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.
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(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.
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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.
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(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.
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(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
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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,
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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
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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.
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(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
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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
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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
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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
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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
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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.
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(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
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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.
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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.
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(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
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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
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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
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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,
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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.
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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
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