§ 5-10.04. Franchises: Applications: Granting: Denial.

(a)

Applications: Soliciting. The Council may, by advertisement or any other means, solicit and call for applications for cable television system franchises and may determine and fix any date upon or after which such applications shall be received by the City, or the date before which such applications shall be received, or the date after which such applications shall not be received, and may make any other determinations and specify in any other times, terms, conditions, or limitations respecting the soliciting, calling for, making, and receiving of such applications.

(b)

Applications: Form: Fee. Each application for a franchise to construct, operate, or maintain any cable television system in the City shall be filed with the City Clerk and shall contain or be accompanied by the following:

(1)

The name, address, and telephone number of the applicant;

(2)

A detailed statement of the corporate or other business entity organization of the applicant, including, but not limited to, the following and to whatever extent required by the City:

(i)

The names and business addresses of all officers, directors, and associates of the applicant,

(ii)

The names and business addresses of all officers, persons, and entities having, controlling, or being entitled to have or control five (5%) percent or more of the ownership of the applicant firm and the respective ownership share of each such person or entity,

(iii)

The names and addresses of any parent or subsidiary of the applicant, namely, any other business entity owning or controlling the applicant firm in whole or in part, or owned or controlled in whole or in part by the applicant, and a statement describing the nature of any such parent or subsidiary and the areas served thereby,

(iv)

A detailed description of all previous experience of the applicant in providing cable television system service and in related or similar fields,

(v)

A detailed and complete financial statement of the applicant, prepared by a certified public accountant, for the fiscal year next preceding the date of the application, or a letter or other acceptable evidence in writing from a recognized lending institution or funding source, addressed to both the applicant and the Council, setting forth the basis for a study performed by such lending institution or funding source, and a clear statement of its intent as a lending institution or funding source to provide whatever capital shall be required by the applicant to construct and operate the proposed system in the City, or a statement from a certified public accountant certifying that the applicant has available sufficient free net and uncommitted cash resources to construct and operate the proposed system in the City, and

(vi)

A statement identifying by name, place, address, and telephone number any other cable television franchises awarded to the applicant or its parent or subsidiary;

(3)

A detailed description of the proposed plan of operation of the applicant which shall include, but not be limited to, the following:

(i)

A detailed map indicating all the areas proposed to be served and a proposed time schedule for the installation of all the equipment necessary to become operational throughout the entire area to be served,

(ii)

A statement or schedule setting forth all the proposed classifications of rates and charges to be made against the subscribers, and all the rates and charges as to each of such classifications, including the installation and service charges,

(iii)

A detailed, informative, and referenced statement describing the actual equipment and operational standards proposed by the applicant. In no event shall such operational and performance standards be less than those contained in Title 47, Subpart K (Sections 76.601 et seq.), Rules and Regulations, Federal Communications Commission, adopted February 2, 1972, and as amended,

(iv)

A copy of the form of any agreement, undertaking, or other instrument proposed to be entered into between the applicant and any subscriber, identifying the City of Simi Valley Environmental Services Department as the monitor of the franchise and explaining how customers can contact City staff in the event of problems which cannot be resolved by the grantee, and

(v)

A detailed statement setting forth in its entirety any and all agreements and undertakings, whether formal or informal, written, oral, or implied, or existing or proposed to exist between the applicant and any person, which agreements and undertakings materially relate to, materially pertain to, or materially depend upon the application and the granting of the franchise;

(4)

A copy of an existing agreement covering the franchise area between the applicant and any public utility subject to regulation by the Public Utilities Commission of the State providing for the use of any facilities of the public utility, including, but not limited to, poles, lines, or conduits;

(5)

Any other details, statements, information, or references pertinent to the subject matter of such application which shall be required or requested by the Council or by any provision of any other law of the City; and

(6)

For either a new franchise or a franchise renewal, costs to be borne by the applicant(s) shall include, but shall not be limited to, all costs of publication of notices prior to any public meeting provided for pursuant to an ordinance or franchise agreement, development and publication of relevant ordinances and franchise agreement, fees, and any costs not covered by the application fees, incurred by the City in its study, preparation of proposal solicitation documents, evaluation of all applications, including but not limited to consultant and attorney fees and City staff time. In the case of franchise renewals, an estimate of anticipated costs shall be submitted to the Grantee prior to the City's initiating the renewal review process. In the case of an application for a new franchise, the Environmental Services Director shall determine the sum of such actual costs upon the completion of the City's study, investigation, and application processing. Payment thereof shall be made within thirty (30) days after the City furnishes the franchise or renewal applicant with a written statement of such expenses.

(c)

Application: Processing. Upon the receipt of any application for a franchise or renewal, the Environmental Services Director shall prepare a report and make recommendations respecting such application to the Council within sixty (60) days.

(d)

Applications: Council consideration. In making any determination as to any application, the Council shall hold a duly noticed public hearing to give due consideration to the quality of the service proposed, initial rates to the subscribers, franchise fees to the City, experience, character, background, and financial responsibility of the applicant and its management and owners, technical and performance quality of the equipment, willingness and ability to meet the construction and physical requirements and to abide by policy conditions, franchise limitations and requirements, and any other considerations deemed pertinent by the Council for safeguarding the interests of the City and the public. The Council, at its discretion shall determine the award of any franchise on the basis of such considerations and without competitive bidding.

(e)

Granting or denial. If the Council shall determine that a franchise shall be denied, such determination shall be expressed by resolution and shall be final and conclusive, and the application shall be deemed rejected.

If the council shall determine that a franchise or renewal shall be granted, such determination shall be effective upon the adoption of a resolution granting or renewing a franchise to the applicant.

(f)

Franchise required. No cable communications system shall be allowed to occupy or use the City's rights-of-way without a franchise in accordance with the provisions of this chapter.

(§ 2, Ord. 719, eff. January 4, 1990)