CHAPTER 7
STANDARDS FOR GRANTING NEW OR RENEWED FRANCHISES FOR OPERATION OF CABLE TELEVISION SYSTEMS
Sections:
7-7-201 Review of Application.
7-7-203 Action by City Council.
7-7-101 Scope.
All applications for a new cable television franchise or for renewal of an existing cable television franchise shall be filed in conformance with and subject to the provisions of this Chapter. This Chapter shall not be construed as to prescribe the detail in which an applicant shall make its presentation nor in any way restrict the scope of its presentation. The matters required in this Chapter shall, however, be fully covered in such detail that the City Council can make fully informed judgment concerning the adequacy of the proposal and an applicant’s legal, character, financial, technical and other qualifications to construct and operate a cable television system in the City.
(1979 Code 7-7-101; adopted by Ordinance No. 2-90)
7-7-102 Required Information.
Each applicant under this Chapter shall submit in reasonable detail as required by the City Council the following information:
(1) The applicant shall submit sufficiently detailed information to allow the City Council to determine whether the size of the requested franchise is in the public interest, considering the size of the area requested relative to the technical, fiscal and legal qualifications of the applicant, the potential for development in the near future for the area requested, and the extent to which existing cable operators have installed facilities and equipment in the area proposed to be included within the franchise.
(2) All applications shall contain the name, address and telephone number of the applicant and of the principal or representative of applicant to whom inquiries should be made. The application shall also identify all persons or other entities having an ownership interest in the applicant, and for each such entity shall provide information as to name, address, amount of interest, type of interest, basis of acquiring ownership, existence of any buy-out agreements, and ownership interests in other media. Applicants shall likewise provide full identification and ownership detail as required by the preceding sentence for all affiliates, subsidiaries and parent companies of applicant.
(3) Applicant shall supply all records relating to any past or present involvement of the applicant or any of its principals or managers as a party in any criminal or civil proceedings. The application shall also include detailed information concerning whether the applicant or any principal, owner, director or manager of the applicant, has ever been subject to a penalty for failure to comply with any cable television franchise, has been involved in any legal action involving any franchising authority, or has ever had any license of any type revoked or suspended, or had renewal of any franchise denied. The application shall also contain a complete list of all other cable television systems owned by or affiliated with the applicant, or its principals or managers, including location, miles of cable television line, percent completed, density of area served, number of residences passed, number of subscribers channel capacity, services offered, rates charged and market penetration for each such cable television system.
(4) The application shall describe in detail the financing plan for the construction and initial operation of the proposed cable television system and provide proof of financial capability. Proof of financial capability shall include a showing of sources and amount of equity capital and amount and terms of debt capital, both primary and secondary, accompanied by appropriate documentation. If equity contribution is borrowed, the application shall also describe the collateral and terms of the loan. All equity commitments shall be evidenced by appropriate documentation. If funding is to be provided by a parent or affiliated entity, the source of funding of that parent or affiliated entity shall be similarly documented. The application shall also include pro forma financial statements for a minimum of five (5) years beginning with the date the franchise is accepted by an applicant. Such statements shall include income statements, sources and uses of funds, loan amortization information, anticipated capital expenditures, construction costs, depreciation schedules, and operating expenses, along with detailed assumptions on which such projections are based. Applicant shall submit an audited financial report for the preceding two years or, if the applicant has existed for less than two (2) years, for such period of existence.
(5) The application shall describe any qualifications and cable television system experience of the applicant, including, but not limited to, the ownership, construction, management, and operation of other cable television systems and specifying the manner in which applicant participated therein; available personnel with technical qualifications and experience committed to the proposed system design, construction and operations; construction contractors to be used, if any; and technical consultants, if any. The application shall detail the type of participation and the qualifications of all such persons, consultants, and contractors whose services will be utilized.
(6) The applicant shall submit a detailed construction plan supported by detailed maps indicating areas of construction and projected construction schedules in six-month increments and showing the location of the facilities of any existing cable television franchisee within or immediately adjacent to such areas. The applicant shall demonstrate that sufficient pole and conduit space exists for the placement of its facilities and shall provide a copy of any agreement between the applicant and any other utility providing for the use of any utility facilities.
(7) The application shall include a comprehensive description of the system configuration, manufacturer and model of each type of equipment used, a spectrum utilization chart, and a complete list of all services which will be offered by the applicant.
(8) The application shall set forth detailed plans for system maintenance, handling customer complaints, procedures for billing subscriber privacy, and policies related to interruptions of service.
(9) The assist the City Council in making its evaluation of the impact of an additional franchisee, an applicant shall, if appropriate, provide detailed information relating to the extent of installation of facilities and equipment of existing cable television operators, detailing the density of areas served, unserved areas and the location of the facilities and equipment of existing operators in the area for which the applicant is applying.
(1979 Code 7-7-102; adopted by Ordinance No. 2-90)
7-7-201 Review of Application.
All applications made pursuant to this Chapter shall be submitted to the City Recorder. Upon submission of an application, the City Recorder shall review the application to insure that all required information is provided and that the application is complete and correct. If necessary, the City Recorder may request the applicant to provide additional information. The City Recorder shall, within sixty (60) days after receipt of an application, accept the same, reject it as incomplete or deficient, or accept the same with conditions.
(1979 Code 7-7-201; adopted by Ordinance No. 2-90)
7-7-202 Public Hearing.
(1) Upon acceptance, or acceptance with conditions, of any application under this Chapter, the City Recorder shall forward the application to the City Council and shall set a date for a public hearing before the City Council at which the City Council will consider the application. If the application is accepted with conditions, all conditions shall be met by the applicant at least ten (10) days before the public hearing. Notice of the public hearing shall be given by publication in a newspaper of general circulation in the City once per week for two consecutive weeks with the first such publication being at least thirty (30) days prior to the hearing. A notice of the public hearing, together with a copy of the application shall be given by the City Recorder to each existing cable television franchisee. Existing franchisees and all other interested persons shall be given an opportunity to submit comments in writing prior to the hearing. Existing franchisees and other interested persons may appear and submit comments at the public hearing. Following the submission of all comments, the City Council shall review the application to ensure that all information provided is complete and correct and the applicant has the financial, technical, and other required background and resources to provide the proposed services.
(2) In evaluating an application submitted pursuant to this Chapter, the City Council may consider all information set forth in the application and any other information it deems appropriate in determining whether to award a franchise to the applicant. In the event an application is filed proposing a franchise area which overlaps, in whole or in part, the area covered by an existing cable television franchise, the City Council, in considering such application shall take into account:
(a) the availability of space on existing poles and conduits;
(b) the likelihood that more than one (1) franchisee can maintain financially feasible operations over an extended period of time so as to provide long-term benefits to subscribers;
(c) the impact on the financial and operating capability of an existing franchisee;
(d) the ability of the City to regular multiple franchisees;
(e) the disruption of public and private property by multiple franchisees;
(f) the loss of uniformity of service as may be provided by a single franchisee;
(g) the ability of multiple franchisees to ensure availability of high-quality cable television service at the lowest economically feasible price; and
(h) whether access to cable service might be denied to certain potential subscribers based on the income of residents of a particular area.
(1979 Code 7-7-202; adopted by Ord. No. 2-90)
7-7-203 Action by City Council.
Upon consideration of all relevant information and completion of the public hearing, the City Council may reject the application or award a franchise with or without conditions.
(1979 Code 7-7-203; adopted by Ord. No. 2-90)
7-7-204 Conditions.
Upon granting a franchise for construction of a new cable television system, the City Council shall require as a condition of any such franchise that the applicant post a surety bond with the City with sureties acceptable to the City Council in the amount of not less than $1,000,000.00 to secure the faithful performance by the applicant of all obligations under the franchise. If the new franchise overlaps the service area of an existing franchise, the new franchise shall also be conditioned upon applicant’s agreement to indemnify all existing franchisees with respect to any damage to physical facilities or disruption of service caused by the construction or maintenance of applicant’s facilities.
(1979 Code 7-7-204; adopted by Ord. No. 2-90)