ORD 100 ORDINANCE NO. 100
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES PROVIDING
TERMS AND CONDITIONS TO BE INCLUDED IN CABLE TELEVISION
SYSTEM FRANCHISES HEREINAFTER GRANTED BY THE CITY OF RANCHO
PALOS VERDES AND AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE.
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES ORDAIN AS FOLLOWS:
Section 1. The Rancho Palos Verdes Municipal Code is hereby amended by
adding thereto a new Chapter 8 of Article VI, and said Chapter is hereby adopted,
to read as follows:
Chapter 8. CABLE TELEVISION SYSTEM FRANCHISES
6800. Definitions. For the purpose of this chapter,- the
following terms, phrases, words and their derivations shall have the meaning
given herein. When not inconsistent with the context, words used in the
present tense include the future, words in the plural number include the
singular number and words in the singular number include the plural number. -
The word "shall" is always mandatory and not merely directory.
A. "Council" means City Council of Rancho Palos Verdes.
B. "Cable Television System" or "CATV System". Any facility that, .
in whole or in part, receives directly or indirectly over the air and amplifies
or other wise modifies the signals transmitting programs broadcast by one or
more television or radio stations and distributes such signals by wire or
cable to subscribing .members of the public who pay-for such service, but such
term shall not include any such facility that serves only the residents of
. one or more .apartment dwellings under common ownership, control, or management,
and commercial establishments located on the premises of such an apartment
house.
"Cable Television System" also means "Community Antenna Television System" as
that term is used in Section 53066 of the Government Code.
An exception to the above definition is a state or interstate common carrier
over which the City of Rancho Palos Verdes has no jurisdiction.
C. "City" means the City of Rancho Palos Verdes, State of California.
D. "FCC" means the Federal Communications Commission.
E. "Franchise" includes the term "License
F. "Franchisee" is the grantee of rights under the ordinance and
shall mean the person granted a franchise and the lawful successor or permitted
assignee of said person.
G. "Franchise Property" shall mean all real property and all depre_
ciable property, including, but not limited to: towers, antennae, coaxial
cables, electrical conductors, conduits, electronic equipment, appurtenances
and facilities; owned, installed or used within -the City by the Grantee in
the operation and conduct of a cable television system business under the
authority of the Franchise granted pursuant to this division.
H. "Head-end" means large master antennae and electronic equipment
used to pick up direct signals from broadcasting facilities.
1. "Highway" means any public highway, including bridges, freeway
(except a state freeway) , street, road, alley, lane, trail or court, or other
public property or public easement as hereinafter defined, and above and be-
low the same, which now exists or which may hereafter exist in any incorpor-
ated territory of the City and in which the City has the authority to grant
a franchise.
J. "Person" is any person, firm, partnership, association, corpor-
ation, company or organization of any kind.
K. "Public Easement" includes, but is not limited to, any easement
created by dedication to the City for public utility purposes or any other
purpose whatsoever.
L. "Subscriber" or "User" means any person or entity receiving
g.
for any purpose any service of the Franchisee's cable television system,
including the ultimate recipient of any distribution of Franchisee's service.
M. "Subscriber Revenues" means those revenues derived from the
monthly service charges paid by subscribers located within the authorized
franchise service area. Subscriber revenues shall include revenues received
as installation charges and fee for reconnections, connections, inspection,
repairs or modifications of any installations.
(1) "Basic Service" means the simultaneous delivery by Franchisee
to television receivers (or any other suitable type of audio-video communi-
cation receivers) of (a) all signals of over-the-air television broadcasters
authorized by the FCC to be carried by a cable television system as defined by
the FCC; (b) local government access channels; and (c) education access channels;
(d) public access channels; and (e) additional service at the option tion of the_ -•-
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pany; however, pay or- subscription television as defined by the FCC shall not be
considered part of the basic service.
(2) "Nonbasic Service" means any communications service other than
basic service provided over its system by Franchisee directly or as a carrier
for its subsidiaries, affiliates or any other person engaged in communications
services including, by way of example but not limited to, pay or subscription
television, burglar alarm, data or other electronic intelligence transmission,
facsimile reproduction, meter reading and home shopping.
(3) "Gross Annual Basic Subscriber Receipts" means an y a�-�and all c
pensation and other consideration received directly or indirectly by the Fran-
chisee from subscribers in payment for the basic service of the cable tele-
vision system.
(4) "Gross Annual Nonbasic Service Receipts" means an y and all com-
pensation and other consideration received directly or indirectly by the
Franchisee from subscribers or user in payment for the receipt of non-basic
service.
(5) "Gross Annual Advertising Receipts" means any income, compensa-
tion and other consideration received by Franchisee derived from any form of
advertising.
(6) "Gross Annual Lease Receipts" means any fees or income received
by Franchisee for the lease or rental and compensation for any service in
connection therewith, including but not limited to studio and equipment rent
a -
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and production costs of any channel permitted or designated by the FCC to be
so leased or rented.
6801. Legislative Authority. All franchises or licenses for
a cable television system shall be granted pursuant to Section 53066 of the
Government Code.
6802. . FCC or California Public Utilities Commission Jurisdiction.
Whenever the FCC or the Public Utilities Commission (PUC) of the State of Cali-
fornia or any other federal or state body or agency shall now or hereafter e xer
cise any paramount jurisdiction over any specific provisions of the franchise,
.
such paramount jurisdiction shall preempt or preclude the exercise of like
jurisdiction by City.
6803. Continuing Responsibility for Signal ualit
Q y Franchisee
shall retain full responsiblity for the quality of cable television service to
all recipients of redistributed service (i.e. , through microwave,f master antennae.
or satellite redistribution) . Franchisee shall be presumed to have retained
such responsibility together with all obligations arising from the franchise,
• • q nchise,
including but not limited to charges to the ultimate recipient for service.
6804. Equality of Rates. Franchisee shall not rant any pref-
erence Y P
erence or advantage to any person or group, nor subject any person or rou. to
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prejudice or disadvantage as to rates, services, service facilities, rules and
regulations or in any other respect relative to the rights granted under the
franchise. .
6805. FCC Compliance. Franchisee shall, at all times, comply
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with the rules and regulations governing CATV operations promulgated by the FCC
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specifically but not limited to those set out in Section 76.31 of. the FCC Rules
and Regulations. This shall include adherence by the Franchisee to FCC rules
regarding technical and engineering specifications involved in the construction
of the CATV system and signal carriage therein. .
100
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Consistent with the requirements of Section 76.3. (a) (6) of the FCC, any
modification(s) of Section 76.31 resulting from amendment thereto by the
FCC shall to the extent applicable be considered as a part of the franchise
as of the effective date of the amendment made by the FCC.
6806. Application for Franchise. Any person desiring a fran-
chise or license for a cable television system shall file an adequate appli-
cation with the City.
68Q7. Contents of Application. An adequate application for
a franchise or license for a cable television system shall contain, where
applicable:
A. Designation of specific area to be served by Franchisee.
B. Resume of prior history of applicant, including the expertise
of applicant. in the cable television field. •
C. . List of stockholders of applicant and percentage of stock owned
or controlled by each shareholder.
D. List of officers of applicant, together with a description of
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education and business background of each officer.
E. A current financial statement of applicant verified by a CPA
audit. If statement is unavailable, then the following will be required:
. .
. (1) Letters of credit.
(2) Letters from persons verifying or having knowledge of
applicant's business experience, technical expertise and
. financial... status.
(3) Itemized business bank accounts, if any, together with name,
and location of banks handling. accounts..
•
Applicant will be required to authorize release of finan-
cial information to City from financial institutions relating
to information supplied by applicant in support of the ap-
plication.
F. Proposed construction schedule, providing for at least 20% con-
struction per year for five (5) years.
G. A street map of area to be served including the location of
proposed or existing head-end site (antenna site) and business office.
H. Legal description of area to be served.
I. Proposed rates and charges to be charged subscribers.
J. Itemized electronic equipment to be used, channels to be provided,
pay TV or additional services and type of converter.
K. Technical market survey of area and economic analysis including
number of homes, population, income bracket and percent of those requesting
service, if available.
L. The names and addresses of any parent or subsidiary of applicant
or any other business entity owning or controlling applicant in whole or in
part, or owned or controlled in whole or in part by applicant.
M. Any additional requirements that the City shall deem to be
applicable.
6808. Deposit. Upon receipt of an application, the City shall
estimate the cost of publication of the notice of hearing and of posting such
notice in three places within the area to be served and notify the applicant
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of the amount thereof and that they must deposit that amount with the City.
6809. Setting for Public Hearing. Upon receipt of the required
deposit, the City Clerk shall set the application for hearing at a time and
date approved by the City Council.
6810. Notice of Hearing. Not less than 10 days before the
hearing, the City Clerk shall give notice in writing of the time, date and
place of hearing to the applicant. The City Clerk shall serve such notice upon
the applicant either by first-class mail, postage prepaid, or by personal de-
livery therof to applicant.
6811. Posting Notice. In those three places within the area
to be served which the City Clerk finds will most adequately notify the in-
habitants thereof, the City Clerk not less than 10 days prior to the hearing
shall post notice of the time, date and place of hearing at each of three
locations.
6812. Contents of Posted Notice. The posted notice of hearing
shall state the applicant's statement of prices to be charged and also shall
state:
...3.... Ordinance NO. 100
_ ,
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`Any person having objections to the granting of the franchise or
license for which application is made, or wish=..ng to suggest any y
other terms and conditions which should be included in such franchise
or license, at any time prior to the date above named ma y wit h
file w' ,
the City Clerk in writing his/her objections or suggestions, or
both, giving his/her reasons therefor, and he may appear at the
time and place of the hearing to be heard relative thereto.
6813. Publication. The City Clerk shall publish in a news-
paper of general circulation circulated within the area to be served and ur-
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suant to Section 6063 of the Government Code the same notice as is required
to be posted. .
6814. Payment for Publication and Posting. If the cost of
publication and posting of notice of hearing exceeds the amount. deposited b
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the. applicant, the City shall bill for the deficiency. The applicant shall
pay the whole of such bill within thirty (30) days after receipt thereof. If
the amount of the deposit exceeds the cost of publication and posting, the
City shall refund the difference to the applicant.
l
6815. Protests and Su estions. Any person interested,�� P d, at
any time after the.filing of an application as provided in this article, and
prior to the hearing thereon, may file with the City Clerk written protests
or suggestions, or both, either against the granting of the franchise or license
or to suggest any terms and conditions which should be included in the fran-
chise or license. The Council in considering the application shall ll. gave con-
sideration to all of such protests and suggestions.
6816. - Conduct of Hearin At the
Hearing. e time and place set for the
hearing or at the time and place to which the hearing may be continued by the
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Council, the Council shall hear the applicant, who may present any evidence
to show why the franchise or license should be granted, why certain terms or
conditions should be imposed or not imposed on such franchise or license if
granted, and also shall hear testimony or statements of other persons who
may attend the hearing and present reasons why the application should be denied
or why, if granted, the franchise or license should or should not be subject
to certain conditions.
6817. Decision after Hearing. Within
thirt y (30) days after
the close of the hearing, and based upon the evidence received at the hearing
ring
and other matters which the Council is required to consider, the Council shall
make a decision as to whether or not the application should be g ranted and
if granted, subject to what conditions. The Council shall send a copy of its
decision to the applicant.
6818. ., Alienation of Franchise. Franchisee shall not sell,
transfer, lease, assign or dispose of, in whole or in part, either by forced
or involunatary sale, or by ordinary sale, contract, consolidation or other-
wise, the franchise without the prior consent of the Council and then only
upon such terms and conditions as may be prescribed _ by the Council. Any
attempt to sell, transfer, lease, assign or otherwise dispose of the fran-
chise without the consent of the Council shall be null and void.
No such con-
sent shall be required for a transfer in trust, mortgage or other hypothe-
cation, in whole or in part, to secure an indebtedness, except when such hypo-
thecation shah. exceed fifty percent (50%) of the market er
et value: of the property
of Franchisee or any part thereof. --
In the event that Franchisee is a corporation, prior approval of
PP the Council
required where ownership '
shall be re
q , rship or control of more than thirty percent (30%)
of the voting stock of Franchisee, is acquired by ro
y a person or group of persons
acting in concert, none of whom already own or control thirty percent 300 P C ) or
more of the voting stock, singularly or collectively.
Franchisee shall notify City in writing of any foreclosure or . judicial
r any other aud�.oial.
sale of all or a substantial part of the property of Franchisee or upon the
termination of any lease or interest covering all or a substantial, P art of
said franchise property. Such notification shall be considered by City as
notice that a change in control of ownership of the franchise_ has taken place
and the provisions hereunder governing the consent of City to such change in
control of ownership shall apply.
6819 Rights Reserved to City. In addition to any rights
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specifically reserved to City by this chapter, City reserves to itself every
right and power which is required to be reserved by any rovisionof any C'
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ordinance or under the franchise, and Franchisee by acceptance of the franchise
.
_4 Ordinance No. 100
.. ..:. :....
agrees to be bound thereby and to comply with any action or requirement of
of City in its exercise bf any such right or power.
City shall have the right to inspect during normal working hours, Franchisee`s
facilities and records relating to the Franchise.
City shall have the right to waive any provision of the franchise, except
those required by federal or state regulation, if the City determines (1) that
it is in the public interest to do so, or (2) that the enforcement of such
provision will impose an undue hardship on the Franchisee or the subscribers.
To be effective, such waiver shall be evidenced by a statement in writing
signed by a duly authorized representative of City. Waiver of any provision
in one instance shall not be deemed a waiver of such provision subsequent to
such instance nor be deemed. a waiver of any other provision of the franchise
unless the statement so recites.
11/ 6820. Establishment and Extension of Service.
A. Within thirty (30) days after acceptance of the Franchise, the
permits,
Franchisee shall proceed with due diligence to obtain all necessar
authorization, the FCC Certificate of Compliance and any other authorizations
which are required in the conduct of its business. In connection therewith,
copies of all petitions, applications and communications submitted by the.
Franchisee to the FCC, or any federal or state regulatory body having 'uric-.
dication in any matter
respect to
Pf y affecting Franchisee's cable television
operation, shall also be submitted concurrently to the City Clerk.
B. Franchisee shall within eighteen (18) months after acceptance
of franchise obtain all necessary permits, certifications and authorizations
as indicated in paragraph A, supra. Franchisee shall notify City when all
such permits, authorizations and certifications have been obtained, and shall
send a copy of the FCC Certificate of Compliance to the City Clerk. Should
Franchisee be unable to comply with the requirements of this paragraph within.
the time specified herein, the franchise herein granted shall become null and
void and Franchisee shall have no rights thereunder.; provided, however, that
City may for good cause shown by Franchisee grant extensions of time to comply
with this requirement.
C. Within ninety (90) days after obtaining the necessary permits,
certifications and authorizations, Franchisee shall commence construction and
installation of the cable television system. Franchisee shall notify City in
writing, . _ y
g, within ten (10) days thereof of the date-of commencement of construc-
tion and installation work.
D. The Franchisee shall extend and complete cable television system
throughout the designated service area with reasonalbe diligence. Within one
(1) year after complying-with the requirements of paragraph B, supra, Fran-
chisee shall complete the construction of an operable "head-end" and shall
construct energized trunk cable to at least twenty percent of the remaining
authorized franchised service area. At the end of five. (5) years after com-
plying with the requirements of paragraph B, supra, Franchisee shall be cap-t -
able of providing basic service to every residence within the franchise area.
E. Upon request of any resident or group of residents of the City
III for cable television service in an area of the Franchise where there is no
near future construction plan, the Grantee shall conduct a survey to determine:
(1) The total capital investment required for extension of service
to the area; and
(2) The number of equivalent full time subscribers which can be
expected as a result of the line. extension.
If the results of such survey indicate there is at least the equivalent of
eight (8) full time annual subscribers per one thousand dollars ($1,000.00 .
}
of the expected capital investment (excluding installation costs) , who will
agree to contract, in writing, for a minimum of five (5) years of cable tele-
vision service, the Grantee will construct the extension at no cost to sub-
scribers for construction other than normal installation fees.
In the event, however, that such survey indicates that there will be less than
the equivalent of eight (8) annual subscribers for each $1,000 of capital cost
of such extension, Grantee shall construct such extension if the subscribers
in the area of such extension agree to:
(1) Contract in writing for a minimum of five (5) years of cable
television service, and, said contract becomes void should •
--5- ordinance No.100
subscriber move prior to end of five (5) years; and,
(2) Contribute to the capital cost of such extensions in accordance
with the following table to wit:
CAPITAL PARTICIPATION PER $1,000 INVESTED
Number of Grantee Total Subscriber Individual Subscriber
Subscribers Contributions Contributions Contributions
8 and over $1,000.00 none none
7 847.00 153.00 $ 22.00
6 673.00 327.00 55.00
5 500.00 500.00 100.00
4 327.00 673.00 168.00
3 none 1,000.00 333.00
In the event that service rates are adjusted subsequent to the effective
date of this chapter,P , the schedule of Grantee Capital Contributions shall.
be adjusted by a factor determined by the following formula:
(R-C) (T)
100 - AG
Where:
R 2 Cumulative percentage change in rate.
C = Cumulative percentage change in the consumer price index since
last adjustment.
T = Percentage amount of change in income available after application
P� �.on
of Federal and State Income Tax Rates.
A,G = New Grantee contribution. adjusted factor
EXAMPLE
2 years elapsed
R = From 7.00 to 8.50 = 21.4% Increase
C = C.P.I. 14% total change (2 years) New Urban
T = 47.32% based on Federal = 48%
State = 9%
Therefore:
(R-C) (T)
100 AG
(21.4 -- 14.0) (47.32)
oo = AG
350.168
100 AG
AG = 3.5 (%)
Therefore schedule would be adjusted to: 8 subscribers per-
p $1035.00 from
8 subscribers per $1000.00 of construction capital. It is -the intention
of
the above subscriber capital contribution plan to return subscriber cata �.
p'� al
contributions to the subscribers as, if and when, additional subscribers
connect to the Cable Television System in the area of such extension. There--
fore, Grantee agrees that it will, during the term of this agreement,g collect
subscriber contributions from each new subscriber in the area of such exten-
sion and disburse the same equitably to all subscribers in the area either
directly to each subscriber or through the area Association.
An account of such capital contribution fund will be rovided
P to any sub-
scriber in the extension either directly to each subscriber in the
e extension
area or to the area Association upon request.
6821. Regulation of Rates and Services
A. Rates: The Franchisee shall notify the City Clerk
City in writing
of any rate or charge increase(s) . The Council shall have the right back--up data supporting the ght to request
pp g increases and to disapprove or revoke .
such increases that it deems excessive and/or improper.P P Such disapproval, or
revocation, shall be transmitted in writing to the Franchisee within 0
9 days the effective date of the increase.
-6- Ordinance No. 100
If the Council does not act on the increase in rates or charges within the
allotted time frame, the proposed increase(s) will remain in effect.
Resolution of any disapproved rate or charge increase(s) shall be accomplished
by negotiations between representatives appointed by the City Council and repre-
sentatives of the Franchisee.
Subscribers shall be notified of any change in subscriber rates and/or charges
and the date of City Council public hearing on the changes in rates and/or
charges, in writing, not more than 90 days and not less than 45 days before
the changes will become permanent unless disapproved or revoked by the City
Council.
The Franchisee may not institute rate or charge increases for eighteen (18)
. calendar months following notification to the City of the previous rate in-
crease. The Franchisee, upon demonstration of urgency, may at any time peti-
tion the City Council for a waiver of the 18 month time period.
The foregoing procedure.for the increase of rates and charges shall be-exercised
in accordance with, and only insofar as permitted by, applicable FCC rules
and regulations.
B. Minimum Service Standards:
(1) Franchisee shall construct a cable television system with
the capability of delivering not less than twenty (20) audio-visual channels
to residential subscribers. This cable system shall have the. technical capacity
for nonvoice return communication when the FCC so rules.
(2) Franchisee shall distribute in color those television sig-
nals which it receives in color.
(3) Franchisee shall render such service to subscriber as will
meet or exceed FCC technical and performance requirements.
(4) Franchisee shall provide as a minimum the local access
channel capacity required by the Federal Communications Commission. This
shall not be less than one channel for composite use, including use by local
government, educational institutions, and the public.
(5) Franchisee shall render efficient service, making repairs
promptly and interrupting service only for good cause and for the shortest
time possible; such interruptions insofar as possible shall be preceded by
notice given to subscribers twenty-four (24) hours in advance and shall occur
during the periods of minimum use of the system.
(6) Franchisee shall maintain and upgrade the system and services
to reflect those technical and economic developments occurring during the
term of the franchise which will benefit the public in terms of new and more -
effective and efficient services.
(7) Franchisee shall obtain prior authorization from the City
to operate under a fictitious name other than that stated in this franchise.
Any fictitious name shall be filed with the City Clerk.
(8) Franchisee shall provide and maintain continuous service
to subscribers unless allowed otherwise by the City. Franchisee may petition
the City to authorize the suspension or abandonment of service upon such
reasonable terms and conditions as may be prescribed by the City.
6822. Subscriber Complaints. Investigation and resolution
of subscriber complaints shall be effected by the Franchisee not later than
three (3) business days after receipt of the complaint.
Upon complaint by any subscriber, Franchisee shall have the burden to satisfy
City that a signal is being delivered which is of sufficient strength and
quality to meet standards contained in the FCC rules and regulations_
Franchisee shall maintain a written complaint record containing the following g
information:
- - Date and time of subscriber complaint
- - Identification of the complainant by name and address
-7- Ordinance WO.. 100
- A record of when and what action was taken by Franchisee to
resolve the complaint.
Said record shall be kept at Franchisee's local office for a period of two
(2) years after receipt of any such complaint. A copy of said complaint
record shall be submitted by Franchisee to City within ten (10) days following
receipt of a written request therefor by City.
Franchisee shall provide each subscriber in the authorized franchise area
with a notice identifying City as the franchising authority, indicating the
local business headquarters office of Franchisee to handle subscriber complaints,
and identifying the City of Rancho Palos Verdes as the referral agency if
any problem regarding the CATV service or rates is not resolved by the Fran-
chisee to the reasonable satisfaction of the subscriber.
Franchisee shall maintain a local business headquarters office within ten
(10) miles of the City and provide the name, address and phone number of a-
person who will act as the company's agent to receive complaints regarding
quality of service, equipment malfunctions and similar matters. The local
office shall be open to receive inquiries or complaints from subscribers
during normal business hours. A toll-free phone number shall be available
to all subscribers located within the franchised area for the reporting of
service problems on a 24 hours per day, seven days per week, 365 days per
year basis.
(1) The Grantee shall credit or refund to the subscriber an amount
equal to five percent (5%) of the total monthly service charge
for each day's service interrupted whenever service is not
provided for a period of twenty--four (24) hours, beginning
from the time such outage is reported to the Grantee, except
when such outage is caused by circumstances outside the Grantee's
control such as fire, earthquake, riot and other similar cir-
cumstances.
(2) A subscriber bill of rights approved by the City shall be pro-
vided to each subscriber by the Franchisee published initially
and with each change in rate and/or charge thereafter.
6823. Service to Public Buildings. Franchisee shall, at cost,
provide and maintain one (1) cable television drop to each City facility,
Library District, and public school district located within the authorized
franchise service area upon request for service.
6824. Service to private nonprofit schools. Franchisee shall,
at cost, provide and maintain one (1) cable television drop to each private,
nonprofit school site within the authorized franchise service area.
As used in this section, "private, nonprofit schools" means schools that satis-
fy the requirements of Section 12154 of the Education Code of the State of
California and which are exempt from taxation under Section 214 of the Revenue
and Taxation Code of the State of California.
6825. Interconnection. Upon the effective date of the Fran-
chise, the Grantee shall install no CATV System component, whether as part of
a new CATV System, as an extension of an existing system, or as a replacement
for an existing system, unless such component has a bi-direction interconnect
capability. Whenever adjacent systems have full bi-directional interconnect
capability, the City reserves the right to require such systems be inter-
connected provided that the City has first consulted with the Franchisee
and provided that such interconnection is financially and technically feasible.
6826. Fair Employment Practices. Franchisee shall not make
any discrimination, distinction or restriction on account of color, race, re-
ligion, ancestry or national origin contrary to the provisions of Section 51
of the Civil Code of the State of California which is incorporated herein by
reference.
All provisions of Section 1410 through 1432 of the Labor Code of the State of
California (California Fair Employment Practice Act) are hereby incorporated
herein by reference.
6827. Franchise Fee.
A. In consideration for the granting and exercise of the franchise
as herein defined, for the purpose of constructing and operating a cable .
Ordinance No..100
television system, Franchisee shall pay annually to the City in lawful money
of the United States, and during the life of the franchise, three percent
(3%) of its gross subscriber revenues received by the Franchisee for regular
monthly cable television services rendered to customers located within the
authorized franchise service area. However, the City reserves the right
to change its fees at five (5) year intervals after a public hearing determines
good cause is found and such action is not in conflict with FCC rules and
regulations.
(l) For the purpose of this section only, the term "gross subscriber
revenues" shall be deemed to be installation fees, disconnect and reconnect
fees and fees for regular cable benefits including the transmission of broad-
cast signals and access and local origination channels, if any, derived from
its operations within the authorized franchise service area It does not
include revenues derived from per-program or per-channel charges, leased
channel revenues and advertising revenues or any other incomes derived from.
the system. The Franchisee shall pay annually to the City an amount equal
to the total of the following derived from its operations within the authorized
II/
franchise service area:
(a) 3% of its gross annual basic subscriber receipts;
. ,
(b) 3% of its gross annual nonbasie service receipts,
(c) 3% of its gross annual advertising receipts;
(d) 3% of its gross annual lease receipts.
(2) The franchise payment•period for the franchise shall be on a
calendar year basis. •
B. Checks for all such payments shall be made payable to the City
of Rancho Palos Verdes and shall be submitted to the Administrative Services
officer within one hundred and five (105) days after the expiration of said
period. Franchise fees remitted and actually received by the City on or
before the last day of the 105-day•period following each payment period shall
be deemed timely. remitted. Franchise fees remitted by mail shall be deemed
timely filed only if the envelope enclosing the franchise fee is addressed
to the City and bears a postmark on or prior to the due date.
C. Each payment shall be accompanied by statement of the manager,
or other Franchisee officer of equal authority, showing in detail the facts
material to a determination of the amount due.
D. In the event Franchisee fails to make the payments for the fran-
chise on or before the dates due as hereinabove provided, Franchisee shall
pay interest on the amount due at the rate of 10% per annum from the date
due until paid.
E. Franchisee shall keep and preserve, for a period of three (3)
years subsequent to the date of the most recent franchise fee determination,
all the records necessary to determine the amount of such franchisee fee,
including but not limited to all business records and bank statements.
F. At the granting of the franchise a reserve fund, earmarked for
a potential future rate review and other expenses incidental to the admini-
stration of the franchise shall be established. At such time when the amount
is reached, the franchise fee to the City shall be waived and appropriate
II/
reduction to the subscribers shall be effective.
6828 EfE2EIPang2241dits-
.
A. Franchisee shall permit examination by any duly authorized repre-
sentative of City at all reasonable times of any and all maps and other such
records and accounts kept or maintained by Franchisee or under its control
concerning the operation, affairs, transactions or property • of Franchisee
relating to the franchise.
B. City shall have the right to require such additional reports
as may be reasonably necessary to confirm Franchisee's performance of obli-
gations hereunder to City and to Franchisee's subscribers.
-9.. Ordinance No 100
6829.. Construction Requirements.
A. All franchise property to be constructed and operated under the
franchise shall be built and constructed of first class materials in a good
and workmanlike manner and shall be maintained in good working condition.
B. Franchisee shall not construct or install any poles, conduits or
other system facilities within City highways until Franchisee has secured the
necessary permits from the City or obtained any other necessary authorization
from City, and obtained permission from the Federal Aviation Authority to
erect and maintain antennas suitable to the needs of the system and its sub-
scribers.
C. Franchisee shall provide for 20-channel capability throughout
the underground system.
6830. Removal or Abandonment of Franchise Property. In the
event that (1) the use of any franchise property or a portion thereof is
discontinued for a continuous period of twelve (12) months, or (2) franchise
property has been installed in any highway, or any portion thereof, without
complying with the requirements of the franchise, or without a permit or
other authority, as required herein, Franchisee, upon notice to do so from
City and at Franchisee's sole cost and expense, shall remove promptly from -
the highway all such franchise property other than any such property which
the City may permit to be abandoned in place. Franchisee shall obtain a -
permit from City prior to any such removal or abandonment in place.
Upon permanent abandonment of any franchise property in place, Franchisee,
if required by City, shall submit to City an instrument, satisfactory in
form to the City Attorney, transferring to City the ownership of the fran-
chise property as abandoned. •
In addition to the foregoing, the Public Works Director, upon such terms as
the City may impose, may give the Franchisee permission to abandon, without
removing, any system facility or equipment laid, directed, constructed, oper-
ated or maintained under the franchise. The length of any such facility or
equipment abandoned. with such permission shall not be considered in calcu-
lating payments due under the franchise except for the time prior to the
effective date of such permission. Nothing contained in the franchise shall
be construed to permit the Franchisee any right to omit from its annual re-
ports, if such reports are required and from the calculation of its franchise
payments, the length of any abandoned facility or equipment of Franchisee
except in the manner aforesaid. Unless such permission is granted, the Fran-
chisee shall remove all abandoned facilities and equipment within ninety (90)
days after such abandonment and shall restore the highway to its former state
at the time such facilities and equipment were removed, as near as may be
so as not to impair its usefulness.
6831. ' Hold Harmless. Franchisee shall indemnify, defend and
hold City, its officers, agents.and employees harmless from any liability,
claims, . damages, costs or expenses, including reasonable attorney's fees,
arising from injury to persons or damages to property proximately caused by
any conduct undertaken by the Franchisee, its agents or employees, by reason
of the franchise; Franchisee shall at his sole cost and expense, upon demand
of City, appear in and defend any and all suits, actions or other legal pro-
ceedings, 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, agents.or employees,
and arising out of or pertaining to the exercise of rights arising under the
franchise.
6832. Insurance. On or before commencement of franchise
operations, Franchisee shall obtain policies of liability, worker's compen-
sation and property insurance from companies authorized to transact business
in California by the Insurance Commissioner of California.
The policy of liability insurance shall:
A. Be issued to Franchisee and name City, its officers, agents
and employees as an additional insured.
B. Indemnify for all liability for personal and bodily injury, death
and damage to property arising from activities conducted and premises used
pursuant to this Ordinance by providing coverage therefor, including but not
limited to coverage for:
(1) Negligent acts or omission of Franchisee and the agents, ser-
e
vants and employees thereof, committed in the conduct of franchise operations;
and/or
(2) Use of motor vehicles.
C. Provide a combined single limit for comprehensive general lia-
bility and comprehensive authomobile liability insurance in the amount of One
Million Dollars ($1,000,000).
D. Be noncancellable without thirty (30) days' written notice there-
of directed to City.
The policy of worker's compensation insurance shall:
A. Have been previously approved as to substance and form by the
California Insurance Commissioner.
B. Cover all employees of Franchisee who in the course and scope of
their employment are to conduct the franchise operations.
C. Provide for every benefit and payment presently or hereinafter
conferred by Division 4 of the Labor Code of the State of California upon an
injured employee, including the vocational rehabilitation and death benefits.
The policy of property insurance shall provide fire insurance with extended
coverage, as well as burglary and theft insurance, on the inventory, trade
fixtures, furnishings and equipment to be used by Franchisee in the conduct
of franchise operations in an amount sufficiently adequate to enable Franchisee
to resume franchise operations following the occurrence of any of the risks
covered by said insurance.
Franchisee shall file with the City Clerk prior to commencement of the franchise
operations either certified copies of said policies or a certificate of insurance
for each of the required policies executed by the company issuing th.e lic
Po Y,
certifying that the policy is in force and providing the following information
with respect to said policy:
A. The policy number
B. The date upon which the policy will become effective and the date
upon which it will expire.
C. The names of the named insured and any additional insureds.
D. Subject of the insurance.
E. The type of coverage provided by the insurance.
F. Amount or limit of coverage provided by the insurance.
C. A description of all endorsements that form a part of the policy.
Conduct of the franchise operations shall not commence until Franchisee has
complied with the aforementioned provisions of this section, and shall be
suspended during any period. that Franchisee fails to maintain said policies
in full force and effect.
6833. Faithful Performance Bond. On or before the effective
date of the ordinance granting the-franchise, Franchisee shall file and there-
after at all times during the life of the franchise keep on file with the City
Clerk a corporate surety bond running to the City, or to its lawful successors
in interest by virtue of future incorporations or annexations, in the P enal
sum of Five Thousand Dollars ($5,000.00) with surety to be approved by the
City, conditioned that Franchisee shall well and truly observe, fulfill and
perform each condition of the franchise and that in case of any breach of
condition of the bond the whole amount of the penal sum shall be deemed to be
liquidated damages and shall be recoverable from the principal and sureties
of the bond. If said bond is not so filed prior to the effective date of the
ordinance granting the franchise, the award of the franchise may be set aside
and the ordinance granting the franchise repealed at any time prior to the
filing of said bond and any money paid in consideration for said award of
franchise shall be deemed forfeited. In the event that said bond, after it
has been so filed, shall at any time during the life of the franchise become
insufficient, Franchisee agrees to renew said bond, with sureties to be approved
by the City, within ten (10) days after written notice to do so from City.
-11- Ordinance No. 100
6834. Termination of Franchise due to Default.
A. Any such franchise granted under this chapter may be terminated
prior to its date of expiration by the City Council in the event that the
City Council shall have found, after thirty days notice of any proposed termi-
nation and public hearing, that:
(1) The Grantee has failed to comply with any provision of ordinance,
or has, by act of omission, violated any term or condition of any franchise
or permit issued; provided, that in the event of such violation the City
Manager shall make written demand that Grantee do or comply with any such
term or condition within such reasonable amount of time as is deemed by the
City Manager to be appropriate under the circumstances, and the Grantee shall
have such amount of time thereafter in whiCh to fully comply. .
B. Upon declaration of termination, all rights and privileges accruing
to Franchisee by virtue of the franchise shall be terminated and Franchisee
shall cease all construction under said franchise and shall, within thirty
(30) days after such declaration of forfeiture, conclude all 'operation and
business under the Franchise.
6835. Term of Franchise.
A. The term of the Franchise shall commence with the effective date
thereof, and continue and remain in full force and effect for a term of five
(5) years or until such time as Grantee shall surrender or abandon same or
said Franchise shall be forfeited for noncompliance by the Grantee with the
terms and conditions of this division, or the City. shall condemn and take on
the power or eminent domain, in accordance with then existing law, all Fran-
chise Property of Grantee.
B. During the fourth (4) year, but no later than the first day of
the fifth (5) year of the term of the Franchise, or of any subsequently re-
newed Franchise, the Grantee may make application for a new five (5) year
Franchise to begin at the expiration of the Franchise, or of any subsequently
renewed Franchise. Such application shall not be construed as an option in
favor of Grantee. Renewal shall not be unreasonably denied. Should City,
for any reason, be unable to complete the renewal proceeding prior to expira-
tion of this franchise, Grantee shall have the right to continue operation
of the Cable Television System pursuant to the terms of the franchise until
such time as the renewal proceeding is concluded.
C. A renewal of an existing Franchise will be granted only after a
full Public Proceeding Affording Due Process has been held to review the per-
formance of the Grantee, the adequacy of the Franchise and its consistency
with applicable rules.
D. Failure of the Grantee to apply for a new Franchise pursuant to
the provisions hereinabove shall be construed to mean that the Grantee intends
to dispose of its Franchise Property at the termination of the Franchise term
in accordance with the provisions of this division.
6836. Nonexclusive Franchise. The granting of the franchise
shall not be construed to prevent the City from granting any identical or
similar franchise to any person other than the Franchisee.
6837. Severability. If any provision of the franchise or
the application of the franchise to any person or circumstance is held in-
valid by a court of competent jurisdiction or is not in compliance with any
requirement of the FCC, the PUC or any other federal or state agency, the
remainder of the franchise, or the application of the franchise to persons
of circumstances other than those to which it is held invalid or not in
such compliance shall not be affected thereby.
-12- Ordinance No 100
APPROVED AND ADOPTED this 18 day of July, 1978.
AYES: SHAW, HEIN & MAYOR DYDA
NOES: BUERK
ABSENT: RYAN
- ---t f-- -e_.___
• (
MAYOR
' -.6 -,„„41 /fr----
ATTEST:
I 00
/C1/ CLE'
I
I HEREBY CERTIFY that the foregoing is a true and correct copy of
Ordinance No. 100 passed and adopted by the City Council of the City of Rancho
Palos Verdes at a meeting thereof held on the 18 day of July, 1978, and that
said Ordinance was posted pursuant to law.
...A, t•Agie )b ; j
d o, CI" ERA /
-13- Ordinance No. 100
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES )
The undersigned, being first duly sworn, deposes and
says :
That at all times herein mentioned, he/she was and now
is the duly qualified and acting Deputy City Clerk of the City of
Rancho Palos Verdes, California:
That on the 2nd day of August , 1978 , ft /she
caused to be posted in three conspicuous places , as required by law,
ORDINANCE NO. 100 (CABLE TELEVISION SYSTEMS)
a copy of which is attached hereto in' the following public places .in
the City :
1. City Hall
Rancho Palos Verdes
California
2 . Los Angeles County Fire Department,
Miraleste Station
4000 Miraleste Plaza
Rancho Palos Verdes
California
3. Ridgecrest Intermediate School
28915 Northbay Road
Rancho Palos Verdes
California
I certify under penalty of perjury that the foregoing is a
true and correct affidavit of posting.
LEONARD G. WOOD, City Clerk.
City of Rancho Palos Verdes
B
Def•ut fr '4