§ 78-289. Grant of franchises.

(a)

The city may grant a cable franchise for a period not to exceed 15 years plus such extensions as may be approved by the city to serve the city.

(b)

In evaluating an application for a franchise, the city may, if applicable, and if required by applicable federal or state law, shall consider, among other things, the following factors: the applicant's technical, financial, and legal qualifications to construct and operate the proposed system; the adequacy of the proposed construction arrangements, facilities, equipment, and services based on the public convenience, safety and welfare; the applicant's experience in constructing and operating cable systems and providing cable service in other communities. In the case of an initial grant, the city shall also consider the economic impact upon private property within the franchise area; the public need for such franchise, if any; the capacity of public rights-of-way to accommodate the cable system; the present and future use of the public rights-of-way to be used by the cable system; the potential disruption to existing users of the public rights-of-way to be used by the cable system and the resultant inconvenience which may occur to the public; the financial ability of the franchise applicant to perform; and whether the proposal will meet reasonably anticipated community needs and serve the public interest. Evaluation by the city shall not be based on the content of the programming the applicant proposes to provide.

(c)

The city shall hold a public hearing to consider an application or applications, the applicant(s) shall be given at least ten days' prior notice of the hearing and shall be given an opportunity to be heard. Based upon the application(s), the testimony presented at the public hearing, any recommendations of the city administrator or staff, and any other information relevant to the application(s), the city shall decide by resolution whether to grant or deny a franchise application.

(d)

As a condition precedent to the grant of a franchise, the applicant shall file an acceptance of the franchise accompanied by any and all bonds, certificates of insurance or other obligations as required in a franchise agreement no later than the date of the city commission's consideration of the grant or denial of the application. This period may be extended for good cause by the city. If the acceptance is not filed with the city by the above-referenced date, or if the period is not extended by the city, the commission may delay consideration of the application or deny the application. The city may, at its option, grant the applicant a short-term extension(s). The grant of such a short-term extension(s) will not confer on the applicant the right to an automatic acceptance, transfer, modification or renewal. In the case of a transfer, the city shall grant an extension to this requirement as long as the franchisee keeps such insurance, bonds or other surety in place until 30 days after the transaction related to the transfer closes and the transferee has provided its insurance, bonds or other surety in place within 30 days following such closing.

(e)

Unless prohibited by applicable law, applications for the grant of an initial franchise, a franchise renewal, a franchise agreement modification, or a franchise transfer may be subject to a processing fee in addition to the filing fee in an amount not to exceed the reasonable and justifiable out-of-pocket costs to the extent that the filing fee does not cover the costs incurred by the city in considering the application, including consulting and legal costs. Prior to the date of the resolution approving or denying the franchise agreement or modification or transfer thereof by the city commission, the city shall notify the franchisee of the estimated amount of any processing fee and its method of calculation.

This processing fee is therefore intended to be a charge incidental to the awarding or enforcing of a franchise within the meaning of Section 622(g)(2)(D) of the Communications Act, 47 U.S.C. § 542(g)(2)(D), and may not be deducted from the franchise fee imposed in a franchise agreement or any federal or state tax and shall not be passed through to subscribers as a separate line item unless required by applicable law.

(Ord. No. 3806-04, § I, 10-25-2004)