ARTICLE III. CABLE TELEVISION1
30-86 Short title.
This chapter shall be known as the “City of Pontiac Cable Television Ordinance” and may be cited as such.
(Ord. No. 2101, § 1, 10-14-99)
30-87 Purpose.
The purpose of this chapter is to provide fair regulation of cable television service in the city in the interest of the public; to promote and encourage adequate, economical and efficient cable service to the residents of the city; to promote and encourage harmony between cable companies and their subscribers and to provide for the furnishing of cable system service to the residents of the city without unjust discrimination, undue preferences or advantages.
(Ord. No. 2101, § 1, 10-14-99)
30-88 Definitions.
The following words, when used in this chapter, shall have the following meanings, unless otherwise clearly apparent from the context:
Cable television company means any person who owns, controls, operates or manages a cable system for the purpose of providing cable service to members of the public located in the city. Such definition shall not include:
(1) A telephone, telegraph or electric utility in a case where it merely leases or rents to a cable company utility pole contact space for the placing thereon of wire or cable facilities used in the distribution of television or other signals to the subscribers of such cable company.
(2) A telephone or telegraph utility regulated by the Michigan Public Service Commission or Federal Communications Commission in a case where it merely provides communication channel service under published tariffs to a cable company for the distribution of television signals to the subscribers of such company.
Cable service means:
(1) The one-way transmission to subscribers of (i) video programming, or (ii) other programming service, and
(2) Subscriber interaction or use, if any, which is required for the selection of such video programming or other programming service.
Cable system means a facility, consisting of a set of closed transmission paths and associated signal generation reception, and control equipment that is designed to provide cable service by receiving through any means, including, without limitation, coaxial cable, optical fiber, antenna, or satellite or microwave transmission, and distributing video, audio, voice, or data signals, whether originating within the franchise area or elsewhere.
(Ord. No. 2101, § 1, 10-14-99)
30-89 Franchise required.
(a) Construction of system. No person shall construct, install, maintain or operate a cable system in the city nor shall any person provide a cable service or acquire ownership or control of a cable company in the city without such person having first obtained a franchise therefor from the city in the form of a franchise agreement between the city and the franchisee, which franchise agreement shall include, at a minimum, compliance with the specifications of this chapter.
(b) Use of streets. No person shall use, occupy or traverse the streets, alleys, lanes, avenues, boulevards, sidewalks, bridges, viaducts, rights-of-way or any other public place or public way in the city or any extensions or additions whether on, above, or under the surface of the ground, for the purposes of installing, constructing, maintaining or operating a cable system or facilities therefor or for the purpose of furnishing a cable service without such person having first obtained a franchise therefor from the city in the form of a franchise agreement between the city and the franchisee, which franchise agreement shall include, at a minimum, compliance with all the specifications of this chapter.
(Ord. No. 2101, § 1, 10-14-99)
30-90 Initial franchise application; contents; fees; issuance; transfer.
(a) Application information; fee. The application for an initial franchise to install, construct, maintain or operate a cable system in the city or to furnish a cable service, shall be made in writing to the city clerk in such form as may be prescribed. It shall include a description and map of the territory within the city in which the cable system is to be installed, constructed, maintained or operated or cable service is to be provided. It shall be accompanied by a showing of the applicant’s legal, financial, technical and other qualifications to be a franchisee, it shall contain:
(1) In establishing, legal qualifications, if other than a single individual, a certified copy of the partnership agreement, articles of association, or articles of incorporation, as the case may be, and also, if a foreign corporation, a certified copy of its authorization to do business in the state.
(2) In establishing financial qualifications, a copy of applicant’s current balance sheet as of a date not more than 60 days prior to the date of the application shall be furnished; if a loan or other credit arrangement is to be consummated to finance the establishment and operation of the proposed facilities, full particulars shall be disclosed, including, the identity of the creditor.
(3) In establishing technical qualifications, a statement of the arrangements to ensure the rendition of good service, including the type and kind of facilities to be employed, the technical standards to be followed, the maintenance and repair facilities to be used, the number and description of technical personnel, including copies of any of the above contracts, agreements or arrangements relating to any of the above.
(4) A statement as to the location of the antenna site or sites and the location of any places of business in the city.
(5) A statement as to any affiliated corporations or business organizations engaged in providing cable service, or interlocking directorships or ownerships held by any owners, officers or directors of applicant with any other business engaged in providing cable service.
(6) A detailed statement as to the arrangements and timetable by which applicant proposes to construct its cable facilities and system including detailed descriptions of portions of the city to be served by the system within six months, one year, 18 months, two years, 30 months and three years after the date of the awarding of the franchise.
(7) The applicant shall furnish information as to the programming services and public services which it shall propose to provide:
a. The off-air signals to be carried initially.
b. The number of channels offered and the potential for diversified services to local government, education institutions, community groups, householders and local commercial interests.
c. Projected development of customer and community services, indicating priorities in development, and estimated time schedules therefor.
(8) Cost estimates of development, installation, and maintenance of system, which itemizes the cost of acquisition of the system where approval of a transfer of the franchise has been requested.
(9) Revenue forecasts for the next five years of service.
(10) A proposed schedule of rates for installation charges, monthly service fees and relocation charges.
(11) Such other information as the city may request.
The application shall be accompanied by a $5,000.00, nonrefundable fee.
(b) Additional information. Upon the filing of such an application and the payment of the fee as prescribed, the mayor and city council shall consider the application and may request such additional information as it may deem necessary to establish the legal, financial, technical and other qualifications of the applicant to provide a cable service in the city.
(c) Public inspection; hearing. If the mayor and city council determine that the applicant possesses the necessary qualifications, legal, financial, technical and otherwise, to reasonably assure applicant’s ability to satisfactorily install, construct, maintain or operate a cable system or to furnish a cable service to the public in the city, the city council may by ordinance issue applicant a nonexclusive franchise therefor in the city, provided, that no franchise shall be issued until:
(1) The franchise application has been on file and available for public inspection in the office of the city clerk for at least 30 days.
(2) The city council has held a public hearing on such application after due notice of the time and place of such hearing has been given the public.
(d) Considerations in granting franchise. In determining whether such a franchise shall be issued, the mayor and city council shall take into consideration, among other things, the technical qualifications of the applicant; the financial responsibility of the applicant; the ability of applicant to perform efficiently the service for which the franchise is requested, including the prior experience, if any, of the applicant in providing cable systems or furnishing cable service; the proposed rate schedule; the nature and scope of the applicant’s proposed system; and the timetables for development of applicant’s proposed system.
(e) Renewal of franchise. Subject to Section 626 of the Cable Act (47 U.S.C. § 546), the city reserves the right to grant or deny renewal of a franchise.
(Ord. No. 2101, § 1, 10-14-99)
30-91 Franchise nonexclusive; term; form.
Any franchise issued pursuant to this chapter shall be a nonexclusive franchise for a term of years, not to exceed 15 years, as the city council may approve and shall be issued in such a form as shall be determined by the city council.
(Ord. No. 2101, § 1, 10-14-99)
30-92 Franchise; fees; reporting; records.
(a) Franchise fee. During the term of any franchise granted pursuant to this chapter, the person granted such franchise shall pay to the city, for the use of its streets, public places, and other facilities, as well as the maintenance, improvements, and supervision thereof, and for the regulation activities required by virtue of the franchise, an annual franchise fee in an amount equal to five percent of the annual gross revenue derived from the operation of the cable system to provide cable service in the city. The city shall be furnished a franchise fee statement for the entire year prepared by a certified public accountant. All statements shall reflect the total amount of revenues and the above charges, deductions and computations for the period covered by the statement.
(b) Payment of franchise fee. Such franchise fee shall be paid quarterly during the existence of the franchise corresponding to the thirtieth day following the close of the preceding quarter at the office of the treasurer of the city during its regular business hours. If the city treasurer’s office is closed on such thirtieth day, then payment may be made during its regular business hours on the next following day on which the office is open for business.
(Ord. No. 2101, § 1, 10-14-99)
30-93 Construction of facilities; right to use streets; restrictions; disposal; duties.
(a) Right to use streets. A franchise granted pursuant to this chapter shall confer upon the grantee the nonexclusive right to erect, install, construct, reconstruct, replace, remove, repair, maintain and operate in or upon, under, above and across the streets, avenues, highways, sidewalks, bridges and other public ways, easements, and rights-of-way, as existing as of the date of the grant of such franchise and all subsequent extensions and additions in and belonging to the city, all necessary, towers, poles, wires, cables, coaxial cables, transformers, amplifiers, underground conduits, manholes and other television, and/or radio conductors, equipment and fixtures for the installation, construction, maintenance and operation of a cable system (including audio, video and radio signals) or the furnishing of a cable service.
(b) Description of proposed facilities; prior approval required. Prior to the erection or installation of any towers, poles, guys, anchors, underground conduits, manholes or fixtures for use in connection with the installation, construction, maintenance or operation of a cable system under a franchise granted pursuant to this chapter, the grantee of a franchise desiring to erect or install such facilities for use in connection with its cable system shall first submit to the city engineering division for review and approval a concise description of the facilities proposed to be erected or installed, including engineering drawings, if requested or required, together with a map indicating the proposed location of such facilities. No erection or installation of any tower, pole, guy, anchor, underground conduit, manhole, or fixture for use in a cable system shall be commenced by any person until approval has been received from the city engineering division accompanied by the payment of plan review and inspection fees established by resolution of the city council.
(c) Underground facilities. In areas or portions of the city where transmission or distribution facilities of public utilities providing telephone service and electric service are underground or may be placed underground when installed, any person granted a franchise pursuant to this chapter shall likewise install, construct, maintain and operate its transmission and distribution facilities in like manner underground to the maximum extent feasible and permitted by existing technology and conditions, subject to the approval of the city engineering division as provided in subsection (b).
(d) Construction standards. All construction, installation, maintenance and operation of any cable communications system or of any facilities employed in connection therewith shall be in compliance with the provisions of the National Electrical Safety Code as prepared by the American National Standards Institute, the National Electrical Code of the National Fire Protection Association, the Bell Telephone System’s Code of Pole Line Construction, any standards issued by the Federal Communications Commission or other federal or state regulatory agencies in relation thereto, and applicable regulations of public utilities operating in the city shall be so designed, constructed, installed, maintained and operated as not to endanger or interfere with the safety of persons or property in the city.
(e) Street openings. Any opening or obstruction in, disturbance of or damage to the streets, alleys, public rights-of-way or public places by any person in the exercise of any right granted pursuant to this chapter shall be properly guarded by adequate barriers, lights, signal and warnings as to prevent damage to any person or vehicle using such streets, alleys, public rights-of-way or public places and shall be properly and promptly repaired, all in a manner specified and approved by the city engineering division, at such person’s expense.
(f) Disconnecting, relocating wires, property. Any person owning or maintaining a cable system or facilities therefor, in or on the streets, alleys, public rights-of-way or public places in the city shall, at its expense and without reimbursement from the city, upon request of the city, protect, support, temporarily disconnect, relocate or remove from the street, alley, public right-of-way or public place, any property of such person when required by reason of traffic conditions, public safety, street vacation, freeway or street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signal lines, tracks, the construction or the change of the transmission or distribution facilities of any telephone or electric public utility or other public improvements. Any such person shall also, at the request of any private party holding an appropriate permit issued by the city, temporarily raise or lower its cable television transmission or distribution wires or cables to permit the moving of any building or other structure, provided that the actual expense of such temporary raising or lowering shall be paid in full by the party requesting the same.
(g) Failure to perform required work. If any person shall fail to commence or complete any work required by this Code to be done in any street, alley, public right-of-way or public place as designated by the city engineering division, the cost shall be paid within 30 days of the receipt of an itemized statement of such cost.
(Ord. No. 2101, § 1, 10-14-99)
30-94 Standard of service.
(a) System specifications. Every cable system franchised under this chapter shall have at least 750 MHz of bandwidth (the equivalent of 80 activated channels).
(b) Signal capability. Every cable system franchised under this chapter shall maintain bidirection signal capability for digital, audio and video signal transmission on all elements of the system. The extent to which the reverse capability is available to subscriber use shall be specified in the franchise agreement.
(c) Public, education and government access channels. Every cable system franchised under this chapter shall maintain and make available without charge such public access channels, education access channels, and local government access channels as may be required by the city in the franchise agreement. As a minimum, this shall consist of one channel for public access, one channel for education access and one channel for local government access.
(Ord. No. 2101, § 1, 10-14-99)
30-95 Rates; discrimination; filing schedules; maximum rates; increase in rates, procedures.
(a) Rate discrimination prohibited. No cable company shall make any unjust or unreasonable discrimination in rates, charges, classifications, promotions, practices, regulations, facilities or services for or in connection with like services, nor subject any person to any prejudice or disadvantage in any respect whatsoever. This shall not be deemed to prohibit the establishment of a graded scale of charges and classification of rates to which any subscriber coming within such classification shall be entitled.
(b) Schedule of rates and charges; approval. No rate or charge for installation or cable service provided in the city shall be effective nor shall any cable company advertise, collect, or receive any rate or charge for its services until it shall have filed a complete schedule of rates and charges with the city clerk. The city may regulate rates and changes subject to state and federal law.
(Ord. No. 2101, § 1, 10-14-99)
30-96 Service; provision to city, schools, public emergencies.
(a) Installation in public buildings. Every cable television company furnishing service within the city shall, without charge for installation or service, provide one basic service installation of its cable service and all non-premium or pay-per-view services to each floor of the City Hall and all other city buildings and shall, without charge, provide the same cable service to each floor of public and parochial schools and public library and Oakland Community College, Pontiac Campus, within the franchisee’s current service area.
(b) Emergency use. Every cable television company providing service within the city shall make its cable system available, without charge to the city, the county, the state, the United States of America and/or emergency operations agencies for the prompt and simultaneous communication to subscribers and the public within the city of any information resulting from or required by war, threat of war, natural catastrophe, riot or insurrection, necessary to save or protect life or property.
(Ord. No. 2101, § 1, 10-14-99)
30-97 Indemnity.
Every cable system shall maintain insurance and indemnify the city as set forth in the franchise agreement.
(Ord. No. 2101, § 1, 10-14-99)
30-98 Termination; revocation or surrender of franchise.
(a) Failure to commence construction. Any initial franchise granted pursuant to this chapter shall be subject to revocation one year after its effective date in the event the person granted such franchise has not commenced construction of a cable system within such period.
(b) Failure to provide service. If any person granted an initial franchise pursuant to this chapter shall fail to provide cable service within and throughout the franchise areas as required under the terms of its franchise agreement, such franchise shall, on the anniversary of the effective date of such franchise next following the 12-month period during which cable service has not been extended as required under the terms of the franchise agreement, be deemed revoked without the necessity of city council action, unless prior to such date such person shall have applied to the city clerk and the city council shall have for good cause shown, granted an extension of the construction or service periods set forth in the franchise agreement.
(c) Receivership, trusteeship; sale of company. Any franchise granted pursuant to this chapter shall be terminated and canceled without further proceedings 120 days after the appointment of a receiver or trustee to take over and conduct the business of a cable television company, whether in receivership, reorganization, bankruptcy or other action or proceedings unless such receivership or trusteeship shall have been vacated prior to the expiration of such period. A receiver or trustee may apply for a transfer or assignment of such franchise within 60 days of the appointment of such receiver or trustee, if duly approved by the court having jurisdiction in the premises, and provided further in the case of a foreclosure or other judicial sale of the plant, property or facilities of a cable communications company, with or without the appointment of a receiver or trustee, including or excluding the franchise granted under this chapter, such franchise as granted will be terminated and canceled without further proceedings upon 30 days’ written notice of termination served upon the cable communications company and the purchaser thereof, unless within such 30-day period, the purchaser shall apply to the city for a transfer or assignment to it of the same.
(Ord. No. 2101, § 1, 10-14-99)
30-99 Commencement and completion of construction.
(a) Commencement of construction. Any person granted a franchise pursuant to this chapter shall commence and complete construction or installation of its cable system as set forth in the franchise agreement.
(Ord. No. 2101, § 1, 10-14-99)
30-100 Hearing and determination of complaints; procedure; local office.
The city reserves the right to regulate rates and company practices to the extent permitted by applicable law.
(Ord. No. 2101, § 1, 10-14-99)
30-101 Priority of use.
Any right or privilege granted to any person under this chapter to use or occupy any street, alley, public right-of-way or public place shall be subordinate to any prior lawful occupancy of such property. Nothing in this chapter shall be construed as limiting in any way the city in the lawful exercise of the police power, and the grant of a franchise to any person as provided in this chapter shall confer no right, privilege or exemption not specifically presented.
(Ord. No. 2101, § 1, 10-14-99)
30-102 Surrender of other franchises.
By the application for and acceptance of a franchise pursuant to this chapter, a cable television company agrees that upon subsequent additions of areas to the city, either by annexation, consolidation or otherwise, any and all franchises and/or licenses held by it to provide a cable service or to install, construct, maintain or operate a cable communications system in such areas shall be surrendered and any rights or privileges in streets, alleys, public rights-of-way or public places to install, construct, maintain or operate a cable system or to furnish a cable service in such areas as may subsequently be added to the city by annexation, consolidation or otherwise, shall thereafter be subject to and authorized by this chapter.
(Ord. No. 2101, § 1, 10-14-99)
30-103 Rights of city.
Any franchise granted under this chapter is made subject to all applicable provisions of law relating to the city.
(Ord. No. 2101, § 1, 10-14-99)
Editor’s note—Ord. No. 2101, § 1, adopted Oct. 14, 1999, amended Art. III, in its entirety, to read as herein set out. Prior to inclusion of said ordinance, Art. III pertained to similar subject matter. See the Code Comparative Table.
Cross reference—Franchises, App. A.