Loading...
Ordinance 009-1989 4 , 1/ , , I .' ~,.. Ff! Fr'l ~~!') ~':':',",f"',~n ORDINANCE NO. 009-1989 AN ORDINANCE CREATING PROCEDURAL AND SUBSTAN- TIVE STANDARDS FOR THE GRANTING OF CABLE TELEVISION SYSTEM FRANCHISES IN THE UNINCOR- PORATED AREA OF MONROE COUNTY BY PROVIDING DEFINITIONS; BY PROVIDING FOR THE SUBMISSION OF FRANCHISE PROPOSALS TO THE COUNTY ADMINIS- TRATOR AND THE INFORMATION REQUIRED FOR SUCH PROPOSALS; BY PROVIDING FOR A PUBLIC HEARING ON SUCH PROPOSALS BEFORE THE BOARD OF COUNTY COMMISSIONERS AND THE CRITERIA BY WHICH THE BOARD SHALL APPROVE OR DISAPPROVE SUCH PROPOSALS; PROVIDING FOR THE NATURE AND EXTENT OF ANY FRANCHISE GRANTED INCLUDING THE REQUIREMENT OF CERTAIN STANDARDS OF SERVICE AVAILABILITY, SERVICE STANDARDS, RESTRICTIONS ON THE USE OF RIGHTS-OF-WAY IN ORDER TO PREVENT DISRUPTION TO THE TRAVELING PUBLIC AND PRIVATE PROPERTY OWNERS, THE USE OF FRANCHISEE EQUIPMENT IN THE EVENT OF AN EMERGENCY, THE PROVISION OF BASIC CABLE SERVICES AT CERTAIN COUNTY FACILITIES, THE PROVISION OF FRANCHISEE INSURANCE AND INDEM- NIFICATION ON BEHALF OF THE COUNTY, THE REQUIREMENT THAT RATES AND CHARGES BE FILED WITH THE COUNTY ADMINISTRATOR, AND THE REQUIREMENT OF THE PAYMENT OF A 5% OF GROSS REVENUE FRANCHISE FEE TO MONROE COUNTY; PROVIDING FOR CERTAIN RESTRICTIONS ON THE TRANSFER OF ANY FRANCHISE GRANTED PURSUANT TO THIS ORDINANCE; PROVIDING FOR THE TERMINATION OF ANY FRANCHISE GRANTED UNDER THIS ORDINANCE FOR CAUSE AND THE PROCEDURES THEREFOR; PROVIDING FOR THE OPERATION, PURCHASE AND SALE OF THE CABLE SYSTEM AFTER THE TERMINA- TION OR EXPIRATION OF A FRANCHISE; PROVIDING PROCEDURES AND SUBSTANTIVE REQUIREMENTS FOR THE GRANT OF A NEW FRANCHISE TO THE HOLDERS OF EXISTING FRANCHISES; PROVIDING FOR CERTAIN RESTRICTIONS ON THE TERMS AND CONDITIONS ON THE GRANTING OF OVERLAPPING FRANCHISES; PROVIDING FOR FRANCHISEE PAYMENT OF COUNTY LEGAL EXPENSES, INCLUDING ATTORNEYS' FEES, IN CERTAIN INSTANCES; PROVIDING THAT THIS ORDINANCE SHALL NOT AFFECT THE TERMS OF EXISTING FRANCHISES EXCEPT TO THE EXTENT THAT SUCH FRANCHISEES MUST SEEK A NEW FRANCHISE PURSUANT TO THIS ORDINANCE; PROVIDING FOR SEVERABILITY; PROVIDING FOR THE REPEAL OF ALL ORDINANCES INCONSISTENT HEREWITH; PROVIDING FOR INCORPORATION INTO THE MONROE COUNTY CODE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: Section 1. Definitions For the purposes of this franchise ordinance, the following words and phrases have meanings set forth below. a) Affiliate means an entity which owns or controls, or is owned or controlled by, or is under common ownership with Fran- chisee. b) Basic Cable Service means any service tier which includes the retransmission of broadcast signals of local tele- vision stations which shall mean any of those stations serving the Miami/Ft. Lauderdale area. c) Cable Channel or Channel means a portion of the electromagnetic frequency which is used in the cable system and which is capable of delivering a television channel as that phrase is defined by the regulations of the Federal Communica- tions Commission. d) Cable Operator means an entity who provides cable service over a cable system or through one or more affiliates owns a significant interest in such a cable system or who other- wise controls or is responsible for, through any arrangement, the management and operation of such a cable system. e) Cable Service means the one way transmission to sub- scribers of video programming, or other programming service, and subscriber interaction, if any, which is required for the se- lection of such video programming or other programming service. f) Cable System means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within the franchise area. g) Commercial channel means a channel designated for commercial use by persons unaffiliated with Franchisee. h) Franchise means the authorization, granted under this Ordinance unless otherwise noted, issued by the County, also in the form of an ordinance, for the construction and operation of a cable system for the purpose of making available cable service to the public. i) Franchise Area means that portion of the unincorporated area of Monroe County, Florida, stated in the Ordinance granting the franchise. 2 j) County means Monroe County, a political subdivision of the State of Florida. k) Franchisee means the holder of any franchise granted under this Ordinance or the County approved successor, transferee or assignee thereof. l) Entity means an individual, partnership, association, joint stock company, trust corporation or governmental agency other than the County. m) Gross Revenues means the monthly cable service revenues received by Franchisee from subscribers of the cable system; provided, however, that such phrase shall not include revenues received from any national advertising carried on the cable system, that portion of a payment to a third party for the carriage or reception thereof, or any taxes on cable service which are imposed directly or indirectly on any subscriber thereof by any governmental unit or agency, and which are col- lected by the Franchisee on behalf of such governmental unit or agency. n) Street means the surface, the air space above the surface and the area below the surface, of all public roads, streets, highways, alleys, easements, boulevards, bridges, tunnels, public utility easements, and all public grounds within or belonging to the County or under its control or supervision within the franchise area. 0) Service Tier means a category of cable service or other services provided by the Franchisee and for which a separate rate is charged by the Franchisee. p) Subscriber means an authorized recipient legally receiving basic service, additional service tiers, or both. q) Institutional networks means a communication network which is constructed or operated by the cable operator and which is generally available only to subscribers who are not residen- tial subscribers. r) Commercially impracticable means, with respect to any requirement of this Ordinance or any franchise granted thereun- der, that it is commercially impracticable for the Franchisee to 3 comply with such requirement as a result of a change in con- ditions which is beyond the control of the Franchisee and the nonoccurrence of which was a basic assumption on which the requirement was based. Section 2. Procedure For The Initial Grant Of A Franchise. a) Any entity desiring an initial franchise under this Ordinance shall first make a proposal therefor to the County Administrator. Such proposal shall, at a minimum, contain the following: 1) Ownership information which shall include the following: (a) If a corporation, provide the state of incorporation and identification and ownership interests for all officers and directors, and stockholders owning and voting five percent (5%) or more of the applicant's stock; (b) If a corporation, provide the following stock information: classes of stock, par value, votes per share, number of shares authorized, number of shares issued, number of shares sub- scribed, and total number of stockholders. If there are any assignments of voting rights or intended assignment of voting rights, furnish full details and attach copies of documents evidencing the same. (c) If a partnership, provide identification and ownership interest for all general and limited partners; (d) If a proprietorship, joint venture or other entity, provide full identification and ownership details; (e) If an affiliate, subsidiary or parent company, provide full identification and ownership details, as in (b) above, for all affiliates, subsidiaries and parent companies of applicant. 4 If any of these are publicly owned the require- ments of this paragraph may be satisfied by furnishing a copy of the latest audited annual report. 2) Character information which shall include the following: (a) The past or current involvement of the applicant or any of its principals as a party in criminal or civil proceedings; (b) Whether applicant (including parent corporation if applicable) or any principal has ever been convicted in a criminal proceeding (felonies or misdemeanors) in which any of the following offenses have been charged: fraud, embezzlement, tax evasion, bribery, extortion, jury tampering, obstruction of justice (or other misconduct affecting public or judicial officers in the performance of their official duties), false or misleading advertising, perjury, anti- trust violations (state or federal), violations of FCC regulations or conspiracy to commit any of the foregoing. If yes in any instance(s), provide the disposition thereof. (c) Whether the applicant or any principal has ever been a party to a civil proceeding, or is now a party to such proceedings, which are of the following nature: unfair or anticompetitive business practice, antitrust violations (state and federal) including instances in which consent decrees were entered, violations of securities laws (state and federal), false/misleading ad- vertising, or violations of FCC regulations. If yes, provide the case status thereof. (d) w"hether the applicant or any principal as ever been subject to any sanction or penalty, criminal or civil, involving failure to comply 5 with the franchise. thereof. (e) Whether the applicant or any principal has ever, as a Franchisee, instituted legal action against it franchisor. If yes, provide the case status thereof. (f) Whether the applicant or any principal ever had a FCC license revoked, suspended or renewal denied, or is a party to a proceeding which may result in same. If yes, provide the disposition thereof. 3) Financial information which shall include the following: (a) Describe in detail the financing plan for the construction and initial operation of the proposed cable communications system and provide proof of financial capability. Proof of financial capability shall include: (1) A showing of sources and amount of equity capital; if equity contribution is borrowed describe collateral and terms of the loan. requirements of a If yes, provide cable television the case status (2) A showing of sources and amount of debt capital, both primary and secondary. (3) Terms of any financing agreements. (b) Supply documentation that demonstrates and assures applicant's financial viability, such as, but not limited to, letters of commitment from financial institutions which demonstrate the availability of sufficient funds to complete construction of the proposed system; (c) If applicant is a multiple system operator, give evidence of the portion of the company's line of credit which is uncommitted and will be applied to the proposed construction. 6 (d) If individual investors are involved, state the amount of equity contribution of each plus the method by which the contribution is paid such as case, cash plus credit or services. Include financial commitment documentation for each investor. (e) If applicant is a division or subsidiary of a multiple system operator, provide an annual report for the parent company. (f) If capital is to be raised by a parent company, provide the proposed debt instrument describing terms of payment. (g) Pro forma financial statements are required for the years beginning with the date the franchise agreement is accepted projected annually through the year applicant anticipates that all financing obligations and debt will have been retired. Such pro formas shall include income statements supported by realistic levels of subscriber penetration including the source of the information and basis for projections, sources and uses of funds, loan amortization information, anticipated capital expenditures, constructions costs, depreciation schedules, and operating expenses. Applicant shall provide and detail the basic assumptions relied upon to support its projections. 4) Technical qualifications which shall include the following: (a) Describe any specialized qualifications and cable system experience applicant may have had, including, but not limited to: the ownership, construction, management and operation of other cable communications systems, specifying the manner in which applicant participated, available personnel with technical qualifications and 7 experience committed to the proposed system design, construction and operation; construction contractors to be used if any; technical consul- tants including suppliers to be utilized in design. Indicate the type of participation and the qualifications of persons, such as consultants and contractors, whose services will be utilized. (b) A comprehensive, but concise, descrip- tion of the proposed system design which clearly reflects the applicant's design philosophy as well as the features planned and not planned. The design items should not, however, be construed as mandatory features of the County. (1) Briefly describe the type of layout that will be used to provide coverage to the franchised territory. (2) Describe distribution system cable equipment including manufacturer, type and model numbers (aerial and underground includ- ing drops), active electronic including power supplies and standby systems, and passive electronics. (3) Describe the need for and proposed use of converters including an explanation of the conditions under which converters will be Furnished. (4) Describe plans for the use of transmission services in the common carrier, cable television relay (CARS), multipoint distribution and other bands. (5) Describe plans for the use of satellite earth station(s) including speci- fications. (6) Describe design specifications for the delivery of pay cable television includ- ing methods of security. If more than one 8 basic tier is to be provided indicate how higher tier subscribers will be isolated form the lower tier. (7) Describe headend design and recep- tion facilities. Indicate whether signal studies or measurement programs have been undertaken in selecting the headend site(s). (8) Furnish a summary spectrum uti- lization chart. (9) Describe any other headend or subscriber terminal equipment that will be or may be installed for pay-per-view service, other interactive services such as, but not limited to, text display or home security. Give full details of immediate and long term plans including arrangements actually made. (10) If an emergency alert system is proposed, describe how the system will work, how the system would be activated and from where. (11) Describe equipment to be used for programming any automated channels including make and model numbers. 5) Channel capacity which shall include the following information: (a) Indicate the frequency spectrum, de- signed channel capacity, and channel capacity initially to be activated for downstream service; and the frequency spectrum, channel capacity and extent to which upstream capacity will be activat- ed from subscribers. If no upstream subscriber activation is now planned, when and under what circumstances would it be activated. Justify the capacities proposed for both upstream and down- stream use in terms of projected service demand. 9 Indicate the channel capacity reserved for public, educational and governmental use. (b) If institutional services are proposed, provide information for such channels or network as in (a) above, and describe the plans in detail including the institutional users to be served. Provide a proposed set of rules and regulations governing use of the institutional facilities. (c) Discuss channel expansion capability in respect to both the short term and long term, including specific reference to the degree of flexibility available for adapting the system to increasing or changing capacity requirements. b) Upon determining that the applicant's proposal is complete, the County Administrator shall promptly agenda the proposal before the Board of County Commissioners for consideration at a public hearing affording adequate notice and opportunity for both public comment and participation by the applicant. Following such hearing the Board may grant the proposal by ordinance, or deny the same, based on the following factors: 1) The economic impact upon private property within the franchise area; 2) The public need for such franchise, if any; 3) The capacity of public rights-of-way to accommodate the cable system; 4) The present and future use of the public rights-of-way to be used by the cable system; 5) The potential disruption to existing users of the public rights-of-way to be used by the cable system and the resultant inconvenience which may occur to the public; 6) The character and financial ability of the franchise applicant to perform; 7) Other societal interests as are generally considered in cable television franchising. 10 Section 3. Franchise Grant. a) A franchise shall be a nonexclusive grant by ordinance to operate a cable system within the franchise area. The grant includes the right and privilege to construct, erect, operate and main tain , in, upon, a long, acro s s , above, over and under all streets such as poles, wires, cables, underground conduits, manholes and other television conductors and fixtures necessary or convenient for the maintenance and operation of a cable system. b) The right to use and occupy the streets for the pur- poses set forth in this Ordinance shall not be exclusive, and the County reserves the right to grant a similar use of the streets to any entity during the period of this franchise. The rules, regulations, and standards legally adopted by the Federal Commu- nication Commission, as well as 47 USCA 521, et seq., and all amendments thereto, as well as F.S. 166.046 and F.S. 125.42 and all amendments thereto, shall apply to and shall govern the op- erations of any franchise granted under this Ordinance and such rules, regulations and statutes are hereby declared to be part of any franchise granted, and such rules, regulations and statutes shall control over any of the terms and conditions set forth in this Ordinance or any franchise granted hereunder to the extent of any conflict. c) Except as limited by Section 3(b), any franchise shall incorporate all the terms and procedures of this Ordinance as if they were fully set out in such franchise. Section 4. Duration of the Franchise. Any franchise granted by the County shall be for a term of ten (10) years unless the parties mutually agree to a lesser term. Section 5. Service Availability. The Franchisee shall conduct and operate its cable system so as to provide service to all areas within the franchise area where economically feasible. This shall include service to all franchise areas of the franchise area where there is an average density of not less than twenty-five (25) households per line 11 mile of cable extension necessary to serve those households. The Franchisee shall, within one hundred twenty (120) days from the grant of the franchise, furnish the County a schedule of con- struction and expansion so that all such areas within the County may be served within four (4) years from the date of the fran- chise grant. That a portion of the franchise area is already served by an existing cable operator shall not relieve any Franchisee from the requirement of extending its lines into such area. Section 6. Minimum Services to be Provided. a) Any franchise shall have as a requirement the following services: 1) A service tier offering basic cable service; 2) A designation or use of channel capacity for public, educational or governmental use by the County. b) The Franchisee may also provide such other services as it deems economically feasible. c) Notwithstanding any implications in Section 6 (a) and (b), the Franchisee shall be capable of offering to the subscrib- ers a combination of service tiers whose total number of cable service channels is at least fifty (50). d) If the Franchisee elects to provide institutional networks, channel capacity thereon shall be designated for educational or governmental use. e) Subscribers to the Franchisee's service shall not be required to assure the Franchisee that they will subscribe to the Franchisee's service for any length of time, and subscribers may terminate service at any time. f) The Franchisee may not deny cable service access to any group of potential cable subscribers because of the income of the local area in which such group resides. Section 7. Service Standards. a) The Franchisee shall maintain and operate the system and render efficient service in accordance with the rules and regulations as set forth by the FCC. 12 b) The Franchisee shall furnish to its subscribers for all services, with no discriminatory or unreasonable delay in the Franchisee's installation of full service within the various neighborhoods in the serviceable franchise area, the best signals practicable under the circumstances existing at the time, and shall provide quality reception of its cable service to each subscriber so that both sound and picture are produced free from visible and audible noise, distortion and ghost images on stan- dard television receivers in good repair. c) The Franchisee shall put, and keep and maintain, all parts of the cable system in good condition and repair throughout the term of the franchise. d) The Franchisee shall not make or grant any preference or advantage to any person, or subject any person to any unrea- sonable difference in rates, charges, service of facilities within the franchise area. e) The Franchisee shall expeditiously investigate and resolve all subscriber complaints concerning the operation of the cable system, normally within twenty-four (24) hours but in no event, except for emergencies, later than forty-eight (48) hours. A record shall be made of all complaints received indicating the name and address of the complaining party, the complaint and the action taken to rectify the complaint. Copies of such records shall be delivered on a monthly basis to the County Administra- tor. f) The Franchisee shall undertake, where economically feasible, any construction and installation as may be necessary to keep pace with the latest developments in the state of cable systems, whether with respect to increasing the channel capacity beyond the fifty (50) channel minimum described in Section 6(c), utilizing any new technology, furnishing improved converters, providing commercial channels, instituting two-way services, providing institutional channels or otherwise. Section 8. Rights-of-way Use Conditions. a) Nothing contained in Section 3 of this Ordinance shall be construed to relieve the Franchisee from procuring any and all 13 easements, rights-of-way, covenants, grants, certificates of approval, and permits which may be required from any entity presently operating in the franchise area and which are necessary for the installation, construction, and operation of the cable system authorized by a franchise granted pursuant to this Ordi- nance. b) The Franchisee shall ensure that the safety, function- ing and appearance of any streets or privately owned property, safety and convenience of other persons, are not adversely affected by the installation and construction of the cable system. c) All permanent cable system transmission and dis- tribution structures, lines and equipment erected by the Fran- chisee within the franchise area shall be so located as to cause minimum interference with the proper use of the streets and to cause minimum interference with the rights and reasonable conve- nience of property owners who adjoin any of the streets. d) In case of disturbance of any street(s), by the Fran- chisee, the Franchisee shall, at its own cost and expense and in a manner approved by the County acting through its authorized officers or employees, replace and restore such street(s) in as good a condition as existed prior to the commencement of the work involving the disturbance. e) If at any time during the period of a franchise granted under this Ordinance the County shall lawfully elect to alter or change the location or grade of any street (s), the Franchisee, upon reasonable notice by the County, shall remove, relay, and relocate its poles, wires, cables, underground conduits, man- holes, and any other cable system equipment and fixtures, at its own expense. f) Any cable system equipment. poles, or other fixtures placed in any street or streets by the Franchisee shall be placed in such manner as not to interfere with the traveling public. g) The Franchisee, during the installation, maintenance and operation of its cable system, must guard and protect any opening or obstruction in the streets by placing adequate 14 barriers, fences or boardings, the bounds of which shall be clearly designated by warning lights during periods of dusk and darkness. h) After having received not less than seventy-two (72) hours prior notice, the Franchisee shall comply with all moving permits issued by the County or by FOOT by temporarily raising or lowering its wires to permit the moving of structures or high loads. The cost to the Franchisee of complying with the moving permit shall be borne by the person or entity that obtained the moving permit, and the Franchisee shall have the right to request payment in advance. i) The Franchisee shall have the authority to trim trees upon, or overhanging streets, so as to prevent the branches of such trees from coming in contact with the wires and cables of the Franchisee, in a manner approved by and acceptable to the County. At the option of the County, such trimming may be done by it or under its supervision and direction at the expense of the Franchisee, if prior approval of Franchisee has been ob- tained. j) In all sections of the service area where the Franchis- ee utilizes the facilities of City Electric System, the Electric Coop or Southern Bell and those facilities are placed under- ground, the Franchisee shall, at its own expense, place its cable system, wires or other like facilities underground to the maximum extent that existing technology reasonably permits the Franchisee to do so. k) Upon receipt of written notice from the County that any wires, equipment, fixtures or attachments of the Franchisee's cable system interfere with the primary use of the County's streets, endanger its employees or the public, or interfere with the use of other County property, the Franchisee shall promptly, and at its own expense, remove, alter, rearrange, improve or repair the cable system wires, equipment, fixtures or attachments in such a manner as the County may direct. l) The Franchisee shall grant to charge, the joint use of any and all the County, poles owned free by of the 15 Franchisee for any proper public purpose, so long as such use by the County does not interfere with the operation and maintenance of the cable system. Section 9. Use Of Franchisee Equipment In The Event Of An Emergency. The Franchisee shall allow the County the use of its facil- ities in the event of any emergency; such emergency to be de- termined by the Mayor, the Board of County Commissioners, or the Governor. Provided, however, the County shall indemnify and hold harmless the Franchisee from any and all demands, claims judg- ments of any kind or character arising out of, or resulting from, the use of the cable system, or its equipment, by the County. Section 10. Provision For Basic Cable Service To Certain County Facilities. Upon the written request of the County, the Franchisee shall furnish free installation and free basic cable service for one outlet each in the County offices at Plantation Key and Marathon, and for each public school in the franchise area, provided that the offices or schools are within two hundred fifty (250) feet of existing cable service. The Franchisee shall for mutually agreeable and appropriate consideration provide Monroe County Government a Public Service TV Channel for use in conducting electronic arraignments, telecasting public meetings, and providing public service administration and announcements, Section 11. Insurance And Indemnification. The Franchisee shall maintain and keep in full force and effect at all times during the term of this franchise sufficient liability insurance coverage to protect the County against any claims, suits, judgments, executions or demands of any nature whatsoever in a sum not less then One Million Dollars per person in anyone claim; One Million Dollars as to anyone accident or occurrence; and not less than One Million Dollars for property damage as to anyone accident or occurrence. The County shall notify the Franchisee in writing within thirty (30) days after notice or presentation of any claim or demand, either by suit or 16 otherwise, made against the County on account of or arising out of any act or omission connected with the operations of the Franchisee. The Franchisee shall indemnify and hold harmless the County at all times during the term of this franchise agreement from and against any and all losses resulting from injuries or damage to persons or property, including injuries to the employ- ees of the County or damage to the property of the County, arising out of the negligence of the Franchisee or its agents while engaged in the work of constructing, operating, or main- taining the cable system. Further, the Franchisee agrees to defend, fully indemnify and hold harmless the County from and against any and all claims and demands whatsoever, including any claims or demands from any source whatsoever, on account of license or copyright infringements or violations of any transmit- tal rules or regulations of the FCC or other governmental regu- latory bodies; provided, however, that the County shall notify the Franchisee in writing within thirty (30) days after notice or presentation of any claim or demand, either by suit or otherwise, made against the County on account of or arising out of any act or omission connected with the operation of the cable system authorized by this franchise. Section 12. Rates And Charges To The Subscriber. Franchisee shall keep and maintain on file with the County Administrator's office, and prominently display in all the Franchisee's offices within Monroe County, a schedule of current- ly effective rates and charges for the cable services of the Franchisee within the franchise area. Section 13. Franchise Fee. a) In consideration of the granting and exercise of a franchise for the operation of a cable system, the Franchisee shall pay annually to the County, from the gross revenues re- ceived from the franchise area, 5% of such revenues. b) For the purposes of this section, the twelve (12) month period applicable under the Franchise shall be the fiscal year commencing October 1 and ending on September 30. The franchise fee payment shall be due and payable ninety (90) days after the 17 close of the preceding fiscal year. Each payment shall be accompanied by a report certified as correct from a certified public accountant of the Franchisee showing the basis for the computation and the amount of the payment. However, the County shall have the right and authority to inspect the Franchisee's revenue records under the franchise and the right of audit and recomputation of any amount payable under this Section. The cost of the audit shall be borne by the Franchisee when the same results in increasing, by more than 5%, the Franchisee's annual payment to the County. c) No acceptance of any franchise payment shall be con- strued as a release or an accord and satisfaction of any claim the County may have arising from the installation, operation or maintenance of the Franchisee's cable system or for the perfor- mance of any other obligation required by the franchise. d) All franchise fees which are not paid when due and payable under this Section shall bear interest at the maximum legal rate until paid. If not paid when due and payable, the County may institute suit against the Franchisee in a Court of competent jurisdiction or proceed according to Section 16. Section 14. Assignment Of The Franchise. The Franchisee shall not sell, lease, assign or otherwise alienate its rights under the franchise without the prior written approval of the County, which approval shall not be unreasonably withheld, provided that, if no action is taken by the County on any application for approval hereunder within thirty (30) days after submission to the County of such written application, the application shall be deemed granted and approved. Notwithstand- ing the foregoing, the County hereby authorizes the Franchisee to assign, alienate or transfer its right hereunder to any affili- ate; provided, however, that, the Franchisee shall give thirty (30) days written notice to the County of such a transfer. In addition, no approval shall be required for a transfer in trust, mortgage or other hypothecation as a whole of the Franchisee's rights under the franchise to secure indebtedness incurred in connection with any financing of the operations of the cable 18 system; provided, however, that, the Franchisee shall give written notice to the County of such a transfer. Section 15. Modification of the Franchise. a) During the period a franchise is in effect, the Fran- chisee may obtain, from the Board of County Commissioners, modifications of the franchise terms if: 1.) In the case of any such requirement for facilities or equipment, including public, educational, or governmental access facilities or equipment, if the cable operator demonstrates that (i) it is commercially impracticable for the operator to comply with such requirement, and (ii) the proposal by the cable opera- tor for modification of such requirement is appropriate because of commercial impracticability; or 2.) In the case of any such requirement for services, if the cable operator demonstrates that the mix, quality, and level of services required by the franchise at the time it was granted will be maintained after such modification. b) The Franchisee shall make a proposal modification, stating the reasons therefor, to the County Administrator who shall, within 120 days of its receipt unless otherwise extended by mutual agreement, schedule a public hearing thereon before the Board of County Commissioners which shall afford adequate notice and opportunity for comment. At the conclusion of the hearing, the Board shall either grant the franchise modification by ordinance or deny the same but, if denied, the reasons for such denial shall be clearly stated in writing. c) The Franchisee may not obtain a modification under this section of any requirement for services relating to public, educational or governmental access. Section 16. Termination Of The Franchise For Cause. a) The County may elect to terminate the franchise in the event of a willful failure and refusal, or prolonged neglect, of the Franchisee to do or comply with any material and substantial requirements or limitations contained in this Ordinance or 19 franchise granted pursuant thereto, or any material rule or regulation of the County validly adopted pursuant to the ordi- nance or franchise; if the Franchisee practices fraud or decep- tion upon the County, which actions may include any attempt to purposefully evade or avoid any of the substantial or material provisions of this franchise; if the Franchisee is adjudged a bankrupt, makes an actual assignment of all or substantially all of its property for the benefit of creditors, or has a substan- tial amount of its system property sold under execution or other legal process or seized by creditors and held thirty (30) days or more by its creditors; or if the Franchisee is in more than ninety (90) days of default in the making of any paYments required under this franchise. b) Before the County may elect to terminate the franchise the County Administrator shall make a written demand on the Franchisee to do or comply with any such requirement, limitation, term, condition, rule or regulation. A notice to be effective for the purpose of securing revocation of the franchise shall state that such is the purpose of the notice. If the failure, refusal, or neglect of the Franchisee continues for an unreason- able period of time, which shall in no event be less than sixty (60) days following delivery of such written demand, without written evidence that corrective action has been taken or is being actively and expeditiously pursued, the County Administra- tor may place his request for termination of the franchise upon a regular County Commission meeting agenda. The County Administra- tor shall cause to be served upon such Franchisee, at least ten (10) days prior to the date of such County Commission meeting, a written notice of intent to request such termination, specifying causes upon which the request is predicated, and the time and place of the meeting, notice of which shall also be published at least ten (10) days before such meeting in a newspaper of general circulation published in the County. c) The Commission shall consider the request of the County Administrator and shall hear any person interested therein, and shall determine in its discretion, whether or not any failure, 20 refusal, or neglect by the Franchisee as asserted by the Adminis- trator is well founded or was without just cause. If the de- clared or stated causes are not proven to be well-founded or with just cause, the Commission shall so find. If the written charges or causes of the County Administrator are proven to be wel1- founded, the Commission shall then determine whether the charges are excused by just cause. The basis and facts of the Com- mission's determination shall be set forth in written findings by the Commission and a copy thereof shall be promptly served on the Franchisee. d) If the asserted failure, refusal, or neglect alleged by the Administrator is proven to be well-founded but also to have been with just cause, the Commission shall direct the Franchisee to comply therewith within such time and manner and upon such terms and conditions as are just and reasonable. In the event the County Administrator determines that the Franchisee has not complied within the time set, he shall schedule a subsequent franchise termination hearing before the Board of County Commis- sioners providing the ten (10) day notice required in Section 16 (b) . The Board of County Commissioners shall conduct the subsequent hearing and make findings pursuant to Section 16 (c) and may make such determinations as are provided for in this Section or Section 16(e). e) If the Commission shall determine such failure, re- fusal, or neglect by the Franchisee as asserted by the Adminis- trator was well founded and was without just cause, then the Commission may, by resolution, impose a reasonable penalty, or declare that the franchise is terminated, or shall be terminated unless there be compliance by the Franchisee within such time period as the Commission may fix. In the event the County Administrator determines that the Franchisee has not complied within the time set, he shall schedule a subsequent franchise termination hearing before the Board of County Commis- sioners providing the ten (10) day notice required in Section 16(b). The Board of County Commissioners shall conduct the subsequent hearing and make findings pursuant to Section 16(c) 21 and may make such determinations as are provided for in this Section. Section 17. Operation, Purchase, And Sale Of The Cable System After Termination Or Expiration Of The Franchise. a) In the event a franchise is terminated, or upon its expiration, the County may require the Franchisee to continue operation for a period not exceeding twelve (12) months after the date of the franchise termination or expiration. Unless pur- chased or transferred, Franchisee shall have two (2) years from the date it ceases operations to remove, at its own expense, all portions of its cable system from all streets in a manner satis- factory to the County. The Franchisee shall file and maintain a surety bond with the County no later than three (3) months prior to the cessation of its operations, in the amount of at least $500,000.00, or such lesser amount as is agreeable to the County, conditioned upon the faithful removal of its cable system equip- ment and facilities as required by this Section. b) In the event of the expiration of a franchise either granted pursuant to this Ordinance or in existence on the effec- tive date of this Ordinance, and after a determination that a renewed franchise shall not be granted, or upon the termination of a franchise granted under this Ordinance for cause, the County shall have the right to purchase the cable system, or direct its sale to another entity, but only at 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. Should a dispute arise over the determination of the fair market value of the cable system, the dispute shall be resolved by arbitration, in accordance with the rules of the American Arbitration Asso- ciation, as modified by the laws of the State of Florida, unless the franchise provides another method or the parties mutually agree otherwise. 22 Section 18. Grant Of A Renewed Franchise To Franchise Holders. a) At any time during the period between the 36th and 30th months before the expiration of the franchise, regardless of whether the franchise was granted under this Ordinance or was in existence on the effective date of this Ordinance, the Franchis- ee may, if desiring a renewed franchise, make a proposal to the County Administrator. Such proposal shall be in the form and contain the information as required in Section 2(a). b) The County Administrator shall promptly agenda before the Board of County Commissioners a hearing which affords the public notice and participation for the purpose of: 1) Identifying the future cable-related communi- ty needs and interests; and 2) Reviewing the performance of the Franchisee under the franchise during the current term. c) Within four (4) months of the hearing required by Section 18 (b), the Board of County Commissioners shall hold a public hearing, which shall include the opportunity to receive comments from members of the public and a full and fair par- ticipation by the Franchisee, including the right to introduce evidence (including evidence related to issues raised in the proceeding under Section 18 (b) ), to require the production of evidence in possession of the County or any of its consultants or contractors, and to question witnesses. A transcript by a certified court reporter shall be provided at County expense. At the conclusion of the hearing, the Board shall either grant the proposal for a renewed franchise by ordinance, or deny the same, but the reasons for denial shall be clearly stated on the record and reduced to writing. In considering whether to grant or deny a franchise renewal proposal, the Board shall consider the following factors: 1) Whether the Franchisee has substantially complied with the material terms of the existing franchise and applicable law except to the extent that 23 the County has acquiesced in any departure from such terms; 2) Whether the quality of the Franchisee's service, including signal quality, response to consumer complaints and billing practices, but without regard to the mix, quality or level of cable services or other services provided over the cable system, has been reasonable in the light of the community's needs; 3) Whether the Franchisee has the financial, legal and technical ability to provide the services, facilities and equipment as set forth in the Franchis- ee's proposal; 4) Whether the Franchisee's proposal is reason- able to meet the future cable-related public needs and interests, taking into account the cost of meeting such needs and interests; 5) The economic impact upon private property within the proposed franchise area; 6) The capacity of public rights-of-way to accommodate the cable system; 7) The present and future use of the public rights-of-way to be used by the cable system; 8) The potential disruption to existing users of the public rights-of-way to be used by the cable system and resultant inconvenience which may occur to the public; 9) The character of the applicant; and 10) Other societal interests as are generally considered in cable television franchising. d) Notwithstanding Section l8(a)-(c), the Franchisee, regardless of whether the holder of a franchise granted under this Ordinance or in existence on the effective date of this Ordinance, may at any time submit a proposal for a renewed franchise, which shall be in the same form and contain the same information as required in Section 2(a), to the County Adminis- trator. The County Administrator shall promptly agenda the 24 proposal before the Board of County Commissioners for consid- eration at a public hearing affording adequate notice and oppor- tunity for comment. Following the hearing the Board may grant the proposal for franchise renewal by ordinance, or deny the same, based on the following factors: 1) The economic impact upon private property within the franchise area; 2) The public need for such franchise, if any; 3) The capacity of public rights-of-way to accommodate the cable system; 4) The present and future use of the public rights-of-way to be used by the cable system; 5) The potential disruption to existing users of the public rights-of-way to be used by the cable system and the resultant inconvenience which may occur to the public; 6) The character and financial ability of the franchise applicant to perform; 7) Other societal interests as are generally considered in cable television franchising. Section 19. Overlapping Franchises. The Board shall not grant any overlapping franchises for cable service on terms or conditions more favorable or less burdensome than those of any existing franchise except as au- thorized by F.S. 166.046(4) and (5). Section 20. Any and all legal expenses, including attor- neys' fees, incurred by the County, including those incurred in any proceedings before the Federal communications Commission, in the enforcement of the terms of this Ordinance or any franchise granted pursuant thereto shall be the responsibility and obligation of the Franchisee, but only if a judgment, settlement, stipulation or other determination or result is rendered or reached which is favorable to the County. Section 21. Nothing in this Ordinance shall be construed as affecting the terms of any cable television franchise existing on the effective date of this Ordinance except to the extent that 25 such Franchisees, if desiring a renewed franchise, must seek such a renewal pursuant to this Ordinance. Section 22. If any section, subsection, sentence, clause or provision of this Ordinance is held invalid, the remainder of this Ordinance shall not be affected by such invalidity. Section 23. All ordinances or parts of ordinances in conflict with this Ordinance are hereby repealed to the extent of said conflict. Section 24. The provisions of this Ordinance shall be included and incorporated in the Code of Ordinances of the County of Monroe, Florida, as an addition or amendment thereto, and shall be appropriately renumbered to conform to the uniform numbering system of the Code. Section 25. This Ordinance shall take effect immediately upon receipt of official notice from the Office of the Secretary of State of the State of Florida that this Ordinance has been filed with said Office. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the 'IlA day of ~~;J BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA , A.D., 1989. By ;?J/~ r1e1f1" Mayor a~rman (SEAL) At tes t :DANNY ~ ~QLHAG:El ~k BY vt2L~,,~~ ADOPTED: /- /- fff EFFECTIVE DATE: ~p /;: /- /2 - X"9 /9~? FILED WITH SECRETARY OF STATE: 26 J)annp 1.. l&oll)age BRANCH OFFICE 3117 OVERSEAS HIGHWAY MARATHON. FLORIDA 33050 TEL. (3051 743-9036 CLERK OF THE CIRCUIT COURT MONROE COUNTY 500 WHITEHEAD STREET KEY WEST, FLORIDA 33040 TEL, (305) 294.4641 April l2, 1989 BRANCH OFFICE P.O. BOX 379 PLANTATION KEY, FLORIDA 33070 TEL. (3051 852.9253 CERTIFIED MAIL RETURN RECEIPT REQUESTED ~ 0'2' \~" " ~ Mrs. Liz Cloud, Chief Bureau of Administrative Code and Laws Department of State The Capitol Tallahassee, Florida 32301 o. Dear Mrs. Cloud: Enclosed please find a certified copy of Ordinance No. 009-1989 creating procedural and substantive standards for the granting of cable television system franchises in the unincorporated Area of Monroe County by providing defi- . , ' n~tlons; etc. This Ordinance was adopted by the Monroe County Board of County Commissioners at a Regular Meeting in formal session on April 4, 1989. Please file for record. Very truly yours, Danny L. Kolhage Clerk of the Circuit Court and ex officio Clerk to the Board of County Commissioners cc: Municipal Code Corp. Mayor Michael Puto Commissioner Wilhelmina Harvey Commissioner Douglas Jones Commissioner Eugene Lytton Commissioner John Stormont Sheriff Allison DeFoor County Attorney Randy Ludacer County Administrator Tom Brown File .' " -- P 027 136 11.6 RECEIPT FOR CERTIFIED NO INSURANCE COVERAGE PROVIOED NOT FOR INTERNATIONAL MAil Certified Fee SpeCial Delivery Fee Restricted Delivery Fee . ~ Q. " -,;/'" -- - ~----.--- .SENDER: Complet. Item. 1 end 2 when eckIltlonel MrYIc.. .... dMlNd, 8fMl eomplete IMm. 3 end 4. " Put your eddress In the "RETURN TO" Spece on the rever.e .Ide, Fellure to do thl. will prevent thl. cerd frombe'ng returned to ,you. f delivered to end the dete of dellv,rv. F,or eddltlonel f_ the OIlOwlng Ie, rv c.. er.ev.n.b'e. Con.ult po.tme.ter for fee. end check bOx I..) for eddltlone' .ervlcel.) requ8lt8d. ,. 0 Show to whom dellvered,dete, erld .ddr....'. .ddr.... 2. 0 ReStricted Denvery " t(Extracharge)t, ' t(Extracharge)t 3. Article Addressed to: , - - 4. Article Number ~~\'~' "'~N' ~b':l.-'\ \~Co \\~ ~:~.~-~ ~.~~......, lr~~~.=:ce: ~, . ~ ,'"'\~ -~- JS.certifled ~ '.0'2. ,0 Express Mall ~~ '"::),Q. ~'2.'~" I 1)"2,. ~C o Insured o COD 5. Signature - Addressee X 6. X Alwavs obtain signature of addressee or d DATE DELIVERED. 8. Ad ee's Address (ONL Y if re({llelJted and fee paid) Signature - Agent .. 't. 7. APR 17 1989 PS Form 3811, Mar. 1987 * U,S.G.P.O. 1987-178-268 DOMESTIC RETURN RECEIPT -t- ~ ...~ DIVISION OF ELECTIONS Room 1802. The Capitol T al1ahas~el?, Florida 32399-0250 (904) 488-8427 April 18, 1989 Honorable Danny L. Kolhage Clerk of Circuit Court - Monroe County 500 Whitehead Street Key West, Florida 33040 , Attention: Rosalie L. Connolly, Deputy Clerk, Courthouse Dear Mr. Ko1hage: Pursuant to the provisions this will ack~owledge: 1. Receipt of letter/s of and certified copy/ies County Ordinance(s) of Section 125.66, Florida Statutes, April 12. 1989 of Monroe 89-9 and 89-10 2. Receipt of relative to: County Ordinance(s) (a) which we have numbered ( b ) which we have numbered 3. We have filed ~~/these ordinances in this office on April 17, 1989. (2:44 pm) 4. The original/duplicate copy/ies showing the filing date is/are being returned for your records. Since:-ely it fl_ (\ L~~ Bureau of Administrative Code LC / mb