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Chapter 10.27
Cable TelevisionSections:
Article I. General
10.27.010 Title.
10.27.020 Purpose.
10.27.030 Applicability.
10.27.040 Definitions.
Article II. Authority
10.27.100 Requirement of a Franchise.
10.27.110 General Franchise Characteristics.
10.27.120 Franchise as a Contract.
10.27.140 Subject Authority.
10.27.150 No Waiver of Terms.
Article III. Franchise Applications
10.27.200 Filing of Applications.
10.27.210 Content of Applications.
10.27.230 Applicant Representatives.
10.27.240 Consideration of Applications.
10.27.250 Acceptance.
Article IV. Franchise Conditions
10.27.300 Franchise Term.
10.27.310 Franchise Fee.
10.27.315 Publication Costs.
10.27.320 Insurance, Bonds, Indemnity.
10.27.330 Letter of Credit.
10.27.340 Liquidated Damages.
10.27.350 Forfeiture and Termination.
10.27.360 Foreclosure.
10.27.370 Receivership.
10.27.380 Purchase of Cable System by City.
10.27.390 Removal of Cable Communications System.
10.27.395 Transfer of Ownership or Control.
Article V. Subscriber Fees and Records
10.27.400 Subscriber Fees and Rates.
10.27.410 Reports.
10.27.420 Records.
10.27.430 Filings.
Article VI. Standards
10.27.500 System Technical Standards.
10.27.510 Access and Local Programming.
10.27.520 Leased Access.
10.27.530 Public Drops.
10.27.540 Institutional Services.
10.27.550 Standby Power.
10.27.560 Parental Control.
10.27.570 Emergency Audio Alert System.
Article VII. System Construction and Installation
10.27.600 Construction Standards.
10.27.610 Construction and Installation Work.
10.27.620 Location of Structures, Lines and Equipment.
10.27.630 Replacement of Paving.
10.27.640 Moving of Buildings.
10.27.650 Trimming Trees.
10.27.660 Delays in Construction.
10.27.680 Repair of Damages.
Article VIII. System Operation
10.27.700 Provision of Service.
10.27.710 Refunds and Service Terminations.
10.27.720 Service Area.
10.27.730 Protection of Privacy.
10.27.740 Tampering or Unauthorized Connections.
10.27.750 Continuity of Service.
10.27.760 Transitional Operation.
10.27.770 Equal Opportunity Employment.
10.27.780 Additional Consumer Protection.
Article IX. Interconnection and Cooperation
10.27.800 Construction Standards.
10.27.810 Cooperation.
Article X. Administration
10.27.900 Cable Advisory Board.
10.27.905 Regional Cable Advisory Board.
Article I. General
10.27.010 Title.
This chapter shall be known as the Cable Communications Code.
[Ord. C29734; Passed: 7/2/1990]
10.27.020 Purpose.
The purposes of this chapter are to provide:
A. for the franchising and regulation of cable communications within the City of Spokane;
B. for a cable communications system that will meet the current needs of the City and that can be modified to meet future needs;
C. for the payment of fees and other valuable consideration to the City for the use of the public ways and for the privilege to construct and operate cable communications systems;
D. consistent with applicable law, for the regulation by the City of certain rates to be charged to subscribers for certain cable communications services;
E. for the establishment of construction, maintenance, and operations standards to ensure the safety of the public;
F. for the development of cable communications as a means to improve communication between and among the members of the public and public institutions of the City; and
G. remedies and prescribe penalties for violation of this chapter and any franchise granted hereunder.
[Ord. C29734; Passed: 7/2/1990]
10.27.030 Applicability.
This chapter is applicable to any application for a cable franchise filed on or after January 1, 1990, and to any such franchise granted thereafter.
[Ord. C29734; Passed: 7/2/1990]
10.27.040 Definitions.
For the purpose of this chapter the following terms, phrases, words, and their derivations shall have the meanings given herein. When 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. The word “shall” is mandatory and the word “may” is permissive. Words not defined shall be given their common and ordinary meanings.
A. “Access channel” shall mean any channel set aside for public use, educational use, or governmental use without a channel usage charge.
B. “Access user” shall mean any person or entity entitled to make use of an access channel consistent with the intended purpose of the channel.
C. “Application” shall mean a proposal seeking authority to construct and operate a cable communications system within the city pursuant to this chapter. It shall include the initial proposal plus all related subsequent amendments.
D. “Basic service” shall mean subscriber cable television services which includes the delivery of local television broadcast signals, access channels, leased channels and local origination channels, as covered by the regular monthly charge paid by all subscribers to any service tier, excluding premium services, two-way services and FM radio services.
E. “Cable advisory board” shall mean that board established by the City pursuant to this chapter.
F. “Cable communications system” shall mean a nonbroadcast facility consisting of a set of transmission paths and associated signal generation, reception, and control equipment, under common ownership and control, that distributes or is designed to distribute to subscribers cable television services, institutional services or other communications services, but such term shall not include:
1. a facility or combination of facilities that serves only to retransmit the television signals of one or more television broadcast stations;
2. a facility or combination of facilities that serves only subscribers in one or more multiple-unit dwellings under common ownership, control, or management, unless such facility or facilities use any public right-of-way;
3. a facility of a common carrier which is subject, in whole or in part, to the provisions of title II of the Communications Act of 1934, as amended, except that such facility shall be considered a cable system to the extent such facility is used in the transmission of video programming directly to subscribers; or
4. any facilities of any electric utility used solely for operating its electric utility system.
G. “Cable television services” shall mean the one-way transmission of video programming and associated nonvideo signals to subscribers together with subscriber interaction, if any, which is provided in connection with the video programming.
H. “Channel” means six MHz of bandwidth in the electromagnetic spectrum capable of carrying any type of transmission which a franchisee of a cable system is authorized to provide to its subscribers.
I. “City” is the City of Spokane, Washington.
J. “Connection” shall mean the attachment of the drop to the radio or television set or other communications device of the subscriber.
K. “Construction.” The terms “construction is completed,” “construction has been completed,” and “construction shall be completed” shall mean that strand has been put up and all necessary cable (including trunk and feeder cable) has been lashed or, for underground construction, that all cable has been laid and trenches refilled, all public ways restored and, except as prevented by weather conditions or delayed because of seasons, landscaping restored; that all amplifier housings and modules have been installed (including modules for return path signals if proposed); that power supplies have been installed, energized, and all bonding and grounding has been completed; that all necessary connectors, splitters and taps have been installed; that construction of the headends and/or hubs has been completed and all necessary processing equipment has been installed; and that any and all other construction necessary for the system to be ready to deliver cable service to subscribers in a safe and reliable manner has been completed consistent with the terms of a franchise and industry standards; and proof that performance tests have been successfully conducted on each otherwise completed segment of the cable system shall be provided to the City. It is expected that segments of less than the entire system will be activated and proofed when completed. Construction of any segment or of the entire system will not be considered complete until proof that successful performance tests have been conducted on such segment (or in the case of the entire system, on all segments of the cable system) has been submitted to the City and any problems found during testing have been corrected. The term “completion of construction” does not include marketing and installation of subscriber service.
L. “Converter” shall mean an electronic tuning device which converts transmitted signals to a frequency which permits their reception on an ordinary television receiver.
M. “Council” shall mean the governing body of the City of Spokane.
N. “Drop” shall mean the coaxial or fiber optic cable or cables that connects a subscriber’s premises to the nearest feeder line of the cable communications system.
O. “Easement” shall mean permission to use all public ways, including public utility easements, for the purposes of constructing and operating a cable communications system.
P. “Feeder line” shall mean the coaxial or fiber optic cables running from the trunk line to line-extenders and taps for the purpose of interconnection to individual subscribers.
Q. “FCC” shall mean the Federal Communications Commission or any legally appointed or designated agent or successor.
R. “File” shall mean the delivery, by mail or otherwise, to the appropriate office, officer or agent of the City of any document or other thing which this chapter or a franchise requires a franchisee to file with the City. The date of receipt by the City shall be considered the file date. Unless specified to the contrary, the filing shall be with the city clerk.
S. “Franchise” shall mean the nonexclusive right and authority to construct, maintain, and operate a cable communications system through use of the public streets, dedications, public utility easements, other public way, or public places in the city pursuant to a contractual agreement executed by the City and a franchisee.
T. “Franchisee” shall mean an entity authorized to construct and/or operate a cable communications system within the city pursuant to this chapter, including any lawful successor, transferee or assignee of an original franchisee.
U. “Gross revenues” shall mean all operating revenue from the cable communications system derived by a franchisee, its affiliates, subsidiaries, parent, and any person in which a franchisee has a financial interest from the operation of a cable communications system within the city, including, but not limited to, basic service monthly fees, premium service fees, institutional service fees, installation, service transfer, and reconnection fees, leased channel fees, converter rentals, studio rental, production equipment and personnel fees, advertising revenues, and copyright fees; provided, however, that this shall not include any taxes on services furnished by a franchisee payable to the State of Washington or any other governmental unit or agency and collected by a franchisee on behalf of said governmental unit or agency, or any revenues from the provision of cable communications services outside the city, or any revenues from sale of capital assets or lease of property for purposes unrelated to cable communications or any bad debt. “Gross revenues” shall include, valued at retail price levels, the value of any goods, services, or other remuneration in nonmonetary form, received by a franchisee or others described above in consideration of performance by the franchisee or others described above of any advertising or other service in connection with the cable system.
V. “Installation” shall mean the connection of the system at the subscriber’s premises.
W. “Institutional services” shall mean one- and two-way non-entertainment transmission services for businesses, public agencies and community institutions. Such services include, but are not limited to, video transmission and voice and data communications.
X. “Leased channel” or “leased access channel” shall mean any channel, or part of a channel, available for commercial use on a fee basis by persons or entities other than a franchisee.
Y. “Maintain” or “maintenance” shall mean the repair, restoration, replacement, renovation and testing of the cable communications system or components thereof so as to ensure that it operates in a safe and reliable manner and as required by a franchise and this chapter.
Z. “Person” shall mean an individual or legal entity, such as a corporation or partnership.
AA. “Premium service” shall mean pay television offered on a per channel or per program basis.
AB. “Service tier” shall mean a specific set of cable supervisor services which are made available as, and only as, a group for purchase by subscribers at a separate rate for the group.
AC. “Street” or “public way” shall mean the surface of and the space above and below any public street, road, highway, path, sidewalk, alley, court, or easement now or hereafter held by the City for the purpose of public travel or public utilities and shall include public easements or ways.
AD. “Subscriber” shall mean a lawful recipient of cable television services or other services provided over a cable communications system.
AE. “User” shall mean a party utilizing a cable communications system’s facilities for purposes of production or transmission of material or information to subscribers.
[Ord. C29734; Passed: 7/2/1990]
Article II. Authority
10.27.100 Requirement of a Franchise.
It shall be unlawful to construct, install, maintain or operate a cable communications system or part of a cable communications system within the city without a valid franchise obtained pursuant to the provisions of this chapter.
[Ord. C29734; Passed: 7/2/1990]
10.27.110 General Franchise Characteristics.
Any franchise issued pursuant to the provisions of this chapter shall be deemed to:
A. authorize use of the public ways for installing cables, wires, lines, and other facilities in order to operate a cable communications system, but shall neither expressly or impliedly be deemed to authorize a franchisee to provide service to, or install cables, wires, lines, or any other equipment or facilities upon, private property without the owner’s consent, or to utilize publicly or privately owned utility poles or conduits without a separate agreement with the owners thereof; provided, no grant of use by the City shall be interpreted inconsistent with the City Charter or extend permission or use outside a purpose, dedication, or reservation granted to or held by the City; provided further, nothing herein shall prohibit a franchisee from exercising its rights under section 621(a)(2) of P.L. 98-549;
B. be nonexclusive, and shall neither expressly nor impliedly be deemed to preclude the issuance of subsequent franchises to operate one or more other cable communications systems within the city or the ownership or operation of a cable communications system by the City; and
C. convey no property right to a franchisee or right to renewal, except as otherwise provided by applicable law.
[Ord. C29734; Passed: 7/2/1990]
10.27.120 Franchise as a Contract.
A franchise issued pursuant to the provisions of this chapter shall be deemed to constitute a contract between a franchisee and the City. A franchisee shall be deemed to have contractually committed itself to comply with the terms, conditions and provisions of a franchise, and with all written rules, orders and regulations applicable to a franchise which are issued, promulgated or made pursuant to the provisions of this chapter.
[Ord. C29734; Passed: 7/2/1990]
10.27.140 Subject Authority.
A franchisee shall, at all times during the life of a franchise, be subject to all lawful exercise of the police power by the City and to such lawful regulations as the City shall hereafter enact. The construction, operation and maintenance of the system shall also be in full compliance with all other applicable rules and regulations now in effect or hereafter adopted by the United States, the State of Washington, or any agency of said governments.
[Ord. C29734; Passed: 7/2/1990]
10.27.150 No Waiver of Terms.
A franchisee shall not be excused from complying with any of the terms and conditions of this chapter by any failure of the City upon any one or more occasions to insist upon or to seek compliance with any such terms or conditions.
[Ord. C29734; Passed: 7/2/1990]
Article III. Franchise Applications
10.27.200 Filing of Applications.
Applications for a cable television franchise will be considered pursuant to the following procedures:
A. An application may be filed at any time or pursuant to a request for proposals (RFP) issued by the City.
B. The City may request additional information from an applicant for a franchise at any time.
C. All applications to be acceptable for filing must be accompanied by a filing fee of one thousand dollars. The City shall apply all filing fees received against all costs associated with its evaluation of any pending application(s) pursuant to SMC 10.27.240. In the event that total costs are less than total filing fees, the City may refund a portion of the filing fee on a pro rata basis to each applicant.
[Ord. C29734; Passed: 7/2/1990]
10.27.210 Content of Applications.
To be acceptable for filing, an application must conform to any applicable RFP and all the information specified therein. Where an application is not filed pursuant to an RFP, it shall contain, at minimum, the following information:
A. Identification of the ownership of the applicant, if not a natural person, including the names and addresses of all persons with one percent or more ownership interest and the ultimate controlling natural persons and identification of all officers and directors and any other primary business affiliation of each.
B. An indication of whether the applicant, or any entity controlling the applicant, or any affiliate of said controlling entity including any officer of a corporation or major stockholder thereof, has voluntarily filed for relief under any provision of the bankruptcy laws of the United States (title 11 of the United States Code), had an involuntary petition against it pursuant to the bankruptcy code, been the subject of any state law insolvency proceeding such as a transfer for the benefit of creditors, had a cable franchise revoked, or has been found guilty, by any court or administrative agency in the United States of:
1. a violation of a security or antitrust law; or
2. a felony or any other crime involving moral turpitude. If so, the application shall identify any such person and fully explain the circumstances.
C. A demonstration of the applicant’s technical, legal and financial ability to construct and operate the proposed cable facility, including a detailed, complete, and audited financial statement of the applicant, duly certified as true and correct by an executive officer of the company, for the fiscal year last preceding the date of the application hereunder, or a letter or other acceptable evidence in writing from a recognized lending institution or funding source, addressed to both the applicant and the governing body, setting forth the basis of a study performed by such lending institution or funding source, and a clear statement of its intent as a lending institution or funding source to provide whatever capital shall be required by the applicant to construct and operate the proposed system in the city, or a statement from an independent, certified public accountant, certifying that the applicant has available sufficient free, net and uncommitted cash resources to construct and operate the proposed system in the city.
D. A description of the physical facility proposed, including channel capacity (one-way and two-way, if any), the area to be served, a description of technical characteristics, headend and access facilities, and a map of the proposed system service area and distribution scheme.
E. A description of how any construction will be implemented, identification of areas having aboveground or below ground cable facilities, the proposed construction schedule, and a description (where appropriate) of how service will be converted from any existing facility to a new facility. The construction plan shall be coordinated with the city water, sewer, street, and other improvement plans and the city wire utility policy, including the electrical utility franchise.
F. A description of the services to be provided over the system, including identification of television signals (both broadcast and nonbroadcast) to be carried and all nontelevision services to be provided initially. Where service will be offered by tiers, identification of the signals and/or services to be included on each tier.
G. The proposed rates to be charged, including rates for each service tier, as appropriate, and charges for installation, converters, and other services.
H. Information as necessary to demonstrate compliance with all relevant requirements contained in this chapter.
I. A demonstration of how the proposal is reasonable to meet the current and future cable-related community needs and interests. In particular, the application should describe how the proposal will satisfy the needs as analyzed in any recent community needs assessment commissioned by the City.
J. A demonstration that the proposal is designed to be consistent with all federal and state requirements.
K. Pro forma financial projections for each year of the franchise term. The projections shall include a statement of income, expenses, revenue, balance sheets, statement of sources and uses of funds, and schedule of capital additions. All significant assumptions shall be explained in notes or supporting schedules that accompany the projections.
L. A complete list of all cable communications systems in which the applicant, controlling entity of applicant, subsidiary or affiliate of applicant or its controlling entity, or a principal thereof, holds an equity interest. For each system listed, provide the following information:
1. franchise term,
2. date of expiration,
3. number of subscribers,
4. number of homes passed,
5. number of route miles,
6. channel capacity,
7. rate for basic service,
8. name of franchising authority, including the address, phone number, and name of the person responsible for oversight of the cable system. If a cable system encompasses agreements with more than one franchising authority, provide the requested information for each franchising authority.
M. An affidavit of the applicant or duly authorized officer thereof, certifying, in a form acceptable to the City, the truth and accuracy of the information contained in the application and acknowledging the enforceability of application commitments.
N. In the case of an application by an existing franchisee for a renewed franchise, a demonstration that said franchisee has substantially complied with the material terms of the existing franchise and with applicable law.
O. Other information that the City, or its agents, may request of the applicant.
[Ord. C29734; Passed: 7/2/1990]
10.27.230 Applicant Representatives.
Any person who files an application with the City for a cable television franchise shall forthwith, at all times, disclose to the City, in writing, the names, addresses and occupations of all persons who are authorized to represent or act on behalf of the applicant in those matters pertaining to the application. The requirement to make such disclosure shall continue until the City shall have rejected an applicant’s application or until an applicant withdraws its application.
[Ord. C29734; Passed: 7/2/1990]
10.27.240 Consideration of Applications.
A. The City will consider each application for a franchise where the application is found to be acceptable for filing and in substantial compliance with the requirements of this chapter and any applicable RFP. In evaluating an application the City will consider, among other things, the applicant’s past service record in other communities, the nature of the proposed facilities and services, proposed rates, and whether the proposal would adequately serve the public needs and the overall interests of the citizens of the City. Where the application is for a renewed franchise, the City shall consider whether:
1. The applicant has substantially complied with the material terms of the existing franchise and with applicable law;
2. The quality of the applicant’s service, including signal quality, response to consumer complaints, and billing practices (but without regard to the mix, quality, or level of cable television services or other services provided over the system) has been reasonable in light of community needs;
3. The applicant has the financial, legal and technical ability to provide the services, facilities, and equipment as set forth in the application; and
4. The applicant’s proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests.
B. Where the City determines that an applicant’s proposal, including the proposed service area, would serve the public interest, it may grant a franchise to the applicant. The franchise agreement will constitute a contract, freely entered into, between the City and the franchisee. Said franchise agreement shall incorporate by reference the provisions of this chapter. Any such franchise must be approved by ordinance of the council.
C. In the course of considering an application for a renewed franchise, the council shall hold a public hearing in which the public and a franchisee seeking renewal shall be offered an opportunity to speak, offer evidence and question witnesses. Notice of any such public hearing shall, at least ten days before the date of the hearing, be published in a local newspaper of general circulation in the city and be sent by certified mail to each applicant to be considered. A transcript or recording shall be made of such hearing at the applicant’s expense. Based on the record of such hearing and the application (including any negotiations relative thereto), the council shall determine whether to grant a renewed franchise and shall issue a written opinion stating the reasons for its decision. Any denial of an application for a renewed franchise shall be based on one or more adverse findings made with respect to the factors described in subsection (A) of this section.
[Ord. C29734; Passed: 7/2/1990]
10.27.250 Acceptance.
A. A franchise and its terms and conditions shall be accepted by a franchisee by written instrument, in a form acceptable to the city clerk, and filed with the City within thirty days after the granting of the franchise by the City. In its acceptance, a franchisee shall declare that it has carefully read the terms and conditions of this chapter and the franchise and accepts all of the terms and conditions of this chapter and the franchise and agrees to abide by same. In accepting a franchise a franchisee shall indicate that it has relied upon its own investigation of all relevant facts, that it had the assistance of counsel, that it was not induced to accept a franchise, and that it accepts all reasonable risks related to the interpretation of the franchise.
B. A franchise granted pursuant to this chapter shall not take effect until the applicant pays a grant fee to the City. The grant fee shall be as specified in a franchise agreement, but it shall not exceed the City’s direct costs in the franchising process, including any costs associated with the publication of this chapter and a franchise, the cost of services provided by City staff, and the cost of outside consultants, less the application filing fees received. The City shall provide to a franchisee a statement summarizing such costs prior to the execution of the franchise.
[Ord. C29734; Passed: 7/2/1990]
Article IV. Franchise Conditions
10.27.300 Franchise Term.
The term of a franchise shall be as specified in a franchise agreement, but it shall not exceed fifteen years. If a franchisee seeks authority to operate a cable system in the city beyond the term of its franchise, it shall file an application for a new franchise not later than thirty months prior to the expiration of its franchise.
[Ord. C29734; Passed: 7/2/1990]
10.27.310 Franchise Fee.
A. A franchisee, in consideration of the privilege granted under a franchise for the use of public ways and the privilege to construct and operate a cable television system, shall pay to the City five percent of its annual gross revenues during the period of its operation under the franchise.
B. A franchisee shall file with the City, by the end of each calendar month, a financial statement showing the gross revenues received by franchisee during the preceding calendar month. A franchisee shall pay the monthly portion of the franchise fee to the City on or before the time such financial statement is due to be filed in a form and manner specified by the City. A franchisee shall also file, no later than March 31st of each year, the franchisee’s financial statements and balance sheet for the preceding year. Any franchise fee payment in adjustment for any shortfall of the total monthly payments for the previous year shall be made at that time. Adjustments for any overpayment shall be by credit to subsequent monthly payments. If the City reasonably determines, after examination, that an underpayment of franchise fees may exist, the City may require a franchisee to submit a financial statement audited by an independent “Big Six” public accountant. The franchisee shall bear the cost of such audit.
C. The City shall have the right, consistent with the provisions of SMC 10.27.410, to inspect a franchisee’s income records, to audit any and all relevant records, and to recompute any amounts determined to be payable under a franchise and this chapter.
D. In the event that any franchise payment is not received by the City on or before the applicable dates, interest shall be charged from such due date at the rate of twelve percent per annum.
E. In the event a franchise is revoked or otherwise terminated prior to its expiration date, a franchisee shall file with the City, within ninety days of the date of revocation or termination, an audited financial statement showing the gross revenues received by the franchisee since the end of the previous year and shall make adjustments at that time for the franchise fees due up to the date of revocation or termination.
F. Nothing in this chapter shall limit the City’s authority to tax a franchisee, or to collect any fee or charge, and no immunity from any such obligations shall attach to a franchisee by virtue of this chapter.
[Ord. C29734; Passed: 7/2/1990]
Cross Reference: SMC 8.02.062.
10.27.315 Publication Costs.
A franchisee shall be responsible for all costs of publication of this chapter, its franchise, and any other enactments of the City with respect to cable television. Such costs shall include, but are not limited to, the cost of publication in any newspaper.
[Ord. C29734; Passed: 7/2/1990]
10.27.320 Insurance, Bonds, Indemnity.
A. Upon the granting of a franchise and following simultaneously with the filing of the acceptance of the franchise and at all times during the term of the franchise, including the time for removal of facilities or management as a trustee as provided for herein, a franchisee shall obtain, pay all premiums for, and deliver to the City, written evidence of payment of premiums for and a certificate of insurance for the following:
1. A comprehensive commercial or general liability insurance policy or policies, issued by an insurance carrier licensed to do business in the State of Washington and reasonably acceptable to the City. Said policy or policies shall pay on behalf of and defend the City, its officials, boards, commissions, agents or employees from any and all claims by any person whatsoever (including the costs, defense costs, attorneys’ fees and interest arising therefrom) on account of personal injury, bodily injury or death of a person or persons or damages to property occasioned by the operations of a franchisee under a franchise herein granted, or alleged to have been so caused or occurred, with a minimum combined single limit of one million dollars per occurrence and five million dollars in the annual aggregate. The City reserves the right to revise policy limits as reasonably necessary to provide adequate coverage.
2. A comprehensive automobile liability insurance policy or policies, issued by an insurance carrier licensed to do business in the State of Washington and reasonably acceptable to the City. Said policy or policies shall pay on behalf of and defend the City, its officials, boards, commissions, agents or employees from any and all claims by any person whatsoever (including the costs, defense costs, attorneys’ fees and interest arising therefrom) for bodily injury and property damage occasioned by any vehicle operation of a franchisee, or alleged to have been so caused or occurred, with a minimum liability of one million dollars per person and five million dollars in any one accident or occurrence. The City reserves the right to revise policy limits as reasonably necessary to provide adequate coverage.
B. If a franchisee undertakes any construction with regard to the cable system, the cost of which exceeds five hundred thousand dollars, the franchisee shall maintain, at its sole cost and expense, a corporate surety bond for said construction issued by a surety company authorized to do business in the State of Washington and reasonably acceptable to the City. Said construction bond shall assure the City of recovery of any and all liability damages, losses, costs, and expenses sustained or suffered by the City as a result of the franchisee’s construction of the cable communications system or the failure of franchisee to satisfactorily and timely complete its planned construction. In no event shall the amount of the construction bond be construed to limit any liability of a franchisee.
1. The amount of the construction bond shall be up to one hundred percent of the estimated cost of the planned construction, such amount to be set by the City. In the event that there is a dispute over the estimated cost of the planned construction, the City’s reasonable estimate shall be final and binding for purposes of this subsection.
a. When a franchisee can show to the satisfaction of the City that twenty-five percent of the planned construction has been completed, the franchisee may reduce the amount of the construction bond by an amount equal to twenty-five percent of the original amount of the bond, upon written approval from the City.
b. When a franchisee shows to the satisfaction of the City that fifty percent of the planned construction has been completed, the franchisee may further reduce the amount of the construction bond by an amount equal to twenty-five percent of the original amount of the bond, upon written approval by the City.
c. When a franchisee further shows to the satisfaction of the City that seventy-five percent of the planned construction has been completed, the franchisee may further reduce the amount of the construction bond by an amount equal to twenty-five percent of the original amount of the bond, upon written approval by the City.
d. When the planned construction is completed to the satisfaction of the City and written notice of such satisfaction has been received by a franchisee, the construction bond need no longer be maintained.
2. The construction bond shall contain the following endorsement: “It is hereby understood and agreed that this bond shall not be canceled by the surety, nor the intention not to renew be stated by the surety, until sixty days after receipt by the City, by registered mail, of a written notice of such intent to cancel or not to renew.”
C. All bonds and insurance policies called for herein shall be in a form satisfactory to the city attorney. The City may at any time, if it reasonably deems itself insecure, require a franchisee to provide additional sureties to any and all bonds or to replace existing bonds or insurance policies with good and sufficient sureties or insurers approved by the City. No bond or insurance policy shall be cancellable during its term.
D. A franchisee shall, at its sole cost and expense, indemnify and hold harmless the City, its officials, boards, commissions, agents and employees against any and all third party claims, suits, causes of action, proceedings, and judgments for damage arising out of the operation and construction of the cable communications system under a franchise, except that no such requirement shall apply where such claims, suits, causes of actions, proceedings, and judgments for damage are occasioned solely by the negligence, gross negligence or intentional acts of the City or its officials, boards, commissions, agents and employees while acting on behalf of the City. These damages shall include, but not be limited to, penalties arising out of copyright infringements and damages arising out of any failure by a franchisee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the franchisee’s cable communications system whether or not any act or omission complained of is authorized, allowed, or prohibited by the franchise. Indemnified expenses shall include, but not be limited to, all out-of-pocket expenses, such as costs and attorneys’ fees, and shall also include the reasonable value of any services rendered by the city attorney, assistant city attorneys or any outside consultants employed by the City.
E. No franchisee shall permit any policy or bond to expire and a franchisee, not less than thirty days prior to its expiration, shall deliver to the City a substitute, renewal or replacement policy or bond conforming with the provisions of this chapter.
[Ord. C29734; Passed: 7/2/1990]
10.27.330 Letter of Credit.
A. A franchisee shall deposit with the City a letter of credit from a financial institution chosen by the franchisee and reasonably approved by the City in the amount set by the City, but not to exceed one million dollars. The letter of credit may not be revoked or terminated during the term of a franchise plus an additional sixty days except with written approval of the City. The form and content of such letter of credit shall be approved by the city attorney. The letter of credit shall be used to insure the faithful performance by a franchisee of all provisions of the franchise and this chapter, compliance with all orders, permits, and directions of any agency, commission, board, department, division, or office of the City having jurisdiction over its acts or defaults under the license, and the payment by the franchisee of any costs, claims, liens, liquidated damages, and taxes due the City which arise by reasons of the construction, operation, or maintenance of the system, or breach or termination of a franchise.
B. The letter of credit shall be maintained by a franchisee at one million dollars or such lesser amount as the City shall determine during the entire term of the franchise, as the City may require, even if funds are drawn against it pursuant to this chapter.
C. The letter of credit shall contain the following endorsement: “It is hereby understood and agreed that this letter of credit may not be canceled by the surety nor the intention not to renew be stated by the surety until sixty days after receipt by the city clerk, by certified mail, of a written notice of such intention to cancel or not to renew.”
D. At the City’s option, it may draw against the letter of credit for unpaid any liquidated damages, franchise fees or other amounts owing to it under a franchise which are thirty days or more past due.
E. The rights reserved to the City with respect to the letter of credit are in addition to all other rights of the City, whether reserved by this chapter or related documents or authorized by law, and no action, proceeding or exercise of a right with respect to such letter of credit shall affect any other right the City may have.
[Ord. C29734; Passed: 7/2/1990]
10.27.340 Liquidated Damages.
A. Because a franchisee’s failure to comply with the provisions of this chapter and its franchise will result in damage to the City and because it will be impractical to determine the actual amount of such damages, the City and any franchisee shall agree upon and specify in a franchise certain amounts which represent both parties’ best estimate of the damages.
B. The City shall calculate the amount of any damages subject to the requirements of a franchise and mail notice thereof to a franchisee. Such a notice may provide for damages sustained prior to the notice and subsequent thereto pending compliance by a franchisee.
C. The liquidated damages provided in a franchise shall be the exclusive monetary remedy for the named breaches. Neither the right to liquidated damages nor the payment of liquidated damages shall bar or otherwise limit the right of the City in a proper case to:
1. obtain judicial enforcement of a franchisee’s obligations by means of specific performance, injunctive relief, mandamus or other remedies at law or in equity;
2. consider any substantial violation or breach as grounds for forfeiture and termination of a franchise pursuant to this chapter; and
3. consider any violation or breach as grounds for nonrenewal or nonextension of a franchise or issuance of a new franchise.
D. In any action, either for liquidated damages or to enforce obligations under a franchise, the prevailing party shall be entitled to reasonable attorneys’ fees and costs.
[Ord. C29734; Passed: 7/2/1990]
10.27.350 Forfeiture and Termination.
A. In addition to all other rights and powers retained by the City under this chapter and any franchise issued pursuant thereto, the council reserves the right to forfeit and terminate a franchise and all rights and privileges of a franchisee in the event of a substantial violation or breach of its terms and conditions. A substantial violation or breach by a franchisee shall include, but shall not be limited to, the following:
1. An uncured violation of any material provision of this chapter or a franchise issued thereunder, or any material rule, order or regulation of the City made pursuant to its power to protect the public health, safety and welfare;
2. An attempt to evade any material provision of a franchise or practice of any fraud or deceit upon the cable communications system customers and subscribers or upon the City;
3. Failure to begin or substantially complete any system construction or system extension as set forth in a franchise;
4. Failure to provide the services promised in the application or specified in a franchise, or a reasonable substitute therefor;
5. Failure to restore service after ten consecutive days of interrupted service, except when approval of such interruption is obtained from the City;
6. Misrepresentation of materials fact in the application for, or during negotiations relating to, a franchise;
7. A continuous and willful pattern of inadequate service and failure to respond to subscriber complaints; or
8. Failure to provide insurance, construction bond, letter of credit, or indemnity as required by a franchise or this chapter.
B. None of the foregoing shall constitute a substantial violation or breach if a violation or breach occurs which is without fault of a franchisee or occurs as a result of circumstances beyond a franchisee’s reasonable control. A franchisee shall not be excused by economic hardship nor by nonfeasance or malfeasance of its directors, officers, agents or employees; provided, however, that damage to equipment causing service interruption shall be deemed to be the result of circumstances beyond a franchisee’s control if it is caused by any negligent act or unintended omission of its employees (assuming proper training) or agents (assuming reasonable diligence in their selection), or sabotage or vandalism or malicious mischief by its employees or agent. A franchisee shall bear the burden of proof in establishing the existence of such conditions.
C. Should it desire to invoke forfeiture, the City shall make a written demand by certified mail that a franchisee comply with any provision, rule, order, or determination under or pursuant to a franchise. If the violation or breach by a franchisee continues for a period of thirty days following such written demand without written proof that the corrective action has been taken or is being actively and expeditiously pursued, the council may consider terminating a franchise; provided, that:
1. a written notice thereof shall be given to the franchisee at least fifteen days in advance of any meeting at which the council may consider the termination of a franchise; and
2. a franchisee must be given an opportunity to appear before the council in a public hearing to present its arguments, including the opportunity to offer evidence and question witnesses. A transcript or recording shall be made of such hearing. Based on the evidence of such hearing, the council shall determine whether to terminate the franchise and shall issue a written opinion stating the reasons for its decision.
D. Should the council determine, following the public hearing, that the violation or breach by a franchisee was the fault of the franchisee and within the franchisee’s control, the council may, by resolution, declare that the franchise be forfeited and terminated; provided, however, the council may, in its discretion, provide an opportunity for the franchisee to remedy the violation or breach and come into compliance with the franchise and this chapter so as to avoid the termination.
[Ord. C29734; Passed: 7/2/1990]
10.27.360 Foreclosure.
Upon the foreclosure or other judicial sale of all or a substantial part of the cable communications system facilities, or upon the termination of any lease covering all or a substantial part of the cable communications system, or upon the occasion of additional events which effectively cause termination of the system’s operation, a franchisee shall notify the City of such fact, and such notification or the occurrence of such terminating events shall be treated as a notification that a change in control of the franchisee has taken place, and the provisions of this chapter governing the consent of the City to such change in control of the franchisee shall apply.
[Ord. C29734; Passed: 7/2/1990]
10.27.370 Receivership.
A. The City shall have the right to cancel a franchise one hundred twenty days after the appointment of a receiver or trustee to take over and conduct the business 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 said one hundred twenty days, or unless:
1. Within one hundred twenty days after the election or appointment, such receiver or trustee shall have fully complied with all of the provisions of this chapter and a franchise and remedied any defaults thereunder; and
2. Within one hundred twenty days, such receiver or trustee shall have executed an agreement, duly approved by the court having jurisdiction, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this chapter and a franchise granted to the franchisee except where expressly prohibited by Washington law.
B. A franchisee shall immediately notify the City in writing if it:
1. files a voluntary petition in bankruptcy, a voluntary petition to reorganize its business, or a voluntary petition to effect a plan or other arrangement with creditors;
2. files an answer admitting the jurisdiction of the court and the material allegations of an involuntary petition filed pursuant to the Bankruptcy Code, as amended; or
3. is adjudicated bankrupt, makes an assignment for the benefit of creditors, or applies for or consents to the appointment of any receiver or trustee of all or any part of its property including all or any part of its cable system.
[Ord. C29734; Passed: 7/2/1990]
10.27.380 Purchase of Cable System by City.
A. In the event the City decides not to grant a new franchise to a franchisee, the City shall have the right to purchase the system at its fair market value, which may take into account both the replacement cost and the going-concern value of the system. The fair market value shall be reduced by the amount of any lien, encumbrance or financial obligation which the City will assume.
1. “Replacement cost” is the cost of building a new system, using the latest technology and current costs, minus an allowance for the age, condition and technical obsolescence of the present system.
2. “Going-concern value” shall mean benefits that attach to the business as a result of its location in the city, a franchisee’s reputation among subscribers or potential subscribers for dependability and quality of service, and any other circumstances resulting in probable retention of old subscribers or acquisition of new subscribers; except no value shall be assigned to the franchise itself.
B. In the event the City revokes, forfeits or terminates a franchise for cause, it shall have the right to purchase the cable system for an equitable price. An equitable price takes into account the nature of a franchisee’s breach or malfeasance and the resulting harm to the community; it is not based on fair market value or going concern value.
C. In the event the parties are unable to agree upon a price pursuant to subsection (A) or (B) of this section, whichever is applicable, said price shall be fixed and determined by a disinterested professional appraiser. The appraiser shall be chosen according to the procedure set forth in the Washington arbitration statute, RCW chapter 7.04. The appraiser thus selected shall file an appraisement of either the fair and reasonable market value of said business and property of a franchisee, or the equitable price for said business and property, depending on whether the City seeks to purchase the cable system pursuant to subsection (A) or (B) of this section, as of the date of the exercise of this option. The appraisement shall be filed within sixty days after the selection of the appraiser as aforesaid. Said appraisement shall be in writing and shall be filed with both the City and the franchisee. The cost of said appraisal shall be borne equally by the City and the franchisee.
D. Upon receiving a valuation by the appraiser pursuant to subsection (C) of this section, the City has the right, in its sole discretion, to decline purchasing the cable system. If the City chooses to purchase the cable system, it shall do so upon payment in accord with the written report of the appraiser. Decisions of the appraiser are binding and shall not be appealed by either party to any court; except that a franchisee may litigate in a court of competent jurisdiction whether the individual is a qualified and disinterested appraiser.
E. Upon exercise of the option to purchase and the payment of the purchase price by the City and its service of official notice of such action upon a franchisee, the franchisee shall immediately transfer to the City possession and title to all facilities and property, real and personal, of the cable television system, free from any and all liens and encumbrances not agreed to be assumed by the City, and the franchisee shall execute such warranty deeds or other instruments of conveyance to the City as shall be necessary for this purpose.
[Ord. C29734; Passed: 7/2/1990]
10.27.390 Removal of Cable Communications System.
Upon termination or nonrenewal of a franchise as provided herein, a franchisee shall forthwith, upon notice by the City, remove at its own expense all designated portions of the cable communications system from all streets and public ways within the city and shall restore said streets and public ways to their former condition; provided, however, a franchisee shall have the right to sell its physical plant to a subsequent franchisee, subject to City approval, in which case said plant need not be removed. If a franchisee fails to remove its facilities upon request, the City may perform the work at the franchisee’s expense. The requirements of this section shall not apply to underground cable that has been de-energized and for which an accurate map (“as built”) has been provided to the City describing in detail the location of such cable; except that the City may continue, in its sole discretion, to require removal where necessary to avoid congestion or, at its option, remove such cable.
[Ord. C29734; Passed: 7/2/1990]
10.27.395 Transfer of Ownership or Control.
A. A franchise issued pursuant to this chapter shall not be sold, assigned, transferred, leased, or disposed of, either in whole or in part, either by involuntary sale or by voluntary sale, merger, consolidation, or otherwise hypothecated 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 or entity, or the controlling interest in any corporation holding a franchise hereunder be changed, without the prior consent of the council, and then only under such conditions as may be required by the council. Such a transfer of control is not limited to major interest holders but includes actual working or de facto control by minor holders in whatever manner exercised; provided, however, such a transfer of control shall not include transfer to a parent or affiliate of a franchisee, except when such transfer is intended to avoid application of this section. Every change, transfer, or acquisition of control of a franchisee shall make a franchise subject to cancellation unless and until the City shall have consented. Such consent shall not be unreasonably withheld. A rebuttable presumption that a change in controlling interest has occurred shall arise upon the acquisition or accumulation by any person or group of persons of five percent of the voting shares of a franchise.
B. A franchisee shall promptly notify the City of any proposed change in control of the franchisee. A formal application for approval of a proposed transfer of control shall be filed within thirty days of such notification. The application shall include, among other things, a copy of any and all documents relating to the sale or transfer and any filings by any party to the transaction at any state or federal agency including, but not limited to, the FCC, the Department of Justice, the Federal Trade Commission, and the Securities and Exchange Commission. An original of the text of the application shall be filed with the City.
C. The proposed purchaser, transferee, or assignee must show financial responsibility as determined by the City and must agree to comply with all provisions of a franchise, including any provisions which the City may amend or add prior to approval of the transfer.
D. For the purpose of determining whether it shall consent to such change, transfer, or acquisition of control, the City may inquire into all qualifications of the prospective controlling party, and a franchisee shall assist the City in any such inquiry. The City may require any reasonable conditions which it deems necessary at the time of review to ensure that the cable communications system will satisfy the public interest of the City and its citizens for the balance of the term of a franchise.
E. SMC 10.27.240 shall apply to any transfer as if the transferee were an applicant for a new franchise.
F. Nothing herein prevents a franchisee from financing construction or operation of a cable system by pledging the system as collateral.
[Ord. C29734; Passed: 7/2/1990]
Article V. Subscriber Fees and Records
10.27.400 Subscriber Fees and Rates.
A. The initial fees to be charged to subscribers for all services, including installation fees and other one time charges, shall be specified in any franchise agreement issued pursuant hereto.
B. Those fees and charges subject to regulation by the City pursuant to state and federal law shall not be increased without prior approval of the City. The City reserves the right to regulate rates for any service pursuant to changes in federal or state law which would authorize such regulation. The City reserves the right to establish procedures for any lawful regulation of rates.
C. Rates shall be just and reasonable, considering a franchisee’s costs, including a reasonable rate of return on investment over the remaining term of a franchise, and shall not give any undue or unreasonable preference or advantage to any subscriber or class of subscribers.
D. Rates and charges may be reduced at any time without prior City approval; provided, that the reductions do not result in rates which are unreasonably discriminatory to any subscriber or class of subscribers, except for rates which are lowered in response to the rates offered by any other franchisee which is not serving the entire franchise area. Where temporary reductions are put into effect for promotional purposes for a specified time period, the return to the permanent rates shall not be considered a rate increase for purposes of this chapter.
E. Rates and charges not subject to regulation by the City under state or federal law or regulation may be changed by a franchisee following a minimum thirty days prior written notice to the City and each subscriber.
[Ord. C29734; Passed: 7/2/1990]
10.27.410 Reports.
To facilitate timely and effective enforcement of this chapter and any cable television franchise and to develop a record for purposes of determining whether to renew any cable communications franchise, the City may, upon thirty days’ notice, require reports as specified in this section.
A. Annual report. No later than March 31st of each year, if requested by the City, a franchisee shall file a written report with the City, which shall include:
1. a summary of the previous calendar years activities in development of this system, including but not limited to services begun or dropped, number of subscribers (including gains and losses), homes passed, and miles of cable distribution plant in service (including different classes if applicable).
2. an audited financial statement, including a statement of income, a statement of retained earnings, a balance sheet, a statement of sources and applications of funds, a fixed asset statement showing for each account or category, the original cost and accumulated depreciation balances and activity, and a depreciation statement showing the detailed calculation of depreciation expense for the year. The statement shall include notes that specify all significant accounting policies and practices upon which it is based (including, but not limited to, depreciation rates and methodology, overhead and intrasystem cost allocation methods, and basis for interest expense). A summary shall be provided comparing the current year with previous years since the beginning of a franchise. The statement shall contain a summary of franchise fee payments and any adjustment thereto as specified in SMC 10.27.310. In any year the City requires an audited financial statement pursuant to this subsection, and an audited financial statement in compliance with this subsection is provided by a franchisee, that franchisee shall not be required to submit another audited financial statement for that year which otherwise may be required by SMC 10.27.310.
3. a current statement of cost of any construction by component category.
4. a summary of complaints, identifying the number and nature of complaints and their disposition.
5. if a franchisee is a corporation, a list of officers and members of the board and the officers and board members of any parent corporation.
6. a list of all partners or stockholders holding one percent or more ownership interest in a franchisee and any parent corporation; provided, however, that when any parent corporation has in excess of one thousand shareholders and its shares are publicly traded on a national stock exchange, then a list of the twenty largest stockholders of the voting stock of such corporation shall be disclosed.
7. a copy of all a franchisee’s written rules and regulations applicable to subscribers and users of the cable system.
8. any additional information related to operation of the cable communications system as reasonably requested by the City.
B. The City may specify the form and details of all reports, with franchisee given an opportunity to comment in advance upon such forms and details. The City may change the filing dates for reports upon reasonable request of a franchisee.
C. A franchisee shall, annually, make available to the City for inspection construction plan and schedule for the following twelve months.
D. A franchisee shall submit a copy, at its expense, of the final report on each proof of performance test of each technical parameter defined in part 76 of the Rules and Regulations of the FCC, to the City within ten working days of completion of such reports. If the FCC shall cease to require such test, or if the FCC’s regulations do not apply pursuant to 47 C.F.R. section 76, a franchisee shall continue to conduct such tests at least once each calendar year (at intervals not to exceed fourteen months), shall provide a copy of each final report to the City within ten working days of completion of such reports and shall maintain the resulting test data on file at its local office for at least five years. The City subsequently may require a full report on any deficiencies as disclosed by the proof of performance test within such reasonable period of time as it may designate.
E. A franchisee shall make available to the City for inspection, as the City may request, a copy of all maps and charts of cable locations prepared by or for the franchisee during the duration of the franchise.
F. The City shall have the right to inspect all construction and installation work performed by a franchisee subject to this chapter as it shall find necessary to insure compliance with governing ordinances and the franchise, and shall have the right to inspect a frachisee’s cable communications system.
[Ord. C29734; Passed: 7/2/1990]
10.27.420 Records.
A franchisee shall maintain a complete set of books and records within the City of Spokane. Upon reasonable notice to a franchise, the City will have the right to inspect all records relating to the cable operations at any time during normal business hours.
[Ord. C29734; Passed: 7/2/1990]
10.27.430 Filings.
A franchisee shall mail or deliver to the city clerk a copy of all filings which may materially impact the obligations of a franchisee under this chapter or a franchise, except tax returns, that it makes with state and/or federal agencies. “Filings” shall include, but shall not be limited to, replies to notices of violations, and responses to letters of inquiry. Said copies shall be mailed or delivered on the filing date.
[Ord. C29734; Passed: 7/2/1990]
Article VI. Standards
10.27.500 System Technical Standards.
The cable communications system to be installed by a franchisee shall comply in all respects with the technical performance requirements set forth by the Federal Communication Commission. The City reserves the right to amend, in its sole discretion, this chapter or a franchise to incorporate reasonable technical performance standards in the event it has the legal authority to promulgate such standards.
[Ord. C29734; Passed: 7/2/1990]
10.27.510 Access and Local Programming.
A. The City believes that local programming can play a distinctive, valuable, and essential role as part of a cable television system. A successful community programming operation requires the cooperation and support of a franchisee, the City, and the public over an extended period of time. Applications for a franchise may include proposals for the provision of public, education, and local government access channels, and local origination programming, including facilities and support services sufficient to meet community needs. Applicants are encouraged to include proposals for local origination programming by a franchisee. All local programming equipment, facilities, and support services – whether supplied directly by a franchisee or through grant funds provided by the franchisee – shall be available for noncommercial use to all users in the community including a franchisee. All proposals shall conform to the following requirements.
1. A franchisee shall provide equipment, directly or through grants, for local program production by all cable users and live and video-taped presentation over the cable television system in addition to automated services.
2. A franchisee shall have no control over the content of access programs. The City may require a franchisee or a nonprofit corporation or other entity selected to manage the access program to establish reasonable rules for the use of access channels consistent with the requirements of this chapter, a franchise, other applicable law and the intended purpose of such channels. Such rules shall be subject to review and approval by the City.
3. Any public access channel shall be made available to any member of the public on a nondiscriminatory basis at no charge for channel or equipment use, except as otherwise provided in access rules developed by a franchise, and approved by the City. Use of personnel for production of public access programming shall be made available consistent with the goal of affording users a low-cost means of television access and the requirements of a franchise.
4. Any education access channel shall be made available free of charge to all qualified users for transmission of local educational programming.
5. Any local government access channels shall be made available free of charge for the transmission of government related programming.
6. A franchisee shall provide for a training program for access users sufficient to meet the demand for such a program.
B. The City shall promulgate rules under which channel capacity dedicated to access use may be used by a franchisee when it is not being used for access purposes.
[Ord. C29734; Passed: 7/2/1990]
10.27.520 Leased Access.
A franchisee shall make channels available for leased or commercial use as specified in a franchise consistent with federal requirements.
[Ord. C29734; Passed: 7/2/1990]
10.27.530 Public Drops.
A. A franchisee shall provide without charge within the franchise area one drop activated for basic subscriber cable television service to each fire station, public school, police station, public library, City Hall, and other such buildings used for public purposes as may from time to time be designated by the City. A franchisee may petition the City for a waiver of this requirement, such waiver to be granted for good cause shown. A franchisee shall be permitted to recover, at the franchisee’s actual cost, for any additional converters required, and for the franchisee’s direct cost of installing, when requested to do so, more than one outlet, concealed inside wiring, or a service outlet requiring more than one hundred fifty feet of cable. Nothing in this section shall be construed to prohibit the City and a franchisee from reaching an agreement whereby the franchisee would bear the burden for all or a portion of the cost of installing any equipment (including wiring) necessary to cablecast meetings of the city council.
B. A franchisee shall also provide without charge basic subscriber service to all members of the cable advisory board established pursuant to SMC 10.27.900. The purpose of this section is to enable the cable advisory board to determine compliance with provisions of any franchise agreement and this chapter.
[Ord. C29734; Passed: 7/2/1990]
10.27.540 Institutional Services.
A franchisee may provide institutional services over the cable system subject to the terms specified in the franchise and, if provided, to the following requirements:
A. Institutional services shall be provided upon reasonable request to businesses, institutions, governmental entities and others that are passed on institutional cable trunk or feeder line.
B. Each public building provided cable television service drops without charge shall also be provided drops for institutional service without charge if the institutional cable trunk or feeder line passes said building.
[Ord. C29734; Passed: 7/2/1990]
10.27.550 Standby Power.
A franchisee shall maintain equipment capable of providing standby power for the headends for a minimum of eight hours, and transportation and trunk amplifiers for a minimum of four hours. The standby power equipment shall engage automatically in the event of a power failure. A franchisee shall comply with all safety regulations to prevent standby generators from “back feeding” or otherwise powering the “dead” utility line.
[Ord. C29734; Passed: 7/2/1990]
10.27.560 Parental Control.
A. A franchisee shall provide subscriber controlled “lock-out” devices (audio and visual) at a reasonable charge to subscribers upon their request. These devices should provide the greatest degree of parental discretion and control. A franchisee shall consult with the City concerning the parental control device to be used in the system. A franchisee shall notify all subscribers in writing of the availability of these devices at the time of initial connection, and at least annually thereafter.
B. As to any program which is transmitted on a channel offered on a per channel or per program basis, a franchisee shall, upon request, block entirely the audio and video portion of such program from reception by any subscriber who does not subscribe to that particular channel. Scrambling of the signal shall not be sufficient to comply with this provision.
[Ord. C29734; Passed: 7/2/1990]
10.27.570 Emergency Audio Alert System.
The cable system shall be engineered, constructed and maintained to provide for an audio alert system. This audio alert system shall allow authorized officials of the City or its designated representatives to override automatically the “audio” signal on all channels and to transmit and report emergency information. A franchisee shall, in the case of any emergency or disaster, make its entire system available without charge to the City or any other governmental or civil defense agency that the City shall designate for the duration of such emergency or disaster.
[Ord. C29734; Passed: 7/2/1990]
Article VII. System Construction and Installation
10.27.600 Construction Standards.
A. Any cable system constructed within the city shall meet or exceed all technical standards consistent with this chapter, a franchise agreement, and a franchisee’s application.
B. In addition to the requirements of SMC 10.27.410(D), the City may require additional reasonable proof of performance tests not more often than annually and within ninety days of the completion of the construction of a new system or the upgrading or reconstruction of an existing system. In the event that the City requires proof of performance testing under this section, the City shall provide the franchisee with a detailed list of electrical tests and testing methodology which the City deems necessary to evaluate the performance of the new, upgraded, or reconstructed system. The City may observe the testing performed under this section, and may provide a list of locations and/or areas where the tests specified are to be performed. The City shall be entitled to recover from the franchisee fifty percent of all of its costs associated with defining tests and procedures, observation of said tests, and evaluation of test findings.
[Ord. C29734; Passed: 7/2/1990]
10.27.610 Construction and Installation Work.
A. Before commencing any construction in, above, over, across, under, through or in any way connected with the streets, public ways or public places of the City, a franchisee shall first submit to the City its plan and design maps. A franchisee may commence construction in accordance with such maps upon written approval by the mayor and the director of public works and utilities and upon issuance of all permits and licenses necessary to do the work; provided, however, that City approval shall not be unreasonably withheld. A franchisee shall give the City notice within a reasonable time prior to the commencement of the proposed construction, but in no event shall said notice be given less than seven days before such commencement unless waived by the City or unless shorter notice is reasonably necessary. Such construction shall be done under the supervision of the director of public works and utilities.
B. A franchisee or any other person acting on its behalf shall not obstruct, open, or otherwise disturb the surface of any street, sidewalk, driveway, public way or other public place for any purpose whatsoever without obtaining the approval to do so after proceeding in the manner prescribed above; provided for minor construction of an emergency nature, a franchisee may proceed upon oral approval from the city engineer.
C. Any obstruction, opening, or disturbance of any street, sidewalk, driveway, public way or other public place shall be properly guarded by adequate barriers, lights, signals and warnings to prevent danger to any person or vehicle. A franchisee shall, at its own cost and expense, restore and replace any property disturbed, damaged or any way injured by or on account of its activities to as good condition as said property was in immediately prior to the disturbance, damage, or injury. If a franchisee fails to comply with the requirements of the preceding sentence within ten days following written demand by the City, the City may cause such work to be done at the franchisee’s expense. Nothing in this subsection shall be interpreted to preclude a franchisee from passing onto a customer the actual construction costs associated with extending cable plant more than one hundred fifty feet.
D. A franchisee shall maintain all wires, conduits, cables and other real and personal property and facilities in good condition, order and repair. All cable facilities shall be maintained so as to further, to the extent reasonably possible, the objective of maintaining the aesthetic character of the City. The City, in its sole discretion, may determine whether a franchisee has complied with this requirement. If a franchisee fails to comply with this requirement, the City may cause such work to be done at the franchisee’s expense.
E. All construction, installation and maintenance must comply with the National Electrical Safety Code, the Washington State Electrical Construction Code, the National Electrical Code as adopted by the City, the Bell System Code of Pole Line Construction, the American Public Works Association Standard Specifications as adopted by the City, all state and local regulations, and good and accepted industry practices.
[Ord. C32755; Passed: 12/4/2000]
10.27.620 Location of Structures, Lines and Equipment.
A. A franchisee shall utilize existing poles, conduit systems and other facilities whenever possible, and shall not construct or install any new, different, or additional poles, conduit systems, or other facilities whether on public property or on privately owned property until approval of the property owner or appropriate governmental authority is obtained. Such governmental approval shall not be unreasonably withheld. However, the location of any pole or wire-holding structure by a franchisee shall not constitute a vested interest, and such poles, structures, or facilities shall be removed, replaced or modified by the franchisee at its own expense whenever the council or other governmental authority reasonably determines that the public interest so necessitates.
B. All transmission and distribution structures, lines, and equipment installed by a franchisee within the city shall be located so as to cause minimum interference with the proper use of streets, alleys and other public ways and places and to cause minimum interference with the rights or reasonable convenience of property owners who adjoin any of the streets, alleys or other public ways or places and where they will not interfere with any gas, electric, telephone, water or other pre-existing utility facility.
C. In those areas of the City where telephone and electric utility lines have been placed underground, a franchisee shall place its lines and installations underground. A franchisee may petition the City for a waiver of this requirement, such waiver to be granted for good cause shown. Trunk and feeder amplifiers, trunk and feeder splitters and other passives, and subscriber taps may be placed in low profile pedestals. Approval and use of low profile pedestals shall be made by the City prior to use by the franchisee. In new housing developments a franchisee shall install distribution cables at the same time utility facilities are being installed. A franchisee may petition the City for a waiver of this requirement, such waiver to be granted for good cause shown.
D. All cables and wires or other work shall be installed parallel with existing telephone and electric utility wires wherever possible. However, this provision does not relieve a franchisee of its obligation to place its lines and installations underground as required by subsection (C) of this section.
E. Multiple configurations shall be parallel arrangement and bundled in accordance with engineering and safety considerations.
F. All poles and other fixtures in any street or public way shall be placed in accordance with the laws and regulations of the City subject to provisions of subsection (C) of this section.
G. A franchisee shall, at its sole cost and expense, protect, support, temporarily disconnect, relocate in the same street or other public place, or remove from said street or other public place, any of its property when required to do so by the City because of: street or other public excavation; construction; repair; regrading or grading; traffic conditions; installation of sewers, drains or water pipes; City-owned power or signal lines; tracks; vacation or relocation of streets or any other type of structure or improvement of a public agency, or any other type of improvement necessary for the public health, safety or welfare.
H. The City shall have the right, during the term of a franchise, to install and maintain free of charge upon the poles and conduit systems of the franchisee any wire and pole fixtures and appurtenances. The City’s use of a franchisee’s poles and conduit systems shall not unreasonably interfere with the use or enjoyment of such poles and conduits by the franchisee.
I. A franchisee shall provide, at no charge, to any available “one number locator service,” as defined by RCW chapter 19.122, RCW 19.122.020(13), a list of all its underground facilities and equipment. A franchisee shall, before commencing excavation, provide notice of the scheduled commencement of excavation through the one-number locator service if such a service is available.
J. On request to a franchisee by any person who is authorized to perform work on any public right-of-way which has been used by a franchisee for erection of a cable communications system, a franchisee shall provide information regarding the type, location, height, and other pertinent information of poles, conduits and other structures which the franchisee has placed on said right-of-way. The reasonable cost of fulfilling such request shall be borne by the person making such request.
K. A franchisee shall locate the system headend and studio within the City of Spokane.
[Ord. C29734; Passed: 7/2/1990]
10.27.630 Replacement of Paving.
A franchisee at its own cost and expense and in the manner approved by the City shall replace and restore all paving, sidewalks, driveways, or surface of any street or alley disturbed, in at least as good condition as before the work was commenced and shall maintain the restoration in such improved condition. Failure of a franchisee to replace or restore such paving, sidewalk, driving or street surface within five business days after completion of work, or in the case of an arterial street failure of a franchisee to replace or restore the street surface within forty-eight hours after completion of work, shall authorize the City to cause the proper restoration to be made at the franchisee’s expense.
[Ord. C29734; Passed: 7/2/1990]
10.27.640 Moving of Buildings.
A franchisee shall, on the request of any person holding a valid house-moving permit, temporarily raise or lower its wires or cables to permit the moving of buildings or other large objects. The expense of such temporary raising or lowering of wires shall be paid by the person making the request, and a franchisee shall have the authority to require such payment in advance. A franchisee shall be given not less than seven days’ advance notice to arrange for such temporary wire changes, except in case of emergency. Any interruption in service occasioned by this activity shall take place, as far as is practicable, outside of prime time (7:00 p.m. to 11:00 p.m. local time).
[Ord. C29734; Passed: 7/2/1990]
10.27.650 Trimming Trees.
A franchisee shall have the authority to trim trees on public property or which overhang streets, alleys, sidewalks and public places of the City so as to prevent the branches of such trees from coming in contact with wires and cables and other television conductors and fixtures of the franchisee; provided, that the franchisee gives prior written notice for such activity to the City. All trimming is to be done at the sole expense and responsibility of a franchisee. A franchisee is solely responsible for damage caused by it, and must fully restore any such property damaged when so requested by the City.
[Ord. C29734; Passed: 7/2/1990]
10.27.660 Delays in Construction.
A. The following events shall take place upon failure by a franchisee to complete, in timely fashion, any construction set forth in the franchise:
1. reduction of the term of a franchise by one month for each entire month by which the construction was completed late. This shall be measured with respect to the date construction was due to be completed; however, this provision shall not take effect until construction is six months overdue;
2. if construction is more than twelve months overdue, forfeiture of the entire construction bond.
3. if construction is more than eighteen months overdue, termination of a franchise.
B. If a franchise is delayed at any time in the progress of construction by the failure of the appropriate public utility company or companies to diligently process pole attachment agreements or applications or to make such poles ready for attachment, or the failure of the City or other governmental authorities to diligently process applications for approval as may be required in connection with the construction of the cable system, or by labor disputes, fire, unusual delays in transportation, inability of a franchisee to procure materials, act of God, war, riots, insurrection or any causes beyond a franchisee’s control, and which could not have been reasonably anticipated, then a franchisee shall be granted an extension of time to complete construction. If an extension is granted, subsection (A) of this section shall not apply for that period of time by which a franchisee was delayed by reason of events beyond its control.
[Ord. C29734; Passed: 7/2/1990]
10.27.680 Repair of Damages.
A franchisee, its successors and assigns shall promptly repair any damage of every type and nature to City property or City improvements caused by the failure or workmanship of the franchisee’s work during the life of a franchise.
[Ord. C29734; Passed: 7/2/1990]
Article VIII. System Operation
10.27.700 Provision of Service.
A franchisee shall provide subscriber service on the following basis:
A. A franchisee shall not deny service, access, or otherwise discriminate against any person, including subscribers and users, on the basis of race, color, religion, national origin, age or sex. A franchisee shall comply at all times with all other applicable federal, state, and local laws and regulations.
B. In providing service a franchisee shall:
1. operate an office within the city open during normal business hours Monday through Friday, excluding legal holidays as set out in RCW 1.16.050.
2. provide a local toll-free telephone service capable of receiving subscriber service complaints, on a seven days a week, twenty-four hours a day basis.
3. provide service for new installations, reconnections, and relocations within seven business days of receipt of such requests.
4. establish a maintenance service capable of promptly locating and correcting system malfunctions. Service trucks shall be equipped for voice communication with a franchisee’s dispatcher. In order to permit a rapid response to any system-wide outage a franchisee shall have service trucks available for emergency duty to repair system outages during nonbusiness hours.
5. make every attempt to respond to customer complaints upon receipt, but in no case later than the next working day. Customer complaints, with the exception of service interruptions, shall be resolved within fourteen days. A franchisee, whenever reasonably practicable, shall make system repairs and testing (which would result in any interruption of service to subscribers) at times which will least affect typical subscriber television viewing habits; provided, however, a franchisee shall not be required to conduct such system repairs and testing during nonbusiness hours.
6. restore service interruptions within twenty-four hours. In those cases where service is not restored within twenty-four hours due to unusual circumstances, the reasons for the delay shall be fully documented in a complaint log. If after twenty-four hours, service is not restored to a subscriber, a franchisee shall, upon a subscriber’s written request and unless such service interruption is caused by force majeure, provide a refund or credit to such subscriber as hereinafter set forth. For each full twenty-four hour period and subsequent fractions thereof, the refund or credit shall be in the amount of one-thirtieth the monthly charge for each tier of service and each premium service which is unavailable to the subscriber. For the purposes of this paragraph, “force majeure” means labor disputes, fire, unusual delays in transportation, inability of a franchisee to procure materials, act of God, war, riots, insurrection or any causes beyond a franchisee’s control, and which could not have been reasonably anticipated.
7. give subscribers the option to be billed on a monthly basis. Billing complaints shall be responded to promptly, but in no event later than within seven days of receipt. A log of such complaints shall be maintained for inspection by the City. The log shall include the following information: name of complainant, nature of complaint, date and time received, disposition, and time and date of disposition. Such logs shall be maintained for a period of not less than two years.
8. be allowed to charge subscribers for the provision of additional outlets or the relocation of an outlet from one point in a dwelling to another in the same dwelling. The charge for additional outlets and for relocation shall be no greater than the charge for a new installation.
9. provide the City, upon request, any information pertaining to specific customer complaints. A franchisee shall keep a continuing record for at least two years of all customer complaints concerning billing or service matters received by the franchisee. The record shall include, at a minimum, the following information: name of complainant, nature of complaint, date and time received, disposition, and time and date of disposition. This record shall be available for inspection by authorized City representatives at the local office of the company during regular office hours. A franchisee shall also comply with all requests by City officials to deliver such record to the City for inspection. Delivery shall be made to the official(s) requesting such inspection.
C. As subscribers are connected or reconnected to the system, a franchisee shall, by appropriate means such as a card or brochure, furnish general subscriber information (including, but not limited to, terms of service and procedures for making inquiries or complaints, including the name, address, and local telephone number of the employee or employees or agent to whom such inquiries or complaints are to be addressed) and furnish information concerning the City office responsible for the administration of the franchise, including the address and telephone number of said office.
D. When similar complaints have been made by a number of subscribers, or where other evidence exists which, in the reasonable judgment of the City, casts doubt on the reliability or quality of the cable service, the City, notwithstanding any other provisions of this chapter, shall have the right and authority to require that a franchisee test, analyze, and report on the performance of the system. A franchisee shall fully cooperate with the City in performing such testing and shall prepare a written report of the results, if requested, within thirty days after notice. In the event that the City requires proof of performance testing under this section, the City shall provide the franchisee with a detailed list of electrical tests and testing methodology which the City deems necessary to evaluate the performance of the new, upgraded, or reconstructed system. The City may observe the testing performed under this section, and may provide a list of locations and/or areas where the tests specified are to be performed. In the event the franchisee fails to demonstrate minimum compliance with all of the defined parameters of the more stringent of either the FCC technical standards, or, if the City is permitted to establish its own technical standards and has done so, the City’s technical standards, then the City shall be entitled, upon notice to the franchisee, to recover from the franchisee all of its costs associated with defining tests and procedures, observation of said tests, and evaluation of test findings. If a franchisee is found to be in compliance with applicable standards, the cost of such testing and report shall be borne equally by the City and the franchisee.
[Ord. C29734; Passed: 7/2/1990]
10.27.710 Refunds and Service Terminations.
A. A franchisee shall establish and conform to the following policy regarding refunds to subscribers and users:
1. A franchisee may not require advance charges greater than the charge for one month’s service, and may not collect a deposit for use of equipment greater than one hundred and fifty dollars. In the event a franchisee assesses a deposit for use of equipment which is greater than fifty dollars, the franchisee may only collect the deposit in three equal, monthly installments. If a franchisee collects a deposit or installment thereof or advance charge on any service or equipment requested by a subscriber or user, the franchisee shall provide such service or equipment within thirty days of the collection of the deposit or installment thereof or charge or it shall refund such deposit or installment thereof or charge within five business days thereafter. Nothing in this section shall be construed:
a. to relieve a franchisee of any responsibility it may have under separately executed contracts or agreements with subscribers or users;
b. as limiting a franchisee’s liability for liquidated damages, if any, which may be imposed under a franchise for the violation or breach of any provisions thereof; or
c. to limit a franchisee’s liability for damages, if any, because of its failure to provide the service for which the deposit or installment thereof or charge was made.
2. In the event that a subscriber terminated service during the first six months of service because of the failure of a franchisee to render service substantially in accordance with the requirements set forth in this chapter and a franchise, the franchisee shall, upon written request, refund to such subscriber an amount equal to the initial installation or reconnection charge paid by the subscriber; provided, however, that nothing herein shall be deemed to entitle the subscriber to a refund of any other charges due the franchisee for its cable television service. The subscriber shall bear the burden of proof in establishing that he is entitled to a refund of initial installation or reconnection charges hereunder. A subscriber may appeal an adverse decision to the cable advisory board.
3. In the event that a subscriber terminating service because of the failure of a franchisee to render service substantially in accordance with the requirements set forth in this chapter and its franchise has made any additional advance payment, the amount so advanced shall be refunded to such subscriber within thirty days of service termination. Nothing in this provision shall be construed to relieve a franchisee of any liability established under any other provisions of this chapter or a franchise issued pursuant thereto.
4. If a subscriber decides to reinstate service, a franchisee may impose a reconnection charge, such charge not to exceed the fee for a new installation.
B. The following requirements shall apply to subscriber disconnection:
1. Subscribers shall have the right to disconnect a service installation or outlet at any time, subject to any reasonable contractual obligation. If a subscriber wishes to have a franchisee disconnect an installation service or outlet, all cable communications equipment shall be removed within a reasonable time from the subscriber’s property upon the subscriber’s request, such time not to exceed fourteen days from the date of request. A franchisee shall have the right to charge a subscriber for disconnection only in the event a franchisee is called to perform the disconnection. Such charge shall not exceed twenty-five dollars. Notwithstanding the foregoing, a franchisee shall not charge a subscriber for any disconnection service if the subscriber is age fifty five or older, or if the subscriber is handicapped as defined in the Rehabilitation Act.
2. A franchisee may charge a subscriber for cable communications services purchased by the subscriber for the entire calendar month in which the subscriber notified the franchisee of its desire to terminate service; provided, that the subscriber gives the franchisee notice at least forty eight hours before the end of the month. If a subscriber does not give notice as provided above, a franchisee may charge the subscriber for another month’s service. A franchisee shall provide cable communications service to subscribers after notice of termination of service if the franchisee continues to receive fees from the subscriber pursuant to this section.
3. If any subscriber fails to pay a properly due monthly subscriber’s fee, or any other properly due fee or charge, a franchisee may disconnect the subscriber’s service; provided, however, that such disconnection shall not be effected until thirty days after the due date of the monthly subscriber fee or charges and shall include a minimum ten days’ written notice to the subscriber of the intent to disconnect. After disconnection, upon payment in full of all proper fees or charges, including the payment of any reconnection charge (which shall not exceed the fee for a new installation), a franchisee shall promptly reinstate the service. Any interest charged for delinquent payments shall be at a rate no greater than the statutory rate for judgments.
4. Subsection (B)(3) of this section shall not apply to subscribers who previously have been disconnected for nonpayment in accordance with the provisions of this chapter.
[Ord. C29734; Passed: 7/2/1990]
10.27.720 Service Area.
A franchisee shall offer full cable communications service to all areas of the city unless specifically authorized to serve a lesser area. A franchise issued pursuant hereto shall require that all dwelling units within the franchise territory shall be offered service on the same terms and conditions; provided, however, multiple-family dwelling complexes, apartments or condominiums may be served on a master-billed basis and, further, service to motels, hotels, hospitals and similar businesses or institutions may be offered on terms and conditions different from single resident subscribers. In the event that subsequent to the issuance of a franchise the City annexes additional territory, consistent with its obligations under a franchise, a franchisee shall extend its cable communications services into the annexed area upon request of the City. A franchisee may petition the City for a waiver of this requirement, such waiver to be granted for good cause shown.
[Ord. C29734; Passed: 7/2/1990]
10.27.730 Protection of Privacy.
Protection of subscriber privacy shall be assured consistent with the provisions of 47 U.S.C. section 551.
[Ord. C29734; Passed: 7/2/1990]
10.27.740 Tampering or Unauthorized Connections.
A. It shall be unlawful for any person to make any connection, whether physically, electrically, acoustically, inductively, or otherwise, with any part of a franchised cable communications system within the city for the purpose of enabling anyone to receive any television signal or other information transmitted over the cable communications system, without the consent of a franchisee.
B. It shall be unlawful for any person, without the consent of a franchisee, to willfully tamper with, remove or injure any cables, wires or other cable communications system equipment except, however, a subscriber may disconnect a television receiver from the cable system at any time.
[Ord. C29734; Passed: 7/2/1990]
10.27.750 Continuity of Service.
A. Where a franchisee rebuilds or modifies its system, it shall ensure that all subscribers receive continuous, uninterrupted service regardless of the circumstances, unless otherwise authorized by the mayor; provided, however, that a franchisee may interrupt service to any subscriber for periods of up to seventy-two hours during a rebuild or upgrade of the cable system without the authorization of the mayor, as long as every subscriber to be affected receives five days’ prior written notice.
B. As long as it is entitled to revenues from the operation of the cable system, a franchisee shall maintain continuity of service during any temporary transition in the franchise, including but not limited to the following circumstances:
1. revocation of the franchise;
2. nonrenewal of the franchise; or
3. transfer of the cable system to the City or another entity.
[Ord. C32755; Passed: 12/4/2000]
10.27.760 Transitional Operation.
In the event a franchisee continues to operate the system in a transitional period, with City acquiescence, following the expiration, revocation or other termination of the franchise, it shall be bound by all the terms, conditions and obligations of the franchise as if it were in full force and effect. A terminating franchisee shall cooperate with the City and any subsequent franchisee in maintaining and transferring service responsibility. The City has the right to operate a system if a franchisee abandons the system or fails to use the system.
[Ord. C29734; Passed: 7/2/1990]
10.27.770 Equal Opportunity Employment.
Equal opportunity in employment shall be afforded by a franchisee to all qualified persons, and no person shall be discriminated against in employment because of race, color, religion, national origin or sex. A franchisee shall establish, maintain, and carry out a positive, continuing program of specific practices designed to assure equal opportunity in every aspect of company employment policy and practice. A franchisee shall immediately comply with all federal, state and local equal opportunity employment requirements and practices.
[Ord. C29734; Passed: 7/2/1990]
10.27.780 Additional Consumer Protection.
The City reserves the authority to take any reasonable action, including amendments to this chapter, to protect consumers of cable communications services.
[Ord. C29734; Passed: 7/2/1990]
Article IX. Interconnection and Cooperation
10.27.800 Construction Standards.
A. A franchisee’s system shall be designed and constructed, insofar as technically and economically feasible, so as to be capable of interconnection with any systems existing in areas contiguous to the City and with any such systems anticipated for future construction.
B. The council shall have the right to require a franchisee to interconnect its system with any other broadband communications facility; provided, however, that such interconnection shall not be required if, after negotiating in good faith, the franchisee is unable to reach an equitable cost-sharing agreement with the operator of such other facility. Such interconnection shall be made within a reasonable time limit established by the council. The interconnection shall be accomplished according to the method and technical standards determined by the council in a manner consistent with FCC standards.
[Ord. C29734; Passed: 7/2/1990]
10.27.810 Cooperation.
A franchisee shall cooperate with any interconnection corporation, regional interconnection authority, or county or state regulatory agency which may be hereafter established for the purpose of regulating, facilitating, financing, or otherwise providing for the interconnection of cable communications systems beyond the boundaries of individual political jurisdictions.
[Ord. C29734; Passed: 7/2/1990]
Article X. Administration
10.27.900 Cable Advisory Board.
A. The City may establish a citizens cable advisory board. The City and County additionally may approve a consolidated city-county cable advisory board. In the event of such consolidation, board representation shall include the City of Spokane and areas of Spokane County outside the City of Spokane. The cable advisory board shall consist of seven members, appointed by the mayor, subject to confirmation by a majority vote of the council, for staggered three year terms. In the event of consolidation, the Spokane County board of commissioners may appoint an additional four members, for staggered three year terms. Cable advisory board members shall serve without compensation or per diem. They shall be broadly representative of the City or County population, with diverse backgrounds and a reasonable knowledge of cable communications. The cable advisory board shall appoint from its members a chairman. No cable advisory board member shall be affiliated with the local cable franchisee in any way.
B. Reasonable expenses of the cable advisory board, including any necessary support staff, shall be provided by the City. In the event of a consolidated city-county cable advisory board, arrangements for sharing of expenses and staffing shall be through an annual budget approved by the city council and board of county commissioners. Additionally, any specific expenditure exceeding $250 shall be approved by both the mayor and the Spokane County chief administrative officer, or his/her designee.
C. The cable advisory boards powers and functions shall include such powers as the city council may establish by ordinance, including the following:
1. consider unresolved complaints and disagreements between franchisees and subscribers or users of the cable communications system and issue rulings thereon.
2. advise the council and mayor on the regulation of rates in accordance with the provisions of this chapter.
3. advise the council and mayor regarding general policy relating to the cable services provided subscribers and the operation and use of access and leased access channels (if any), with a view to maximizing the diversity and usefulness of programs and services to subscribers.
4. assist the council in its consideration of applications for new, transfer, and renewal franchises.
5. perform such other advisory duties as the council and mayor may from time to time assign to the cable advisory board.
D. In the event of a consolidated city-county cable advisory board, functions of such board shall include those specified herein above for both the City of Spokane and unincorporated areas of Spokane County, provided any additional functions to be performed at the request of the City of Spokane which concern unincorporated areas of Spokane County shall require concurrence of the County, and any additional functions to be performed at the request of the County which concern areas within the City of Spokane shall require concurrence of the City.
[Ord. C32755; Passed: 12/4/2000]
10.27.905 Regional Cable Advisory Board.
A. In lieu of a board under SMC 10.27.900, the City of Spokane, City of Spokane Valley and Spokane County may establish a regional cable advisory board, to be effective upon joint approval by ordinance or resolution by the legislative bodies of the three jurisdictions of a measure the same or equivalent to this section. The regional cable advisory board shall consist of eleven members, of whom six members may be appointed by the City of Spokane, three by the City of Spokane Valley and two by Spokane County. Members shall be appointed by the mayors of participating cities and confirmed by majority vote of their city councils, and by the Spokane County board of commissioners for County appointees. Members shall be appointed for staggered three-year terms.
B. As of the effective date of this section, there is already a current city-county cable advisory board for the City of Spokane and Spokane County of eleven members. The three positions transferred to Spokane Valley by this action shall continue for their existing terms and be those positions with the shortest remaining unexpired terms, selected in reverse order of member seniority, or as designated by the appointing authority in the event of equal status. Any members replaced by Spokane Valley appointments may also continue to serve as ex officio board members until expiration of their terms or may continue in service as a voting member if approved to do so by Spokane Valley.
C. Regional cable advisory board members shall serve without compensation or per diem. They shall be broadly representative of the appointing jurisdiction’s population, with diverse backgrounds and a reasonable knowledge of cable communications. The regional cable advisory board shall appoint from its members a chairperson and a vice chair to serve in absence of the chair. No regional cable advisory board member shall be affiliated with a local cable franchisee in any way.
D. Reasonable expenses of the regional cable advisory board, including any necessary support staff, shall be provided by the participating jurisdictions through an approved annual budget, but each participating jurisdiction retains full authority over its staff and expenditures except also as may be otherwise addressed by a separately approved interlocal agreement.
E. The regional cable advisory board has discretion to act and support the participating local governments in the following areas:
1. Consider unresolved complaints and disagreements between franchisees and subscribers or users of the cable communications system and issue rulings thereon.
2. Advise on the regulation of rates in accordance with the provisions of any other applicable ordinance requirements or laws.
3. Advise regarding general policy relating to the cable services provided subscribers and the operation and use of access and leased access channels (if any), with a view to maximizing the diversity and usefulness of programs and services to subscribers.
4. Assist in consideration of applications for new, transfer and renewal franchises.
5. Perform such other advisory functions as the executive or legislative branches of participating jurisdictions may from time to time request, but any functions requested by one jurisdiction which concern areas of another jurisdiction(s) shall require the concurrence of the other jurisdiction(s).
F. Any of the participating jurisdictions may withdraw from the regional cable advisory board by resolution of its legislative body, to take effect upon sixty days written notice. The withdrawing jurisdiction shall give notice to the nonwithdrawing jurisdictions as follows: the chair of the board of county commissioners, the city manager of the City of Spokane Valley and the mayor of the City of Spokane as the case may be. A withdrawing jurisdiction may revoke its notice of withdrawal in the same manner up to thirty days prior to the expiration of the sixty-day period. Upon the effective date of withdrawal, the terms of board members of the withdrawing jurisdiction expire and their positions no longer exist.
[Ord. C33301 § 1; Passed: 9/2/2003]
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