insofar as financially and technically ~..'p0~Sible, be c0~pati~le one With another and 'with~ systems adjacent to the ~i6~;' .Sec. 4-205. DU~ION bF LICENSE. No franchise granted under this ordinance shall be for a term of longer than twenty (20) years from the date of acceptance of=such franchise by the grantee or the renewal thereof. ~y such franchise granted hereunder shall automatically terminate during th'e period o~ such transmission or delivery without notice or hearing in the event the grantee willfully transmits or delivers any copyrighted program or event without complying with all laws relating thereto. Any such franchise granted hereunder may be terminated by the Council prior to its date of expiration after a public hearing, in the event that said Council shall have found after thirty (30) days notice of any~such proposed termination and hearing that: the grantee has failed to comply with any material.condition, limitation, obligation, or provision of this Ordinance, or has, by act or omission, vio- lated any material:term, condition, or provision of any franchise, permit, or-license issued hereunder and has failed after thirty (30) days ~itten notice to completely obviate such default, or take action satisfactory to the City to obviate such default. - 6 - Sec. 4-206. FRANCHISE PAYMENTS: Any grantee granted a franchise under this ordinance shall pay to the City, during the life of such franchis~ a sum equal to three percent (3%)'of the Gross Annual Basic Subscriber ReceiJlt~ and~NOn-Basic Subscriber Receipts, including advertising and channel-leasing receipts of the grantee, or such greater percentage as may at any time be per- mitted or allowed as a maximum percentage rate by the rules and regulations of the Federal Communications Commission and is set forth inthe ordinance grant~ g the franchise or any amendments thereto. Such payment shall be m_ad~ by_the grantee annua[ly,.or as may otherwise be provided in the granteels franchise, and such payment by the grantee to the City shall be in lieu of any occupation tax, license tax, or simiIar'l~vy.' The ~rantee shal~ fil~ with the City within thirty (30) days after the expiration of any fiscal year during which such franchise is in force, a financial statement prepared by a certified public accountant showing in detail the-total gross receipts, as defined herein, of grantee, its successors or assigns, during the preceding fiscal year and shall pay the franchise fee to the City within fifteen (15) days from date of filing such statement. The City ~hall have the right to inspect the grantee's records showing the gross receipts from which its franchise payments are computed and the right of audit and recomputation of any and all amounts paid under this ordinance. No acceptance of any payment shall be construed as a release or as an accord and ~sat~faction 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. In the event of any holding over after eXpirationor other termination of any franchise granted hereunder without the concent of the City the.grants shall pay to the City reasonable compensation and damages, of not less than one hundred percent (100%)lef its total gross profits during said period. Sec. 4~207. LIMITATIONS OF FRANCHISE. (a) Any franchise granted under this' ~rdinance shall be non-exclusive. (b) No privilege or ~xemption shall be granted or conferred by any franchise granted under this ordinance except those specifically pre- scribed herein. (c) Any privilege claimed under any franchise by the grantee in any street or other public property .shall be subject to any prior lawful occupancy of the streets or other public property,. ~ds'~_~'to~em~al' a~d're~oca~idn~as'be~inaft~ ~e~ forth in S~c~ion-4~209(h). (d) Any suc~ franc~ise~shall pea privilege to be held in personal trust by the origihal grantee. It cannot ~n any ~vent be sold, transferred, leased, assigned or disposed of, in whole or in part, either by forced or involuntary sale~or by voluntary sale, merger,'consolidation or otherwise, without pri~r consent Of the Council expressed by resolution, and then only ~nder such conditions as may therein be prescribed. Any such trans- fer or assignment shall 5e made on'ly byan insfrument fn writing, such as a bill of sale, or similar ~ocument, a duly executed copy of which shali be f~led in the office of the City Clerk within thirty (30) 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 financialljrespon~i- bility as determined by the Council and must agree to aomply with all provisions of this ordinance; and provided further, that no such consent shall be required for a transfer in trust, mortgage, or other hypothecation, in whqle or in pa~t, to secure an indebtedness, except that when such hypothecation shall exceed 50% of the. market value of the property used by the franchise 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 th~ event that Grantee is a corporation, prior approval of the City qouncil, expressed bY ordinance, shall be required where there is an' actual change in control o~ where ownership of more than 50% of the voting stock of grantee is acquired by a person or group of persons acting in concert, hone of whom already~'own ~0% or more of the voting stock, singly or collectively. Any such ~cquisition 6ccur'ring without prior approval of th~ City Council shall constitute a failure to comply with a provision of this ordinance within the meaning of Section 5 of this 6rdinance. Approval of the City Council shall not be withheld Unreasonably. (e) Time shall be of the essence of any such franchise granted hereunder. The grantee shall not be relieved of his obligation to comply promptly with any of the provisions of this .o~dinance or by any failure of the City to enforce prompt compliance. (f) The grantee shall have no recourse whatsoever against the City for any loss, cost, expense, or damage arising out of any provision or requirement oflthis ordinance, or of any.franchise issued hereunder or because of its lawful enforcement. (g) 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. (h) Any franchise granted hereunder shall be in lieu of any and all othe~ rights, privileges, powers, if any, o~ed, possessed, controlled,. or exercisable by grantee or any successor to any interest-of grantee. Sec. 4-208. .'RI[~TS RESERVED TO THE CITY. (a) 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 ~y purchase or through the exercise of the right of the eminent domain, at afair and just value, which shall not in- clude 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 [o modify or abridge~ either for a term or in perpetuity, the Gity's right of eminent domain. (b) There is hereby reserved to the City every right and p6wer which is required to be herein reserved or provided by any ordinance of the City,'and the grantee, by its a.cceptance of any 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, except as may otherwise be provided in this agreement. (e) Neither the granting of any 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 within all or any portion of the City. (d) There is'hereby reserved ~o the City the power to amend any section or part of this ordinance so as to require additional or greater standards of copstruction, operation, maintenance orI Otherwise, provided that such amendments are mutually agreed to between City and ~G~antee. (e) 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. (f) The Council may do all things.which are necessary and convenient in the exercise. of its jpr,isdiction.u~der thislordinance and may examine any question of fa~ct which may a~ise during ~he existence of any franchise granted hereunder. The City Manager is hereby authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of any.grantee under this ordinance, either on behalf of the City, the grantee or any subscribe~ in the bes~ interest of the public. Sec. 4-20~. PERMITS AND CONSTRUCTION. (a) Wiehin fiftee~ (15) days afte~.acceptan.ce of'any franchise the!grantee shall proceed with due diligence'to'obtain all necessary permits and authorizations which are require~ in the conduct of its business, including, but not limited to, any u~ility joint.use attachment agreements, microwa~e carrierlicenses, and any other permits,. licenses~ and authori- zations to be granted by duly const{tuted regulatory agencies having juris- diction over the operatiOh of ~ATV systems or theirlassociated 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 regUlatlory commission or agency having jurisdiction in respect to any matters affecting grantee~s~cable television operations shall. also be submitted simultaneousi~ to the Chief Administrative Officer. (b) ~thin ninety (90) days after obtaining all necessary permits, licenses, (including F.C.C. Certificate of Compliance) and authori- zations, grantee shall commence system mapping, engineering and pole clearance~ and thereafter, within such time as set forth in the ordinance gr~nEin~fr. anchise: commence~ph~ai~alins.tallation_Qf~h~_~Z~tea~.__ In the event the Federal Communications Commission should notify City that it does not intend granting a certificate to licensee~ then City thereafter shall have the right, on thirty (30) days prior_wr{t~en_notica_tojicensee,_to~canael ~be_fzanchL~e pravionsly_gazaat. ed to such'li~ensee. (c) Within such humhereof days as set forth in the ordinance granting the franchise after the commencement of construction and ihstallation of the system, grantee shall proceed t0 render service to subscribers, a~d the completion of the construction and installation.shall be pursued with reasonable diligence.thereafter. Such!ordinance may specify particular areas of the City to first be served, and may set up a schedule of chrono- logical steps or stages of facility installation and service, both by area and by state of construction facilities, and shall provide specific time limitson or before which each area shall have full CATV service available so all persons in each such area desirous of subscribing to such service. - 9 - (d) Failure on the part of the grantee to commence and diligently pursue each of the foregoing requirements and to complete each of the matters set forth herein, shall be grounds for'termination of such franchise, under and pursuant to th~ terms of Section 4~205 hereof; provided, however, that the Council in its discretion may extend the time for the commencement and completion of cons[ruction and installation for additional periods in the event the grantee, acting in good faith, experiences delays by reason of circumstances beyond its control. (e) Grantee shall utilize existing po~es and other facilities whenever possible and shall not construct'or install any new, different, or additional poles or other facilitfes, whether on public 'property or on privately-owned property, unless and until first securing .the written approval of the Director of Public Works, save and except that grantee'shall not be required to use existing underground conduit of another utility in the event it is more economical for Grantee to install and use its own underground facility. Approval of the Director ~f Public Works-~hall not b~ unreasonably withheld. Whenever grantee shall not utilize existing poles, con- duits, and other facilities, or whenever existing conduits an~other facilities shall be located beneath ehe surfactor the streets, or whenever the City shall undertake a program designed to cause all conduits and other facili[ies to be located beneath the 'surfac~etof the streets in any area or throughout the City in the exercise of its p61ice 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, place- ment, replacement, or changes which may be so required shall be made at the expense of grantee, whose costs shall b~ determined as in the case of public utilities. (f) The City shall have the right, free of charge, to make additional use, for any publicor municipal purpose, lwhether 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 City does not interfere o~ compete with services .by grantee. (g) In those areas of the Cf~y where the existing transmission or distribution facilities or service drops of the respective public utilities providing telephone, communication, or electric services are all underground to the particular building or structure in question or a~e hereafter so placed underground, the grantee likewise shall construct, operate, and maintain all of its respective transmission, distribution, or service drop facilities under- ground. The term "underground" shall ~nclude a partial underground system; whereby, amplifiers in the grantee's transmission and distribution lines may be placed in ~ppropriate housings uponlthe surface of the'ground, subject to obtaining written approval as to location by the Director of Public Works. (h) The grantee at his'expense shall protect, support, temporarily disconnect, relocate, or remove any property of grantee when, in the opinion of the Director of Public Works, the same is required by reason of traffic conditions, public safety, street vacation, freeway or street construction, change or establishment of .street grade, installation of sewers, drains, waterpipes, power line, signal line, transportation facilities, tracks, or any other types ~f structure or improvements by governmental agencies, whether acting in agovernmental or a proprietary capacity, or any other structure o~ public improvement, including, but not' limited t0, 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 surfac~ of ,the ground. The grantee shall in all cases have the privilege, subject to the corresponding obli- gations, to abandon any property of grantee in place, as herein provided. Nothing hereunder shall be deemed a taking of the property of grantee, and grantee shall be entitled to no surcharge by reason of ~nything hereunder. If such removal'or relocation relates to any underground conduit or other facility, the same shall be subjectzto the requirements of Section 13-16 through 13-19 of this Code. All facilities of grantee, whether above ground or underground, shall be considered encroaChments within the terms and meaning of, and subject to the prgvisions o;, Articles IV and. V of Chapter 13 of this Code. In the event that funds, whether 'frOm Federal, State, or local sources, are available!for such p[ograms, and these fund~ are made available to other utilities, inc-~udip~ CAIy. companies~ grantee sh~fl' reaeive its proportionate share of said funds as compensation for such underground program. (i)'Up~n the failure, refusal, Or ~glect of grantee to cause any work or Other act required by law o~'h~r~un~er to be properly 'completed in, on, over, or under any street within any time prescribed therefor~ or upon reasonable given notice, w~ere no time is prescribed, the Director of Publid Works may .cause Such work or other act to be completed in whole or in part, and upon so doinglshall submit to grantee an itemized statement of the costs thereof. Th~ grantee shall, within thirty (30) days after receipt of such ~tatement, pay to the City the entire amount thereof. The performance bond hereinafter set forth in Section 4-211 (a)~is speci- fically made applicableto these provisions. Sec. 4-210. REMOVAL AND 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 thirty (30) days, or in the event such system or property has been installed in any street or public place without complying .with the requirements of grantee's franchise or this ordinance, or the franchise has been.terminated, cancelled, or has expired, the grantee shall promptly, upon b~ing given thirty (30) days notice, remove from the streets or public places all such property and poles of such system other than.any which 'the Director of~Public Works may permit to be abandoned in place. Such removal by grantee may not be required if it causes unreasonable economic hardship to grantee. (b) Upon terminationr or expiration of the franchise, the grantee may, at any time prior to the expiration of one hundred twenty (120) days from, such termination or expiration, remove said property or~any part thereof, and/or sell the. same or any part thereof in place to a new CATV franchise grantee. All property of grantee remaining in place one hundred twenty (120) days after termination or expiration of such franchise, unless its removal is otherwise directed, per 4-210 (a), above, or 'unless then owned by the current CATV franchise grantee, shall be considered permanently abandoned and shall automatically be and become the property of city. Sec. 4-211. BONDS~ INDEMNIFICATION~ AND LIABILITY INSURANCE. (a) Performance Bond to City. The grantee shall, concurrently with the filing of an acceptance of award of any franchise granted under this ordinance, file with the City,~and at all times thereafter, maintain in full force and effect for the term of such franchise or any renewal thereof, at grantee~ssole expense, a cash or corporate surety bond in a.company and in a form approved by the City Attorney, in the amount of not less than $75,000.00, to guarantee faithful performance by, g~a'ntee unde~ the ~ranchise, 'and compliance by grantee with aI~ provisions of this ordinance and the ordinance granting such franchise. The am'ount of the b6nd may be reduced to an amount not less than $25,000.00 upon completion of certain milestOne~ of system construction and installation. The exact amount Of such bond, both original and as to be reduced, shall be set forth in the ordinance granting the franchise. Said bond shall provide, inter alia, not Only for payment to City of any and all - 11 - damages or'loss suffered or to be suffered by City in the event of any breach or failure by grantee under such franchise, including the full amount. 'of any compensation, indemnification, or cost of renewal or abandonment of any property of the grantee, but also, that upon any failure of grantee to start and complete construction and installation of such CATV system in accord with the applicable time limits and scheduling or after completion, upon any failure of grantee to continue to provide CATV service to the levels and standards as required by such franchise and this ordinance, the proceeds of such bond, up to the whole thereof, shall be used by such bonding-company, on demand of City, tocomplete such construction and installation and/or operate said system and so provide said service together with any and all attorneys' fees'and costs incurred by City by reason of any such breach or default or by reason of any action or!proceeding taken or suffered by City against either grantee or-said bonding company up to the full amount of said bond then remaining, such condition to be a continuing~obligation for the duration of such franchise and of 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 or renewal~y the grantee or from its exercise of any privilege therein granted. 'The bond shall provide that thirty (30) days prior written notice of intention not to renew, cancellation, or m~t~riar Change, he given to the qity~ Neither the pro- visions of this section, nor any bond a~cepted by. ~he',Cfty pursuant hereto, nor any damages recovered by'the City thereunder shall be construed to excuse faithful performance by the grantee,.or Ilimi~ ~e ~iab~[ity of the grantee, under any franchise issued hereunder, or for~d~mages, either to the full amount of the bond or otherwise. (b) Indemnification. The grantee shall indemnify and hold harmless the C%ty, its.officers, boards, commissions, agents, and employees, from and against' any and all claims, actions, demands, causes of actions, suits, proceedings, damages (including~ but not'limited to, damages arising out of copyright infringements, and damages arising outof any failure by grantee to secure consents from the owners, authorized distributors or-licensees of programs to be delivered by grantee's cable television system), costs, or liabilities (including costs or'liabilities of th~ City with respect to its employees) of every kind and nature whatsoever, including, but not limited to, damages for injury or death or damgge 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 arising or resulting from any of the same, including any attorneys' fees~ accountants~ fees, expert witness or consultants~ fees, court costs, per diem expenses, traveling and transportation expense, and other costs or expenses arisinglout of or pertaining to the exercise or the enjoin- ment of any franchise hereunder by grantee,'or the granting thereof by the City. (c) 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, 6r other.legal proceedings~ whether judicial, quasi-judicial, administrative,.legislative, or otherwise, brought or instituted or had by. third persons o~,duly constituted authorities, against or affecting the City, its officers, boards, commissions, agents, or ' empl6yees, and arising out of or pertaining to the ~perf6~and~"~<n~[~formance <~f~any"d~fy'b~'g~ante~i' as speCffi~'i~ ~i~ Grantee shall pay and satisfy ozri shall cause to be paid and satisfied any judgment, decree, orders directive, or demand rendered, made, or issued against grantee, the City, its officers, boards, commissions, agenm, - 12 - or employees in any of these premises; and 'such indemnity shall exist' and continue without reference to or'limitation by the amount..of any bond, policy ofinsurance, deposit, undertaking, or other assurance required hereunder, or otherwise; provided=that neither g~antee 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'thewritten consent of the other. (d) Insurance Require~d. ~' Upon being granted a franchise, and upon the filing of the acceptance required under Sec. 4-201 hereof, 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 followingSpolicies of insurance: (1~ General Comprehensive Liability InsUrance in the amount of $1,000,000.00, together with Bodily Injury Liability Insurance in an amount of not less than $1,~00,000.00 ·for.injuries, including accidental death, to; any one person', and subject to the same limit for each person in an amount of not less than $1,000,000.00 on account of any one occurrence, and Property Damage Liability Insurance in an amount 6f not less than $50,000.00 resUlting from any one occurrence; (2) In addition to thg foregoing, the liability policy or Certificate of Insurance in an amount of not less than $1,000,000.00, ~-~'~ insuring against any and all claims, actions, demandS, suies, damages, or liability'by reason of any copyright infringement or arising out of any failure by grantee to secure consents fro~ the owners, authorized distri- · butors or licensees.of programs to be delivered by the granteels CATV system or arising out of 'the exercise.of enjoyment of.its franchise. E~ch 6f the foregoing policies and certificates sh~ll name the City, its officers, boards, cormnissions, agentS, and employees as additional named insureds, and shall contain a provision that a written notice of cancellation or reduction in coverage of each such policies shall be delivered to the City no ess ~han th' t ( 0 da s in advance of th effec ive date thereof. Each suc~ policy s~a{{ ~nc?u~e r~asonable attorney ~ees an~ court costs in the losses and damages insured against . Sec. 4-212~ INSPECTION OF, PROPERTY AND TECHNICAL RECORDS. ~7 ~ ': (a)' At all reasonable times, the granteeshall permit any duly authorize~ representatives:of the City to'examine a~l'property of the grantee,' together with-any appu~tenant property of the grantee situated within or without the City, and to examine and transcribe any and all maps and other technical records kept o~ maintained by the ·g~antee~or under its control whidh deal with the operations, affairs, transactions, or p~oper~y of the grantee with respect to its franchise. If any maps or technical records are not kept in the City, or upon reasonable request made available in the City, and if the Council shall determine that an examination thereof is necessary or appropri~ , 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 at the times, and in the form prescribed by the City Manager, such reports with respec~ to its revenues and gross receipts, as may be reasonabl~ necessary - 13 - or appropriate to the performance ofany of the rights, functions, or duties of the City or any of its officers in connection with the franchise, and'in this regard shall submit to the City'copies of all data and information furnished to the Federal Communications Commission under Section 403 of th~ Communications Act, and regulations and orders pursuant thereto, atesuch times as such information is submitted to the Federal Communications Commission. (c) The ~rantee shall at all times. make and keep in the City full and complete plans and records showing the exact location of all CATV systems equipment installed or in use in streets and other public places in the City. (d) The g~antee shall file with the City, on or before the l~st day of June of each yea~, a current map ~r set of maps drawn to scale~ showing all CATV system equipment installed and in,place in streets and other public places in the'C~ty. -(e) When any portion of the CATV system is to be installed on public utility polesor facilities, c~rtified copies of the agreement for such use of poles and facilities shall be filed with the City Clerk. Sic. 4-213. OPERATIONAL STANDARDS. The grantee's CATV syjt~m shall be installed and maintained in accord with the F.C.C. specifications governing CATV systems, including the following minimum specifications: . (a) That the system be installed using all band equip-~ ment capable of passing the entire VH7 and FM spectrum, and that it have the further capability of converting,UHF for distribution to subscribers on the VHFI~bank. (b) That the system, as installed and maintained, be capable of passing standard color TVlsignals without the introduction of material degradation of color fidelity and intelligence. (c) That the system and all equipment be designed and rated for 24-hour per day continuous operation. (d) That the system provide a nor~inal signal level of 2,000 microvolts at the input terminals of each TV"receiver of each subscriber, measured against 300 OHMs. (e) That the system carrier-to-noise ratio be not.less. than 40 decibels, aS measured at the 'furthermost amplifier from the head end. (f) Tha't the hum modulation Of the picture signal ~is less than two (2) percent. (g) That Ithe sys[~m use components ~aving a VSWR of 1.4 or less. 7 · (h) That the system, as to television, produce a picture, whether in black'and white ~o~ in color, which is undistorted, free of ghost images and-~ccompadied by proper sound o~ typical standard · production television receivers in goOd'repair. On 'request of City, grantee shall demonstrate, by monitor or otherwise, the adequacy of signal strength and quality, and the quality of the resultant audio and video product. - 14 - In addition to the foregoing, performance'requirements of a more'specific nature shall be set'forth in the ordinance granting the franchise, or in a separate document .or series of documents incorporated by reference into such ordinance granting said franchise. Sec. 4-214. APPLICATION FOR FRANCHISE. Application for a franchise hereunder shall be in writing, shall be filed with the City Clerk, and shall contain the following infor- mation: (a) The name and address of the applicant. If the appliT cant is a partnership, the name and address of each partner shall also be set forth. If the applicant is a corporation, the application shallalso state the names and addresses of parent and subsidiary companies. (b) A general statement and description of the CATV system proposed to be constructed, installed~ maintained or operated by the applicant; the proposed location of such system and its various components; the manner in which applicant proposes to construct, install, maintain and operate the same; and particularly, the extent and manner in which existing or future poles or other facilities of other public utilities will be used for such system. (c) A general statement of the public public places, and proposed public streets within which applicant proposes. or seeks authority to construct, install or maintain any CAT~ equipment or facilities; a genera~l~i~scription of the equipment or facilities proposed to be constructed, installed or maintained therein. (d) A map specific~ll~ showing and delineating the proposed service area or areas within which applicant proposes to provide CATV services and for which a franchise is requested, specifying proposed chronology and scheduling of construction, installation and service com- pletion. (e) A statement or schedule in a fo~m approved by the City of proposed rates and charges to subscribers for installation and services; and a copy of proposed service agreement between the grantee and its subscribers shall accompany the application. For unusual circumstances, such as underground cable required, or more than 150 feet of distance from cable to connection of service to subs;cribers, an additional installation charge over that normally charged for 'installation as specified in the applicant's proposal may be charged, with easements to be supplied by sub- scribers. For remote, relatively inaccessible subscribers within the City, service may be made available on the basis of cost of materials, labor and easements if required by the grantee. (f) A copy of any contract, if existing, between the applicant and any public utility providing for the use of facilities of such public utility, such as poles, lines or conduits. (g) A statement setting forth all ~greements and under- standings, wh~ther written, oral, or implied, existing between the applicant and any person, firm, or corporation with respect to the proposed franchise or the proposed CATV operation. If a franchise is granted to a person, firm or corporation posing as a front or asthe representative of another person, - 15 - firm, or corporation, and such information is not disclosed in the original application, such franchise shall be deemed void and of'no force and effect what- soever. (b)7 A current financial statement, o~ latest annual report, if the applicant is listed on a domestic national stock exchange~ prepared by a certified public accountant, or person otherwise saeisfactory to the Council, showing applicant's financial status ahd his financial ability to complete the construction and installation of the proposed CATV system. (i) A full disclosure made o5 any criminal proceedings, or a~y'~.~charges by any governmental agency,.litigation, or other legal p~oceedings, past, present, or pending, in conjunction with any CATV operations of applicant~ (j) The Council may at any time demand, and applicant s~al! provide, such supplementary, additional or~other. information as the Council may deem reasonably necessary to determine whether the ~equested frahchise should be granted. Sec. 4-215. GRANTING OR DENIAL OFFRANCHISE. (a) Upon consideration of any sdch application, the Council may refuse to grant the requested franchise, or the Council may by ordinadce grant a franchise for a CATV system to any such applicant as may appear from said application to be in its opinion best qualified to render proper and efficient CATV service to television ~iewers and subscribers in the City. The Council's decision in the matter shall be final. if favorably considered, the application submitted shall constitute and~f0rm part of the franchise as granted. (b) Any franchise granted pursuant to th~s ordinance shall include the following condition: "The CATV system 'Eranchised shall be used. and operated ~olely and exclusively for the purposes expressly authorized by ~i~f%~'>~Chapter 4, of the Saratoga City Code, and for no other purpose what- soever." IncluSion of ~he foregoing statementin any such franchise impose in connection with such franchise pursuant to the authority conferred by this ordinance. In the event that any ordinance granting franchise should'fail to include the above-set-forth statement, the 'same'shall be deemed to be included in any such franchise as if the same were more fully.setforth therein. Sec. 4-216. FRANCHISE RENEWAL. At the expiration of the te~m of any franchise hereunder, the franchise holder, not being in default of any of the terms of the franch{se, shall have the first right of refusal for a renewal'of such franchise on such terms and conditions as required by thi~ Article at that time, for the same service area covered by the expired franchise or any part thereof. Sec. 4-217. ACCEPTANCE AND EFFECTIVE DATE OF FRANCHISE. (a) No franchise granted pursuant to the provisions ~o£ this ord'inance shall become effective unless and until the ordinance granting same has become effective and,· in addition, unless and until all things required in this Section and Sections 4-211(a), 4-211(b), ~nd 4-21t(d) hereof, are-done '.and completed, all of such things being hereby declared to be conditions precedent to the effectiveness of an~ franchise granted hereunder. In the even~ any of Such things are not done and completed in the time and manner required, this franchise may be ~d~l~r~h__d_ll_~n~ ~oi~.~ t__h.e_.~bs~!ut~ ~ '~ discretion of the City Council. (b) Within thirty i30) days after the ef£ective date of the ordinanc~ awardin~ a franchise, orwithin such extended period of time as the Council in its discretion may authorize, the grantee shall file with the City Clerk his written acceptance, in form satisfactory to the City Attorney, of the franchise, together ~ith the bond and insurance policies required by Section 4-211 hereof, respectively, and his agreemept to be bound by and to 9omply with ahd to do all things required of'him by th~ provisions of this ordinance and the franchise.' Such adceptance and agreement shall be acknow- -1.edged by the grantee before a notary public, and shall in form and content be satisfactory to and approved by the City Attorney. Sec. 4-218. MISCELLANEOUS PROVISIONS. (a) When not otherwise presdribed herein, all matters h~rein required to be filed with the City shall be filed with the City Clerk. (b) The g~antee shall pay to 'the Ciey a sum of money sufficient toreimburse it for all publication expenses incurred by it in connection with the granting of a franchise pursuant to the provisions of this ordinance. Such payment Shall be made!within ten (10) days afte~ the City furnishes the grantee with a written statement Of such expenses. (c) No person, firm, or corp0rationin the existing service area of the grantee shallbe arbitrarily refused service; provided, however, that the grantee.shall not be require~ to provide service to any subscriber who does not.pay the applicable installation fee.or monthly service charge. (d) No franchise granted under this ordinance shall ever be given any value by any cour't or other authority, public or private, in any proceeding of any nature or character, wherein or Whereby th~ City shall be ~ party or affected therein or thereby. (~) If the Federal Communications Commission or the Public Utilities Commfssion of the State of California or any other federal or state body o~ agency shall now or hereafter legally exercise any paramount jurisdiction over the subject matter of any franchise granted under this ordinance, then to the extent such jurisdiction shall preempt or preclude the. exercise of like jurisdiction. by the City~ the jurisdiction of the City shall cease and no longer exist. - The preemption or preclusion 0f the exercise by the City of any 6f its police power shall not diminish, impair, alter, or affect any contractual benefit tO the Ciey or grantee nor any contractual obligation of the' grantee under any franchise issued hereunder,. except as otherwise provided by preempting or precluding body. (f) Bef*ore providing cable television service to any sub- scriber, the grantee shall provide a .written notice to the subscriber substantially as follows: "Subscriber 'is hereby notified tha~ in pro- viding cable television service, the grantee is making use of public rights'-of-way within the City of Sarat~oga, and that the continued use of suchrights-of-way is in no wayguaran- teed. In the event the continued use of such rights-of-way is ..denied' to grantee for any reason, grantee Will make every reasonable effort to provi~ service over alternate routes. By accepting cable television service, subscriber agrees he will make no claim nor undertake any action against the City of Saratoga, its officers, or its employees if the service to l!be provided hereunde~r is. interrupted or discontinued." Sec. 4-219. EQUAL OPPORTUNITY EMPLOYMEN~ AND AFFIRMATIVE ACTION PLAN. 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. I~The gran. tee §hall take affirmative action to ensure that applicants are employed, and,that employees ar, e t~ate~/during employment, without regard to their race,' 9~eed, !color, s~x. or'.~ational origin. Such action shall include, but not be .limited to, the following: employment, up- grading, demotion or transfer, ~ecru{tment or recruitment .advertising, layoff or termination, rates of p~y or other forms of compensation, and selection of training, including apprenticeship. The grantee shall pos~ in conspicuous pla&es avai.la. ble to employees and applicant for employment, notices setting forth ~t~e provisions of this non-discrimination clause.' .The grantee shall, in~alt solicitations for employees placed by or oh behalf of the grantee, state that all' qualified applicants will receive consideration for employment without regard to race, creed, color,~ sex, or n~tional origin. The grantee shall incorporate the foregoing requirements 'in all of its contracts for work relative to construction and maintenance of the cable television system, other than contracts for standard commercial .supplies of raw materials, and shatlirequire all of its contractors for such work to incorporate such requirements in all subcontracts for such work. - 18 - Sec. 4-220. VIOLATIONS. (a) It shall be unlawful for any person, firm or corporation to establish, operate or to carry on the business of distributing to any persons in this City any television signals or radio signals by means of a. CATV'system tmless a franchise therefor has first been obtained pursuant to the provisions of this ordinance, and unless such franchise is in full force and effect. (b) It shall be unlawful for'any person, firm, or corporation to construct, install, or maintain within any public street in the City, or within any other public property of the City, or within any privateif-owned area within the City which has not yet become a public street but as 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 CATV system, unless a franchise authorizing such use of such street or property orarea has first been obtained pursuant to the provisions of this ordinance, and unless such franchise is in full force and effect. (c) It shall be unlawful for any person, firm, ~r corporation to ~ake any unauthorized connection, whether physically, electrically, acousti- cally, inductively or otherwise, with any part of a franchised CATV system within this City for the purpose of taking or receiving television signals, radio sig- nals, pictures, programs, or sound. (d) It shall be unlawful for any person, firm, or corporation to make any connection, whether physically, electrically, acoustically, induc- tively. or otherwise, with any part of a franchise CATV system within this City for the purpose of enabling himself or others to receive any television signal, radio signal, picture, program, or sound, without payment, to the owner of said system of the requisite fees therefor. (e) It shall be unlawful for any person, without the consent of the owner, to wilfully tamper with, remove, or ~injur~ any cables, wlre~ or equipment used for distribution of television signals, radio signals, pictures, programs, or sound. (f) It shall be unlawful for any person, firm, or corporation to represent to the City, or any officer, agent, board, commission, or employee thereof, that such person, firm, or corporation has the consent from the owner of any copyrighted program or event to transmit the same, if such representation is not true. Section 2: If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held illegal, invalid, or unconstitutional by the decision of any court of competent jurisdiction, such de~ision shall not affect the validity of the remaining portions hereof. The Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared illegal, invalid,. or unconstitutional. - 19 - Section 3: This ordinance shall be in full force and effect thirty (30) days after the date of its passage and adoption. The above and foregoing ordinance was regularly introduced and after the waiting time required by law was thereafter passed and and adopted this 5th day of December , 1973 , by the following vote: AYES: Councilmen Smith, Dwyer, Bridges, Diridon and Kraus - NOES: Non~ ABSENT: No~Q -~--~-=~:- :-I , ~7" ~ ' '~ ~ = = ~ ~ ~ MAYOR g i~ ~ITY ~R~ ' / ~z,hL 'The abdve .,a~d fotego]n{~ 'is a true and co'rreti~ copv,of Ordinance, :~;,m. '-/which has heen ,,, publifi~-:d according [o Isw, '\~ aeputy CRy Clerk J_ ..... Date _. 20-