Chapter 18.20
CATV FRANCHISES

Sections:

18.20.010    Definitions.

18.20.020    Interpretation when grantee operates exclusively through telephone facilities.

18.20.030    Franchise – Granting.

18.20.040    Uses authorized and permitted by franchise.

18.20.050    Franchise – Duration.

18.20.060    Franchise – Payments by grantee.

18.20.070    Franchise – Limitations and conditions of issuance.

18.20.080    Rights reserved to City.

18.20.090    Time of performance.

18.20.100    Property of grantee – Location.

18.20.110    Property of grantee – Removal and abandonment.

18.20.120    Property of grantee – Changes required by public improvements.

18.20.130    Failure of grantee to perform street work.

18.20.140    Faithful performance bond required.

18.20.150    Indemnification of City.

18.20.160    Inspection of property and records.

18.20.170    Operational standards.

18.20.180    Miscellaneous provisions.

18.20.190    Joint use of utility poles and facilities.

18.20.200    Franchise – Application requirements.

18.20.210    Franchise – Renewal.

18.20.220    Franchise – Acceptance and effective date.

18.20.230    Violation – Penalty.

18.20.010 Definitions.

For the purposes of this chapter, the following terms, phrases, words, abbreviations, and their derivations shall have the meanings given in this section. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number and words in the singular number include the plural number.

A. “CATV” means a community antenna television system as defined in subsection C of this section.

B. “City” means the City of Sausalito.

C. “Community antenna television system” means a system of antenna, coaxial cables, wires, wave guides, or other conductors, equipment or facilities designed, constructed or used for the purpose of providing television or FM radio service by cable or through its facilities as herein contemplated. “CATV” shall not mean or include the transmission of any special program or event for which a separate and distinct charge is made to the subscriber in the manner commonly known and referred to as “pay television.”

D. “Council” means the legislative body of the City.

E. “Franchise” means and includes any authorization granted under this chapter in terms of franchise, privilege, permit, license or otherwise to construct, operate and maintain a CATV system in the City. Any such authorization, in whatever term granted, shall not mean and include any license or permit required for the privilege of transacting and carrying on a business within the City in accordance with City business license regulations.

F. “Grantee” means the person, firm or corporation to whom or which a franchise, as defined in subsection E of this section, is granted by the Council under this chapter, and the lawful successor, transferree or assignee of the person, firm or corporation.

G. “Gross annual receipts” means any and all compensation and other consideration in any form whatever and any contributing grant or subsidy received directly or indirectly by a grantee from subscribers or users in payment for television or FM radio signals or service received within the City including any installation and line extension charges received from subscribers or users. “Gross annual receipts” shall not include any taxes on services furnished by the grantee imposed directly on any subscribers or users by any City, State or other governmental unit and collected by the grantee for such governmental unit.

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

I. “Street” means the surface of and the space above and below any public street, road, highway, freeway, land, path, alley, court, sidewalk, parkway, or drive, now or hereafter existing as such within the City.

J. “Subscriber” means any person or entity receiving for any purpose the CATV service of a grantee. [Ord. 659 § 1, 1966.]

18.20.020 Interpretation when grantee operates exclusively through telephone facilities.

When and in the event that the grantee of any franchise granted under this chapter constructs, operates and maintains a CATV system exclusively through telephone company facilities constructed, operated and maintained pursuant to a State-granted telephone franchise and offers satisfactory proof that in no event during the life of such franchise shall the grantee make any use of the streets independently of such telephone company facilities, the grantee shall be required to comply with all of the provisions hereof as a “licensee” and in such event whenever the term “grantee” is used herein it shall be deemed to mean and include “licensee.” [Ord. 659 § 2, 1966.]

18.20.030 Franchise – Granting.

A nonexclusive franchise to construct, operate and maintain a CATV system within all or any portion of the City may be granted by the Council to any person, firm or corporation, whether operating under an existing franchise or not, who or which offers to furnish and provide such system under and pursuant to the terms and provisions of this chapter.

No provision of this chapter may be deemed or construed to require the granting of a franchise when in the opinion of the Council it is in the public interest to restrict the number of grantees to one or more. [Ord. 659 § 3, 1966.]

18.20.040 Uses authorized and permitted by franchise.

Any franchise granted pursuant to the provisions of this chapter shall authorize and permit the grantee to engage in the business of operating and providing a CATV system in the City, and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain and retain in, under, upon, across and along any public street, such wires, cable, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments, and other property as may be necessary and appurtenant to the CATV 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 grantee franchised or permitted to do business in the City.

No franchise granted under this chapter shall be construed as a franchise, permit or license to transmit any special program or event for which a separate and distinct charge is made to the subscriber in the manner commonly known and referred to as “pay television,” and no grantee shall directly or indirectly install, maintain or operate on any television set a coin box or any other device or means for collection of money for individual programs.

The grantee may make a charge to subscribers for installation or connection to its CATV system and a fixed monthly charge as filed and approved as provided in this chapter. No increase in the rates and charges to subscribers, as set forth in the schedule filed and approved with grantee’s application, may be made without the prior approval of the Council expressed by resolution. [Ord. 659 § 4, 1966.]

18.20.050 Franchise – Duration.

A. No franchise granted by the Council under this chapter shall be for a term longer than 15 years following the date of acceptance of such franchise by the grantee or the renewal thereof.

B. Any such franchise granted under this chapter may be terminated prior to its date of expiration by the Council in the event that the Council shall have found, after 30 days’ notice of any proposed termination and public hearing, that:

1. The grantee has failed to comply with any provision of this chapter, or has, by act or omission, violated any term or condition of any franchise or permit issued under this chapter; or

2. Any provision of this chapter has become invalid or unenforceable and the Council further finds that such provision constitutes a consideration material to the grant of such franchise; or

3. The City acquires the CATV system property of the grantee. [Ord. 659 § 5, 1966.]

18.20.060 Franchise – Payments by grantee.

A. Effective July 1, 1974, any grantee granted a franchise under this chapter shall pay to the City, during the life of such franchise, a sum equal to three percent of the gross annual receipts of the grantee. Such payment by the grantee to the City shall be made annually, or as otherwise provided in the grantee’s franchise, by delivery of the same to the City, and shall be in lieu of any occupation tax, business license tax or similar levy.

B. The grantee shall file with the City, within 60 days after the expiration of any calendar year or portion thereof during which such franchise is in force, a financial statement prepared by a certified public accountant, or person otherwise satisfactory to the Council, showing in detail the gross annual receipts, as defined in SMC 18.20.010, of grantee during the preceding calendar year or portion thereof. It shall be the duty of the grantee to pay to the City, within 15 days after the time for filing such statements, the sum hereinabove prescribed or any unpaid balance thereof for the calendar year or portion thereof covered by such statements.

C. The City shall have the right to inspect the grantee’s records showing the gross receipts from which its franchise payments are computed and the right of audit and recomputation of any and all amounts paid under this chapter. 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 chapter or for the performance of any other obligation under this chapter.

D. In the event of any holding over after expiration or other termination of any franchise granted under this chapter, without the consent of the City, the grantee shall pay to the City reasonable compensation and damages of not less than 20 percent of its total gross profits during the period. [Ord. 884 § 1, 1975; Ord. 659 § 6, 1966.]

18.20.070 Franchise – Limitations and conditions of issuance.

A. Any franchise granted under this chapter shall be nonexclusive.

B. No privilege of exemption shall be granted or conferred by any franchise granted under this chapter except those specifically prescribed herein.

C. Any privilege claimed under any such franchise by the grantee in any street or other public property shall be subordinate to any prior lawful occupancy of the streets or other public property.

D. Any such franchise shall be a privilege to be held in personal trust by the original grantee. It cannot in any event be sold, transferred, leased, assigned, or disposed of, in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, consolidation, sale of corporate stock constituting controlling interest, or otherwise, without the prior consent of the Council expressed by resolution, and then only under such conditions as may therein be prescribed. Any such transfer or assignment shall be made only by an instrument in writing, a duly executed copy of which shall be filed in the office of the City Manager within 15 days after any such transfer or assignment. The consent of the Council may not be arbitrarily refused; provided, however, the proposed assignee must show financial responsibility and must agree to comply with all provisions of this chapter; and provided further, that no such consent shall be required for a transfer in trust, mortgage or other hypothecation as a whole, to secure an indebtedness.

E. Time shall be of the essence of any such franchise granted under this chapter. The grantee shall not be relieved of his obligation to comply promptly with any of the provisions of this chapter or by any failure of the City to enforce prompt compliance.

F. The grantee shall have no recourse whatsoever against the City, its officers, employees or agents for any loss, cost, expense, or damage arising out of any provision or requirement of this chapter or of any franchise issued under this chapter or because of its enforcement.

G. The grantee shall be subject to all requirements of City ordinances, rules, regulations and specifications heretofore or hereafter enacted or established.

H. Any such franchise granted shall not relieve the grantee of any obligation involved in obtaining pole space from any department of the City, utility company, or from others maintaining poles in streets.

I. Any franchise granted under this chapter shall be in lieu of any and all other rights, privileges, powers, immunities, and authorities owned, possessed, controlled, or exercisable by grantee, or any successor to any interest of grantee, of or pertaining to the construction, operation, or maintenance of any CATV system in the City; and the acceptance of any franchise under this chapter shall operate, as between grantee and the City, as an abandonment of any and all of such rights, privileges, powers, immunities, and authorities within the City, to the effect that, as between grantee and the City, any and all construction, operation and maintenance by any grantee of any CATV system in the City shall be, and shall be deemed and construed in all instances and respects to be, under and pursuant to such franchise, and not under or pursuant to any other right, privilege, power, immunity, or authority whatsoever. [Ord. 659 § 7, 1966.]

18.20.080 Rights reserved to City.

A. Nothing in this chapter shall be deemed or construed to impair or affect, in any way, to any extent, the right of the City to acquire the property of the grantee, either by purchase or through the exercise of the right of eminent domain, at a fair and just value, which shall not include any amount for the franchise itself or for any of the rights or privileges granted, and nothing contained in this chapter shall be construed to contract away or to modify or abridge, either for a term or in perpetuity, the City’s right of eminent domain.

B. There is reserved to the City every right and power which is required to be herein reserved or provided by any ordinance of the City, and the grantee, by its acceptance of any franchise, agrees to be bound thereby and to comply with any action or requirements of the City in its exercise of such rights or power, heretofore or hereafter enacted or established.

C. Neither the granting of any franchise under this chapter nor any of the provisions contained in this chapter shall be construed to prevent the City from granting any identical or similar franchise to any other person, firm or corporation, within all or any portion of the City.

D. There is reserved to the City the power to amend any section or part of this chapter so as to require additional or greater standards of construction, operation, maintenance, or otherwise, on the part of the grantee.

E. Neither the granting of any franchise nor any provision of this chapter shall constitute a waiver or bar to the exercise of any governmental right or power of the City.

F. The Council may do all things which are necessary and convenient in the exercise of its jurisdiction under this chapter and may determine any question of fact which may arise during the existence of any franchise granted under this chapter. The City Manager is authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of any grantee under this chapter, either on behalf of the City, the grantee, or any subscriber, in the best interest of the public. Either the grantee or any member of the public who may be dissatisfied with the decision of the City Manager may appeal the matter to the Council for hearing and determination. The Council may accept, reject or modify the decision of the City Manager, and the Council may adjust, settle or compromise any controversy or cancel any charge arising from the operations of any grantee or from any provision of this chapter. [Ord. 659 § 8, 1966.]

18.20.090 Time of performance.

Installation of a CATV system shall be commenced within 120 days after any franchise is granted under the provisions of this chapter and shall be completed with due diligence thereafter. Failure to so commence and diligently pursue to completion shall be grounds for termination of the franchise. The Council may extend the time for beginning the installation for additional periods in the event the grantee, acting in good faith, experiences delays by reason of circumstances beyond his control. [Ord. 659 § 9, 1966.]

18.20.100 Property of grantee – Location.

A. Any poles, wires, cable lines, conduits or other properties of the grantee to be constructed or installed in streets shall be so constructed or installed only at such locations and in such manner as shall be approved by the City Engineer acting in the exercise of his reasonable discretion. The City Engineer shall act within 30 calendar days after application is made by grantee.

B. The grantee shall not repair, install or erect any facilities or apparatus on public property or public rights-of-way within the City without first obtaining written approval of the City Engineer in advance. In cases of emergency requiring immediate repairs to maintain service or to maintain public safety, the grantee may perform such work without first obtaining such written approval. The grantee shall make all reasonable efforts to obtain the written approval of the City Engineer before making such emergency repairs, and shall file a written application to make permanent repairs at the earliest practical time. The grantee shall thereafter comply with any requirements which may be imposed by the City Engineer in connection with the complete repairs.

C. All transmission and distribution facilities shall be placed underground by the licensee unless permission is granted by the City Council for aboveground facilities. Overhead or surface facilities may be approved by the City Council only where hardship can be shown or where circumstances prevent or make an underground installation impracticable. Amplifiers in grantee’s transmission and distribution lines may be in appropriate housing upon the surface of the ground as approved by the City Council. [Ord. 659 § 10, 1966.]

18.20.110 Property of grantee – Removal and abandonment.

A. In the event that the use of any part of the CATV 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 grantee’s franchise or this chapter, or the franchise has been terminated, cancelled or has expired, the grantee shall promptly, upon being given 30 days’ notice, remove from the streets or public places all such property and poles of such system other than any which the City Engineer may permit to be abandoned in place. In the event of 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 City Engineer.

B. Any property of the grantee remaining in place 60 days after the termination or expiration of the franchise shall be considered permanently abandoned. The City Engineer may extend such time not to exceed an additional 30 days.

C. Any property of the grantee to be abandoned in place shall be abandoned in such manner as the City Engineer shall prescribe. Upon permanent abandonment of the property of the grantee in place, the property shall become that of the City, and the grantee shall submit to the City Engineer an instrument in writing, to be approved by the City Attorney, transferring to the City the ownership of such property. [Ord. 659 § 11, 1966.]

18.20.120 Property of grantee – Changes required by public improvements.

The grantee shall, at its expense, protect, support, temporarily disconnect, relocate in the same street or other public place, or remove from the street or other public place any property of the grantee when required by the City Engineer by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signal lines, and tracks or any other type of structures or improvements by public agencies; provided, however, that the grantee shall in all such cases have the privileges and be subject to the obligations to abandon any property of the grantee in place, as provided in SMC 18.20.110. [Ord. 659 § 12, 1966.]

18.20.130 Failure of grantee to perform street work.

Upon failure of the grantee to commence, pursue or complete any work required by law or by the provisions of this chapter or by its franchise to be done in any street or other public place, within the time prescribed, and to the satisfaction of the City Engineer, the City Engineer may, at his option, cause such work to be done and the grantee shall pay to the City the cost thereof in the itemized amounts reported by the City Engineer to the grantee within 30 days after receipt of such itemized report. [Ord. 659 § 13, 1966.]

18.20.140 Faithful performance bond required.

A. The grantee shall, concurrently with the filing of and acceptance of award of any franchise granted under this chapter, file with the City Clerk, and at all times thereafter maintain in full force and effect for the term of such franchise or any renewal thereof, at grantee’s sole expense, a corporate surety bond, in a company and in a form approved by the City Attorney, in the amount to be determined by the City Council at the time of award of franchise, but in any event not less than $2,500 and not more than $25,000, renewable annually, and conditioned upon the faithful performance of grantee, and upon the further condition that in the event grantee shall fail to comply with any one or more of the provisions of this chapter, or of any franchise issued to the grantee under this chapter, there shall be recoverable jointly and severally from the principal and surety 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 any property of the grantee as prescribed hereby which may be in default, plus a reasonable allowance for attorneys’ fees and costs, up to the full amount of the bond; the condition to be a continuing obligation for the duration of such franchise and any renewal thereof and thereafter until the grantee has liquidated all of its obligations with the City that may have arisen from the acceptance of the franchise or renewal by the grantee or from its exercise of any privilege therein granted. The bond shall provide that 60 days’ prior written notice of intention not to renew, cancellation, or material change be given to the City.

B. Neither the provisions of this section, nor any bond accepted by the City pursuant hereto, nor any damages recovered by the City thereunder, shall be construed to excuse faithful performance by the grantee or limit the liability of the grantee under any franchise issued under this chapter or for damages, either to the full amount of the bond or otherwise. [Ord. 659 § 14, 1966.]

18.20.150 Indemnification of City.

A. The grantee shall, concurrently with the filing of an acceptance of award of any franchise granted under this chapter, furnish to the City and file with the City Clerk, and at all times during the existence of any franchise granted under this chapter 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, in a company approved by the City Manager and a form satisfactory to the City Attorney, protecting the City and all persons against liability for loss or damage for personal injury, death and property damages, occasioned by the operations of grantee under such franchise with minimum liability limits of $300,000 for personal injury or death of any one person and $500,000 for personal injury or death of two or more persons in any one occurrence, and $50,000 for damage to property resulting from any one occurrence.

B. The policies mentioned in subsection A of this section shall name the City, its officers, boards, commissions, agents and employees as additional insured and shall contain a provision that a written notice of cancellation or reduction in coverage of the 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 grantee or any other entity or person other than those above-named, then such policy shall contain the standard cross-liability endorsement. [Ord. 659 § 15, 1966.]

18.20.160 Inspection of property and records.

A. At all reasonable times, the grantee shall permit any duly authorized representative of the City to examine all property of the grantee, 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 deal with the operations, affairs, transactions or property of the grantee with respect to its franchise. If any such maps or records are not kept in the City, or upon reasonable request made available in the City, and if the Council shall determine that an examination thereof is necessary or appropriate, then all travel and maintenance expense necessarily incurred in making such examination shall be paid by the grantee.

B. The grantee shall prepare and furnish to the City Manager, at the times and in the form prescribed, such reports with respect to its operations, affairs, transactions or property as may be reasonably necessary or appropriate to the performance of any of the rights, functions or duties of the City or any of its officers in connection with the franchise.

C. The grantee shall at all times make and keep in the City full and complete plans and records showing the exact location of all CATV system equipment installed or in use in streets and other public places in the City.

D. The grantee shall file with the City Engineer on or before the last day in October of each year, a current map or set of maps drawn to scale, showing all CATV system equipment installed and in place in streets and other public places of the City. [Ord. 659 § 16, 1966.]

18.20.170 Operational standards.

The CATV system shall be installed and maintained in accordance with the highest and best accepted standards of the industry to the effect that subscribers shall receive the highest possible service. In determining the satisfactory extent of such standards the following among others shall be considered:

A. That the system be installed using all band equipment capable of passing the entire VHF and FM spectrum, and that it have the further capability of converting UHF for distribution to subscribers on the VHF band;

B. That the system, as installed, be capable of passing standard color TV signals without the introduction of material degradation on color fidelity and intelligence;

C. That the system and all equipment be designed and rated for 24-hour-per-day continuous operation;

D. That the system provides a nominal signal level of 2,000 microvolts at the input terminals of each TV receiver;

E. That the system signal-to-noise ratio is not less than 40 decibels;

F. That hum modulation of the picture signal is less than five percent;

G. That the system use components having a VSWR of 1.4 or less. Methods of measuring above standards will be established by the City Council where necessary;

H. The master antenna to be installed for the CATV system shall be located at a point where the signal strength of the TV and FM stations to be received shall not be less than 500 microvolts per meter for low-band channels (two through six) and not less than 800 microvolts for high band channels (seven through 13) for at least 50 percent of the time at a receiving antenna height of 30 feet aboveground. Each CATV subscriber shall receive a minimum signal strength of 2,000 microvolts across 300 OHMS as measured at the antenna terminals of the television set and 100 microvolts at the terminals of the FM set. [Ord. 659 § 17, 1966.]

18.20.180 Miscellaneous provisions.

A. When not otherwise prescribed in this chapter, all matters required to be filed with the City shall be filed with the City Clerk.

B. The grantee shall pay to the City a sum of money sufficient to reimburse it for all publications and their expenses incurred by it in connection with the granting of a franchise pursuant to the provisions of this chapter. Such payment shall be made within 30 days after the City furnishes the grantee with a written statement of such expenses.

C. The grantee shall maintain an office within the City limits or at a location which subscribers may call without incurring added message or toll charges so that CATV maintenance service shall be promptly available to subscribers upon telephone request between the hours of 8:00 a.m. and 6:00 p.m.

D. No person, firm or corporation in the existing service area of the grantee shall be arbitrarily refused service; provided, however, that the grantee shall not be required to provide service to any subscriber who does not pay the applicable connection fee or monthly service charge.

E. If the licensee shall fail to operate its system for a period of two years from the date such service begins to a subscriber, the subscriber, if he has paid installation charges, shall be entitled to a refund of the installation charges paid, less one-twenty-fourth of such charge for each month elapsing from the time service was first started to that particular subscriber and during which time service was available to him.

F. Within the City the grantee shall not engage directly or indirectly in the business of selling television or other receivers which make use of signals transmitted by its system, nor shall the grantee engage in the repair of such receivers or the sale of parts for the same. If the grantee is a corporation, partnership, or other association of natural persons, this prohibition shall likewise apply to the officers and directors of the grantee, to the general and limited partner of any partnership grantee, and to any person or combination of persons who own, hold or control more than five percent of the corporate stock or other evidence of ownership of the grantee, and shall likewise apply to any affiliated or subsidiary corporation owned or controlled by the grantee or by its officers, directors, or stockholders, and shall likewise apply to any corporation or entity which acts in the capacity of a holding company or controlling company of the grantee.

G. In no event shall the grantee deliver programs by its CATV system in a manner or under circumstances which constitute an infringement of any copyright. [Ord. 659 § 18, 1966.]

18.20.190 Joint use of utility poles and facilities.

A. When any portion of the CATV system is to be installed on public utility poles and facilities, certified copies of the agreements for such joint use of poles and facilities shall be filed with the City Manager.

B. No public utility shall permit any person or entity to use its poles and facilities in connection with a CATV system unless and until it has received written notice from the City stating that such person or entity has a franchise duly issued pursuant to this chapter, and that such person or entity has complied with all of the terms of this chapter, the franchise, and the resolution of the City Council granting such franchise. [Ord. 659 § 19, 1966.]

18.20.200 Franchise – Application requirements.

A. Application for a franchise under this chapter shall be in writing, shall be filed with the City Clerk, and shall contain the following information:

1. The name and address of the applicant. If the applicant is a partnership, the name and address of each partner shall also be set forth. If the applicant is a corporation, the application shall also state the names and addresses of its directors, main officers, major stockholders and associates, and the names and addresses of parent and subsidiary companies;

2. A statement and description of the CATV system proposed to be constructed, installed, maintained or operated by the applicant; the proposed location of such system and its various components; the manner in which applicant proposes to construct, install, maintain and operate the same; and, particularly, the extent and manner in which existing or future poles or other facilities of other public utilities will be used for such system;

3. An adequate description of the public streets, public places and proposed public streets within which applicant proposes or seeks authority to construct, install or maintain any CATV equipment or facilities; an adequate description of the equipment or facilities proposed to be constructed, installed or maintained therein, and the proposed location thereof;

4. A map specifically showing and delineating the proposed service area or areas within which applicant proposes to provide CATV services and for which a franchise is requested;

5. A statement or schedule in a form approved by the City Manager of proposed rates and charges to subscribers for installation and services, and a copy of the proposed service agreement between the grantee and its subscribers, shall accompany the application. For remote, relatively inaccessible subscribers within the City, service may be made available on the basis of cost of materials, labor, and easements if required by the grantee; provided, however, that the reasonableness of such costs shall be subject to review by the City Manager pursuant to SMC 18.20.080(F);

6. A copy of any contract, if existing, between the applicant and any public utility providing for the use of facilities of such public utility, such as poles, lines, or conduits;

7. A statement setting forth all agreements and understandings, whether written, oral or implied, existing between the applicant and any person, firm or corporation with respect to the proposed franchise or the proposed CATV operation. If a franchise is granted to a person, firm or corporation posing as a front or as the representative of another person, firm or corporation, and such information is not disclosed in the original application, such franchise shall be deemed void and of no force and effect whatsoever;

8. A financial statement prepared by a certified public accountant, or person otherwise satisfactory to the Council, showing applicant’s financial status and his financial ability to complete the construction and installation of the proposed CATV system;

9. The Council may at any time demand, and applicant shall provide, such supplementary, additional or other information as the Council may deem reasonably necessary to determine whether the requested franchise should be granted.

B. Upon consideration of any such application, the Council may refuse to grant the requested franchise or the Council may by ordinance grant a franchise for a CATV system to any such applicant as may appear from the application to be in its opinion best qualified to render proper and efficient CATV service to television viewers and subscribers in the City. The Council’s decision in the matter shall be final. If favorably considered, the application submitted shall constitute and form part of the franchise as granted.

C. Any franchise granted pursuant to this chapter shall include the following condition:

The CATV system herein franchised shall be used and operated solely and exclusively for the purpose expressly authorized by Ordinance of the City of Sausalito and no other purpose whatsoever.

Inclusion of the foregoing statement in any such franchise shall not be deemed to limit the authority of the City to include any other reasonable condition, limitation or restriction which it may deem necessary to impose in connection with such franchise pursuant to the authority conferred by this chapter. [Ord. 659 § 20, 1966.]

18.20.210 Franchise – Renewal.

Any franchise granted under this chapter is renewable at the option of the City Council upon the application of the grantee, in the same manner and upon the same terms and conditions as required in this chapter for obtaining the original franchise, except those which are by their terms expressly inapplicable; provided, however, that the Council may at its option waive compliance with any or all of the requirements of SMC 18.20.200. [Ord. 659 § 21, 1966.]

18.20.220 Franchise – Acceptance and effective date.

A. No franchise granted pursuant to the provisions of this chapter shall become effective unless and until the ordinance granting same has become effective and, in addition, unless and until all things required in this section and SMC 18.20.140 and 18.20.150 are done and completed, all of such things being hereby declared to be conditions precedent to the effectiveness of any such franchise granted hereunder. In the event any of such things are not done and completed in the time and manner required, the Council may declare the franchise null and void.

B. Within 20 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 grantee shall file with the City Clerk his written acceptance, in form satisfactory to the City Attorney, of the franchise, together with the bond and insurance policies required by SMC 18.20.140 and 18.20.150, respectively, and his agreement to be bound by and to comply with and to do all things required of him by the provisions of this chapter and the franchise. Such acceptance and agreement shall be acknowledged by the grantee before a notary public, and shall in form and content be satisfactory to and approved by the City Attorney. [Ord. 659 § 22, 1966.]

18.20.230 Violation – Penalty.

A. From and after the effective date of the ordinance codified in this chapter, it is unlawful for any person to establish, operate or to carry on the business of distributing to any persons in this City any television signals or radio signals by means of a CATV system unless a franchise therefor has first been obtained pursuant to the provisions of this chapter, and unless such franchise is in full force and effect; provided, however, that this restriction shall not apply to the holder of any similar franchise previously granted by the City so long as such franchise is in full force and effect.

B. From and after the effective date of the ordinance codified in this chapter, it is unlawful for any person to construct, install or maintain within any privately owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the City any equipment or facilities for distributing any television signals or radio signals through a CATV system, unless a franchise authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this chapter, and unless such franchise is in full force and effect; provided, however, that this restriction shall not apply to the holder of any similar franchise previously granted by the City so long as such franchise is in full force and effect.

C. It is unlawful for any person, firm or corporation to make any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a franchised CATV system within the City for the purpose of taking or receiving television signals, radio signals, pictures, programs, or sound.

D. It is unlawful for any person, without the consent of the owner, to wilfully tamper with, remove or injure any cables, wires or equipment used for distribution of signals, radio signals, pictures, programs, or sound.

E. Any person who violates any provision of this chapter shall be guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500.00, or by imprisonment for a term not exceeding six months, or by both such fine and imprisonment. [Ord. 659 § 23, 1966.]