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Watertown Charter Township Bringing Resources Together For a Community Focused on the Future |
ORDINANCE # 6:Cable Communications
WATERTOWN CHARTER TOWNSHIP
CABLE COMMUNICATIONS ORDINANCE
ORDINANCE NO. 6
An Ordinance to regulate cable communications service in Watertown Charter Township; to establish rules applicable between subscribers and cable communications companies for cable communications service; to require a franchise for cable communications service and to establish fees, conditions, requirements and procedures for obtaining a franchise; to provide for the establishment of rates for services and procedures to vary rates; to establish procedures and regulations relating to termination, revocation or surrender of franchises; to establish penalties for violation of this Ordinance.
THE CHARTER TOWNSHIP OF WATERTOWN ORDAINS:
Section 1. Short Title. This Ordinance shall be known as the “Watertown Charter Township Cable Communications Ordinance: and may be cited as such, and will be referred to herein as “this Cable Communications Ordinance.” Top
Section 2. Declaration of Purpose. The purpose of this Cable Communications Ordinance is to provide fair regulation of cable communications service in the Township of Watertown in the interest of the public; to promote and encourage adequate, economical and efficient cable communications service to the residents of the Township of Watertown; to promote and to encourage harmony between cable communications companies and their subscribers and to provide for the furnishing of cable communications service to the residents of Watertown Charter Township without unjust discrimination, undue preferences or advantages. Top
Section 3. Definitions. The following words, when used in this Cable Communications Ordinance, shall have the following meanings, unless otherwise clearly apparent from the context:
(a) The word “person” means and includes one (1) or more individuals, firms, corporations, associations, partnerships or organizations of any kind, and any combination thereof.
(b) The words “cable communications service” shall mean the business, in whole or in part, of receiving directly or indirectly over the air, and amplifying or otherwise modifying signals transmitting programs broadcast by one (1) or more signals, sound signals, pictures, visual images, digital signals, telemetry, or any other type of closed circuit transmission by means of electrical or light impulses, whether or not directed to originating signals or receiving signals off the air, and redistributing such signals by wire, cable or other means to members of the public located in the Township of Watertown who pay for such service.
(c) The words “cable communications system,” “cable system,” “cable television system,” “CATV,” or “system” shall mean a system of coaxial cables or other conductors, antennae, and other equipment used or to be used to originate or receive television or radio signals directly or indirectly off the air and to transmit them via cable to subscribers for a fixed or variable fee, including the origination, receipt, transmission, and distribution of voices, sound signals, pictures, visual images, digital signals, telemetry, or any other type of closed circuit transmission by means of electrical or light impulses, whether or not directed to originating signals or receiving signals off the air.
(d) The words “cable communications company” shall mean any person who owns, controls, operates or manages a cable communications system for the purpose of providing cable communications service to members of the public located in the Township of Watertown; except that such definition shall not include, (1) a telephone, telegraph, or electric utility in a case where it merely leases or rents to a cable communications company utility pole contact space for the placing thereon of wire or cable facilities used in the distribution of television or other signals to the subscribers of such cable communications company or (2) a telephone or telegraph utility regulated by the Michigan Public Service Commission or Federal Communications Commission in a case where it merely provides communication channel service under published tariffs to a cable communications subscribers of such company.
(e) The word “Board” shall mean the Township Board of Watertown Charter Township or its designee.
(f) The word “channel” shall mean a signaling path provided by the franchisee and the cable television system to relay to a subscriber terminal, television or radio broadcast programs that are received off the air or are obtained by microwave or direct connection to a television or radio broadcast station.
(g) The word “converter” shall mean an electronic device which converts signals to a frequency not susceptible to interference within the television receiver of a subscriber, and by an appropriate channel selector, also permits a subscriber to view all signals delivered at designated at designated dial locations.
(h) “FCC” shall mean the United States Federal Communications Commission.
(i) “Franchise” or “franchise agreement” shall mean an agreement by which a non-exclusive franchise is granted to the provisions of this Ordinance.
(j) “Franchisee” or “grantee” is the person or entity to whom a franchise agreement has been issued pursuant to the provisions of this Ordinance.
(k) “Subscriber” shall mean a person or organization whose premises are physically wired to receive any transmission from the system.
(l) “Subscriber service drop” shall mean each extension wiring from the franchisee’s distribution lines to a subscriber’s building.
(m) “Township” shall mean Watertown Charter Township and al the territory within its boundaries.
Section 4. Franchise Required.
(a) No person shall construct, install, maintain or operate a cable communications system in Watertown Charter Township nor shall any person provide a cable communications service or acquire ownership or control of a cable communications company in the township without such person having first obtained a franchise therefore from the Township in the form of a franchise agreement between the Township and the franchisee, which franchise agreement shall include, at a minimum, compliance with the specifications of this Cable Communications Ordinance.
(b) No person shall use, occupy or traverse the township streets, alleys, lanes, avenues, boulevards, other public place or public way of the Township or any extensions thereof or additions thereto, whether on, above or under the surface of the ground, for the purposes of installing, constructing, maintaining or operating a cable communications system or facilities therefore or for the purpose of furnishing a cable communications service without such person having first obtained a franchise therefore from the Township in the form of a franchise agreement between the Township and the franchisee, which franchise agreement shall include, at a minimum, compliance with all the specifications of this Ordinance.
(c) The specifications required by this Ordinance are minimum requirements of a franchise agreement. Additional requirements including, but not limited to, rates, charges, deposits, specifications regarding required interconnections, studios or other signal origination facilities, number of channels to be equipped and available for immediate use upon initial construction of the system, use of channels by the Township, schools, and other educational institutions, quality, community access, availability of equipment to users, required establishment and expansion of service area, other use of channels and other specifications or requirements of a cable communications franchise or system may be established in the franchise agreement.
Section 5. Franchise; Application; Contents; Fees; Issuance; Transfer.
(a) The application for such franchise to install, construct, maintain or operate a cable communications system in the Township or to furnish a cable communications service therein shall be made in writing to the Board in such form as may be prescribed; shall include a description and map of the territory within the Township in which the cable communications system is to be installed, constructed, maintained or operated or cable communications service to be provided; shall be accompanied by a showing of the applicant’s legal, financial, technical and other qualifications to be a franchise hereunder; shall contain:
(1) In establishing legal qualifications, if other than a single individual, a certified copy of the partnership agreement, articles of association, or articles of incorporation, as the case may be, and also, if a foreign corporation, a certified copy of its authorization to do business in the State of Michigan;
(2) In establishing financial qualifications, a copy of the applicant’s current balance sheet as of a date not more than sixty (60) days prior to the date of the application shall be furnished; if a loan or other credit arrangement is to be consummated to finance the establishment and operation of the proposed facilities, full particulars relative thereto shall be disclosed, including the identity of the creditor;
(3) In establishing technical qualifications, a statement of the arrangements to ensure the rendition of good service, including the type and kind of facilities to be employed, the technical standards to be followed, the maintenance and repair facilities to be used, the number and description of technical personnel, including copies of any contracts, agreements or arrangements relating to any of the above;
(4) A statement as to the location of the antenna site or sites and the location of any places of business in the Township;
(5) A statement as to any affiliated corporations or business organizations engaged in providing cable communications service, or interlocking directorships or ownerships held by any owners, officers or directors of the applicant with any other business engaged in providing cable communications service;
(6) A detailed statement as to the arrangements and timetable by which the applicant proposes to construct its cable communications facilities and system including detailed descriptions of portions of the Township to be served by the system within one year, eighteen months, two years, thirty months, and three years of the granting of a certificate of compliance by the Federal Communications Commission;
(7) The applicant shall furnish information as to the programming services and public services which it shall propose to provide:
(a) The off air signals to be carried initially
(b) The number of channels offered and the potential for diversified services to local government, educational institutions, community groups, households and local commercial interests
(c) Projected development of customer and community services, indicating priorities in development, and estimated time schedules thereof
(8) Cost estimates of development, installation and maintenance of the system which items shall be deemed to include, but not be limited to, the proposed cost of acquisition of the system where approval of a transfer of the franchise has been requested;
(9) Revenue forecasts for the first five years of service;
(10)A proposed schedule of rates for installation charges, monthly service fees and relocation charges;
(11)Such other information as the Township may request. The application shall be accompanied by a fee of One Thousand Dollars ($1,000), which fee shall be refunded if applicant is not granted a franchise.
(b) Upon the filing of such an application and the payment of the payment of the fee as prescribed, the Board shall consider the application and may request such additional information as it may deem necessary to establish the legal, financial, technical and other qualifications of the applicant to provide a cable communications service in the Township.
(c) If the Board determines that the applicant possesses the necessary qualifications, legal, financial, technical or otherwise, to reasonably assure applicant’s ability to satisfactorily install, construct or maintain or operate a cable communications system or to furnish a cable communications service to the public in the Township, the Board may issue applicant a nonexclusive franchise therefore in the Township provided that no franchise shall be issued:
(1) Until the franchise application has been on file and available for public inspection in the office of the Township Clerk at least thirty (30) days.
(2) Until the Board has, thereafter, held a public hearing on such application after due notice of the time and place of such hearing has been given to the public.
(d) In determining whether such a franchise shall be issued, the Board shall take into consideration, among other things, the technical qualifications of the applicant; the financial responsibility of the applicant; the ability of applicant to perform efficiently the service for which the franchise is requested, including the prior experience, if any, of the applicant in providing cable communications systems or furnishing cable communications service; the proposed rate schedule; the nature and scope of the applicant’s proposed system; the timetables for development of applicant’s proposed system.
(e) No franchise granted hereunder may be sold, transferred or assigned unless such transaction is first approved by the Board after receipt of a written application therefore containing the same information as to transferee as would be required of an original applicant. Prior approval of the Board shall be required where ownership or control of more than twenty-five percent (25%) of the right of control of the franchisee is acquired by a person or group of persons acting in concert, none of whom already own or control twenty-five percent (25%) or more of such right of control, singularly or collectively. No franchise granted hereunder may be sold, transferred or assigned nor may more than twenty-five (25%) of the right of control of franchise be transferred to a person or group of persons acting in concert, none of whom already own or control twenty-five percent (25%) or more of such right of control, singularly or collectively, until such sale, transfer or assignment of franchise or transfer of right of control shall first have been offered to the Township or to a person approved by the Township Board. Such offer shall be made at a price not greater than, and on terms equivalent to, that made to the offeror by a bona fide bidder for such franchise or right of control. The Township or the person approved by the Township Board shall accept or reject the offer within ninety (90) days. This provision shall not be deemed to restrict the transfer by request or descent of stock of the franchisee.
Section 6. Franchise; Nonexclusive; Term; Form.
Any franchise issued pursuant to this Cable Communications Ordinance shall be a nonexclusive franchise for a term of years, not to exceed fifteen (15) years, as the Board may approve and shall be issued in such form as shall be determined by the Board.
Section 7. Franchise; Fees; Reporting; Records.
(a) During the term of any franchise granted pursuant to this Cable Communications Ordinance, the person granted such franchise shall pay to the Township, for the use of its streets, public places, and other facilities, as well as the maintenance, improvements, and supervision thereof, and for the regulation activities required by virtue of the franchise, an annual franchise fee in an amount equal to three percent (3%) of the annual local gross subscriber revenues on a quarterly basis. Local gross subscriber revenues are those gross revenues of the franchisee from subscribers within the Township. Local gross subscriber revenues include installation fees, disconnect and reconnect fees, and fees for regular and special cable benefits, including, but not limited to, the transmission of broadcast signals and access and origination channels, all movie or special channels such as HBO, FM Service, etc., and future additional cable television service and channel capabilities, as acquired by the franchisee. Local gross subscriber revenues include local gross revenues from Pay TV, in excess of the fair market value royalty paid by franchisee therefore, and local leased channel revenues. To the extent that franchisee’s books of account do not reflect the source of any gross subscriber revenue, that portion of gross subscriber revenue allocable to the Township shall be based on the ratio of the number of subscribers in the Township to the number of subscribers outside the Township. Sales tax or other taxes levied directly on a per subscription basis and collected by franchisee shall be deducted from the local gross revenues before computations of the fee due the Township is made. The Township shall be furnished a statement with each payment, signed and certified as correct by the franchisee, and an annual statement for the entire year, prepared by a certified public accountant. All statements shall reflect the total amount of local gross subscriber revenues and the above charges, deductions and computations for the period covered by the statement.
(b) Such franchise fee shall be paid quarterly during the existence of the franchise on or before the end of each quarter, at the office of the Treasurer of the Township during regular business hours. If the Township Treasurer’s office is closed on said day, then payment may be made during regular business hours on the next following day on which the office is open for business.
(c) The Township shall have the right to inspect at all reasonable times the customer records of any person granted a franchise hereunder from which its franchise fee payments are computed and shall have the right of audit and recomputation of any and all franchise fees paid. NO acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the Township may have for further or additional sums payable as a franchise fee under this Cable Communications Ordinance or for the performance of any other obligation hereunder.
Section 8. Construction of Facilities; Right to use Streets; Restrictions; Disposal; Duties.
(a) A franchise granted pursuant to this Cable Communications Ordinance shall confer upon the grantee named therein the nonexclusive right to erect, install, construct, reconstruct, replace, remove, repair, maintain and operate in or upon, under, above and across the streets, avenues, highways, sidewalks, bridges and other public ways, easements, and rights-of-way, as existing as of the date of the grant of said franchise and all subsequent extensions thereof and additions thereto, in and belonging to the Township, all necessary towers, poles, wires, cables, coaxial cables, transformers, amplifiers, underground conduits, manholes, and other television and/or radio conductors, equipment and fixtures for the installation, construction, maintenance and operation of a cable communications system (including audio, video and radio signals) or the furnishing of a cable communications service.
(b) Prior to the erection or installation of any towers, poles, guys, anchors, underground conduits, manholes, or fixtures for use in connection with the installation, construction, maintenance or operation of a cable communications system under a franchise granted pursuant to this Cable Communications Ordinance, the grantee of a franchise hereunder desiring to erect or install such facilities for use in connection with its cable communications system shall first submit to the Board or Township Engineer of the Township for their/his review and approval, a concise description of the facilities proposed to be erected or installed, including engineering drawings, if requested or required, together with a map indicating the proposed location of such facilities. No erection or installation of any tower, pole, guy, anchor, underground conduit, manhole, or fixture for use in a cable communications system shall be commenced by any person until approval therefore has been received from the Board or Township Engineer, provided further, that such approval shall not be unreasonably withheld.
(c) Any person accepting a franchise pursuant to this Cable Communications Ordinance and erecting or installing towers or poles shall, upon written request by the Township, grant the Township reasonable attachment space or spaces upon such towers or poles without a rental charge for the attachment of wire or cable owned and used by the Township; provided, however, that the Township shall pay any costs incurred by such person in providing attachment space or spaces to said Township, including all necessary costs or rearrangement of such person’s wires, cables or equipment and tower or pole replacement cost for a larger tower or pole, if required.
(d) Upon the expiration, termination or revocation of any franchise granted pursuant to this Cable Communications Ordinance, or should any person wish otherwise to dispose of any tower or pole erected or installed for use in connection with a Township retains the first right and option to purchase in place such towers or poles as it may require or such portion of the system for the fair market value thereof, subject to the provisions of Section 13(e). The Township shall be under no obligation to purchase all or any part of the system upon obligation to purchase all or any part of the system upon expiration, termination or revocation for cause of any franchise granted pursuant to this Cable Communications Ordinance. Further, upon the expiration, termination or revocation for cause of any franchise granted pursuant to this Cable Communications Ordinance, should the Township determine that it does not desire to purchase the system or any part thereof, the franchisee shall have a period of six (6) months from the date of expiration, termination or revocation to remove its towers, poles, wires, cables, fixtures or other facilities form the streets, alleys, public rights-of-way or public places. Provided, however, that franchisee shall not disturb any underground conduit, manholes or other facilities constructed underground. At the expiration of such six month period, any property not removed by franchisee shall become the property of the Township to do with as it may choose. Any cost to the Township in removing said property from the streets, alleys, public rights-of-way or public places shall be claimed against franchisee under the performance bond required under Section 12 (a) of this Cable Communications Ordinance.
(e) In areas or portions of the Township where transmission or distribution facilities of public utilities providing telephone service and electrical service are underground, or may be placed underground when installed, any person granted a franchise pursuant to this Cable Communications Ordinance shall likewise install, construct, maintain and operate its transmission and distribution facilities in like manner underground to the maximum extent feasible and permitted by existing technology and conditions, subject to the approval of the Board or Township Engineer as hereinbefore provided in subsection (b) hereof.
(f) All construction, installation, maintenance and operation of any cable communications system or of any communications service or of any facilities employed in connection therewith shall be in compliance with the provisions of the National Electrical Safety Code as prepared by the National Bureau of Standards, the National Electrical Code of the National Board of Fire Underwriters, the Bell Telephone System’s Code of Pole Line Construction, any standards issued by the Federal Communications Commission or other federal or state regulatory agencies in relation thereto, and applicable regulations of public utilities operating in the Township. Every cable communications system or service installed, constructed, maintained or operated in the Township shall be so designed, constructed, maintained and operated as not to endanger or interfere with the safety of persons or property in the Township. The franchisee shall provide the Township with a map designating the location of cable television facilities; said map shall be available for public examination and shall be corrected annually by franchisee to show any extensions or changes in said facilities.
(g) Any opening or obstruction in, disturbance of or damage to the streets, alleys, public rights-of-way or public places by any person in the exercise of any right granted pursuant to this Cable Communications Ordinance shall be properly guarded by adequate barriers, lights, signals and warnings as to prevent danger to any person or vehicle using such streets, alleys, public rights-of-way or public places and shall be property and promptly repaired, all in a manner specified and approved by the Board or Township Engineer, at such person’s expense.
(h) Any person owning or maintaining a cable communications system or service or facilities therefore in or on the streets, alleys, public rights-of-way or public places in the Township shall, at its expense and without reimbursement from the Township, upon request of the Township, protect, support, temporarily disconnect, relocate or remove from the street, alley, public right-of-way or public place, any property of such person when required by reason of traffic conditions, public safety, street vacation, freeway or street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signal lines, tracks, the construction or change of the transmission or distribution facilities of any telephone or electric public utility or other public improvements. Any such person shall also, at the request of any private party holding an appropriate permit issued by the Township, temporarily raise or lower its cable communications transmission or distribution wires or cables to permit the moving of any building or other structure, provided that the actual expense of such temporary raising or lowering shall be paid in full by the party requesting the same. This Ordinance shall not be construed as to deprive the Township of any rights or privileges which it now has or may hereafter have to regulate the use and control of streets, public utilities, or other improvements within the Township.
(i) If any person shall fail to commence, pursue or complete any work required by law or by the provisions of the Cable Communications Ordinance as hereinbefore set forth to be done in any street, alley, public right-of-way or public place as designated by the Board or Engineer of the Township, the Board or Township Engineer may cause such work to be done and such person shall pay to the Township the cost thereof within thirty (30) days of the receipt of an itemized statement of such cost.
Section 8a or 9: Cable Television Access to Private Property
(a) No owner, agent or representative of the owner of any dwelling shall directly or indirectly prohibit any resident of such dwelling from receiving cable communication, installation, maintenance and services from a grantee operating under a valid franchise issued by the township. For purposes of this section, “dwelling” shall include, but not be limited to, buildings, apartments, townhouses, cooperatives, condominiums and mobile home parks.
(b) If the owner, agent or representative of the owner of any dwelling refuses directly or indirectly to permit any resident of such building from receiving cable television service, installation and maintenance from a grantee operating under a valid franchise issued by the township, the township, upon request of the grantee(s), may commence condemnation proceedings in accordance with applicable law. Neither the giving of notice, as described above, nor the assertion of a specific claim, nor the filing of a legal action to enforce such claim, shall delay or impair the right of the township to authorize grantee to proceed with construction, installation or repair of cable system facilities or for delivery of cable service to residents of the township. In the event a condemnation proceeding is commenced by the township, the township shall condemn only that space to be occupied by the grantee’s cable and related facilities. Subsequent to the completion of the acquisition of the premises, the township shall prepare and the owner shall execute an appropriate easement use agreement providing, among other things, for the exterior and interior use of the premise for all purposes necessary for franchisee(s) to provide service to the premise.
(c) The grantee(s) shall indemnify and hold harmless the township for all expenses and costs, including any actual legal fees incurred by the township, in the condemnation proceedings as well as for the full amount of the condemnation award made to the owner is such condemnation proceedings completed or otherwise settled.
(d) Neither the owner, agent nor representative of the owner of any dwelling shall penalize, charge or surcharge a tenant or resident or threaten to forfeit any right of such tenant or resident who requests or receives cable communication services from a company operating under a valid and existing cable communication franchise issued by the township.
Section 9. Standard of Service.
(e) Any cable communications company granted a franchise pursuant to the Cable Communications Ordinance shall install, construct, maintain and operate its cable communications system in accordance with the accepted standards of the industry, in conformity with the state of the art and any standards of operation or maintenance for a cable communications system which may be established or issued by the Federal Communications Commission. Further, it is the intention of the Board that any person granted a franchise to furnish a cable communications service to the public within the Township shall possess the financial and technical qualifications necessary to provide a cable communications system which will assure its subscribers high quality technical and public service.
(f) Every cable communications system franchised under the Cable Communications Ordinance shall be a two (2) cable system and each cable shall have at least two hundred forty (240) MHz of bandwidth (the equivalent of forty (40) television broadcast channels per cable) available for potential use for the totality of cable services to be offered. The system shall possess the capability for the reception and distribution of worldwide radio signals. Upon commencement of service, thirty-five (35) channels shall be available for immediate use upon initial construction of the system. If the Township determines based upon the public interest and the required criteria set forth in this Ordinance, to grant a franchise to a cable company which will be extending cable service into the Township from another municipality, and if the existing service fails to comply with this paragraph, the Township may waive compliance with the requirements of this paragraph provided, (a) that no less than 35 broadcast channels are provided, and (b) the franchisee agrees to install cable complying with this section immediately upon undertaking such action in any other municipality with which the Township system is inter-connected.
(g) Every cable communications system franchised under this Cable Communications Ordinance shall maintain bi-directional signal capacity for digital, audio and video signal transmission on all elements of the system.
(h) Every cable communications system franchised under this Cable Communications Ordinance, at a minimum, shall maintain and make available without charge, such public access channels, educations access channels and local government access channels as may be required by the franchise agreement, and by the rules and regulations of the Federal Communications Commission, including the expansion of such access channel capacity as may be required to fulfill the needs for such access channels pursuant to the rules and regulations of the Federal Communications Commission as may from time to time be in force and effect.
(i) Every cable communications system franchised under this Cable Communications Ordinance shall maintain such capacity, capability and technical standards as will enable it to interconnect with any other cable communications system located in any adjacent community. It is the intention of the Board to require that all access channels in the Lansing metropolitan area be interconnected to the cable communications system franchised under this Cable Communications Ordinance.
Section 10. Rates; Distribution; Filing Schedules; Maximum Rates; Increase in Rates; Procedures.
(a) No cable communications company shall make any unjust or unreasonable discrimination in rates, charges, classifications, promotions, practices, regulations, facilities or services for or in connection with like services, nor subject any person to any prejudice or disadvantage in any respect whatsoever; provided, however, that this shall not be deemed to prohibit the establishment of a graded scale of charges and classifications of rates to which any subscriber coming within such classification shall be entitled.
(b) No rate or charge for installation or basic cable communications service provided in the Township shall be effective, nor shall any cable communications company advertise, collect, or receive any rate or charge for its services, until it shall have filed a complete schedule of rates and charges with the Clerk of the Township and until such rates and charges shall have been approved by the Township Board. The charges made for services of the franchisee hereunder shall be fair and reasonable and no higher than necessary to meet all costs of the service (assuming efficient and economical management), and provide a fair return to the franchisee. The franchisee shall receive no consideration whatsoever for its service other than in accordance with this section or the franchisee agreement, without approval of the Board. The applicant for a franchise shall include in its application its proposed rates, charges and deposits.
(c) No cable communications company may increase any rate or charge for cable communication service, or alter any classification, contract, rule, regulation, or practice as to result in any increase in its schedule of rates or charges for such service without the prior approval of such increased rate or charge or alteration in its classification, contract, rule, regulation or practice by the Township Board after public hearing thereon. Such public hearing shall be noticed at least tem (10) days in advance in a newspaper of general circulation in the Township. At said public hearing the cable communications company shall set forth in detail the bases for its requested increase in rates or charges for service or alteration in its classification, contract, rule, regulation or practice, including the reasonableness and lawfulness thereof. In the determination of just, reasonable and lawful rates and charges the Board shall consider and give weight to all lawful elements properly to be considered, including expenses, a reasonable return on the cost of the property used in the service, depreciation, obsolescence, taxes, risks of the business and value of service to the customer. The Board shall render its decision with respect to any request by franchisee for a rate increase within ninety (90) days of the date of such request, unless franchisee shall stipulate in writing to an extension of the ninety (90) day period.
(d) Notwithstanding the provisions of Paragraphs (b) and (c) above, where the Township Board determines that it is in the public interest to grant a non-exclusive franchise to a cable communications company to extend service from a portion of the Lansing metropolitan area in to the Township, and where that company is not subject to rate regulation by any other municipality in the Lansing metropolitan area, the Township Board may grant a franchise to a cable communications company excluding the company from the provisions of Paragraphs (b) and (c) above.
(e) In no event, however, shall the rates exceed those which are being charged for the same category of cable service in the City of Lansing.
Section 11. Service; Provision to Township, Schools; Public Emergencies.
(a) Every cable communications company furnishing service within the Township shall, without charge for installation or service, provide one (1) installation of its cable communications service to each department of the township and each fire and police station in the Township and shall, without charge, provide cable communications service to each primary school, secondary school and public library within the franchisee’s current service area, provided, that such services provided without charge shall not be included in determining the number of subscribers in service for computation of the franchise fee as hereinbefore provided.
(b) Every cable communications company providing service within the Township shall make its cable system available, without charge, to the Township, the County of Clinton, the State of Michigan, the United State of America and/or emergency operations agencies for the prompt and simultaneous communication to subscribers and the public within the Township of any information resulting from or required by war, threat of war, natural catastrophe, riot or insurrection, necessary to save or protect life or property.
Section 12. Indemnity; Proof of Insurance; Effective Date of Franchise.
(a) Every cable communications company shall, within thirty (30) days of the grant of a franchise to it pursuant to this Cable Communications Ordinance, file with the Township Clerk and at all time thereafter maintain in full force and effect for the term of the franchise, at its expense, a corporate surety bond, or such other surety arrangement as the Board may approve in the amount of Twenty-Five Thousand Dollars ($25,000), conditioned upon the faithful performance by such cable communications company of its obligations under its franchise as herein set forth, and upon the further condition that if such cable communications company shall fail to comply with any one (1) or more provisions of this Cable Communications Ordinance, there shall be recoverable jointly and severally from the principle and surety of such bond any damages or loss suffered by the Township as a result thereof, including the full amount of any compensation, indemnification, or cost of removal of any property of such cable communications company as provided in this Cable Communications Ordinance plus attorney’s fees and costs, up to the full amount of the bond, said condition to be a continuing obligation for the duration of any franchise granted under this Cable Communications Ordinance and any renewal thereof and thereafter until such cable communications company has liquidated all of its obligations with the Township which may have arisen under the franchise or from the exercise of any privilege or right granted thereby. Any bond provided under this section shall provide that at least thirty (30) days prior notice of any intention not to renew, to cancel or to make a material change therein shall be construed to excuse faithful performance by any cable communications company or in any way to limit its liability for damages or otherwise. The bond required hereunder may be reduced in face amount to Fifteen Thousand Dollars ($15,000) at such time as franchisee is actively providing cable communications service to one thousand (1,000) or more subscribers within the Township of Watertown. Said reduction shall be deemed a “material change” in the bond.
(b) Any cable communications company within thirty (30) days of the grant of franchise pursuant to this Cable Communications Ordinance shall file with the Township Clerk in addition to the bond as hereinbefore set forth: (1) an indemnity agreement to indemnify, defend and save the Township harmless from and against any or all claims, suits, actions or liability for damages which may arise in any way from the grant of a franchise to such cable communications company, or its operations there under in the Township including all expenses incurred by Township in defending itself against any claim, action or suit; (2) proof of a general comprehensive liability insurance policy and an automobile liability insurance policy issued by companies licensed to do business in Michigan, protecting the Township, its officers, boards, commissions agents and employees against liability for loss or damage for personal injury, death and property damage, occasioned by the installation, construction, maintenance or operation of a cable communications system in the Township with minimum liability limits of Five Hundred Thousand Dollars ($500,000) for personal injury or death of any one (1) person and One Million Dollars ($1,000,000) for personal injury or death of two (2) or more persons in any one (1) occurrence, and Five Hundred Thousand Dollars ($500,000) for the damages to property resulting from any one (1) occurrence and said policy shall contain a provision that a written notice of cancellation, or material change or reduction in coverage, shall be given the Township Clerk at least thirty (30) day sin advance of the effective date thereof; and (3) proof of adequate insurance as required by the Michigan Workers’ compensation law applicable to it.
(c) No franchise hereunder shall be effective until the provisions of subsections (a) and (b) above have been fully complied with and failure to file with the Township Clerk within thirty (30) days after grant of a franchise, the bond, indemnity agreement, proof of general comprehensive liability insurance policy, proof of automobile liability insurance policy and proof of adequate workers’ compensation insurance, or any of them as required by subsections (a) and (b) above shall render the franchise null and void without notice or further proceedings.
Section 13. Termination; Revocation or Surrender of Franchise.
(a) Any franchise granted pursuant to this Cable Communications Ordinance shall expire without further proceedings one hundred twenty (120) days after its effective date, or if the issuance of a Certificate of Compliance by the FCC is required, within one hundred twenty (120) days of the issuance of such certificate in the event the person granted such franchise has not commenced construction of a cable communications system within such a period.
(b) If any person granted a franchise pursuant to this Cable Communications Ordinance shall fail to provide cable communications service within and throughout the franchise areas as required under the terms of its franchise agreement, said franchise shall, on the anniversary of the effective date of such franchise next following the twelve (12) month period during which cable communications service has not been extended as required under the terms of the franchise agreement, be deemed revoked without the necessity of Board action, unless prior to said date, such person shall have applied to the Board and the Board shall have, for good cause shown, granted an extension of the construction for service periods set forth in the franchise agreement.
(c) Any franchise granted pursuant to this Cable Communications Ordinance shall be terminated and cancelled without further proceedings one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business of a cable communications company, whether in receivership, reorganization, bankruptcy or other action or proceedings unless such receivership or trusteeship shall have been vacated prior tot eh expiration of such period; provided, however, that such receiver or trustee may apply for a transfer or assignment of such franchise, as hereinbefore provided in Section 5 (e) hereof, within sixty (60) days of the appointment of such receiver or trustee, if duly approved by the court having jurisdiction in the premises, and provided further, in case of a foreclosure or other judicial sale of the plant, property or facilities of a cable communications company, with or without the appointment of a receiver or trustee, including or excluding the franchise granted under this Cable Communications Ordinance, such franchise as granted will be terminated and cancelled without further proceedings upon thirty (30) days written notice of terminations served upon the cable communications company and the purchaser thereof, unless within such thirty (30) day period, the purchaser shall apply to the Township for a transfer or assignment to it of the same as hereinbefore provided in Section 5 (e) hereof.
(d) Any franchise granted pursuant to this Cable Communications Ordinance is revocable for cause by the Board prior to its expiration where the cable communications company has failed substantially to comply with any provision or requirement of this Cable Communications Ordinance or the provisions of its franchise agreement. The Board may give a written notice containing full particulars as to the provision or requirement with which compliance is claimed deficient and allow such cable communications company sixty (60) days to comply. At the expiration of such sixty (60) days, such franchise shall be deemed terminated and revoked, without further Board action, unless such cable communications company shall request a hearing before the Board upon its alleged failure to substantially comply with any provision or requirement of this Cable Communications Ordinance or of its franchise agreement. Said hearing shall be public with the cable communications company being permitted to fully participate therein including the right to introduce testimony and exhibits and to examine and cross examine witnesses. The hearing shall be recorded and at the conclusion thereof, the Board, if it finds that the cable communications company has not substantially complied with any provision or requirement of this Cable Communications Ordinance or its franchise agreement, may terminate and revoke the franchise.
(e) Any person granted a franchise pursuant to this Cable Communications Ordinance may surrender it by written notice of intent to surrender its franchise filed with the Township Clerk not less than sixty (60) days prior to the surrender date. On the surrender date specified in such notice, all rights, privileges and authority under said franchise shall terminate; provided, however, at the expiration of the term of this franchise or any renewal, or upon revocation thereof, or upon determination of bankruptcy of the grantee, if the Township does not renew or continue this franchise, the Township shall have the assignable right to acquire at “fair market value” the assets of the franchisee then used by the franchisee in providing the services herein contemplated. Immediately upon a determination of nonrenewal or termination, the franchisee and the Township shall attempt to mutually agree upon said valuation; but, if within a reasonable period they cannot agree upon the valuation, it shall be determined by a panel of appraisers, one each selected by franchisee and the Township and the third selected by the other two. The cost of such appraisal shall be borne equally by the Township and the franchisee. For purposes of this section, “fair market value” shall be determined by valuing grantee’s business as determined of franchisee’s various assets, no value shall be assigned to the franchise granted hereunder. Within sixty (60) days after valuation has been established, the Township shall give the grantee written notice of its intent to either:
(1) reconsider denial of the grantee’s request for renewal, extension or continuation, or
(2) exercise the right established in 13 (e) above and concurrently advise the grantee of a closing place and date, not more than one (1) year after expiration, renewal or revocation of this franchise, at which place and time the grantee shall deliver to the Township or is designee good and clear title of all of its assets, both tangible and intangible, and its property, both personal and real, free from all liens and encumbrances, except those liabilities, if any, which the Township elects to assume and thereby deduct from the valuation to determine the net transfer price, and the Township or its designee shall make payment of the net purchase price at mutually agreed upon terms, or
(3) if the Township does not grant renewal or elect to acquire the franchise at fair market value, the franchisee shall have a period of six (6) months to remove its towers, poles, wires, cables, fixtures or other facilities from the streets, alleys, public rights-of-way or public places, subject to the rights of the Township as set forth in Section 8 (d) above. At the expiration of such six (6) month period, any property not removed by such person shall become the property of the Township to do with as it may choose. Any cost to the Township in removing said property from the streets, alleys, public rights-of-way or public places shall be claimed against such person under the performance bond required under Section 12 (a) of this Cable Communications Ordinance.
Section 14. Commencement and Completion of Construction.
(a) Any person granted a franchise pursuant to this Cable Communications Ordinance shall commence construction or installation of its cable communications system within one hundred-twenty (120) days after the franchise is granted, or if the issuance of a Certificate of Compliance by the FCC is required, within one-hundred twenty (120) days of the issuance of such certificate.
(b) Any person granted a franchise pursuant to the Cable Communications Ordinance shall, within such period as designated in the franchise agreement, complete construction in the area designated in the franchise agreement. Any person granted a franchise pursuant to the Cable Communications Ordinance who is unable to construct according to the provisions of this section for “good cause” shall notify the Board in writing within thirty (30) days of the occurrence of any delay or interruption of construction of more than fifteen (15) working days duration which interruption or delay would affect its inability to construct according to schedule.
(c) The franchisee shall provide service to all parts of the designated areas which have fifty homes per mile or greater density. Provided, however, that within such one-hundred twenty (120) days, the area served shall contain not less than fifty percent of the population of the township. Any person granted a franchise pursuant to this chapter shall extend service within a reasonable period of time to all areas within the township which can be reached by system extension to areas containing forty homes per mile or greater density, and the township board will not designate for construction any areas with lesser density than forty homes per mile as measured in new cable miles necessary for construction from the nearest point of the existing system.
(d) For those residents of the township who live in areas which have an average density less than forty dwelling units per cable mile, as set forth in the above, a cost contribution method of obtaining cable television service is provided. In response to interest demonstrated by potential subscribers, the cable television company in cooperation with the township may survey an area to determine the extent of interest. The cable television company may then design an extension and estimate costs of construction and maintenance over a five-year period. The cost contribution to be allocated to each interested subscriber is determined as follows:
1. The total construction cost and five-year maintenance cost shall be determined;
2. The standard cost per home shall be determined dividing the total from (d) above by forty, being the standard minimum density of subsection (1)
3. The cable television company’s contribution to the cost of the extension shall be determined by multiplying the standard cost by the number of homes passed by the extension;
4. The difference between the total costs (1) and the cable television company’s contribution is the resident’s contribution;
5. The amount to be paid by each interested resident shall be determined by dividing the resident’s contribution from (4) above by the number of persons wanting service in the extended area.
(e) Each interested prospective subscriber shall pay the individual amount as determined above to the cable television company, which individual payment will be held in escrow until such time as all interested residents have made their contribution, after which the cable television company agrees to commence construction as soon as reasonably possible. The monthly charge for cable service in the extended area shall be the same as elsewhere in the system.
(f) If any resident in this extended area who did not participate by initial resident contribution wants to become a subscriber within the first two years after service is commenced in the extended area, such resident must make a proportionate contribution to the original construction cost and this new contribution will then be divided equally among the original contributors. At the end of two years following the commencement of service to the extended area, all new subscribers in the extended area will then be provided cable television service under the same terms as all the residents of the township.
Section 15. Hearing and Determination of Complaints; Procedure; Local Office.
(a) The Board, or any person or department designated by it, shall, upon its own motion or upon complaint of any person or subscriber of a cable communications company, have authority to hear and determine all complaints concerning the rates, charges, rules, regulations, practices, quality of service rendered or furnished, or any other matter relating to the service or operation of the cable communications system or any person franchised under the terms of this chapter.
(b) Upon the filing of any complaint against any person pursuant to the preceding subsection, the Board or its designated representative shall give such person at least twenty (20) days notice of the time and place of a hearing to be given such person upon the matters alleged in the complaint. The Board shall have the power to order such changes in the rates, charges, rules, regulations, services, equipment or other matters relating to the service or operation of the cable communications company as in its judgment, based upon the record of the hearing and findings of fact made thereon, appear to be just, reasonable and lawful.
(c) Every person granted a franchise pursuant to this Cable Communications Ordinance shall have a business office located in or within two (2) miles of the Township suitably staffed for the purpose, among others, of receiving and investigating complaints, dealing with its subscribers, receiving payment for service and otherwise conducting business, unless otherwise provided in the franchise agreement.
Section 16. Priority of Use. Any right or privilege granted to any person under this Cable Communications Ordinance to use or occupy any street, alley, public right-of-way or public place shall be subordinate to any prior lawful occupancy of such property. Nothing in this Cable Communications Ordinance shall be construed as limiting in any way the Township in the lawful exercise of the police power, and the grant of a franchise to any person as provided in this Cable Communications Ordinance shall confer no right, privilege or exemption not specifically presented herein.
Section 17. Surrender of Other Franchises. By the applications for and acceptance of a franchise pursuant to this Cable Communications Ordinance, a cable communications company agrees that upon subsequent additions of areas to the Township, either by annexation, consolidation or otherwise, any and all franchises and/or licenses held by it to provide a cable communications service or to install, construct, maintain or operate a cable communications system in such areas shall be surrendered and any rights or privileges in streets, alleys, public rights-of-way or public places to install, construct, maintain or operate a cable communications system or to furnish a cable communications service in such areas as may subsequently be added to the Township by annexation, consolidation or otherwise, shall thereafter be subject to and authorized by this Cable Communications Ordinance.
Section 18. Reports. Every cable communications company shall file annually with the Board or Township Engineer, a current map showing the exact location of the transmission and distribution facilities and equipment in the Township used by it in providing cable communications service and further shall prepare and furnish the Township on written request therefore, at such time and in such form as may be prescribed, such reports as to its operations, finances, the facilities and activities as may be reasonably necessary to enable the Township to perform its obligations, functions and duties under this Cable Communications Ordinance.
Section 19. Rights of Township. Any franchise granted under this Cable Communications Ordinance is made subject to all applicable provisions of law relating to the Township and ordinances thereof, and specifically subject to the rights and powers of the township and limitations upon the cable communications company holding such franchise as are set forth in the statutes of the State of Michigan pertaining to charter townships, which are herein incorporated by reference, and such cable communications company shall abide by and be bound by said rights, powers and limitations, and any franchise granted under this Cable Communications Ordinance constitutes and shall be considered as a public utility franchise and a cable communications company shall be deemed to be a public utility.
Section 20. Cable Communications Commission.
(a) The Board may establish a commission to be known as the Watertown Charter Township Cable Communications Commission. The Board shall solicit from the public and from the franchisee names of persons interested in serving on the Commission, but is not limited to names thereby submitted.
(b) The Commission shall consist of five (5) residents of the Township appointed by the Board. Each member shall serve a term of three (3) years; provided, however, that appointments to the first Commission shall be for such terms as follows: two (2) members for a term of three (3) years; two (2) members for a term of two (2) years; and one (1) member for a term of one (1) year. Any vacancy in the office shall be filled by the Board for the remainder of the term. No employee or person with ownership interest in a cable television franchise granted pursuant to this Ordinance shall be eligible for membership on the Commission. Members of the Commission may be compensated at a rate to be determined by the Board. Such rate of compensation, if any, shall be established and may be revised, from time to time by resolution of the Board.
(c) The Commission, in addition to the functions and responsibilities that the Board may delegate to it from time to time by resolution, shall have the following functions:
(1) Discuss this Ordinance and the franchises there under with prospective franchise applicants.
(2) Advise the Board on applications for franchises.
(3) Advise the Board on matters which might constitute grounds for revocation of a franchise under this Ordinance.
(4) Recommend to the Board, after hearing, resolutions of disputes between franchisees, between franchisee(s) and subscribers, between franchisee(s) and access users, and between access users.
(5) Advise the Board on the regulation of rates under this ordinance and make recommendations on requested changes in rates, services or classifications.
(6) Recommend to the Board general policy relating to access channels with a view to maximizing the diversity of programs and services to subscribers.
(7) Encourage the use of access channels by institutions, groups and individuals within the Township.
(8) Encourage and supervise the interconnection of systems.
(9) Review and report to the Board concerning records and reports which the franchisee is required to submit under this Ordinance.
(10) The Commission shall annually prepare a budget and, prior to adopting same shall conduct a public hearing thereon. The Commission shall also prepare an annual report to the Township Board including an accounting of budgeted fees received and distributed by the Commission and a report of the type and amount of use of access channels.
(11) Conduct evaluations of the system at least every three years and make recommendations to the Township Board regarding amendments to this Ordinance or to the franchise agreement.
Section 21. Miscellaneous Provisions.
(a) Any person granted a franchise pursuant to this Cable Communications Ordinance shall have no recourse whatsoever against the Township, its officers, boards, commissions, agents or employees for any loss, costs, expense or damage arising out of any provision or requirement of this Cable Communications Ordinance or the enforcements thereof.
(b) Section headings as set forth in this Cable Communications Ordinance are for convenience only and shall not be a part of this Cable Communications Ordinance nor be used to construe any provision hereof more broadly or narrowly than its text would indicate.
Section 22. Penalties. Any person violating any of the provisions of this Cable Communications Ordinance shall, upon conviction thereof, be punished by a fine of not more than Five Hundred Dollars ($500), or by imprisonment for a period of not more than ninety (90) days, or both fine and imprisonment.
Section 23. Injunctive Relief. Notwithstanding the existence of any criminal remedy as hereinbefore provided, any cable communications system or cable communications service in violation of any provisions of this Ordinance shall constitute a nuisance per se, and the Township shall be empowered to seek injunctive relief in a court of appropriate jurisdiction to enjoin such violation and abate such nuisance.
Section 24. Effective Date. This Ordinance shall become effective thirty (30) days after publication subsequent to final adoption.
At a regular meeting of the Township Board of the Watertown Charter Township, Clinton County, Michigan, held at the Township Hall in said Township of the 9th day of August, 1982, at 7:30 o’ clock p.m.
PRESENT: Wm. Vaughn Montgomery, Mildred F. McDonough, Thomas Lowell, Donald Lowell, Forest Shipman, Dan Gorman, Jack Fox.
ABSENT: None
The following Resolution was offered by Donald Lowell and seconded by Jack Fox.
BE IT FURTHER RESOLVED BY THE TOWNSHIP BOARD OF THE Charter Township of Watertown, Clinton County, Michigan, AS FOLLOWS:
WHEREAS, the Township Board of Watertown Charter Township has been petitioned by citizens of the Township to permit the installation of cable television service in the Township; and
WHEREAS, the Township Board has reviewed that request by its citizens and explored various alternatives to permitting and regulating cable television systems in the Township; and
WHEREAS, the Township Board of Watertown Charter Township has determined that the public health, safety and welfare of the citizens of Watertown Charter Township will be best served through the adoption of an ordinance permitting the establishment of cable television service in the Township and providing for the regulation thereof; and
WHEREAS, the Township Board of Watertown Charter Township has directed, and the Township Clerk has posted, a notice of its intent to adopt a Cable Communications Ordinance as attached hereto; and
WHEREAS, the Township Clerk has published and posted the proposed Cable Communications Ordinance pursuant to the requirements of the Statutes of the State of Michigan,
NOW, THEREFORE, BE IT RESOLVED BY THE TOWNSHIP BOARD OF WATERTOWN CHARTER TOWNSHIP AS FOLLOWS:
1. That a need exists for the passage of a Watertown Charter Township cable communications ordinance.
2. That the Township Board of Watertown Charter Township hereby adopts Ordinance No. 6 , to be known as the Watertown Charter Township Cable Communications Ordinance, said Ordinance being attached hereto.
3. That the Township Clerk be directed to publish, in a newspaper of general circulation in the Township, a notice stating the purpose of the attached Ordinance and the location of the posting of said ordinance as required by law and shall thereupon make copies of the Ordinance available to the public at the office of the Township Clerk.
4. That the Township Clerk be directed to file a copy of the Cable Communications Ordinance with the County Clerk subsequent to final adoption and publication.
5. That the Cable Communications Ordinance be effective thirty (30) days subsequent to final adoption and publication.
ADOPTED:
YEAS: seven (7)
NAYS: none (0)
STATE OF MICHIGAN)
: SS.:
COUNTY OF CLINTON)
I, the undersigned, the duly qualified and acting Township Clerk for the Charter Township of Watertown, Clinton County, Michigan, DO HEREBY CERTIFY that the foregoing is a true and complete copy of certain proceedings taken by the Township Board of said Township at a regular meeting held on the 9th day of August, 1982.
_____________________________
Mildred McDonough, Clerk