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HomeMy WebLinkAboutOrdinance No. 1077 ORDINANCE NO. 1077 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA ADDING TITLE 14 TO THE AZUSA MUNICIPAL CODE PROVIDING FOR THE GRANTING OF FRANCHISES FOR CABLE TELEVISION SYSTEMS WITHIN THE CITY. The City Council of the City of Azusa does ordain as follows : SECTION 1 . Title 14 is hereby added to the Azusa Municipal Code to read as follows : "TITLE 14 - CABLE TELEVISION FRANCHISES Chapter 14.01. General Provisions. 14.01.01. DEFINITIONS. For the purpose of this Title, the following terms, phrases, words, abbreviations, and their derivations shall have the meaning given in this Chapter. (a ) "Franchise" means and includes any authorization granted under this Title in terms of a franchise, privilege, permit, license or otherwise to construct, operate and maintain a CATV system in the City. (b) "Grantee" means the person to whom a franchise is granted by the Council to construct, operate or maintain a CATV system as hereafter defined, and the lawful successor, transferee or assignee of said person. (c ) "Street' shall mean the surface of and the space above and below any part of the entire width of right of way of a public street or alley, offered for dedication to City whether or not such entire area is actually used or improved for street purposes, now or hereafter existing as such within the City, or any public utility easement. (d ) "Property of grantee" means all property owned, installed or used by a grantee in the conduct of a CATV business in the City under the authority of a franchise . (e) "Subscriber or "User" means any person receiving for any purpose any service of the Grantee ' s cable television system including, but not limited to, the conventional cable television system service of retransmission of television broad- cast, radio signals, grantee 's original cable-casting, and the local government, education and public access channels; and other services, such as leasing of channels, data and facsimile trans- mission, pay television, and police, fire and other service comm- unications to individuals, companies, government agencies, and organizations of all types . (f ) "Cable Television System" (CATV) means any facility including any system of antennae, micro-wave, wires, wave-guides, coaxial cables or other conductors and equipment designed, constructed or used for the purpose of collecting and amplifying local and distant broadcast television or radio signals, and transmitting and receiving all other digital, voice and audio-visual signals . (g) "Gross Annual Basic Subscriber Receipts" shall mean any and all compensation and other consideration received directly by the grantee from subscribers in payment for connection of their television sets or other equipment to the cable system operated by Grantee . Chapter 14.02. Franchises . 14.02.01. FRANCHISE TO INSTALL AND OPERATE. (a ) A franchise to install, construct, operate, and maintain a cable television system on streets within all or a specific portion of the City may be granted by the Council to any person who offers to furnish and provide such system under and pursuant to the terms and provisions of this Title. Each franchise for a CATV system shall be subject to the provisions of this Title, exclusively. Nothing in this Title shall be deemed to require the granting of a franchise when in the opinion of the Council it is contrary to the public interest to do so. (b) If the grantee of any franchise uses in his cable television system distribution channels furnished to the grantee by a telephone company pursuant to tariff or contract on file with a regulatory body having jurisdiction and said grantee makes no use of the streets independent of such telephone company-furnished facilities, said grantee shall be required to comply with all of the provisions hereof as a "Licensee" and in such event whenever the term "Grantee" is used herein it shall be deemed to mean and include "Licensee" . 14.02.02. USES PERMITTED BY FRANCHISE. (a ) A CATV Franchise shall authorize and permit the grantee to engage in the business of operating and providing a CATV system in the City, and for the purpose, to erect, install, construct, repair, replace, reconstruct, maintain and retain in, on, over, under, upon, across and along any public street, such poles, wires, cable conductors, ducts, conduit, vaults, manholes, amplifiers, appliances, attachments, and other property as may be necessary and appurtenant to the CATV system; and in addition, so to use, operate, and provide similar facilities or properties rented or leased from other persons, firms or corporations, including but not limited to any public utility or other grantee franchised or permitted to do business in the City; subject, however, to all of the other terms, conditions, and provisions of this Title and any additional conditions or provisions of any Ordinance which grants a franchise in accord herewith. (b) The grantee may make a charge to subscribers for installation or connection to its CATV system and a fixed monthly charge as filed and approved as herein provided. No increase in the rates and charges to subscribers, as set forth in the schedule filed and approved with grantee ' s application, may be made without the prior approval of the Council expressed by resolution. -2- 14.02.03. GENERAL FRANCHISE PROVISIONS. Any CATV franchise shall be subject to such reasonable conditions as may be imposed in the granting of the same, and in addition shall be automatically subject to the following conditions which shall also be obligations of the grantee : (a ) The grantee shall comply with all encroachment permit, zoning, building, and other laws and ordinances of the City, and the City Code . Such variances as may be reasonably required by the unique nature of the cable TV system may be applied for by the grantee. (b) The grantee shall obtain such licenses and certi- ficates as required, and at all times during the term of any franchise keep such licenses in full force and effect, from the Federal Communications Commission, and shall comply with all present and future laws, regulations, rules and orders of the Federal Communications Commission, as presently existing or here- after enacted, promulgated or adopted, and shall also comply with any and all other laws, whether local, state or national, as presently existing or as hereafter enacted, regulating or governing any of the activities of the grantee . (c ) The grantee shall at all times during the term of any franchise, at its own cost and expense, properly and in good, workmanlike manner, install and maintain adequate shielding, filtering and grounding at affected installations within the CATV system to eliminate television interference encountered from fundamental frequency overload by radio amateur transmissions which are in compliance with Federal Communications Commission regulations. Chapter 14.03. Service Requirements . 14.03.01. BASIC SERVICE. The cable television system permitted to be installed and operated hereunder shall : (1) be operationally capable of relaying to subscriber terminals those television and radio broadcast signals for the carriage of which the grantee is now or hereafter authorized by the Federal Communications Commission; (2) be constructed with the potential of two- way signal transmission; (3) distribute color television signals which it receives in color; (4) provide at least one (1) channel, without charge, for exclusive use of the City; (5) provide at least one (1) channel each for those educational and public access uses as now or hereafter required by the Federal Communications Commission. 14.03.02. NON-BASIC SERVICES . The cable television system permitted to be installed and operated hereunder, may also engage in the business of : (1) transmitting original cablecast programming not received through television broadcast signals; -3- (2) transmitting and receiving all other signals : digital, voice and audio-visual. 14.03.03. SUBSCRIBER COMPLAINTS. In addition to other service regulations adopted by the Council, and excepting circum- stances beyond grantee 's control, such as Acts of God, riots and civil disturbances, and in providing the foregoing services, the grantee shall : (1) limit system failures to minimum time dura- tion by locating and correcting malfunction- ing promptly; (2) upon complaint by a subscriber, make a demonstration satisfactory to the chief administrative officer that a signal is being delivered which is of sufficient strength and quality to meet the standards set forth in the regulations of the Federal Communications Commission; (3) render efficeint service, making repairs promptly and interrupting service only for good cause and for the shortest time possible . Planned interruptions, insofar as possible, shall occur during periods of minimum use of the system; (4 ) maintain an office in the City, or a contiguous city, which office shall be open during all the usual business hours, with its telephone listed in directories of the telephone company serving the City, and be so operated that complaints and requests for repairs or adjustment may be received at any time, day or night, seven days a week. 14.03.04. MUNICIPAL SERVICE. (1) With respect to the local government channel, the grantee shall provide, at the request of the City Administrator, and upon City reim- bursement of grantee 's actual cost, use of grantee ' s studio, equipment and technical services for production of live and video- tape municipal programs, subject to scheduling requirements of the grantee; (2) With respect to the basic television services, the grantee shall provide all subscriber services, and a tie-in connection without cost, when the system passes such facilities and as designated by the Council, to (i ) public schools within the City, and (ii ) buildings owned and controlled by the City, used for public purposed and not for residential use. -4- 14.03.05. COMPATIBILITY AND CONNECTIBILITY. (1) Any cable television system franchised hereunder shall, insofar as financially and technically possible, be compatible with systems adjacent to the City; (2) Whereever it is financially and technically feasible, the grantee shall so construct, operate and modify the system so as to tie the same into all other systems adjacent to the City. Chapter 14.04. Duration of Franchise. 14.04.01. TERM. No franchise shall be for a term of longer than 20 years from the date of acceptance of such franchise by the grantee or the renewal thereof. 14.04.02. TERMINATION. Any franchise granted hereunder may be terminated by the Council prior to its date of expiration after a public hearing, held after sixty (60) days notice to the grantee of any such proposed terminationjif the Council finds : (1) The grantee has failed to comply with any condi- tion, limitation, obligation, or provision of this Title, or has, by act or omission, violated any term, condition or provision of the franchise, permit, or license issued hereunder and has failed after sixty (60) days written notice to completely obviate such default. Chapter 14.05. Franchise Payments . 14.05.01. PERCENTAGE. Any grantee granted a franchise shall pay to the City, during the term of such franchise, a sum equal to three percent (30) of the Gross Annual Basic Subscriber Receipts of the grantee, or such greater percentage as may at any time be required by the rules and regulations of the Federal Communications Commission. Such payment shall be made by the grantee as provided in the grantee ' s franchise, and such payment by the grantee to the City shall be in lieu of any tax, or fee measured by the gross receipts of grantee . 14.05.02. FINANCIAL STATEMENT. The grantee shall file ;°with the City, within sixty (60) days after the expiration of any calendar year during which such franchise is in force, a financial statement prepared by a certified public accountant showing in detail the total gross annual basic subscriber receipts, as defined herein, of grantee, its successors or assigns, during the preceding calendar year. It shall be the duty of grantee to pay to the City, within thirty (30) days after the time for filing such statements, any unpaid balance for the calendar year covered by such statements . 14.05.03. INSPECTION OF RECORDS. The City shall have the right to inspect the grantee ' s records showing the gross receipts upon which its franchise payments are computed and the right of audit and recomputation of any and all amounts paid under this Title. The acceptance of any payment shall not be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable under this Title . 14.05.04. OPERATIONS WITHOUT FRANCHISE. If the grantee continues operations after expiration, or other termination of any franchise granted hereunder, without written consent of the City, the grantee shall pay to the City reasonable compensation and damages, of not less than fifty percent (500) of its total net profits during said period. -5- y Chapter 14.06. Franchise Limitations . 14.06.01. NON-EXCLUSIVE. Any franchise granted under this Title shall be non-exclusive. 14.06.02. PRIVILEGES LIMITED. No privilege or exemption shall be granted or conferred by any franchise granted under this Title except those specifically prescribed herein. 14.06.03. RIGHTS IN STREETS . Any privilege claimed under any franchise by the grantee, in any street or other public property shall be subordinate to any prior lawful occupancy of the street or other public property, and shall be subject to removal and relocation as hereinafter set forth. 14.06.04. NON-TRANSFERRABLE. Any franchise granted hereunder shall be a privilege to be held by the original grantee. It cannot be sold, transferred, leased, assigned or disposed of, in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, consolidation or otherwise, without the prior consent of the Council expressed by resolution. Any such transfer or assignment shall be made only by an instrument in writing, such as a bill of sale, or similar document, a duly executed copy of which shall be filed in the office of the City Clerk within sixty (60) days after any such transfer or assignment. The consent of the Council may not be unreasonably refused if the proposed assignee can show financial responsibility and agrees to comply with all provisions of the Title . No such consent shall be required for a transfer in trust, mortgage, or other hypothecation, in whole or in part, to secure an indebtedness. 14.06.05. PROMPT PERFORMANCE. Time shall be of the essence of any franchise granted hereunder. The grantee shall not be relieved of this obligation to comply promptly with any of the provisions of this Title by any failure of the City to enforce prompt compliance. The grantee shall have no administrative recourse against the City for any loss, cost, expense, or damage arising out of any provision or requirement of this Title . Any franchise granted shall not relieve the grantee of any obligations involved in obtaining pole or conduit space from any department of the City, utility company or from others main- taining utilities in streets . 14.06.06. RIGHTS OF FRANCHISE. Any franchise granted hereunder shall be in lieu of any and all other rights, privileges, powers, immunities, and authorities owned, possessed, controlled, or exercisable by grantee, or any successor to any interest of grantee, of or pertaining to the construction, operation, or maintenance of any CATV system in the City; and the acceptance of any franchise hereunder shall operate, as between grantee and the City, as an abandonment of any and all of such rights, privileges, powers, immunities, and authorities within the City, to the effect that, as between grantee and the City, all construction,operation, and maintenance by any grantee of any CATV system in the City shall be, and shall be deemed and construed in all instances and respects to beunder and pursuant to said franchise, and not under or pursuant to any other right, privilege, power, immunity or authority whatsoever. -6- 14.06.07. RIGHTS OF CITY. Nothing herein shall be deemed or construed to impair or affect, in any way, to any extent, the right of the City to acquire the property of the grantee, either by purchase or through the exercise of the right of eminent domain, at a fair and just value, and nothing herein contained shall be construed to contract away or to modify or abridge, either for a term or in perpetuity, the City's right of eminent domain. Neither the granting of any franchise nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City, and the grantee, by its acceptance of any franchise, agrees to be bound thereby and to comply with any action or requirements of the City in its exercise of such rights or power, heretofore or hereafter enacted or established. Chapter 14.07. Permits and Construction. 14.07.01. PERMITS. Within sixty (60) days after acceptance of any franchise the grantee shall proceed with due diligence to obtain all necessary permits and authorizations which are required in the conduct of its business, including, but not limited to any utility joint use attachment agreements, micro- wave carrier licenses, and any other permits, licenses and authorizations to be granted by duly constituted regulatory agencies having jurisdiction over the operation of CATV systems, or their associated microwave transmission facilities . In connection therewith, copies of all petitions, applications and communications submitted by the grantee to the Federal Communications Commission, Securities and Exchange Com- mission, or any other Federal or State regulatory commission or agency having jurisdiction in respect to any matters affecting grantee 's cable television operations, shall also be submitted simultaneously to the City Administrator. 14.07.02. COMMENCEMENT OF WORK. Within one hundred twenty (120) days after obtaining all necessary permits, licenses, and authorizations, grantee shall commence system mapping, engineering and pole clearance and thereafter within such time as set forth in the Ordinance granting the franchise, commence physical installation of the system. 14.07.03. COMMENCEMENT OF SERVICE. Within such number of days as set forth in the Ordinance granting the franchise after the commencement of construction and installation of the system, grantee shall proceed to render service to subscribers, and the completion of the construction and installation shall be pursued with reasonable diligence thereafter. 14.07.04. EXTENSIONS OF TIME. Failure on the part of the grantee to commence and diligently pursue each of the requirements of this Chapter and to complete each of said matters, shall be grounds for termination of such franchise; provided, however, that the Council may extend the time for the commencement and completion of construction and installation for additional periods in the event the grantee, acting in good faith, experiences delays by reason of circumstances beyond its control. If the grantee does not obtain certification from the Federal Communications Commission within one hundred eighty (180) days after applying for such certification, then performance periods specified in this Title shall be extended, where relevant, by the time of delay experienced beyond one hundred eighty (180) days up to one (1) year. -7- 14.07.05 . UTILIZATION OF EXISTING FACILITIES. Grantee shall utilize existing poles, conduits, and other facilities whenever possible, and shall not construct or install any new, different, or additional poles, conduits or other facilities whether on public property or on privately-owned property unless and until first securing written approval of the Director of Public Works . The City shall have the right, free of charge, to make additional use, for any public or municipal purpose, whether governmental or proprietary, of any poles, conduits, or other similar facilities erected, controlled or maintained exclusively by or for grantee in any street, provided such use by City does not interfere with the use by grantee and that the costs of such usage shall be borne by the City. 14.07.06. RELOCATION OF FACILITIES. The grantee shall protect, support, or temporarily disconnect, relocate, or remove any property of grantee when, in the opinion of the Director of Public Works the same is required by reason of traffic conditions, public safety, street vacation, freeway or street construction, change or establishment of street grade, installation of sewers, drains, waterpipes, powerlines, signal line, transportation facilities, tracks or any other types of structure or improvements by governmental agencies whether acting in a governmental or a proprietary capacity, or any other structure or public improvement, including but not limited to movement of buildings, urban renewal and redevelopment, and any general program under which the City shall undertake to cause all such properties to be located beneath the surface of the ground. The grantee shall in all cases have the privilege, subject to the corresponding obligations, to abandon any property of grantee in place, as herein provided. Nothing hereunder shall be deemed a taking of the property of grantee, and grantee shall be entitled to no surcharge by reason of anything hereunder. Upon the failure, refusal or neglect of grantee to cause any work or other act required by law or hereunder to be properly completed, in, on, over, or under any street within any time prescribed therefor, or upon notice given, where no time is prescribed, the Director of Public Works may cause such work or other act to be completed in whole or in part, the costs thereof shall be apportioned and paid by the parties involved in the same manner as would the costs of similar work carried out in connection with telephone facilities and equipment. 14.07.07. ABANDONMENT OF FACILITIES . If the use of any part of the CATV system is discontinued for any reason for a continuous period of ninety (90) days, or if such system or property has been installed in any street or public place without complying with the requirements of the grantee ' s franchise or this Title or the franchise has been terminated, cancelled or has expired, the grantee shall promptly, upon being given sixty (60) days notice, commence removal from the streets or public places of all such property and poles of such system. Upon such removal, the grantee shall promptly restore the street or other area from which such property has been removed to its original condition. -8- Any property of the grantee remaining in place one hundred eighty (180) days after the termination or expiration of the franchise or of the date of receipt of any notice of removal, shall be considered permanently abandoned. The Director of Public Works may extend such time not to exceed an additional sixty (60) days . Upon such abandonment of the property of the grantee in place, such property shall be and become the property of the City. Chapter 14.08. Bonds, Indemnification and Liability Insurance. 14.08.01. PERFORMANCE BOND. The grantee shall, concurrently with the filing of an acceptance of award of any franchise, file with the City, and at all times thereafter maintain in full force and effect for the term of such franchise or any renewal thereof, at grantee ' s sole expense, a corporate surety bond in a company and in a form approved by the City Attorney, to guarantee completion of construction of all facilities, faithful performance by grantee under the franchise, and compliance by grantee with all provisions of this Title and the Ordinance granting such franchise. Upon completion of construction of all facilities, and when service to all areas as required by the franchise is available to the required standards, the amount of such bond may be reduced. The exact amount of such bond, both original and as to be reduced, shall be set forth in the Ordinance granting the franchise. Said bond shall provide, inter alia, not only for payment to City of any and all damages or loss suffered or to be suffered by City in the event of any breach or failure by grantee under such franchise, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the grantee, but also that upon any failure of grantee to complete construction and installation of such CATV system in accord with the applicable time limits and scheduling or after completion, upon any failure of grantee to continue to provide CATV service to the levels and standards as required by such franchise and this Title, the proceeds of such bond, up to the whole thereof, shall be used by such bonding company, on demand of City, to complete such construction and installation or operate said system and so provide said service together with any and all attorney' s fees and costs incurred by City by reason of any such breach or default or by reason or any action or proceeding taken or suffered by City against either grantee or said bonding company up to the full amount of said bond, such condition to be a continuing obligation for the duration of such franchise and of any renewal thereof and thereafter until the grantee has liquidated all of its obligations to the City that may have arisen from the acceptance of said franchise or renewal by the grantee or from its exercise of any privilege therein granted. The bond shall provide that thirty (30) days prior written notice of intention not to renew or change, be given to the City. 14.08.02. PERFORMANCE BOND FOR SUBSCRIBERS . Upon being granted and accepting a franchise, the grantee shall file with the City Clerk and shall thereafter during the entire term of such franchise maintain in full force and effect a corporate surety bond, or other adequate surety agreement, in the amount specified in the franchise ordinance. The bond or agreement shall be so conditioned that in the event such grantee shall fail to comply with any one or more of the provisions of any agreement or undertaking made between grantee and any subscriber, then there shall be recoverable jointly and severally from the principal and surety any damages or costs suffered or incurred by any subscriber as a result thereof. Said condition shall be a continuing obligation during the entire term of such franchise and thereafter until grantee shall have satisfied in full any and all obligations to any subscriber which arise out of or pertain to any such agreement or undertaking. -9- 14.08.03. INDEMNIFICATION. The grantee shall indemnify and hold harmless the City, its officers, boards, commissions, agents and employees, from and against any and all claims, actions, demands, causes of actions, suits, proceedings, damages, costs of liabilities of every kind and nature whatsoever, including but not limited to damages for injury or death or damage to person or property, and regardless of the merit of any of the same, and against all liability to others, and against any loss, cost and expense arising or resulting from any of the same, including any attorneys ' fees, accountants ' fees, expert witness or consultants ' fees, court costs, per diem expenses, traveling and transportation expense, and other costs or expenses arising out of or pertaining to the negligence of any grantee awarded a franchise hereunder. 14.08.04. DEFENSE OF LITIGATION. Grantee shall at the sole risk and expense of grantee, upon demand of the City, made by and through the City Attorney, defend the City, its officers and employees, in any and all suits, actions, claims or other legal proceedings, whether judicial, quasi-judicial, administrative, legislative, or otherwise, brought or instituted or had by third persons or duly constituted authorities, against or affecting the City, its officers, boards, commissions, agents, or employees, and arising out of or pertaining to the exercise or the enjoyment of such franchise, or the granting thereof by the City. 14.08.05. INSURANCE REQUIRED. Upon being granted and accepting a franchise, the grantee shall file with the City Clerk and shall thereafter during the entire term of such franchise maintain in full force and effect at its own cost and expense each of the following policies of insurance : (1) General Comprehensive Liability Insurance in the amount of $1,000,000.00, together with Bodily Injury Liability Insurance in an amount of not less than $1,000,000.00 for injuries including accidental death, to any one person, and subject to the same limit for each person in an amount of not less than $1,000,000.00 on account of any one occurrence, and Property Damage Liability Insurance in an amount of not less than $50,000.00 resulting from any one occurrence; (2) In addition to the foregoing, a liability policy or Certificate of Insurance in an amount of not less than $1,000,000.00, insuring against any and all claims, actions, demands or liability by reason of any patent or copyright infringement or arising out of any failure by grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the grantee ' s CATV system, or arising out of the exercise or enjoyment of its franchise. Each of the foregoing policies and certificates shall name the City, its officers, boards, commissions, agents and employees, as additional named insureds, and shall contain a provision that a written notice of cancellation or reduction in coverage of each such policies shall be delivered to the City no less than thirty (30) days in advance of the effective date thereof; each such policy shall include, in the losses, expenses and damages insured against, reasonable attorneys ' fees, and each of said policies shall, in the event such insurance also covers grantee or any other entity or person, contain the standard cross-liability endorsement. -10- Chapter 14.09. Inspection of Property and Records . 14.09.01. INSPECTION. At all reasonable times, the grantee shall permit any duly authorized representatives of the City to examine all property of the grantee, together with any appurtenant property of the grantee situated within or without the City, and to examine and transcribe any and all maps and other technical records kept or maintained by the grantee or under its control which deal with the operations, affairs, transactions or property of the grantee with respect to its franchise. 14.09.02. REPORTS. The grantee shall prepare and furnish to the City at the times, and in the form prescribed by the City Administrator, such reports with respect to its affairs, transactions, and property as may be reasonably necessary or appropriate to the performance of any of the rights, functions or duties of the City or any of its officers in con- nection with the franchise. 14.09.03. PLANS AND MAPS. The grantee shall at all times make and keep in the City full and complete plans and records showing the exact location of all CATV system equipment installed or in use in streets and other public places in the City. The grantee shall file with the City, on or before the last day of June of each year, a current map or set of maps drawn to scale, showing all CATV system equipment installed and in place in streets and other public places in the City. When any portion of the CATV system is to be installed on public utility poles or facilities, certified copies of the agreement for such use of poles and facilities shall be filed with the City Clerk. Chapter 14. 10. Operational Standards. 14. 10.01. MINIMUM STANDARDS . The grantee 's CATV system shall be installed and maintained in accord with the accepted standards of the industry to the effect that subscribers shall receive good quality service according to the state of the art. In determining standards the following shall be considered mini- mums : (a) That the system be installed using equipment capable of passing the entire VHF and FM spectrum, and that it have the further capability of converting UHF for distribution to subscribers on the VHF band. (b) That the system, as installed and maintained, be capable of passing standard color TV signals without the introduction of material degradation of color fidelity and intelligence. (c) That the system and all equipment be designed and rated for 24-hour per day continuous operation. (d) That the system provide a nominal signal level of 2000 microvolts at the input terminals of each TV receiver of each subscriber, measured against 300 OHMS. -11- (e) That the system carrier-to-noise ratio be not less than 40 decibels, as measured at the furthermost amplifier from each hub site. (f) That the hum modulation of the picture signal is less than two (2) percent. (g) That the system, as to television, produce a picture, whether in black and white or in color, which is undis- torted, free of ghost images and accompanied by proper sound on typical standard production television receivers in good repair. On request of City, grantee shall demonstrate by monitor or other- wise, the adequacy of signal strength and quality, and the quality of the resultant audio and video product. Performance requirements of a more specific nature may be set forth in the ordinance granting the franchise, or in a separate document or series of documents incorporated by reference into such Ordinance granting said franchise. Chapter 14. 11. Franchises. 14. 11.01. FORM OF APPLICATION. Application for a franchise shall be in writing, shall be filed with the City Clerk, and shall contain the following information: (a) The name and address of the applicant. If the applicant is a partnership, the name and address of each partner shall also be set forth. If the applicant is a corporation, the application shall also state the names and addresses of parent and subsidiary companies, if any. (b) A general statement and description of the CATV system proposed to be constructed, installed, maintained or operated by the applicant; the manner in which applicant proposes to construct, install, maintain and operate the same; and, particularly, the extent and manner in which existing or future poles or other facilities of other public utilities will be used for such system. (c) A general statement of the equipment or facilities proposed to be constructed, installed or maintained therein. (d) A map specifically showing and delineating the proposed service area or areas within which applicant proposes to provide CATV services and for which a franchise is requested. (e) A statement or schedule of proposed rates and charges to subscribers for installation and services; and a copy of any proposed service agreements between the grantee and its subscribers shall accompany the application. (f) A copy of any contract, if existing, between the applicant and any public utility providing for the use of facili- ties of such public utility, such as poles, lines or conduits. (g) A statement describing all agreements and under- standings, whether written, oral or implied, existing between the applicant and any person, firm or corporation with respect to the proposed franchise or the proposed CATV operation. -12- (h) A statement of financial capability prepared by a certified public accountant, showing applicant's financial status and his financial ability to complete the construction and installation of the proposed CATV system. (i) A full disclosure made of any criminal proceedings, or any charges by any governmental agency, litigation, or other legal proceedings, past, present, or pending, in conjunction with any CATV operations of applicant. (j) Any supplementary, additional, or other informa- tion required by government agencies apart from the City relevant to whether the requested franchise should be granted. 14.11.02. ACTION ON APPLICATION. Upon consideration of any application, the Council may refuse to grant the franchise or the Council may by ordinance grant a franchise for a CATV system to the applicant. The Council's decision in the matter shall be final. If the franchise is granted, the application shall constitute and form part of the franchise. 14. 11.03. CONDITION. A franchise shall include the following condition: 'The CATV system franchised shall be used and operated solely and exclusively for the purposes expressly authorized by this Title, and for no other purpose whatsoever. ' Inclusion of the foregoing statement in any such franchise shall not limit the authority of the City to include any other reasonable condition, limitation, restriction or provision which it may deem necessary. 14. 11.04. FRANCHISE RENEWAL. The City Council may renew any franchise on such terms and conditions as may be determined to be in the public interest for the same service area covered by the expired franchise or any part thereof. 14. 11.05. ACCEPTANCE OF FRANCHISE. No franchise shall become effective unless and until the ordinance granting same has become effective and all things required in this ordinance are done and completed which are conditions precedent to the effectiveness of the franchise. If any of such things are not done and completed in the time and manner required, the franchise shall automatically be null and void. Within sixty (60) days after the effective date of the ordinance awarding a franchise, or within such extended period of time as the Council in its discretion may authorize, the grantee shall file with the City Clerk his written accept- ance of the franchise, together with the bond and insurance policies required herein; and his agreement to be bound by and to comply with and to do all things required of him by the pro- visions of this Title and the franchise. Such acceptance and agreement shall be acknowledged by the grantee before a Notary Public, and shall in form and content be satisfactory to and approved by the City Attorney. Chapter 14. 12. Miscellaneous Provisions. -13- 14. 12.01. FILINGS. When not otherwise prescribed herein, all matters herein required to be filed with the City shall be filed with the City Clerk. 14. 12.02. PUBLICATION EXPENSES. The grantee shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of the franchise. Such payment shall be made within twenty (20) days after the City furnishes the grantee with a written statement of such expenses. 14.12.03. SERVICE. No person in the existing service area of the grantee shall be arbitrarily refused service; pro- vided, however, that the grantee shall not be required to provide service to any subscriber who does not pay the applicable instal- lation fee or monthly service charge, or line extension costs. 14. 12.04. OTHER REGULATIONS. Grantee shall be subject to all provisions of the other ordinances, rules and regulations of the City heretofore or hereafter adopted, including but not limited to those pertaining to works and activities in, on, over, under and about streets. Any privilege claimed under any franchise in any street or other public property shall be subordinate to any prior lawful occupancy of the streets or other public property. Grantee shall be subject to the general laws of the State as now or as hereafter amended, when applicable to the exercise of any privilege contained in the franchise, including but not limited to those pertaining to works and activities in and about State highways. The preemption or preclusion of the exercise by the City of any of its police power shall not diminish, impair, alter or affect any contractual benefit to the City or grantee nor any contractual obligation of the grantee under any franchise issued hereunder. Any and all minimum standards covering the operation of grantee, and any and all maximum rates, ratios and charges specified herein or in any franchise issued hereunder, existing now and at any time in the future, including such time as any paramount jurisdiction shall preempt or preclude that of the City, and any and all rights, powers, privileges and authorities of the City to determine, establish or fix any of the same, are each and all hereby declared by the City and by any grantee accepting any franchise hereunder to be contractual in nature and to be for the benefit of the City. Before providing cable television service to any sub- scriber, the grantee shall provide a written notice to the sub- scriber substantially as follows: 'Subscriber is hereby notified that in providing cable television service, the grantee is making use of public rights-of-way within the City, and that the continued use of such rights-of- way is in no way guaranteed. In the event the continued use of such rights-of-way is denied to grantee for any reason, grantee will make every reasonable effort to provide service over alternate -14- routes. By accepting cable television service, subscriber agrees he will make no claim nor undertake any action against the City, its officers, or its employees if the service to be provided hereunder is interrupted or discontinued, and that he will not hold the grantee liable for the result of circumstances not under control of grantee. ' Chapter 14. 13. Equal Opportunity Employment and Affirmative Action Plan. 14. 13.01. NO DISCRIMINATION. In the carrying out of the construction, maintenance and operation of the cable tele- vision system, the grantee shall not discriminate against any employee or applicant for employment because of race, creed, color, sex or national origin. The grantee shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, sex or national origin. Such action shall include, but not be limited to, the following: employment upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection of training, including apprenticeship. The grantee shall post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this non-discrimination clause. The grantee shall, in all solicitations for employees placed by or on behalf of the grantee, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex or national origin. The grantee shall incorporate the foregoing require- ments in all of its contracts for work relative to construction and maintenance of the cable television system, other than con- tracts for standard commercial supplies of raw materials, and shall require all of its contractors for such work to incorporate such requirements in all subcontracts for such work. Chapter 14.14. Violations. 14.14.01. FRANCHISE REQUIRED. It shall be unlawful for any person to establish, operate or to carry on the business of distributing to any persons in this City any television signals or radio signals by means of a CATV system unless a franchise therefor has first been obtained pursuant to the provisions of this Title, and unless such franchise is in full force and effect. 14. 14.02. CONSTRUCTION OR OPERATION WITHOUT FRANCHISE. It shall be unlawful for any person to construct, install or main- tain within any public property of the City, or within any privately-owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the City, any equipment or facilities for distributing any television signals or radio signals through a CATV system, unless a franchise -15- jI authorizing such use of such street or property or area has first been obtained and unless such franchise is in full force and effect. 14. 14.03. UNLAWFUL CONNECTIONS . It shall be unlawful for any person to make any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a franchised CATV system within this City for the purpose of taking or receiving television signals, radio j signals, pictures, programs or sound. It shall be unlawful for any person to make any con- nection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a franchised CATV system within this City for the purpose of enabling himself or others to receive any television signal, radio signal, picture, program or sound, without payment to the owner of said system of the requisite fees therefor. It shall be unlawful for any person, without the consent of the owner, to wilfully tamper with, remove or injure any cables, wires or equipment used for distribution of television signals, radio signals, pictures, programs or sound. " SECTION 2. The City Clerk shall certify to the passage of this ordinance and shall cause the same to be published as required by law. Passed and approved this 6th day of May , 1974. Mayor STATE OF CALIFORNIA COUNTY OF LOS ANGET•FS SS. CITY OF AZUSA I, DEAN KLARR, City Clerk of the City of Azusa, do hereby certify that the foregoing Ordinance No. 1077 was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 15th day of April , 1974. That, there- after, said ordinance was duly adopted and passed at a regular meeting of the City Council on the 6th day of May , 1974, by the following vote, to wit: AYES : Councilmen: Rubio, Solem, Cruz, Arkison, Decker NOES : Councilmen: None ABSENT:Councilmen: None AAA City le I do further certify that I caused said ordinance to be published prior to the expiration of fifteen days from the passage thereof in the Azusa Herald, a newspaper of general circulation, printed, published and circulated in the City of Azusa, on the day of May 16 , 1974, and that the same was published in accordance with law. Publish Azusa Herald., May 16, 1974 City perk -16-