Chapter 6 VIDEO SERVICE FRANCHISES

*Editor’s Note: Ordinance No. 08-1398 added Division 2 to Chapter 6 of Article VI as CMC 6700, 6705, 6710, 6715 and 6720. These sections have been editorially renumbered to avoid duplication.

Division 1. Video Service Franchises

6600 Definitions.

For the purpose of this Chapter, the following terms, phrases, words, abbreviations and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number.

(a) City. “City” shall mean the City of Carson, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or re-incorporated form.

(b) Council. “Council” shall mean the present governing body of the City or any future board constituting the legislative body of the City.

(c) Franchise. “Franchise” shall mean and include any authorization granted hereunder in terms of a franchise, privilege, permit, license, or otherwise to construct, operate and maintain a CATV system in the City. Any such authorization, in whatever term granted, shall not mean and include any license or permit required for the privilege of transacting and carrying on a business within the City in accordance with Ordinance No. 2, entitled “Carson Municipal Code.”

(d) Grantee. “Grantee” shall mean the person, firm or corporation to whom or which a franchise, as hereinabove defined, is granted by the Council under this Chapter, and the lawful successor, transferee or assignee of said person, firm or corporation.

(e) Street. “Street” shall mean the surface of and the space above and below any public street, road, highway, freeway, lane, path, alley, court, sidewalk, parkway or drive, nor or hereafter existing as such within the City.

(f) Property of Grantee. “Property of grantee” shall mean all property owned, installed or used by a grantee in the conduct of a CATV business in the City under the authority of a franchise granted pursuant to this Chapter.

(g) CATV. “CATV” shall mean a community antenna television system or cable television system as hereinafter defined. (Ord. 86-737, § 1)

(h) Community Antenna Television System, or Cable Television System, or CATV System. “Community antenna television system,” or “Cable television system,” or “CATV system” shall mean a system composed of, without limitation, antenna, coaxial cables, wires, fiber optics, wave guides, or other conductors, equipment, or facilities designed, constructed, or used for the purpose of producing, receiving, amplifying, or distributing audio and/or visual radio, television, electronic, or electrical signals to and from subscribers by electrical cable, fiber optics, microwave, or other means through its facilities as herein contemplated. (Ord. 86-737, § 1)

(i) Subscriber. “Subscriber” shall mean any person or entity receiving for any purpose the CATV service of a grantee.

(j) Gross Annual Receipts. “Gross annual receipts” shall mean any and all compensation and other consideration in any form whatever and any contributing grant or subsidy received directly or indirectly by a grantee from subscribers or users in payment for television or FM radio signals or service received within the City.

“Gross annual receipts” shall not include installation or line extension charges or any taxes on services furnished by the grantee imposed directly on any subscriber or user by any city, state or other governmental unit and collected by the grantee for such governmental unit. (Ord. 69-75)

6601 Exclusive Use of Telephone Facilities.

When and in the event that the grantee of any franchise granted hereunder constructs, operates and maintains a CATV system exclusively through telephone company facilities constructed, operated and maintained pursuant to a state-granted telephone franchise and offers satisfactory proof that in no event during the life of such franchise shall the grantee make any use of the streets independently of such telephone company 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.” (Ord. 69-75)

6602 Franchise to Operate.

A nonexclusive franchise to construct, operate and maintain a CATV system within all or any portion of the City may be granted by the Council to any person, firm or corporation, whether operating under an existing franchise or not, who or which offers to furnish and provide such system under and pursuant to the terms and provisions of this Chapter.

No provision of this Chapter may be deemed or constructed as to require the granting of a franchise when in the opinion of the Council it is in the public interest to restrict the number of grantees to one (1) or more. (Ord. 69-75)

6603 Uses Permitted by Grantee.

Any franchise granted pursuant to the provisions of this Chapter shall authorize and permit the grantee to engage in the business of operating and providing a CATV system in the City, and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain, and retain in, on, over, under, upon, across, and along any public street, such poles, wires, cable, conductors, ducts, conduit, vaults, manholes, amplifiers, appliances, attachments, and other property as may be necessary and appurtenant to the CATV system; and in addition, so to use, operate, and provide similar facilities or properties rented or leased from other persons, firms, or corporations, including but not limited to any public utility or other grantee franchised or permitted to do business in the City.

The grantee may make a charge to subscribers for installation or connection to its CATV system and a fixed monthly charge as filed or approved as herein provided. From the date hereof through December 28, 1986, 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.

Throughout the term of any franchise granted hereunder, a current schedule of rates and charges shall be filed with the City. The grantee shall notify the City of any additions or changes to the rate schedule at least thirty (30) days prior to their effective date. Except as provided herein or in the franchise agreement, all charges for services in connection with the grant shall be uniform and nondiscriminatory. However, the grantee may, from time to time, offer promotional rates which may be less than the regular rates then in effect. Charges shall abate pro rata in the event that service to a subscriber is interrupted during any month for more than twenty-four (24) hours for any reason whatsoever except interruption caused by the subscriber. (Ord. 69-75, § 1; Ord. 78-440, § 1; Ord. 86-737, § 2)

6604 Duration of Franchise.

No franchise granted by the Council under this Chapter shall be for a term longer than twenty (20) years following the date of acceptance of such franchise by the grantee or the renewal thereof.

In addition to all other rights, powers, or remedies of the City in connection with a grant of a franchise under this Chapter or otherwise, the City reserves the right to terminate, cancel, and revoke the franchise and all rights and privileges of the grantee under this Chapter in the event that:

(a) The grantee violates, by act or omission, any material provision of federal or state law, any applicable franchise agreement, this Chapter, or any rule, order, or determination of the City made under and pursuant to the foregoing, except where such violation, other than of subsections (b) and (c) below, is without fault of the grantee or through excusable neglect; or

(b) The grantee becomes insolvent, unable, or unwilling to pay its debts, has a receiver placed in charge of its affairs, or is adjudicated bankrupt; or

(c) The grantee fails for a substantial time to provide effective transmission or receiving services or capabilities to subscribers, except for strikes, war, civil commotions, acts of God, or other causes beyond the control of the grantee; or

(d) The grantee attempts to evade any of the provisions of this Chapter or practices any fraud or deceit upon the City or subscribers; or

(e) The City acquires the CATV system property of the grantee pursuant to this Chapter or any franchise granted hereunder.

Any such termination, cancellation, or revocation shall be by ordinance after a hearing before the Council. The City shall give the grantee at least thirty (30) days written notice of the hearing. The grantee shall have an opportunity to be heard before the Council. The Council shall make findings of fact in connection with any termination, cancellation, or revocation. The grantee may be given a reasonable period of time, not to exceed ninety (90) days, to cure such curable defaults, omissions, breaches, or other causes for the termination, cancellation, or revocation. (Ord. 69-75; Ord. 86-737, § 3)

6605 Franchise Payments.

Any grantee granted a franchise under this Chapter shall pay to the City, during the life of such franchise, a percentage of the gross annual receipts of the grantee to be established by the franchise ordinance; provided, however, that such percentage shall not exceed that allowed by regulations of the Federal Communications Commission at the time the franchise ordinance is adopted. Such payment by the grantee to the City shall be made annually, or as otherwise provided in the grantee’s franchise, by delivery of the same to the City Clerk.

The grantee shall file with the City, within thirty (30) days after the expiration of any calendar year or portion thereof during which such franchise is in force, a financial statement prepared by a certified public accountant, or person otherwise satisfactory to the Council, showing in detail the gross annual receipts, as defined herein, of grantee during the preceding calendar year or portion thereof. It shall be the duty of the grantee to pay to the City, within fifteen (15) days after the time for filing such statements, the sum hereinabove prescribed or any unpaid balance thereof for the calendar year or portion thereof covered by such statements.

In any year, or portion thereof, following the first full year service has been provided and during which payments under this Section amount to less than $1,200 per year, grantee shall pay the City as a minimum an amount equal to $1,200 per year so long as that amount does not exceed the franchise fees permissible under the regulations of the Federal Communications Commission.

The City shall have the right to inspect the grantee’s records showing the gross receipts from which its franchise payments are computed and the right of audit and recomputation of any and all amounts paid under this Chapter. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable under this Chapter or for the performance of any other obligation hereunder.

In the event of any holding over after expiration or other termination of any franchise granted hereunder, without the consent of the City, the grantee shall pay to the City reasonable compensation and damages, of not less than one hundred (100) percent of its total gross profits during said period. (Ord. 69-75, § 1; Ord. 78-440, § 2)

6606 Limitations of Franchise.

(a) Any franchise granted under this Chapter shall be nonexclusive and shall be subject to and operated in accordance with all applicable state and federal laws and regulations, as amended from time to time, including without limitation the provisions of the Cable Communications Policy Act of 1984.

(b) No privilege or exemption shall be granted or conferred by any franchise granted under this Chapter except those specifically prescribed herein.

(c) Any privilege claimed under any such franchise by the grantee in any street or other public property shall be subordinate to any prior lawful occupancy of the streets or other public property.

(d) (1) The following transactions involving any franchise granted hereunder, or involving any grantee of a franchise hereunder, shall require the prior consent of the Council expressed by resolution, and then only under such conditions as may therein be prescribed:

a. The sale, transfer, lease, assignment or other disposition of the franchise, in whole or in part, whether voluntary or involuntary; provided, however, that such consent shall not be required for a transfer in trust, mortgage or other hypothecation for the purpose of securing an indebtedness of the grantee. A transfer, assignment or other disposition hereunder shall be made only by an instrument in writing, a duly executed copy of which shall be filed in the office of the City Clerk within thirty (30) days after such transfer, assignment or other disposition.

b. Any merger, consolidation, reorganization, business combination, or other transaction wherein or whereby fifty (50) percent or more of the ownership interests in the grantee will be affected and control of the grantee will change or be subject to change. As used herein, “control” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the grantee. A duly executed copy of a written instrument evidencing the closing and consummation of any such transaction shall be filed in the office of the City Clerk within thirty (30) days after the closing of such transaction.

(2) The consent of the Council to a transaction specified herein shall not be unreasonably withheld; provided, however, that any entity or person acquiring a franchise by transfer, assignment or other disposition, and any entity or person acquiring, directly or indirectly, fifty (50) percent or more of the ownership interests in a grantee, shall demonstrate financial responsibility and shall agree to comply with all provisions of this Chapter.

(e) Time shall be of the essence of any such franchise granted hereunder. The grantee shall not be relieved of his obligation to comply promptly with any of the provisions of this Chapter or by any failure of the City to enforce prompt compliance.

(f) Any right or power in, or duty impressed upon, any officer, employee, department, or board of the City shall be subject to transfer by the City to any other officer, employee, department or board of the City.

(g) The grantee shall have no recourse whatsoever against the City for any loss, cost, expense or damage arising out of any provision or requirement of this Chapter or of any franchise issued hereunder or because of its enforcement.

(h) The grantee shall be subject to all requirements of City ordinances, rules, regulations and specifications heretofore or hereafter enacted or established.

(i) Any such franchise granted shall not relieve the grantee of any obligation involved in obtaining pole space from any department of the City, utility company or from others maintaining poles in streets.

(j) Any franchise granted hereunder shall be in lieu of any and all other rights, privileges, powers, immunities and authorities owned, possessed, controlled or exercisable by grantee, or any successor to any interest of grantee, of or pertaining to the construction, operation or maintenance of 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, any and 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 be, under and pursuant to said franchise, and not under or pursuant to any other right, privilege, power, immunity or authority whatsoever. (Ord. 69-75, § 1; Ord. 86-737, § 4; Ord. 88-831U, § 1)

6607 Rights Reserved to the City.

(a) Nothing herein shall be deemed or construed to impair or affect, in any way or to any extent, the right of the City to acquire the property of the grantee, either by purchase or through the right of eminent domain, with compensation calculated as provided in Title 7, Chapter 9, Article 4 of the Code of Civil Procedure of the State of California, and nothing herein contained shall be construed to contract away, modify, or abridge, either for a term of years or in perpetuity, the City’s right of eminent domain.

(b) There is hereby reserved to the City every right and power which is required to be herein reserved or provided by any ordinance 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.

(c) Neither the granting of any franchise hereunder nor any of the provisions contained herein shall be construed to prevent the City from granting any identical, or similar, franchise to any other person, firm or corporation, within all or any portion of the City.

(d) There is hereby reserved to the City the power to amend any section or part of this Chapter so as to require additional or greater reasonable standards of construction, operation, maintenance, or otherwise, on the part of the grantee, as may be consistent with applicable federal or state law or regulation.

(e) Neither the granting of any franchise nor any provisions hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City.

(f) The Council may do all things which are necessary and convenient in the exercise of its jurisdiction under this Chapter and may determine any question of fact which may arise during the existence of any franchise granted hereunder, subject to the right of the grantee to present evidence and testimony on its behalf as to any such question of fact. The City Administrator is hereby authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of any grantee under this Chapter, either on behalf of the City, the grantee, or any subscriber, in the best interests of the public. Either the grantee or any member of the public who may be dissatisfied with the decision of the City Administrator may appeal the matter to the Council for hearing and determination. The Council may accept, reject, or modify the decision of the City Administrator, and the Council may adjust, settle, or compromise any controversy or cancel any charge arising from the operations of any grantee or from any provision of this Chapter. (Ord. 69-75, § 1; Ord. 86-737, § 5)

6608 Permits, Installation and Service.

(a) 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, microwave 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.

(b) Within ninety (90) days after obtaining all necessary permits, licenses and authorizations, grantee shall commence construction and installation of the CATV system.

(c) Within ninety (90) days 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, so that service to all areas designated on the map accompanying the application for franchise, as provided in CMC 6619, shall be provided within one (1) year from the date that service was first provided.

(d) Failure on the part of the grantee to commence and diligently pursue each of the foregoing requirements and to complete each of the matters set forth herein, shall be grounds for termination of such franchise, under and pursuant to the terms of CMC 6604; provided, however, that the Council in its discretion 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 his control. (Ord. 69-75, § 1)

6609 Location of Property of Grantee.

(a) Any poles, wires, cable lines, conduits or other properties of the grantee to be constructed or installed in streets shall be so constructed or installed only at such locations and in such manner as shall be approved by the Superintendent of Streets acting in the exercise of his reasonable discretion.

(b) The grantee shall not install or erect any facilities or apparatus in or on other public property, places, or right-of-way, 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, except those installed or erected upon public utility facilities now existing, without obtaining the prior written approval of the Superintendent of Streets.

(c) In those areas and portions of the City where the transmission or distribution facilities of both the public utility provided telephone service and those of the utility providing electric service are underground or hereafter may be placed underground, then the grantee shall likewise construct, operate and maintain all of its transmission and distribution facilities underground. For the purposes of this subsection, “underground” shall include a partial underground system, e.g., streamlining. Amplifiers in grantee’s transmission and distribution lines may be in appropriate housings upon the surface of the ground as approved by the Superintendent of Streets. (Ord. 69-75, § 1)

6610 Removal and Abandonment of Property of Grantee.

(a) In the event that the use of any part of the CATV system is discontinued for any reason for a continuous period of twelve (12) months, or in the event such system or property has been installed in any street or public place without complying with the requirements of grantee’s franchise or this Chapter, or the franchise has been terminated, cancelled or has expired, the grantee shall promptly, upon being given ten (10) days’ notice, remove from the streets or public places all such property and poles of such system other than any which the Superintendent of Streets may permit to be abandoned in place. In the event of such removal, the grantee shall promptly restore the street or other area from which such property has been removed to a condition satisfactory to the Superintendent of Streets.

(b) Any property of the grantee in place sixty (60) days after the termination or expiration of the franchise shall be considered permanently abandoned. The Superintendent of Streets may extend this time, not to exceed an additional one hundred twenty (120) days.

(c) Any property of the grantee to be abandoned in place shall be abandoned in such manner as the Superintendent of Streets shall prescribe. Upon permanent abandonment of the property of the grantee in place, the property shall become that of the City, and the grantee shall submit to the Superintendent of Streets an instrument in writing, to be approved by the City Attorney, transferring to the City the ownership of such property. (Ord. 69-75, § 1; Ord. 86-737, § 6)

6611 Changes Required by Public Improvements.

The grantee shall, at its expense, protect, support, temporarily disconnect, relocate in the same street or other public place, or remove from the street or other public place, any property of the grantee when required by the Superintendent of Streets by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signal lines, and tracks or any other type of structures or improvements by public agencies; provided, however, that the grantee shall in all such cases have the privileges and be subject to the obligations to abandon any property of the grantee in place, as provided in CMC 6610. (Ord. 69-75, § 1)

6612 Failure to Perform Street Work.

Upon failure of the grantee to commence, pursue, or complete any work required by law or by the provisions of this Chapter or by its franchise to be done in any street or other public place, within the time prescribed, and to the satisfaction of the Superintendent of Streets, the Superintendent of Streets may, at his option, cause such work to be done and the grantee shall pay to the City the cost thereof in the itemized amounts reported by the Superintendent of Streets to the grantee within thirty (30) days after receipt of such itemized report. (Ord. 69-75, § 1)

6613 Faithful Performance Bond.

(a) The grantee shall, concurrently with the filing of and acceptance of award of any franchise granted under this Chapter, file with the City Clerk, 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, in the amount of $25,000 renewable annually, and conditioned upon the faithful performance of grantee, and upon the further condition that in the event grantee shall fail to comply with any one (1) or more of the provisions of this Chapter, or of any franchise issued to the grantee hereunder, there shall be recoverable jointly and severally from the principal and surety of such bond any damages or loss suffered by the City as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the grantee as prescribed hereby which may be in default, plus a reasonable allowance for attorneys’ fees and costs, up to the full amount of the bond; said condition to be a continuing obligation for the duration of such franchise and any renewal thereof and thereafter until the grantee has liquidated all of its obligations with the City that may have arisen from the acceptance of said franchise or renewal 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, cancellation, or material change, be given to the City.

(b) Neither the provisions of this Section, nor any bond accepted by the City pursuant hereto, nor any damages recovered by the City thereunder, shall be construed to excuse faithful performance by the grantee or limit the liability of the grantee under any franchise issued hereunder or for damages, either to the full amount of the bond or otherwise. (Ord. 69-75, § 1)

6614 Indemnification of City.

(a) The grantee shall, concurrently with the filing of an acceptance of award of any franchise granted under this Chapter, furnish to the City and file with the City Clerk, and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a liability insurance policy in the amount of $1,000,000 in a company approved by the City Administrator and in a form satisfactory to the City Attorney, indemnifying and saving harmless the City, its officers and employees from and against any and all claims, demands, actions, suits, and proceedings by others, against all liability to others, including but not limited to any liability for damages by reason of or arising out of any failure by the grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the grantee’s CATV system, and against any loss, cost, expense and damages resulting therefrom, including reasonable attorney’s fees, arising out of the exercise or enjoyment of its franchise, irrespective of the amount of the comprehensive liability insurance policy required hereunder.

(b) The grantee shall, concurrently with the filing of an acceptance of award of any franchise granted under this Chapter, furnish to the City and file with the City Clerk, and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a general comprehensive liability insurance policy, in protection of the City, its officers, boards, commissions, agents and employees, in a company approved by the City Administrator and a form satisfactory to the City Attorney, protecting the City and all persons against liability for loss or damage for personal injury, death and property damage, occasioned by the operations of grantee under such franchise, with minimum liability limits of $500,000 for personal injury or death of any one (1) person and $1,000,000 for personal injury or death of two (2) or more persons in any one (1) occurrence, and $50,000 for damage to property resulting from any one (1) occurrence.

(c) The policies mentioned in the foregoing paragraph shall name the City, its officers, boards, commissions, agents and employees as additional insured and shall contain a provision that a written notice of cancellation or reduction in coverage of said policy shall be delivered to the City ten (10) days in advance of the effective date thereof; if such insurance is provided by a policy which also covers grantee or any other entity or person other than those above named, then such policy shall contain the standard cross-liability endorsement. (Ord. 69-75, § 1)

6615 Inspection of Property and Records.

(a) At all reasonable times, the grantee shall permit any duly authorized representative 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 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. If any such maps or records are not kept in the City, or upon reasonable request made available in the City, and if the Council shall determine that an examination thereof is necessary or appropriate, then all travel and maintenance expense necessarily incurred in making such examination shall be paid by the grantee.

(b) The grantee shall prepare and furnish to the Superintendent of Streets and the Director of Finance at the times and in the form prescribed by either of said officers, such reports with respect to its operations, affairs, transactions or 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 connection with the franchise.

(c) 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.

(d) The grantee shall file with the Superintendent of Streets, on or before the last day in 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 of the City. (Ord. 69-75, § 1)

6616 Operational Standards.

The CATV system shall be installed and maintained in accordance with the highest and best accepted standards of the industry to the effect that subscribers shall receive the highest possible service. In determining the satisfactory extent of such standards the following among others shall be considered:

(a) That the system be installed using all band 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, be capable of passing standard color TV signals without the introduction of material degradation on color fidelity and intelligence.

(d) That the system provides a nominal signal level of two thousand (2,000) microvolts at the input terminals of each TV receiver.

(e) That the system signal-to-noise ratio is not less than forty (40) decibels.

(f) That hum modulation of the picture signal is less than five (5) percent.

(g) That the system use components having a VSWR of one and four-tenths (1.4) or less. (Ord. 69-75, § 1)

6617 Miscellaneous Provisions.

(a) When not otherwise prescribed herein, all matters herein required to be filed with the City shall be filed with the City Administrator.

(b) The grantee shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of a franchise pursuant to the provisions of this Chapter. Such payment shall be made within thirty (30) days after the City furnishes the grantee with a written statement of such expenses by delivery of same to the Director of Finance.

(c) The grantee shall maintain an office within the City limits or at a location which subscribers may call without incurring added message or toll charges so that CATV maintenance service shall be promptly available to subscribers.

(d) No person, firm or corporation in the existing service area of the grantee shall be arbitrarily refused service; provided, however, that the grantee shall not be required to provide service to any subscriber who does not pay the applicable connection fee or monthly service charge. (Ord. 69-75, § 1)

6618 Use of Utility Poles and Facilities – Agreement.

When any portion of the CATV system is to be installed on public utility poles and facilities, certified copies of the agreements for such joint use of poles and facilities shall be filed with the City Administrator. (Ord. 69-75, § 1)

6619 Application for Franchise.

(a) Application for a franchise hereunder shall be in writing, shall be filed with the City Clerk, and shall contain the following information:

(1) 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 its directors, main offices, major stockholders and associates, and the names and addresses of parent and subsidiary companies.

(2) A statement and description of a CATV system proposed to be constructed, installed, maintained or operated by the applicant; the proposed location of such system and its various components, the manner in which applicant proposes to construct, install, maintain and operate the same; and, particularly, the extent and manner in which existing or future poles or other facilities of public utilities will be used for such system.

(3) A description, in detail, of the public streets, public places and proposed public streets within which applicant proposes or seeks authority to construct, install or maintain any CATV equipment or facilities; a detailed description of the equipment or facilities proposed to be constructed, installed or maintained therein; and the proposed specific location thereof.

(4) 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.

(5) A statement or schedule in a form approved by the City Administrator of proposed rates and charges to subscribers for installation and services, and a copy of proposed service agreement between the grantee and its subscribers shall accompany the application. For unusual circumstances, such as underground cable required, or more than one hundred fifty (150) feet of distance from cable to connection of service to subscribers, and additional installation charge over that normally charged for installation as specified in the applicant’s proposal may be charged, with easements to be supplied by subscribers. For remote, relatively inaccessible subscribers within the City, service may be made available on the basis of cost of materials, labor, and easements if required by the grantee.

(6) A copy of any contract, if existing, between the applicant and any public utility providing for the use of facilities of such public utility, such as poles, lines or conduits.

(7) A statement setting forth all agreements and understandings, 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. If a franchise is granted to a person, firm or corporation posing as a front or as the representative of another person, firm or corporation, and such information is not disclosed in the original application, such franchise shall be deemed void and of no force and effect whatsoever.

(8) A financial statement prepared by a certified public accountant, or person otherwise satisfactory to the Council, showing applicant’s financial status and his financial ability to complete the construction and installation of the proposed CATV system.

(9) The Council may at any time demand, and applicant shall provide, such supplementary, additional or other information as the Council may deem reasonably necessary to determine whether the requested franchise should be granted.

(b) Upon consideration of any such application, the Council may refuse to grant the requested franchise or the Council may by ordinance grant a franchise for a CATV system to any such applicant as may appear from said application to be in its opinion best qualified to render proper and efficient CATV service to television viewers and subscribers in the City. The Council’s decision in the matter shall be final. If favorably considered, the application submitted shall constitute and form part of the franchise as granted.

The CATV system herein franchised shall be used and operated solely and exclusively for the purpose expressly authorized by Chapter 6 of Article VI of the Municipal Code of the City of Carson and no other purpose whatsoever.

Inclusion of the foregoing statement in any such franchise shall not be deemed to limit the authority of the City to include any other reasonable condition, limitation or restriction which it may deem necessary to impose in connection with such franchise pursuant to the authority conferred by this Chapter. (Ord. 69-75, § 1)

6620 Franchise Renewal.

(a) Term. A franchise renewal granted hereunder shall be for a term established by the City and commencing on the date of the City’s adoption of the ordinance authorizing the renewal or on the date specified in that ordinance as the renewal date. This term shall not exceed the maximum term specified in CMC 6604.

(b) Renewal Procedures.

(1) A franchise granted hereunder may be renewed upon application by the grantee pursuant to the provisions of this Chapter and applicable federal and state law.

(2) A written application for renewal shall be filed at least twenty-four (24) months prior to the expiration of a franchise.

(3) A renewal application shall be considered at a duly noticed public hearing which shall be held no later than four (4) months after the application is filed. Mailed notice of the hearing shall be given to the grantee at least twenty (20) days prior to the hearing. The City shall make its determination at least twelve (12) months prior to the expiration of the franchise. The determination granting or denying renewal shall be in writing and shall include findings as to the reason for the determination.

(4) The City may condition renewal upon compliance with any amendments to this Chapter and applicable federal and state law. Renewal may be denied upon any of the following grounds provided that the grantee has first been given notice and opportunity to cure any deficiency in operation or violation of the grantee’s obligations under this Chapter or the franchise:

(A) The grantee lacks the financial, legal or technical ability to provide the services set forth in its proposal.

(B) The grantee’s proposal is not adequate or reasonable to meet the future cable-related needs of the community, taking into account the technical and financial feasibility of meeting such needs and interests.

(C) The grantee has not complied with the terms and conditions of the existing franchise, this Chapter, or applicable federal or state law.

(D) The quality of the service provided by the grantee, including signal quality, billing practices, and responses to subscriber complaints, has not been satisfactory or reasonable in light of community needs.

(5) If the grantee does not accept a renewal granted pursuant to this Section within ninety (90) days of the determination granting the renewal, the franchise shall terminate on the date of expiration set forth in the existing franchise.

(6) Failure of a grantee to apply for renewal of a franchise pursuant to this Section shall mean that the grantee intends to dispose of its franchise property at the expiration of the existing franchise in accordance with the provisions of this Chapter.

(7) In the event that an application for renewal hereunder is denied by the City, the grantee shall be afforded the procedural protections and right of appeal contained in section 626 of the Cable Communications Policy Act of 1984. (Ord. 69-75, § 1; Ord. 86-737, § 7)

6621 Acceptance and Effective Date of Franchise.

(a) No franchise granted pursuant to the provisions of this Chapter shall become effective unless and until the ordinance granting same has become effective and, in addition, unless and until all things required in this Section and CMC 6613, 6614(a) and 6614(b) are done and completed, all of such things being hereby declared to be conditions precedent to the effectiveness of any such franchise granted hereunder. In the event any of such things are not done and completed in the time and manner required, the Council may declare the franchise null and void.

(b) Within twenty-five (25) 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 acceptance, in form satisfactory to the City Attorney, of the franchise, together with the bond and insurance policies required by CMC 6613, 6614(a) and 6614(b), respectively, and his agreement to be bound by and to comply with and to do all things required of him by the provisions of this Chapter 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. (Ord. 69-75, § 1)

6622 Violations.

(a) From and after the effective date of this Chapter, it shall be unlawful for any person to establish, operate or to carry on the business of distributing to any person 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 Chapter, and unless such franchise is in full force and effect.

(b) From and after the effective date of this Chapter, it shall be unlawful for any person to construct, install or maintain within any public street in the City, or within any other public property of the City, or within any privately owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the City, any equipment or facilities for distributing any television signals or radio signals through a CATV system, unless a franchise authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this Chapter, and unless such franchise is in full force and effect.

(c) It shall be unlawful for any person, firm or corporation 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 signals, pictures, programs, or sound.

(d) It shall be unlawful for any person, firm or corporation 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 enabling himself or others to receive any television signal, radio signal, picture, program or sound, without payment to the owner of said system.

(e) It shall be unlawful for any person, without the consent of the owner, to willfully tamper with, remove or injure any cables, wires or equipment used for distribution of television signals, radio signals, pictures, programs or sound. (Ord. 69-75, § 1)

6623 Preemption and Compliance with Superseding Law.

This Chapter shall be construed in a manner consistent with all applicable federal and state laws. Whenever the Federal Communications Commission or Public Utilities Commission of the State of California or any other federal or state agency shall now or hereafter exercise any paramount jurisdiction over any specific provisions of this Chapter, such paramount jurisdiction shall preempt or preclude the exercise of like jurisdiction by the City. Any modification of such federal or state law or regulation shall to the extent applicable be considered a part of this Chapter as of the effective date of such modification. (Ord. 86-737, § 8)

Division 2. State Franchises

6624 State Video Service Franchise Fees.

(a) Any holder of a State video service franchise (franchise holder), that offers video service within the City of Carson (the City), shall calculate and remit to the City a franchise fee of five (5) percent of its gross revenues. Such fee shall be remitted within forty-five (45) days after the end of the quarter for that calendar quarter. Each payment shall be accompanied by a summary explaining the basis for the calculation of the franchise fee. If the holder does not pay the franchise fee when due, the holder shall pay a late payment charge at a rate per year equal to the highest prime lending rate during the period of delinquency, plus one (1) percent. If the holder has overpaid the franchise fee, it may deduct the overpayment from its next quarterly payment.

(b) For the purposes of any State video service franchise, “gross revenues” shall be as defined in Section 5860 of the California Public Utilities Code (CPUC).

(c) For the purposes of this Division, “franchise holder” shall mean a “holder of a state franchise” as that term is defined at Section 5830 of the CPUC. (Ord. 08-1398, § 4)

6625 State Video Service Fees for Public, Educational and Governmental (PEG) Access.

(a) As required by Section 5870(n) of the California Public Utilities Code (CPUC), the City establishes a fee of one (1) percent of a franchise holder’s gross revenues to support public, educational and governmental (PEG) channel facilities, to be paid by any franchise holder operating in the City.

(b) The fee shall be payable to the City quarterly no later than June 1st for the quarter ending March 31st, September 1st for the quarter ending June 30th, December 1st for the quarter ending September 30th and March 1st for the quarter ending December 31st.

(c) As permitted by Section 5870(o) of the CPUC, any franchise holder operating in the City may recover the PEG fees required herein as a separate line item on the regular bill of each subscriber.

(d) The City may reduce the fee upon not less than ninety (90) days’ prior written notice from the City Manager to the franchise holder. If the fee has been reduced to less than one (1) percent of gross revenues, subsequent increases, to the maximum fee of one (1) percent of gross revenues, shall be upon not less than ninety (90) days’ prior written notice from the City Manager to the franchise holder.

(e) Notices shall be transmitted by United States Postal Service certified or registered mail, return receipt requested and postage prepaid, or by private commercial delivery or courier service for same day or next business day delivery with delivery and receipt signature required. (Ord. 08-1398, § 4)

6626 Customer Service Penalties.

(a) Any franchise holder shall, at minimum, comply with all applicable State and Federal customer service and protection standards pertaining to the provision of video service.

(b) The City will provide any franchise holder with written notice of any material breach of applicable customer service and protection standards, and will allow the franchise holder at least thirty (30) calendar days from the receipt of the notice to remedy the specified material breach. A material breach that is not remedied by the franchise holder within the remedy period shall subject the franchise holder to the following penalties to be imposed by the City:

(1) For the first occurrence of a material breach, a penalty of not more than $500.00 for each day of each material breach, not to exceed $1,500 for each occurrence of a material breach.

(2) For the second violation of the same nature within twelve (12) months, a penalty of $1,000 for each day of each material breach, not to exceed $3,000 for each occurrence of the material breach.

(3) For a third or further violation of the same nature within twelve (12) months, a penalty of $2,500 for each day of each material breach, not to exceed $7,500 for each occurrence of the material breach.

(c) Any notice and any penalty may be issued or imposed by the City Manager, or the City Manager’s designee. Any notice shall be in writing. Notices shall be transmitted by United States Postal Service certified or registered mail, return receipt requested and postage prepaid, or by private commercial delivery or courier service for same day or next business day delivery with delivery and receipt signature required.

(d) The franchise holder may appeal any finding of material breach or imposition of penalties to the City Council. Any appeal must be made within thirty (30) calendar days of receipt, by the franchise holder, of the finding of material breach or the imposition of penalties, and must be submitted in writing to the City Clerk and the City Manager in order to be placed on a City Council agenda for consideration. Any appeal must contain a detailed explanation of why the applicant believes that the finding of material breach or the imposition of penalties was inconsistent with statutory requirements or authority.

(e) The City and any franchise holder may mutually agree to extend the time periods specified herein. Any such agreement shall be in writing and executed by the City Manager, or the City Manager’s designee, and an authorized representative of the franchise holder.

(f) Any penalty imposed on the franchise holder, pursuant to this section, shall be paid to the City. As provided for in Section 5900(g) of the CPUC, the City shall submit one-half (1/2) of all penalties received from a franchise holder to the Digital Divide Account established in Section 280.5 of the CPUC. (Ord. 08-1398, § 4)

6627 Encroachment Permits.

(a) For the purposes of this Division, an “encroachment permit” means any permit issued by the City relating to installation, construction or operation of facilities relating to the provision of video service under a franchise.

(b) Prior to installing, constructing, or maintaining a network, or any part thereof, within any portion of any City right-of-way, a franchise holder shall obtain an encroachment permit from the City.

(c) As required by Section 5885 of the CPUC, the City shall either approve or deny an application from a franchise holder for an encroachment permit within sixty (60) days of receiving a completed application.

(d) An application for an encroachment permit is considered complete when the applicant has complied with all statutory requirements, including the California Environmental Quality Act (CEQA) of the Public Resources Code.

(e) Any City denial of an application for an encroachment permit shall be in writing and shall contain a detailed explanation of the reason for the denial.

(f) An applicant whose application for an encroachment permit has been denied may appeal the denial to the City Council. Any appeal must be made within thirty (30) calendar days of receipt by the franchise holder of the denial, and must be submitted in writing to the City Clerk and the City Manager in order to be placed on the City Council agenda for consideration. Any appeal must contain a detailed explanation of why the applicant believes that the denial was inconsistent with statutory requirements or authority. (Ord. 08-1398, § 4)

6628 Undergrounding.

(a) In those areas and portions of the City where the transmission or distribution facilities of both the public utility provided telephone service and those of the utility providing electric service are underground or hereafter may be placed underground, then the franchise holder shall likewise construct, operate and maintain all of its transmission and distribution facilities underground. For the purposes of this subsection, “underground” shall include a partial underground system, e.g., streamlining. Consistent with State law, amplifiers in the franchise holder’s transmission and distribution lines may be in appropriate housings upon the surface of the ground as approved by the City.

(b) When the franchise holder’s conduits and other facilities are not being installed underground, the franchise holder shall utilize existing poles, conduits or other facilities (collectively, “system”) to the extent feasible, as reasonably determined by the City, and shall remove all portions of the above-ground system which will no longer be utilized. In addition, all facilities which are installed above ground shall utilize anti-graffiti surfaces. Should a franchise holder’s facilities, nevertheless, be painted with graffiti, the franchise holder shall have five (5) days from its receipt of notification of the graffiti by the City to remove the graffiti. Upon the failure, refusal or neglect of the franchise holder to remove the graffiti within said five (5) days, the City Manager may cause the graffiti to be removed and, upon so doing, shall submit to the franchise holder an itemized statement of the costs thereof. The franchise holder shall, within thirty (30) days after receipt of such statement, pay to the City the entire amount thereof. (Ord. 08-1398, § 4)