Fort Walton Beach Ordinance — 1382 Cable Communication Franchises — reading text

of Facilities. In the event a franchise expires, is revoked, or is otherwise terminated, the City may do any of the following: (a) Purchase the system under the procedures set forth in Section 39-3, subsection (n) (1) of this Ordinance. (b) Effect a transfer of ownership of the system to another party; (c) Order the removal of the system facilities from the City. (x) EQUAL OPPORTUNITY POLICY. (1) Policy. Equal employment opportunity shall be afforded by all operators of cable communication systems to all qualified persons, and no person shall be discriminated against in employment because of race, color, religion, age, national origin, sex, or physical handicap. Grantee shall comply with all equal opportunity provisions enacted by the City, Federal, and State authorities, as -34- well as all such provisions contained in this Ordinance and the franchise. (2) Local Preference. Grantee shall investigate the use of local personnel and, whenever reasonably available, all vendors for services, hardware and supplies, and will use such personnel and vendors whenever feasible, in its discretion. Section 39-4. Regulation of franchise. (a) REGULATORY AUTHORITY. (1) On-Going Regulation. The City shall exercise appropriate regulatory authority under the provisions of this Ordinance and applicable law. This authority shall be vested in the Council and administered through the City Manager or his designee. The City Manager or his designee shall provide day-to- day administration and enforcement of the provisions of this Ordinance and any franchise granted hereunder, and shall carry out the City's responsibilities with regard to cable communications. (2) Applications. (a) No person or entity shall operate any cable system within the City without having first obtained from the City a franchise therefor pursuant to this Ordinance. Each application submitted for a franchise shall be accompanied by the required non-refundable application fee to offset the reasonable cost of processing and evaluating the application. (b) Application fees shall be the following amounts: -35- For an initial franchise: $5,000 For a renewal of a franchise: $ 1,000 For transfer of a franchise: § 2,500 For modification of a franchise: $1,000. These fees may be amended throughout the term of the franchise by subsequent action of the City Council. (3) Governing Requirement. At all times during the term of the franchise, Grantee shall comply with all laws, rules or regulations of the City, state or federal Governments, their regulatory agencies or commissions which are now applicable or may be applicable hereafter to the construction and operation of the cable communications system, including without limitation, all laws, ordinances, or regulations now in force or hereafter enacted. The City shall have the maximum plenary authority to regulate the cable communications system, the Grantee and the franchise as may at any time be lawfully permissible. If, during the term of any franchise, regulatory authorities permit regulation of cable communication systems or services not permitted to the City on the effective date hereof, the City shall negotiate in good faith with Grantee, to engage in any such additional regulation as may then be permissible whether or not contemplated by this Ordinance or the franchise, including without limitation, regulation respecting franchise fees, taxes, rates charged to subscribers, consumer protection, or any other similar or dissimilar matter. In the event that any actions of the state or federal government or any ~36- agency thereof, or any court of competent jurisdiction upon final adjudication, substantially reduce in any way the power or authority of the City under this Ordinance or the franchise, or if in compliance with any local, state, or federal law or regulation, the Grantee finds direct and specific conflict with the terms of this Ordinance, the franchise, or any law or regulation of the City, then as soon as possible following knowledge thereof, the Grantee shall notify the City of the point of conflict believed to exist between such law or regulation and the laws or regulations of the City, this Ordinance and the franchise. The City, at its option, may notify the Grantee that it wishes to negotiate those provisions which are affected in any way by such modification in regulations or statutory authority. Thereafter, the Grantee shall negotiate in good faith with the City in the development of alternate provisions which shall fairly restore the City to the maximum level of authority and power permitted by law. The City shall have the right to modify any of the provisions to such reasonable extent as may be necessary to carry out the full intent and purpose of this Ordinance and the franchise. (4) Right of Inspection of Records. The City shall have the right to inspect all books, records, reports, maps, plans, and financial records relating to calculation of the franchise fee, and other materials of the Grantee reasonably necessary to enable the City to review and audit the Grantee's performance under this Ordinance and the franchise, at any time during normal business -37- hours. Grantee shall provide such information in such form as may be required by the City for said records. (5) Right of Inspection of Construction. The City shall have the right to inspect all construction or installation work performed subject to the provisions of the franchise and to make such tests as it shall find necessary to ensure compliance with the terms of this Ordinance and other pertinent provisions of the law. Grantee shall not be precluded or prevented from any such inspection. (6) Right of Inspection of Property. At all reasonable times, Grantee shall permit examination by any duly authorized representative of the City, of system facilities serving the City of Fort Walton Beach, together with any appurtenant property of Grantee situated within or without the City. (7) Right of Intervention. The City shall have the right of intervention in any suit or proceeding to which the Grantee is party relative to the cable system serving the City of Fort Walton Beach. (8) Expense Reimbursement to City. The Grantee and the City shall enter into good faith negotiations for expenses incurred by the City in connection with the granting, extending, or renewing a franchise provided that the Grantee may offset such expense against the franchise fee, provided, however, that the fees set forth in Section 39-4(a) (2) shall not be offset against the franchise fee. (b) SUPERVISION OF THE FRANCHISE. -38- (1) Regulatory Authority. The City shall have the following regulatory authority: (a) Administration and enforcement of the provisions of this Ordinance and any franchise granted hereunder. (b) Award, renewal, modification, expansion, extension or termination of a franchise pursuant to the provisions of this Ordinance, the franchise, and other applicable law. (c) Consent prior to sale or transfer of any franchise granted hereunder. (ad) Performance evaluation. (e) Rate regulation, if applicable. (2) Reserved Functions. The City also reserves the right to perform the following functions: (a) Develop objectives and coordinate activities related to the operation of government access channels. (b) Approve procedures and standards for public, government and educational access and operations and services, including the use of dedicated channels and sharing of public facilities. (c) Coordinate, among governmental entities, plans for expansion, interconnection and growth of cable services. (d) Analyze the possibility of integrating cable communications with other City, state or regional telecommunications networks. (e) Formulate and recommend long-range telecommunications -39- (c) policy for the City, and determine the future cable-related needs and interests of the community. (f) Provide the administrative effort necessary for the conduct of performance evaluations, and any other activities required for the administration of this Ordinance or the franchise. (g) Monitor Grantee's process for handling citizen complaints and periodically inspect and analyze the records related to such complaints. (h) Receive applications for rate increases, if applicable, and provide staff assistance in the analysis and recommendations thereto. (i) Monitor Grantee's adherence to operational standards, service requirements and line extension policies. (3) Assure compliance with applicable laws and ordinances. (k) Arrange tests and analysis of equipment and performance, as needed to insure compliance with this Ordinance and the franchise. (1) Assure continuity in service. (m) Receive for examination all data and reports required by this Ordinance or the franchise. (n) Such other regulatory authority as appropriate to carry out the intent of this Ordinance or the franchise. RATES AND CHARGES. (1) Schedules.Grantee shall file with the City schedules -40- which shall describe all services offered, all rates and charges of any kind, and all terms and conditions relating thereto. Rate schedules shall be filed at least thirty (30) days prior to the effective date of any change in rates or charges. (2) Rates. Grantee shall establish rates that are nondiscriminatory within the same general class of subscribers which must be applied fairly and uniformly to all subscribers in the franchise area for all services. Nothing contained herein shall prohibit the Grantee from offering: (i) discounts to commercial and multiple family dwelling subscribers billed on a bulk basis; (ii) promotional discounts; (iii) reduced installation rates for subscribers who have multiple services; or (iv) discount for senior citizens and/or low income residents. (3) Reserved Rights to City. To the extent that federal or state law or regulation may now, or as the same may hereafter be amended to, authorize the City to regulate the rates for any particular service tiers, service packages, equipment, or any other services provided by Grantee, the City shall have the right to exercise rate regulation to the full extent authorized by law, or to refrain from exercising such regulation for any period of time, at the sole discretion of the City. (4) Factors. If and when exercising rate regulation, the City shall consider to the extent permitted by applicable law, along with any other information it deems necessary or appropriate, the following factors in approving or disapproving initial rates or -41- a rate increase request: the ability of the Grantee to render system services and to derive a reasonable profit therefrom under the existing rate schedule and under the proposed rate schedule, the revenues and profits derived from system services; the efficiency of the Grantee; the quality of the service offered by the Grantee; the fair value cost of the system less depreciation; a fair rate of return over the life of the franchise with respect to Grantee's investment; the extent to which Grantee has adhered to the terms of this Ordinance and the franchise; fairness to City residents, subscribers, and users. The City shall not consider any valuation based upon the franchise and the items of value shall neither be amortized as an expense nor shall a return be paid on them. The City may retain rate consultants as it deems appropriate. If permitted by law or regulation all reasonable charges for such independent consultants shall be paid by Grantee and may be offset against franchise fees. (5) ECC Certification. If applicable, the City shall have the right to petition the Federal Communications Commission or other appropriate agency or organization to obtain rate regulation authority or to petition the federal body to review or regulate rates in the City. (d) PERFORMANCE EVALUATION. (1) Scheduled Evaluations. The City may, at its discretion, hold scheduled performance evaluation sessions annually. All such