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HomeMy WebLinkAboutOrdinance 99-66 ORDINANCE NO. 99- ~ ~ AN ORDINANCE OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, PROVIDING THE TERMS AND CONDITIONS FOR THE OPERATION OF CABLE TELEVISION SYSTEMS AND THE APPLICATION, PROCEDURES AND REQUIREMENTS RELATING TO THE GRANT OF FRANCHISES FOR THE CONSTRUCTION, INSTALLATION, OPERATION AND MAINTENANCE OF CABLE TELEVISION SYSTEMS, EQUIPMENT AND FACILITIES IN, ON, ACROSS, ABOVE OR THAT IN ANY MANNER WHATSOEVER USE THE CITY'S PUBLIC RIGHTS-OF- WAYS AND TO ENSURE THAT USE OF THE CITY'S PUBLIC RIGHTS-OF-W AYS IS IN THE PUBLIC INTEREST AND IN CONFORMANCE WITH APPLICABLE LAW; PROVIDING FOR THE REPEAL OF SECTION 8AA OF THE CODE OF MIAMI-DADE COUNTY AS ADOPTED BY SECTION 8.3 OF THE CHARTER OF THE CITY OF SUNNY ISLES BEACH AS ITS OWN ORDINANCE; PROVIDING FOR SEVERABILITY; PROVIDING FORAN EFFECTIVE DATE. WHEREAS, effective with the adoption ofthe Charter of the City of Sunny Isles Beach (the "Charter") on June 16, 1997, the City of Sunny Isles Beach, Florida was created as a municipal corporation pursuant to the Constitution of the State of Florida and the Home Rule Charter of Metropolitan Dade County; and WHEREAS, Section 8.3 of the Charter adopted the Code of Miami-Dade County as its own, including Section 8AA, but the City Commission has now determined it is in the public interest of the City of Sunny Isles Beach (hereinafter referred to as the "City of Sunny Isles Beach" or the "City") to franchise the operation of one or more cable television systems in the City on its own terms; and WHEREAS, one or more cable operators are occupying the City's public rights ofways and operating cable systems pursuant to licenses granted by Metropolitan Dade County; and Cable Ordinance -1- WHEREAS, pursuant to Chapter 8AA-16 of the Code of Metropolitan Dade County, cable operators operating in unincorporated areas of the County pay to the county a fee of5% of the gross revenues and operators in the incorporated areas pay to the County a fee of3%; and WHEREAS, under Federal law , the maximum franchise fee that may be imposed on a cable operator is 5% of the operator's gross revenues; and WHEREAS, the City of Sunny Isles Beach, as now incorporated, is entitled to collect the maximum fee permitted by applicable law less only that amount due to Dade County; and WHEREAS, it is the intent of the City of Sunny Isles Beach to exercise its authority as a local franchising authority to the fullest extent allowed by law; and WHEREAS, pursuant to Section 621 ofthe Communications Act of 1934, as amended, 47 U.S.C. S 541, a cable operator may not provide cable service without obtaining a franchise from the franchising authority; and WHEREAS, pursuant to Section 4.03 ofthe Charter, the City Commission shall take action to grant, renew, or extend a franchise only by Ordinance; and WHEREAS, cable operator(s) have submitted or may submit applications for cable television franchises to the City; and WHEREAS, the City Commission has determined that adoption of a comprehensive Ordinance is in the interests of the citizens ofthe City of Sunny Isles Beach; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, THAT: Cable Ordinance -2- ARTICLE I. IN GENERAL Sec. 1. Short Title. This Ordinance shall be known and may be cited as City of Sunny Isles Beach, Florida Cable Television Ordinance. Sec. 2. Creation of Ordinance The City of Sunny Isles Beach, Florida, Cable Television Ordinance is hereby created to read as follows: ARTICLE II. CABLE TELEVISION Sec. 1. Definitions. For the purpose of this article and any application made pursuant hereto, the following terms, phrases, words and their derivations shall have the meanings 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 words "shall" and "will" are mandatory, and "may" is permissive. Words not otherwise defined herein or in any franchise agreement that might be granted hereunder shall be given the meaning set forth in the Communications Act of1934, 47 U.S.C. ~ 521 et seq., and the Telecommunications Act of 1996, and as those Acts have and may hereinafter be amended (collectively the "Communications Act"), and, if not defined therein, their common and ordinary meaning. A. Access channel means any channel on a cable system set aside without charge by the cable operator for public, educational and/or local governmental use. B. Activated channel means those channels engineered at the headend of a cable system for the provision of services generally available to residential subscribers of the cable system, regardless of whether such services actually are provided, including any channel designated for public, educational, or governmental use. Channels on which signals flow in the direction from the headend to the subscriber are referred to as "downstream channels." Where the signal flows to the headend for re-distribution, it shall be referred to as an "upstream channel." C. Affiliate means any person who owns or controls, is owned or controlled by, or is under common ownership or control with a franchisee. D. Applicant means any person submitting an application within the meaning of this article. E. Application means any proposal, submission or request to (1) operate a cable system Cable Ordinance -3- within the City; (2) construct and install a cable system within the City; (3) transfer a franchise or control of the franchisee; (4) renew a franchise; (5) modify a franchise; or (6) seek any other relief from the City pursuant to this article, a franchise agreement, the Communications Act, or other applicable law. An application includes an applicant's initial proposal, submission orrequest, as well as any and all subsequent amendments or supplements to the proposal and relevant correspondence. F. Basic cable service or basic service means any service tier which includes the retransmission oflocal television broadcast signals, and public, educational, or governmental access channels. G. Business day or working day shall mean any Monday through Saturday, 52 weeks per year, except that such definition shall not include holidays. H. Cable operator means any person who operates or otherwise controls a cable system within the City. 1. Cable service means (i) the one-way transmission to subscribers of video or other programming services; and (ii) subscriber interaction, if any, which is required for the selection or use of such video programming or other services. J. Cable system, cable television system, or system, means any facility consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within the City. Such term does not include (a) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (b) a facility that serves subscribers without using any public right of way; (c) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Communications Actofl934, 47 U.S.C. ~ 201 et seq., except that such facility will be considered a cable system to the extent it is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on demand services; (d) an open video system that complies with section 653 of the Telecommunications Act of 1996; or (e) any facilities of any electric utility used solely for operating its electric utility systems. Subject to applicable law, the foregoing definition of "cable system" shall not be deemed to circumscribe the valid authority ofthe City to regulate the activities of any other communications system or provider of communications services, including but not limited to telephony and open video systems. K. City means the City of Sunny Isles Beach, a municipal corporation of the State of Florida, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form. L. Communications Act means the Communications Act of 1934,47 U.S.C. ~ 151 et seq., as that Act has and may hereinafter be amended. M. Control of a franchisee or applicant means possession of the ability to direct or cause the direction of the management or policies of a franchisee or applicant, or the operation of Cable Ordinance -4- a franchisee's system, whether through operational control in whatever manner exercised or ownership of voting securities, by contract or understanding, or in any other manner. N. County means Miami-Dade County. O. Fair market value means the price that a willing buyer would pay to a willing seller for a going concern but with no value allocated to the franchise itself. P. FCC means the Federal Communications Commission, or any successor governmental entity thereto. Q. Franchise means the right granted by the City to a franchisee in a franchise agreement to construct, maintain and operate a cable system under, on, and over streets, roads and any other public ways, rights-of-ways, or easements within all or specified areas of the. City. The term does not include any license or permit that may be required by this article or other laws, ordinances or regulations of the City for the privilege of transacting and carrying on a business within the City or for disturbing or carrying out any work on any street. R. Franchise agreement means a contract entered into in accordance with the provisions ofthis article between the City and a franchisee that sets forth the terms and conditions under which the franchise will be exercised. S. Franchisee means any person granted a franchise pursuant to this article who has entered into a franchise agreement with the City. T. Gross revenues means all revenues recognized in accordance with Generally Accepted Accounting Procedures (GAAP) generated directly or indirectly by the franchisee from any source whatsoever arising from, attributable to, or in any way derived from the operation of the cable system in the City to provide cable services. Gross revenues include, but is not limited to, fees charged subscribers for basic service; fees charged subscribers for any optional, premium, per- channel or per-program service; fees charged subscribers for any tier of service other than basic service; installation, disconnection, reconnection and change-in-service fees; late fees; leased access fees; fees, payments or other consideration from programmers for carriage of programming on the system (excluding marketing support provided for the launch of new services on the system to the extent such funds are not considered revenue under GAAP); revenue from converter, remote, modem or any other equipment rentals or sales; revenues from studio and studio equipment rental; revenues from leases of cable or fiber optic lines and other transmission devices and equipment; revenues from transmission of data; revenues from consumer products including but not limited to cable guides; advertising revenues allocable to the City based on a percentage of subscriber base in the City divided by the subscriber base of the system. Such percentage will then be multiplied by the system's total advertising revenue to determine the allocable gross revenue stemming from advertising; revenues from home shopping channels or other sources allocable to the City, provided that where certain home shopping channel or other such revenue is allocable to more than one franchise area due to common zip codes, the franchisee will allocate the percentage of revenue to the City which is equivalent to the percentage ofthe City's population divided by the total population Cable Ordinance -5- for the allocable franchise areas in question; and the sale, exchange or cablecast by the franchisee of any programming developed on or for access channels or institutional users. Gross revenues shall be the basis for computing the franchise fee imposed pursuant to Section 8 hereof. Gross revenues shall not include any taxes on services furnished by the franchisee which are imposed upon any subscriber or user by the State, County, City or other governmental unit and collected by the franchisee on behalf of said governmental unit and which the franchisee passes on in full to the applicable tax authority or authorities. However, the franchise fee shall not be considered such a tax and shall be included within the definition of gross revenues unless otherwise prohibited by applicable law. Notwithstanding anything to the contrary, gross revenues shall not include bad debt, interest, returned check charges, late fees and promotional payments from programmers unless and until any or all of the above-listed items are included within the definition of gross revenues used to calculate franchise fee payments to Dade County. At such time as any revenue items not included herein are incorporated into the gross revenues definition used by Dade County, such items shall automatically be included in the definition of gross revenues herein without any further action by the City. U. Institutional network means a voice, data and/or video communications network constructed and/or operated and/or maintained by the franchisee for the City, the transmissions on which are generally available only to, and intended to be sent and received by, persons other than cable. subscribers generally. V. Interconnection means the electronic connection of two or more cable systems for the purpose of sharing access channel programming or other services. W. Law means all duly enacted and applicable federal, State, County and City laws, ordinances, codes, rules, regulations and orders. X. Leased access channel means a channel designated in accordance with section 612 of the Communications Act, 47 U.S.C. ~ 532, for commercial use by persons unaffiliated with the franchisee. y. Overbuild means a cable system constructed to serve subscribers in an area ofthe City served by an existing cable system. Z. Person means any individual, corporation, partnership, association and any lawful trustee, successor, assignee, transferee or personal representative thereof, but shall not mean the City unless applicable law so requires. AA. Service tier means a category of cable service provided by a franchisee and for which a separate charge is made by the franchisee. BB. State of the art means that level of production facilities, technical performance, capacity, equipment, components and service equal to that which has been developed and demonstrated to be more modem than generally accepted and used in the cable industry for comparable areas of equivalent population. The cable system shall have, at minimum, the capability Cable Ordinance -6- of providing the channel capacity, products, services and technology available from a cable system controlled by a franchisee or a parent, subsidiary or affiliate of a franchisee to any other community in the State. CC. Street or streets means the surface, the air space above the surface and the area below the surface of any public street, highway, road, boulevard, concourse, driveway, freeway, thorough- fare, parkway, sidewalk, bridge, tunnel, park, waterway, dock, bulkhead, wharf, pier, court, lane, path, alley, way, drive, circle, easement, or any other public right-of-way or public place, including public utility easements dedicated for compatible uses, or any other property in which the City holds any kind of property interest or over which the City exercises any type of lawful control, and any temporary or permanent fixtures or improvements located thereon, as may be ordinarily necessary and pertinent to construct and operate a cable system. DD. Subscriber means any person who lawfully receives cable service delivered over the cable system with the franchisee's express permission. EE. Subscriber base means the total number of residential and commercial subscribers within the City. For purposes of calculating subscribers under bulk or multi-user contracts, the franchisee shall count each unit included within a contract for service as one subscriber. Franchisee shall not use any equivalency measures including calculation based on market rate, except as expressly required by applicable law. FF. System malfunction means any cable system equipment, facility or signal failure or malfunction that results in the loss of satisfactory service on one or more channels to one or more subscribers. A malfunction is major if it affects 25 or more subscribers, or a multiple dwelling unit consisting of more than 25 or more units. GG. Transfer of a franchise means any transaction in which (1) an ownership or other interest in a franchisee or its cable system is transferred from one person or group of persons to another person or group of persons so that control of a franchisee is transferred; or (2) the rights and/or obligations held by a franchisee under a franchise agreement are transferred or assigned to another person, group of persons or business entity. HH. Two-way capability means the incorporation into a cable system of all appropriate design and engineering characteristics and features so that two-way interactive transmission, including but not limited to addressability, over the system can be implemented and activated. II. Video channel or channel means a portion of the electromagnetic frequency spectrum which is used in a cable system and which is capable of delivering a television channel, including the associated audio signal, as television channel is defined by the FCC by regulation or otherwise. Sec. 2. Intent and purposes. Cable Ordinance -7- (a) It is the intent of the City and the purpose ofthis article to promote the public health, safety, and general welfare by providing an application procedure for the grant of one or more franchises for the operation and/or construction of a cable system within the City; to provide for the regulation to the extent permitted by applicable law, of each cable system within the City in the public interest; to provide for the payment of fees and other valuable consideration by cable operators to the City for the use of streets by its cable system; to promote the widespread availability of quality cable service to City residents and businesses, the City, and other public institutions; to encourage the development of cable and other communications technologies and cable systems as a means of communication between and among members of the public, City businesses, the City, and other public institutions; to promote competitive cable rates and services; to promote the safe and efficient use of City streets; to enhance and maximize the communicative potential of streets used by cable systems; and to encourage the provision of a diversity of information sources to City residents, businesses, the community, the City, and other public institutions by cable technology. (b) Recognizing the continuing development of communications technology and uses, it is the policy ofthe City to encourage competition, experimentation and innovation in the development of cable system uses, services, programming and techniques that will be of general benefit to the community to the extent consistent with applicable laws. Sec. 3. Grant of authority: franchise required. (a) The City may grant one or more franchises in accordance with this article. (b) No person may operate or construct a cable system or any other communications transmission facilities over, on, or under public streets in the City without a franchise granted by the City unless otherwise expressly authorized by law, and no person may be granted a franchise without having entered into a franchise agreement with the City pursuant to this article. (c) Unless otherwise authorized by law, any franchise granted pursuant to this article is solely for the provision of cable service and shall not be construed to authorize the provision of telephone, non-cable, video or other telecommunications service. However, any person including but not limited to a franchisee shall, unless otherwise prohibited by applicable law, submit an application to the City for the privilege of providing other telecommunications services including, but not limited to telephone service and/or non-cable video programming services. Sec. 4. Franchise characteristics. (a) A franchise authorizes use of City streets for installing cables, wires, lines, optical fiber, underground conduit, ducts, conductors, amplifiers, vaults, and other facilities as necessary and pertinent to operate a cable system within a specified area of the City, but does not expressly or implicitly authorize the franchisee to provide service to, or install cables, wires, lines, underground conduit, or any other equipment or facilities upon private property without owner consent (except Cable Ordinance -8- for use of compatible easements pursuant to Section 621 of the Communications Act, 47 U.S.C. ~541(a)(2), or to use publicly or privately owned conduits without a separate agreement with the owners. (b) A franchise is nonexclusive, and will not expressly or implicitly preclude the issuance of other franchises to operate cable systems within the City, or affect the City's right to authorize use of City streets to other persons to operate cable systems or for other purposes as it determines appropriate. (c) The City reserves the right to reasonably designate where a franchisee's facilities are to be placed within the streets. (d) A franchise shall be a privilege which is in the public trust. No transfer of a franchise shall occur without the prior consent ofthe City and unless application is made by the franchisee and City approval obtained pursuant to this article and applicable Federal law. (e) A franchise granted to an applicant pursuant to an application submitted pursuant to this article to construct, operate and maintain a cable television system within a specified franchise territory, shall be deemed to constitute both a right and an obligation on the part of the franchisee to provide the services and facilities of a cable television system of the City, as required by the provisions of this article and the franchise. All relevant representations made by the franchisee in its application and/or public hearings before the City Commission shall be deemed to be material and made for the purpose of inducing the City to grant the franchise in the form accepted. (f) Notwithstanding anything to the contrary, in the event that franchisee, its parent, affiliate or subsidiary elects to offer to subscribers video programming services through any means or method not included within the definition of a cable system, including but not limited to an "open video system," franchisee shall remain subject to all terms and conditions of the cable television franchise granted by the City. Sec. 5. Subject to other laws. police power. (a) Any person operating a cable system in the City shall, at all times, be subject to and shall comply with all applicable Federal, State, County and local laws, rules and regulations, and shall at all times be subject to all lawful exercise ofthe police power ofthe City. (b) Subject to applicable law, except as may be specifically provided in this article or under the terms ofa franchise agreement and subject to the Communications Act, the failure of the City, upon one or more occasions, to exercise a right or to require compliance or performance under this article, a franchise agreement or a license granted by the County shall not be deemed to constitute a waiver of such right or a waiver of compliance or performance. Sec. 6. Interpretation of franchise terms: conflicts. Cable Ordinance -9- (a) The provisions of this article shall apply to a franchise agreement as iffully set forth in the franchise agreement, and the express terms of this article will prevail over conflicting or inconsistent provisions in a franchise agreement unless such franchise agreement expresses an explicit intent to waive a requirement of this article. (b) Except as to matters which are governed by Federal law or regulation, a franchise agreement will be governed by and construed in accordance with the laws of the State. (c) If any part, section, subsection or other portion of this article conflicts or subsequently comes into conflict with any Federal, State, County or local law, the prevailing law will apply, to the extent expressly permitted by applicable law. Sec. 7. Applications for ~rant. renewal. modification or transfer of franchise. (a) A written application shall be filed with the City for (a) grant of new franchise; (b) renewal of a franchise in accordance with Section 626 of the Communications Act, 47 U.S.C. ~546; (c) modification of a franchise agreement; (d) transfer of a franchise; or (e) any other relief from the City pursuant to this article or a franchise agreement. (b) To be acceptable for filing, a signed original of the application shall be submitted together with five copies, be accompanied by the required non-refundable application filing fee in the amount of $7,500.00, conform to any application forms, applicable requests for proposals, and contain all reasonably required information. The purpose of the filing fee is to defray a portion of the City's cost in processing an application. The filing fee is therefore intended to be a charge incidental to the awarding or enforcing of a franchise within the meaning of Section 622(g)(2)(D) of the Communications Act, 47 U.S.C. ~542(g)(2)(D), and may not be deducted from the franchise fee imposed in a franchise agreement. All applications shall include the names and addresses of persons authorized to act on behalf of the applicant with respect to the application. (c) All applications accepted for filing shall be made available by the City for public inspection. (d) An application for the grant of a franchise shall be submitted by any person desirous of operating a cable system in the City notwithstanding whether any such person is operating a system pursuant to a County license on the effective date hereof. ( e) An application for the grant of a new franchise may be filed pursuant to a request for proposals issued by the City or on an unsolicited basis. The City, upon receipt of an unsolicited application, may issue a request for proposals. If the City elects to issue a request for proposals upon receipt of an unsolicited application, the applicant may submit an amended application in response to the request for proposals, or may inform the City that its unsolicited application should be considered in response to the request for proposals, or may withdraw its unsolicited application. An application which does not conform to the reasonable requirements of a request for proposals may be considered non-responsive and denied on that basis. Cable Ordinance -10- (f) An application for the grant of an initial franchise shall contain, at minimum, the following information: (1) Name and address of the applicant and identification of the ownership and control of the applicant, including: the names and addresses of all persons with five percent (5%) or more ownership interest in the applicant, has been adjudged bankrupt, had a cable franchise or applicant, has been adjudged bankrupt, had a cable franchise or license revoked, or been found by any court or administrative agency to have violated a security or antitrust law, or to have committed a felony, or any crime involving moral turpitude, and, if so, identification of any such person and a full explanation of the circumstances; (2) A demonstration ofthe applicant's technical, legal and financial ability to construct and/or operate the proposed cable system, including identification of key personnel; (3) Copies of all Federal, State, County and City licenses, permits and registrations in regard to any part of the applicant's facilities located in the City; (4) A statement prepared by a certified public accountant or duly authorized financial officer ofthe applicant regarding the applicant's financial ability to complete the construction and operation of the cable system proposed; (5) A description ofthe applicant's prior experience in cable system ownership, construction and operation, and identification of communities in which the applicant or any person controlling the applicant or having more than a five percent (5%) ownership interest in the applicant has or had, a cable franchise or license or any interest therein; (6) A description of any and all pending Federal and State litigation, whether judicial or administrative, that in any manner relates to the operation of a cable television system or the provision of a cable television service to which the applicant is currently a party; (7) Identification of the area ofthe City to be served by the proposed cable system, including a description ofthe service area's boundaries; (8) A description of the physical facilities proposed, including channel capacity, performance characteristics, headend, and access Cable Ordinance -11- Cable Ordinance facilities; upon request, the applicant shall make available for inspection, information on technical design; (9) Where applicable, a description of the construction of the proposed system, including an estimate of plant mileage and its location, the proposed construction schedule, a description, where appropriate, of how services will be converted from existing facilities to new facilities, and information on the availability of space in conduits including, where appropriate, an estimate of the cost of any necessary rearrangement of existing facilities; (10) If applicant is currently operating a cable system within the City, a description of the existing system and capacity and the operator's plans to upgrade the system; (11) If applicant or applicant's parent; or any subsidiary or affiliate of applicant is currently operating a SMA TV system within the City, a list of all such locations; (12) For informational purposes, the proposed rate structure, including projected charges for each service tier, installation, converters, and other equipment or services, and the applicant's ownership interest in any proposed program services to be delivered over the cable system; (13) Upon written request, a schedule and description of franchisee's contracts with any and all residential and/or commercial complexes including, but not limited to, condominiums, homeowner's associations and apartment buildings; (14) A demonstration of how the applicant's proposal will reasonably meet the future cable-related needs and interests of the community, including a description of how the proposal will meet the needs described in any recent community needs assessment conducted by or for the City; (15) A description of any non-cable telecommunications services offered or proposed to be offered by the applicant or its parent, affiliate or subsidiary and franchisee's plan with respect to the availability of such services to subscribers in the City; (16) Pro forma financial projections for the first five (5) years ofthe franchise term, including a statement of projected income, and a schedule of planned capital additions, with all significant assumptions explained in notes or supporting schedules; -12- (17) If an applicant proposed to provide cable service to an area already served by an existing cable operator, or SMATV, the identification of the area where the overbuild would occur, the potential subscriber density in the area which would encompass the overbuild, and the ability of the streets to accommodate an additional system; (18) Any other information as may be reasonably necessary to demonstrate compliance with the requirements of this article and information that the City may request of the applicant that is relevant to the City's consideration of the application; and (19) An affidavit or declaration ofthe applicant or authorized officer certifying the truth and accuracy ofthe information in the application, acknowledging the enforceability of application commitments, and certifying that the proposal meets all Federal and State law requirements. (g) An application for modification of a franchise agreement shall include, at minimum, the following information: (1) The specific modification requested; (2) The justification for the requested modification, including the impact of the requested modification on subscribers and others, and the financial impact on the applicant if the modification is approved or disapproved; (3) A statement whether the modification is south pursuant to Section 625 of the Communications Act, 47 U.S.C. ~545, and, if so, a demonstration that the requested modification meets the standards set forth in 47 U.S.C. ~545; (4) Any other reasonable information necessary for the City to make an informed determination on the application for modification; and (5) An affidavit or declaration of the applicant or authorized officer certifying the truth and accuracy ofthe information in the application, and certifying that the application is consistent with all Federal and State law requirements. (h) An application for renewal of a franchise shall comply with the requirements of Section 20 hereof. (i) An application for approval of a transfer of a franchise shall comply with the requirements of Section 7(e) and (i) and Section 21 hereof. Cable Ordinance -13- (j) To be acceptable for filing, an application shall be accompanied by anon-refundable filing fee in the following amount, as appropriate: (1) For a new or initial franchise ........................... $7,500.00 (2) For renewal of a franchise ............................... 5,000.00 (3) For a transfer of a franchise (other than a pro forma transfer) . . . . 2,500.00 (4) For a pro forma transfer of a franchise ..................... 1,000.00 (5) For modification of a franchise agreement pursuant to 47 U.S.C. ~545 ................................................ 2,500.00 (6) For any other relief. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00 The purpose of the filing fee is to defray a portion of the City's cost in processing an application. The filing fee is therefore intended to be a charge incidental to the awarding or enforcing ofa franchise within the meaning of Section 622(g)(2)(D) of the Communications Act, 47 U.S.C. ~542(g)(2)(D), and may not be deducted from the franchise fee imposed in a franchise agreement. Sec. 8. Grant of franchise. (a) In evaluating an application for a franchise, the City shall consider among other things the following factors: (1) (2) (3) (4) (5) (6) Cable Ordinance The economic impact upon private property within the franchise area; Public need for such franchise, if any; The capacity of public rights-of-way to accommodate the cable system; The present and future use of the public's rights-of-way to be used by the cable system; The potential disruption to existing users of the public's rights-of-way to be used by the cable system and the resulting inconvenience which may occur to the public; The legal, technical and financial ability of the franchise applicant to perform; -14- (7) Other societal interests as are generally considered in cable television franchising; and (8) Such other additional matters, both procedural and substantive, as the City may in its sole discretion determine to be relevant, including but not limited to the extent to which the proposal of the applicant will meet the anticipated cable related needs and interests of the community and serve the public interest. Evaluation by the City shall not be based on the content of the programming the applicant proposes to provide. (b) The City may grant a franchise for a period not to exceed 15 years. (c) The City may make the grant of a franchise conditioned upon the completion of construction within a reasonably prescribed time or upon the performance and fulfillment of specific terms, which are to be set forth in the franchise agreement specifying that failure to comply with the conditions will cause the franchise to become null and void without further action by the City. (d) Following at least ten days' notice to the applicant, the City shall hold a public hearing to consider an application or applications. The applicant(s) shall be notified of the hearing and shall be given an opportunity to be heard. Based upon the application(s), the testimony presented at the public hearing, any recommendations of the City Manager or staff, and any other information relevant to the application( s), the City shall decide by resolution whether to grant or deny a franchise application(s) and decide the terms and conditions of any franchise(s) granted. ( e) If the City grants a franchise the franchisee shall file an acceptance of the franchise accompanied by any and all bonds, certificates of insurance or other obligations as required in a franchise agreement within 45 calendar days from the date of the City resolution approving the franchise agreement. This period may be extended for good cause by the City. If acceptance is not filed with the City within 45 calendar days from the date of the City resolution, or if the period is not extended by the City, the franchise grant will be null and void without further action by the City. The City may, at its option, grant franchisee a short term extension(s). The grant of such a short term extension(s) will not confer on franchisee the right to an automatic acceptance, transfer, modification or renewal. (f) The grant, renewal, modification, or transfer of a franchise may be subject to a processing fee in an amount not to exceed the reasonable and justifiable out-of-pocket costs incurred by the City in considering the application, including but not limited to consulting, advertising and legal costs and fees, less the amount of the filing fee set pursuant to Section 7 up to an amount not to exceed $50,000.00. Within 30 calendar days from the date of the resolution approving or denying the franchise agreement by the City Commission, the City shall notify the franchisee ofthe amount of any processing fee and its method of calculation. If the processing fee is not paid to the City within 60 calendar days ofthe date ofthe City Commission resolution approving or denying the franchise Cable Ordinance -15- agreement, any approval granted by such resolution will be null and void. This processing fee is therefore intended to be a charge incidental to the awarding or enforcing of a franchise within the meaning of Section 622(g)(2)(D) of the Cable Act, 47 U.S.C. S542(g)(2)(D), and may not be deducted from the franchise fee imposed in a franchise agreement and shall not be passed through to subscribers. Sec. 9. Insurance: surety: indemnification. (a) A franchisee shall maintain, and by its acceptance ofthe franchise, specifically agrees that it will maintain, throughout the entire term of the franchise including any renewals thereof, the following liability insurance coverage insuring the franchisee and naming the City as an additional insured; worker's compensation and employer liability insurance to meet all requirements of State law and general comprehensive liability insurance with respect to the construction, operation and maintenance of the cable system, and the conduct of franchisee's business in the City, in the minimum amounts of: (1) $500,000.00 for property damage in anyone accident; (2) $500,000.00 for personal bodily injury to anyone person; and (3) $1,000,00000 for personal bodily injury in anyone accident. (b) All insurance policies shall be with sureties qualified to do business in the State; shall be with sureties with a minimum rating of A-I in Best's Key Rating Guide, Property/Casualty Edition. The City may require coverage and amounts in excess of the above minimum where necessary to reflect changing liability exposure and limits or where required by law. (c) A franchisee shall keep on file with the City certificates of insurance which certificates shall indicate evidence of payment of the required premiums and shall indicate that the City, its Commissioners, officers, boards, commission, commissioners, agents and employees are listed as additional insureds. In the event of a potential claim such that the City claims insurance coverage, franchisee shall immediately respond to all reasonable requests by the City for information with respect to the scope of the insurance coverage. (d) All insurance policies shall name the City, as additional insured and shall further provide that any cancellation or reduction in coverage shall not be effective unless thirty (30) days prior written notice thereof has been given to the City. A franchisee shall not cancel any required insurance policy without submission ofproofthat the franchisee has obtained alternative insurance satisfactory to the City which complies with this article. ( e) A franchisee shall, at its sole cost and expense, indemnify, hold harmless, and defend the City, its officials, boards, commissions, commissioners, agents and employees, against any and all claims, suits, causes of action, proceedings, judgments for damages or equitable relief, and costs and expenses arising out of the construction, maintenance or operation of its cable system, the conduct Cable Ordinance -16- of franchisee's business in the City, regardless of whether the act or omission complained of is authorized, allowed or prohibited by this article or a franchise agreement, provided, however, that franchisee's obligation hereunder shall not extend to any claims caused by the misconduct or sole gross negligence of the City, its officials, boards, commissions, commissioners, agents, or employees. This provision includes, but is not limited to, the City's reasonable attorney's fees incurred in defending against any such claim, suit or proceeding; and claims arising out of copyright infringements or a failure by the franchisee to secure consents from the owners, authorized distributors, or providers of programs to be delivered by the cable system, claims arising out of Section 638 of the Communications Act, 47 U.S.C. ~558, and claims against the franchisee for invasion of the right of privacy, defamation of any person, firm or corporation, or the violation or infringement of any copyright, trademark, trade name, service mark or patent, or of any right of any person, firm or corporation. Notwithstanding the foregoing, franchisee may select counsel to represent the City. The City agrees to notify franchisee, in writing, within ten (10) days of City receiving notice, of any issue it determines may require indemnification. Nothing in this section shall prohibit the City from participating in the defense of any litigation by its own counsel if in the City's reasonable belief there exists or may exist a conflict, potential conflict or appearance of a conflict. Sec. 10. Security fund/corporate1:uarantee. (a) A franchise agreement may provide that, prior to the franchise becoming effective, the franchisee shall post with the City a cash security deposit or in the alternative at the City's discretion a bond, letter of credit, or corporate guarantee in a form acceptable to the City to be used as a security fund to ensure the franchisee's faithful performance of and compliance with all provisions of this article, the franchise agreement, and other applicable law, and compliance with all orders, permits and directions of the City, and the payment by the franchisee of any claims, liens, fees, or taxes due the City which arise by reason of the construction, operation or maintenance of the system. The amount of the security fund or corporate guarantee shall be the amount that the City determines, under circumstances existing at the time, that is necessary to protect the public, to provide adequate incentive to the franchisee to comply with this article and the franchise agreement, and to enable the City to effectively enforce compliance therewith. The franchise agreement shall provide for the procedures to be followed with respect to the security fund or corporate guarantee. (b) Any bond or letter of credit shall be obtained at the sole expense of the franchisee and shall be renewed for the full term of the franchise plus an additional 12 months thereafter. The franchisee and its surety shall be jointly and severally liable under the terms of the bond or letter of credit for any damages or loss suffered by the City as a result of the franchisee's non performance, including the full amount of any compensation, indemnification or cost of removal of any property of the franchisee in the event of default, a reasonable allowance for attorneys' fees an costs, up to the full amount of the bond or letter of credit. The bond or letter of credit shall provide for 30 days' prior written notice to the City of any intention on the part of the franchisee to cancel, fail to renew, or otherwise materially alter its terms. Neither the filing of an indemnity bond or letter of credit with the City, nor the receipt of any damages recovered by the City thereunder, shall be construed to excuse faithful performance by the franchisee or limit the liability ofthe franchisee under the terms Cable Ordinance -17- of its franchise for damages, either to the full amount of the bond or otherwise. (c) The rights reserved to the City with respect to the security fund or an indemnity bond or letter of credit are in addition to all other rights of the City, whether reserved by this article or authorized by other law or the franchise agreement, and no action, proceeding or exercise of a right with respect to such security fund or indemnity bond or letter of credit will affect any other right the City may have. Sec. 11. Construction bond. (a) A franchise agreement may provide that, prior to any cable system construction, upgrade, rebuild or other significant work in the streets, a franchisee shall establish in the City's favor a construction bond in an amount specified in the franchise agreement or other authorization as necessary to ensure the franchisee's faithful performance of the construction, upgrade, rebuild or other work. (b) In the event a franchisee subject to such a construction bond fails to complete the cable system construction, upgrade or other work in the streets in a safe, timely and competent manner in accordance with the provisions of the franchise agreement, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the City as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the franchisee, or the cost of completing or repairing the system construction, upgrade or other work in the streets, plus a reasonable allowance for attorneys' fees, up to the full amount of the bond. The City may also recover against the bond any amount recoverable against the security fund pursuant to Section 10 hereof where such amount exceeds that available under the security fund. (c) The franchise agreement may specify that upon completion of the system construction, upgrade, rebuild or other work in the streets and payment of all construction obligations of the cable system to the satisfaction of the City, the City may eliminate the bond or reduce its amount However, the City may subsequently require an increase in the bond amount for any subsequent construction, upgrade, rebuild or other work in the streets. (d) The construction bond shall be issued by a surety having a minimum rating of A-I in Best's Key Rating Guide, Property/Casualty Edition; shall be subject to the approval of the City Attorney; and shall provide that; "This bond may not be canceled, or allowed to lapse, until 60 days after receipt by the City, by certified mail, return receipt requested, of a written notice from the issuer of the bond of intent to cancel or not to renew." (e) The rights reserved by the City with respect to any construction bond established pursuant to this Section are in addition to all other rights and remedies the City may have under this article, Cable Ordinance -18- a franchise agreement, or at law or equity. Sec. 12. Minimum facilities and services. (a) The following minimum requirements for facilities and services apply to all franchises granted by the City. The City may require in a franchise agreement that a franchisee exceed these minimum requirements where it determines, under circumstances existing at the time of the application, that the additional requirements are reasonable to meet the City's future cable related needs and interests or to serve the public interest. Notwithstanding anything to the contrary, a franchisee shall make available facilities, services, products, benefits, and a level of technology to all subscribers in the City no less than that offered by the franchisee, its parent, affiliate, or subsidiary to any community in the State. (1) (2) (3) (4) (5) (6) Cable Ordinance Any cable system that commences construction, including but not limited to initial construction, rebuild, upgrade or reconstruction after the effective date of this article shall have a minimum capacity of at least 750 MHZ providing no less than 78 video channels available for immediate use. A franchise agreement may provide for a larger minimum channel capacity requirement. The City may require in a franchise agreement that a franchisee provide access channels, facilities and other support for public, educational and/or governmental use. At the City's request, a franchisee shall provide cablecasting of City Commission meetings live to all subscribers located within the City. A cable system shall provide leased access channels as required by Federal law. A franchisee shall, upon request, provide at least one cable television service outlet and when technically feasible, at least one additional outlet equipped for on-line access to all City buildings and all public schools within its franchise area that are passed by its cable system at no cost to the City or schools involved, and shall charge no more than its time and material costs for any additional service outlets to such facilities. A franchise shall, upon request, provide all facilities, equipment, cabling, personnel and such other support as may be required to allow production of programming and live cablecasting from Government Center. Such support may be -19- allocated among all franchisees granted a franchise within 36 months ofthe effective date hereof on a pro-rata basis. (7) A franchisee shall design its system to allow the City or other appropriate government body, to interrupt cable service in an emergency to deliver necessary information to subscribers. (8) A franchisee shall make available to its subscribers equipment capable of decoding closed circuit captioning information for the hearing impaired. A franchisee may impose a reasonable charge for such equipment. (9) Standard installation shall consist of a drop, not exceeding 125 feet from the cable plant to the nearest part of a subscriber's residence. Residential drops in excess of 125 feet may be charged according to the franchisee's rate schedule. (b) Unless a franchise agreement provides otherwise, the City may require a franchisee to make cable service available to every dwelling and every building within the franchise service area or the franchisee's designated services area as defined in a franchise agreement unless prohibited by a private property owner from doing so. (c) Applications for an initial or renewed franchise shall include a proposal for the interconnection of franchisee's system to any or all other cable systems operating within the City. Sec. 13. Technical standards. (a) Any cable system within the City shall at minimum meet the technical standards of the FCC or other applicable Federal or State technical standards, including any such standards as hereinafter may be amended or adopted including but not limited to digital transmission, HDTV or other advanced technologies. All television signals transmitted on a cable system shall include any closed circuit captioning information for the hearing impaired. Antennas, supporting structures and outside plants used in the system shall be designed to comply with all generally accepted industry practices and standards and with all Federal, State, County and City laws, ordinances, rules and regulations. (b) All construction, installation and maintenance shall comply with the National Electrical Safety Code, the National Electric Code, the South Florida Building Code and all laws and accepted industry practices and as hereinafter may be amended or changed. (c) As required by FCC rules, the franchisee shall perform at its expense proof of performance tests designed to demonstrate compliance with FCC requirements. The franchisee shall provide, upon written request, the proof of performance test results to the City within 30 days after Cable Ordinance -20- completion. The City shall have the right to inspect the cable system facilities during and after their construction to ensure compliance with the requirements of the franchise agreement, this article and FCC standards. (d) The City may require any other tests as specified in a franchise agreement or applicable law or regulation, to be performed at the expense of the franchisee. The franchisee shall provide the test results to the City within 30 days of completion of the proof of performance or other tests. (e) The franchisee shall provide the City ten (10) days advance written notice when a proof of performance test required in subsections (c) and (d) above is scheduled so that the City may have an observer present. (f) A franchisee shall not design, install or operate its facilities in a manner that will interfere with the signals of any broadcast station, the facilities of any public utility, the cable system of another franchisee, or individual or master antennas used for receiving television or other broadcast signals. (g) In any franchise granted pursuant to this article, the City may require a franchisee to agree to maintain that level of technology to satisfy the state of the art as defined in Section 1 herein. (h) The franchisee shall provide access channels, equipment and facilities, and financial support in accordance with Sections 12, 13 and 14, as well as such other benefits and services as provided in a franchise agreement. Sec. 14. Public. education and eovernment support. (a) It is the purpose and intent of the City to require that all franchisees provide access channels, facilities, equipment and support sufficient to meet the community's needs and interests with respect to public, education and government activities. (b) A franchise~ shall provide, at the request of the City, cable television services including installation and basic service with ten (10) outlets to all municipal offices and schools within the City. (c) A franchisee shall provide, at the request of the City and as designated in the franchise agreement, access channels to be allocated to education and government use at the sole discretion of the City. (d) During the term ofa franchise, a franchisee shall provide at the request of the City and as designated in a franchise agreement, such equipment, facilities and technical support as the City Commission may determine is useful for the production and cablecasting of programming on the public, education and government channels. Applications for an initial or renewed franchise shall include a proposal to provide such support. Cable Ordinance -21- (e) At City's request, franchisee shall provide for live and repeat cablecasting of all City Commission meetings to all subscribers within the City. (f) At the request of the City and as designated in a franchise agreement, a franchisee shall provide the City with a dedicated I-NET, or such equivalent PEG support as may be designated in a franchise agreement for the exclusive use ofthe City. (g) A franchise may provide for a financial grant in lieu of or in addition to some or all ofthe facilities, equipment and services referenced in this Section 14. (h) A franchisee shall agree that the facilities, equipment, monetary grant, and all support to be provided by franchisee pursuant to this Section 14 constitute capital costs which are required by the franchise to be incurred by franchisee for public, educational, or government access facilities within the meaning of Section 622(g)(2)(C) of the Cable Act, 47 U.S.C. ~542(g)(2)(C); that such grant does not constitute a franchise fee or tax within the meaning of the Cable Act, State law, chapter ofthe City Code, or a franchise agreement and that the franchisee shall waive, and will not assert in any proceeding, any claim to the contrary. Sec. 15. Franchise fee. (a) A franchisee, as compensation for the privilege ofthe use ofthe City's streets to construct and/or operate a cable system, shall pay to the City a franchise fee in an amount up to a maximum of either (1) five (5%) percent ofthe franchisee's gross revenues derived directly or indirectly from the operation of its cable system within the City during the term of its franchise less only that amount due to Dade County; or (2) in the event the Communications Act or other applicable law is amended to permit the City to assess a franchise fee ofa greater amount than that specified in (1) above, the franchise agrees to pay to the City the new amount after a public hearing in which the public and franchisee are given an opportunity to comment on the impact of the higher fee. Moreover, franchisee shall conclude an agreement with respect to a fee increase with the City no later than it concludes an agreement with Dade County. (b) The franchisee's payment ofthe franchise fee to the City shall be reduced only by that amount the franchisee is expressly required to pay to Dade County pursuant to any applicable cable license, franchise or article of the County. (c) A franchisee shall pay the franchise fee due to the City on a quarterly basis. Payment for each quarter shall be made to the City not later than 45 calendar days after the end of each calendar quarter, provided, however, that payment for the fourth quarter (October, November, December) shall not be due until 75 days after the end ofthe quarter. (d) A franchisee shall file with the City, on a quarterly basis with the payment of the franchise fee, a financial statement setting forth the computation of gross revenues used to calculate the franchise fee for the preceding quarter and a detailed explanation ofthe method of computation. The statement shall be certified by a certified public accountant or the franchisee's chief financial Cable Ordinance -22- or other duly authorized officer. The franchisee will bear the cost ofthe preparation of such financial statements. (e) Subject to applicable law, no acceptance by the City of any franchise fee payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim the City may have for additional sums payable. (f) The franchise fee payment is not a payment in lieu of any other tax, fee or assessment. (g) The City may, from time to time, but not more frequently than once per year, and upon reasonable notice, inspect, copy and audit any and all books and records of the franchisee relevant to the determination of gross revenues and the computation of franchise fees due, and may recompute any amounts determined to be payable under the franchise. The cost of the audit will be borne by the franchisee if, as a result of the audit, the City determines that the franchisee has underpaid the franchise fees owed in an amount equal to or exceeding 3.5 percent (3.5%) of the franchise fees actually paid. A franchisee shall make all books and records necessary to satisfactorily perform the audit readily available to the auditors in Dade County, for inspection and copying or in the alternative, franchisee shall pay all costs necessary for the City to perform the audit at a location outside of Dade County. (h) In the event that a franchise fee payment is not received by the City on or before the due date set forth in subsection (b) above, or is underpaid, the franchisee will pay a late charge of 18 (18%) percent annually of the amount of the unpaid or underpaid franchise fee payment, provided however, that such rate does not exceed the maximum amount allowed under State law. Any interest and/or late charges paid by franchisee is intended to be a charge incidental to the enforcing of a franchise within the meaning of Section 622(g)(2)(D) of the Communications Act, 47 U.S.C. ~542(g)(2)(D), and may not be deducted from the franchise fee imposed by this article or any franchise agreement. (i) When a franchise terminates for whatever reason, the franchisee shall file with the City within 90 calendar days of the date its operations in the City cease, a financial statement, certified by a certified public accountant or the franchisee's chief financial officer, showing the gross revenues received by the franchisee since the end of the previous quarterly payment. Adjustments will be made at that time for franchise fees due to the date that the franchisee's operations ceased. Sec. 16. Customer service requirements. (a) Any person operating a cable system shall maintain all parts of its system in good condition and in accordance with standards generally observed by the cable television industry. Sufficient employees shall be retained to provide safe, adequate and prompt service for all of its customers and facilities. (b) The franchisee shall maintain at least one conveniently located business office and service Cable Ordinance -23- center within five miles from the City limits to which subscribers may telephone without incurring added message units or toll charges. This business office shall open at minimum from 8:00 a.m. to 6:00 p.m., Monday through Friday, and some weekend and evening hours. (c) The franchisee shall maintain a listed local, toll-free telephone number and employ a sufficient number of telephone lines, personnel and answering equipment or service to allow reasonable access by subscribers and members ofthe public to contact the franchisee on a full-time basis, 24 hours per day, seven days per week including holidays. Knowledgeable, qualified franchisee representatives will be available to respond to customer telephone inquiries, 24 hours per day, seven days per week, including holidays. (d) The franchisee shall answer all customer service and repair telephone calls mad under normal operating conditions within 30 seconds, including wait time and within an additional 30 seconds to transfer the call. Customers shall receive a busy signal less than three percent (3%) of the time. These standards shall be met no less than 90 percent (90%) of the time under normal operating conditions, measured on quarterly basis. ( e) A franchisee shall employ and maintain sufficient qualified personnel and equipment to be available (i) to accept payments; (ii) to exchange or accept converters or other equipment; (iii) to receive subscriber complaints or requests for service or repairs during normal business hours and some evening and weekend hours; (iv) to schedule service installations, undertake normal repairs, initiate action with respect to any subscriber service complaint within 24 hours; (v) to enable a service technician to respond to service calls 24 hours per day, seven days a week including holidays when more than five subscribers served from the same nearest active electronic device, such as an amplifier or node, call with the same complaint. Franchisee shall meet such standards 90% of the time. as measured on a quarterly basis. under normal operating conditions. (f) Installation and service: (1) Standard installation work shall be performed within seven (7) business days after an order has been placed except in those instances where a subscriber specifically requests an installation date beyond the seven business day period. "Standard" installations are up to 150 feet from the existing distribution system. If scheduled installation is neither started nor completed as scheduled, the subscriber will be telephoned by an employee of the franchisee the same day. Evening personnel shall also attempt to call subscribers attheir homes between the hours of 5 :30 and 8 :00 p.m. If the call to the subscriber is not answered, and employee of the franchisee shall telephone the subscriber the next day; (2) The franchisee will respond to service interruptions promptly and in no event later than 24 hours after the interruption becomes known. Other service problems will be responded to promptly and in no event later than 48 hours after the problem becomes known. All service interruptions and service problems within the control ofthe franchisee shall be corrected within Cable Ordinance -24- 72 hours after receipt of a complaint; (3) The appointment window alternatives made available for installations, service calls, repairs, and other installation activities will be either a specific time, a four-hour time block during normal business hours, or at the election and discretion of the subscriber, "all day"; (4) The franchisee may not cancel an appointment with a subscriber after the close of business on the business day prior to the scheduled appointment; and (5) If at any time an installer or technician is running late for a scheduled appointment, an attempt to contact the customer will be made and the appointment rescheduled as necessary at a time which is convenient for the customer. Individual subscribers who have experienced a missed installation or service appointments due to the fault of franchisee shall receive a credit of not less than $20.00. Such individual refund created to an individual subscriber shall not in any manner mitigate any fine that may be imposed by the City pursuant to Section 16(s) herein. (g) Disconnection. (1) Voluntary disconnection. a. [Fleserved] b. The franchisee shall promptly disconnect any subscriber who so requests from the franchisee's cable system. No period of notice prior to voluntary termination of service may be required of subscribers by any franchisee. c. A subscriber may be asked, but not required, to disconnect the franchisee's equipment and return it to the business office. d. Any security deposit and/or other funds due the subscriber shall be refunded on disconnected accounts after the converter has been recovered by the franchisee. The refund process shall take a maximum of 30 days from the date that the converter or other equipment was returned to franchisee or made available to franchisee for pickup to the date the customer receives the refund. (2) Involuntary disconnection. If a subscriber fails to pay a monthly subscriber or other fee or charge, the franchisee may disconnect the subscriber's service outlet; however, such disconnection shall not be effected until 35 days after the due date of the monthly subscriber fee or other charge, and ten (10) days advance written notice Cable Ordinance -25- of intent to disconnect to the subscriber in question. If the subscriber pays within 35 days of the due date and after notice of disconnection has been given, the franchisee shall not disconnect. After disconnection, upon payment by the subscriber in full of all proper fees or charges, including the payment of the re-connection charge, if any, the franchisee shall promptly reinstate service. (3) Nothing in this article shall be construed to prevent the franchisee from removing its property from a subscriber's premises upon the termination of service consistent with FCC rules and regulations and any other applicable law. At the subscriber's request, a franchisee shall remove all of its facilities and equipment from the subscriber's premises within 30 calendar days of the subscriber's request. Where removal is impractical, such as with buried cable or internal wiring, facilities and equipment may be disconnected and abandoned rather than removed, unless there is a written agreement stating otherwise, provided, however, that such agreement must be consistent with applicable law and FCC rules. (h) The franchisee shall intentionally interrupt service only for good cause and for the shortest time possible and where feasible shall provide 48 hours notice to the City Manager and to all subscribers. Notice to multiple dwelling units may be provided to the property manager in lieu ofto each individual unit owner. (i) The franchisee shall notify the City Manager if a service interruption affects 50 or more individual subscribers for a time period greater than four hours. (j) The franchisee shall cause all its field employees to wear a picture identification badge indicating their employment by franchisee. This badge shall be clearly visible to the public. (k) A franchisee shall develop written procedures for the investigation and resolution of all subscriber or City resident complaints, including, but not limited to, those regarding the quality of service and equipment malfunction, which procedures shall be subject to the review and approval by the City Manager. A subscriber or City resident who has not been satisfied by following the franchisee's procedures may file a written complaint with the City Manager, who will investigate the matter and, in consultation with the franchisee as appropriate, attempt to resolve the matter. A franchisee's good faith or lack thereof in attempting to resolve subscriber and resident complaints in a fair and equitable manner will be considered in connection with the franchisee's renewal application. The franchisee shall maintain a complete list of all complaints not resolved within seven (7) days of receipt and the measures taken to resolve them. This list shall be compiled in a form to be approved by the City Manager. It shall be compiled on a quarterly basis. The list for each calendar quarter shall be supplied to the City Manager no later than the 15th day following the last day of the preceding quarter. The franchisee shall also maintain a list of all written complaints received, which list will be available to the City. (1) To the extent reasonably required to monitor enforcement of this article or a franchise agreement, a franchisee shall permit the City designee to inspect and test the system's technical equipment and facilities upon reasonable notice to be less than 48 hours. Such inspection shall not Cable Ordinance -26- be performed between the hours of 12:00 midnight and 6:00 a.m., unless the City or its designee offers a specific reason for requiring an inspection during said hours. (m) The franchisee shall abide by the following requirements governing communications with customers, bills and refunds: (1) Each franchisee shall provide to subscribers written information in each of the following areas at the time of installation, at least once annually, and at any future time upon request by the subscriber: a. How to use the cable service; b. Installation and service policies; c. The products and services offered; d. Prices and service options; e. Channel positions of programming carried on the system; f. The franchisee's procedures for the receipt and resolution of customer complaints, the franchisee's address and telephone number to which complaints may be reported, and the hours of operation; g. The telephone number and address of the city's office and the County's office designated to handle cable television complaints and mqumes; h. The availability of a "lock-out" device; 1. The franchisee's information, collection, and disclosure policies for the protection of a subscriber's privacy. (2) In addition, each franchisee shall provide written notice either in its monthly billing or through two (2) advertisements no smaller than 1/4 page in the newspaper with the largest general circulation in the City, at the request of the City, of any City meeting regarding requests or applications by the franchisee for renewal, transfer or modification of its license or change in service, rates or charges to subscribers. If agreed by the City, notice may be provided over the cable system in certain instances. The City shall make such a request in writing, no less than 45 days prior to the mailing of any billing by franchisee or 15 days prior to the date that such advertising shall appear. Said notices shall be made at franchisee's expense and said expense shall not be considered part of the franchise fee assessed pursuant to this article and shall not be regarded as a franchise fee, as the term is defined in Section 622 of the Communications Act, 47 U.S.C. ~542. Cable Ordinance -27- (3) The franchisee's bills will be clear, concise and understandable. (4) Refund checks will be issued promptly, but no later than the earlier of30 days or the customer's next billing cycle following the resolution of a refund request, or the return of the equipment supplied by the franchisee if service is terminated. (5) Credits for service will be issued no later than the customer's next billing cycle following the determination that a credit is warranted. (6) A franchisee shall provide subscribers, the City Manager, and the City Commission with at least 30 days advance written notice of any changes in rates, charges, channel lineup, or initiations or discontinuations or changes of service or services offered over the cable system. (n) A franchisee shall provide a pro-rated 24-hour credit to the subscriber's account for any period of four hours or more within a 24-hour period during which a subscriber experienced an outage of service or substantial impairment of service, whether due to a system malfunction or other cause. (0) Billing: (1) The franchisee's first billing statement after a new installation or service change shall be pro-rated as appropriate and shall reflect any security deposit. (2) The franchisee's billing statement must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. (3) The franchisee's billing statement must show a specific due date not earlier than ten days after the date of the beginning of the service period. Any balance not received within ten (10) days after the due date may be assessed an administrative charge. The charge will appear on the following month's billing statement. a. Any administrative charge applied to unpaid bills shall be subject to regulation by the City consistent with applicable law. b. Subscribers shall not be charged an administrative fee, a late fee or otherwise penalized for any failure by the franchisee, its employees, or contractors, including failure to timely or correctly bill the subscriber, or failure to properly credit the subscriber for a payment timely made. (4) The franchisee must notify the subscriber that he or she can remit payment Cable Ordinance -28- in person at the franchisee's office or at such other locations within the City and inform the subscriber of the address of that office. (P) A franchisee may not substantially alter the service being provided to a subscriber (including by re-tiering, restructuring a tier or otherwise) without the express permission of such subscriber, unless it complies with this subsection. (1) If a franchisee wishes to alter the service being provided to a subscriber (including by re-tiering, restructuring a tier or otherwise) in such a way that the subscriber will no longer be able to obtain the same package of services, then the franchisee must provide the subscriber with 30 days notice of such alteration, explain the substance and the full effect of the alteration, and provide the subscriber the right within the 30-day period following notice, to opt to receive any combination of services offered by the franchisee. (2) Except as provided herein, no charge may be made for any service or product which the subscriber has not affirmatively indicated, in a manner separate and apart from payment of the regular monthly bill, that he or she wishes to receive. (q) Upon request, the franchisee shall certify in writing to the City on January 1 and July 1 of each year based upon internal due diligence by the franchisee that to the best of the franchisee's knowledge it is in substantial compliance with the standards set forth in this Section 16. At the request of the City, the franchisee shall submit such documentation, as may be required, to demonstrate the franchisee's compliance with this Section 16. This documentation shall be submitted within 45 days of the franchisee's receipt of the City's request. (r) Responsibility for the administration ofthis article and any franchise granted hereunder and for the resolution of all complaints against a franchisee regarding the quality of service, equipment malfunctions and related matters, including the authority to order refunds or fees, is hereby delegated to the City Manager, which is empowered, among other things, to settle, or compromise any controversy arising from operations of the franchisee, in accordance with the best interests ofthe public. In cases where requests for service have been ignored or in cases where the service provided is unsatisfactory for whatever reason, the City Manager shall have the power to require the franchisee to provide service if, in the opinion of the City Manager, such request for service is reasonable, provided, that any person aggrieved by a decision of the City Manager, including the franchisee, may appeal the matter to the City Commission for hearing and determination. The City Commission may accept, reject or modify the decision of the City Manager. No adjustment, settlement or compromise, whether instituted by the City Manager or by the City Commission shall be contrary to the provisions of this article or any franchise agreement issued pursuant to this article and neither the City Manager nor the City Commission in the adjustment, settlement or compromise of any controversy shall have the right or authority to add to, modify or delete any provision of this article or of the franchise. Cable Ordinance -29- Cable Ordinance (s) (1) In addition to the powers delegated in subsection (r) above, the City Manager shall have the authority to assess fines against a franchisee for any violation of this article or any franchise issued pursuant to this article, which fines will be paid to the City. (2) In assessing fines against a franchisee, the City Manager shall be governed by the Schedule set out below. Unless otherwise indicated, the fines listed are to be assessed on a per violation basis with each day of a continuing violation constituting a separate violation. a. b. c. d. e. f. g. h. 1. J. k. 1. Schedule of Fines Single Violation of: m. Subsection (a) hereof. Subsection (b) hereof. Subsection (c) hereof. Subsection (d) hereof. Subsection ( e) hereof. Subsection (f) hereof. Subsection (g) hereof. Subsection (h) hereof. [Reserved. ] Subsection (j) hereof. Subsection (k) hereof. Subsection (1) hereof. Subsection (m)(I)(a) - (i) hereof with bill cycle. n. o. p. q. Subsection (m)(2), hereof. Subsection (m)(3) - (m)(6) hereof. Subsection(n) hereof. Subsection (0) hereof. Subsection (P) hereof. Subsection (q) hereof. (3) (4) [Reserved. ] Maximum Fines $100.00 $100.00 $100.00 $1,0000.00 per quarter $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 per month billing $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 For the purpose of assessing and calculating refunds and fines for violations of this section with respect to multiple dwelling units, each individual unit shall be counted as a subscriber. However, any and all refunds with respect to services provided pursuant to a bulk agreement shall be remitted by the franchisee to the party to the bulk agreement, rather than to individual subscribers. Refunds due to subscribers for service purchased on an individual basis shall be remitted directly by the company to each individual subscriber. -30- (5) Prior to ordering a refund and/or assessing a fine, the City Manager shall mail the franchisee written notice by certified or registered mail of the proposed refund and/or fine, specifying the violation at tissue. The franchisee shall have 30 days from the date of receipt of the written notice to file a written response to the city Manger's notice. The franchisee's written response shall be signed by management level personnel of franchisee and all statements contained therein will be regarded as material representations to the City. (6) Prior to ordering a refund and/or assessing a fine, the City manager shall consider any justification or mitigating factor advanced in franchisee's written response, including but not limited to rebates or credits to the subscriber or a cure of the violation. The City Manager may, after consideration ofthe response of the franchisee, waive or reduce any proposed refund or fine. (7) Subsequent to the notice of proposed refund and/or fine to franchisee and consideration of the franchisee's response, if any, the City Manager may issue an assessment of refund or fine. The refund and/or fine shall be paid within 30 days of written notice to the franchisee. This refund and/or fine shall constitute liquidated damages to the subscriber and City for the violation and the City may enforce payment ofthe refund or fine in any court having jurisdiction. It is the intent of the City to determine fines/refunds as a reasonable estimate of the damages suffered by the City and/or its subscribers, whether actual or potential, and may include without limitation, increased costs of administration and other damages difficult to measure. (8) The franchisee may appeal any decision of the City Manager directly to the City Commission within 30 days of notice of the decision to the franchisee. (9) Any person who intentionally files a false complaint against a franchisee shall be subject to a fine in the amount of $50.00 for the first violation and $100.00 for each subsequent violation. (10) Intentional misrepresentation by a franchisee in any response to a notice of proposed refund and/or fine shall be grounds for revocation of the franchise. (t) In addition to complying with the customer service standards set forth in this article or in any franchise issued pursuant to this article, a franchisee shall comply with all customer service standards applicable to cable systems of the FCC and any other applicable federal, state or county law concerning customer service standards, consumer protection, and unfair or deceptive trade practices. (u) The City expressly reserves the right to consider violations of the customer service requirements by a franchisee in deciding whether to enter into a franchise agreement, grant a Cable Ordinance -31- franchise renewal, modification or consent to a transfer. Sec. 17. Subscriber privacy. A franchisee shall at all times protect the privacy of all subscribers to the full extent required by Section 631 of the Communications Act, 47 U.S.C. S551 and State law. Sec. 18. Discrimination prohibited. (a) A franchisee may in its rates or charges, or in the availability ofthe services or facilities of its system, or in any other respect, make or grant undue preferences or advantages to any subscriber, potential subscriber, or group of subscribers or potential subscribers, nor subject any such persons or group of persons to any undue prejudice or any disadvantage. A franchisee shall not deny, delay or otherwise burden service or discriminate against subscribers or users on the basis of age, race, creed, religion, color, sex, handicap, national origin, marital status or political affiliation, except for discounts for senior citizens, the economically disadvantaged or handicapped that are applied in a uniform and consistent manner. A franchisee may also offer bulk discounts to multiple dwelling buildings to the extent such discounts are otherwise permissible by law. (b) A franchisee shall not deny cable service to any potential subscriber because of the income ofthe residents of the area in which the subscriber resides. (c) A franchisee shall not refuse to employ, nor discharge from employment, nor discriminate against any person in compensation or in terms, conditions or privileges of employment because of age, race, creed, religion, color, sex, disability, national origin, marital status or political affiliation. The franchisee shall comply with Federal, state and local laws and regulations governing equal employment opportunities, as the same may from time to time be amended. Sec. 19. Use of streets. (a) Any pavements, sidewalks, curbing or other paved area taken up or any excavations made by a franchisee shall be done pursuant to permits issued for work by the proper officials of the City, and shall be done in such manner as to give the least inconvenience to the inhabitants ofthe City. A franchisee shall, at its own cost and expense and in a manner approved by the City, replace and restore any such pavements, sidewalks, curbing or other paved areas in as good a condition as before the work involving such disturbance was done, and shall also prepare, maintain and provide to the City Manager of his designee, full and complete plats, maps and records showing the exact locations of its physical facilities used in connection with the cable system located within the public streets, ways, and easements of the City. These maps shall be available in any form requested by the City Manager or his designee. (b) Except to the extent required by law, a franchisee shall, at its expense, protect, support, Cable Ordinance -32- temporarily disconnect, relocate, or remove, any of its property when required by the City by reason of traffic conditions, public safety, street construction, street resurfacing or widening, change of street grade, installation or sewers, drains, water pipes, power lines, signal lines, tracts, or any other type of municipal or public utility improvements; provided, however, that the franchisee shall, in all such cases, have the privilege of abandoning any property in place. (c) A franchisee shall, on the request of any person holding a building moving permit issued by the City, temporarily raise or lower its wires to permit the moving of buildings. The expense of such temporary removal or raising or lowering of wires shall be paid by the person requesting same, and the franchisee shall have the authority to require such payment in advance, except in the case where the requesting person is the City, in which case no such payment shall be required. The franchisee shall be given not less than five (5) calendar days advance notice to arrange for such temporary wire changes. (d) A franchisee shall upon notice to the City of not less than seven (7) days, have the authority to trim the trees or other natural growth upon and overhanging the streets so as to prevent the branches of such trees from coming in contact with the wires, cables and other equipment of the franchisee, except that, at the option of the City, such trimming may be done by it or under its supervision and direction at the expense of the franchisee. (e) A franchisee shall use, with the owner's permission, existing underground conduits (if applicable) or overhead utility facilities whenever feasible. Copies of agreements between a franchisee and third party for use of conduits or other facilities shall be filed with the City provided that the franchisee shall have the right to redact proprietary and confidential information in such agreements as it pertains to financial arrangements between the parties. (f) All wires, cable lines and other transmission lines, equipment and structures shall be installed and located to cause minimum interference with the rights and convenience of property owners. The City may issue such rules and regulations concerning the installation and maintenance of a cable system installed in, on, or over the streets, as may be consistent with this article and the franchise agreement. (g) All safety practices required by law shall be used during construction, maintenance and repair of a cable system. A franchisee shall not place facilities, equipment or fixtures where they will interfere with any gas, electric, telephone, water, sewer or other utility facilities, or obstruct or hinder in any manner the various utilities serving the residents of the City of their use of any street or any other public right-of-way. (h) A franchisee shall, at all times: (1) Install and maintain its wires, cables, fixtures and other equipment in accordance with the requirements ofthe City's Building Code and Electrical Safety Ordinances and any other applicable Building or Electrical Safety Code, and in such manner that they will not interfere with any installations of the City. Cable Ordinance -33- (2) Keep and maintain in a safe, suitable, substantial condition, and in good order and repair, all structures, lines, equipment and connections in, over, under, and upon the streets, sidewalks, alleys, and public ways or places of the City, wherever situated or located. (i) On streets where electrical or telephone utility wiring is located underground, franchisee's cable shall also be located underground at the franchisee's expense. Between a street and a subscriber's residence, a franchisee's cable must be located underground if both electrical and telephone utility wiring are located underground. The City shall encourage, to the extent feasible, that the public utility and franchisee cooperate in opening up trenches and making such trenches and making such trenches available to all parties with the understanding that the costs of opening and refilling of such trenches would be shared equally by all users of such trenches. The franchisee shall at all times comply with the requirements of the Trench Safety Act. (j) In the event the use of any part of a cable system is discontinued for any reason for a continuous period of six months, or in the event such system or property has been installed in any street without complying with the requirements of this article or a franchisee agreement, or the franchise has been terminated, canceled or expired, the franchisee, within 30 days after written notice by the City, shall commence removal from the streets of all such property as the City may require. (k) The City may extend the time for the removal of franchisee equipment and facilities for a period not to exceed 180 days and thereafter such equipment and facilities may be deemed abandoned. (1) In the event of such removal or abandonment, the franchisee shall restore the area to as good a condition as prior to such removal or abandonment. Sec. 20. Renewal of franchise. Renewal shall be conducted in a manner consistent with Section 626 ofthe Communications Act, 47 U.S.C. S546. To the extent such additional requirements are consistent with applicable law, the following requirements shall apply: (1) Upon completion of the review and evaluation process set forth in Section 626(a)(1)(2) ofthe Communications Act, 47 U.S.C.S546, should that process be invoked, the City shall notify the franchisee, by certified or registered mail that it may file a renewal application including a renewal proposal. The notice shall specify the information to be included in the renewal application and the deadline for filing the application, which shall be no earlier than 30 calendar days following the date of the notice. a. The application shall comply with the requirements of Section 7 hereof and provide the specific information requested in the notice. Cable Ordinance -34- Cable Ordinance If the franchisee dos not submit a renewal application by the date specified in the City's notice to the franchisee given pursuant to this subsection, the franchisee will be deemed not to be seeking renewal of its franchise. b. Upon receipt ofthe renewal application, the City shall publish notice of its receipt and make copies available to the public. The City, following prior public notice, may hold one or more public hearings on the renewal application. (2) In the event a public hearing on the renewal application is held, or in the event that the City Commission considers the renewal application without a public hearing, the City Commission will either; (3) a. Pass a resolution agreeing to renew the franchise, subject to the negotiation of a franchise agreement satisfactory to the City and the franchisee; or b. Pass a resolution that makes a preliminary assessment that the franchise should not be renewed. If a preliminary assessment is made that a franchise should not be renewed, at the request of the franchisee or on its own initiative, the City will commence proceeding in accordance with Section 626( c) of the Communications Act, 47 U.S.C. S546(c) to address the issues set forth in Section 626(c)(I)(A) - (D) of the Communications Act, 47 U.S.C. S546(c)(I)(A) - (D). Any denial of a proposal for renewal that has been submitted in compliance with subsection (b) of S546 shall be based on one or more adverse findings made with respect to the factors described in S546(c)(1)(A) - (D), pursuant to the record of proceedings under S546(c). The City shall not base a denial of renewal on a failure to substantially comply with the material terms of the franchise under S 546(c)(I)(A) or on events considered under S 546(c)(1)(B) unless the City has provided the franchisee with notice and opportunity to cure, in any case in which it is documented that the City has waived its right to object, or the franchisee gives written notice of a failure or inability to cure and the City fails to object within a reasonable time after receipt of such notice. (4) Any request to initiate a renewal process or proposal for renewal not submitted within the time period set forth in Section 626(a) of the Communications Act, 47 U.S.c. S 546(a), shall be deemed an informal proposal forrenewal and shall be governed in accordance with Section 626(h) of the Communications Act, 47 U.S.c. S 546(h). The City may hold one or more public hearings or implement other procedures under which comments from the public on an informal proposal for renewal may be received. -35- Following such public hearings or other procedures, the City Commission shall determine whether the franchise should be renewed and the terms and conditions of any renewal. (5) If the City Commission grants a renewal application, the City and the franchisee shall agree on the terms of a franchise agreement, pursuant to the procedures specified in subsections 7(e)-(h) of this article, before such renewal becomes effective. (6) If renewal of a franchise is lawfully denied, the City may acquire ownership ofthe cable system or effect a transfer of ownership of the system to another person upon approval of the City Commission. Any such acquisition or transfer shall be at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself. The City may not acquire ownership of the system while an appeal of a denial for renewal is pending in any court pursuant to S 546( e). Sec. 21. (7) If renewal of a franchise is lawfully denied and no appeal to a court is pending, and the City does not purchase the cable system or approve or effect a transfer of the cable system to another person, the City may require the former franchisee to remove its facilities and equipment at the former franchisee's expense. If the former franchisee fails to do so within a reasonable period oftime, the City may have the removal done at the former franchisee's and/or surety's expense. Transfer/sale/assi&nment. (a) No transfer of a franchise shall occur without prior approval of the City. (b) An application for a transfer of a franchise shall meet the requirements of Section 7 hereof, and provide complete information on the proposed transaction, including details on the legal, financial, technical and other qualifications of the transferee, and on the potential impact of the transfer on subscriber rates and service. Except in the case of pro forma transfer, the application shall provide, at a minimum, the information required in subsections 7(f)(1) - (f)(5) and (f)(14) with respect to the proposed transferee. The information required in subsections 7 (f)( 6) - (f)( 13) shall also be provided whenever the proposed transferee expects material changes to occur in those areas. (c) An application for approval of a pro forma transfer of a franchise shall be considered granted on the 61 st calendar day following the filing of such application with the City unless, prior to that date, the City notifies the franchisee to the contrary. An application for approval of a pro forma transfer of a franchise shall clearly identify the application as such, describe the proposed transaction, and explain why the applicant believes the transfer is pro forma. Unless otherwise requested by the City within 30 calendar days of the filing of an application for a pro forma transfer, the applicant shall be required only to provide the information required in subsections 7(f)(1), (3) and (14) with respect to the proposed transferee. Cable Ordinance -36- (d) In making a determination on whether to grant an application for a transfer of a franchise, the City Commission shall consider the legal, financial, technical and other qualifications of the transferee to operate the system; whether the incumbent cable operator is in substantial compliance with the material terms of its franchise agreement and this article and, if not, the proposed transferee's commitment to cure such noncompliance; and whether operation by the transferee would adversely affect cable services to subscribers, or otherwise be contrary to the public interest. (e) No application for a transfer of a franchise shall be granted unless the transferee agrees in writing that it will abide by and accept all terms of this article and the franchise agreement, and that it will assume the obligations and liabilities of the previous franchisee under this article and the franchise agreement. (f) Approval by the City of a transfer of a franchise does not constitute a waiver or release of any of the rights of the City under this article or the franchise agreement, whether arising before or after the date ofthe transfer. Sec. 22. Revocation or termination of franchise. (a) A franchise may be revoked by the City Commission for a franchisee's failure to construct, operate or maintain the cable system as required by this article or the franchise agreement, or for any other material violation of this article or material breach of the franchise agreement. To invoke the provisions of this subsection (a), the City shall give the franchisee written notice, by certified mail at the last known address, that franchisee is in material violation of this article or in material breach of the franchise agreement and describing the nature of the alleged violation or breach with specificity. Ifwithin 30 calendar days following receipt of such written notice from the City to the franchisee, the franchisee has not cured such violation or breach, or has not commenced corrective action and such corrective action is not being actively and expeditiously pursued, the City may give written notice to the franchisee of its intent to revoke the franchise, stating its reasons. (b) Prior to revoking a franchise under subsection (a) hereof, the City Commission shall hold a public hearing, upon 30 calendar days notice, at which time the franchisee and the public shall be given an opportunity to be heard. Following the public hearing, the City Commission may determine whether to revoke the franchise based on the evidence presented at the hearing and other evidence of record. Ifthe City Commission determines to revoke a franchise, it shall issue a written decision setting forth the reasons for its decision. A copy of such decision shall be transmitted to the franchisee. (c) Notwithstanding subsections (a) and (b) hereof, any franchise may, at the option ofthe City following a public hearing before the City Commission, be revoked 120 calendar days after an assignment for the benefit of creditors or the appointment of a receiver or trustee to take over the business of the franchisee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding, unless within that 120-day period: (1) Such assignment, receivership or trusteeship has been vacated; or Cable Ordinance -37- (2) Such assignee, receiver or trustee has fully complied with the terms and conditions of this article and the franchise agreement and has executed an agreement, approved by a court having jurisdiction, assuming and agreeing to be bound by the terms and conditions of this article and the franchise agreement. (d) In the event of foreclosure or other judicial sale of any of the facilities, equipment or property of a franchisee, the City may revoke the franchise, following a public hearing before the City Commission, by serving notice upon the franchise and the successful bidder at the sale, in which event the franchise and all rights and privileges of the franchise will be revoked and will terminate 30 calendar days after serving such notice, unless: (1) The City has approved the transfer of the franchise to the successful bidder; and (2) The successful bidder has covenanted and agreed with the City to assume and be bound by the terms and conditions of the franchise agreement and this article. (e) If the City revokes a franchise, or if for any other reason a franchisee abandons, terminates or fails to operate or maintain service to its subscribers for a period of six (6) months, the following procedures and rights are effective: (1) The City may require the former franchisee to remove its facilities and equipment at the former franchisee's expense. If the former franchisee fails to do so within a reasonable period of time, the City may have the removal done at the former franchisee's and/or surety's expense. (2) The City, by resolution of the City Commission, may acquire ownership, or effect a transfer, of the cable system at an equitable price. (3) If a cable system is abandoned by a franchisee, the City may sell, assign or transfer all or part of the assets of the system. (f) Where the City has issued a franchise specifically conditioned in the franchise agreement upon the completion of construction, system upgrade or other specific obligation by a specified date, failure of the franchisee to complete such construction or upgrade, will result in the automatic forfeiture of the franchise without further action by the City where it is so provided in the franchise agreement, unless the City, at its discretion and for good cause demonstrated by the franchisee, grants an extension of time. (g) No franchisee will construct or activate a system upgrade in any community served by the same system prior to activating the upgrade for all subscribers within the City, without prior authorization from the City. Cable Ordinance -38- (h) Except as provided in subsection (f), no adverse action against a franchisee may be taken by the City pursuant to this section except after a noticed public hearing at which the franchisee is given an opportunity to participate. Sec. 23. Continuity of service mandatory. (a) It is the right of all subscribers to receive all available services requested from the franchisee as long as their financial and other obligations to the franchisee are satisfied. (b) In the event of a termination or transfer of a franchise for whatever reason, the franchisee shall ensure that all subscribers receive continuous, uninterrupted service regardless of the circumstances. The franchisee shall cooperate with the City to operate the system for a temporary period following termination or transfer as necessary to maintain continuity of service to all subscribers. The temporary period will not exceed six (6) months without the franchisee's written consent. During such period the cable system shall be operated under such terms and conditions as the City and the franchisee may agree, or such other terms and conditions that will continue, to the extent possible, the same level of service to subscribers and that will provide reasonable compensation to the cable operator. (c) In the event a franchisee fails to operate the system for seven (7) consecutive days without prior approval of the City or without just cause, the City may, at its option, operate the system or designate an operator until such time as the franchisee restores service under conditions acceptable to the City or until a permanent operator is selected. Ifthe City is required to fulfill this obligation for the franchisee, the franchisee shall reimburse the City for all costs or damages resulting from the franchisee's failure to perform that are in excess of the revenues from the system received by the City. Additionally, the franchisee will cooperate with the City to allow City employees and/or City agents free access to the franchisee's facilities and premises for purposes of continuing system operation. Sec. 24. Rates. (a) Nothing in this article shall prohibit the City from regulating rates for cable services to the full extent permitted by law. (b) Any rate or charge established for cable television service, equipment, repair and installation shall be reasonable to the public. Upon written request from the City or its agent, franchisee shall provide all requested data, records and documentation to show the reasonableness of the rates or to comply with FCC guidelines. Where such information is designated proprietary and confidential, it shall not be copied or removed or otherwise subject to public inspection, to the extent the City is permitted to protect information from public inspection under applicable law. Sec. 25. Performance evaluation. Cable Ordinance -39- The City will conduct periodic performance evaluations of a franchisee as the City determines is necessary. A franchisee shall cooperate with these evaluations reasonably and in good faith. If the City implements a survey of cable subscribers in connection with a performance evaluation, the City may require a franchisee to distribute the City's questionnaire to its subscribers at the City's expense. Upon request and upon reimbursement of the City's copying costs, the franchisee may receive copies of all responses. Sec. 26. Administration. (a) The City Manager, either directly or through a duly appointed designee, shall have the responsibility for overseeing the day-to-day administration of this article and franchise agreements. The City Manager shall be empowered to take all administrative actions on behalf of the City, except for those actions specified in this article that are reserved to the City Commission. The City Manager may recommend that the City Commission take certain actions with respect to the franchise The City Manager shall keep the City Commission apprised of developments in cable and provide the City Commission with assistance, advice and recommendations as appropriate. (b) Subject to Federal and State law, the City Commission shall have the sole authority to regulate rates for cable services, grant franchises, authorize the entering into of franchise agreements, modify franchise agreements, renew or deny renewal of franchise, revoke franchise and authorize the transfer of a franchise. Sec. 27. Force majeure. In the event a franchisee's performance of or compliance with any of the provisions of this article or the franchisee's franchise agreement is prevented by a cause or event not within the franchisee's control, such inability to perform or comply shall be deemed excused and no penalties or sanctions shall be imposed as a result thereof, provided, however, that franchisee uses all practicable means to expeditiously cure or correct any such inability to perform or comply. For purposes ofthis article and any franchisee agreement granted or renewed hereunder, causes or events not within a franchisee's control shall include, without limitation, acts of God, floods, earthquakes, landslides, hurricanes, fires and other natural disasters, acts of public enemies, riots or civil disturbances, sabotage, strikes and restraints imposed by order of a governmental agency or court. Causes or events within franchisee's control, and thus not falling within this section shall include, without limitation, franchisee's financial inability to perform or comply, economic hardship and misfeasance, malfeasance or nonfeasance by any of franchisee's directors, officers, employees, contractors or agents. Sec. 28. Applicability. (a) This article shall be applicable to all cable systems now existing in the City on the date hereof and to all applicants for cable franchises, to the full extent permitted by Federal and state law. Cable Ordinance -40- (b) Any person shall notify the City in writing within 30 calendar days of the passage ofthis article, or any subsequent amendment thereof, of: (1) Any provision which it believes should not be applicable to it. (2) The reason for each such claim of non-applicability. (c) Failure to notify the City as provided in subsection (b) of this section shall constitute a waiver of any right to object. Sec. 29. Municipal cable system ownership authorized. (a) To the full extent permitted by law, the City may acquire, construct, own and/or operate a cable system. (b) Nothing in this article shall be construed to limit in any way the ability or authority of the City to acquire, construct, own and/or operate a cable system to the full extent permitted by law. Sec. 30. Violations of article. (a) Whenever the City finds that a person has allegedly violated any provision of this article, not otherwise described in Section 16 herein, such person shall have 30 days subsequent to receipt of notice to correct the violation. If after 30 days, the recipient has failed to correct the alleged violation, or commence curing to a substantial extent and to the satisfaction of the City, the City shall determine if the person has committed a violation and shall make written findings of fact. If a violation is found, the person shall pay to the City $500.00 per day, or any part thereof for each day each violation occurs or continues. The City reserves the right to withdraw said payments from the security fund upon three (3) days' written notice to the franchisee. It is the intent of the City to impose the above discussed fines as a reasonable estimate ofthe damages suffered by the City and/or its subscribers, whether actual or potential, and may include without limitation, increased costs of administration and other damages difficult to measure. (b) The City hereby reserves any and all rights to require that a person remove its equipment and facilities from the City's public rights-of-way where the City has determined and issued a written decision finding that the damages suffered by the City or its residents cannot be remedied by any reasonable means other than by termination or revocation of a person's rights to use the City's rights-of-way. Sec. 31. Enforcement remedies. (a) In addition to any other remedies available at law or equity or provided herein under Section 16, the City may apply anyone or combination of the following remedies in the event a Cable Ordinance -41- franchisee violates this article, its franchise agreement, applicable Federal or State law, or applicable local law or order: (1) Impose liquidated damages in such amount, whether on a per-diem, per- incident, or other measure of violation, as provided in the franchise agreement. Payment ofliquidated damages by the franchisee will not relieve the franchisee of its obligation to comply with the franchise agreement and requirements of this article. (2) Revoke the franchise pursuant to the procedures specified in Section 22 hereof. (3) In addition to, or instead of any other remedy, the City may seek legal or equitable relief from any court of competent jurisdiction. (b) In determining which remedy or remedies are appropriate, the City shall take into consideration the nature ofthe violation, the person or persons bearing the impact of the violation, the nature ofthe remedy required in order to prevent further violations and such other matters as the City determines are appropriate to the public interest. (c) Failure of the City to enforce requirements of a franchise agreement or this article shall not constitute a waiver of the City's right to enforce that violation or subsequent violations ofthe same type or to seek appropriate enforcement remedies. (d) In any proceeding wherein there exists an issue with respect to a franchisee's performance of its obligations pursuant to this article, the franchisee has, throughout any such proceedings and appeals thereof, the burden of proving that said franchisee is in compliance with the terms of the article. The City Commission may find a franchisee that does not demonstrate compliance with the terms and conditions of this article in default an apply anyone or combination of the remedies otherwise authorized by this article. Sec. 32. Reservation of rif!hts. (a) The City reserves the right to amend this article as it shall find necessary in the lawful exercise of its police powers. (b) Any additional regulations adopted by the City shall be incorporated into this article and complied with by all franchisees within 30 days of the date of adoption of such additional regulations. (c) The City reserves the right to exercise the power of eminent domain to acquire the property of the franchisee's cable system, consistent with applicable Federal and State law. Notwithstanding anything to the contrary, this section shall not enlarge or restrict the City's exercise of eminent domain except to the extent provided by applicable law. Cable Ordinance -42- (d) The City shall at all times have the right, upon reasonable notice and during normal business hours, to examine and copy a franchisee's records and to inspect a franchisee's facilities to the extent needed to monitor a franchisee's compliance with and performance under this article and the franchisee's franchise agreement. Sec. 33. Repeal of conOictine ordinances. Section 8AA of the Code of Miami-Dade County as adopted by Section 8.3 of the City Charter as its own ordinance on the same subject, and all parts or ordinances and all resolutions or parts of resolutions in conflict herewith, be and the same are hereby repealed to the extent of such conflict. Sec. 34. Severability. If any section, subsection, clause or provision of this Ordinance is declared invalid or unconstitutional by a court of competent jurisdiction, the remainder shall not be affected by such invalidity. Sec. 34. Effective date. This Ordinance shall become effective ten days after adoption. PASSED AND ADOPTED on first reading this 11 th day of March, 1999. PASSED AND ADOPTED on second reading this J~ ,1999. ATTEST: ~~~U\~~ , , 'chard Bro~-Morilla, City Clerk Cable Ordinance -43- APPROVED AS TO FORM AND LEGAL SUFFICIENCY: ~ JU{)r ~ L . DannheIsser, CIty Attorney Vote: 5-0 Mayor David Samson Vice Mayor Irving Turetsky Commissioner Lila Kauffman Commissioner Daniel Iglesias Commissioner Connie Morrow Cable Ordinance Moved by: Seconded by: (yes) ~ (yes) _ (yes) -;:7 (yes) ~ (yes) &/' -44- ~~~ c::==: " (no)_ (no)_ (no )_ (no)_ (no)_