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HomeMy WebLinkAbout3191 AN ORDINANCE authorizing the grant of a non-exclusive franchise to such persons as may be designated by the city council, to operate and maintain a community antenna television system in the City of Bremerton; providing for the term of the franchises, selection of the franchisees, franchis~ provisions and restric[ions, rates and charges, franchise fees, and prescribing penalties for violation of the franchise provisions. THE CITY COUNCIL OF THE CITY OF BREMERTON DOES ORDAIN: SECTION 1. Short title. This ordinance shall be known and may be cited as the Bremerton Community Antenna Television Franchise Ordinance. SECTION 2. Definitions. For the purposes of this ordinance, the following terms, phrases, words and their derivations shall have the n]eaning given herein. When not inconsistent with the context, words used in the present tense includ-~. the future. Words in the plural number include the singular nuntber, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. (1) "City~' is the City of Bremerton, Washington, and all the territory within its existing and future territorial corporate limits. (2) "Council" shall mean the governing body of the city. (3) "Community Antenna Television System", "Cable System", "C.A.T.V.", or "System" shall mean a system composed of, without limitation, antenna, cables, wires, lines, towers, wave guides or any other conductors, convertors, equipment of facilities designed, constructed or wired for the purpose of producing, receiving, amplifying and distributing by coaxial cable, audio and/or visual radio, television, electronic or electrical signals to and from persons, subscribers and locations in the franchise area. -- i -- (4) "Franchise" shall include both the franchise granted pursuant to this ordinance and the franchise agreement and all rights, powers and privileges thereunder. (5) "Franchise Agreement" means the separate agreement by which the franchise is granted to the franchisee as required by this ordinance. (6) "Franchisee" or "Grantee" shall mean and include all persons having any rights, powers, privileges, duties, liabilities or obligations under this ordinance and the franchise agreement (herein collectively called the "franchise"). (7) "Gross annual basic subscriber revenues" shall mean any and all compensation and other consideration received directly by the company from subscribers in payment for regularly furnished basic C.A.T.V. Service. Gross annual basic subscriber revenues shall not include installation charges or charges for specific services not included in the regularly furnished services provided to all subscribers, and shall not include any taxes on services furnished by the company imposed directly on any subscriber or user by any city, state or other governmental unit. (8) "Person" is any person, firm, partnership, association, corporation, company or organization of any kind. (9) "Street" shall mean a surface of and the space above and below any public street, right of way, road, highway, freeway, bridge, lane, path, alley, court, sidewalk, parkway, drive, communications or utility easement, now or hereafter existing as such within the franchise area. (10) "Subscriber" shall mean a person whose premises are physically wired and receives basic service from the System. (11) "User" denotes a person utilizing a System channel as a producer, for the purposes of production and/or receipt of material. - 2 - SECTION 3. Franchise generally. (1) Necessit~ of franchise. No person, natural or corporate, or any other entity, shall own or operate a C.A.T.V. System or other system as defined herein, in the City of Bremerton except by franchise granted by the city in the form of a franchise agreement between the city and the franchisee, which shall comply with all the specifications of this ordinance. (2) Contravention of Franchise. A breach by the franchisee of the franchise agreement, in addition to constituting a breach of contract, shall constitute a violation of this ordinance. The cost of any litigation incurred by the city to enforce this ordinance or the franchise granted pursuant hereto, or the franchise agreement, or in relation thereto, or in relation to the cancellation or termination of a franchise shall be reimbursed to the city by the franchisee should the city be successful in its action against the franchisee. Such costs shall include filing fees, costs of depositions, discovery and expert witnesses, all other expenses of suit and a reasonable attorney fee. (3) Complianc~ w~t~ applicable laws and ordinance. The franchise shall at all times during the life of the franchise be subject to all lawful exercise of the police power by the city. The city reserves the right to adopt from time to time in addition to the provisions herein contained such ordinances as may be deemed necessary to the exercise of the police power. Such regulations shall be reasonable and not destructive to the rights herein granted and not in conflict with the laws of the state or other local laws or regulations. SECTION 4. Term and termination of franchise. (1) Term. No franchise granted hereunder, nor any renewal thereof shall be for a term of more than fifteen (15) years. A renewal shall be granted not more than two years prior to the expiration of any existing term following a public proceeding affording due process. - 3 - (2) Termination or forfeiture of franchise. In addition to all other rights and powers pertaining to the city by virtue of this franchise or otherwise, the city reserves the right to terminate and cancel the franchise and all rights and privileges of the grantee hereunder in the event that the grantee: (a) violates any provision of this franchise or any rule, order or determination of the city or city council made pursuant to this franchise, except where such violation, other than of section 22 or subsection (b) below, is without fault or through excusable neglect; (b) becomes insolvent, unable or unwilling to pay its just and owing debt, or is adjudged a bankrupt; (c) attempts to dispose of any of the facilities or property of its C.A.T.V. business to prevent the city fro~ ?urchasing same, as provided for herein; (d) attempts to evade any of the provisions of this franchise or practices any fraud or deceit upon city; or (e) fails to begin construction under a franchise before twelve months from date of receipt of certificate of compliance from. the Federal Communications Commission. (3) Procedures. (a) Any inquiry, proceeding, investigation or other action being taken or proposed to be taken by the city in regards to the operation of a franchisee's cable television system, including action in regard to a change in subscription rates, or any amendments to the franchise ordinance other than an emergency amendment, shall be taken only after thirty (30) days public notice of such action or proposed action is published in a local daily or weekly newspaper having general circulation in the city; a copy of such action or proposed action is served directly on the franchisee; and the franchisee has been given an opportunity to respond in writing and/or at. hearing as may be specified by the city, and ~e~bers of the general public have been given an opportunity to respond or comment in writing' on the action or ?roposed action. - 4 - (b) The public notice required by this section shall state clearly the action or proposed action to be taken, the time provided for response and the person or persons in authority to whom such responses should be addressed, and such other procedures as may be specified by the city. If a hearing is to be held, the Public notice shall give the date and time of such hearing, whether public participation shall be allowed and the procedures by which such participation may be obtained. The franchi~hall be a necessary party to any hearing conducted in regard to its operation. (4) Procedure upon termination. Upon termination of the franchise, or upon expiration of its term, if the company shall not have acquired an extension or renewal thereof and accepted the same, it may have and is hereby granted, the right to enter upon the streets and public ways of the city for the purposes of removing therefrom, any or all of its property and otherwise. In so removing such property, the company shall refill, at its own expense, any excavation that shall be made by it, and shall leave such streets and public ways and places in as good condition as that prevailing prior to the company's removal of its property. SECTION 5. Selection of franchisee. Applicants for franchise will be evaluated according to the following criterion: (a) Installation plan. Preference may be given an installation plan that would provide flexibility needed to adjust to new developments, maintenance practices, and services that would be available to the subscriber and the community immediately and in the future. (b) Rate schedule. Preference may be given to applicants with the most reasonable installation and subscriber rate -- 5 -- schedule. (c) Financial soundness and capability. The evidence of financial ability required in the applicant's proposal shall be such as to assure ability to complete the entire system within a minimum of five (5) years of the date the franchis~receives the FCC Certificate of Compliance. (d) Demonstrated experience in operating a C.A.T.V. System under cit~ franchise. Preference may be given upon evidence of the applicant's experience in operating a C.A.T.V. System under city franchise where such evidence shall show or attempt to show or confirm the ability of the applicant to furnish sufficient and dependable service to the potential public and private users. (2) Hea~ings, notices, publications. The Bremerton City Council shall award a franchise to an applicant only after a public hearing on the application and proposal, notice of which hearing shall be published in a local newspaper of general circulation at least twenty (20) days before the date of the hearing. Any franchise that is granted shall be authorized by a resolution of the city council, which resolution shall be thereafter published in a local newspaper of general circulation. SECTION 6. Territorial area involved. A grantee's franchise area shall be specifically designated by a map attached to the franchise agreement. The franchise area may be extended, added to or otherwise altered by amendment, adding, deleting or altering map attachments to the franchise agreement; provided, such addition, deletion or substantial alteration shall be made only after public notice and a full public proceeding affording due process. SECTION 7. Conditions of street occupancy.. (1) All transmission and distribution structures, - 6 - lines, and equipment erected by the grantee within the franchise area shall be so located as to cause minimum interference with the proper use of streets, and other public ways and places, and to cause minimum interference with the rights and reasonable convenience of property owners who adjoin any of the said streets or other public ways and places. The C.A.T.V. System shall be constructed and operated in compliance with all city, state and national construction and electrical codes and shall be kept current with new codes. The company shall install and maintain its wires, cables, fixtures and other equipment in such manner that they shall not interfere with any installation of the city or of a public utility serving the city. (2) In case of the disturbance of any street, public way, or paved area by the franchisee, it shall, at its own cost and expense and in a manner approved by the city, replace and restore such street, public way or paved area in as good a condition as before the work involving such disturbance was done, as approved by the City Engineer's office. (3) If at any time during the period of franchise, if the city shall lawfully elect to alter or change the grade of any street, sidewalk, alley or other public way, the franchisee, upon reasonable notice by the city shall remove, relay and relocate its poles, wires, cables, underground conduits, manholes and other fixtures at its own expense. (4) Any poles or other fixtures placed in any public way by the franchisee shall be placed in such manner as not to interfere with the usual travel on such public way. (5) The franchisee shall, upon the request of any person holding a building permit issued by the city, temporarily raise or lower its wires to permit the moving of buildings. The expense of such temporary removal or raising or lowering of wires shall be paid by the person requesting the same, and the franchisee shall have the authority to require such payment in - 7 - advance. The franchisee shall be given not less than forty- eight (48) hours advance notice to arrange for such temporary wire changes. (6) The franchisee shall have the authority to trim trees upon and overhanging streets and public ways and places of the franchise area so as to prevent the branches of such trees from coming in contact with the wires and cables of the franchisee except that at the option of the city, such trimming may be done by it or under its supervision and direction at the expense of the franchisee. (7) In all sections of the franchise area where construction plans anticipate placing the cables, wires, or other like facilities of public utilities underground, the city shall give the franchisee sufficient prior notice to allow it to coordinate undergrounding of the franchisee's cables, wires and other equipment at the same time that the public utilities are placed underground. Where undergrounding is already completed at the time the franchisee begins its construction, it shall place its cables, wires and other facilities underground to the maximum extent technically and economically feasible. (8) The franchisee shall, at its expense, protect, support, temporarily disconnect, relocate in the same street or other public ways or remove from the streets or other public place any property of the franchisee when required by the city by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishment of street grade, installation of sewers, drains, water pipes, powerlines, signal lines and tracts, or any other type of structures or improvements by public agencies; provided, however, that the franchisee shall in all such cases have the rights and obligations of abandonment of the property of the company, subject to city ordinances. -- 8 -- (9) The city shall have the right to make additional use, for any public or municipal purpose, of any poles or conduits, controlled or maintained exlusively by or for the franchisee in any street, provided such use by the city does not interfere with the use by the franchisee. SECTION 8. Safety requi.rements. (1) The grantee shall at all times employ ordinary care and shall install and maintain and use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injuries or nuisances to the public. (2) The grantee shall install and maintain its wires, cables, fixtures and other equipment in accordance with requirements of state and national .electrical codes, and in such manner as they will not interfere with any installations of the city or of a public utility serving the city. (3) All structures and all lines, equipment and connections, in, over, under and upon the streets, sidewalks, alleys and public ways or places of the city wherever situated shall at all times be kept and maintained in a safe, suitable, substantial condition and in good order and repair. (4) The grantee shall maintain a force of one or more local agents at all times and shall have sufficient employees to provide safe, adequate and prompt service for all facilities. SECTION 9. Franchise agreement. (1) Any applicant awarded a franchise by city council resolution shall within thirty (30) days of the passage, accept the franchise in writing agreeing to the terms and provisions of the franchise. In addition, the franchisee shall, within thirty (30) days of the date of execution of the franchise agreement, submit his filing of an application for a certificate of compliance with the Federal Communications Commission. Failure of the selected applicant - 9 - to execute such an agreement within thirty (30) days of the city's demand therefore, or failure to file an application for a certificate of compliance as herein required, shall be grounds for immediate revocation of any rights the applicant may have in the franchise. (2) In addition to those matters required elsewhere in this ordinance to be included in the franchise agreement, it must contain the following expressed represen- tations by the franchisee that; (a) It accepts and agrees with all of the provisions of this ordinance, and any supplementary specifica- tions, as to construction, operation, or maintenance of the system, which the city may require in the franchise agreement prior to grant of any franchise and before an applicant bids for such franchise. (b) It recognizes the right of the city to make reasonable amendments to the franchise ordinance during the term of the franchise upon sixty (60) days prior notice to the franchisee or withoutshorter notice withrespecttoemergency amendments. It further recognizes and agrees that the city shall in no way be bound to renew the franchise at the end of any franchise term. (c) It recognizes and agrees that it is not acting as an agent of the city for purposes of this ordinance. (3) No franchise shall be exclusive. (4) Every franchise shall specifically delineate the territorial extent of the city in which the franchise is authorized to operate. (5) The franchise agreement shall contain such further conditions or provisions as may be negotiated between the city and the franchisee except that no such conditions or provisions shall be such as to conflict with any provisions of this ordinance or other law. In case of such conflict, or - 10 - ambiguity between any terms or provisions of the franchise agreement and of this ordinance, the words of this ordinance shall control. SECTION 10. Signal quality requirements. Each franchisee must meet the signal quality standards as set by the Federal Communications Commission so that it delivers 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 t.v. sets in good repair. The sound requirements for FM radio shall also meet Federal Communications Commission requirement standards. SECTION 11. System construction and extension. (1) Significant construction of the cable television system within the franchise area shall be completed within twelve (12) months after receipt by the grantee of a Certificate of Compliance from the Federal Communications Commission; provided, if said Certificate of Compliance is issued subject to conditions not within the control of the grantee, significant construction shall be completed within twelve (12) months after compliance with all such conditions by the city or the appropriate person or agency. (2) Construction within any extensions of or additions to any granted franchise area shall be substantially completed within twelve (12) months of the time the extension is granted, unless the extension is so large so as to be unfeasible, economically or timewise. (3) Franchisee, whenever it shall receive a request for service from at least ten subscribers within 1320 cable feet of its trunk cable, shall extend its system to such sub- scribers at no cost to the subscribers for system extension other than the usual connection fees for all subscribers, provided that such extension is technically and physically feasible. The 1320 feet shall be measured in extension length of franchisee's cable required for service located within the - 11 - public way or easement and shall not include length of necessary service drop to the subscriber's home or premises. (4) No person, firm or corporation in the franchise area shall be arbitrarily refused service. However, in recognition of the capital costs involved, for unusual circumstances, such as requirement for underground cable, or more than 150 feet of distance from distribution cable to connection of service to subscribers, or a density of less than ten subscribers per 1320 feet of cable system, in order to prevent inequitable burdens on potential cable subscribers in more densely populated areas, service may be made available on the basis of cost of materials, labor and easements. SECTION 12. Local office; complaints. The franchisee shall maintain a local business office or agent which subscribers may telephone during regular business hours without incurring added message or toll charges so that C.A.T.V. maintenance service may be promptly available. Should a subscriber have an unresolved complaint regarding the quality of cable television service, equipment malfunctions or similar matters, the city may require a representative of the franchisee to meet jointly with the subscriber and the city engineer or other representative of the city at such reasonable time and place as the city may designate, to fully discuss and resolve such matters. SECTION 13. Public service installations. The franchisee shall without charge for installation, maintenance or service, make single installations of its standard community antenna service facilities at each fire and police station, public and private school within the city. The franchisee shall, without charge for installation, maintenance or service, make single installations of its standard community antenna services to the city hall and all public libraries. Such installations shall be made at such reasonable locations - 12 - as' shall be requested by the respective units of government or educatioD~l institu- tions. Any charge for relocation of such installations sb~ll, however, be charged at actual cost. Additional installations at the same location may be made at cost plus ten per cent, if the franchisee makes such additional installations. No monthly service charges shall be made for distribution of the franchisee's signals within such publicly owned buildings. SECTION 14. Other business activities. (1) The grantee shall not engage in the business of selling, repairing or installing television receivers, radio receivers or accessories for such receivers within the City of Br~m~_rton during the term of this franchise. (2) The franchise authorizes only the operation of a C.A.T.V. System as provided for herein, and does not take the place of any other franchise, license or permit which might be required by the law of the grantee. SECTION 15. Repair. (1) Any damage caused to the property of building owners or users or any other person by the franchisee's negligence, shall be repaired fully by the franchisee. (2) If at any time the franchisee's cable and/or other equi~nent is negligently disturbed, damaged, or severed, the cost of repair shall be paid by the party responsible for said damage. The franchisee may charge the responsible party for the time and materials expended for repair of said damage. Further, the city will cooperate with the franchisee to assist it in enforcing any charge or penalization arising frc~ negligent cable severing or other damage to property of the franchisee. SECTION 16. New Developments. It shall be the policy of the city to liberally 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 television and radio signals which will afford it an opportunity more effectively, efficiently or economically to serve its custc~ers. Provided, however, tb~t this section shall not be construed to require the city to make any amendments to this ordinance. SECTION R~ergency use of facilities. The franchisee shall, in the case of any ~mergency or disaster, make its system available without charge to the city or to any other governmental or civil defense agency that the city shall designate. SECTION 18. Removal of facilities upon request. Upon termination of service to any subscriber, the 13 grantee shall promptly remove all its facilities and equipment from the premises of said subscriber upon his request. SECTION 19. Prohibition of discrimi.natory or ~r~ferential ~r~actice. The grantee shall not, as to rates, charges, services, facilities, rules, regulations or in any other respect, take or grant, any preference or advantage to any person nor subject any person to any prejudice or disadvantage, provided that nothing in this franchise shall be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classi- fication would be entitled, and provided further that connection and service charges may be waived, modified, during promotional campaigns of the grantee. SECTION 20. C~ity r.i..ghts in franchise. (1) The right is hereby reserved to the city or the city council to adopt, in addition to the provisions contained herein and in existing applicable ordinances, such additional regulations as it shall find necessary in the exercise of the police power; provided that such regulations, by ordinance or otherwise, shall be reasonable and not in conflict with the rights herein granted. (2) The city shall have the right to supervise all construction or installation work performed subject to the provisions of the franchise and make such inspection that it shall find necessary to insure compliance with the terms of this franchise and other pertinent provisions of the law. (3) At the expiration for the term for which the franchise is granted or upon its termination or cancellation, as provided for herein, the city shall have the right to require the grantee to remove at its own expense all visable portions of the C.A.T.V. System from all public ways within the city. - 14 - (4~ After the expiration of the term for which the franchise is granted or after its termination and cancellation as provided for herein, the city shall have the right to determine whether the grantee may continue to operate and maintain the C.A.T.V. System pending the decision of the city as to the future maintenance and operation of such system. SECTION 21. Right of_.citY to purchase C.A.T.V. System Upon expiration of the term of the franchise, or upon any other termination or revocation thereof, as provided for herein, or by law, the city, at its election, and upon the payment to the franchisee of a price equal to the agreed or arbitrated fair market value of the system including "good will", shall have the right to purchase and take over the system. However, in determining fair market value, the salvage value, depreciated book value, and replacement cost of the system shall be consider- ed, and further, in the event of dispute, the matter, at the option of either party, may be submitted to an independant arbitrator for binding determinationlin conformance with arbitration procedures of the American Arbitration Association. Upon the exercise of this option by the city and its service of an official notice of such action upon the franchisee, and upon payment of the purchase price, the franchisee shall immediately transfer to the city possession and title to all facilities and property, real and personal, of the C.A.T.V. business, free from any and all liens and encumbrances not agreed to be assumed by the city in lieu of some portion of the purchase price set forth above, and the franchisee shall execute such warranty deeds or other instruments of conveyance to the city as shall be necessary for this purpose. SECTION 22. C~ange of c~ntrgl ?f. grantee. Prior approval of the city council shall be required where ownership or control of more than thirty (30) per cent of the right of - 15- control of grantee is acquired by a person or a group of persons acting in concert, none of whom already own or control thirty (30) per cent or more of such right of control, singularly or collectively. By its acceptance of the franchise, the grantee specifically grants and agrees that any such acquisition occurring without prior approval from the city council shall constitute a violation of this franchise by the grantee. SECTION 23. Transfer of franchise. The grantee shall not transfer the franchise to another person without prior approval of the city by ordinance. SECTION 24. C~t~'s right of intervention. The grantee agrees not to oppose intervention by the city in any suit or proceeding to which the grantee is a party and in which the city has a legitimate interest. SECTION 25. O~en access. The public access channel of the franchisee shall be operated in a manner consistent with the principal of fairness and equal accessability of its facilities, equipment, channels, agencies, or other entities in the franchise area having a legitimate use for the channel; and no one shall be arbitrarily excluded from its use; allocation of use of said facilities shall be made according to the rules or decisions of regulatory agencies affecting the same, and where such rules or decisions are not effective to resolve a dispute between users or potential users, the matter shall be submitted for resolution by the Bremerton City Council. SECTION 26. ~i~ing and communications with regulatory ~gencies. Copies of all formal documents submitted by the grantee to the Federal Communications Commission Securities and Exchange Commission, or other Federal or state regulatory commission or agency having jurisdiction in respect to any matters affecting C.A.T.V. ~perations authorized pursuant to this franchise, shall also besubmitted simultaneously tothe city councilupond~n~nd. - 16 - SECTION 27. Maps, plats and reports. (1) Any grantee shall file with the city clerk true and accurate maps or plats of all existing and proposed installations. (2) Any grantee shall file annually with the city clerk not later than sixty (60) days after the end of the grantee's fiscal year, a copy of its report to its stockholders (if it prepares such a report), an income statement applicable to its operations during the preceding twelve (12) month period, a balance sheet, and a statement of its properties devoted to C.A.T.V. operations, by catagories, giving its investment in such properties on the basis of original costs, less applicable depreciation. These reports shall be prepared or approved by a certified public accountant and there shall be submitted along with them such other reasonable information as the city council shall request with respect to the grantee's properties and expenses related to its C.A.T.V. operations within the city. It shall also make available to the city auditor upon demand of city council any books, records, maps, plans, income tax returns and other like materials. (3) The grantee shall make available upon request of the city council a current list of its shareholders and bond holders. SECTION 28. Liability and indemnification. (1) The franchisee shall indemnify and hold harmless the City of Bremerton at all times during the term of the franchise granted hereby against all damages including but not limited to damages arising out of copyright infringements and other damages arising out of the installation, ~Operation or maintenance of the C.A.T.V. System authorized herein, whether or not any act or omission complained of is authorized, allowed or prohibited by the franchise and all reasonable expenses incurred by the city in defending itself. - 17 - (2) The franchisee shall be required to maintain 'insuranCe~in such forms and in such companies as shall be approved by the city, such approval not to be unreasonably withheld, to protect the city and the franchisee from and against any and all claims, injury or damage to persons or property both real and personal, caused by the construction, erection, operation, or maintenance of any aspect of the system. The amount of such insurance shall be not less than the following: (a) One hundred thousand dollars ($100,000.00) for bodily injury or death to any one person without fee limit, however, a three hundred thousand dollar ($300,000.00) for bodily injury or death resulting from any one accident. (b) Fifty thousand dollars ($50,000.00) for property damage resulting from any one accident. Provided that all such insurance may contain reasonable deductible provisions not to exceed $1,000.00 for any type of coverage, and provided further, the City may require that any and all investigation of claims made by any person, firm, or corporation against the City arising out of any use or misuse of privileges granted to the frand~is~ereunder by, or at the expense of the franchis~r its shall be made insurer. Workman's compensation shall also be provided as required by the laws of the State of Washington, as amended. (3) Franchisee shall post a surety bond in the face amount of five thousand dollars ($5,000.00) with one or more sufficient sureties satisfactory to the City, which bond shall be in effect at all times during the period of th~· franchise, and said bond shall insure and guarantee the faithful perfor- mance by the franchisee of all the terms, conditions and requirements of this ordinance, including but not limited to any and all construction of franchisee, its agents, servants or - 18 - subcontractors, and including but not limited in the conditions of the bond that the franchisee will indemnify and save the city harmless from all claims, actions or damages of every kind and description which may accrue to or be suffered by, any person by reason of any construction of any opening in any street, and that franchisee will replace~and restore such street to as good a state or condition as at the time of the commencement of said work, and providing a recovery on the bond in case of failure to perform any of the terms and conditions of this ordinance. (4) The insurance policy and bonds obtained by the grantee in compliance with this section must be approved by the city council and such insurance policy and bond, along with evidence of payment of required premium, shall be filed and maintained with the city clerk during the term of this franchise. SECTION 29. Franchise fees. (1) Annual fee. During the term of any franchise granted pursuant to this ordinance, the franchisee 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, an annual franchise fee in the amount equal to three (3) per cent of the annual gross subscriber revenues received by it from operations conducted within the city. No other fee, charge or consideration shall be-imposed, provided that should the Federal Communications Commission allow such additional fees, charges, or considerations, the city may impose it. (2) Method of computation. Sales tax or other taxes levied directly on a per subscription basis and collected by franchisee shall be deducted from the Gross Subscriber Revenues before computation of sums due the city is made. Payments due the city under the terms of this ordinance shall - 19 - be computed quarterly for the preceding quarter and shall be paid on or before the thirtieth calendar day from each said computation date at the office of the city treasurer during his regular business hours. The city shall be furnished a statement with each payment, certified as correct by the franchisee and prepared by a company bookkeeper, reflecting the total amount of Gross Subscriber Revenues, and the above charges, deductions and computations for the three months payment period covered by the payment. (3) Rights of recomputa~.ion. No acceptance of any payments 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 as a franchisee under this ordinance or for the performance of any other obligation hereunder. (4) Failure to make r.equired payment. Failure to pay any fee required by this section shall be grounds for suspension of the franchise granted, and reinstatement thereof may be had only upon resolution by the city council, and payment of the delinquent fee or fees plus any interest or penalties as may be required by the resolution. SECTION 30. Subscriber rates. (1) Limitations on rates. The charges made to subscribers for services of the franchisee hereunder shall be fair and reasonable and no higher than necessary to meet all costs of the service (assuming efficient and economical manage- ment), and provide a fair return. (2) Adjustments to rates. The city council shall have the power, authority and right to cause the franchisee's rates .and charges to conform to the provisions of subsection 1 hereof, and for this purpose, after a public hearing affording proper notice to the franchisee and any other interested parties, it may deny increases or order reductions in such rates and charges when it determines that in the absence of such action - 20 - on its part, the franchisee's rates and charges or proposed increased rates and charges will not conform to said subsection. (3) Rate schedule. An applicant for franchise shall include in its proposal rates and charges according to the following schedule which shall be approved by the city council and shall not be raised without approval of the city council after an appropriate public hearing affording due process: (a) Standard rates and charqes. (i) Charges for the following services must be specified: (aa) Initial tap-in and connection charges (t.v. and/or radio, residential or commercial). (bb) Re-connection. (cc) Additional installation at same location, each. (dd) Each repositioning at same location ('relocation'). (ii) Monthly rates. (aa) First t.v. or radio outlet, residential or commercial. (bb) Additional t.v. or radio outlet, each. (b) Hotels, motels, resthomes and hospitals containing more than ten rental units to which service is pr~.vided. (i) The cost of installing service to building and units contained therein. (ii) monthly rates. (c) Multiple dwelling units (contained within one structure or a group of structures located in one complex) where all service is billed to one customer. (i) Cost of installing service to building and units contained therein. (ii) Monthly rates, per t.v. outlet, - 21 - according to the following schedule: Number of dwelli~ units served. 1 through 5 6 through 49 50 through 99 100 and over (d) Disconnection. There shall be no charge for disconnection of any of the aforementioned installations or connections. If a subscriber has failed to pay a properly due monthly subscriber fee, sixty (60) days after the due date of said fee, the franchisee may cause disconnection of the subscriber's cable installation; however, upon payment in full of the delinquent subscriber fee, franchisee shall promptly reinstate the subscriber's cable service, at the reconnection rate. (4) Advanced charge. The franchisee is authorized to charge in advance. (5) Other governmental regulation of rates. If, in fu~~, the State of Washington or the United States the Government or any regulatory agencies thereof regulates the rates of the franchisee for the service provided for in the franchise, this section shall be of no effect during such regulation to the extent of any conflict therewith. (6) Subscriber refunds on termination of service. If service to a subscriber of less than one year is terminated without good cause or because the grantee ceases to operate the C.A.T.V. business authorized herein for any reason, except expiration of this franchise, the grantee shall refund to said subscriber an amount equal to the initial tap-in and connection charges paid by him divided by twelve (12) multiplied by a number equal to twelve (12) minus the number of months the subscriber has been on the system. - 22 - SECTION 31. Federal regulation. The rights and obligations established hereby shall be at all times subject to and conditioned upon authorization, approval and regulation of the Federal Communications Commission. Any modification resulting from amendment of Section 76.31 ("Franchise Standards") of the rules and regulations of the Federal Communications Commission shall be incorporated into a franchise as of the date such modifications become obligatory under FCC regulations, or, in the event no obligatory date is established, within one year of adoption or at the time of franchise renewal, whichever occurs first. SECTION 32. Severability. If any parts of this ordinance are for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The city council hereby declares that it would have passed this ordinance and each part or parts thereof irrespective of the fact that any one part or parts be declared invalid. SECTION 33. Ordinances repealed. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. APPROVED on first reading this 2~ day of ...~¢~/'~,l~eF , 1974. PASSED on second reading by the City Council of the City of Bremerton, signed by the Mayor and attested by the City Clerk in authentication of such passage this J/SF day of , 1974. ATTEST: G. C. Y~ON, SR., City Clerk - 23-