Title 5
BUSINESS TAXES, LICENSES AND REGULATIONS

Chapters:

5.04 Business Licenses

5.06 Security Alarm Systems

5.08 Bowling Alleys, Pool Halls, and Gaming Rooms

5.12 Dancing and Live Music

5.14 Expired

5.16 Taxicabs

5.18 Garage Sales

5.24 Gambling Activities

5.28 CATV Systems

Chapter 5.04
BUSINESS LICENSES

Sections:

5.04.010 Purpose.

5.04.020 Definitions.

5.04.030 Business license required.

5.04.040 Separate licenses required.

5.04.050 Change in nature or location of business.

5.04.060 Exemptions.

5.04.070 Issuance of license.

5.04.080 License to be posted.

5.04.090 Licenses not transferable.

5.04.100 Fraudulent use of business license.

5.04.110 Approval of business license.

5.04.120 Inspections – Right of entry.

5.04.130 Terms of license.

5.04.140 Renewal.

5.04.150 Penalty for late renewal.

5.04.160 Denial, revocation or suspension of license.

5.04.170 Appeal process – Request for hearing.

5.04.180 Appeal to the superior court.

5.04.190 License fees.

5.04.200 Violation.

5.04.210 General business license application – Public record.

5.04.010 Purpose.

The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue and to regulate and ensure the legal conduct of businesses and to assist in the effective administration of health, fire, building, zoning and other codes of the city. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.020 Definitions.

The following words, terms and phrases when used in this chapter shall have the following meanings, except where the content clearly indicates a different meaning:

A. “Business” includes all activities, occupations, trade, pursuits, or professions located and/or engaged in within the city with the object of gain, benefit or advantage to the person engaging in the same, or to any other person or class, directly or indirectly. It also includes but is not limited to general contractors, subcontractors, home occupations, multifamily dwelling units, mobile home parks and businesses temporarily conducted within the city including but not limited to traveling salespersons.

B. “Business enterprise” means each location at which a person engages in business within the city.

C. “City” means the city of Sultan, Washington.

D. “Employee” means any person employed at any business and/or business enterprise who performs any part of his/her duties within the city, except casual laborers not employed in the usual course of business. All officers, agents, dealers, franchisees, etc., of a corporation or business trust, and partners of a partnership, are “employees” within this definition.

E. “Engaging in business” means commencing, conducting or continuing in any business or carrying on of any form of activity for gain, profit or advantage, whether direct or indirect, within the city whether or not an office or physical location for the business lies with the city.

F. “Licensee” means any business granted a business license.

G. “Person” includes one or more persons of either sex; corporations, including not-for-profit corporations and municipal corporations, partnerships, including limited partnerships; associations, joint ventures or any other entity capable of having an action at law brought against such entity, but excluding employees.

H. “Premises” shall mean and include all lands, structures and places, and any personal property, which either is affixed to, or is used in connection with any such business conducted on such premises. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.030 Business license required.

It is unlawful for any person to conduct, operate, engage in or practice any business in the city without having first obtained a business license for the current calendar year or unexpired portion thereof, and paying the fees prescribed herein, unless such activity is exempt as provided in SMC 5.04.060. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.040 Separate licenses required.

A separate business license shall be obtained for each separate location within the city at which the business is conducted. A separate business license shall be obtained for each different and discrete business conducted within the city by any person, whether at the same location as another licensed business. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.050 Change in nature or location of business.

Each business license shall authorize a particular type of business at the designated location. Any change in the nature of the business shall necessitate a new application for a business license. A change of location shall be reported in writing to the city clerk within 10 days of the change and, if in compliance with zoning and business regulatory ordinances, the existing business license shall be transferred to the new location. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.060 Exemptions.

The following shall be exempt from the provisions of this chapter:

A. Minors engaged in business or operating a business concern where no other person is employed by the minor.

B. The United States or instrumentality thereof and the state of Washington or any municipal subdivision thereof, with respect to any exercise of government functions.

C. All special events sponsored by the city, but not to include participating commercial peddlers.

D. Nonprofit organizations carried on by religious, civic, charitable, benevolent, nonprofit, cultural or youth organizations.

E. Business where the sale or contract for services occurs on business premises outside of the city and the only event occurring within the city is the mere delivery of the goods and services to the customer or client.

F. Any farmer, gardener, or other person who sells, delivers or peddles any fruits, vegetables, berries or any farm produce or edibles raised, gathered, or produced by such person within the state. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.070 Issuance of license.

Applications for a business license shall be made either with the city of Sultan or with the State of Washington Department of Licensing giving such information as is deemed reasonably necessary to enable the enforcement of this chapter. Said application shall be accompanied by payment of the application fee. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.080 License to be posted.

All licenses issued pursuant to this chapter authorizing the operation or conducting of any occupation, business, trade or entertainment at a specified location shall be posted in a conspicuous place at such location. The licensee at the request of any interested person shall display such license. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.090 Licenses not transferable.

No license issued under the provisions of this chapter shall be transferable or assignable unless otherwise specifically provided for; except that a license may be transferred when a business changes its structure of ownership; provided, however, that a new business license shall be required upon a substantial change of ownership, whereby those primarily accountable for the business have changed. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.100 Fraudulent use of business license.

No person holding a city business license shall suffer or allow any other person for whom a separate license is required to operate under or display such person’s license and no person may maintain a business license obtained through false or fraudulent application or return of any false statement or representation in or in connection with any such application or return for such business license. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.110 Approval of business license.

All licenses approved for issuance by the city clerk shall be conditioned upon compliance at all times with all applicable ordinances, regulations and statutes of the city and the state of Washington. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.120 Inspections – Right of entry.

The city clerk, or designee, or authorized representative of the planning and building department are authorized to make such inspections of licensed premises and take such action as may be required to enforce the provisions of any business license or regulation ordinance. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.130 Terms of license.

All business licenses shall have a term as determined by the State of Washington Department of Licensing in cooperation with the city. The city license term or expiration date will be coordinated with the terms or expiration date of all other licenses or permits required by the state for each business. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.140 Renewal.

Renewals shall be handled by the State of Washington Department of Licensing in coordination with the city finance director. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.150 Penalty for late renewal.

If any license issued under this chapter is not obtained in a timely manner or renewed by the date of expiration of the existing license, then the new application must be accompanied by a fee of 150 percent of the regular fee payable upon application under this chapter. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.160 Denial, revocation or suspension of license.

A business license issued under this chapter may be revoked, suspended or denied for any one or more of the following reasons:

A. Failure to comply with any federal, state or local laws or regulations.

B. Failure to comply with any of the terms and conditions imposed by the city on the issuance of the business license.

C. Conduct of the business or activity in a manner which endangers the public health, welfare, or safety.

D. When the license was procured by fraud, false representation or evasions or suppression of material fact. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.170 Appeal process – Request for hearing.

Upon denial, suspension or revocation of a license, the city clerk shall, by certified mail, give written notice of such action to the applicant, which notice shall include a written report summarizing the complaints, objections and information received and considered by the city clerk and further stating the basis for such action. The applicant must appeal the decision for denial, suspension or revocation within 10 calendar days of receipt of the notice by filing a written notice of appeal and request for hearing with the city clerk. Upon receipt by the city clerk of the appeal notice, a hearing shall be set before the city council. Notice of the hearing shall be given to the appellant at least 10 days prior to the hearing. At such hearing, the appellant shall be entitled to be heard and introduce evidence on his behalf. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.180 Appeal to the superior court.

The decision of the city council is final unless an appeal of the decision is filed with the Snohomish County superior court within 30 calendar days from the date the city council decision was served upon or was mailed to the appellant. The decision for suspension or revocation of a license under this chapter shall be stayed during administrative and judicial review, but refusal to issue an initial license shall be not be stayed. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.190 License fees.

The fee for the business license required by this chapter shall be as established by resolution of the city council. The fee may be prorated as necessary to conform to SMC 5.04.130. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.200 Violation.

A. Any violation of this chapter shall be deemed a misdemeanor and shall be punished by a fine not to exceed $500.00 and any person who engages in or carries on any business subject to the provisions of this chapter without obtaining a business license, or who carries on such activities in violation of this chapter shall be guilty of a separate violation of this chapter for each day during which the business is so engaged in or carried on, and any owner who fails or refuses to pay the business license fee or any part thereof on or before the due date shall be deemed to be operating a business without having a proper license to do so.

B. Collection. Any license fee or tax due and unpaid and delinquent under this chapter, and all penalties thereon may be collected by civil action, which remedy shall be in addition to any and all other existing remedies and penalties. (Ord. 916-06 § 1; Ord. 843-04 § 1)

5.04.210 General business license application – Public record.

General business license applications made to the city clerk pursuant to this chapter shall be public information subject to inspection by all persons except to the extent those records may be deemed to be private or would result in unfair competitive disadvantage to such business enterprise if disclosed, all as more particularly described in Chapter 42.17 RCW. (Ord. 916-06 § 1; Ord. 843-04 § 1)

Chapter 5.06
SECURITY ALARM SYSTEMS

Sections:

5.06.010 Definitions.

5.06.020 Alarm user registration fee – Applications.

5.06.030 Issuance of registration.

5.06.040 Term of registration.

5.06.050 Failure to register alarm system.

5.06.060 Fire alarm system – Maintenance and testing requirements.

5.06.070 Alarm system deactivation requirements.

5.06.080 Automatic telephone alarm requirements.

5.06.090 Digital alarm communicator system.

5.06.100 Alarm system tests.

5.06.110 False alarms – Additional charges – Registration and alarm permit revocations.

5.06.010 Definitions.

For the purpose of this chapter, the terms set out in this section shall have the following meanings:

A. “Alarm coordinator” means the police support officer (or designee of the chief of police for security alarm control).

B. “Alarm system” means any assembly of equipment, mechanical or electrical, arranged to signal the occurrence of any illegal entry or other activity requiring urgent attention and to which police, fire or EMS personnel are expected to respond. Electric, wired or battery operated single station smoke detectors which emit audible or visual signals and which are primarily designed to alert occupants of a premises of an impending fire or medical emergency shall not be considered as an alarm system and subject to the restriction set forth herein.

C. “Alarm user” means the person, firm, partnership, association, corporation, company or organization of any kind in control of the premises or property where an alarm system is maintained.

D. “Automatic telephone alarm” means a telephone device or telephone attachment which automatically relays a prerecorded message to report a robbery, burglary, fire or other emergency by means of a telephone line which terminates at any office or telephone registered to the city.

E. “Digital alarm communicator system” means a system in which signals are transmitted from a digital alarm communicator transmitter located at a protected premises through the public switched telephone network to a digital alarm communicator receiver located at the central station.

F. “False alarm” means transmission of any alarm signal caused by human error or mechanical malfunction, whether or not the exact cause of the error or malfunction is identified, or any other activation of the signal where no actual emergency, unlawful act, fire or medical problem exists. Severe weather, electrical outages, transmission line malfunctions, acts of God, malicious acts of persons not under the control of the alarm user or any other cause clearly beyond the control of the alarm user may be considered in determining if an alarm was false and whether or not any fee, fine, warning or punitive action should be directed to the alarm user as provided for by this chapter.

G. “Private alarm monitor agency,” hereafter referred to as “agency,” means any person, firm, partnership, association, corporation or organization which contracts with an alarm user to receive and initiate action on alarm system signals. (Ord. 760-01)

5.06.020 Alarm user registration fee – Applications.

A. Registration Required. It shall be unlawful for any alarm user to lease, or own an alarm system, or be in control of any premises wherein an alarm system is operated or maintained, without first having obtained an alarm user registration from the city of Sultan, except no registration shall be required for alarm systems contained in or on vehicles or for alarm users registered under an agency as provided herein. No registration of electric, wired or battery operated, single station smoke detectors shall be required.

B. The fee for an alarm user registration shall be $25.00 per year for nonresidential alarm users and $10.00 per year for a single-family residence and for each and every multifamily residence building. Alarm systems owned or operated by governmental units or their subdivisions shall not be subject to a registration fee. The fee shall be payable effective January 1, 2002.

C. Premises which utilize alarm systems with multiple devices may be issued more than one alarm user registration under the following circumstances. Where intrusion-alerting devices are located in adjacent businesses or housing units which transmit signals into a shared control panel located on the combined premises, a single registration may be issued to the property owner or his agent or to a property owner association as long as such person or organization has legal control and accountability for the entire alarm system and information required under the application for registration is completed for each occupancy in which a part of the alarm system is contained.

D. Application for Registration. An application for an alarm user registration shall be filed with the alarm coordinator and shall contain the following information:

1. Name and address of the applicant.

2. Name and address of the premises where the alarm system is located.

3. General description of the alarm system which classifies it as burglary, safe, hold-up, fire, medical or other and the presence of silent alarms and any audible or visual alerting signals on the premises. Any alarm system classified as “other” shall include a brief description as to category type.

4. Any alarm system designed to transmit a signal to a monitoring service or central answering station shall include the name and telephone number of said service.

5. A statement listing the names, addresses and telephone numbers of at least three persons responsible for the premises where the alarm system is located and who should be contacted in the event of an alarm system activation and respond to the premises within 15 minutes, if requested.

6. The name, address and telephone number of the person, firm or corporation that installed the alarm system and of the person, firm or corporation responsible for any maintenance or repair of the alarm system.

7. The appropriate alarm system inspection report as detailed in SMC 5.06.030 must be submitted with the application for registration. (Ord. 760-01)

5.06.030 Issuance of registration.

The city shall issue an alarm user registration within 30 days after a completed application or application renewal is filed and after each application has been approved by the alarm coordinator. Following receipt and acceptance of an application, the city shall issue the applicant a registration number. Prior to the issuance of an alarm user registration, the alarm coordinator may cause an inspection of the alarm system(s) if deemed necessary. (Ord. 760-01)

5.06.040 Term of registration.

All registrations shall expire annually at the end of each calendar year. (Ord. 760-01)

5.06.050 Failure to register alarm system.

It shall be unlawful for any alarm user required to register an alarm system (or renew their alarm registration) to fail to register an alarm system or fail or refuse to amend a registration application within 10 days after any of the information required becomes outdated or inaccurate. Failure to comply with this provision of this chapter shall be a civil infraction and subject the alarm user to a $150.00 fine (if no emergency response to that location has occurred). If an emergency response occurs and it is determined a location has an unregistered alarm, the fine shall be $300.00. (Ord. 760-01)

5.06.060 Fire alarm system – Maintenance and testing requirements.

Fire alarms shall be the responsibility of the fire department and not subject to this chapter. (Ord. 760-01)

5.06.070 Alarm system deactivation requirements.

It shall be unlawful for any alarm user to cause or permit an alarm system to sound in excess of 15 minutes without shutting off except for fire or medical alert alarm systems. It shall be unlawful for the registered owner of any vehicle upon or within which an alarm system is located to permit, allow or cause said alarm system to sound in excess of 10 minutes without shutting off. Failure to comply with this provision of this chapter shall subject the alarm user to a $150.00 fine. (Ord. 760-01)

5.06.080 Automatic telephone alarm requirements.

No alarm user shall install or cause to be installed or maintained any automatic telephone alarm connected to the city phone system unless having first obtained permission from the alarm coordinator. Such permission shall include instructions as to what city telephones have been designated and will accept automatic telephone alarms. Any automatic telephone alarm, except those authorized by the alarm coordinator, shall be removed by the owner thereof within 90 days following the effective date of this chapter. Automatic telephone alarms not so removed shall constitute a misdemeanor offense under city ordinance and be subject to fine of up to $1,000 and up to 90 days in jail. (Ord. 760-01)

5.06.090 Digital alarm communicator system.

Any person who causes to be installed a digital alarm communicator system for the purpose of transmission of alarm signals to a private alarm monitoring agency shall be responsible for ensuring the registration has been made and all fees paid prior to the system being utilized. (Ord. 760-01)

5.06.100 Alarm system tests.

Tests of alarm systems may be made at reasonable times and for a reasonable duration, but only after notifying the Sultan police department. Any other tests may be deemed a false alarm. (Ord. 760-01)

5.06.110 False alarms – Additional charges – Registration and alarm permit revocations.

A. Commencing 30 days from the date the security alarm system is installed and placed in service at the premises, if the Sultan police department responds to more than three false alarms in a calendar year, the alarm user shall pay the city $50.00 for the fourth to the tenth false alarm and $100.00 for each alarm thereafter.

B. The alarm coordinator shall notify the alarm user of each instance wherein a false alarm was recorded, and in the case of the third recorded false alarm in any one calendar year, shall further notify the registrant that additional false alarms will result in the imposition of charges as set forth herein. False alarm notification beyond the initial three shall be by notice of infraction (NOI) issued by the officer responding to a responsible person at the alarm location or the person who resides/does business at the location where the alarm occurred.

C. Failure to pay any fine or registration fee within 15 days of the date due shall constitute grounds for immediate revocation of the alarm permit and further responses will be deemed a violation under this section. (Ord. 760-01)

Chapter 5.08
BOWLING ALLEYS, POOL HALLS, AND GAMING ROOMS

Sections:

5.08.010 Unlawful acts.

5.08.020 Violation – Penalty.

5.08.010 Unlawful acts.

It is unlawful for any person, firm, or corporation conducting, operating, owning, maintaining, or in charge of, any billiard hall, bowling alley, pool hall, cardroom, gaming table or device, or similar room or place, within the city of Sultan, Washington, or any agent, servant or employee of any such person, firm, or corporation, to keep any billiard hall, bowling alley, pool hall, cardroom, or any similar place or room open for business, or to permit any person other than an owner, agent or employee to remain therein or be therein, at an earlier hour than 5:00 a.m. of any weekday, or between the hours of 1:00 a.m. and 5:00 a.m. of any Sunday. (Ord. 96 § 1, 1917)

5.08.020 Violation – Penalty.

Any person violating any provision of this chapter shall be fined in any sum not exceeding $100.00. (Ord. 96 § 2, 1917)

Chapter 5.12
DANCING AND LIVE MUSIC

Sections:

5.12.010 Purpose.

5.12.020 License or permit – Required.

5.12.030 License or permit – Exemptions.

5.12.040 License or permit – Application – Contents.

5.12.050 License or permit – Application – Investigation.

5.12.060 License or permit – Terms and fees.

5.12.070 License or permit – Suspension or revocation.

5.12.080 Violation – Penalty.

5.12.010 Purpose.

The purpose of this chapter is to provide better control and policing of places where dancing and live music are conducted. (Ord. 349 § 1, 1976)

5.12.020 License or permit – Required.

It is unlawful for any establishment, business, organization or group of persons to have dancing or live music at any place in the city of Sultan without having first obtained a license or permit therefor as required in this chapter. (Ord. 349 § 2, 1976)

5.12.030 License or permit – Exemptions.

A. All schools and churches are specifically exempt from this chapter and need not obtain a license for dancing or to have live music.

B. Any establishment, business, organization or group of persons may request of the Sultan city council an exemption from this chapter.

C. The Sultan city council need not grant any exemption not specifically provided for in this chapter, but may at its complete discretion grant any establishment, business, organization or group of persons an exemption from this chapter. (Ord. 349 § 3, 1976)

5.12.040 License or permit – Application – Contents.

Applications for such license or permit shall be made on forms provided by the city clerk/treasurer providing for the name and address of the establishment, business, organization or group of persons, name of owner, name of manager, phone number of each, dates and times when dancing or live music will be anticipated and such other information as the clerk/treasurer, city marshal or fire chief recommends and incorporates into said application. (Ord. 349 § 4, 1976)

5.12.050 License or permit – Application – Investigation.

It shall be the duty of the city marshal to make or cause to be made an investigation into the character of each applicant, or the manager or owner thereof, and report the results of such investigation to the Sultan city council. (Ord. 349 § 5, 1976)

5.12.060 License or permit – Terms and fees.

A. For single occurrence events where dancing or live music is anticipated, a permit shall be obtained from the city clerk/treasurer after the completion of the application mentioned in SMC 5.12.040, approval by the Sultan city council and the payment of $25.00.

B. The permit shall be good for 24 hours from the time the dancing or live music is anticipated to begin.

C. For all other than single occurrence events, a license shall be obtained from the city clerk/treasurer after the completion of the application mentioned in SMC 5.12.040, approval of the Sultan city council and the payment of $100.00.

D. A license shall be good for one year from the date of issuance.

E. Licenses shall not be prorated. (Ord. 349 § 6, 1976)

5.12.070 License or permit – Suspension or revocation.

A. At any time that any establishment, business, organization or group of persons having been licensed, shall operate in a manner which in the judgment of the city council is inconsistent with the best interests and welfare of the community, or upon the recommendation of the city marshal, for good cause shown, the council shall revoke or suspend such license or permit without notice for such period of time as they may deem appropriate.

B. In the event of a suspension or revocation of any license or permit, no part of the fee shall be refunded. (Ord. 349 § 7, 1976)

5.12.080 Violation – Penalty.

A violation of this chapter shall be a misdemeanor and punished accordingly. (Ord. 349 § 8, 1976)

Chapter 5.14
SIDEWALK VENDING*

(Expired)

*Code reviser’s note: Ord. 824-03 added Chapter 5.14 SMC and expired on October 15, 2004.

Chapter 5.16
TAXICABS

Sections:

Article I. Drivers’ Licenses

5.16.010 Required.

5.16.020 Applicant requirements.

5.16.030 Application requirements.

5.16.040 City council action on applications.

5.16.050 Term – Fee.

5.16.060 Suspension or revocation – Hearing.

Article II. Vehicle License

5.16.070 Required.

5.16.080 Insurance required for issuance.

5.16.090 Application requirements – Limiting number of vehicles.

5.16.100 Fee.

5.16.110 Condition of vehicles – Inspection requirements.

5.16.120 Violation – Penalty.

Article I. Drivers’ Licenses

5.16.010 Required.

It is declared to be essential to the public interests that no person shall be authorized or permitted to operate a taxicab within the corporate limits of the city of Sultan, unless such person is the holder of a valid taxicab license issued by the city of Sultan. (Ord. 298 § 1(a), 1968)

5.16.020 Applicant requirements.

Such a license shall be issued only to persons of the age of at least 25 years, who are experienced, able and careful motor vehicle drivers, and are of good moral character and reputation. (Ord. 298 § 1(b), 1968)

5.16.030 Application requirements.

A. Applicants for such a license shall sign an application therefor in the office of the city clerk/treasurer, and shall deposit therewith the sum of $15.00, to be applied on the license fee, if issued.

B. All such applications shall be referred, first, to the city marshal, who shall require the photograph and fingerprints of such applicant to be taken, and shall make an investigation to determine the qualifications of the applicant for such a license. (Ord. 298 § 1(c), 1968)

5.16.040 City council action on applications.

A. The city marshal shall, within a reasonable time after receiving such application, return the same to the city council with his written recommendations, either approving or rejecting the same.

B. If the application is not approved, the reason, or reasons for such disapproval shall be set forth in writing and delivered to the city council for its consideration at its next regular meeting. (Ord. 298 § 1(d), 1968)

5.16.050 Term – Fee.

A. All licenses so issued shall expire on the thirty-first day of December in the year in which the license is issued.

B. The annual license fee shall be the sum of $15.00, payable in advance, and in the event such application is rejected, the deposit made at the time of filing the application shall be retained by the city of Sultan to cover the expenses of investigation. (Ord. 298 § 1(e), 1968)

5.16.060 Suspension or revocation – Hearing.

A. If at any time the city marshal finds that any person holding such a license has been convicted of a violation of any federal or state criminal law, or any ordinance of the city of Sultan indicating that such licensee is no longer of good moral character and reputation, or a careful and experienced driver, the city marshal shall forthwith make a written report of his findings to the city council, and shall make recommendations as to the suspension or revocation of such license.

B. The city council shall, before acting thereon, set a date for hearing upon the matter, and notify the licensee, in writing, of such date of hearing, and of the contents of such report, at least 10 days in advance thereof.

C. Such license may be suspended or revoked for such time and on such terms as shall be imposed by majority vote of the members of the council present at such hearing. (Ord. 298 § 1(f), 1968)

Article II. Vehicle License

5.16.070 Required.

No taxicab shall be operated for calls originating within the corporate limits of the city of Sultan unless the owner thereof has first secured a taxicab license from the city and filed with the city clerk/treasurer his proposed rates and charges, and posted a copy thereof in a conspicuous place within said taxicab, the same to have been first approved by the city council. (Ord. 298 § 2(a), 1968)

5.16.080 Insurance required for issuance.

No such license shall be issued for any taxicab until proof has been filed with the city clerk/treasurer that the owner thereof carried public liability and property damage insurance thereon in amounts of $60,000 and $5,000, respectively. (Ord. 298 § 2(b), 1968)

5.16.090 Application requirements – Limiting number of vehicles.

A. Application shall be made in writing for such a license to the city clerk/treasurer, giving the full name and address of the owner thereof; the passenger-carrying capacity and type of such vehicle.

B. The city council reserves the right to limit the number of taxicab vehicles to be operated within the city of Sultan to such number as it may find appropriate to serve the needs of its residents. (Ord. 298 § 2(c), 1968)

5.16.100 Fee.

The annual license fee for each taxicab vehicle shall be prorated when purchased after March 1st of any year. (Ord. 298 § 2(d), 1968)

5.16.110 Condition of vehicles – Inspection requirements.

A. All taxicabs so licensed shall be kept in good mechanical and sanitary condition, and shall be subject to inspection at all times under the direction of the city marshal of the city of Sultan.

B. Failure to comply with any of his orders in connection with such inspection shall constitute cause for suspension or revocation of the license of such vehicle. (Ord. 298 § 2(e), 1968)

5.16.120 Violation – Penalty.

Any person convicted of a violation of any section or subsection of this chapter shall be guilty of a misdemeanor and punished by a fine not to exceed $100.00 or imprisonment in the city jail for a period not to exceed 30 days, or by both such fine and imprisonment, in addition to the provisions contained in this chapter for suspension or revocation of licenses issued under the provisions of this chapter. (Ord. 298 § 3, 1968)

Chapter 5.18
GARAGE SALES

Sections:

5.18.010 Definitions.

5.18.020 Conditions.

5.18.030 Compliance.

5.18.010 Definitions.

For the purposes 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 the plural number. The word “shall” is always mandatory and not merely directory.

A. “Garage sale” means and includes all general sales, open to the public, conducted from or on a residential premises in any residential zone, as defined by the comprehensive plan, for the purpose of disposing of personal property including, but not limited to, all sales entitled “garage,” “lawn,” “yard,” “attic,” “porch,” “room,” “backyard,” “patio,” “flea market” or “rummage” sale. This definition shall not include a situation where no more than five specific items are held out for sale and all advertisement of such sale specifically names those items to be sold.

B. “Personal property” means property which is owned, utilized and maintained by an individual or members of his or her residence and acquired in the normal course of living in or maintaining a residence. It does not include merchandise which was purchased for resale or obtained on consignment. (Ord. 479, 1986)

5.18.020 Conditions.

A. No residential premises shall have more than two such sales per year, and no such sale shall continue for more than six days within a 15-day period.

B. Signs advertising such sales shall not be attached to any public structures, signs or traffic control devices, nor to any utility poles. All such signs shall be removed 24 hours after the sale is completed. (Ord. 479, 1986)

5.18.030 Compliance.

A garage sale complying with the conditions set forth in this chapter shall be considered as being an allowable accessory use to all residential land uses. A garage sale violating one or more of the above conditions shall be considered as being a commercial use, and will be disallowed unless it complies with all requirements affecting commercial uses. (Ord. 479, 1986)

Chapter 5.24
GAMBLING ACTIVITIES

Sections:

5.24.010 Definitions.

5.24.020 Levied – Rate.

5.24.030 Remittance schedule.

5.24.040 Administration and collection.

5.24.050 Form of payment.

5.24.060 Delinquency.

5.24.070 Registration.

5.24.080 Registration after interruption.

5.24.090 Records – Inspection.

5.24.100 Refund or audit.

5.24.110 Failure to file return.

5.24.120 Other taxes unimpaired.

5.24.130 Debt status of tax.

5.24.140 Expiration of right of recovery.

5.24.150 Enforcement.

5.24.160 Violation – Penalty.

5.24.010 Definitions.

For the purpose of this chapter, the words and terms shall have the same meaning each has under Chapter 218, Laws of 1973, 1st Ex. Sess. and Chapter 9.46 RCW, each as amended, and under the rules of the Washington State Gambling Commission, Chapter 230 WAC, unless otherwise specifically provided or as the context in which they are used clearly indicates that they be given some other meaning. (Ord. 531, 1991)

5.24.020 Levied – Rate.

There is levied upon all persons, associations and organizations conducting or operating within the city any of the activities listed below a tax on the following amounts to be paid to the city:

A.  1. Any punchboards or pull tabs, in the amount of three percent of the net gambling receipts (as defined in WAC 230-02-120) directly from the operation of the punchboards or pull tabs themselves; said rate to be in effect from April 1, 1991 to March 31, 1992.

2. Effective April 1, 1992, the tax levied will increase to four percent of the net gambling receipts (as defined in WAC 230-02-120); said rate to be in effect from April 1, 1992 to March 31, 1993.

3. Effective April 1, 1993, the tax levied will increase to five percent of the net gambling receipts (as defined in WAC 230-02-120); said rate to remain in effect until changed by ordinance.

B.  1. Social card games and/or any other gambling activity: these activities shall be taxed at the rate of one percent on the net gambling receipts therefrom; provided, further, that the tax shall apply solely to those social card games and/or other gambling activity, including fundraising events conducted, held or operated as a “commercial stimulant” as defined in this chapter. Specifically, such tax shall apply only to such activities conducted in a “public cardroom” as defined in WAC 230-02-410. Said rate to be in effect from April 1, 1991 to March 31, 1992.

2. Effective April 1, 1992, the tax levied will increase to three percent of the net gambling receipts (as defined in WAC 230-02-120); said rate to remain in effect from April 1, 1992 to March 31, 1993.

3. Effective April 1, 1993, the tax levied will increase to five percent of the net gambling receipts (as defined in WAC 230-02-120); said rate to remain in effect until changed by ordinance.

C. The taxes described in this chapter shall not apply to bona fide charitable organizations as defined in RCW 19.09.020, and/or Section 501(c)(3) of the Internal Revenue Code. (Ord. 531, 1991)

5.24.030 Remittance schedule.

The taxes imposed under this chapter shall be due and payable in quarterly installments, and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the end of the monthly period in which the tax accrued. The taxpayer shall on or before the fifteenth day of the month make out a return on such forms and setting forth such information as the clerk/treasurer may require showing the amount of the tax for which he is liable for the preceding monthly period, sign and transmit the same to the clerk/treasurer together with a remittance for such amount, provided:

A. Whenever any person, association or organization taxable under this chapter conducting or operating a taxable activity on a regular basis terminates the business, sells out or otherwise disposes of its business, any tax due under this chapter shall become due and payable and such taxpayer shall within 10 days thereafter make a return and pay the tax due;

B. Whenever it appears to the clerk/treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the clerk/treasurer, after not less than 10 days’ notice to the taxpayer, is authorized to require that the taxpayer remit taxes and returns at such shorter intervals than monthly, as the clerk/treasurer deems appropriate under the circumstances. (Ord. 531, 1991)

5.24.040 Administration and collection.

Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the clerk/treasurer. The taxpayer shall be required to swear and affirm by signature that the information given in the return is true, accurate and complete under penalty of perjury. The clerk/treasurer is authorized but not required to mail to the taxpayer forms for returns. Failure of the taxpayer to receive such a form shall not excuse the taxpayer from making the return and timely paying all taxes due. The clerk/treasurer shall make forms available to the public in reasonable numbers in the clerk/treasurer’s office during regular business hours. Along with the tax remittance and return form for each month ending a calendar quarter year, each taxpayer shall submit to the clerk/treasurer a copy of his quarterly report to the Washington State Gambling Commission required by Chapter 230-08 WAC as amended as of or after the effective date of the ordinance codified in this chapter. (Ord. 531, 1991)

5.24.050 Form of payment.

Taxes payable under this chapter shall be remitted to the clerk/treasurer, on or before the time required, by bank draft, certified check, cashier’s check, personal check, money order or in cash. If payment is made by a draft or check, the tax shall not be deemed paid until the draft or check is accepted in the usual course of business, nor shall the acceptance of any sum by the clerk/treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return and copy of the quarterly report to the Washington State Gambling Commission shall be filed in the office of the clerk/treasurer after notation of that office upon the return of the amount actually received. (Ord. 531, 1991)

5.24.060 Delinquency.

A. If full payment of any tax or fee due under this chapter is not received by the clerk/treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows:

1. One through 10 days late, five percent of tax due;

2. Eleven through 20 days late, 10 percent of tax due;

3. Twenty-one through 30 days late, 15 percent of tax due;

4. Thirty-one through 60 days late, 20 percent of tax due.

B. In no event shall the penalty amount be less than $25.00. In addition to this penalty, the clerk/treasurer shall charge the taxpayer interest of one and one-half percent of all taxes and fees due for each 30-day period or portion thereof that the amounts are past due. Failure to make payment in full of all tax amounts and penalties within 60 days following the day the tax amount initially became due is both a civil and a criminal violation of this section. (Ord. 531, 1991)

5.24.070 Registration.

In order that the city may identify those persons that are subject to taxation under this chapter, each person, association or organization shall file with the clerk/treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the clerk/treasurer together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than 15 days prior to conducting or operating the taxable activity. No fee shall be charged for such filing which is not for the purpose of regulation of this activity but for the purpose of administration of this taxing chapter only. Failure to timely file shall not excuse any person, association, or organization from tax liability. (Ord. 531, 1991)

5.24.080 Registration after interruption.

A new declaration of intent to conduct or operate any of the activities taxable under this chapter shall be required prior to the recommencement of the activity following the expiration, suspension or revocation of any license previously issued by the Washington State Gambling Commission in the same manner as prescribed in SMC 5.24.070. (Ord. 531, 1991)

5.24.090 Records – Inspection.

Each person, association or organization engaging in an activity taxable under this chapter shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary to determine the taxpayer’s tax liability under this chapter during each base tax period. Such records shall be kept and maintained for a period of not less than three years. In addition, all information and items required by the Washington State Gambling Commission under Chapter 230-08 WAC and the United States Internal Revenue Service respecting taxation shall be kept and maintained for the period required by those agencies. All books, records and other items required to be kept and maintained under this section shall be subject to and immediately made available for inspection and audit during normal business hours, without notice, at the place where such records are kept, on demand by the city council, the city attorney, or the clerk/treasurer, or their designees for the purpose of enforcing the provisions of this taxing chapter. Failure of a taxpayer to keep books and records as required by this section shall be a bar to contesting the assessment of taxes as estimated by the clerk/treasurer. Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section in this jurisdiction so that the above-stated officials or their designees may examine them conveniently, the taxpayer shall either:

A. Produce all of the required books, records or items within the jurisdiction for such inspection for five days following a request of the above officials that he do so; or

B. Bear the actual cost of inspection by the above officials or their designees at the location where such books, records or items are located; provided that a taxpayer choosing to bear these costs shall pay in advance to the above-stated officials or their designees the estimated costs thereof, including but not limited to, round-trip fare by the most rapid means, lodging, meals and incidental expenses. The actual amount due or to be refunded for expenses shall be determined following the examination of the records. (Ord. 531, 1991)

5.24.100 Refund or audit.

If, upon application by a taxpayer for a refund or for an audit of his records or upon any examination of the returns or records of any taxpayer, it is determined by the clerk/treasurer that within three years immediately preceding receipt by the clerk/treasurer of the application by the taxpayer for a refund or an audit, in the absence of such an application within the three years immediately preceding the commencement by the clerk/treasurer of such examination:

A. A tax or other fee has been paid in excess of that properly due, the total excess paid over all amounts due to the city within such period of three years shall be credited to the taxpayer’s account or shall be refunded to the taxpayer at the taxpayer’s option. No refund or credit shall be allowed with respect to the clerk/treasurer for more than three years before the date of such application for examination.

B. A tax or other fee has been paid which is less than that properly due or no tax or other fee has been paid, the clerk/treasurer shall mail a statement by certified mail to the taxpayer showing the balance due including the tax amount or the penalty, assessments and fees, and it shall be a separate additional violation of this chapter if a taxpayer fails to make payment in full within 10 calendar days of such mailing. (Ord. 531, 1991)

5.24.110 Failure to file return.

If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the clerk/treasurer is authorized to determine the amount of tax payable together with any penalty and/or interest assessed under the provisions of this chapter and by certified mail to notify such taxpayer of the tax penalty and/or interest and shall become immediately due and payable. (Ord. 531, 1991)

5.24.120 Other taxes unimpaired.

The tax levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the city except as otherwise expressly provided in this chapter. (Ord. 531, 1991)

5.24.130 Debt status of tax.

Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city, a legal subdivision of the state of Washington, and may be collected by court proceedings the same as any other debt in like amount, which shall be in addition to all other existing remedies. (Ord. 531, 1991)

5.24.140 Expiration of right of recovery.

The right of recovery by the city from the taxpayer for any tax provided under this chapter shall be outlawed after the expiration of three calendar years from the date the tax became due. The right of recovery against the city because of overpayment of tax by any taxpayer shall be outlawed after the expiration of three calendar years from the date such payment was made. (Ord. 531, 1991)

5.24.150 Enforcement.

The city council shall have the power and it shall be their duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with superior law for the purposes of carrying out the provisions of this chapter, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 531, 1991)

5.24.160 Violation – Penalty.

Any person violating or failing to comply with any of the provisions of this chapter or any unlawful rule or regulation adopted by the clerk/treasurer pursuant thereto, and upon conviction thereof, shall be punished by a fine in any sum not to exceed $500.00 or by imprisonment for a term not exceeding 90 days, or by both such fine and imprisonment. Any taxpayer who engages in or carries on any gambling activities subject to a tax under this chapter without having complied with the provisions of this chapter is guilty of a violation of this chapter for each day in which the gambling activity is carried on. (Ord. 531, 1991)

Chapter 5.28
CATV SYSTEMS

Sections:

5.28.010 Definitions.

5.28.020 Terms of franchise.

5.28.030 Hearing.

5.28.040 Acceptance.

5.28.050 Police powers.

5.28.060 Rules and regulations by the city.

5.28.070 Technical standards.

5.28.080 Coverage.

5.28.090 Public buildings.

5.28.100 Parental control devices.

5.28.110 Other interactive services.

5.28.120 Emergency power.

5.28.130 Emergency override.

5.28.135 PEG equipment and support.

5.28.140 Construction standards.

5.28.150 Construction notification.

5.28.160 Undergrounding.

5.28.170 Safety requirements.

5.28.180 New developments.

5.28.190 Line extension.

5.28.200 Building moving.

5.28.210 Tree trimming.

5.28.220 Rates.

5.28.230 Discounts.

5.28.240 Franchise fee.

5.28.250 Record inspection.

5.28.260 Reports.

5.28.270 Periodic meetings.

5.28.280 Performance tests.

5.28.290 Customer service.

5.28.300 Subscribers’ right of privacy.

5.28.310 Programming.

5.28.320 Modification.

5.28.330 Nondiscrimination.

5.28.340 Equal employment opportunity.

5.28.350 Continuity of service.

5.28.360 Franchise renewal.

5.28.370 Transfer of ownership.

5.28.380 Right of city to purchase.

5.28.390 Removal and abandonment of property of franchisee.

5.28.400 Revocation for cause.

5.28.410 Effect of termination for noncompliance.

5.28.420 Indemnify and hold harmless.

5.28.430 Insurance.

5.28.440 Inconsistency.

5.28.450 Force majeure.

5.28.010 Definitions.

For the purposes of this chapter, the following words and phrases shall have the meanings set out in this section.

A. “Act” means the Cable Communications Policy Act of 1984 and any subsequent amendments.

B. “Addressability” means the ability of a system allowing the franchisee to authorize by remote control customer terminals to receive, change or to cancel any or all specified programming.

C. “Affiliate” means an entity which owns or controls, is owned or controlled by, or is under common ownership with franchisee.

D. “Applicant” means any person or entity that applies for a franchise.

E. “Basic services” means those broadcast and nonbroadcast services provided by the cable franchisee at the lowest monthly charge as defined by the Act or rules now or subsequently adopted by the FCC.

F. “Cable services” means (1) the one-way transmission to subscriber of video programming or other programming service, and (2) subscriber interaction, if any, which is required for the selection by the subscriber of such video programming or other programming service.

G. “CATV” means a community antenna television system as hereinafter defined.

H. “Channel” means a single path or section of the spectrum which carries a television signal.

I. “Combined disposable income” means the disposable income of the person claiming a rate discount, plus the disposable income of his or her spouse, and the disposable income of each co-tenant occupying the residence during the preceding calendar year, less amounts paid by the person claiming the rate discount of his or her spouse during the previous year for the treatment or care of either person in a nursing home.

J. “Community antenna television system,” “cable television system” or “system” means a system of antennas, cables, wires, lines, towers, transmission lines, equipment or facilities, designed and constructed for the purpose of producing, receiving, transmitting, amplifying, scrambling and distributing audio, video and other forms of electronic or electrical signals, located in whole or in part in the city.

K. “Converter” means an electronic device which converts signals to a frequency not susceptible to interference within the television receiver of a subscriber, and with an appropriate channel selector which also permits a subscriber to view all signals delivered at designated converter dial locations.

L. “Council” means the present governing body of the city or any future board constituting the legislative body of the city.

M. “FCC” means the Federal Communications Commission, a regulatory agency of the United States government.

N. “Franchise” means the nonexclusive right or authority to construct, operate and maintain a cable television system by use of city-owned rights-of-way, easements or other publicly owned properties.

O. “Franchisee” means the person, firm or corporation to whom or which a franchise, as hereinabove defined, is granted by the council under this chapter and the lawful successor, transferee or assignee of said person, firm or corporation subject to such conditions as may be defined in city ordinance.

P. “Gross subscriber revenues” means income collected by franchisee for the provision of cable communications service; including basic service, premium services, tiered services, advertising, leased access channels, and all other sources derived from the operation of a cable communications system utilizing the public rights-of-way. Gross subscriber revenues shall not include uncollectable subscriber revenues, nor receipts attributed to taxes on the services furnished by the franchisee and imposed directly on any subscriber in any county, state or other governmental unit and collected by the franchisee for such governmental unit.

Q. “Headend” means the electronic equipment located at the start of a cable system, usually including antennas, preamplifiers, frequency converters, demodulators and related equipment.

R. “Interactive services” means services provided to subscribers where the subscriber either (1) both receives information consisting of either television or other signals and transmits signals generated by the subscriber or equipment under his/her control for the purpose of selecting what information shall be transmitted to the subscriber or for any other purpose; or (2) transmits signals to any other location for any purpose.

S. “Office” means the person or entity designated by the city as being responsible for the administration of the franchise for the city.

T. “Operator” means the person, firm or corporation to whom a franchise is granted pursuant to the provisions of this chapter.

U. “Property of franchisee” means all property owned, installed or used by a franchisee in the conduct of a CATV business in the city under the authority of a franchise granted pursuant to this chapter.

V. “Public way” means the surface of, and the space above and below, any public street, highway, freeway, bridge, land path, alley, court, boulevard, sidewalk, parkway, way, lane, public way, drive, circle or other public right-of-way, including, but not limited to, public utility easements, dedicated utility strips or rights-of-way dedicated for compatible uses and any temporary or permanent fixtures or improvements located thereon now or hereafter held by the city in the service area which shall entitle the city and the franchisee to the use thereof for the purpose of installing, operating, repairing and maintaining the cable system. Public way shall also mean any easement now or hereafter held by the city within the service area for the purpose of public travel, or for utility or public service use dedicated for compatible uses, and shall include other easements or rights-of-way as shall within their proper use and meaning entitle the city and the franchisee to the use thereof for the purpose of installing or transmitting franchisee’s cable service or other service over poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, compliances, attachments and other property as may be ordinarily necessary and pertinent to the cable system.

W. “Subscriber” means a person or entity or user of the cable system who lawfully receives cable services or other service therefrom with franchisee’s express permission.

X. “City” means the city of Sultan, a municipal corporation of the state of Washington. (Ord. 502 § 1, 1988)

5.28.020 Terms of franchise.

A. Authority to Grant Franchises or Licenses for Cable Television. It shall be unlawful to engage in or commence construction, operation or maintenance of a cable communications system without a franchise issued under this chapter. The council may, by ordinance, award a nonexclusive franchise to construct, operate and maintain a cable communications system which complies with the terms and conditions of this chapter. Any franchise granted pursuant to this chapter shall be nonexclusive and shall not preclude the city from granting other or further franchises or permits or preclude the city from using any roads, rights-of-way, streets or other public properties or affect its jurisdiction over them or any part of them, or limit the full power of the city to make all necessary changes, as the city in its sole discretion shall decide, including the dedication, establishment, maintenance and improvements of all new rights-of-way and thoroughfares and other public properties of any type. In the event the city grants another cable franchise, the new franchise shall be granted on the same terms as the existing franchise.

B. Incorporation by Reference. The provisions of this chapter shall be incorporated by reference in any franchise ordinances or licenses approved hereunder.

C. Nature and Extent of the Grant. Any franchise granted hereunder by the city shall authorize the franchisee, subject to the provisions herein contained:

1. To engage in the business of operating and providing cable service and the distribution and sale of such service to subscribers within the city;

2. To erect, install, construct, repair, replace, reconstruct, maintain and retain in, on, over, under, upon, across and along any street, such amplifiers and appliances, lines, cables, conductors, vaults, manholes, pedestals, attachments, supporting structures and other property as may be necessary and appurtenant, to the cable communications system; and, in addition, so to use, operate and provide similar facilities, or properties rented or leased from other persons, firms or corporations, including but not limited to any public utility or other franchisee franchised or permitted to do business in the city. No privilege or exemption shall be granted or conferred upon franchisee by any franchise except those specifically prescribed therein, and any use of any street shall be consistent with any prior lawful occupancy of the street or any subsequent improvement or installation therein.

D. Term. This franchise or renewal and all rights, privileges, obligations and restrictions pertaining thereto shall commence on the effective date of Ordinance No. 946-06 and shall expire on March 31, 2007. Notwithstanding SMC 5.28.360 relating to franchise renewal, negotiations for renewal of the franchise agreement shall commence in the year 2001. (Ord. 946-06 § 2; Ord. 896-05 § 2; Ord. 878-05 § 2; Ord. 866-04 § 2; Ord. 859-04 § 2; Ord. 699-99 § 1; Ord. 502 § 2, 1988)

5.28.030 Hearing.

Prior to the granting of a franchise, the city council shall conduct a public hearing to determine the following:

A. That the public will be benefited by the granting of a franchise to the applicant;

B. That the applicant has requisite financial and technical resources and capabilities to build, operate and maintain a cable television system in the area;

C. That the applicant has no conflicting interests, either financial or commercial, which will be contrary to the interests of the city;

D. That the applicant will comply with all terms and conditions placed upon the franchisee by this chapter;

E. That the applicant is capable of complying with all relevant federal, state and local regulations pertaining to the construction, operation and maintenance of the facilities and systems incorporated in its application for a franchise. (Ord. 502 § 3, 1988)

5.28.040 Acceptance.

A. No franchise granted pursuant to the provisions of this chapter shall become effective unless and until the ordinance granting same has become effective.

B. Within 30 days after the effective date of the ordinance awarding a franchise, or within such extended period of time as the council in its discretion may authorize, the franchisee shall file with the city clerk/treasurer its written acceptance, in form satisfactory to the city attorney, of the franchise, together with the insurance policies required by SMC 5.28.430. (Ord. 502 § 4, 1988)

5.28.050 Police powers.

In accepting any franchise, the franchisee acknowledges that its rights hereunder are subject to the police power of the city to adopt and enforce general ordinances necessary to the safety and welfare of the public and it agrees to comply with all applicable general laws enacted by the city pursuant to such power. (Ord. 502 § 5, 1988)

5.28.060 Rules and regulations by the city.

A. In addition to the inherent powers of the city to regulate and control any franchise it issues, the authority granted to it by the Act, and those powers expressly reserved by the city, or agreed to and provided for in a franchise, the right and power is hereby reserved by the city to promulgate such additional regulations as it may find necessary in the exercise of its lawful powers provided they are consistent with the terms and conditions of this chapter and provided further they do not increase the material burdens nor diminish the rights of the franchisee.

B. The city council reserves the right to delegate its authority for franchise administration to a designated agent. (Ord. 502 § 6, 1988)

5.28.070 Technical standards.

A. Franchisee shall comply with FCC Rules, Part 76, Subpart K, Section 76.601 through 76.610 and as amended, at the minimum, the following:

1. Applicable city, county, state and national/federal codes and ordinances;

2. Applicable Utility Joint Attachment Practices;

3. The National Electrical Safety Code; ANSI C2;

4. Local Utility Code Requirements;

5. Local rights-of-way procedures;

6. NCTA Manual 741 Signal Leakage and Interference Control.

B. Preventative Maintenance. A comprehensive routine preventative maintenance program shall be developed, effected and maintained for each system by the respective franchisee to ensure continued top quality cable communications operating standards in conformance with FCC Part 76. (Ord. 502 § 7, 1988)

5.28.080 Coverage.

Within 12 months from the date of the franchise, franchisee shall have completed the installation of cable in all areas of the city subject to the condition of SMC 5.28.190. All annexed and newly developed areas shall be provided cable service, if such areas are contiguous to the city limits, within six months from the time of obtaining necessary permits subject to the same conditions. (Ord. 502 § 8, 1988)

5.28.090 Public buildings.

Franchisee shall provide without charge for installation, basic service, outlet and converter at such public buildings as specified in Table 5.28.090 and that may be constructed during the period of the franchise provided that such installation will not require undergrounding cable through or under pavement or other physical obstructions other than open earth, extension of the trunk or distribution lines from the nearest point of connection to the existing cable system, or other modifications, additions or improvements to the existing cable television system which would cost franchisee in excess of normal installation costs.

City-owned and maintained buildings include the following:

Table 5.28.090

Building	Address
Sultan Library	515 Main Street
Museum	102 4th Street
City Hall	703 1st Street
Barricks Building	705 1st Street
Community Meeting Room	707 1st Street
Fire Station	304 Alder Street
School District Properties:
Administration Building	514 4th Street
Grade School	415 Date Avenue
Present High School – Middle School	301 High Street
New High School (Jan. 1988)	13715 310th Ave. SE

(Ord. 502 § 9, 1988)

5.28.100 Parental control devices.

Franchisee will make available a device by which the subscriber can prohibit viewing of a particular cable service during periods selected by that subscriber. The fee for this device will be a one-time charge equal to no more than franchisee’s actual cost for the device. (Ord. 502 § 10, 1988)

5.28.110 Other interactive services.

The city may, at its discretion, require that the franchisee provide such services as addressability, security, computer interaction, banking, shopping, etc. upon a “two-way” basis at such time as 50 percent of comparable cable systems in cities of comparable size in the state of Washington as determined by trade reference books have installed such system. Demographic factors to be considered are size of the subscriber base and the number of dwelling units passed. Such system upgrade will be completed within 24 months of such final notice and determination to the franchisee. (Ord. 502 § 11, 1988)

5.28.120 Emergency power.

Franchisee shall provide a standby power system to automatically activate equipment at the headends in the event of a primary electrical failure. Such system shall be operational within 36 months from the effective date of the franchise. (Ord. 502 § 12, 1988)

5.28.130 Emergency override.

A. The franchisee will provide emergency override capability from its headend via telephone line from the city of Sultan within 24 months; provided no objections are received from other communities served by the same headend. The city shall file with the franchisee a list of authorized officials who will be granted permission to request the franchisee to transmit such information. Such a request will be made solely in case of extreme local emergency as a form of disaster control only when all other means of notification are inadequate in view of the urgency of a communications crisis. The city of Sultan shall accept full responsibility for any legal consequences that may occur through its use of such system.

B. Extension of the Emergency Override System. In support of the enhancement, the emergency communication goals of the consortium and with permission of the city of Sultan, franchisee will expand the emergency override capability currently available in the city of Sultan to all consortium member communities. The consortium shall file with the franchisee a list of authorized officials who will be granted permission to access and utilize the system. Access of the emergency override system will be made solely in the case of extreme local emergency as a form of disaster control and/or warning only when all other means of notification are inadequate in view of the urgency of the communication crisis. The consortium shall save, defend, indemnify and hold harmless franchisee for any claims or judgments arising out of operation of the emergency override system. Also, the consortium agrees to test the system yearly and at a time that is least disruptive to the communities. (Ord. 699-99 § 4; Ord. 502 § 13, 1988)

5.28.135 PEG equipment and support.

The franchisee shall contribute to the consortium certain equipment, software and user training to initiate and support public, educational and governmental access not to exceed $15,000 and as specified in Exhibit A, Capital Contribution*. The cost of additional capital equipment, software or training beyond that described above to enhance PEG access requested by the consortium shall be allocated to the member communities on a per subscriber basis. Once franchisee completes its initial PEG contribution for a PEG access with equipment, software and training, the city agrees that such additional allocated equipment costs paid by the franchisee as the capital contribution may be added to the price of cable services and recovered from customers in the city as “external costs,” as such term is used in 47 CFR Section 87.022 on the date of the agreement. In addition, all amounts paid as the capital contribution may be separately stated on customer’s bill as permitted in 47 CFR Section 76.985. (Ord. 699-99 § 3)

*Code reviser’s note: Exhibit A, attached to Ordinance 699, is available in the office of the city clerk/treasurer.

5.28.140 Construction standards.

All facilities constructed under this chapter shall be placed and maintained at such places and positions in or upon such streets, avenues, alleys and public places as shall not interfere with the passage of traffic and the use of adjoining property, and shall conform to the applicable section of the National Electrical Code, codes of state of Washington and city regulations pertaining to such construction. Whenever the city imposes as a condition to its approval of a tentative map or a parcel map a requirement that necessitates replacing, undergrounding or permanently or temporarily relocating existing facilities of the cable system, the builder, developer or subdivider shall reimburse the franchisee for all costs of the replacement, undergrounding or relocation. (Ord. 502 § 14, 1988)

5.28.150 Construction notification.

The city may establish reasonable minimum requirements for advance notification to residents adjacent to proposed construction areas. (Ord. 502 § 15, 1988)

5.28.160 Undergrounding.

In those areas and portions of the city where the transmission or distribution facilities of both the public utility providing telephone service and those of the utility providing electric service are underground or hereafter may be placed underground, then the franchisee shall likewise construct, operate and maintain all of its transmission and distribution facilities in the same area underground. Amplifiers and associated equipment in franchisee’s transmission and distribution lines may be in appropriate housing upon the surface of the ground as approved by the city. (Ord. 502 § 16, 1988)

5.28.170 Safety requirements.

A. Franchisee shall, at all times, employ professional care and shall install and maintain and use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injuries, or nuisances to the public.

B. All structures and all lines, equipment and connections in, over, under and upon the streets, sidewalks, alleys and public ways or places of the franchise area, wherever situated or located, shall at all times be kept and maintained in a safe, suitable condition, and in good order and repair.

C. The city reserves the general right to see that the system of the franchisee is constructed and maintained in a safe condition. If an unsafe condition is found to exist by the city, it may order the franchisee to make necessary repairs within 30 days from the receipt of the city’s notification thereof, the city may make the repairs itself or have them made, and collect all reasonable costs thereof from the franchisee. (Ord. 502 § 17, 1988)

5.28.180 New developments.

A. The developer or property owner shall, at its cost, provide the franchisee with sufficient space for conduit, vaults, pedestals and laterals. The franchisee shall provide specifications for such construction as required.

B. The franchisee shall be given written notification of when such trenches will be open. If the franchisee fails to place its equipment in such open construction after five working days, the cost of new trenching shall be borne by the franchisee.

C. The franchisee’s amplifiers and essential connection thereto may be placed in appropriate housing above ground as approved by the city. In any case, the city shall not be responsible for any costs in placing such equipment underground. (Ord. 502 § 18, 1988)

5.28.190 Line extension.

A. Franchisee agrees to provide cable communications service to all areas within the city, subject to the condition that there are at least 50 dwelling units per street mile or one such unit within 150 feet of franchisee’s distribution system as measured from existing system or such ratio thereof.

B. In the event request is made for service by a resident living in an area not meeting such criteria, the franchisee may make such installation available to the requesting subscriber on a time and material cost basis. (Ord. 502 § 19, 1988)

5.28.200 Building moving.

Whenever any person shall have obtained permission from the city to use any street for the purpose of moving any building, the franchisee, upon seven days’ written notice from the city, shall raise or remove, at the expense of that person desiring to move the building, any of its or their wires which may obstruct the removal of such building; provided, that the moving of such building shall be done in accordance with regulations and general ordinances of the city. Where more than one street is available for the moving of such building, the building shall be moved on such street as shall cause the least interference with the lines of franchisee and other franchise holders. It is further provided that the person or persons moving such building shall indemnify and save harmless said franchisee of and from any and all damages or claims of whatsoever kind or nature caused directly or indirectly for such temporary arrangement of the lines and poles of the franchisee. (Ord. 502 § 20, 1988)

5.28.210 Tree trimming.

With city approval, which shall not be unreasonably withheld, the franchisee shall have the authority to trim trees upon and overhanging streets and public ways and places of the franchise area so as to prevent the branches of such trees from coming in contact with the wires and cables of the franchisee and if necessary to clear the microwave path and shall be responsible for debris removal from such activities. At the option of the city, and with advance written notice to the franchisee, such trimming may be done by it or under its supervision and direction, with reasonable costs to be borne by franchisee. (Ord. 502 § 21, 1988)

5.28.220 Rates.

Within 60 days after the grant of any franchise hereunder, franchisee will file with the city a complete schedule of all rates to be charged to all subscribers. Prior to implementation of any change in rates or charges for any service or equipment provided by franchisee, franchisee shall provide the city and all subscribers a minimum of 30 days’ prior written notice of such change. However, this requirement shall not pertain to pay-per-view and other like services. (Ord. 502 § 22, 1988)

5.28.230 Discounts.

Franchisee shall offer a discount to those individuals permanently disabled or 62 years or older who are the legal owner or lessee/tenant of their residence; provided, that their combined disposable income from all sources does not exceed the federal poverty level for the current and preceding calendar year. Such discounts will consist eight and one-half percent from the normal charge for basic residential services as well as a 50 percent reduction in normal residential installation charges. The city of Sultan or its designee shall be responsible for certifying to the franchisee that such applicants conform to the specified criteria. (Ord. 502 § 23, 1988)

5.28.240 Franchise fee.

Franchisee shall pay to the city a sum equal to five percent of gross revenues as defined in this chapter. Such payments will be made on a quarterly basis. (Ord. 502 § 24, 1988)

5.28.250 Record inspection.

Subject to statutory and constitutional limits and reasonable advance notice, the city reserves the right to inspect the records of the franchisee at any time during normal business hours; provided, the city shall maintain the confidentiality of any trade secrets or other proprietary information in the possession of the franchisee. Such documents shall include such information as financial records, subscriber records within the context of Section 631 of the Act, tax returns and plans. Such data, however, is understood to be limited to such information that pertains solely to the operation and maintenance of the cable television system within the city of Sultan. (Ord. 502 § 25, 1988)

5.28.260 Reports.

The franchisee shall furnish, upon request, a report of its activities as appropriate. Such report may include:

A. Most recent annual report;

B. A copy of the 10-K report, if required by the Securities and Exchange Commission;

C. The number of homes passed;

D. The number of subscribers with basic services;

E. The number of subscribers with premium services;

F. The number of hookups in period;

G. The number of disconnects in period;

H. Total number of miles of cable in city;

I. Summary of complaints received by category, length of time taken to resolve and action taken to provide resolution;

J. A statement of its current billing practices;

K. A current copy of its subscriber service contract;

L. Report on operations; such other reports with respect to its operation, affairs, transactions or property that may be appropriate. (Ord. 502 § 26, 1988)

5.28.270 Periodic meetings.

Upon request, the franchisee shall meet with designated city officials and/or designated representative(s) to review the performance of the franchisee over the preceding period. The subjects shall include, but not be limited to those items covered in the periodic reports and performance tests. (Ord. 502 § 27, 1988)

5.28.280 Performance tests.

A. If the city determines that reasonable evidence exists of inadequate cable system performance pursuant to SMC 5.28.070, it may require franchisee to perform tests and analyses directed toward such suspected inadequacies at the franchisee’s own expense. Franchisee shall fully cooperate with city in performing such testing and shall prepare results and the report prepared by franchisee shall include at least:

1. A description of the problem in CATV system performance which precipitated the special tests;

2. What CATV system component was tested;

3. The equipment used and procedures employed in testing;

4. The method, if any, by which such CATV system performance problem was resolved;

5. Radiation limits tests, such as those heretofore required by the FCC;

6. Any other information pertinent to said tests and analyses which may be required by the city, or determined when the test is performed.

B. If the results of testing shall indicate that the franchisee was operating within the established parameters as described in SMC 5.28.070; then the city shall be responsible for the costs of such tests. If the technical analysis shows that the franchisee is in violation of such parameters, the franchisee shall reimburse the city for such actual costs of testing. If such violation is shown, franchisee shall correct all violations within 60 days after written notice from the city. (Ord. 502 § 28, 1988)

5.28.290 Customer service.

A. Upon the written request of the city at a time no sooner than five years from the date of the franchise, franchisee shall establish at least a part-time facility to enable residents to exchange converters, pay bills and receive appropriate information. It is contemplated that such a facility would be operated no less than two days a week for three hours per day. However, if at that time, franchisee demonstrates that it is not economically feasible to do so or that suitable alternative methods exist, such requirement shall be waived. Such waiver shall not be unreasonably denied.

B. Franchisee shall render repair service to restore the quality of the signal at no less than the same standards existing prior to the failure or damage of the component causing the failure and make repairs promptly and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during a period of minimum use of the system. A written or computerized log shall be maintained for a period of one year for all service interruptions which can be inspected upon notice.

C. An employee of franchisee shall answer and respond to all individual complaints received prior to 5:00 p.m. on weekdays. Franchisee may use an answering service to receive complaints after 5:00 p.m. on weekdays and on weekends and holidays. A standby technician shall check with the answering service until 9:00 p.m. on weekdays and until 5:00 p.m. on weekends and holidays and will respond to any system outage affecting more than two customers.

D. Franchisee shall instruct its answering service to immediately notify a standby technician during the weekend or on a holiday if it receives calls indicating an outage affecting more than two customers.

E. Franchisee will maintain a sufficient repair force to respond to individual customer complaints or requests for repair service within 24 hours, after receipt of the complaint or request except Saturday, Sunday and legal holidays. All complaints shall be resolved within seven days, to the extent reasonable. Upon a request by customer, no charge for the period of the outage shall be made to the customer if the customer was without service for a period exceeding 24 hours, unless the outage was due to acts of God or events beyond the reasonable control of franchisee.

F. A standby technician shall be on call seven days a week. Franchisee shall respond immediately to service complaints involving a system outage affecting more than two customers. For purposes of this section, a system outage shall mean a customer is without all services.

G. Franchisee shall supply at the time of a new connection, and periodically at least once a year, the title, address, and telephone number of the Sultan city official or his/her designee, to whom system subscribers may direct their concerns.

H. All customers and members of the general public may direct comments regarding the company’s service or performance to the city or its designee. The city will provide a method whereby all customers and members of the general public have recourse to a review by the city or its designee regarding any complaints. (Ord. 502 § 29, 1988)

5.28.300 Subscribers’ right of privacy.

The franchisee shall comply with all of the provisions of Section 631 of the Act. (Ord. 502 § 30, 1988)

5.28.310 Programming.

For informational purposes only, the franchisee shall file, upon granting of the franchise, a complete listing of its cablecast programs including a breakdown of its basic and premium schedule. Such listing shall become the initial programming and cost schedule to be considered as the basis from which any changes may be contemplated in the future. This information, however, does not accord the city any greater rights of regulation than those granted in the Act. (Ord. 502 § 31, 1988)

5.28.320 Modification.

In the event the franchisee shall seek to have the existing franchise modified, Section 625 of the Act shall govern the procedure for the modification request unless city and franchisee shall otherwise agree. The request, which shall specify all items to be negotiated shall be made upon the other party in writing and both parties shall act in good faith to reach agreement. (Ord. 502 § 32, 1988)

5.28.330 Nondiscrimination.

A. The franchisee shall not as to rates, charges, service facilities, rules, regulations or in any other respect make or grant any preferences or advantage to any person nor subject any person to any prejudice or disadvantage; provided, that nothing in this chapter shall be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classification would be entitled; and provided further, that connection and/or service charges may be waived or modified during promotional campaigns of franchisee.

B. Installation and housedrop hardware shall be uniform throughout the city, except that the franchisee shall be free to change its hardware and installation procedure as state of the art progresses.

C. The franchisee will not deny access to cable communications service to any group of potential residential subscribers because of the income of the residents of the local area in which the group resides. (Ord. 502 § 33, 1988)

5.28.340 Equal employment opportunity.

The franchisee shall comply with all provisions of Section 634 of the Act. (Ord. 502 § 34, 1988)

5.28.350 Continuity of service.

It shall be the right of all subscribers to continue receiving service so long as their financial and other obligations to the company are fulfilled.

A. In this regard the franchisee shall act so far as it is within the control of the franchisee so as to ensure that all subscribers receive continuous uninterrupted service during the term of this franchise.

B. In the event the franchisee fails to operate a system for 72 continuous and consecutive hours without prior notification to and approval of the city council or without just cause such as an impossibility to operate the system because of the occurrence of an act of God or other circumstances reasonably beyond franchisee’s control, the city may, after notice and an opportunity for franchisee to commence operations at its option, operate the system or designate someone to operate the system until such time as the franchisee restores service to conditions acceptable to the city council or a permanent franchisee is selected. If the city is required to fulfill this obligation for the franchisee, the franchisee shall reimburse the city for all reasonable costs or damages in excess of revenues from the system received by the city that are the result of the franchisee’s failure to perform. (Ord. 502 § 35, 1988)

5.28.360 Franchise renewal.

The provision of Section 626 of the Act will govern the actions of the city and the franchisee in proceedings relating to franchise renewal. The city expressly reserves the right to establish guidelines and monitoring systems in accordance with the provisions of the Act to measure the effectiveness of the franchisee’s performance during the term of such franchise. (Ord. 502 § 36, 1988)

5.28.370 Transfer of ownership.

A. Any franchise awarded by the city shall be based upon an evaluation by the city of each application, the qualifications, and other criteria as such pertain to each particular applicant. No franchise can be sold, transferred, leased, assigned or disposed of in whole or in part either by sale, voluntary or involuntary, merger, consolidation or otherwise, unless approval is granted by the city council under the same terms and conditions as the original franchise or as it may be subsequently amended by mutual agreement to insure a review of unforeseen circumstances not present at the time of the original franchise. The city’s approval shall not be unreasonably withheld. Such costs associated with this process shall be reimbursed to the city by the new prospective franchisee.

B. An assignment of a franchise shall be deemed to occur if there is an actual change in control or where ownership of 50 percent or more of the beneficial interests, singly or collectively, are obtained by other parties. The word “control” as used herein is not limited to majority stock ownership only, but includes actual working control in whatever manner exercised.

C. The franchisee shall promptly notify the city prior to any proposed change in, or transfer of, or acquisition by any other party of control of the franchisee’s company. Every change, transfer or acquisition of control of the franchisee’s company shall make the franchise subject to cancellation unless and until the city shall have consented thereto. In the event that the city adopts a resolution denying its consent and such change, transfer or acquisition of control has been effected, the city may cancel the franchise unless control by the franchisee is restored to a status acceptable to the city council.

D. Such approval of transfer, subject to conditions enumerated above, shall not be unreasonably withheld. Approval of the city shall not be required if said transfer is from franchisee to another person or entity, controlling, controlled by or under common control with the franchisee. Approval shall not be required for mortgaging purposes provided that less than 50 percent of the beneficial interests, as described above are affected by such mortgage.

E. Upon the commencement of a foreclosure action or other actions which could possibly result in a judicial sale of all or a substantial part of the cable system, the franchisee shall notify the city council of such fact, and such notification shall be treated as a notification that a change in control of the company has taken place, and the provisions of this chapter governing the consent of the city council to such change in control of the franchisee shall apply.

F. Any transfer or assignment approved by the city shall be evidenced by a written instrument, a duly executed copy of which shall be filed in the office within 60 days after the approval of the transfer or assignment by the city. By said instrument, the assignee shall agree to comply with all terms of the ordinance codified in this chapter, the franchise ordinance and the assignor’s application. The city shall have the right, at its sole discretion, to require that any conditions in the original franchise be fulfilled prior to such transfer. (Ord. 502 § 37, 1988)

5.28.380 Right of city to purchase.

The city reserves the right to purchase the existing system pursuant to Section 627 of the Act. (Ord. 502 § 38, 1988)

5.28.390 Removal and abandonment of property of franchisee.

A. The city may direct the franchisee to temporarily disconnect or bypass any equipment of the franchisee in order to complete street construction or modification, install and remove underground utilities, or for other reasons of public safety and efficient operation of the city. Such removal, relocation or other requirement shall be at the sole expense of the franchisee.

B. In the event that the use of any part of the cable system is discontinued for any reason for a continuous period of 12 months, or in the event such system or property has been installed in any street or public place without complying with the requirements of this chapter or other city ordinances or the ordinance codified in this chapter has been terminated, canceled or has expired, the franchisee shall promptly, upon being given 10 days’ notice, remove within 90 days from the streets or public places all such property and poles of such system other than any which the city may permit to be abandoned in place. In the event of such removal, the franchisee shall promptly restore the street or other areas from which such property has been removed to a condition similar to that condition existing before such removal.

C. Any property of the franchisee remaining in place 90 days after the termination or expiration of the franchise shall be considered permanently abandoned. The city may extend such time not to exceed an additional 90 days.

D. Any property of the franchisee to be abandoned in place shall be abandoned in such manner as the city shall prescribe. Upon permanent abandonment of the property of the franchisee in place, the property shall become that of the city, and the franchisee shall submit to the city clerk/treasurer an instrument in writing, to be approved by the city attorney, transferring to the city the ownership of such property. None of the foregoing affects or limits franchisee’s rights to compensation for an involuntary abandonment of its property under state, federal law or the Constitution. In the event the city and the franchisee are unable to agree as to whether an abandonment is voluntary for the purposes of this section, either party may invoke arbitration to resolve such question. (Ord. 502 § 39, 1988)

5.28.400 Revocation for cause.

A. Any franchise granted by the city may be terminated during the period of such franchise for the following reasons:

1. Failure by the franchisee to substantially comply with material provisions of this chapter;

2. Failure of the franchisee to comply with FCC regulations, or other provisions of the Act.

B. The procedure to be followed resulting in termination for any of the above reasons, save franchisee’s request, will be:

1. City council will direct in writing franchisee to correct such deficiencies or comply with such regulations within 30 days or a reasonable period of time;

2. Failure to do so will cause the matter of termination to be brought before the city council;

3. At such hearing the franchisee and other interested parties may offer evidence explaining or mitigating such noncompliance. The city council in its sole discretion, will make the determination as to whether such noncompliance was without just cause. In the event the city council finds that such noncompliance was without just cause, the city council may at its sole discretion fix an additional time period to cure such deficiency(ies). If the deficiency has not been cured at the expiration of any additional time period or if the council does not grant any additional period, the city council may by ordinance declare the franchise to be terminated and forfeited;

4. If the franchisee appeals the revocation and termination of the franchise through legal remedies, the revocation of such franchise shall be held in abeyance pending such de novo judicial review by a court of competent jurisdiction;

5. Provided, nothing contained in the above subsections of this section shall prevent the issuance of a new franchise containing terms substantially the same or identical to a franchise which previously was revoked, on satisfactory assurances made to the city council that the terms and conditions of this chapter can be met by the franchisee. (Ord. 502 § 40, 1988)

5.28.410 Effect of termination for noncompliance.

Subject to state and federal law, if any franchise is terminated by the city by reason of the franchisee’s noncompliance, that part of the system under such franchise located in the streets and public property, shall, at the election of the city, become the property of the city at a cost consistent with the provisions of Section 627(b)(1) of the Act. If the city, or a third party, does not purchase the system, the franchisee shall, upon order of the city council, remove the system as required under SMC 5.28.390. (Ord. 502 § 41, 1988)

5.28.420 Indemnify and hold harmless.

The franchisee will indemnify and hold harmless the city from any and all liabilities, fees, costs and damages except in the case of negligence or willful misconduct on the part of the city, whether to person or property, or expense of any type or nature which may occur to the city by reason of the construction, operation, maintenance, repair and alterations of franchisee’s facilities or any other actions of franchisee in the city of Sultan. In any case in which suit or action is instituted against the city by reason or damages or injury caused by franchisee, the city shall cause written notice thereof to be given to the franchisee and franchisee thereupon shall have the duty to appear and defend in any such suit or action, without cost or expense to the city. (Ord. 502 § 42, 1988)

5.28.430 Insurance.

A. The franchisee shall concurrently with the filing of an acceptance of award of any franchise granted hereunder, furnish to the city and file with the city clerk/treasurer and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a general comprehensive liability insurance policy, in protection of the city, its officers, boards, commissions, agents and employees, protecting the city and all persons against liability for loss or damage for personal injury, death and property damage, and errors or omissions, occasioned by the operations of franchisee under such franchise, with minimum limits of $1,000,000 for both personal injury and/or property damage.

B. The policies mentioned in subsection (A) of this section shall name the city, its officers, boards, commissions, agents and employees, as additional insureds and shall contain a provision that a written notice of cancellation or reduction in coverage of said policy shall be delivered to the city 30 days in advance of the effective date thereof; if such insurance is provided by a policy which also covers franchisee or any other entity or person other than those above named, then such policy shall contain the standard cross-liability endorsement. (Ord. 502 § 43, 1988)

5.28.440 Inconsistency.

If any portion of this chapter should be inconsistent with any rule or regulation now or hereinafter adopted by the FCC or other federal legislation, then to the extent of the inconsistency, the rule or regulation of the FCC or other federal legislation shall control for so long, but only for so long, as such rule or regulation shall remain in effect, but the remaining provisions of this chapter shall not hereby be effected. (Ord. 502 § 44, 1988)

5.28.450 Force majeure.

In the event that the franchisee’s performance of any of the terms, conditions, obligations or requirements of this chapter is prevented or impaired due to any cause(s) beyond its reasonable control or not reasonably foreseeable, such inability to perform shall be deemed to be excused and no penalties or sanctions shall be imposed as a result thereof. (Ord. 502 § 46, 1988)