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Ordinance Number 494256 ORDINANCE NO. 494 CABLE TELEVISION SYSTEMS AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AMENDING TITLE 7, CHAPTER 2, OF THE SAN JUAN CAPISTRANO MUNICIPAL CODE ESTABLISHING RULES AND REGULATIONS FOR CABLE TELEVISION SYSTEMS THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Amendments Title 7, Chapter 2 of the San Juan Capistrano Municipal Code is hereby amended to read as follows: 1. Section 7-2.01, Definitions, is amended to read as follows: "Section 7-2.01. Definitions. "For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows: "(a) 'Cable television system' shall mean and include any facility that, in whole or in part, receives, directly or indirectly, over the air and amplifies or otherwise modifies the signals transmitting programs broadcast by one or more television or radio stations and distributes such signals by wire or cable to subscribing members of the public who pay for such services. 'Cable television system' shall not include any of the following: "(1) Any such facility that serves fewer than fifty (50) subscribers; and, "(2) Any such facility that serves only the residents of one or more apartment _ dwellings under common ownership, control, or management and commercial establishments located on the premises of such apartment dwellings. "Any modified definition of a cable television system approved by the Federal Communications Commission subsequent to the effective date of this Ordinance, shall immediately apply to all the terms and conditions of this chapter and shall completely supersede all previous definitions for the purposes of interpreting the provisions of this chapter. -1- 2571 "(b) 'Cable TV Board' shall mean a body of persons acting under Council authority and appointed by the Council. The membership of the Board shall consist of persons from the community and/or from the administrative staff of the City. The powers and duties of the Board shall be determined by the Council. "(c) 'City Manager' shall mean the City Manager of the City or his designee. "(d) 'Director of Administrative Services' shall mean the Director of Administrative Services or his designee. "(e) 'Grantee' shall mean any person, firm, or corporation granted a franchise by the Council pursuant to the provisions of this chapter and the lawful successor, transferee, or assignee of such person, firm, or corporation. "(f) 'Materially alter' shall mean and apply to a change that significantly and adversely affects the ability of the grantee to provide the cable TV services in accordance with its franchise at a reasonable profit. "(g) 'Gross revenues' shall mean any and all compensation received directly or indirectly by a grantee, including the following: 11(1) Installation fees; 11(2) Disconnect and reconnect fees; "(3) Rental fees, including, but not limited to, deposits accepted by a grantee; 11(4) Fees for the transmission of broadcast signals and access and origination channels, if any; "(5) Per -program or per -channel charges; 11(6) Leased channel or facility revenues; "(7) Advertising revenue; and, "(8) Any other income derived from the system. "Gross revenues' shall exclude all sales taxes and excise taxes payable by a grantee to Federal, State, or County governments as a direct result of operations pursuant to the provisions of this chapter. Refunds and deposits shall be deducted from current gross revenues upon return. d= "(h) 'Property of a grantee' shall mean all property owned, installed, or used within the City by a grantee in the conduct of a cable television system business under the authority of a franchise granted pursuant to the provisions of this chapter. "(i) 'Street' shall mean the surface, the air space above the surface, and the area below the surface of any public street or other public right -o£ -way or public place, including public utility easements. "(j) 'Subscriber' or 'user' shall mean any person or entity receiving for any purpose any service of a grantee's cable television system, including, but not limited to, the conventional cable television system service of transmissions of television broadcasts, radio signals, original cablecasting, and the local government, education, and public access channels, or other services, such as leasing of channels, data and facsimile transmissions, pay television, and police, fire, and similar public service communications. 2. Subsection (b)(1) of Section 7-2.03, Supplemental rules, regulations, and standards, is amended to read as follows: "Section 7-2.03. Supplemental rules, regulations, and standards. "(1) Resolutions of intention. The Council shall pass its resolution of intention stating or describing the rules, regulations, or standards to be adopted, amended, modified, deleted, or otherwise changed and fixing and setting forth a day, hour, and place certain when and where any persons having any interests therein or objections thereto may appear before the Council and be heard. Such resolution shall direct the City Clerk to publish such resolution at least once within ten (10) days after the passage thereof and to mail a copy of such resolution to any grantee or applicant for a franchise not more than thirty (30) days, nor less than fifteen (15) days, prior to the time fixed for the hearing thereon. -3- 259 3. Subsection (a) of Section 7-2.05, Franchises: Designated service areas, is amended to read as follows: "Section 7-2.05. Franchises: Designated service areas. "(a) The franchises granted by the City pursuant to the provisions of this chapter shall be nonexclusive and shall authorize the grantee to construct, operate, and maintain a cable television system only within the service area of the City particularly described in the franchise. Additions or deletions to the designated service areas shall be made only upon the prior authorization of the Council. Subsection (2) of Section 7-2.09, Franchises: Applications: Determinations, is amended to read as follows: "Section 7-2.09. Franchises: Applications: Determ nations. "(2) The Council shall pass a resolution of intention to consider the granting of such a franchise, giving notice of the receipt of the application, describing the character of the franchise desired, stating the name of the proposed grantee, the character of the franchise, the terms and conditions upon which such franchise is proposed to be granted, that copies of the proposed franchise may be obtained at the office of the City Clerk, fixing and setting forth a day, hour, and place when and where any person having any interest therein or objection to the granting of such franchise may file written protests and appear before the Council and be heard, and directing the City Clerk to publish such resolution at least once within ten (10) days after the passage thereof and to post such resolution at the designated official posting places within the City. The City Clerk may also be directed by the Council to arrange for airing such resolution on one local TV channel between the hours of 7:00 p.m. and 9:00 p.m. for five (5) consecutive days prior to the hearing. Q� 5. Subsection (a) of —ection 7-2.11, Franchise: Payments, is amended to read as follows: "Section 7-2.11. Franchise: Payments. "(a) Amounts. In consideration of the granting and exercise of a franchise to use the streets for the operation of a cable television system, the grantee shall pay to the City, quarterly, during the life of the franchise a percentage of the gross revenue. 6. Subsections (1), (2) (i), (ii), and (iii), of Section 7-2.11, Franchise: Payments, are hereby deleted. 7. Subsection (c) of Section 7-2.15, Franchise: Termination, is amended to read as follows: "Section 7-2.15. Franchise: Termination. "(c) Requests to terminate. If the failure, refusal, or neglect of the grantee continues for a period of thirty (30) days following such written demand, the Council or City Manager may place a request for the termination of the franchise upon the next regular Council meeting agenda. The Council or City Manager shall cause to be served upon such grantee, at least ten (10) days prior to the date of such Council meeting, a written notice of the intent to request such termination and the time and place of the meeting, notice of which shall be published by the City Clerk at least ten (10) days before such meeting. 8. Subsection (h) is hereby added to Section 7-2.16, Rights reserved to the City, to read as follows: "(h) The City shall have the right from time to time to conduct an independent technical survey of any cable system operating in the City. The survey will be conducted at the sole expense of the City. The grantee will cooperate in providing information to the City. 9. Subsection (g) of Section 7-2.18, Properties of grantees: Location, is hereby deleted and the existing subsection (h) is hereby renumbered to read as (g). -5- 10. Section 7-2.22, Bonds, is hereby retitled to read as follows: "Section 7-2.22. Bonds and Security Deposits. 11. Section 7-2.22, Bonds and Security Deposits, is hereby amended to read as follows: "(a) Performance of law and franchise provisions. Upon being granted a franchise pursuant to the provisions of this chapter, and upon the filing of the acceptance required by the provisions of Section 7-2.10 of this chapter, the grantee shall file with the City Clerk, and shall thereafter, annually, during the entire term of such franchise, maintain in full force and effect, a corporate surety bond or other adequate surety agreement in such amount and kind as shall have been approved by the Council. "The bond or agreement shall be so conditioned that in the event the grantee shall fail to comply with any one or more of the provisions of this chapter or of such franchise, there shall be recoverable jointly and severally from the principal and surety any damages, losses, or costs suffered or incurred by the City as a result thereof, including attorney's fees if grantee is at fault and the costs of any action or proceeding, and including the full amount of any compensation, indemnification, or cost of the removal or abandonment of any property or other costs which may be in default, up to the full principal amount of such bond. Such condition shall be a continuing obligation for the duration of such franchise and thereafter until the grantee shall have satisfied in full any and all obligations to the City which shall arise out of or pertain to such franchise. Neither the provisions of this section, nor any bond accepted by the. City pursuant to the provisions of this section, nor any damages recovered by the City thereunder shall be construed to excuse faithful performance under the franchise issued pursuant to the provisions of this chapter or for damages, either to the full amount of the bond or otherwise. "(b) Performance of agreements and undertakings with subscribers. Upon being granted a franchise, and upon the filing of the acceptance required by the provisions of Section 7-2.10 of this chapter, the grantee 262 "shall keep and maintain a continuing cash deposit of $1,000.00 with the Director of Administrative Services. The initial deposit shall be accompanied by a written agreement providing that if grantee shall fail to comply with any one or more provisions of any agreement or undertaking made between the grantee and any subscriber, any damages or costs suffered or incurred by any such subscriber as a result thereof, including reasonable attorney's fees if the grantee is at fault and the cost of any action or proceeding may be recoverable from such deposit. Grantee shall, moreover, replenish the aforesaid fund to maintain the minimum balance at all times. 12. Subsections (a) and (b) of Section 7-2.26, Service standards, are hereby amended to read as follows: "Section 7-2.26. Service standards. "(a) Technical standards. Cable television systems in the City shall be constructed, installed, operated and maintained in a manner consistent with all applicable laws, ordinances, construction standards, governmental requirements and Federal Communications Commission technical standards. In addition, grantee shall provide the City, upon request, with a written report of the results of the annual proof of performance tests conducted pursuant to Federal Communications Commission standards and requirements. "(b) Continuous operation. Any cable television system in the City and all the equipment of such system shall be rated for and provide twenty-four (24) hour per day continuous operation, except in instances beyond the control of the grantee. 13. Subsections (g) and (h) are hereby added to Section 7-2.26, Service standards, to read as follows: "Section 7-2.26. Service standards. "(g) Standby power. Any cable television system in the City shall maintain equipment capable of providing standby power for headend, transportation and trunk amplifiers for a minimum of two hours. -7- 263 "(h) Security. Any cable television system in the City shall maintain adequate security of all headend, hubsite and other equipment so as to maintain systemintegrity and prevent vandalism. Such equipment should be fenced or secured in a manner acceptable to the City. 14. Subsections (4) and (7) of Section 7-2.28, Subscribers: Rates and charges, are hereby amended to read as follows: "Section 7-2.28 Subscribers: Rates and charges. 11(4) Preliminary hearings: Notices. If so directed by the Council, the Cable TV Board shall issue a written notice fixing and setting forth the day, hour, and place certain when and where any person having any interest therein may appear and be heard. "The City Clerk shall cause such notice to be published. The City Clerk shall also cause such notice to be posted at the designated official posting places within the City. The City Clerk also shall cause a copy of such notice to be mailed to any grantee at least ten (10) days prior to the date specified for the hearing, as well as to civic and community organizations. "(7) Resolution of intention. After the expiration of ten (10) days following the receipt of the report and opinion of the Cable TV Board, and if no objection has been filed thereto, the Council shall determine whether to adopt the opinion or to hold a further hearing and shall pass its resolution of intention to do so, describing and stating any rates or charges to be changed, the reasons of the Council therefor, and fixing and setting forth a day, hour, and place certain when and where any person having any interest therein may appear before the Council and be heard. Such resolution shall direct the City Clerk to publish the resolution at least once within ten (10) days after the passage thereof and to post such resolution at the designated official M -M 64 "posting places within the City. The City Clerk may also be directed by the Council to arrange for airing of the resolution on one local community TV channel between the hours of 7:00 p.m. and 9:00 p.m. for five (5) consecutive days prior to the hearing. In addition, the City Clerk also shall cause a copy of such resolution to be mailed to the grantee and to community and civic organizations in the City at least ten (10) days prior to the date specified for the hearing thereon. 15. Subsection (d) of Section 7-2.29, Subscribers: Complaints, is amended to read as follows: "Section 7-2.29. Subscribers: Complaints. "(d) Credits and refunds. In the event of service interruption or individual subscriber complaints where the signal quality fails to meet the technical standards established by the Federal Communications Commission, except when caused by circumstances outside of the grantee's control, such as fire, earthquake, riot, power failure, and other similar circumstances, the grantee shall credit or refund to the affected subscribers, upon verbal or written request, an amount equal to 10% of the monthly fee for each day or fraction thereof of such system or signal failure in excess of twenty-four (24) consecutive hours beginning from the time such failure is reported to the grantee. The restoration of service in cases of circumstances out of the control of the grantee shall be completed as soon as possible. 16. Subsection (e) is hereby added to Section 7-2.29, Subscribers: Complaints, to read as follows: "(e) City procedure for handling complaints. It shall be the grantee's responsibility to resolve subscriber complaints; however, when the City is called on to help resolve a complaint the following procedure will be used. "(1) Upon receiving a complaint, the City will notify the grantee as soon as possible of the circumstances. The grantee will respond to the City within twenty-four (24) hours of the actions taken or to be taken. X65 11(2) If complaints have not been resolved between grantee and subscriber and a request for resolution has been received from either party, the Director of Administrative Services shall forthwith notify the respondent of the nature of the complaint or controversy, and the solution sought. Such notification shall be made in writing and shall require the respondent to reply within twenty-four (24) hours after receipt. "If satisfactory resolution has still not resulted, either party may request a conference before the Director of Administrative Services who shall hear the matter and arbitrate the dispute. "Either party may ask to review the decision of the Director of Administrative Services and ask for an informal conference before the City Manager. "(3) The Director of Administrative Services may also impose a penalty of up to $200.00 for any occurrence giving rise to the complaint. This shall be at his sole discretion and funds for the penalty shall be taken from the security deposit established in Section 7-2.22. If a penalty is levied, the grantee will reimburse the security fund within 30 days. "(4) In the event that the decision of the Director of Administrative Services is not satisfactory to either party, either party may request that the complaint be reviewed by the City Manager as authorized in Section 7-2.16(e). _ 17. Subsections (a) and (d) of Section 7-2.33, Equal opportunity employment: Affirmative action, are amended to read as follows: "Section 7-2.33. Equal opportunity employment: Affirmative action. "(a) In carrying out the construction, maintenance, and operation of the cable television system, the grantee shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, age, or national origin. -10- 266 "(d) The grantee, -in all solicitations or advertisement for employees placed by or on behalf of the grantee, shall state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex, age, or national origin. SECTION 2. Effective Date. This Ordinance shall take effect and be in force thirty (30) days after its passage. SECTION 3. City Clerk's Certification. The City Clerk shall certify to the adoption of this Ordinance and cause same to be posted at the duly designated posting places within the City of San Juan Capistrano within fifteen (15) days after its passage. PASSED, APPROVED AND ADOPTED this 6th day of October 1 1983 , by the following vote, to wit: AYES: Councilmen Friess, Buchhdim Schwartze, and Mayor Bland NOES: None ABSTAIN: Councilman Hausdorfer ABSENT: None ANTHONY L. BLAND, MAYOR ATTEST: J STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF- SAN JUAN CAPISTRANO ) I, MARY ANN HANOVER, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Ordinance No. 494 , which was introduced at a meeting of the City Council of the City of San Juan Capistrano, California, held on September 20-r 1983 and adopted at a meeting held on October 6th , 1983 (SEAL) ,ji 2-,,Y1, MARY APW HANOVER, TY CLERK -11- Z by STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) and says: AFFIDAVIT OF POSTING MARY ANN HANOVER, being first duly sworn, deposes That she is the duly appointed and qualified City Clerk of the City of San Juan Capistrano; That in compliance with State laws of the State of California and in further compliance with City Resolution No. 79-2-21-7 and on the 7 th day of October , 1983 she caused to be posted: ORDINANCE NO. 494 being: CABLE TELEVISION SYSTEMS AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AMENDING TITLE 7, CHAPTER 2, OF THE SAN JUAN CAPISTRANO MUNICIPAL CODE ESTABLISHING RULES AND REGULATIONS FOR CABLE TELEVISION SYSTEMS in three (3) public places in the City of San Juan Capistrano, to wit: The Administration Building; The San Juan Hot Springs Dance Hall; The Orange County Public Library. CHECK LIST ORD. NO�RES. NO............ ........ ,Mayor has signed .... ...... Clerk has signed ............ City Seal stamped .._.✓_ All blanks typed in /-/ �A•n .Absent" ---.................................__._..... "Noes .............. -- ---- ------------------- --- - ------- .----- Typed in Official Record Book ....... ....... Posted to Classified Cards Copies sen[UY-Ic%I�r<�- ....... I .................................... Legal Publication ordered to be published (date).--................_._...........-------------.....---` No. Affidavits ----- .-------_. No. -Printed copies required ----------- _..._------ Remarks V�------------------------------ ------- .............. .....----- .- ..................................... .......!0...1�........ ------------ ----------- ----- MARY ANN HANOVER, CITY CLERK San Juan Capistrano, California -12-