HomeMy WebLinkAbout2395
ORDINANCE NO. 2395
AN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING
A FRANCHISE TO SAN BERNARDINO COMMUNITY TELEVISION ANTENNA
SYSTEM.
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION ONE: DEFINITIONS. For the purposes of this
ordinance, the following terms, phrases, words, and their deriva-
tions shall have the meaning given herein. When not inconsistent
with the context, words used in the present tense include the
future, words in the plural number include the singular number,
and words in the singular number include the plural number.
Provisions of this ordinance shall be construed in accordance
with the Laws of the State of California.
(a) "City": The City of San Bernardino, a municipal
corporation of the State of California, in its present incor-
porated form or in any later reorganized, consolidated, enlarged
or reincorporated form.
(b) "Council": The present governing body of the City
or any future board constituting the legislative body of the City.
(c) "Franchise Property": All property retained by the
Grantee in a street under authority of this franchise.
(d) "Grantee": The person or corporation to whom or
which this franchise is granted by the Council, and the lawful
successor or assignee thereof, and who or which has filed with
the City an acceptance and bond, referred to in Sections 3 and
13.
(e) "Street": The surface of, and the space above and
below any public street, road, highway, freeway, lane, alley,
court, sidewalk, parkway, drive or space allocated for public
utility easements, now or hereafter existing as such within the
City.
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(f) ''Closed Circuit System": Coaxial cables, wave guides,
other conductors or other closed channels for providing enter-
taining, educational, informational or intelligence material,
visual, audible or other, by radio frequency, electric impulses
or radio frequency electromagnetic waves passing over, on, in
or through such facilities, excluding any general broadcast of
radiant energy, for consideration or as a public service to
Subscribers, at the selection of the Grantee.
(g) "Subscriber": Any person or entity receiving for any
purpose Closed Circuit System signals or other Closed Circuit
System transmission.
(h) "Operating Licensee": Any person or entity, conduct-
ing all or part of a Closed Circuit System under license of, or
transfer from, the Grantee, pursuant to Section 6 (c).
(i) ''Total Gross Receipts": Any and all compensation and
other consideration in any form whatever and any contributing
grant or subsidy received directly or indirectly by Grantee and
its Operating Licensees from Subscribers in payment for Closed
Circuit System signals or other Closed Circuit System trans-
mission received within the City. Total Gross Receipts shall
also include any and all revenue wherever or however derived,
from any person or entity, whether located inside or outside of
City, as consideration for the performance of advertising, plant
protection or communication services or any other services of
any type or nature whatever by the use of all or any part of a
Closed Circuit System located within the City, other than serv-
ices to such person or entity as a Subscriber.
(1) For the purpose of determining Total Gross
Receipts, compensation or other consideration re-
ceived by an Operating Licensee of the Grantee shall
be deemed to have been received by the Grantee.
(2) For the purpose of computing that portion of
Total Gross Receipts which is obtained as considera-
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tion for services other than to a person or en-
tity as a Subscriber, any payment of compensation
or other consideration received by the Grantee
for such services shall be fairly and reasonably
allocated by Grantee and shall be determined by
the ratio that the revenue obtained for services
from Subscribers within the City bears to the
revenue obtained for services from Subscribers
performed both inside and outside of the City by
the use of all Closed Circuit Systems of the
Grantee.
(3) Total Gross Receipts shall not include any
taxes on the services furnished by the Grantee
imposed directly on Subscribers by any city,
state or other governmental unit and collected
by the Grantee for such governmental unit.
Section 2. FRANCHISE GRANT. ,The franchise hereby granted
by the City authorizes SAN BERNARDINO COMMUNITY TELEVISION AN-
TENNA SYSTEM, subject to the provisions herein contained, to
engage in the business of operating and providing a Closed
Circuit System in the City, and for that purpose to erect, in-
stall, construct, repair, replace, reconstruct, maintain and re-
tain in streets such poles, wires, cable, conductors, ducts,
conduits, vaults, manholes, amplifiers, appliances, attach-
ments, and other property as may be necessary and appurtenant
to a Closed Circuit System; and, in addition, so to use, operate
and provide similar properties rented or leased from other per-
sons, firms, or corporations, for such purpose.
Section 3. DURATION OF GRANT. This franchise shall be
effective on the thirty-first (31st) day after the publication
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of this ordinance, provided the Grantee has paid to the City
the sum of one hundred dollars ($100.00) and, has filed with
the City, within twenty (20) days after such date of publica-
tion, a written instrument, addressed to the Council, accept-
ing this franchise and agreeing to comply with its provisions.
This franchise shall expire twenty-five (25) years after
the effective date hereof, unless sooner terminated by the City
Council, in the event the Council shall have found, after notice
and hearing, that: (a) the Grantee has failed to comply with
any material provisions hereof; or (b) any provision hereof has
become invalid or unenforceable, and the Council finds that such
provision constitutes a consideration material to the grant of
this franchise; provided, however, that the Grantee shall be
given at least thirty (30) days' notice of any termination pro-
ceedings.
Section 4. FRANCHISE PAYMENTS.
(a) By its acceptance of this franchise, the Grantee agrees
to pay to the City, annually, in lawful money of the United
States, two percent (2%) of the total gross receipts collected
or received, or in any manner gained or derived in each calen-
dar year, or portion thereof, during the term of this franchise,
by the Grantee or its Operating Licensees from the properties,
operations, and business referred to in Section 2. In any year,
or portion thereof, during which payments under this section
amount to less than five hundred dollars ($500.00), Grantee
agrees to pay the City the minimum amount of five hundred dol-
lars ($ 500.00) .
(b) It is hereby found as a matter of fact, and it is
mutually agreed by the City in enacting this ordinance and by the
Grantee in accepting the franchise granted by it, that there is
no feasible method available for determining the portion of the
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annual Total Gross Receipts of the Grantee which arises from
the use, operation or possession of this franchise and the por-
tion which is attributable to other sources. It is, accordingly,
ordained and agreed that the portion of Grantee's annual Total
Gross Receipts arising from sources other than the use, opera-
tion and possession of this franchise is negligible and impos-
sible to ascertain in any economical manner, and for that rea-
son, Grantee's Total Gross Receipts shall be deemed to arise
from the use, operation and possession of the franchise granted
by this ordinance.
(c) The payments required by this section shall be paid
annually and be due on or before the last day of March of each
succeeding year. Payments shall be accompanied by a duly veri-
fied statement showing in detail the Total Gross Receipts re-
ceived by Grantee during the preceding calendar year from the
properties, operations, and business referred to in Section 2.
The Grantee shall at all times maintain accurate and complete
accounts of all revenue and income arising out of its opera-
tions under this franchise. Grantee's books, accounts and rec-
ords shall at all times be open to inspection and examination
by authorized officers, agents and employees of the City and
shall be kept in such form as to enable such authorized offi-
cers, agents and employees to ascertain the amounts due the
City and determine any other facts relative to operations under
this franchise. The right is reserved to the City of audit and
recomputation of any and all amounts paid under this franchise
and no acceptance of any payment shall be construed as a release
or as an accord and satisfaction of any claim the City may have
for further or additional sums payable under this franchise or
for the performance of any other obligation thereunder. In the
event of its holding over after expiration or other termination
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of this franchise, the Grantee shall render compensation pursu-
ant to the provisions of this franchise until the effective date
of a new franchise.
(d) Performance of the duty of rendering compensation
under this franchise and of every other obligation thereunder
shall not be excused by the fact that the Grantee or any of its
operating Licensees may purchase, lease or utilize, under any ar-
rangement whatsoever, any Closed Circuit System equipment or fa-
cilities or any other equipment or facilities required by a
Closed Circuit System from any public utility or other person
or entity. The Grantee agrees that its obligations under this
franchise, including the duty of payment of compensation there-
under, shall apply to all such equipment and facilities so pur-
chased, leased or utilized, whether such equipment or facili-
ties constitute all or any part of the Closed Circuit System
operated within the City by the Grantee or its Operating Licen-
sees.
Section 5. SURRENDER OF OTHER FRANCHISES.
(a) By its acceptance of this franchise grant or of an as-
signment thereof, the Grantee agrees that upon subsequent addi-
tions of areas to the City either by annexation, consolidation
or otherwise, all Closed Circuit System franchises of die
Grantee in such areas are thereby surrendered; provided, however,
that should this franchise be declared invalid or be rendered
inoperative by a final judgment, decree or order of any court of
competent jurisdiction, the franchises thereby surrendered shall
thereafter have the Same force and effect as if such surrender
had not occurred.
(b) By its acceptance of this franchise grant or of an as-
signment thereof, the Grantee agrees that any Closed Circuit Sys-
tem facilities and appurtenances in streets, which are subse-
quently acquired by the Grantee or which were authorized by
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franchises surrendered pursuant to the provisions of this sec-
tion, are thereupon authorized by and shall be subject to the
provisions of this franchise.
Section 6. LIMITATIONS ON GRANT.
(a) No privilege or exemption is granted or conferred
by this franchise except those specifically prescribed herein.
(b) Any privilege claimed under this franchise by the
Grantee in any street shall be subordinate to any prior lawful
occupancy of the streets, or other public property.
(c) This franchise is a privilege to be held in personal
trust by the original Grantee. It cannot in any event be trans-
ferred in part, and it is not to be sold, transferred, leased,
assigned, or disposed of as a whole, either by forced sale,
merger, consolidation, or otherwise, without prior consent of the
City expressed by ordinance, and then only under such conditions
as may be therein prescribed; provided, however that no such
consent shall be required for any transfer in trust, mortgage,
or other hypothecation, as a whole, to secure an indebtedness.
Prior consent of the City expressed by ordinance shall be re-
quired in the event the Grantee issues licenses for operations
under this franchise to Operating Licensees and such licenses
shall be subject to all the conditions prescribed in the ordi-
nance granting consent and the provisions of this franchise.
Nothing contained herein shall relieve the Grantee from any of
its duties and obligations under this franchise.
(d) Time is of the essence of this franchise. The Grantee
shall not be relieved of its obligation to comply promptly
with any of its provisions by any failure of the City to enforce
prompt compliance.
(e) P~y right or power in, or duty impressed upon, any
officer, employee, department, or Board of the City, is subject
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to transfer by the City to any other officer, employee, depart-
ment or Board of the City.
(f) The Grantee shall have no recourse whatsoever against
the City for any loss, cost, expense or damage, arising out of
any provision or requirement of this franchise or its enforce-
ment.
(g) Grantee is subject to all requirements of the City
Charter and of all ordinances, rules, regulations, and specifi-
cations of the City, heretofore or hereafter enacted or estab-
lished, including, but not limited to, those concerning street
work, street excavations, use, removal and relocation of prop-
erty within a street, and other street work.
(h) This franchise does not relieve the Grantee of any
obligation involved in obtaining pole space from any department
of the City or from others maintaining poles in streets.
Section 7. RIGHTS RESERVED TO CITY.
(a) There is hereby reserved to the City every ri~~t and
power which is required to be herein reserved or providE!d by any
ordinance of the City, and the Grantee by its acceptance of this
franchise agrees to be bound thereby and to comply with any ac-
tion or requirement of the City in its exercise of any such right
or power, heretofore or hereafter enacted or established.
(b) Neither the granting of this franchise nor any of the
provisions contained herein shall be construed to prevent the
City from granting any identical, or similar, franchise to any
person or corporation other than the Grantee.
Section 8. TIME OF PERFORMANCE. Installation of a Closed
Circuit System shall be commenced within two (2) years ,lfter
the effective date of this franchise, and extensions and service,
where practical, pursued with due diligence thereafter. Failure
to so commence and offer service shall be grounds for termination
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of this franchise.
Section 9. LOCATION OF FRANCHISE PROPERTIES. Franchise
property shall be constructed or installed in streets only at
such locations and in such manner as shall be approved by the
Superintendent of Streets, acting in the exercise of reasonable
discretion. Construction or installation of franchise prop-
erty in all other public places shall be subject to approval of
and regulation by the City Council.
Section 10. REMOVAL OR ABANDONMENT OF FRANCHISE P.ROPERTY.
(a) In the event that the use of any franchise property is
discontinued for any reason for a continuous period of twelve
(12) months or that franchise property has been installed in
any street without complying with the requirements of this fran-
chise, the Grantee shall promptly remove from the street all
such property other than any which the Street Superintendent
may permit to be abandoned in place. In the event of any such
removal, the Grantee shall promptly restore the street or other
area from which such property has been removed to a condition
satisfactory to the Superintendent of Streets.
(b) Franchise property to be abandoned in place shall be
abandoned in such manner as the Superintendent of Streets shall
prescribe. Upon permanent abandonment of any franchise prop-
erty in place, the Grantee shall submit to the Superintendent
of Streets an instrument, satisfactory to the City Attorney,
transferring to the City the ownership of such property.
Section 11. CHANGES REQUIRED BY PUBLIC IMPROVEMENTS.
The Grantee shall, at its expense, protect, support, temporarily
disconnect, relocate in the same street, alley, or public place,
or remove from any street, alley or public place, any franchise
property when required by the Superintendent of Streets, by rea-
son of traffic conditions, public safety, street vacati.on, free-
way and street construction, change or establishment of street
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grade, installation of sewers, drains, water pipes, powe:r lines
and tracks or any other type of structures or improvements by
governmental agencies when acting in a governmental or propri-
etary capacity, or any other structures or public improvements;
provided, however, that Grantee shall in all such cases have
the privileges and be subject to the obligation to abandon fran-
chise property in place, as provided in Section 10.
Section 12. FAILURE TO PERFORM STREET WORK. Upon failure
of the Grantee to complete any work required by law or by the
provisions of this franchise to be done in any street, within the
time prescribed and, to the satisfaction of the Superintendent
of Streets, the Superintendent of Streets .may cause such work to
be done and the Grantee shall pay to the City the cost thereof
in the itemized amounts reported by the Superintendent of Streets
to the grantee, within thirty (30) days after receipt of such
itemized report.
Section 13. FAITHFUL PERFORMANCE BOND.
(a) The Grantee shall, concurrently with the filing of an
acceptance of award of this franchise, file with the COtmcil, and
at all times thereafter maintain in full force and effect for the
term of this franchise at its expense, a corporate surety bond,
in a company approved by the chief administrative officer and
in a form satisfactory to the City Attorney, in duplic~lte, in
the amount of five thousand dollars ($5,000.00), renewable an-
nually, and conditioned upon the faithful performance of Grantee
and that in the event the Grantee shall fail to comply vlith any
one or more of the provisions of this franchise, then tllere shall
be recoverable jointly and severally from the principal and sure-
ty of such bond, any damages or loss suffered by the City as a
result thereof, including the full amount of any compensation,
indemnification, or cost of removal or abandonment of pl:operty
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as prescribed by this ordinance which may be in default, plus a
reasonable allowance for Attorneys fees and costs, up to the
full amount of the bond; said condition to be a continuing ob-
ligation for the duration of this franchise and thereafter un-
til the Grantee has liquidated all of its obligations wi.th the
City that may have arisen from the acceptance of this franchise
by the Grantee or from its exercise of any privilege herein
granted. The bond shall provide that thirty (30) days prior
wri.tten notice of intention not to renew, cancellation or mate-
rial change be given to the City.
(b) Neither the provisions of this section, any bond accept-
ed by the City pursuant there'to, nor any damages recovered by the
City thereunder shall be construed to excuse faithful perform-
ance by the Grantee or limit the liability of the Grantee under
this franchise or for damages, either to the full amoun1: of the
bond or otherwise.
Section 14. INDEMNIFICATION TO CITY.
(a) Grantee agrees that at all times during the existence
of this franchise it will maintain in force, furnish to the City a~/
and file with the Council, at its own expense, a general compre-
hensive liability insurance policy, in protection of Cilty, its
boards, commissions, officers. agents and employees. in a com-
pany approved by the Chief Administrative Officer and Ul form
satisfactory to the City Attorney. protecting the City and said
persons against liability for loss or damages for personal in-
jury. death and property damage occasioned by the opera;tions of
Grantee under this franchise. with minimum liability lbnits of
$500.000.00 for personal injury or death of anyone person and
$1.000.000.00 for personal injury or death of two or more per-
sons in anyone occurrence. and $50,000.00 for damage to property
resulting from anyone occurrence.
(b) The policies mentioned in the foregoing paragraph
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shall contain a provision that a written notice of any cancella-
tion or reduction in coverage of said policy shall be delivered
to the City ten (10) days in advance of the effective date there-
of. If such insurance is provided in either case by a policy
which also covers Grantee or any other entity or person than
those above named, then such policy shall contain the standard
cross-liability endorsement.
Section 15. lliSPECTION OF PROPERTY AND RECORDS. At all
reasonable times, the Grantee shall permit any duly-authorized
representative of the City to examine all franchise property,
together with any appurtenant property of the Grantee situated
within or without the City, and to examine and transcribe any
and all maps and other records kept or maintained by the Grantee
or under its control which treat of the operations, affairs,
transactions or property of the Grantee with respect thereto.
Grantee, shall, after reasonable request, furnish to the Street
Superintendent, copies of maps and records showing the e,xact
location of all Closed Circuit System equipment installe,d, or
in use, by Grantee, in streets, alleys and public places: of the
City.
Section 16. CONSTRUCTION. Grantee shall construct: and
maintain System in accordance with General Order No. 95 of the
Public Utilities Commission.
Section 17. RATES. The Grantee shall, within thirty (30)
days after the granting of this franchise file with the City
Clerk its rate schedules, setting forth the amounts of all rates
and charges presently made for all services to be rendeJ~ed by
it, which are covered by this franchise. Thereafter, Grantee
shall not increase its rate schedules without the consent of
the City Council.
Section 18. SEVERABILITY. If any section, subsection,
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sentence, clause or phrase of the ordinance is for any reason
held illegal, invalid, or unconstitutional, such invalidity
shall not affect the validity of the ordinance or any of the
remaining portions thereof. The invalidity of any portion of
this ordinance shall not abate, reduce or otherwise affect any
consideration or other obligation required of the Grantee by
this franchise.
I HEREBY CERTIFY that the foregoing Ordinance was duly
adopted by the Mayor and Common Council of the City of San Ber-
nardino at a /~!::>~( 4~/ meeting thereof, held on
the ,;"ry- L:?,?Zl day of1 ~---b<-~'-<f;J!"Cd:4f./ , 1961, by the following
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vote, to wit:
AYES: CouJ'cilmen L",,--d'e ';d-/~~<;;z.~;"'f:
~-c'~74,r /)}L~~' l' ;
NOES: /7.t 71..! -- ABSENT: ';;rZ-!--:FU-
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City Clerk
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The fo'regoing uri lance is hereby approved this,<7/..a.z:"day
of "'1:;;L--Jf.d-ntk.{/ , jl.
C"~.(, A - '#-.:<<<- '
'~~r 0 tei~ San Bernardino
Approved as to form:
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srt'Y ATTORNEY
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