3179FOLLOWS;
ORDINANCE N0. 3179
AN ORDINANCE OF THE. CITY OF ANAHEIM GRANTIivG
THE NON-EXCLUSIVE RIGHT, PRIVILEGE AND FRAN-
CHISE TO LAY AND USE LINES, WIRES, COAXIAL
CABLE AND APPURTENANCES FOR TRANSMITTING,
RECEIVING, DISTRIBUTING AND SUPPLYING RADIO,
TELEVISION, AND OTHER CABLE COMMUNICATION SER-
VICES ALONG, ACROSS AND UPON THE PUBLIC STREETS,
WAYS, ALLEYS, AND PLACES WITHIN SAID CITY OF
ANAHEIM.
THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES ORDAIN AS
SECTION 1. FRANCHISE.
A non-exclusive franchise is hereby granted to Theta
Cable of California for the transmitting,_
receiving, distributing and supplying radio, television, and other
cable communication services along, across and upon the public
streets, ways, alleys, and places within said City of Anaheim.
SECTION 2. RULES OF CONSTRUCTION.
This ordinance shall be construed liberally in order to
effectuate its purposes. Unless otherwise specifically prescribed
in this ordinance, the following provisions shall govern its inter-
pretation and construction:
(a) When not inconsistent with the context, words used in the
present tense include the future, words in the plural
number include the singular number, and words in the
singular number include the plural number.
(b) Time is of the essence of this ordinance. Grantee shall
not be relieved of its obligation to comply promptly with
any provision of this ordinance by any failure of City
to enforce prompt compliance with any of its provisions.
(c) Any right or power conferred, or duty imposed upon any
officer, employee, department or board of City is sub-
ject to transfer by operation of law to any other officer,
employee, department or board of City.
(d) Grantee shall have no recourse whatsoever against City
for any loss, cost, expense or damage arising out of
any provision or requirement of this ordinance or the
enforcement thereof.
(e) This ordinance does not relieve Grantee of any, require-
ment of the City Charter or of any ordinance, rule, re-
gulation, or specification of City, including but not
limited to, any requirement relating to street work,
street excavation permits, undergrounding of utility
facilities, including cable system, facilities, or the
use, removal or relocation of property in streets.
(f) Provisions of this ordinance shall be construed in
accordance with Sections 1400, 1401; 1402; 1403, 1404,
1405, and 1406 of the Charter of the City of Anaheim.
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SECTION 3. PURPOSE AND INTENT.
It is the purpose and intent of this ordinance to grant
a franchise to engage in the business of operating a cable com-
munication system in the City of Anaheim particularly described in
Section 6 of this ordinance. It is the further purpose and intent
of this ordinance that the Grantee of the franchise granted by
this ordinance provide the citizens of the City of Anaheim the
best possible community cable communication services consistent
with the state of art and rates reasonable to both Grantee and
its subscribers.
SECTION 4. DEFINITIONS.
Whenever in this ordinance the following words or
phrases are used, they shall mean:
(a) "City" shall mean the City of Anaheim, a municipal cor-
poration in the State of California.
(b) "Council" shall mean the City Council of the City.
(c) "Franchise" shall mean the right and authority granted
by this ordinance to Grantee to construct, maintain and
operate a cable communication system through use of the
public streets, other public rights of way or public
places in City.
(d) "Franchise Property" shall mean all property owned,
installed or used under authority of this ordinance by
Grantee.
(e) "Grantee' shall mean the person or entity to whom the
franchise is granted by this ordinance and any lawful
successor or assignee of the original Grantee.
(f) "Street" shall mean the surface, the air space above
the surface and the area below the surface of anv
public street, other public right of way or public
place.
(g) "Cable Communication System" referred to in this ordi-
nance as "Cable System" shall mean the broadcast signal
reception, processing, and signal generation facilities
and the cable distribution system, as described in the
Specifications for construction, operation and maintenance
of the Cable Communication System for City of Anaheim.
(h) "Subscriber" shall mean any person or entity receiving
for any purpose the cable service of Grantee.
(i) "Total Gross Receipts" shall mean any and all compensa-
tion and other consideration collected or received or in
any manner gained or derived by Grantee from the opera-
tion of its cable service within the corporate limits
of the City of Anaheim as such corporate limits now
exist or may be established hereafter.
SECTION 5. APPLICATION FOR FRANCHISE.
Application for a franchise hereunder shall be in
writing, shall be accompanied by a non-refundable application fee
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of Five Hundred ($500.00) Dollars, shall be filed with the City
Clerk for transmission to the City Council and shall contain the
following information:
(a) The name and address of the applicant. If the appli-
cant is a partnership, the name and address of each
partner shall also be set forth. If the applicant
is a corporation, the application shall also state
the names and addresses of its directors, main officers,
major stockholders and associates, and the names and
addresses of parent and subsidiary companies.
(b) A technical proposal in response to appropriate City
rules, regulations or specifications for the construction,
operation and maintenance of the cable system and a
statement of compliance to the requirements of all
provisions of said rules and regulations or specifi-
cations or, as necessary, a listing of any exceptions,
identified as to rule, regulation or paragraph in the
specifications with recommended changes thereto.
(c) A description, in detail, of the adequacy and feasibil-
ity of the construction arrangements for the equipment
or facilities proposed to be constructed, installed
and maintained.
(d) A statement or schedule setting forth the number of
channels and all of the television or radio stations
and other communication services proposed to be
received, transmitted, conducted, relayed or otherwise
conveyed over its system.
(e) A statement or schedule in a form approved by the City
Manager of proposed rates and charges to subscribers
for installation and services, and a copy of proposed
service agreement between the Grantee and its sub-
scribers shall accompany the application.
(f) A copy of any contract, if existing, between the appli-
cant and any public utility providing for the use of
facilities of such public utility, such as poles, lines
or conduits.
(g) A statement setting forth all agreements and understand-
ings, whether written, oral or implied, existing
between the applicant and any person, firm or corpora-
tion with respect to the proposed franchise or the
proposed cable system operation. If a franchise is
granted to a person, firm or corporation posing as a
front or as the representative of another person, firm
or corporation, and such information is not disclosed
in the original application, such franchise shall be
deemed void and of no force and effect whatsoever.
(h) A financial statement prepared by a certified public
accountant, or person otherwise satisfactory to the
Council, showing applicant's financial status and his
financial ability to complete the construction and
installation of the proposed cable system.
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(i) The Council may at any time demand, and applicant
shall provide, such supplementary, additional or
other information as the Council may deem reasonably
necessary to determine whether the requested franchise
should be granted.
SECTION 6. NATURE AND EXTENT OF GRANT.
The franchise granted by this ordinance to Grantee con-
stitutes authority to use the public streets, other public rights
of way or public places in City, to engage in the business of
operating a cable communication system, as defined herein, within
the service area described in Section 7 of this ordinance subject
to all of the terms and conditions contained in this ordinance.
Pursuant to such authority, until lawfully revoked, Grantee may
construct, maintain and operate wires, cables, poles, conduits,
manholes or any other equipment which is a means of transmitting
and receiving signals.
Grantee shall not engage in the business of selling at
retail, leasing, renting, repairing or servicing television sets
or radios nor engage in the sale of parts for such equipment.
When requested, Grantee shall receive and distribute
signals from and to master stations of other (third party) com-
munication service operators who are authorized by the City to
offer such services within the City. Signal carriage shall be
provided on cable system access channels by Grantee at uniform
rates approved by the City. Equipment and installation required
to bring the signals to and from the cable system master station
and to condition such signals for application to the cable sys-
tem shall be provided by the (third party) communication service
operator.
SECTION 7. TERRITORIAL AREA It OLVED.
This franchise relates to the present territorial limits
of the City and to any area henceforth added thereto during the
term of this franchise.
SECTION S. DURATION OF GRANT.
(a) The franchise shall become effective on the
thirtieth (30th) day after the passage of this ordinance, subject
to the conditions contained in Section 27 hereof, provided prior
to that date Grantee has filed with the City Clerk: (1) a written
instrument addressed to the Council, accepting the franchise and
agreeing to comply with all provisions of this ordinance; (2) a
surety bond, cash deposit or deposit in any federal or State of
California chartered bank or savings and loan association in
accordance with the provisions of Section 19 of this ordinance.
(b) The term of the franchise shall be fifteen (15)
years commencing on the effective date of the franchise as pro-
vided in paragraph (a) of this section; provided, that upon
written notice given by City or Grantee to the other not less
than one year prior to the fifteenth (15th) anniversary of the
effective date, the terms and conditions of this ordinance may
be subject to renewal and renegotiation, as provided in Sections
1400, 1401, 1402, 1403, 1404, 1405 and 1406 of the City Charter
for a succeeding fifteen (15) -year term. Renegotiations shall be
directed toward effecting alterations in the terms and conditions
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of the franchise in order to reflect those technical and economic
changes which have occurred during the interim period. If rene-
gotiation prior to the end of the term of the franchise does not
result in agreement between City and Grantee for continuance of
the franchise for a succeeding fifteen (15) -year term, the fran-
chise shall terminate without further action by City at the end
of its first fifteen (1.5) -year term.
(c) In the event of purchase by the Grantor, or a
change of Grantee, the current Grantee shall cooperate with the
City, or with a representative appointed by the Grantor to operate
the System for a temporary period in maintaining continuity of
service to all subscribers.
SECTION 9. LIMITATIONS UPON GRANT.
No privilege or exemption is granted or conferred by
this ordinance except those specifically prescribed in it.
The franchise granted by this ordinance is subordinate
to any existing public use or any existing franchise or lawful
occupancy or any public highway, street, road or other public
property for the purpose of erecting, operating and maintaining
poles, lines, conduits, cables, gas pipelines and other necessary
fixtures used in connection with the purpose of existing fran-
chises or any extension of them.
The franchise granted by this ordinance is a privilege
personal to the original Grantee. It cannot in any event be sold,
transferred, leased, assigned, or disposed of as a whole, or in
part, or otherwise, without prior consent of City expressed by
ordinance, and then only under such conditions as may be pre-
scribed in the consenting ordinance; provided, however, that no
such consent shall be required for any transfer in trust,
mortgage, or other hypothecation, as a whole, to secure an indeb-
tedness.
In the event that Grantee is a corporation, prior
approval of the City Council, expressed by ordinance, shall be
required where ownership or control of more than thirty percent
(30%) of the voting stock of Grantee is acquired by a person or
group of persons acting in concert, none of whom already own or
control thirty percent (3.0%) or more of the voting stock, singu-
larly or collectively. Any such acquisition occurring without
prior approval of the City Council shall constitute a failure
to comply with a provision of this ordinance within the meaning
of subparagraph (1) of paragraph (b) of Section 8 of this
ordinance.
SECTION 10. OPERATION OF SERVICE.
(a) Within thirty (3.0) days after acceptance of any
franchise, the Grantee shall proceed with due diligence to obtain
all necessary permits and authorizations which are required in the
conduct of its business, including, but not limited to, any utility
joint use attachment agreements, microwave carrier licenses, and
any other permits, licenses and authorizations to be granted by
duly constituted regulatory agencies having jurisdiction over the
operation of cable television systems, or associated micro -wave
transmission facilities.
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(b) Within ninety (90) days after obtaining all neces-
sary permits, licenses and authorizations, including right of
access to poles and conduits, Grantee shall commence construction
and installation of the cable television system.
(c) Within one hundred eighty (180) days after the
commencement of construction and installation of the system,
Grantee shall proceed to render service to subscribers, and the
completion of the installation and construction shall be pursued
with due reasonable diligence thereafter, so that service to the
area covered by the franchise shall be provided within two and
one-half (2-1/2) years.
(d) Failure on the part of the Grantee to commence and
diligently pursue each of the foregoing requirements and to com-
plete each of the matters set forth herein, shall be grounds for
termination of such franchise. By resolution, the Council, in
its discretion, may extend the time for the commencement and
completion of installation and construction for additional periods
in the event the Grantee, acting in stood faith, experiences delays
by reason of circumstances beyond his control.
By acceptance of the franchise granted hereunder, Grantee
agrees that failure to comply with any time requirements referred
to in subsections (a), (b) and (c), or as extended by the City
Council, of this section will result in damage to the City, and
that it is and will be impracticable to determine the actual amount
of such damage in the event of delay; and Grantee therefore agrees
that, in addition to any other damage suffered by City, he will
pay to the City the sum of One Hundred Dollars ($100.00) per day
for each and every day's delay beyond the time prescribed, plus
authorized extensions thereof, for completion of any of the acts
required to be done by this section.
SECTION 11. REGULATION OF RATES AND SERVICES.
The City Council shall have the power and right at all
times for the duration of the franchise granted by this ordinance
to require Grantee to conform to reasonable rules and regulations
now or hereafter adopted by the City Council, including the power
to regulate and establish reasonable rates and charges by Grantee
for services rendered under this ordinance.
The facilities used by the Grantee shall be capable
of distributing color TV signals, and when the signals the Grantee
distributes are received in color they shall be distributed in
color. It is expressly agreed that services to be provided as
described herein include use of a converter to be made available
by Grantee at established rates.
Grantee shall:
(a) Deliver TV signals which will produce a picture,
whether in black and white or in color, that is
undistorted, free from ghost images, and accompanied
with proper sound on typical standard production
television receiver sets in good repair in accord-
ance with the standards set forth in the City
rules, regulations or specifications of construction,
operation and maintenance of the cable system as may
be modified by mutual agreement between the City and
the Grantee.
(b) Provide, maintain and operate facilities which deliver
signals of adequate strength to produce good pictures
with good sound at all outlets without causing pross-
modulation in the cables or interfering with other
electrical or electronic systems, in accordance with
the standards set forth by the City rules, regulations
or specifications of construction, operation or main-
tenance of the cable system.
(c) Limit system failures to minimum time duration by loca-
ting and correcting malfunctions promptly, but in no
event longer than twenty-four (24) hours after occur-
rence, irrespective of holidays or other non -business
hours.
(d) Upon complaint by a subscriber, make a demonstration
satisfactory to the City Manager or designated staff
that a signal is being delivered which is of sufficient
strength and quality to meet the standards set forth
in this paragraph and the City rules, regulations or
specifications of construction, operation and mainten-
ance of the cable system.
(e) Render efficient service, making repairs promptly and
interrupting service only for good cause and for the
shortest time possible; such interruptions insofar as
possible shall be preceded by notice given to sub-
scribers twenty-four (24) hours in advance and shall
occur during periods of minimum use of the system.
(f) Maintain an office in the service area, which office
shall be open during all the usual business hours,
have a telephone number listed in the directories
of the Pacific Telephone and Telegraph Company for
Anaheim extended areas, and be so operated that com-
plaints and requests for repairs or adjustments may
be received at any time day or night, seven days a
week.
(g) Deliver not less than twenty (20) FM radio signals in
accordance with the specifications of construction,
operation and maintenance of the cable system.
(h) Operate the cable system authorized by this ordinance
twenty-four (24) hours per day, seven (7) days per
week.
SECTION 12. SPECIAL PROVISIONS.
Grantee shall provide the following facilities and ser-
vices without cost to the City or to the schools located in
Anaheim of any School District on a continuous basis:
(a) A local studio with a capability for live and film
color TV broadcasts and for TV recording and playback
in color available to the City for a minimum of four (4)
hours each week and available to the school systems
for a minimum of eight (3) hours each week. Local
station crews and equipment will be available for
broadcast operations during reasonable business and
evening hours.
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(b) Mobile broadcast facilities capable of remote live
color TV broadcast and recording including necessary
crews shall be available to the City for a minimum of
four (4) hours each week and available to the school
system for a minimum of eight (8) hours each week.
(c) In addition to the cable communication system service,
at least five upstream video channels shall be dedicated
to the City. The configuration and the input locations
for upstream transmission shall be as specified in the
performance specification section 7.1.2.
(d) All school structures, including schools and the
administrative buildings, shall be connected to the
Grantee's system. School programming within the capacity
of the two-way channels, as described in the performance
specification, will be transmitted to the Grantee's
system and retransmitted to school users on one or more
of the access channels.
Grantee shall provide adequate channel capability to the
public school system such that the present microwave
educational broadcast equipment can be phased out within
five years. One such channel shall be provided by the
Grantee for educational purposes at no cost to the
schools. Grantee shall provide three experimental
educational channels during the five-year period at no
charge to the public schools or to the City.
Grantee shall provide one such channel to the City for
municipal purposes at no cost to the City.
If, after five years, the Federal Communications Com-
mission or such agency authorized by law shall permit
a charge on the five channels furnished by Grantee
herewith, the City reserves the right to control and
regulate the amount of said charge.
(e) Grantee shall train, at its own expense, one City
employee for TV program origination and coordination.
(f) Installation of an emergency alert system in accordance
with City rules, regulations or specifications of
construction, operation and maintenance of the cable
system. In case of any declared emergency or disaster,
the Grantee shall, upon request of the Mayor or City
Manager, make available immediately its facilities to
the City for emergency use during the emergency or
disaster period. (A declared emergency or disaster as
used herein means such event as is described in Section
6.04.020 of the Anaheim Municipal Code [The City's
Disaster Plan], but only when such event has been pro-
claimed by the City Council, the Director of Disaster
Services, the Governor or other competent authority).
(g) The Grantee's cable distribution system shall be
designed, constructed and equipped to initially
carry television and access channels, as specified
in City rules, regulations or specifications of
construction, operation and maintenance of the
cable system, and shall have a capacity of carrying
the equivalent of six (6) television channels for
transmittal of data. The cable distribution system
shall also provide for transmission of return
(upstream) television grade channels and capacity
for data return channels in accordance with require-
ments of City rules, regulations or specifications
of construction, operation and maintenance of the
cable system.
(h) Grantee shall provide for tie-in to cable systems
constructed in adjacent communities tangent to City
property lines. The headquarters for the tie-in
system to provide said service shall be located within
the City limits of the City of Anaheim. Such tie-in
shall include necessary equipment to permit retrans-
mission on the access channels specified by the City.
(i) System Maps and Layout. The Grantee shall have at all
times up-to-date route maps of suitable scale showing
all transmitting and receiving pickup locations and the
location of all amplifiers and trunk and distribution
lines. Lines to individual home and business outlets
within the public right of way shall be shown. Maps
shall be annotated so that a failure or malfunction in
the transmission lines and assorted equipment can be
evaluated in terms of service area receiving less than
full service. The scale of the maps shall be sufficient
to clearly show details to include horizontal and ver-
tical dimensions and in no event less than 1 inch = 100
feet. Grantee shall provide City current copies of
said maps. At the beginning of construction and every
six (6) months after, Grantee shall indicate to the
City its plans for installation and engineering during
the next six (6) months.
(j) System Construction and E ui ment Standards. The system
shall be installed and maintained in accordance with
standard good engineering practices and shall conform
when applicable with the National Electrical Safety
Code; Rules for Overhead Line Construction (General
Order No. 95) of the California Public Utilities
Commission; Rules for Underground Construction of
Lines (General Order No. 128); the California
Administrative Code, Title 24, Part 3; the City of
Anaheim Municipal Code; Federal Communications
Commission Rules and Regulations Parts 15, 73, 74 and
new Rules and Regulations as they become effective, and
Electronic Industries Association Standards RS -250-A.
The equipment installed shall conform to the City rules,
regulations or specifications of construction, opera-
tion and maintenance of the cable system.
(k) Preferential or Discriminatory Practices Prohibited. The
Grantee shall not, as to rates, charges, service,
services, facilities, rules, regulations, or in any
other respect, make or grant any undue preference or
advantage to any person, nor subject any person to any
prejudice or disadvantage.
(1) Flow-through of Refunds. If, during the term of this
franchi e, the Grantee receives refunds of any payments
made for television or radio signals, and where the
amounts represented by the refunds have been used to
justify rates, it shall, without delay, notify the City
Council, suggest a plan for flow-through of the refunds
to its subscribers, and retain such funds pending order
WE
of the Council. After considering the plan submitted
by the Grantee, the Council shall order the flow-through
of refunds to the Grantee's subscribers in a fair and
equitable manner.
(m) Subscriber Refunds on Termination of Service. If ser-
vice to a subscriber of less than three years is termi-
nated without good cause or because Grantee ceases to
operate the cable system business authorized herein for
any reason, except expiration of this franchise, Grantee
shall refund to such subscriber an amount equal to the
initial installation charges paid by him divided by 36
and multiplied by a number equal to 36 minus the number
of months the subscriber has been on the system.
(n) Grantee shall provide a level of effort of one man
commencing on the date of Certification of the Cable
System by the Federal Communications Commission, such
staffing and effort to be applied to the marketing
and advertising of the cable services to the citizens
of Anaheim.
(o) Grantee agrees to provide to the City the service of
one man on a continuous basis from the time of fran-
chise award and for a remaining period of three years
to assist in the development of Cable System experi-
mentation concepts and proposals. The individual(s)
assigned to this task shall be of professional level
and familiar with technical, economic and operational
aspects of Cable Television service.
(p) Grantee agrees to furnish at its own expense qualified
legal counsel to assist in obtaining a Certificate of
Compliance from the Federal Communications Commission.
SECTION 13. LOCATION OF PROPERTY OF GRANTEE.
The Grantee shall make such arrangements to install the
cable system with the owner of the property or easement where
such cable system is to be located as may be appropriate. Grantee
shall furnish City with evidence of such arrangements.
All street work will require an excavation permit. Any
poles, wires, cable lines, conduits or other properties of the
Grantee to be constructed or installed in streets, alleys or other
rights of way shall be so constructed or installed only at such
locations and in such manner as shall be approved by the City
acting in the exercise of its reasonable discretion.
The Grantee must post a cash bond with the City in the
sum of $2,000.00 during and until completion satisfactory to the
City of said work and restoration of street and alleys.
The Grantee shall not install or erect any facilities or
apparatus in or on other public property, places, or rights-of-way,
or within any privately -owned area within the City which has not
yet become a public street but is designated or delineated as a
proposed public street on any tentative subdivision map approved
by the City, except those installed or erected upon public utility
facilities now existing, without obtaining the prior written
approval of the Director of Public Works or designated staff.
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In those areas and portions of the City where the trans-
mission or distribution facilities of either the public utility
providing telephone service or those of the utility providing elec-
tric service are underground or hereafter may be placed underground,
then the Grantee shall likewise construct, operate and maintain
all of its transmission and distribution facilities or other means
of transmitting signals underground. For the purposes of this
subsection, "underground" shall include a partial underground
system, e.g. streamlining. The City shall not in any manner be
responsible for any costs incurred by the Grantee in placing
Grantee's facilities underground.
SECTION 14. INSTALLATIONN OF DISTRIBUTION SYSTEM.
The entire distribution system of the Grantee, including
poles, posts, wires, cables, appurtenances, and facilities, shall
be located or relocated and so erected as not to interfere with
travel over, in, on or under any public way and with reasonable
ingress and egress to abutting property.
SECTION 15. REMOVAL OR ABANDONMENT OF FRANCHISE
PROPERTY.
In the event that (1) the use of any franchise property
is discontinued for any reason for a continuous period of twelve
(12) months, (2) franchise property has been installed in any
street or other dedicated public right of way without complying
with the requirements of this ordinance, or the franchise has
been terminated, cancelled or has expired, Grantee, at its
expense, shall at the demand of the City remove promptly from
the street all franchise property other than any which the
Director of Public Works may permit to be abandoned in place.
In the event of any such removal, Grantee shall promptly restore
to a condition satisfactory to the Director of Public Works the
street or other dedicated public right of way or other public
places in City from which the franchise property has been removed.
Franchise property to be abandoned in place shall be
abandoned in the manner prescribed by the Director of Public
Works. Upon permanent abandonment of any franchise property in
place, Grantee shall submit to the City Manager an instrument,
satisfactory in form to the City Attorney, transferring to City
the ownership of the franchise property abandoned.
SECTION 16. CHANGES REQUIRED BY PUBLIC IMPROVEMENTS.
Grantee shall, at its expense, protect, support, tempor-
arily disconnect, relocate in the same street, alley, or public
place, or remove from any street, alley or public place, any fran-
chise property when required by the Director of Public works by
reason of traffic conditions, public safety, street vacation, free-
way and street construction, change or establishment of street
grade, installation of sewers, drains, and tracks or any other type
of structures or improvements including but not limited to placing
such structures and improvements underground by governmental
agencies when acting in a governmental or proprietary capacity, or
any other structures or public improvements; provided, however,
that Grantee shall in all such cases have the privileges and be
subject to the obligations to abandon franchise property in place,
as provided in Section 15.
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SECTION 17. FAILURE TO PERFORM STREET WORK.
Upon failure of Grantee to commence, pursue or complete
any work required by law or by the provisions of this ordinance to
be done in any street, within the time prescribed and to the satis-
faction of the Director of Public Works, the Director of Public
Works may, at his option, cause such work to be done and the
Grantee shall pay to the City the costs thereof in the itemized
amounts reported by the Director of Public Works to Grantee,
within thirty (30) days after receipt of such itemized report.
SECTION 18. FRANCHISE FEE.
Grantee shall pay to the City five percent (50) of the
total gross receipts derived from the use, occupation or
possession of this franchise commencing ,
19 Such fee shall be in addition to any other application
or permit or fee charged provided for in this franchise, payable
as follows:
The Grantee shall in all events pay to the City a
minimum franchise fee in the sum of Five Thousand Dollars
($5,000.00) upon the date of the award of this franchise, the
sum of Seven Thousand Five Hundred Dollars ($7,500.00) on the
expiration of the first year from the date of award of this
franchise, and the sum of Ten Thousand Dollars ($10,000.00) upon
the expiration of the second year of operation of this franchise.
The above minimum payments shall be in advance of the calendar
year from which they shall apply, and in the event the City share
of the total gross receipts shall exceed the minimum franchise
amounts, the City shall grant a credit to Grantee for said advance
SUMS.
Further, Grantee shall comply with the other proposals
of its aforesaid application for franchise, unless any of such
proposals conflict expressly with the provisions hereof.
The Grantee shall file with the City, within forty-five
(45) days after the expiration of each 90 -day period during the
time this franchise in in force, a financial statement of the
estimated gross receipts of the preceding 90 -day period. It
shall be the duty of the Grantee to pay to the City, within
fifteen (15) days after the time for filing such statement the
sum hereinbefore prescribed or any unpaid balance thereof for
such 90 --day period covered by such statement. A year-end
adjustment based on a financial statement prepared by a certified
public accountant shall be submitted by Grantee and the amount
due or the rebate authorized as a result thereof shall be paid
by Grantee or City.
Grantee shall furnish the City, upon demand, such
data as needed in accordance with generally accepted account-
ing principals in the industry, or such other system as may be
designated by the City or the F.C.C.
The City shall have the right to inspect the Grantee's
records showing the total gross receipts from which its franchise
payments are computed and the right of audit and the recomputa-
tion of any and all amounts paid under this franchise. No
acceptance of any payment shall be construed as a release or
as an accord and satisfaction of any claim the City may have for
further or additional sums payable under this franchise or for
the performance of any other obligation hereunder.
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Any neglect, omission or refusal of the Grantee to
file said verified statement, or to pay said percentage in full,
at the time or in the manner hereinbefore provided, which neglect,
omission or refusal shall continue for more than fifteen (15)
days following notice thereof to the Grantee from the City shall
be grounds for the termination of this franchise as provided for
in Section 22 hereof.
SECTION 19. FAITHFUL PERFORMANCE BOND.
Grantee shall, upon the award of this franchise, file
an acceptable corporate surety bond in the amount of Two Hundred
and Fifty Thousand Dollars ($250,000) for and during the course
and period of the construction of the cable system as described
in this ordinance. Thereafter, Grantee shall maintain in full
force and effect a corporate surety bond in the amount of Twenty -
Five Thousand Dollars ($25,000), and conditional that in the
event Grantee shall fail to comply with any one or more of the
provisions of this ordinance, then there shall be recoverable
jointly and severally from the principal and surety of such bond
any damages suffered by City as a result thereof, including the
full amount of any compensation, indemnification, or cost of
removal or abandonment of property as prescribed by this ordinance
which may be in default, up to the full amount of the bond, the
condition to be a continuing obligation for the duration of the
franchise granted by this ordinance and thereafter until Grantee
has liquidated all of its obligations with City that may have
arisen from the acceptance of the franchise by Grantee or from its
exercise of any privilege herein granted. In lieu of said bond
Grantee may deposit cash with the City of Anaheim or in a federal
or State of California bank or savings and loan association in
the name of the City of Anaheim, but with interest reserved to
the Grantee, on terms and conditions approved by the City Attorney.
Neither the provisions of this section, and any bond
accepted by the City pursuant thereto nor any damages recovered
by City thereunder, nor any withdrawal from any cash deposit shall
be construed to excuse faithful performance by Grantee or to limit
the liability of Grantee under this ordinance or for damages,
either to the full amount of the bond or otherwise.
SECTION 20. LIABILITY AND INDEMNIFICATION.
The Grantee shall pay all damages and penalties which
the City may legally be required to pay as a result of passage
of this ordinance. These damages or penalties shall include
damages arising out of the installation, operation, or maintenance
of the cable system authorized herein, whether or not any act or
omission complained of is authorized, allowed, or prohibited by
this ordinance.
The Grantee shall pay all expenses incurred by the City
in defending itself with regard to all damages and penalties
mentioned above. The expenses shall include all out-of-pocket
expenses, such as attorney fees, and shall also include the rea-
sonable value of any services rendered by the City Attorney or
his assistants or by any employees of the City.
The Grantee shall maintain and pay for liability insur-
ance insuring the City and the Grantee with regard to all damages
charged against the City and/or the Grantee resulting from the
installation, development, maintenance or expansion of the cable
system authorized by this ordinance in the following amounts:
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(1) Two Hundred Fifty Thousand ($250,000) Dollars for bodily
injury or death to any one person, with an aggregate
limit for any one occurrence of Five Hundred Thousand
($500,000) Dollars for bodily injury or death.
(2) One Hundred Thousand ($100,000) Dollars property damage
resulting from any one accident.
(3) Fifty Thousand ($50,000) Dollars for all other types of
liability.
The Grantee agrees not to oppose intervention by the
City in any suit or proceeding to which the Grantee is a party.
SECTION 21. INSPECTION OF PROPERTY AND RECORDS.
At all reasonable times Grantee shall permit examination
by any duly authorized representative of the City Manager, Direc-
tor of Public Works or the City Auditor of all franchise property,
together with any appurtenant property of Grantee situated within
or without the City. Grantee shall also permit any duly author-
ized representative of the City I•Ianager, Director of Public Works
or the City Auditor to examine and transcribe any and all maps
and other records kept or maintained by Grantee or under its
control concerning the operations, affairs, transactions or prop-
erty of Grantee. If any of such maps or records are not kept in
the City, or upon reasonable request made available in the City,
and if the City Manager, Director of Public Works or the City
Auditor shall determine that an examination of such maps or
records is necessary or appropriate to the performance of any of
their duties, then all travel and maintenance expense necessarily
incurred in making such examination shall be paid by Grantee.
Grantee shall prepare and furnish to the City Manager,
Director of Public Works or the City Auditor, at the times and
in the form prescribed by the City Manager, Director of Public
Works, or the City Auditor, such reports with respect to its
operations, affairs, transactions or property as may be reasonably
necessary or appropriate to the performance of any of the duties
of the City Manager, Director of Public Works or the City Auditor
in connection with this ordinance. Such reports may include,
but are not limited to, a complete set of records and plans of
all facilities as finally installed within the franchise service
area.
SECTION 22. TERMINATION.
(a) The City may terminate any franchise granted
pursuant to the provisions of this ordinance in the event of the
willful failure, refusal or neglect by Grantee to do or comply
with any material requirement or limitation contained in this
ordinance, or any material rule or regulation of the Council or
City Manager validly adopted pursuant to this ordinance.
(b) The City Manager may make written demand that the
Grantee do or comply with any such requirement, limitation, term,
condition, rule or regulation. If the failure, refusal or neglect
of the Grantee continues for a period of thirty (30) days follow-
ing such written demand, the City Manager may place his request
for termination of the franchise upon the Council meeting agenda.
The City Manager shall cause to be served upon such Grantee, at
least ten (10) days prior to the date of such Council meeting, a
written notice of his intent to request such termination, and the
time and place of the meeting.
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(c) The Council shall consider the request of the City
Manager and shall hear any persons interested therein, and shall
determine whether or not any failure, refusal or neglect by the
Grantee was with just cause.
(d) If such failure, refusal or neglect by the Grantee
was with just cause, the Council shall direct the Grantee to
comply within such time and manner and upon such terms and con-
ditions as are reasonable.
(e) If the Council shall determine such failure,
refusal or neglect by the Grantee was without just cause, then
the Council may pass its resolution declaring that the franchise
of such Grantee shall be terminated and forfeited unless there
be compliance by the Grantee within such period as the Council
may fix.
(f) The termination and forfeiture of any franchise
shall in no way affect any of the rights of the City under the
franchise or any provision of law.
(g) In the event of any holding over after the expira-
tion or other termination of any franchise granted hereunder,
without the prior consent of the City, expressed by resolution,
the Grantee shall pay to the City reasonable compensation and
damages, of not less than one hundred percent (1000 of its
total gross revenue during said period.
(h) Any and all minimum standards governing the opera-
tion of Grantee and any and all maximum rates, ratios, and
charges specified herein or in any franchise issued hereunder,
existing now and at any time in the future, and any and all
rights, powers, privileges, and authorities of the City to
determine, establish, or fix any of the same, are each and all
hereby declared by the City and by any Grantee accepting any
franchise hereunder to be contractual in nature and to be for
the benefit of the City and all subscribers situated therein.
SECTION 23. MISDEMEANORS.
(a) It shall be unlawful for anv person, firm or cor-
poration to make any unauthorized connection, whether physically,
electrically, acoustically, inductively or otherwise, with any
part of a franchised cable system within the City, for the
purpose of taking or receiving television signals, radio signals,
pictures, programs or sound.
(b) It shall be unlawful for any person, firm or
corporation to make any unauthorized connection, whether
physically, electrically, acoustically, inductively or otherwise,
with any part of a franchised cable system within the City, for
the purpose of enabling himself or others to receive any tele-
vision signals, radio signal, picture, program or sound, without
payment to the owner of said system.
(c) It shall be unlawful for any person, without the
consent of the owner, to willfully tamper with, remove or injure
any cable wires or equipment used for distribution of television
signals, radio signals, pictures, programs or sounds.
(d) It shall be a misdemeanor punishable by a fine of
not to exceed Five hundred Dollars ($500.00), or by imprisonment
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for not to exceed six (6) months, or both, for any person to
violate any of the provisions of this section.
SECTION 24. ACQUISITION.
In the event the City wishes to acquire part or all of
the cable system either by purchase or through the exercise of the
right of eminent domain, City and Grantee will each appoint one
appraiser to establish the value of the equipment to be acquired
by City. The two appraisers will select a third appraiser who
will be chairman of the appraisal board. The board will by
majority vote determine the value of the system to be acquired
by City. This value will be final and binding on both City and
Grantee and will be used as the purchase price of just compensa-
tion in an eminent domain proceeding between City and Grantee.
SECTION 25. FILINGS AND COMMUNICATION WITH REGULATORY
AGENCIES.
Copies of all petitions, applications, reports and
communications of all types submitted by Grantee -to the Federal
Communications Commission, Securities and Exchange Commission,
California Public Utilities Commission, or any other Federal or
State regulatory commission or agency having jurisdiction over
any matter affecting operation of Grantee's cable system shall be
submitted simultaneously to the City by delivery to the City
Clerk who shall advise interested City departments of such
filing. A copy of each document filed with the City Clerk in
accordance with this section shall be delivered to the City
Attorney.
SECTION 26. NEW DEVELOPMENTS.
It shall be the policy of the City liberally to amend
this franchise, upon application of the Grantee, when necessary
to enable the Grantee to take advantage of any developments in the
field of transmission of communication signals which will afford
it an opportunity more effectively, efficiently, or economically
to serve its customer. Provided, however, that this section
shall not be construed to require the City to make any amendment
or to prohibit it from unilaterally changing its policy stated
herein.
Grantee agrees to incorporate, as part of the cable
system installed, advances in equipment and services provided
to the citizens of Anaheim at the first possible opportunity, and
in any event not later than the times when such advances are
installed in other cable systems operated by Grantee. Such equip-
ment and service shall include, but not be limited to, two-way
access available to all subscribers, equipment to facilitate such
two-way services at both headend and subscriber terminals, availa-
bility of national or international transmission via communica-
tions satellite, and other such advances. Such equipment and
services shall be incorporated in the Anaheim Cable System without
regard to the company, corporation or other agency involved in
its development.
SECTION 27. CERTIFICATE OF COMPLIANCE.
An express condition to the award of this franchise
shall be the obtaining of a certificate of compliance from the
Federal Communications Commission in accordance with the terms
and conditions of this ordinance and applicable specifications
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FAL:kw
without exception. The failure to secure such "Certificate" shall
terminate this franchise or shall render the effective starting
date hereunder, pursuant to Section 8 hereof, inapplicable until
such "Certificate" shall be awarded to Grantee. In the event a
"Certificate" shall not be awarded within eighteen (18) months,
the City shall elect one of the above options, and such election
shall be binding on Grantee.
SECTION 28. PUBLICATION OF COSTS.
The Grantee shall assume the cost of publication of this
franchise, as such publication is required by law and such is
payable upon the Grantee's filing of acceptance of this franchise.
SECTION 29. SEVERABILITY.
If any section, subsection,
portion of this ordinance is for any
stitutional by any court of competent
shall be deemed a separate, distinct
and such holding shall not affect the
portions hereof.
SECTION 30.
sentence, clause, phrase or
reason held invalid or uncon-
jurisdiction, such portion
and independent provision
validity of the remaining
The City Clerk shall certify to the passage of this
ordinance and shall cause the same to be printed once within
fifteen (15) days after its adoption, in the Anaheim Bulletin, a
newspaper of general circulation, printed, published and circu-
lated in said City, and thirty (30) days from and after its final
passage it shall take effect and be in full force.
THE FOREGOING ORDINANCE is approved and signed by me
this 3rd day of July 19 73 .
)MVOR'OF C Y OF AN IM
A S^l: Pro Tem
CIT CLERK OF THE CITY OF ANAHEIM
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