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HomeMy WebLinkAboutAmending Chapter 7 Entitled Cable Television FranchisingORDINANCE No. 7181 -83 Passed by the Common Council of the City of South Bend, Indiana n Attest: _ April 11, rq 83 City Clerk IRENE K. GAMMON Of Common Council Presented by me to the Mayor of the City of South Bend, Indiana April 12, 1983 AA—�� City Clerk IRENE K. GAMMON Approved and signed by me I �9 3 SUBSTITUTE BILL BILL NO. 17 -83 ORDINANCE NO. 7/6,/43 AN ORDINANCE AMENDING CHAPTER 7 OF THE SOUTH BEND MUNICIPAL CODE TO ADD A NEW ARTICLE 1, ENTITLED CABLE TELEVISION FRANCHISING STATEMENT OF PURPOSE AND INTENT: The Common Council of the City of South Bend, Indiana, believes that it is in the best interest of public health, safety, welfare and in particular the safety of public ways and places, to establish a procedure for the non - exclusive franchising of cable television systems within the City. This ordinance provides standards for City regulation consistent with Federal Communications Commission rules and regulations and sets forth conditions accompanying the granting of cable television system franchises to qualified applicants and establishes a procedure for regulation and review of same. NOW, THEREFORE, BE IT THEREFORE ORDAINED BY THE SOUTH BEND COMMON COUNCIL, AS FOLLOWS: SECTION I. Chapter 7 of the South Bend Municipal Code is amended to be entitled Franchising and to include a new Article 1, entitled Cable Television Franchising, as follows: Article 1. Cable Television Franchising. Section 7 -1. Definitions. For purposes of this Article the following terms, phrases, words, , and their derivations shall have the meanings given herein. Where not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular number include the plural number, and words in the masculine gender include the feminine gender. The word "shall" is always manditory and not merely directory. (a) "Applicant" shall mean any person submitting an application to the Board for a franchise to operate a CATV system under the terms, standards, and conditions set forth in this Article. (b) "Board" shall mean the Board of Public Works of the City of South Bend, Indiana. (c) "Cable television system" or "CATV system" shall mean any facility that, in whole or in part, receives directly or indirectly, over the air or from origina- tion equipment, and amplifies or otherwise modifies the signal transmitting programs broadcast by one or more television or radio stations, and distributes such signals by wire or cable or other electrical conductors and equipment to subscribing members of the public who pay for such service, but such term shall not include any such facility that serves fewer than fifty (50) subscribers, or any such facility that serves only the residents of one or more apartment dwellings under common ownership, control, or management and commercial establishments located on the premises of same. (d) "CATV" shall mean cable television. (e) "City" shall mean South Bend, Indiana. (f) "FCC" shall mean the Federal Communications Commission. (g) "Franchise" shall mean and include any authorization granted hereunder in terms of a franchise, right, privilege, and non - exclusive authority to construct, erect, operate and maintain in, upon, along, across, above, over and under the streets, alleys, and other public ways and public places now laid out or dedicated, and all extensions thereof and additions thereto in the City, a system of poles, wires, cables, underground conduits, manholes, and other conductors and fixtures necessary to maintain and operate a CATV system in the City. (h) "Franchisee" shall mean the person to whom the Board grants a franchise to operate a CATV system under this Article. (i) Gross subscription revenue" shall mean all compensa- tion to the franchisee for all CATV services, includ- ing all forms of consideration, including but not necessarily limited to: monthly service charges; installation charges; initial lump sum payments; income from advertising, revenues derived from leased channels, pay TV programs charges, and pay TV service, less program expenses; but not including sales or excise tax. (j) "Person" shall mean any person, firm, partnership, association, corporation or organization of any kind. (k) "Subscriber" shall mean any person who purchases or receives CATV service from a franchisee. (1) "Two -way communications" shall mean the transmission of telecommunications signals from subscriber locations or other points throughout the CATV system back to the system control center as well as transmission of signals from the control center to subscriber locations. Section 7 -2. Operation of CATV Without Franchise Prohibited. No person slzal r use the streets or other public ways or public places of the City to install or operate a CATV system without first obtaining from the Board a non - exclusive franchise granted in accordance with the terms, standards, and conditions of this Article. Section 7 -3. Application for Franchise; Application Fee. Any person wishing to obtain a ranc Ise to operate a UAXV system within the City shall file a written application with the Board, together with a Two Hundred Dollar ($200.00) non - refundable application fee. The application shall contain the following information: (a) The name, address, and form of business of the organization. (b) A description of the CATV system proposed to be installed or operated; the proposed location of the components of each CATV system, the manner in which the applicant proposes to install or operate the same; the extent to which the existing or future poles or other facilities of the City and public utilities will be used for such system; the personnel and qualifications of the working organization proposed for the City; a map specifically showing and delineating the proposed service area within which the applicant proposes to provide CATV service. FA (c) A copy of each agreement the applicant has with any other person or firm, including public utilities, relating to the proposed franchise. (d) A copy of the CATV service agreement proposed for use by the applicant with its subscribers. (e) A statement describing the applicant, its officers and directors, partners or major stockholders, indicating business experience, including experience and perfor- mance in the CATV system and service field, showing any interest in other franchises and the dates of such; and a separate listing showing all city employees, officials or appointees who have any interest, direct or indirect, in the applicant. (.f) A detailed statement showing the estimated cost of the CATV system which applicant proposes to install, the amount of working capital necessary to operate the system during the first five year period of the franchise, and a projection of revenue and expenses for the first five years' operation. (g) A declaration that the application is true, correct, and complete and that no person not shown in the application has any interests in the applicant. (h) A statement setting forth those signals which the applicant would bring into the City and information regarding programming, setting forth the channels to be used. (i) A statement or schedule of proposed rates and charges to subscribers for all installations and services to be offered by the applicant. (j) A recent financial statement verified by an officer of the applicant and by a certified public accountant showing the applicant's current financial status and its financial ability to complete the construction and installation of and to operate the proposed CATV system in keeping with the terms, standards, and conditions of this Article. (k) A statement setting forth the applicant's proposed procedure for receiving and responding to complaints received by its subscribers. (1) Any additional information the applicant deems necessary and appropriate to support its application for the franchise. Section 7 -4. Processing of Applications. (a) Upon receipt by the Board of a completed application, application fee, required supporting documentation, and any other documents or information from the applicant, the Board shall review the application and documents. If the Board is satisfied that the application is sufficiently complete and all required documentation has been furnished, the Board shall set a public hearing and shall publish notice of same. The purpose of the public hearing shall be to hear any and all evidence as to the ability of the applicant to operate its CATV system in keeping with the terms, standards and conditions of this Article. (b) After the hearing the Board shall determine on the basis of the application, documentation, and the evidence presented at the hearing whether or not the applicant's legal character, financial condition, and 3 technical expertise are sufficient to enable the applicant to operate a CATV in compliance with the terms, standards and conditions of this Article. (c) If the Board determines that the applicant can comply, the Board shall grant the franchise and shall cause to be prepared within 60 days after the determination, a non - exclusive franchise agreement permitting the applicant to operate its CATV system within the corpor- ate limits of the City, which agreement shall be in keeping with the terms, standards and conditions of this Article. (d) If after the public hearing the Board determines on the basis of the application, the documentation and the evidence presented at the hearing that the applicant's legal character, financial condition, and technical expertise are insufficient to enable the applicant to operate its CATV system in compliance with the terms, standards, and conditions of this Article, the Board shall deny the application. In the event the Board denies the application, it shall prepare a written report setting forth the reasons for denying the application and shall send the report to the applicant within 21 days after the determination. (e) The action of the Board shall be the final municipal action for the purpose of judicial review. Section 7 -5. Standards, Terms, and Conditions for CATV Franchise. Any CATV franc ise under this Article must comply with the following terms, standards and conditions. (a) Duration: A franchise shall be for a period of 15 years. Any renewal of franchise shall be for a period of 15 years. (b) Franchise Fee: The franchisee shall pay to the City as consideration for the franchise an amount equal to 3% of the annual gross subscription revenue received by it for CATV service within the corporate limits of South Bend, which payments shall be made to the City semi - annually on the 15th day of April and the 15th day of October each year, with a final payment due upon termination of the franchise. In the event that the FCC deregulates the monitary amount which a city may assess CATV operators for franchise rights, the city shall increase the percentage rate to a- maximum of 5 %. (c) Repair Service and Maintenance: The franchisee shall maintain a trained repair and maintenance crew capable of responding to subscriber complaints or requests for service within 24 hours after receipt of the complaint or request. No charge shall be made to the subscriber for this service, provided that any complaint is related to malfunction of the CATV system. (d) Complaint Procedure: The franchisee shall establish procedures for receiving, acting upon and resolving subscriber complaints and complaints concerning signal leakage and interference with radio communication, which procedures shall be subject to the prior approval of the Board. The franchisee shall furnish notice of such procedures to each subscriber at the time of subscription to the system and at intervals of no more than one year. The franchisee shall keep records of all complaints filed by subscribers during the term of the franchise or renewal thereof and shall make such records available to the Board upon request. The franchisee shall expeditiously investigate and resolve 4 complaints regarding quality of service, equipment malfunctions, billing, and similar matters. In no case shall a complaint go unanswered for more than two business days. The franchisee's failure or neglect to follow the approved procedure for responding to and resolving subscriber complaints within a reasonable period of time may, at the option of the Board, be considered a breach of the franchise agreement. (e) Filings and Communications with Regulatory Agencies: Copies of all petitions, applications, reports and communications submitted by the franchisee to the FCC, Securities and Exchange Commission, the Indiana Secretary of State, or any other federal or state regulatory commission or agency having jurisdiction over matters affecting CATV shall be submitted simultaneously to the Board. (f) Inspection of Records: The Board shall have the right, power, and authority to inspect all records of any franchisee at the premises of such franchisee during the normal business hours of any working day. (g) Construction Timetable: Construction shall commence within 90 days of the execution of the franchise agreement. The franchisee shall complete at least forty percent (40 %) of the construction of a city -wide CATV system within 15 months from the date of execution of its franchise agreement and shall complete an additional 30% of its construction each year during the next two years until city -wide service is substantially achieved. All construction, whether new, extension, or upgrading of current facilities, shall proceed in a non - discriminatory manner that provides relatively equal service to all areas of the City in accord with a plan which is subject to the prior approval of the Board. The franchisee shall furnish to the Board bi- monthly construction reports during the period of any construction. (h) Operation, Service and Maintenance of System: (1) The franchisee shall maintain and operate the CATV system and render efficient service to sub- scribers during the term of the franchise so as to insure that all work involved in construction, installation, maintenance, repair and operation of the system shall be performed in a safe, thorough and reliable manner. The construction, installa- tion, maintenance, repair and operation of the CATV system for which a franchise is granted shall be done in conformance with the National Electric Code, the National Electrical Safety Code, the rules and regulations of the FCC including all such regulations regarding signal leakage and interference with radio communication, the laws of the State of Indiana, and the ordinances of the City as the same exist or may be amended. Further, the franchisee shall install and maintain its wires, cables, fixtures and other equipment in accordance with the requirements of the ordinances and codes of the City and in such a manner as not to interfere with any installation of the City or any public utility serving the City. In the event that any City property is damaged or destroyed in the course of operations or construction by the franchisee, such property shall be promptly repaired or replaced by the franchisee and restored to a servicable condition, subject to the approval of the Board. 5 (2) All structures and all lines, equipment and connections in, over, under and upon streets, sidewalks, alleys and other public ways and public places in the City, whereever situated or located, shall at all times be kept and maintained in a safe, suitable, substantial condition and in good order and repair. (3) The signal of any television or radio station carried on the franchisee's CATV system shall be carried without material degradation in quality or color within the limits imposed by the technical state of the art and as set forth by the FCC. (4) The franchisee shall maintain an office in the City or within four miles of the limits thereof, staffed with one or more agents or employees at all times, and shall have sufficient employees to provide safe, adequate and proper service for its facilities. The franchisee's office shall be open during normal business hours five days a week and shall have adequate local telephone service and staffing so that complaints and requests for repairs or adjustments may be received by said office 24 hours per day. (5) The franchisee shall grant to the City, free of expense, joint use of any and all poles owned by it for any compatable and proper municipal pur- poses, insofar as it may be done without inter- fering with the free use and enjoyment of the franchisee's own wires and provided that all such joint use shall be in full compliance with all rules, regulations and requirements enacted upon the franchisee and provided that it shall be in accordance with the provisions of the National Electrical Safety Code prepared by the National Bureau of Standards and the National Electric Code of the National Board of Fire Underwriters affecting electrical installations which may be presently in effect or future changes thereto. (6) The franchisee shall undertake any and all con- struction and installation necessary to keep current with the latest development in the state of the art of CATV, whether with respect to increasing channel capacity, developing new services, instituting more extensive two -way service, or otherwise, whenever possible in the light of the franchisee's financial condition and the developmental status of new technology. (7) In areas of the City having telephone lines and electrical and utility lines underground, whether required by other sections of this Code or not, any or all CATV lines, cables, and wires shall be underground. Existing poles for electric and communication purposes shall be utilized whereever possible, and underground installation even when not required shall be preferable to the placing of additional poles. Poles shall not be installed for the sole purpose of supporting CATV installa- tions without written justification to and approval by the Board. The Board may require wires crossing streets to be placed underground if there are no overhead wires at the crossing. 2 (8) Any portion of a CATV system in public ways and public places shall comply with all appli- cable laws, regulations, and ordinances, and all its wires, cables and installations suspended from poles in public ways and public places shall comply with the minimum clearance of above ground requirements for telephone lines, cables, wires and conduits. (9) Conduit material shall be in accord with recog- nized industry -wide standards, as approved by the Board. (10) The franchisee shall extend service to all areas which are subsequently annexed to the City, with such extensions being made within nine (9) months after completion of all statutory annexation procedures, provided that this subsection shall not apply to any area subsequently annexed until there are at least 40 potential subscribers per mile of cable. (i) Municipal, Public and Educational Access Channels: The franchisee shall provide and maintian, without charge, one or more designated combined access channels, the number of which channels shall be based on the demand for access and which shall be increased as the originally designated channel and each subsequently designated channel becomes fully programmed twenty -four hours per day, but in no event shall the number of such channels exceed ten (10) percent of the franchisee's then current channel capacity, for the following purposes: (a) Use by the City of South Bend; (b) Non - commercial public access on a first come, non - discriminating basis; (c) Use by the South Bend Community School Corporation. The franchisee shall provide to users of such access channel(s) all equipment and technical and production assistance necessary to enable the user's personnel to originate a basic broadcast from studio space provided by the franchisee, and in the case of the City of South Bend or the South Bend Community School Corporation, to originate a taped broadcast from a remote location. A franchisee may utilize for its own programming any air time not used for the purposes stated in this subsection. (j) Preferential or Discriminatory Practices Prohibited: The franchisee shall not make or grant preference or advantage to any person or subject any person to prejudice or disadvantage as to rates, charges, services, service facilities, rules, regulations, or any other matter. (k) Emergency Use of Facilities: In the case of any emergency or disaster, the franchisee shall, upon request of the Board or Mayor, make its audio facilities available to the City for emergency use during the emergency or disaster. (1) Rates and Charges: (1) The franchisee's rates and charges to subscribers for services under a City franchise shall be fair and reasonable and no higher than necessary to its required cost of service, including the establishment and maintenance of necessary reserves, funds for replacement, and expenses of expansion, including a fair return after depreciation of its properties devoted to such services, and at no time shall its rates and charges exceed the maximums established by the Board. (2) Rate Review. (a) The Board shall review the franchisee's maximum rates at the end of each two year period. (b) The Board may review the established maximum rates on the petition of the franchisee. A petition for maximum rate increase shall be filed with the Board no less than,90 days prior to the requested implementation date of the rate increase. A petition for a maximum rate increase shall be accompanied by sufficient documentation to allow the Board to make a reasonable investigation of the need for the requested increase. Within 30 days after the filing of the petition for rate review the Board shall hold a public hearing, after giving notice of same, on matters relating to the franchise and the proposed maximum rate increase, including but not limited to the performance of the franchisee, the services offered, the handling of complaints and the proposed new rates. Within 30 days after the public hearing the Board shall render a written decision on the petition, accepting, rejecting, or modifying same and stating the basis of its decision. (c) The Board shall consider the following factors in relation to any maximum rate increase petition: (1) The ability of a franchisee to render CATV services and to derive a reasonable profit therefrom under the existing maximum rate schedule; (2) The ability of the franchisee to render CATV services and to derive a reason- able profit therefrom under any proposed rate schedule; (3) The revenues and profits derived from CATV services; (4) The efficiency of the franchisee; (5) The quality of CATV services offered by the franchisee; (6) The responsiveness of the franchisee to subscribers' complaints; (7) The extent to which the franchisee has adhered to the terms of the franchise agreement; and (8) Fairness to the City, the subscribers and other City residents. (d) The franchisee may reduce rates and charges at its discretion without prior approval of the Board, but with notice to the Board. (3) The franchisee may assess a reasonable collection fee for delinquent accounts. (4) Rates for commercial buildings such as hotels, motels, etc. using multiple outlets shall be subject to negotiation between the franchisee and the owner of such building but in no event shall the rate for each multiple outlet hook -up exceed that charged for an individual residential hook -up. (5) The franchisee shall provide without installation charge and without a monthly service fee one connection to each City building, fire house, police station, public school and state -owned college passed by a trunk cable, feeder cable or any other kind of cable used by the franchisee to transmit its signals. (6) The franchisee may require an advance payment of its installation charge and shall complete the installation no later than 10 days following the payment of the charge unless prevented from doing so by unavoidable and excusable delays. In the case of a reconnection after disconnection, re- connection must be made without discrimination and scheduled at the earliest available date. (7) The franchisee may charge a penalty for late payments of monthly service charges, which penalty shall bear a reasonable relationship to the cost of handling such late payments. (8) If at any time the State of Indiana or any other higher governmental authority regulates the rates of a franchisee for services provided under a franchise, the provisions of such regulations shall supercede this section to the extent that they are in conflict. Section 7 -6. Subscriber Privacy in Two -Way Communication. When the state of the art in a franchise CATV system permits two -way voice or visual communication, the following restrictions shall apply: (a) Monitoring. No monitoring of any terminal connected to the system shall take place without specific written authorization of the user of the terminal in question on each occasion. In no event shall monitoring of any kind take place without a clearly visible light signal and clearly audible sound signal. The light shall be visible and the sound audible at a distance of at least 30 feet from the terminal at the time of monitoring. (b) Prevention. Each terminal shall be equipped with a switch by which the user can prevent the monitoring of his terminal. (c) Cable- tapping. Tapping or monitoring a system without authorization from the person whose communication might be so monitored may, at the option of the Board, constitute a breach of of the franchise agreement. (d) Exception. The provisions of this section shall be deemed not to apply to methods of monitoring terminals which permit only charging subscriber services, terminating subscriber services, and determining types of services to subscribers. Under no circumstances, however, shall this section be deemed to permit any other type of terminal monitoring. 0 Section 7 -7. Nondiscrimination in Employment Practices. A franchisee shall not refuse to hire or employ, nor bar nor isc arge from employment, nor discriminate against any person in compensation or in terms, conditions or privileges of employment because of sex, age, race, creed, color or national origin. Section 7 -8. Conditions of Street Occupancy. (a) All transmissions and distributions in distribution structures, lines, and equipment erected by the franchisee within the City shall be so located as to cause minimum interference with the proper use of all streets, alleys, and other public ways and public places, and to cause minimum interference with the rights and reasonable convenience of property owners who adjoin any of the said streets, alleys, or other public ways and public places. (b) In case of any disturbance of pavement, sidewalk, driveway, or other surfacing, the franchisee shall at its own cost and expense and in a manner approved by the Board replace and restore all pavement, sidewalk, driveway or surface of any street, or alley, or other public way or public place disturbed to as good a condition as before the disturbance. (c) If during the term of the franchise agreement the City lawfully elects to alter or change the grade or width of any street, alley, or other public way or public place, the franchisee, upon reasonable notice by the Board, shall remove, relay and relocate its poles, wires, cables, underground conduit, manholes and other system fixtures, at its own expense. (d) The franchisee shall, upon required notice by the holder of a moving permit issued by the City, temporarily raise or lower its wires to permit the moving of such building in accord with a plan approved by the Board. The expense of such temporary removal, raising or lowering of wires, shall be paid by the permit holder, and the franchisee shall have the authority to require such payment in advance. Section 7 -9. Indemnification. Insurance. Performance Bond. (a) The franchisee shall indemnify and save the City harm- less from all losses sustained by the City on account of any suit, judgment, execution, claim, damage or demand whatsoever occasioned by or arising out of the construction, erection, maintenance, repair or operation of the franchisee's CATV system in the City and from any suits, liabilities, obligations for liabilities, obligations for unfair competition, or obligations from suits of any kind whatsoever by third persons arising out of or incident to the exercise by the franchisee of the franchise rights granted by the City. For this purpose the franchisee, prior to construction, for the duration of the franchise and during all franchise renewal periods, shall present evidence of liability insurance covering personal and property damage and public liability from an insurance company or companies admitted to do business in the State of Indiana. The amounts of such insurance for liability due to damage to property shall be not less than Five Hundred Thousand Dollars ($500,000.00) as to any one accident and against liability due to injury or death of persons, One Million Dollars ($1,000,000.00) as to any one person and Five Million Dollars ($5,000,000.00) as to any one incident. 10 (b) The franchisee shall agree that it will pay all ex- penses incurred by the City to defend itself in regard to all damages and penalties included in this section. These expenses shall include out -of- pocket expenses, including but not limited to reasonable attorneys fees, and shall include the reasonable value of any service rendered by the City Attorney or his assistants or any employee of the City. (c) A certificate evidencing the insurance coverage herein required shall be provided by the franchisee to the Board upon execution of a franchise agreement. (d) Upon the Board's approval of any construction plans of the franchisee, the franchisee shall file with the Board a faithful performance bond in the amount of ten percent (10 %) of the cost of the construction, to the benefit of the City, with a surety whose principal place of business is in the State of Indiana. The bond shall be conditioned on the completion of the construction approved by the Board, and such bond shall remain in place until certification to the Board of the franchisee's architect or engineer that the con- struction has been completed according to the plans approved by the Board. (e) The franchisee shall also carry such insurance as it deems necessary to protect it and the City from any and all claims under the workers compensation law which may be applicable to the franchisee. All insurance required under this subsection shall be and remain in full force and effect for the entire period of the franchise. Section 7 -10. Restrictions Against Assi nment. The franchise shall not be assigne or trans erre , eittler in whole or in part, or leased, sublet, or mortgaged in any manner, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person, either by the act of the franchisee or by operation of law, without the consent of the Board, which consent may not be unreasonably withheld. The Board's decision, on assignment or transfer of the franchise shall be based on the legal character, financial condition, and technical expertise of the proposed assignee or transferee as well as its demonstrated ability to meet the terms and conditions of this Article and the franchise agreement; provided, however, that nothing in this subsection shall be deemed to prohibit a mortgage or pledge of its CATV system, or any part thereof, for the purpose of financing the CATV system. The granting, giving or waiving of any one of more such consents by the Board shall not render unnecessary any subsequent consent or consents. Section 7 -11. Renewal of Franchise. (a) Any franchise granted under this Article may be renewed by the Board for a period of fifteen (15) years, after notice and a public hearing and compliance with the terms and conditions of this section. (b) A CATV franchise agreement which was executed prior to the adoption of this Article may be renewed by the Board for a period of fifteen (15) years, after notice and public hearing and compliance with the terms and conditions of this section, provided that the franchisee furnish to the Board all documentation required under 7 -3 of this Article. Upon renewal, a new franchise agreement in keeping with the terms, standards, and conditions of this Article shall be executed. 11 (c) Any franchisee desiring to renew its franchise shall notify the Board in writing not less than six (6) months prior to the expiration of the existing franchise agreement. (d) After notice, the Board shall hold a public hearing to consider the franchisee's application for franchise renewal. Evidence may be presented at the hearing concerning the legal character, financial condition, and technical expertise, the responsiveness of the franchisee to subscriber's complaints, the performance of the franchisee under its franchise agreement, any proposed changes in the operation of the franchise, and any other matters relating to the franchisee's ability to operate a CATV system in compliance with the terms, standards, and conditions of this Article. (e) After the hearing, if the Board determines, on the basis of the application for renewal, any documentation filed with the Board, and evidence presented at the hearing, the franchisee can continue to operate a CATV system in compliance with the terms, standards and conditions of this Article, the Board shall grant the franchise renewal and shall cause to be prepared within sixty (60) days after the determination, a non - exclusive franchise agreement permitting the franchisee to operate its CATV system within the corporate limits of the City, which agreement shall be in keeping with the terms, standards, and conditions of this Article. (f) After the hearing, if the Board determines on the basis of the application for renewal, any documentation filed with the Board, and the evidence presented at the hearing that the franchisee cannot operate its CATV system in compliance with the terms, standards, and conditions of this Article, the Board shall deny the application for renewal and shall prepare a written report setting forth the reasons for denying the renewal, which shall be sent to the applicant within twenty -one (21) days after the denial. (g) The action of the Board shall be the final municipal action for the purpose of judicial review. (h) Should the Board be unable to complete the renewal proceedings prior to expiration of a franchise, the franchisee shall have the right to continue operation of its CATV system in accordance with the terms, standards and conditions of this Article until the Board denies the franchise renewal application or until a new franchise agreement is executed. Section 7 -12. Receivership; Bankruptcy. The Board shall have the right to cancel a franchise one hundred eighty (180) days after the appointment of a receiver or trustee to take over and conduct the CATV system of a franchisee, whether in receivership, reorganization, bankruptcy, or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of one hundred eighty (180) days or unless: (a) within one hundred eighty (180) days after his election or appointment, such receiver or trustee shall have fully complied with all provisions of the franchise agreement and remedied all defaults thereunder; and (b) such receiver or trustee, within said 180 days, shall have executed an agreement duly approved by the Court having jurisdiction in the premises, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of the franchise agreement. 12 Section 7 -13. Default; termination. (a) In the event that a franchisee is in violation of any of the terms and conditions of the franchise agreement and fails to correct such violation within ninety (90) days after being served with written notice by the Board of same, the Board shall have the right and option to declare the franchisee to be in default and to terminate the franchise. In the event of such termination, the City shall have the right to acquire by purchase and thereafter to sell the CATV facilities of the franchisee, upon paying to the franchisee the fair market value at the time of termination. (b) Upon termination of a franchise agreement or any renewal thereof by the passage of time or otherwise, the franchisee shall remove its supporting structures, poles, transmission and distribution systems and other appurtenances from the streets, alleys, and other public ways and public places in, over, under or along which they are installed and shall restore the areas to their original condition. If such removal is not completed within six (6) months of termination, the City may deem any property not removed as having been abandoned. SECTION II. Severab�il�ity. If any section, clause or phrase of this or finance is herd unconstitutional or void, such unconstitutionality or voidness shall not affect the validity of the remainder of the ordinance, and any portions in conflict are hereby repealed. SECTION III. This ordinance shall be in full force and effect frommand after passage by the Common Council, approval by the Mayor, and legal publication. i- �R8 -g'3 R1f €z eEu PASSED em er ot the ¢ on Councii 13 TommiUrr Deport Xv toe Tammon (ioundl of t4c Tug of oou#!1 Irnb: Your Committee OF THE WHOLE to whom was referred BILL NO. 17 -83 A BILL AMENDING CHAPTER 7 OF THE SOUTH BEND MUNICIPAL CODE TO ADD A NEW ARTICLE 1, ENTITLED CABLE TELEVISION FRANCHISING. Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED TO THE COUNCIL FAVORABLE. AS AMENDED: By Substitution Page 4, paragraph B, last sentence: Change may to shall. RAYMOND ZIELINSKI Chairman FREE PRESS 004E310 PUBLISHING CO.