Chapter 5.75 CABLE TELEVISION LICENSING ORDINANCE

2. Establishing a regulatory framework for the administration of licenses in order to ensure that the potential recreational, technical, educational, social, economic and other advantages of cable television will in fact inure to the benefit of the citizens of the county and the cities;

3. To provide for the equal and uniform provision of cable television services throughout the county and the cities;

4. To ensure that licensees have the requisite financial qualifications to promptly complete and operate the cable television system proposed to be constructed hereunder;

5. To regulate the operations of licensees for the purpose of protecting and promoting the public health, peace, safety, and welfare.

B. The provisions of this section shall not be deemed to confer any right upon a licensee which is not otherwise conferred by another express provision of this chapter. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.012 Definitions.

As used in this chapter, the following terms, phrases, and words shall be ascribed the following meanings, unless the context indicates otherwise. The word “shall” is mandatory, and the word “may” is permissive. Words not defined herein shall be given their common and ordinary meanings, consistent with the context in which such words are used and the purposes of this chapter.

“Cable television commission” shall mean the Sacramento metropolitan cable television commission, a joint powers agency of the county of Sacramento, the city of Sacramento, the city of Folsom, the city of Galt, and any other city within the county of Sacramento that is a member of the cable television commission, established pursuant to Section 6500 et seq. of the California Government Code and pursuant to Chapter 5.50 RCMC.

“Cable television system” shall mean a system of antennas, cables, wires, lines, towers, waveguides, or other conductors, converters, amplifiers, headend equipment, master controls, earth stations, equipment and facilities designed and constructed for the purpose of producing, receiving, transmitting, amplifying and distributing audio, video and other forms of electronic or electrical signals within the county and the cities, some part or portion of which occupies the streets as defined herein.

“CCPA” shall mean the Cable Communications Policy Act of 1984 (47 USC 521 et seq.).

“County and the cities” shall mean the county of Sacramento, the city of Sacramento, the city of Folsom, the city of Galt, and any other city within the county of Sacramento that is a member of the cable television commission.

“Encroachment permit” shall mean a permit issued to a licensee by the county of Sacramento pursuant to Division 2, Chapter 5.5 of the California Streets and Highways Code and Chapter 12.08 SCC or by one or more of the cities.

“Gross revenues” shall mean all cash, credits, property of any kind or nature or other consideration derived directly or indirectly by a licensee, its affiliates, subsidiaries, parents, and any other person or entity in which the licensee has a financial interest or which has a financial interest in the licensee, arising from or attributable to operation of the cable television system, including, but not limited to:

1. Revenue from all charges for services provided to subscribers of entertainment and nonentertainment services (including leased access fees);

2. Revenue from all charges for the insertion of commercial advertisements upon the cable television system;

3. Revenue from all charges for the leased use of studios;

4. Revenue from all charges for the installation, connection and reinstatement of equipment necessary for the utilization of the cable television system and the provision of subscriber and other services; and

5. The sale, exchange or use or cablecast of any programming developed for community use or institutional users.

“Gross revenues” shall include, valued at retail price levels, the value of any goods, services, or other remuneration in nonmonetary form received by the licensee or others described above in consideration for performance by a licensee or others described above of any advertising or other service in connection with the cable television system.

“Gross revenues” shall not include:

1. Any taxes on services furnished by the licensee which are imposed directly upon any subscriber or user by the United States, state of California or local agency and collected by the licensee on behalf of the government;

2. Revenue received directly from the licensee by an affiliate, subsidiary or parent of the licensee or any other person or entity in which the licensee has a financial interest or which has a financial interest in the licensee, when the revenue received has already been included in reported gross revenues as received by the licensee;

3. Revenue received by such an affiliate, subsidiary, parent, person or entity when the revenue received is from the sale of national advertising shown on programs distributed on a national basis by the affiliate, subsidiary, parent, person or entity and, but for this exception, that portion of the revenue attributable to broadcasts through the cable television system would be treated as gross revenues and revenues derived from subscribers whose electromagnetic signal, from inception through delivery, does not pass through any equipment or device which is located within the streets.

“Leased access” shall mean the use on a fee-for-service basis of the cable television system by business enterprises (whether profit, nonprofit or governmental) to render services to the citizens of the county and the cities and shall include without limitation all use pursuant to Section 612 of the CCPA.

“Licensee” shall mean a person or entity to whom a license to construct and operate a cable television system is issued pursuant to the provisions of this chapter.

“Street” shall mean the surface of and the space above and below any street, road, highway, freeway, utility right-of-way or any other easement which now or hereafter exists for the provision of public or quasi-public services to residential or other properties, and in which the county and the cities are expressly or impliedly authorized or empowered to permit use for the installation and operation of a cable television system.

“Subscriber” shall mean a lawful recipient of service from a cable television system.

“User” shall mean a party utilizing a cable television system channel for purposes of production or transmission of material to subscribers, as contrasted with receipt thereof in a subscriber capacity. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 1095 § 8, 1997; SCC 786 § 1, 1989; SCC 753 § 4, 1989; SCC 690 § 1, 1987].

5.75.016 License or franchise required.

Except as otherwise provided by this chapter, streets within the county and the cities shall not be occupied by or used for a cable television system except under (A) a license issued pursuant to the provisions of this chapter, or (B) a franchise issued pursuant to the provisions of Chapter 5.50 RCMC. A license issued pursuant to the provisions of this chapter shall not be required for a cable television system which does not to any extent occupy the streets. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.018 Utility poles.

No license issued pursuant to the provisions of this chapter shall be deemed to expressly or impliedly authorize the licensee to utilize poles owned by the Pacific Gas and Electric Company, Pacific Telesis, the Sacramento municipal utility district or any other public or private utility which is located within the streets, without the express consent of the utility. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.020 Notices.

All notices and other writings are authorized or deemed to have been given and served when deposited in the United States Mail, postage prepaid, and addressed, with respect to a licensee to any office maintained by the licensee within the county and the cities, and with respect to other parties to the last known address of such party.

Any notice or other writing authorized or required by the provisions of this chapter to be filed shall be deemed filed when received in the business office of the party with whom such notice or writing is authorized or required to be filed. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.022 Authority.

It is declared that the provisions of this chapter are enacted pursuant to the authority conferred by its charter. It is also enacted pursuant to the police powers conferred by Article XI, Section 7 of the California Constitution for the promotion and protection of the peace, health, safety, and general welfare of the citizens of the county and the cities. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.024 Ordinances – Police powers.

All zoning and other land use ordinances, building, electrical, plumbing and mechanical codes, business license ordinances and all other ordinances of general application now in existence or hereafter enacted by the county and the cities shall be fully applicable to the exercise of any license issued pursuant to provisions of this chapter, and the licensee shall comply therewith. In the event of a conflict between the provisions of this chapter and those of such an ordinance of general application, the provisions of such ordinance of general application shall prevail. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.026 Communications with regulatory agencies.

Copies of all petitions, applications, communications, and reports submitted by a licensee to the FCC or any other federal or state regulatory commission or agency having jurisdiction in respect to any matters affecting construction or operation of a cable television system or services provided through such a system shall be filed simultaneously with the clerk of the board of directors of the cable television commission. Copies of responses or any other communications from the regulatory agencies to a licensee likewise shall be filed immediately on receipt with said clerk. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.028 Limitations of actions.

Except as otherwise expressly provided by this chapter, any judicial proceeding, whether for the recovery of damages or otherwise, brought for the purpose of adjudicating the validity of any provision of this chapter or amendments thereof shall be commenced not later than 30 calendar days following the latter of: (A) the effective date of the provisions; or (B) the accrual of the cause of action. Any such judicial proceeding brought for the purpose of adjudicating the validity of any rule, order, regulation or determination which purports to have been made pursuant to the provisions of this chapter shall be commenced not later than 30 calendar days following the date of adoption, issuance or making of such rule, order, regulation or determination. No judicial proceeding shall be commenced in violation of the limitations prescribed by this section.

The provisions of this section shall not be applicable to any judicial proceeding, for the recovery of damages or otherwise, commenced by the cable television commission for breach or enforcement of the provisions of this chapter or any regulation or determination purporting to have been issued thereunder. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.030 Possessory interest taxation.

The county hereby declares that as a result of this chapter and any license issued pursuant hereto, a possessory interest subject to property taxation may be created and any such property interest may be subject to property taxation if it is created. The licensee, as the party in whom the possessory interest will be vested, may be subject to the payment of property taxes levied upon such an interest. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

Article II. Issuance of Licenses

5.75.100 Application for license.

Applications for a license under the commission upon a form as established from time to time for that purpose by the commission. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.102 Contents of application.

Applications for a license shall include at a minimum:

A. A clear description of the identity of the applicant, including but not limited to the name of the applicant, the address of the applicant, and the nature of business entity;

B. Copies of the policy or policies of liability insurance, including comprehensive general liability insurance products, completed operations liability, personal injury liability, owners and contractors protective liability, broad form property damage, contractual liability, automobile liability (owned, nonowned and hired automobiles), workers’ compensation and employer liability required by RCMC 5.75.604;

C. 1. A clear description of the boundaries of the precise geographic area for which applicant seeks a license (“license area”) defining the area by metes and bounds in terms of street name and direction; or

2. A map or maps of a scale of not less than one inch equals 1,000 feet showing the license area boundaries;

D. A calculation and certification of the initial penal sum of the performance bond which will be provided prior to the initiation of construction pursuant to RCMC 5.75.600 or the election of the applicant to provide the alternative performance bond specified by RCMC 5.75.601; and

E. A service activation plan and schedule utilizing census tract or similar demographic data that demonstrates that the applicant will provide cable television services within the service area on a nondiscriminatory basis (racial/ethnic/economic), when evaluated beginning with the first anniversary of the issuance of the license and on a semi-annual basis thereafter. The format and reporting detail shall be subject to the approval of the commission. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 1225 § 1, 2002: SCC 786 § 1, 1989; SCC 753 § 6, 1989; SCC 690 § 1, 1987].

5.75.104 Issuance of licenses.

The cable television commission shall issue all licenses for which applications are received unless:

A. The application shall fail to comply with the provisions of RCMC 5.75.102; or

B. Any license theretofore issued to any affiliate, subsidiary or parent of the licensee or any other person or entity in which the licensee has a financial interest or which has a financial interest in the licensee shall be thereupon in default as to any provision of this chapter or as to any provision of any license issued hereunder; or

C. The applicant fails to submit a service activation plan and schedule that meets the requirements of RCMC 5.75.102, as determined by the commission. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 1225, § 2, 2002: SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.105 Consolidation and reissuance of licenses.

Upon the request of any licensee, the commission shall consolidate any designated licenses theretofore issued to said licensee into a single license having a remaining term of any license consolidated therein; provided, that (A) the licensee shall have submitted a single bond for the consolidated license area pursuant to RCMC 5.75.600 or a bond pursuant to RCMC 5.75.601; (B) all licenses to be consolidated shall have been issued to the same licensee; and (C) no license(s) theretofore issued to the licensee, or any affiliate, subsidiary or parent of the licensee or any other person or entity in which the licensee has a financial interest or which has a financial interest in the licensee shall be in default as of the date of the application for consolidation as to any provision of this chapter or as to any provision of any license issued pursuant to this chapter. For purposes of determination of default pursuant to the foregoing sentence, no license which has been surrendered for cancellation shall be considered to be such a default. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 753 § 2, 1989].

5.75.106 Term of license.

The term of all licenses issued pursuant to the provisions of this chapter shall be 20 years. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 753 § 7, 1989; SCC 690 § 1, 1987].

5.75.107 Universal service.

Any cable television system licensed pursuant to the provisions of this chapter shall provide equal and uniform cable television service and rates, charges and fees within the license area to all dwelling units which it serves; provided, that a licensee shall be free to offer and/or charge nonuniform rates, charges and fees to those subscribers or potential subscribers to whom (A) cable television services are then presently available from another cable television provider offering such services pursuant to a franchise, license or other authorization issued by the commission; and/or (B) promotional subscriptions or upgrade offers are made with the reduced or waived rate, charge or fee not to exceed 12 months for any subscriber for any given offer. Nothing contained in this section shall be construed to require other than uniform rates, charges and fees nor to authorize any conduct referenced by the provisions of RCMC 5.75.406. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 753 § 7, 1989; SCC 690 § 1, 1987)

5.75.108 The license area.

The applicant shall define a license area whose contour, so far as is possible, shall follow streets. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.110 Denial.

If an applicant is a licensee, an affiliate of a licensee or controlled by a licensee, the commission may deny issuance of a license if the commission finds and determines that the issuance of any subsequent license(s) and the geographic areas requested to be served may result or appears to result in an overall service territory for the licensee or its affiliates or controlled entities that discriminates against any community, neighborhood or geographic area for socioeconomic reasons. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 1225 § 3, 2002].

Article III. System Capability and Standards

5.75.200 Technical standards.

Each licensee shall construct, install and maintain its cable television system in a manner consistent and in compliance with all applicable laws, ordinances, construction standards, governmental requirements, and technical standards. In any event, the cable television system shall not endanger or interfere with the safety of persons or property within the Sacramento community. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.202 Public, educational and governmental access.

Every cable television system licensed pursuant to the provisions of this chapter shall provide not less than the following for public, educational and governmental access pursuant to the provisions of Section 611 of the CCPA (47 USC 531) to subscribers whose electromagnetic signal, from inception through delivery, passes through any equipment or device which is located within the streets:

A. Three downstream video channels for public and community access;

B. Two downstream video channels for educational access;

C. One downstream video channel for governmental access; and

D. An additional 30 megahertz of band width capacity (activated at all times for both upstream and downstream use) for educational access for video and/or data transmission. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.206 Interconnect.

The licensee shall provide interconnection of its cable system to other franchised, licensed or authorized cable systems within the county for the purpose of transporting and distributing PEG programming. The licensee shall make all reasonable efforts to coordinate the cablecasting of PEG access programming upon its cable system at the same time and upon the same channel designations as such programming is cablecast upon other cable systems. However, the licensee shall not be bound by these interconnection requirements if interconnection is impractical or infeasible due to the refusal of the other cable operators to share equitably in the cost of interconnection. Any denial of interconnection by a licensee shall be subject to the reasonable review and reversal of the commission. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 1225 § 4, 2002].

5.75.214 Support for use of access.

Nothing contained in this chapter shall be construed to limit the authority of the licensee to make payments in support of the use of public, educational and/or governmental access. However, such payments are expressly not a requirement of any license granted hereunder and shall in no event be considered in the calculation of license fees pursuant to RCMC 5.75.500 et seq. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.216 Availability of access facilities.

Use of facilities for public, educational and governmental access upon the cable television system pursuant to RCMC 5.75.202 shall be made available, without rental, deposits, or any other charge whatsoever, for use 24 hours per day, seven days a week in connection with the production of public, educational and/or governmental access programming cablecast upon the cable television system. A licensee shall (A) allow all persons and entities desiring to cablecast public, educational and/or governmental access programming to produce programming upon and electronically interface directly with the cable television system of the licensee so as to effectively cablecast the public, educational and/or governmental access programming, or, in the alternative, (B) establish such reasonable rules and procedures designed to promote the utilization of such public, educational and/or governmental access programming and subject to the approval of the cable television commission, which approval shall not be unreasonably withheld, whereby the licensee shall accept and cablecast such public, educational and/or governmental access programming upon the cable television system as shall be provided to the licensee by such persons and entities. A licensee shall make all reasonable efforts to coordinate the cablecasting of public, educational and/or governmental access programming upon the cable television system at the same time and upon the same channel designations as such programming is cablecast upon other cable television systems within the Sacramento community. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

Article IV. Construction Requirements

5.75.300 Dwelling units.

As used in this chapter, the term “dwelling units” means residential living facilities as distinguished from temporary lodging facilities such as hotel and motel rooms and dormitories, and includes single-family residential units and individual apartments, condominium units, mobile homes within mobile home parks, and other multiple-family residential units. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.312 Use of streets – Interference.

Each cable television system, including wires and appurtenances, shall be located and installed and maintained so that none of the facilities endanger or interfere with the lives or safety of persons, or interfere with any improvements the county, cities or state of California may deem proper to make or unnecessarily hinder or obstruct the free use of the streets or other public property. All transmission and distribution structures, lines and equipment erected or installed by a licensee within the Sacramento community shall be so located as to cause minimum interference with the rights and reasonable convenience of property owners who adjoin any of the streets or other public property. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.314 Permits and approvals.

During the term of each license, in advance of occupying, working upon or otherwise utilizing any street, the licensee shall apply for and obtain any encroachment permit, license, authorization or other approval required by ordinances in force within the county and cities, pay any fees and post any security required by such ordinances, and in the course of construction, installing, replacing, maintaining and repairing the cable television system shall comply with all applicable requirements of such ordinances and any terms or conditions of encroachment permits, licenses, authorizations or approvals issued thereunder. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 753 § 10, 1989; SCC 690 § 1, 1987].

5.75.316 Restoration of streets and private property.

All disturbance by a licensee of pavement, sidewalk, driveways, landscaping or other surfacing of streets shall be restored, repaired or replaced by the licensee at its sole cost in a manner approved by the director of public works and in compliance with general applicable ordinances of the agency vested with jurisdiction thereover, and in as good a condition as before the disturbance occurred. To the extent practicable and reasonable, each licensee shall accommodate the desires of any property owner respecting location within easements or rights-of-way traversing private land of the property owner of aboveground boxes or appurtenances constituting a part of the cable television system. Any disturbance of landscaping, fencing or other improvements upon private property, including private property traversed by easements or rights-of-way utilized by a licensee, shall, at the sole expense of the licensee, be promptly repaired or restored (including replacement of such valuables as shrubbery and fencing) to the reasonable satisfaction of the property owner as soon as possible. Each licensee shall, through authorized representatives, make a reasonable attempt to personally contact the occupants of all private property in advance of entering such property for the purpose of commencing any installation of elements of the system within easements or rights-of-way traversing such property. As used in this paragraph, the terms “easements” and “rights-of-way” do not include easements or rights-of-way for roadway purposes. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.318 Erection of poles.

No license shall be deemed to expressly or impliedly authorize the licensee to construct or install poles or wire-holding structures within streets for the purpose of placing cables, wires, lines or otherwise, without the written consent of the county or cities within which the street is situated. Such consent shall be given upon such terms and conditions as the governing body in its sole discretion may prescribe. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.320 Undergrounding.

Except as hereinafter provided, in all areas of the Sacramento community where the cables, wires and other like facilities of a public utility or public utility district are placed underground, each licensee shall construct and install its cables, wires and other facilities underground. Amplifier boxes and pedestal-mounted terminal boxes may be placed above ground if existing technology reasonably requires, but shall be of such size and design and shall be so located as not to be unsightly or unsafe. In any area of the Sacramento community where there are certain cables, wires and other like facilities of a public utility or public utility district underground and at least one operable cable, wire or like facility of a public utility or public utility district suspended above the ground other facilities from the same pole.

With respect to any cables, wires and other like facilities constructed and installed by a licensee above ground, except as otherwise expressly provided by law, the licensee shall, at its sole expense, reconstruct and reinstall such cables, wires or other facilities underground pursuant to any project under which the cables, wires or other like facilities of such utilities are placed underground within an area. The duty of a licensee to underground shall arise only if all existing aboveground like facilities of such utilities are placed underground. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.322 Relocation.

If during the term of a license the county, cities, a public utility district, a public water district, a public sanitation district, a public drainage district or any other similar special public district elects to alter, repair, realign, abandon, improve, vacate, reroute or change the grade of any street or to replace, repair, install, maintain, or otherwise alter any aboveground or underground cable, wire conduit, pipe, line, pole, wire-holding structure, structure, or other facility utilized for the provision of utility or other services or transportation of drainage, sewage or other liquids, the licensee shall, except as otherwise hereinafter provided, at its sole expense remove or relocate as necessary its poles, wires, cables, underground conduits, manholes and any other facilities which it has installed. If such removal or relocation is required within a subdivision in which all utility lines, including those for the cable television system, were installed at the same time, except as otherwise expressly provided by law, the entities may decide among themselves who is to bear the cost of relocation; provided, that neither the cities nor county shall be liable to a licensee for such costs. Regardless of who bears the costs, a licensee shall take action to remove or relocate at such time or times as are directed by the agency or company undertaking the work. Reasonably advance written notice shall be mailed to the licensee advising the licensee of the date or dates removal or relocation is to be undertaken. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.324 Tree trimming.

The licensee shall not remove or trim, and shall prohibit any officer, agent, employee, contractor or subcontractor which it retains from removing or trimming, any tree or portion thereof (either above, at or below ground level), which is located within a street without the prior written approval of the director of public works of the county or city in which the street is located. Such consent may be given or withheld upon such terms and conditions as the director of public works deems appropriate. Each licensee shall be responsible for and shall indemnify, defend and hold harmless the county, cities, cable television commission, and their officers, agents and employees from and against any and all damages arising out of or resulting from the removal, trimming, mutilation of or any injury to any tree or trees proximately caused by the license or its officers, agents, employees, contractors or subcontractors. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.326 Movement of buildings.

Each licensee shall, upon request by any person holding a building moving permit, license or other approval issued by the county, cities or state of California, temporarily remove, raise or lower its wires to permit the movement of buildings. The expense of such removal, raising or lowering shall be paid by the person requesting same, and a licensee shall be authorized to require such payment in advance. A licensee shall be given not less than 48 hours’ oral or written notice to arrange for such temporary wire changes. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.328 Removal.

Upon expiration or termination of a license, if the license is not renewed and if neither the cable television commission nor an assignee purchase the cable television system, the licensee may remove any underground cable from the streets which has been installed in such a manner that it can be removed without trenching or other opening of the streets along the extension of cable to be removed. The licensee shall not remove any underground cable or conduit which requires trenching or other opening of the streets along the extension of cable to be removed, except as hereinafter provided. The licensee shall remove, at its sole cost and expense, any underground cable or conduit by trenching or opening of the streets along the extension thereof or otherwise which is ordered to be removed by the board of directors of the cable television commission based upon a determination, in the sole discretion of the board, that removal is required in order to eliminate or prevent a hazardous condition or promote future utilization of the streets for public purposes. Any order by the board of directors to remove cable or conduit shall be mailed to the licensee not later than 30 calendar days following the date of expiration of the license. A licensee shall file written notice with the clerk of the board of directors not later than 30 calendar days following the date of expiration or termination of the license of its intention to remove cable intended to be removed and a schedule for removal by location. The schedule and timing of removal shall be subject to approval and regulation by the director of public works of the county and cities with jurisdiction over the streets from which cable is to be removed. Removal shall be completed not later than 12 months following the date of expiration or termination of the license. Underground cable and conduit in the streets which is not removed shall be deemed abandoned and title thereto shall be vested in the cities and county within whose jurisdiction the cable or conduit is situated.

Upon expiration or termination of a license, if the license is not renewed and if neither the commission nor an assignee purchase the system, the licensee, at its sole expense, shall, unless relieved of the obligation by the county or cities, remove from the streets all aboveground elements of the cable television system, including but not limited to amplifier boxes, pedestal-mounted terminal boxes, and cable attached to or suspended from poles, which are not purchased by the commission or its assignee.

The licensee shall apply for and obtain such encroachment permits, licenses, authorizations or other approvals and pay such fees and deposit such security as required by applicable ordinance of the county or cities in which the streets are located, shall conduct and complete the work of removal in compliance with all such applicable ordinances, and shall restore the streets to the same condition they were in before the work of removal commenced. The work of removal shall be completed not later than one year following the date of expiration of the license. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.330 Enforcement.

Any director of public works of the county or cities who determines that within his jurisdiction a licensee has committed an act or omission in violation of any of the provisions of RCMC 5.75.312 through 5.75.328 shall be authorized to mail written notice of the violation to the licensee.

Not later than seven calendar days following the mailing of such notice, the licensee shall be authorized to file an appeal with the clerk of the governing body of the county or cities by whom the director of public works is employed. The licensee shall also file a copy of the notice in the office of the director of public works. The governing body shall hear the appeal, and shall be authorized to do so at its earliest convenience. The licensee shall be authorized to present oral and documentary evidence and cross-examine witnesses. Formal rules of evidence shall not be applicable.

If no appeal is filed and within 10 calendar days following mailing of the notice the licensee has failed to correct the violation, or if an appeal is filed and within five calendar days following mailing to the licensee of an order by the governing body the licensee has failed to correct the violation through assignment of such task to his or her subordinate personnel or delegation of authority to take such corrective action to a public utility, public district, contract or other third party. In such event, the licensee shall be liable for the full amount of any charges made for such corrective action, any salary and benefit costs of any public employees assigned to take such corrective action, and the costs of material, supplies and goods utilized in taking such corrective action.

The provisions of this section shall not be construed to fix the date of a breach by a licensee of any of the provisions of this chapter at the prescribed period following mailing of the notice of violation, or to prevent a determination that a licensee has breached any of said sections in advance either of the 10 days following the mailed notice or in advance of mailing of the notice or any communication pursuant to this section to the licensee. Nor shall the provisions of this section be so construed as to relieve the licensee from liability for any damages which may arise out of and be proximately caused breach by a licensee of any of the provisions of said provisions. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

Article V. Services

5.75.400 System ownership.

Legal and equitable title to the cable television system, including any and all facilities and equipment provided for public, educational, and governmental access, and all channels of whatever kind or nature shall be vested in the licensee. The foregoing sentence shall not be construed to preclude the lease, without more, by a licensee of the right to use electromagnetic spectrum space from a public entity which owns such a right. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.401 Leasing of equipment comprising system.

Notwithstanding the provisions of RCMC 5.75.400, a licensee may lease any antennas, cables, wires, lines, towers, waveguides, or other conductors, converters, amplifiers, headend equipment, master controls, earth stations, equipment and facilities (“equipment”), and/or may lease the use of such equipment, comprising the cable television system from others; provided, that the lease relationship meets all of the following requirements:

A. The lease relationship shall be reflected fully in a written document (“lease”) which shall be executed by lessor and lessee and a copy of which shall be filed with the commission at the inception of the lease;

B. The lease shall expressly acknowledge that, so long as the leased equipment shall be utilized in connection with the cable television system, the lease, the equipment, and any payments by the lessee therefor shall be subject to the provisions of this chapter;

C. The lessor under the lease shall be an additional named insured on all of the insurance provided by the licensee pursuant to RCMC 5.75.604;

D. The lease shall expressly reflect and acknowledge that the lessor, or with the prior written approval of the cable television commission the licensee, does assume and agree to be bound by the provisions of RCMC 5.75.602 with respect to the equipment; and

E. The lessor under the lease shall expressly assume and agree to undertake the obligations and duties under RCMC 5.75.328 to the extent not otherwise discharged by the licensee as to equipment in the streets. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989].

5.75.402 Services.

Services provided by a licensee through its cable television system shall be offered uniformly upon nondiscriminatory terms to subscribers and users, and shall not differ based upon geographical location, income levels, racial or ethnic composition. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.404 Subscriber antennas.

No licensee shall remove or offer to remove any potential or existing subscriber antenna, or provide any inducement for removal as a condition respecting the provision of service. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.406 Anticompetitive practices.

No license issued pursuant to the provisions of this chapter shall be deemed to expressly or impliedly authorize the licensee to utilize its cable television system to provide any service in such a manner as to unlawfully damage any business competitor or other third party or violate any statutes or regulations of the United States or state of California. Nor shall any licensee, by act or omission, engage in any anticompetitive practice in violation of any statutes or regulations of the United States or state of California. The provisions of this section shall be enforceable in courts of competent jurisdiction against a licensee by any party who alleges injury as a result of an alleged violation thereof. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.410 Discrimination in service prohibited.

No license shall deny service, deny access or otherwise discriminate against subscribers, channel users or general citizens on the basis of race, color, religion, national origin or sex. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.412 Privacy.

Each licensee, and its officers, agents, employees, contractors and subcontractors, shall respect, refrain from invading, and take affirmative action to prevent violation of the privacy of subscribers served by the cable television system and others.

A. Neither the licensee nor any other person, agency, or entity shall tap, or arrange for the tapping or monitoring of, any cable, line, signal input device, or subscriber outlet or receiver for any purpose whatsoever, except that the licensee may conduct tests of the functioning of the system where necessary in order to ensure proper maintenance of the system and to collect performance data for agencies regulating the quality of signals, and the licensee may conduct systemwide or individually addressed “sweeps” for the sole purpose of verifying system integrity (including individual security system integrity), controlling return path transmissions, billing for pay services, or collecting aggregate data on viewing patterns by channel. “Tapping” shall mean observing a communications signal exchange where the observer is neither of the communicating parties, whether the exchange is observed by visual, aural or electronic means, for any purpose whatsoever. The provision of interactive services shall not be construed to be “tapping” or “monitoring” under this subsection.

B. The licensee shall not place in any private residence or in any institution any equipment capable of two-way communications without the written consent of the subscriber, and shall not utilize the two-way communications capability of the system for subscriber surveillance of any kind without the written consent of the subscriber specifying how the data collected will be used and by whom. Tenants who occupy premises connected by the system shall be deemed to be subscribers within the meaning of this subsection regardless of who actually pays for the service. The written consents shall be, and shall show on their face that they are, revocable by the subscriber at any time by written communication mailed by the subscriber to the licensee. No penalty shall be invoked for a subscriber’s failure to provide a written consent or for his or her revocation thereof, and all written consents shall so state on their face. The licensee shall not make such written consent a condition precedent to receipt by a subscriber of noninteractive service. The provisions of this subsection shall not be deemed to require consent as a condition precedent to systemwide or individually addressed “sweeps” for the sole purpose of verifying system integrity, controlling return-path transmissions, billing for pay services, or collecting aggregate data on viewing patterns by channel.

C. No cable, line, wire, amplifier, converter, or other piece of equipment associated with cable television system services shall be attached to any residence or other property of a citizen (except within streets) without first securing the written permission of the owner or tenant of the property. If such permission is later lawfully revoked, whether by the original or subsequent owner or tenant, the licensee shall remove forthwith all of the equipment and promptly restore the property to its original condition. The licensee shall perform all installations in a workmanlike manner and shall be responsible for any damage to residences or other property caused by the installation.

D. No licensee or officer, agent or employee thereof shall sell, or otherwise make available, lists of the names and addresses of its subscribers, or any list which identifies, by name or otherwise, individual subscriber viewing habits, to any person, agency, or entity for any purpose whatsoever except that the licensee shall, upon request, provide lists of names and addresses of its subscribers to authorized representatives of the cable television commission when the board of directors of the commission deems such information necessary for performance of the regulatory functions of the commission. Names and addresses of subscribers within the possession of the commission shall not be subject to public inspection or review.

E. A licensee may release the number of subscribers but only as a total number and as a percentage of the potential subscribers within the license area. When indicating the number of subscribers viewing a particular channel, a licensee shall indicate only the total number of subscribers viewing during the relevant time and the percentage of all subscribers which they represent, but not the identity of any subscriber.

F. No polls or other two-way responses of subscribers shall be conducted, whether for commercial purposes, in connection with community use, or otherwise unless the program of which the poll is a part contains an explicit disclosure of the nature, purpose, and prospective use of the results of the poll. The licensee shall supervise and monitor all polls in which responses are received through the cable television system, and shall adopt and enforce measures which ensure that personally identifiable information concerning a subscriber, including his or her viewing habits and response or responses to the inquiry or inquiries, is not received by any third party, including the party sponsoring the poll.

G. A licensee shall not tabulate any test results, nor permit the use of the system for such tabulation, which would reveal the commercial product preferences or opinions of individual subscribers, members of their families or their invitees, licensees or employees, without advance written authorization by the subscriber. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.416 Affirmative action.

No licensee shall discriminate in employment or selection of contractors or subcontractors on the basis of race, color, religion, national origin or sex (including marital status). Each licensee shall strictly comply with the Equal Employment Opportunity Regulations promulgated by the FCC, and all applicable federal and state statutes and regulations and ordinances of the county and cities. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.418 Commission powers.

Except as otherwise expressly provided herein, the board of directors of the cable television commission shall be authorized to regulate all cable television operations and services provided by a licensee for the purpose of promoting and protecting the public convenience, health, safety and welfare. The board of directors of the commission may exercise regulatory powers conferred herein by the enactment, from time to time, of rules and regulations, after a public hearing by the board or an advisory committee appointed by the board, notice of which is given in the manner prescribed by RCMC 5.75.020. The rule-making powers of the board of directors shall include, but not be limited to, the authority to interpret, clarify, make specific and apply the provisions of this chapter and to enact rules and regulations which impose specific duties or prohibitions for the purpose of implementing the duties, responsibilities and restrictions set forth in this chapter or such duties, responsibilities and restrictions as may be authorized to be imposed by such future state or federal enactments as may, from time to time, occur. The foregoing shall include, but not be limited to, consumer protection regulations and, to the extent now or hereafter allowed by state and federal law, rate regulation. Each licensee shall comply with all such rules and regulations. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0819 § 1, 1991].

Article VI. License Fees

5.75.500 License fees.

For the use of the streets, each licensee shall pay license fees in the amount prescribed by RCMC 5.75.502. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.502 Amount and payment of license fees.

During the term of each license, each licensee shall pay to the cable television commission an amount equal to five percent per year of the licensee’s annual gross revenue.

Said fees shall be paid quarterly not later than August 1st, November 1st, February 1st, and May 1st for the preceding three-month period ending, respectively, June 30th, September 30th, December 31st and March 31st. Not later than the date of each payment, each licensee shall file with the clerk of the board of directors of the cable television commission and with the governing bodies of the county and cities a written statement signed under penalty of perjury by an officer of the licensee which identifies in detail the sources and amounts of gross revenues received by a licensee during the quarter for which payment is made.

No acceptance of any payment shall be construed as an accord that the amount paid is, in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim which the commission may have for further or additional sums payable under the provisions of this section. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.504 Interest on delinquent license fees.

Any license fees which remain unpaid after the dates specified in RCMC 5.75.502 shall be delinquent and shall thereafter accrue interest at the maximum legal rate until paid. As used in this section, the maximum legal rate shall be that rate set forth in Section 685.010 of the California Code of Civil Procedure, as amended from time to time, or any successor California statute establishing the rate interest accrues for money judgments. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 1225 § 5, 2002: SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.506 Accounting standards.

Not less than annually, the licensee shall provide the cable television commission with an unqualified certification of an independent certified public accountant certifying the accuracy of the quarterly license fee payments paid within the preceding 12 months pursuant to RCMC 5.75.502. Said certification shall be prepared in accordance with generally accepted accounting standards as established by the Financial Accounting Standards Board (FASB). [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.508 Gross revenue calculations.

A. For purposes of the gross revenue calculations required by RCMC 5.75.502, the phrase “financial interest” as used in the definition of “gross revenues” in RCMC 5.75.012 shall include but not be limited to:

1. Any contract in which the licensee or any named owner thereof is to receive a percentage of the gross revenues and/or a percentage of the net income of the other party to the transaction by reason of the activities encompassed by said contract;

2. Any debt relationship in which the licensee or any named owner thereof as debtor borrows funds at a rate more advantageous than that generally available to similarly situated entities of similar credit worthiness;

3. Any debt relationship in which the licensee or any named owner thereof as creditor receives a rate of interest exceeding that which would otherwise be paid by a similarly situated debtor of similar credit worthiness;

4. Any option or warrant to purchase the stock or other equity interest in an entity or entity related to an entity which generates revenues arising from or attributable to the operation of the system;

5. Any debt relationship which has conversion privileges to a form of equity of the nature described in subsection (A)(5) of this section.

B. For purposes of the gross revenue calculation required by RCMC 5.75.502, the phrase “arising from or attributable to operation of the cable television system” as used in the definition of “gross revenues” in RCMC 5.75.012 shall include but not be limited to:

1. Any activity, product or service which generates revenue of any type whatsoever and which is offered to the subscribers of the system by means of the system or any related service;

2. Any activity, product or service which is revenue-producing and is offered to the subscribers of the system by any medium other than the system including but not limited to direct mail and home delivery if the system’s subscriber list or any portion thereof is utilized for purposes of solicitation;

3. Any activity, product or service in the production or provision of which any of the assets of the system including but not limited to cable, production facilities, and administrative facilities are included, unless reasonable consideration is paid to the system for such utilization;

4. Any television programming or other services offered to the citizens of Sacramento County within the term of the license by any means of delivery whatsoever where such programming or services are or could be offered by means of the system. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.510 Auditing and financial records.

The auditor of the cable television commission may, from time to time during the term of a license, prescribe standards governing the nature, extent and type of accounting system and accounting procedures utilized by a licensee and require changes in accounting standards or procedures utilized by a licensee, for the purpose of promoting the efficient administration of the license fee requirements of this chapter. Any such standards shall be in writing, shall be filed with the clerk of the board of directors of the commission, and shall be mailed to the licensee to whom directed. A licensee shall promptly comply with all such standards.

During the term of each license, the cable television commission may, not more frequently than once each year, conduct an audit of the books, records and accounts of the licensee for the purpose of determining whether the licensee has paid license fees in the amounts prescribed by RCMC 5.75.502. The audit may be conducted by the auditor of the commission or by an independent certified public accounting firm retained by the commission, and shall be conducted at the sole expense of the commission. The party conducting the audit shall prepare a written report containing its findings, and the report shall be filed with the clerk of the board of directors of the commission, and mailed to the county, cities and licensee. Each licensee shall make available for inspection by authorized representatives of the cable television commission, its books, accounts, and all other financial records at reasonable times and upon reasonable advance notice for the purpose of permitting exercise of the authorities conferred by this section. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

Article VII. Bonds and Insurance

5.75.600 Performance bond.

Each licensee shall file with the commission and, at all times thereafter until the determination by the commission after request by a licensee that the licensee has fully completed construction and made service available to each dwelling unit within the license area, maintain in full force and effect, an acceptable corporate surety bond issued by a surety licensed therefor by the state of California in an amount equal to the greater of (A) the licensee’s estimate of the total cost of construction of the cable television system within the license area, or (B) the sum of (1) the product of the number of miles of aerial plant (to the nearest one-tenth of a mile) in the license area and $18,000; and (2) the product of the number of miles of underground plant (to the nearest one-tenth of a mile) in the license area and $32,000, effective for the entire term of the license, and conditioned that in the event the licensee shall fail to comply with any one or more of the provisions of the license documents, whether or not the license is terminated, then there shall be recoverable jointly and severally from the principal and surety of such bond, any damages suffered by the county, cities or cable television commission as a result thereof, including, but not limited to, the full amount of any liquidated damages, delinquent license fees, compensation and costs of repairing or completing the cable television system, and compensation, and cost of removal or abandonment of property and repair of streets and other public or private improvements, up to the full amount of the bond; said condition to be a continuing obligation for the duration of the license and thereafter until the licensee has satisfied all of its obligations which may have arisen from the acceptance of the license or from its exercise of any privileges thereunder.

Upon the determination by the commission after request by a licensee that the licensee has fully completed construction and made service available to each dwelling unit within the license area, the amount of the aforesaid corporate surety bond shall be reduced to an amount equal to $50.00 for each dwelling unit located within the license area upon the date of the notice of final completion and maintained at such an amount at all times thereafter during the operation of the cable television system.

Neither the provisions of this section, any bond accepted pursuant thereto, nor any damages recovered thereunder shall be construed to excuse faithful performance by the licensee or to limit the liability of the licensee under the license or for damages, either to the full amount of the bond or otherwise. The bond shall contain a provision which prohibits cancellation by the surety during the term of the license, whether for failure to pay a premium or otherwise, without 30 calendar days’ advance written notice mailed by the surety to the clerk of the board of directors of the cable television commission. The form of the bond and surety shall be subject to the approval by the cable television commission.

The performance bond for any license area (including an alternate performance bond comporting with the provisions of RCMC 5.75.601) shall be deposited with the commission prior to the construction of any portion of a cable television system within, upon, or above the streets; provided, that conduit and attendant vaults, without other appurtenances of a cable television system, may be installed, at the same time other utilities are so installed, in joint utility trenches in new residential subdivisions prior to the posting of the performance bond. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0820 § 1, 1991; SCC 786 § 1, 1989; SCC 690 §1, 1987].

5.75.601 Alternative bonding and security.

In lieu of a performance bond in the amounts required by the provisions of RCMC 5.75.600, a licensee may elect and provide a performance bond otherwise comporting with the requirements of RCMC 5.75.600 in the amount of $2,500,000 for the entire period of the term of a license. Upon the proper posting of such alternative bond, the commission shall return performance bonds previously provided for such license or licenses pursuant to the provisions of this chapter. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 753 § 1, 1989].

5.75.602 Indemnification.

A. Each licensee shall defend, indemnify and hold harmless the commission, its members, and, in their capacity as such, the officials, agents, employees, representatives and volunteers thereof, from any and all claims, demands, suits, causes of action, damages, costs, expense, losses or liability, in law or in equity, of every kind and nature whatsoever (“claims”), arising out of or in connection with the licensee’s operations under this chapter including but not limited to:

1. Injury or death to persons including, but not limited to, licensee’s officers, agents, contractors or employees, or damage to property, including loss of use, caused or alleged to be caused in whole or in part by any act or omission of the licensee, its officers, agents, contractors, employees, or representatives or anyone for whose acts the licensee may be liable.

2. Injury or damage arising out of invasion of the right of privacy, libel, slander, defamation of any person, firm or corporation, or the violation or infringement of any copyright patent, service mark, trademark, trade name, or of any other right of any person, firm or corporation.

3. Injury or damage arising out of anticompetitive practices alleged against the licensee.

4. Claims, damages or penalties arising out of the licensee’s failure to comply with the provisions of any statute, regulation or ordinance of the United States, state of California or any local agency applicable to the licensee in its business.

5. Injury or damage arising out of the licensee’s failure to comply with the provisions of this chapter relating to procurement and maintenance of insurance.

6. Injury or damage arising out of the licensee’s failure to fulfill any of the covenants set forth in this chapter.

B. The licensee shall pay and satisfy any judgment or decree that may be rendered against the commission, its members, their officials, agents, employees, volunteers or representatives, or any of them arising out of any such claims.

C. The licensee shall reimburse the commission, its members, their officials, agents, employees, volunteers or representatives, for any and all legal expense incurred by any of them in connection herewith or in enforcing the indemnity granted in this section.

D. Indemnitees may, at their discretion, participate in the investigation and defense of any claims or litigation brought against them at any time, using legal counsel of their choice, and such expense shall be borne solely by the licensee. Such participation shall not relieve the licensee from its duty to defend, indemnify and hold harmless indemnitees as set forth in this section.

E. The indemnification obligations of the licensee set forth in this section shall apply regardless of any act or omission of the commission, its members, their officials, agents, employees, representatives or volunteers which may have contributed to the said injury or damage, to the maximum extent allowed by California law. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 1096 § 6, 1997; SCC 786 § 1, 1989; SCC 690 §1, 1987].

5.75.604 Insurance.

Each licensee shall file with the application which it files pursuant to the provision of RCMC 5.75.102, and at all times thereafter maintain in full force and effect at its sole expense, the following insurance:

A. General Liability. General liability insurance including, but not limited to, protection for claims of bodily injury and property damage liability, personal and advertising injury liability, and products and completed operations liability. Coverage shall be at least as broad as Insurance Services Office commercial general liability coverage form GG 0001 (occurrence). The limits of liability shall be not less than:

1. Each occurrence: $1,000,000;

2. Personal and advertising injury: $1,000,000;

3. General aggregate: $2,000,000;

4. Products and complete operations aggregate: $2,000,000.

The policy shall cover contractual liability applicable to the licensee’s assumed liability under this contract.

B. Automobile Liability. Automobile liability insurance providing protection against claims of bodily injury and property damage arising out of ownership, operation, maintenance, or use of owned, hired, and nonowned automobiles. Coverage shall be at least as broad as Insurance Services Office automobile liability coverage form CA 0001, symbol 1 (any auto). The limits of liability shall not be less than:

1. Bodily injury and property damage combined single limit: $1,000,000.

If general liability coverage as required in subsection (A) of this section is provided by the commercial general liability form, the automobile liability policy shall include an endorsement providing automobile contractual liability.

C. Workers’ Compensation. Workers’ compensation insurance, with coverage as required by the state of California (unless the licensee is a qualified self-insurer with the state of California), and employers liability coverage. The limits of employers liability shall not be less than:

1. Each accident: $1,000,000;

2. Disease, each employee: $1,000,000;

3. Disease, policy limit: $1,000,000.

D. Excess or Umbrella Liability. Excess or umbrella liability providing excess coverage at least as broad as the underlying coverage for general liability, automobile liability and employers liability with a limit of $4,000,000 per occurrence and in the aggregate.

E. The licensee’s general liability, automobile liability, and excess or umbrella liability policies shall contain the following:

1. The commission, its members, their officials, agents, employees, representatives and volunteers shall be covered as additional insureds as respects liability arising out of the activities performed by or on behalf of the licensee, products and completed operations of the licensee, premises owned, occupied, or used by the licensee, or automobiles owned, leased, hired, or borrowed by the licensee.

2. The licensee’s insurance coverage shall be primary insurance as respects the commission, its members, their officials, agents, employees, representatives or volunteers. Any insurance or self-insurance maintained by the commission, its members, their officials, agents, employees, representatives or volunteers shall be in excess of the licensee’s insurance and shall not contribute with it.

3. Any failure to comply with reporting or other provisions of the policies on the part of the licensee, including breaches of warranties or unintentional misrepresentations, shall not affect coverage provided to the commission, its members, their officials, agents, employees, representatives or volunteers.

4. The licensee’s workers’ compensation and employer’s liability policies shall contain an endorsement that waives any rights or subrogation against the commission, its members, their officials, agents, employees, representatives or volunteers.

5. Each insurance policy shall state that coverage shall not be suspended, voided, canceled by either party, reduced in scope or in limits, nonrenewed, or materially changed unless the insurer provides 30 days’ advance written notice by certified mail to the clerk of the board of directors of the Sacramento Metropolitan Cable Television Commission, 700 H Street, Room 2450, Sacramento, California 95814, prior to such change. The insurer shall provide 10 days’ advance written notice by certified mail to the clerk of the board of directors of the Sacramento metropolitan cable television commission in the event of cancellation due to nonpayment of premium.

6. All of the licensee’s insurance coverage, except as noted below, shall be placed with insurance companies with a current A.M. Best’s rating of at least A-:VII. Exceptions:

a. Underwriters at Lloyd’s of London;

b. Workers’ compensation which is provided through a State Compensation Insurance Fund;

c. Licensee’s qualified workers’ compensation self-insurance under California law.

7. The commission will accept the licensee’s self-insurance of its general or automobile liability risks only if the licensee has a minimum net worth of at least $10,000,000.

8. The licensee shall furnish the commission with certificates of insurance, including copies of all endorsements specifically required hereunder, signed by a person authorized by the insurer to bind coverage on its behalf, as evidence of the coverage required by this section.

9. For unforeseen risks, the commission, at its discretion, may increase the amounts and types of insurance coverage required hereunder at any time during the term of the contract by giving written notice to the licensee. The licensee shall immediately procure such insurance or increase the amounts of insurance coverage, and provide certificates of insurance as required in subsection (E)(8) of this section.

10. The form and substance of the insurance required of the licensee shall be subject to the approval of the commission and the county of Sacramento risk manager. Any acceptance of insurance certificates by the commission or the county of Sacramento risk manager shall in no way limit or relieve the licensee of the licensee’s duties and responsibilities set forth in this chapter.

11. The failure of the commission to enforce in a timely manner any of the provisions of this section shall not act as a waiver to enforcement of any of these provisions at any time during the term of the license. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 1096 § 7, 1997; SCC 0820 § 2, 1991; SCC 786 § 1, 1989; SCC 690 §1, 1987].

5.75.606 Waiver of subrogation.

Each licensee shall cause each insurance policy obtained by it to provide that the insurance company waives all right of recovery by way of subrogation against the county, cities, cable television commission and in their capacities as such the officers, agents, and employees thereof in connection with any damage covered by any policy, whether for nonpayment of premium or otherwise, and whether at the request of the licensee or for other reasons, except after 30 calendar days’ advance written notice mailed by the insurer to the clerk of the board of directors of the Sacramento metropolitan cable television commission, and that such notice shall be transmitted postage prepaid, with return receipt requested, and addressed to the clerk at 1010 8th Street, Sacramento, California 95814. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 753 § 11, 1989; SCC 690 §1, 1987].

Article VIII. Transfer and Termination

5.75.700 Transfers prohibited.

A. Except as otherwise expressly provided in this chapter, no part or element of a cable television system or any other real or personal property which is a part of said cable television system shall be sold, transferred, assigned, mortgaged, pledged, leased, sublet or otherwise encumbered for any purpose whatsoever, nor shall title thereto, either legal or equitable, or any right or interest therein pass to or vest in any party, nor shall there be any transfer or change of control of the licensee without the prior written consent of the cable television commission. Such consent of the commission shall not be unreasonably withheld.

A license issued pursuant to the provisions of this chapter shall not either in whole or in part be sold, transferred, assigned, mortgaged, pledged, leased, sublet, or otherwise encumbered for any purpose whatsoever; nor shall title thereto, either legal or equitable, or any right or interest therein, pass to or vest in any party without the prior written consent of the cable television commission. Such consent of the commission shall not be unreasonably withheld.

Any such sale, transfer, assignment, mortgage, pledge, lease, sublease or other encumbrance of whatever kind or nature made in violation of the provisions of this section shall be void.

B. As used in this section, “transfer or change of control” shall mean the acquisition of sufficient dominance to determine the operational and financial policies of the licensee, including but not limited to the disposition of its assets. The word “control” as used in this section is not limited to major stockholders or financial interests but also includes actual working control in whatever manner exercised and includes, but is not limited to:

1. The acquisition or accumulation by any party or association of parties of 10 percent or more of the voting shares or stock of the licensee or named owner of the licensee;

2. A change in general partners of a licensee or named owner of the licensee; or

3. A merger or consolidation of the licensee or named owner of the licensee. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 1225 § 6, 2002: SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.702 Crimes.

Violation of the provisions of RCMC 5.75.412 shall constitute a misdemeanor. With the foregoing exception, violation of the provisions of this chapter shall not constitute a misdemeanor, infraction or other crime. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.704 Termination of license.

The following material breaches of the obligation of a licensee under the license shall constitute grounds for termination of a license by the cable television commission:

A. Any violation of RCMC 5.75.700;

B. The failure to make any disclosure of fact within the application for the license which is required by this chapter, or the misrepresentation of such a fact in the application;

C. The willful failure to make any payments required by RCMC 5.75.502; or

D. Any other act or omission by the licensee which materially violates the terms, conditions or requirements of this chapter or any order, directive, rule or regulation issued thereunder and which is not corrected or remedied within 30 calendar days following mailing to the licensee of written notice of the violation. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.706 Commencement of termination proceedings.

The board of directors of the cable television commission shall not determine that a license shall be terminated upon grounds identified by RCMC 5.75.704 until a hearing has been conducted upon the matter. Written notice of the time, date and place of the hearing shall be mailed to the licensee and the licensee’s surety on the performance bond filed pursuant to RCMC 5.75.600 or pursuant to RCMC 5.75.601, not later than 30 calendar days in advance of the date of commencement of the hearing. The notice shall state the reasons for the hearing, describe the basis for termination, and identify the terms, conditions or requirements with respect to which the breach has occurred.

The hearing may be conducted either by the board of directors of the commission or, at the sole discretion of the board, by a hearing officer appointed by the board to conduct the hearing. Any such hearing officer shall be an attorney licensed to practice under the laws of the state of California.

The cost of providing quarters for the hearing, the compensation for the hearing officer, if any, and the per diem cost of any reporter retained to record the proceedings shall be borne by the cable television commission. The costs incurred by the parties for attorneys’ fees, expert witness fees and other expenses shall be borne solely by the party incurring the costs. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.708 Conduct of hearing.

A. All witnesses testifying at the hearing concerning termination shall be sworn. Witnesses shall be subject to direct and cross examination. However, formal rules of evidence applicable to the trial of civil or criminal proceedings in the trial courts of this state shall not be applicable to the hearing. The provisions of the Administrative Procedure Act, commencing at Section 11500 of the California Government Code, or any successor legislative enactment shall not be applicable to any such hearing. The hearing may be continued from time to time.

B. If the hearing is conducted by a hearing officer, the officer shall, upon conclusion of the hearing, prepare a recommended decision which includes findings of fact and conclusions. The recommended decision shall be filed with the clerk of the board of directors of the commission and mailed to the parties not later than 30 calendar days after conclusion of the hearing. Upon receipt of such a recommended decision, the board of directors may, without a hearing except as otherwise required below, either:

1. Adopt the recommended decision, including findings of fact and conclusions submitted by the hearing officer;

2. Adopt the findings of fact and conclusions contained in the recommended decision, modify the decision, and adopt the recommended decision as so revised;

3. Based upon the record of the hearing, modify the findings of fact, conclusions or decisions, and adopt the recommended decision as so revised; or

4. Reject the recommended decision and conduct a new hearing.

C. If the hearing is conducted by the board of directors of the commission, upon conclusion of the hearing the board of directors shall adopt a decision which includes findings of fact and conclusions.

D. If the decision by the board of directors is that there are grounds for termination of the license and that the license shall be terminated, the board shall adopt a resolution which terminates the license and includes its decision. The effective date of termination shall be such date as is prescribed by the board of directors, within its sole discretion, in the resolution. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.710 Alternative remedies.

No provision of this chapter shall be deemed to bar the right of the county, cities or cable television commission to seek or obtain judicial relief from a violation of any provision of the license documents or any rule, regulation, requirement or directive promulgated thereunder. Neither the existence of other remedies identified in this chapter nor the exercise thereof shall be deemed to bar or otherwise limit the right of the county, cities or cable television commission to recover monetary damages (except where liquidated damages are otherwise prescribed) for such violation by the licensee, or judicial enforcement of the licensee’s obligations by means of specific performance, injunction relief or mandate, or any other judicial remedy at law or in equity.

No provision of this chapter shall be deemed to affect the right otherwise existing in law, if any, of a licensee to seek or obtain judicial relief from the enforcement of any provision of this chapter or any rule, regulation, requirement or directive promulgated thereunder, nor shall any provision of this chapter be construed to create such a right. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

5.75.712 Nonenforcement.

A licensee shall not be relieved of any obligation to comply with any of the provisions of the license documents or any rule, regulation, requirement or directive promulgated thereunder by reason of any failure of the county, cities, cable television commission or their officers, agents or employees to enforce prompt compliance. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 786 § 1, 1989; SCC 690 § 1, 1987].

Article IX. Video Customer Service Act

5.75.800 Delegation of powers.

Except as otherwise expressly provided in any franchise issued by the county pursuant to its reserved powers under RCMC 5.50.042, all powers, rights, duties and obligations of the county pursuant to the provisions of Article 4.5 (commencing with Section 53088) of Chapter 1 of Division 2 of Title 5 of the California Government Code (hereinafter the “Video Customer Service Act”), as it now exists or should hereafter be amended, are hereby delegated to and conferred upon the board of directors of the cable television commission as to any video provider included within the scope of its provisions, including without limitation those video providers who have received, or hereafter receive, a license issued by the commission pursuant to this chapter. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0943 § 2, 1993].

5.75.802 Monetary penalties.

The maximum monetary penalties set forth in Section 53088.2(r) of the Government Code are hereby adopted and enacted as the applicable schedule of penalties for the material breach by a video provider of the provisions of Section 53088.1 of the Government Code, as it now exists or should hereafter be amended, within the jurisdiction of the county. Subject to the procedures required by Section 53088.2(p) of the Government Code, the board of directors of the commission is authorized to impose monetary penalties up to the maximum amounts so specified and subject to the terms thereof; provided, that the schedule of penalties hereby adopted shall not be deemed to reduce or delimit any other or additional penalties which the commission may otherwise be authorized to impose under law. [Ord. 38-2007 § 1 (Exh. 1(D)); Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0943 § 2, 1993].