022 of 1989 - Master Cable Communication Ordinance I
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SALT LAKE CITY ORDINANCE
No. 2 of 1989
(MASTER CABLE COMMUNICATION ORDINANCE)
AN ORDINANCE AMENDING CHAPTER 5. 20 OF THE SALT LAKE
CITY CODE RELATING TO CABLE COMMUNICATION; PROVIDING FOR THE
GRANTING, RENEWAL AND ENFORCEMENT OF FRANCHISES AND THE
TERMS AND CONDITIONS THEREOF.
WHEREAS, time and technological changes have made it
necessary for the City to revise its Ordinances regulating
cable television in compliance with federal law; and
WHEREAS, the City has worked closely to negotiate
changes in the Cable Television Franchise Agreement with
potential cable franchisees; and
WHEREAS, the City believes the following Ordinance to
be in compliance with federal regulatory guidelines for
cable television and in the best interests of the City;
NOW, THEREFORE,
Be it ordained by the City Council of Salt Lake City,
Utah:
SECTION 1. That existing Chaper 5. 20.010, et seq. ,
attached hereto and incorporated herein by reference, is
hereby repealed.
SECTION 2. That Chapter 5.20.010, et seq. , be
reenacted as follows:
Sec. 5.20.010 PURPOSE. The purpose of this Ordinance
is to regulate in the public interest the operation of cable
communications systems and their use of the public rights-
of-way by establishing procedures for granting and
terminating franchises, by prescribing rights and duties of
operators and users of cable communication systems, and by
providing generally for cable communications services to the
citizens of the City of Salt Lake_.
Sec 5.20.020 SHORT TITLE. This Ordinance shall
constitute the "Cable Communication Ordinance" of the City
of Salt Lake and may be referred to as such.
Sec. 5.20.030 DEFINITIONS OF TERMS. For the purposes
of this Ordinance the following terms, phrases, words,
abbreviations and derivations shall have the following
meaning. When not inconsistent with the context, words used
in the present tense shall include the future tense, words
in the plural number include the singular number and words
in the singular number include the plural number.
(A) "Access Channel" means a channel designated and
maintained by a cable communications system for
programming not originated or procured by the
system, including, but not limited to, the local
government, the educational, and public access
channels.
(B) "Affiliate" means a wholly owned entity which owns
or controls, is owned or controlled by, or is
under common ownership with the Grantee.
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(C) "Cable Act" means the Cable Communications Policy
Act of 1984, as amended.
(D) "Cable Communication System" or "System" means a
system employing antennae, microwave, wires, wave-
guides, coaxial cables or other conductors,
equipment, or facilities designed, constructed, or
used for the purpose of:
( 1 ) collecting and amplifying local and distant
broadcast, television, or radio signals and
distributing and transmitting such signals;
( 2) transmitting original cablecast programming
not received through television broadcast
signals;
(3) transmitting television pictures, film and
video tape programs not received through
broadcast television signals, whether or not
encoded or processed to permit reception by
only selected receivers; and
(4) transmitting and receiving all other
signals - digital, voice, or audiovisual .
(E) "City" means the City of Salt Lake, or the lawful
successor, transferee or assignee thereof.
(F) "FCC" means Federal Communications Commission, or
its successor.
(G) "Franchise" means and includes any authorization
granted hereunder in terms of franchise,
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privilege, permit, license, or otherwise to
construct, operate and maintain a Cable
Communication System within all or a specified
area of the City for the purpose of offering cable
services or other services to Subscribers. Any
such authorization, in whatever form granted,
shall not supersede the requirement to obtain any
other license or permit required for the privilege
of transacting and carrying on a business within
the City as required by other ordinances and laws
of this City.
(H) "Grantee" means any person, firm, or corporation
granted a Franchise by the City.
( I ) "Gross Revenues. "
( 1 ) "Gross Revenues" means all revenues, as
determined according to generally accepted
accounting principles consistently applied,
derived directly or indirectly by the
Grantee, arising from or attributable to
operation of the Cable Communication System
in the Service Area, including but not
limited to:
(a) revenue from all charges for services
provided to Subscribers of entertainment
and non-entertainment services
( including leased access fees) ;
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(b) revenue from all charges for the
insertion of commercial advertisements
upon the Cable Communication System in
the Service Area;
(c) revenue from all charges for the leased
use of studios in the Service Area;
(d) revenue from all charges for the
installation, connection and
reinstatement of equipment necessary for
the utilization of the Cable
Communication System and the provision
of subscriber and other services in the
Service Area; and
(e) Grantee's pro rata portion of any
revenues on a subscriber base basis
derived from any other person or source
arising from or attributable to
Grantee' s operation of the Cable
Communication System in the Service
Area, to which the City is authorized to
apply a franchise fee under federal,
state or local law as it may exist from
time to time during the term of the
Franchise.
(J) "Public Way" shall mean the surface of, and the
space above and below, any public street, highway,
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freeway, bridge, land path, alley, court,
boulevard, sidewalk, parkway, way, lane, public
way, drive, circle or other public right-of-way
including public utility easements, dedicated
utility strips or rights-of-way dedicated for
compatible uses, and _any temporary or permanent
fixtures or improvements located thereon now or
hereafter held by the City. Public Way shall also
mean any easement now or hereafter held by the
City within the Service Area for the purpose of
public travel, or for utility or public services
use dedicated for compatible uses. Public Way
shall include other easements or rights-of-way as
shall within their proper use and meaning entitle
the City and the Grantee with the City' s approval
use for the purposes of installing or transmitting
Grantee' s cable services or other service over
poles, wires, cables, conductors, ducts, conduits,
vaults, manholes, amplifiers, compliances,
attachments and other property as may be
ordinarily necessary and pertinent to the System.
(K) "Service Area" means the present municipal
boundaries of the City, and shall include any
additions thereto by annexation or other legal
means.
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( L) "Subscriber" or "Customer" means any person or
entity lawfully receiving for consideration,
direct or indirect, any service of the Grantee' s
cable communications system.
Sec. 5.20.040 REQUIREMENT FOR FRANCHISE. Subject to
applicable federal, state and local law, it shall be
unlawful for any person to install, construct, operate or
maintain a cable communications system on streets or the
Public Way within all or any part of the City without first
obtaining a Franchise under the terms and provisions of this
Ordinance.
Sec. 5.20.050 CONDITIONS OF STREET OCCUPANCY. All
transmission and distribution structures, poles, other
lines, and equipment installed or erected by the Grantee
pursuant to the terms hereof shall be located so as to cause
a minimum of interference with the proper use of Public
Ways. All cables, wires and other equipment shall be
installed, where possible, parallel with electric and
telephone lines.
Sec. 5.20.060 RESTORATION OF PUBLIC WAYS. If during
the course of the Grantee' s construction, operation, or
maintenance of the cable communications system there occurs
a disturbance of any Public Way, the Grantee shall, at its
expense, replace and restore such Public Way to a condition
comparable to the condition of the Public Way existing
immediately prior to such disturbance.
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Sec. 5.20.070 RELOCATION.
(A) Upon receipt of reasonable advance notice, the
Grantee shall, at its own expense, protect,
support, temporarily disconnect, relocate in the
Public Way, or remove from the Public Way, any
property of the Grantee when lawfully required by
the City by reason of traffic conditions; public
safety; street abandonment; freeway and street
construction; change or establishment of street
grade; installation of sewers, drains, or gas or
water pipes; or any other type of structures or
improvements by the City; but, the Grantee shall
in all cases, have the right of abandonment of its
property.
(B) The Grantee shall, on the request of any person
holding a building moving permit issued by the
City, temporarily raise or lower its wires to
permit the moving of such building, provided: ( 1 )
the expense of such temporary raising and lowering
of wires is paid by said person, including, if
required by the Grantee, making such payment in
advance; and (2 ) the Grantee is given not less
than seven (7) business days advance written
notice to arrange for such temporary wire changes.
Sec. 5.20.080. TRIMMING OF TREES AND SHRUBBERY. The
Grantee shall have the authority to trim trees or other
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natural growth overhanging any part of its Cable
Communications System in the Service Area so as to prevent
branches from coming in contact with Grantee' s wires,
cables, or other equipment. Grantee shall reasonably
compensate the City or property owner for any damages caused
by such trimming, or shall, in its sole discretion and at
its own expense, reasonably replace all trees or shrubs
damaged as a result of any construction of the system
undertaken by Grantee. The provisions of this section do
not supercede the requirements of the Urban Forestry
Ordinance.
Sec. 5.20.090. FRANCHISE AUTHORITY USE OF GRANTEE'S
POLES AND CONDUITS. Subject to any applicable state or
federal regulations or tariffs, the City shall, after giving
written notice, have the right to make use of any poles or
conduits controlled or maintained by or for use of the
Grantee, that are located in any Public Way. Such use by
the City shall not interfere with current or future use by
the Grantee. Further, to the extent not expressly precluded
by law, the City agrees to indemnify the Grantee from any
damages arising from or attributable to such use.
Sec. 5.20.100. SAFETY REQUIREMENTS.
(A) Construction, installation and maintenance of the
cable communications system shall be performed in
an orderly manner.
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(B) Grantee shall install and maintain its wires,
cables, fixtures and other equipment in accordance
with applicable safety codes or technical
requirements, including, but not limited to,
National Electrical Safety Code (National Bureau
of Standards) ; National Electrical Code (National
Bureau of Fire Underwriters); and applicable FCC
or other federal, state or local regulations, and
in such manner that they will not interfere with
any installations of the City or any public
utility. All lines, equipment and connections in,
over, under, and upon the streets and private
property within the City, wherever situated or
located, shall at all times be kept and maintained
in a safe and suitable condition and in good order
and repair. All installations shall be made so as
not to impair the fire integrity of any building.
The cable communications system shall not endanger
nor interfere with the safety of persons or
property in the Service Area.
Sec. 5.20.110. AERIAL AND UNDERGROUND CONSTRUCTION.
(A) In those portions of the Service Area where the
transmission or distribution facilities of the
public utilities providing telephone and electric
services are underground, the Grantee likewise
shall construct, operate and maintain its
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transmission and distribution facilities
underground (except for ground-mounted
appurtenances such as subscriber taps, line
extenders, system passive devices, amplifier,
power supplies, pedestals, etc. ) provided that the
underground facilities are capable of receiving
the equipment without technical degradation of the
cable communications system's signal quality. In
those parts of the Service Area where the
transmission or distribution facilities of the
public utilities are both aerial and underground,
Grantee shall have the sole discretion to
construct, operate and maintain all of its
transmission and distribution facilities, or any
part thereof, aerially or underground.
(B) Notwithstanding anything to the contrary contained
in this section, in the event that all of the
transmission or distribution facilities of the
public utilities providing telephone
communications and electric services in a given
area are to be placed underground, upon 90 days
notice Grantee shall be required to place all of
its transmission and distribution facilities
underground in the given area concurrent with
placement by the utilities, and thereafter
construct or operate and maintain all of its
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transmission and distribution facilities
underground in the given area.
Sec. 5.20.120. EXTENSION OF SERVICE.
(A) Authorization. Grantee is hereby authorized to
extend the cable communications system throughout
the Service Area.
(B) Expansion Plan. Grantee shall file with the City
each year with its annual report a five ( 5 ) year
expansion plan indicating Grantee' s present plan
for construction, rebuilding, or overbuilding the
Service Area, including target dates for
completion. The expansion plan will be submitted
in a format mutually acceptable to the Grantee and
the City.
(C) Requirements.
( 1 ) Whenever Grantee shall receive a request for
service from at least fifteen or more
Subscribers within 1320 cable bearing strand
feet (one-quarter cable mile) of its trunk
cable, it shall extend its cable
communications system to such Subscribers at
its normal connection fee; provided that such
extension is technically feasible, will not
adversely affect the operation of the Cable
Communications System, and Grantee is able to
reasonably obtain all easements which are
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necessary to extend service relating thereto.
The extension of services shall be completed
within 60 days of the date of request.
( 2) No Subscriber shall be refused service
arbitrarily. However, for unusual
circumstances, such as a Subscriber' s request
to locate his cable drop underground,
existence of more than one hundred fifty
( 150) feet of distance from distribution
cable to connection of Service to
Subscribers, or a density of less than
fifteen ( 15 ) Subscribers per 1320 cable
bearing strand feet of trunk or distribution
cable, cable service or other service may be
made available on the basis of a capital
contribution in aid of construction,
including cost of material, labor and
easements. For the purpose of determining
the amount of capital contribution in aid of
construction to be borne by Grantee and
Subscribers in the area in which Cable
Service may be expanded, Grantee will
contribute an amount equal to the
construction and other costs, multiplied by a
fraction whose numerator equals the actual
number of potential Subscribers per 1320
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cable-bearing strand feet of its trunks or
distribution cable, and whose denominator
equals fifteen ( 15) Subscribers. The
remainder of the construction and other costs
will be charged to the potential subscribers
when or if they subscribe on a pro rata
basis. Grantee may require that the payment
of the capital contribution in aid of
construction borne by such potential
Subscribers be paid in advance. The
Subscriber shall be given a written estimate
of such payment prior to the beginning of
construction, and shall in no event be
required to pay more than five percent ( 5%)
over this estimate. In lieu of directly
charging for construction costs, Grantee may
implement alternative pricing structures for
services rendered which reflect
disproportionate construction and related
costs incidental to serving low density or
other capital intensive areas.
Sec. 5.20.130. SERVICES TO PUBLIC BUILDINGS.
(A) The Grantee shall provide upon demand and without
charge a minimum of one ( 1 ) outlet of basic
service to each governmental office building, fire
station, police station, and public school
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building within the service area where the drop
line from the feeder cable to said buildings or
premises is less than 150 cable feet, and to the
City/County building at 400 South and State
Streets. The Grantee shall provide one ( 1 ) outlet
of basic service to each governmental office
building, fire station, police station, and public
school building within the service area where the
drop line from the feeder cable to said buildings
or premises exceeds 150 cable feet upon receipt of
payment for the incremental cost of such drop line
in excess of 150 cable feet. The City has the
right to request additional outlets in any given
building for which the City shall pay the
incremental cost of installation, as well as the
cost of any equipment necessary to ensure such
distribution does not adversely affect the
Grantee' s Cable Communication System. These
outlets shall not be used to distribute or sell
cable services in or throughout such buildings;
nor shall such outlets be located in common or
public areas open to the public.
(B) Users of such outlets shall hold Grantee harmless
from any and all liability or claims arising out
of their use of such outlets, including, but not
limited to, those arising from copyright
liability.
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Sec. 5.20.140. EMERGENCY OVERRIDE. In the case that
the Mayor or the Mayor' s designee declares a state of
emergency or disaster, the Grantee shall, upon request of
the City, make available to the City a system audio override
through which emergency information and instructions may be
given during the emergency or disaster period.
Sec. 5.20.150 SYSTEM REQUIREMENTS. Any cable
communications system permitted to be installed and operated
hereunder:
(A) shall have a minimum capacity of twenty ( 20 )
channels;
(B) shall be operationally capable of relaying to
subscriber drops (i.e. terminals) those television
or radio broadcast signals for the carriage of
which the Grantee is now or hereafter required by
the Federal Communications Commission;
(C) future construction shall have, if technically
practicable, the capacity for nonvoice return
communication such that (a) return communications
are capable of being received and processed both
at the head-end for the Service Area in which the
communication originates and at a main head-end
for the Service Area served by the Grantee; (b) at
the option of the Subscriber, no return signals
will be communicated; and (c) the system will
include technical safeguards calculated to deter
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interception of return communications by third
parties;
(D) shall distribute in color television signals which
it receives in color;
(E) shall provide at least one (1 ) Access Channel for
the City of Salt Lake, and at least one ( 1 ) Access
Channel for educational and public use. All
Access Channels shall be carried throughout the
Service Area and shall be made available to
subscribers without charge; and
(F) shall provide, to the extent technically
practicable, a microwave receiver and the
necessary connections to receive transmissions
from the City for the government access channels
and transmit those signals over the Cable
Communication System.
Sec. 5.20.160. EDUCATIONAL AND MUNICIPAL SERVICES.
On reimbursement of actual cost for installation and
periodic maintenance, the Grantee shall provide a return
link, if technically practicable, permitting transmission of
originated program material between (a) each public building
within the Service Area designated by the City and each
state-accredited public or private educational institution
located within the Service Area that requests such
installation; and (b) the head-end of the Grantee.
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Sec. 5.20.170. COMMUNITY ACCESS SERVICES.
(A) The Grantee shall provide for or accommodate
public access programming.
(B) The purpose of the public access channel is to
provide a channel through which citizens of civic
organizations, _ cultural and arts organizations can
promote and encourage programming that will be of
benefit to the community within Service Area.
(C) Access channel assignments shall be made by the
Grantee in consultation with the City and shall be
uniform throughout the City.
Sec. 5.20.180. COMPATIBILITY AND INTERCONNECTION.
All Cable Communication Systems franchised hereunder shall,
insofar as technically and economically feasible, be
compatible with and able to tie into all other systems
within and adjacent to the City.
Sec. 5.20.190. FRANCHISE FEE.
(A) Grantee shall pay to the City a Franchise fee
equal to 5% of the Gross Revenues received by the
Grantee from the operation of the Cable
Communication System. Franchise fee payments due
to the City under this section shall be computed
quarterly. For the purpose of the Franchise fee
payment computation, the applicable accounting
period shall be a calendar year, unless otherwise
agreed to in writing by the City and Grantee.
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(B) The quarterly Franchise fee payments shall be due
and payable ninety (90) days after the close of
the quarter. Each payment shall be accompanied by
a brief report from a representative of Grantee
showing the basis for the computation and a
written statement signed under penalty of perjury
by an officer of the Grantee, which identifies in
detail the sources and amounts of Gross Revenues
received by the Grantee during the quarter for
which payment is made. No acceptance of any
payment shall not be construed as an accord that
the amount paid is in fact the correct amount, nor
shall such acceptance of payment be construed as a
release of any claim City may have for further or
additional sums payable under the provisions of
this permit.
(C) Any Franchise Fees which remain unpaid after the
dates specified in Subsection (B) above shall be
delinquent and shall thereafter accrue interest at
18% per year until paid.
(D) The Grantee shall, upon reasonable notice from the
City, make available to the City or its designated
representatives full billing records for
confidential inspection and audit. If the results
of the audit show an underpayment of greater than
five ( 5) percent, the Grantee will pay all costs
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associated with the audit in addition to any other
amounts owed as shown by the audit. If the
results of the audit show an underpayment of
greater than ten ( 10) percent, the Grantee will
pay the cost of the audit plus fifty ( 50) percent
of the total error as penalty in addition to any
amount owed as shown by the audit. If the results
of the audit show an underpayment of less than
five ( 5) percent or an overpayment, City shall
pays its own costs associated with the audit.
(E) In the event the results of the audit are
disputed, the City may elect to arbitrate the
dispute or take any other appropriate action. In
the event the City elects to arbitrate, the City
and the Grantee shall each select an independent
auditor at their own cost. The two auditors will
agree upon the results of the audit. If the two
independent auditors cannot agree upon the results
of the audit, a third auditor will be selected by
the two independent auditors to make a final
determination. The determination of the third
independent auditor will be final.
(F) The period of limitation for recovery of any
Franchise fee payable hereunder shall be five ( 5 )
years from the date on which payment by the
Grantee is due. Unless within five ( 5 ) years from
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and after said payment due date, the City
initiates a lawsuit for recovery of such Franchise
fees in a court of competent jurisdiction, such
recovery shall be barred, and the City shall be
estopped from asserting any claims whatsoever
against the Grantee relating to any such alleged
deficiencies.
(G) If Grantee challenges the right of the City to
collect the Franchise fee provided by this
Ordinance, any relief requested by Grantee and
awarded to it by virtue of such challenge shall be
prospective only from and after the date of the
filing of the initial pleading seeking such relief
in a court of competent jurisdiction. Grantee
shall waive any and all claims or rights to
collect back from the City or obtain credit
therefor against future payment obligations, any
amounts collected by the City prior to the filing
of the initial pleading seeking such relief in a
court of competent jurisdiction. In the event
Grantee' s challenge to any Franchise fee payments
should result in an initial judgment in its favor,
Grantee shall continue to make all Franchise fee
payments pending an appeal by the City to a court
of last resort. In the event the court of last
resort determines that the City is not entitled to
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collect any or all of the Franchise fee, the City
shall refund to Grantee all payments made
subsequent to the filing of the initial action by
Grantee, together with interest on such moneys
determined by the actual rate of return on the
average of all investments of City during the
period for which such funds were paid after the
judgment.
Sec. 5.20.200. RATES AND CHARGES. The City does not
intend to regulate the rates for the provision of cable
service and other service except to the extent permitted
pursuant to applicable federal, state and local law, and
expressly provided herein. From time to time, Grantee may
change its rates and charges including, but not limited to,
the implementation of additional charges and rates; provided
that Grantee give thirty (30) days notice to the City.
Sec. 5.20.210. RENEWAL OF FRANCHISE.
(A) Proceedings undertaken by the City relating to
renewal of the Grantee' s Franchise shall be
governed by and comply with the provisions of
Section 626 of the Cable Act (as such existed as
of the effective date of the Cable Act) , unless
the procedures and substantive protections set
forth therein shall be deemed to be preempted and
superseded by the provisions of any subsequent
provision of federal or state law.
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(B) In addition to the procedures set forth in said
Section 626(a) , the City shall notify Grantee of
its preliminary assessments regarding the identity
of future cable-related community needs and
interests, as well as the past performance of
Grantee under the then current Franchise term.
The preliminary assessment shall be provided to
the Grantee prior to the time that the four (4 )
month period referred to in Subsection (c) of
Section 626 is considered to begin.
(C) Notwithstanding anything to the contrary set forth
in this section, at any time during the term of
the then current Franchise, while affording the
public appropriate notice and opportunity to
comment, the City and Grantee may agree to
undertake and finalize negotiations regarding
renewal of the then current Franchise and the City
may grant a renewal thereof. The terms set forth
in this section shall be construed to be
consistent with the express provisions of Section
626 of the Cable Act.
Sec. 5.20.220. CONDITIONS OF SALE.
(A) In the event the Franchise is lawfully revoked by
the City, Grantee shall be given 6 months to
transfer its cable system to a qualified third
party. During the period before sale the Grantee
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may continue to operate pursuant to the terms of
its prior Franchise and, without limitation,
continue to receive all revenues derived from or
related thereto subject to payment of the required
Franchise fees.
(B) If the City either acquires ownership of the cable
communications system or by its actions effects a
transfer of ownership of the cable system, the
acquisition or transfer shall be at a fair market
value, determined on the basis of the cable system
valued as a going concern, but with no value
allocated to the Franchise itself.
(C) Without waiving or establishing the City' s right
to proceed by condemnation the City may agree to
have the fair market value determined by two cable
television experts, one chosen by the Grantee and
one chosen by the City. If these experts cannot
agree, the disagreement will be resolved through
pendulum arbitration by an arbitrator chosen by
the two experts.
Sec. 5.20.230. TRANSFER OF FRANCHISE. Grantee' s
right, title, or interest in the Franchise shall not be
sold, transferred, assigned or otherwise encumbered without
the prior consent of the City except for a transfer in
trust, by mortgage, by other hypothecation, or by assignment
of any rights, title, or interest of Grantee in the
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Franchise or Cable Communication System in order to secure
indebtedness; provided, however, that without consent and
upon notice which shall be no less than thirty (30) days,
Grantee may sell, transfer or assign its right, title and
interest in the Franchise to an Affiliate.
Sec. 5.20.240. COMPLIANCE WITH FCC REGULATIONS.
Grantee shall comply with all FCC requirements and
regulations.
Sec. 5.20.250. BOOKS AND RECORDS. The City may
review such of the Grantee' s books and records as are
reasonably necessary to monitor compliance with the terms
hereof. Such records shall include, but shall not be
limited to any public records required to be kept by the
Grantee pursuant to the rules and regulations of the FCC.
To the extent allowable by law the City will treat any
information disclosed by the Grantee on a confidential
basis, and to only disclose it to employees,
representatives, and agents thereof who have a need to know;
or in order to enforce the provisions hereof.
Notwithstanding anything contained herein to the contrary,
the Grantee shall not be required to disclose information
which it reasonably deems to be confidential or proprietary
in nature, except to the extent required by law.
Sec. 5.20.260. PERIODIC REVIEW. Beginning on a date
established by the City and then annually thereafter, the
City may on its own initiative, and shall at the request of
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the Grantee, schedule a public meeting for the purpose of
identifying the cable-related community needs and interests,
and reviewing the performance of the Grantee under the
Franchise. The City shall notify Grantee of the time and
place of such meeting and provide the Grantee with an
opportunity to be heard. The public shall be afforded
appropriate notice and opportunity for comment. Within four
(4) months of such meeting, the City shall provide Grantee
with a written copy of its findings.
Sec. 5.20.270. REPORTING REQUIREMENT. At a minimum
the Grantee shall provide the City annually the following
information:
(A) a report of the previous year' s performance on the
Expansion Plan required by Section 5. 29 . 120,
including, but not limited to, service begun or
discontinued during that year and a new 5 year
plan;
(B) a financial summary, including a statement of
income, revenues, and aggregate operating
expenses, prepared in accordance with generally
accepted accounting principles and certified by
Grantee' s Chief Financial Officer;
(C) a list of the Grantee' s officers, members of its
Board of Directors and other principals;
(D) a written report regarding the FCC proof of
performance tests for the system;
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(E) a current map or set of maps drawn to scale
showing all equipment installed and in place, or
when the time comes that the City shall have
operational a computerized geographical
information system, Grantee shall update cable
system data on a monthly basis. ; and
(F) a description of all petitions, applications,
communications and reports submitted by the
Grantee to any state or federal entity in respect
to any matters affecting cable television system ' s
operations authorized by the Franchise. Copies
shall be provided to City upon request.
Sec. 5.20.280. INSURANCE, INDEMNIFICATION, BONDS OR
OTHER SURETY.
(A) Grantee shall maintain in full force and effect,
at its own cost and expense, during the term of
the Franchise, general comprehensive liability
insurance in the amount of $250, 000 for bodily
injuries, ( including accidental death) to any one
person, and subject to the same limit for each
person in amount not less than $500,000 on account
of any one occurrence, and Property Damage
Liability Insurance in an amount not less than
$100, 000 resulting from any one occurrence. Said
insurance shall designate the City as a named
additional named insured. Such insurance shall be
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non-cancellable except upon sixty ( 60) days prior
written notice to the City. In the event that
potential liability for the City is increased by
any change in the Utah Governmental Immunity Act,
Grantee shall modify the required insurance
amounts accordingly upon thirty (30) days notice
from the City.
(B) The Grantee shall indemnify, save and hold
harmless, and defend the City, its officers,
boards, and employees, from and against any
liability for damages and for any liability or
claims resulting from property damage or bodily
injury, ( including accidental death) , which arise
out of the Grantee' s construction, operation, or
maintenance of its Cable Communication System,
including, but not limited to, reasonable
attorney' s fees and costs during third party
litigation. This provision will not apply in the
event of a value dispute on sale, or to damages
which arise from the City' s sole negligence.
Sec. 5.20.290. SECURITY FUND.
(A) Within thirty (30) days after the effective date
of a franchise grant, Grantee shall deposit into a
bank account established by the City the sum of
Twenty-Five Thousand Dollars ($25, 000) as security
for its faithful performance on all provisions of
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this Ordinance and the Cable Television Services
Standards Ordinance; its compliance with all
orders, permits and directions of the City; and
its payment of any claim, lien or tax due the City
which arises by reason of construction, operation
or maintenance of the System. Interest accrued on
this deposit shall be rebated to the Grantee at
the end of each calendar year. Grantee shall not
use this security fund as security for any other
purpose.
(B) No funds shall be drawn from the security fund
without providing the Grantee the opportunity to
cure the default as provided in Sections 5 . 20.300
through 5.20.330 below or other applicable cure
provisions.
(C) Within thirty (30) days of notice that any amount
has been withdrawn from the security fund, Grantee
shall deposit a sum sufficient to restore the
security fund to the original amount.
(D) In lieu of the security fund set forth in this
Section 5.20. 290, the City and Grantee may agree
that a guarantee from an entity and in a form
acceptable to the City may be sufficient to
satisfy Grantee' s obligations hereunder.
Sec. 5.20.300. NOTICE OF VIOLATION. In the event
that the City believes that the Grantee has not complied
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with the terms of the Franchise or this Ordinance, it shall
notify Grantee of the nature of the alleged noncompliance.
Sec. 5.20.310. GRANTEE'S RIGHT TO CURE OR RESPOND.
Grantee shall have thirty (30) days from receipt of the
notice described in Section 5.20.300 to (a) respond to the
City contesting the assertion of noncompliance, or (b) to
cure such default or, in the event that, by the nature of
default, such default cannot be cured within the thirty (30)
day period, initiate reasonable steps to remedy such default
and notify the City of the steps being taken and the
projected date that they will be completed.
Sec. 5.20.320. PUBLIC HEARING. In the event that
Grantee fails to respond to the notice described in Section
5. 20.300 pursuant to the procedures set forth in Section
5. 20.310, or in the event that the alleged default is not
remedied within sixty ( 60) days after the Grantee is
notified of the alleged default pursuant to Section
5.20.300, the City shall schedule a public hearing to
investigate the default. Such public hearing shall be held
by the Mayor or his or her designee at a time which is no
less than five ( 5) business days therefrom. The City shall
notify the Grantee of the time and place of such meeting and
provide the Grantee with an opportunity to be heard.
Sec. 5.20.330. VIOLATION OF CERTAIN SPECIFIED
SECTIONS. The notice, cure and public hearing provisions of
Sections 5.20.300, 5.20.310 and 5.20.320 shall not be
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applicable to any violations of Sections 5.20. 100, 5. 20. 140,
5.20. 280 or other violations which may immediately affect
the health, safety and welfare of the City. In the event of
such violations the City may demand the Grantee immediately
cure the violation. The City may enforce such a cure
requirement by any or all applicable remedies at law or
equity.
Sec. 5.20.340. ENFORCEMENT.
(A) Subject to Sections 5. 20.290 through 5. 20.330 and
applicable federal and state law, in the event the
City determines that Grantee has failed to
substantially comply with any material provision
of the Franchise, the City may:
( 1 ) foreclose on all or any part of any security
provided under this Ordinance or other
related ordinances, if any, including,
without limitation, any bonds or other
surety; provided, however, the foreclosure
shall only be in such a manner and in such
amount as the City reasonably determines is
necessary to remedy the default;
(2 ) commence an action at law for monetary
damages or seek other equitable relief;
(3) subject to applicable federal, state and
local law, in the case of a substantial
default of Sections 5.20. 100, 5. 20. 110,
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5.20. 140, 5.20.240, or subsection 5.20. 120.0
of the Franchise Agreement, revoke the
Franchise Agreement; or
(4) seek specific performance of any provision,
which reasonably lends itself to such remedy,
as an alternative to damages.
( 5 ) exercise any right or remedy available at law
or in equity.
( 6 ) impose penalties pursuant to Section 5. 20.350
hereof.
(B) The Grantee shall not be relieved of any of its
obligations to comply promptly with any provision
of the Franchise by reason of any failure of the
City to enforce prompt compliance.
Sec. 5.20.350. FINES AND PENALTIES.
(A) Subject to Sections 5.20. 290 and 5. 20.330 above,
the City may impose a civil penalty on the Grantee
up to the following amounts per day or part
thereof that the following violations occur or
continue:
1. Two Hundred Dollars ($200) for any failure to
complete system construction in accordance
with Grantee' s construction obligations
contained in the Cable Communication
Ordinance or Franchise grant.
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2. One Hundred Dollars ($100) for any failure to
provide data, documents, reports or
information to the City during a System
review, as detailed in Section 5.20. 260
hereof.
3. Seventy-Five Dollars ($75) for any failure to
comply with any of the provisions of this
Ordinance for which a damage is not otherwise
specifically provided in the Master Cable
Communication Ordinance or Franchise grant.
Each violation of any provision of this Ordinance
shall be considered a separate violation for which
a separate damage can be imposed.
Sec. 5.20.360. UNAUTHORIZED RECEPTION. In addition
to those criminal and civil remedies provided by state and
federal law, it shall be a Class B misdemeanor for any
person, firm, or corporation to create or make use of any
unauthorized connection, whether physically, electrically,
acoustically, inductively, or otherwise, with any part of
the Cable Communication System without the express consent
of Grantee. It shall be a misdemeanor for any person to
tamper with, remove or injure any property, equipment or
part of the Cable System or any means of receiving cable
service or other services provided thereto.
Sec. 5.20.370. NOTICE OF WORK IN RIGHT-OF-WAY.
Grantee shall notify the Franchise Authority and take
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reasonable steps to notify the residents in any area where
regularly scheduled work involving excavation of the right-
of-way is to be performed at least fourteen ( 14) days before
the work is to be performed. This notification shall not be
required in the event of emergency repair work or work that
is confined to a single site and which will be completed in
one day.
Sec. 5.20.380. MISCELLANEOUS PROVISIONS.
(A) Preemption. If any federal or state body or
agency shall preempt and supersede or preclude the
jurisdiction of the City, the jurisdiction of the
City shall cease while such jurisdiction is
preempted, superseded or precluded.
(B) Actions of the City. In any action by the City or
representative thereof mandated or permitted under
the terms hereof, such party shall act in a
reasonable, expeditious and timely manner.
Furthermore, in any instance where approval or
consent is required under the terms hereof, such
approval or consent shall not be unreasonably
withheld.
(C) Severability. If any section, sentence,
paragraph, term or provision hereof is for any
reason determined to be illegal, invalid,
superseded by other authority or unconstitutional
by any court of common jurisdiction or by any
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state or federal regulatory authority having
jurisdiction thereof, such portion shall be deemed
a separate, distinct, and independent provision
and such determination shall have no effect on the
validity of any other section, sentence,
paragraph, term or provision hereof, all of which
will remain in full force and effect for the term
of the Franchise or any renewal or renewals
thereof.
(D) City Rules. The Mayor may adopt, in addition to
the provisions contained in this and other
applicable ordinances including, but not limited
to Chapters 5.20A and 5.21, such additional
regulations as it may find necessary in the
exercise of the police power, including rules and
requirements for customer service, provided that
such regulations do not materially conflict or
interfere with Grantee' s rights granted herein.
Any such additional regulations shall be
reasonably designed to meet the purposes of this
Ordinance and shall be adopted only after notice
and comment are provided.
(E) Force Majeure. The Grantee shall not be held in
default or noncompliance with the provisions of
the Ordinance, nor suffer any enforcement or
penalty relating thereto, where such noncompliance
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or alleged defaults are caused by strikes, acts of
God, power outages, or other events beyond its
reasonable ability to control.
SECTION 3. This ordinance shall take effect upon its
first date of publication.
Passed by the City Council of Salt Lake City, Utah,
this day of APR 18 1989 1989.
-CHA iER4SN
ATTEST•
C T R R ER -
Transmitted to the Mayor on APR 1. 9 1989
Mayor' s Action: Approved Vetoed.
MAYOR
ATTEST:
APPROVED
FINANCE DEPARTMENT
FUNDS NOT NEEDED
*IRER
� S' EAL)
BRB•pp B;11 - — Of 19
Irubei:;11ed.
APR 2 7 1989
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