§ 710.121. Application criteria, qualifications, procedure and costs.

(a)

The City shall award an initial franchise to an applicant only after a public proceeding on the application and information filed therewith, and the award shall be based on the satisfaction of the criteria contained herein. The City shall solicit applicants who will meet the highest standards of service and character. No franchise shall be awarded except upon a showing by the applicant of satisfaction of these criteria among others.

(b)

In accordance with FCC rules (47 CFR, 63.45 and 76.501), evidence must be presented assuring the City that the applicant is a United States citizen or corporation.

(c)

The applicant shall present character qualifications, as follows:

(1)

Applicants shall present evidence as to whether or not the applicant or any officer, director or principal has ever been convicted in a criminal proceeding where felonies or misdemeanors were charged.

(2)

Evidence shall be presented as to whether the applicant or any officer, director or principal has ever been a party to a civil proceeding in which it was held there were unfair or anticompetitive business practices; antitrust violations; violations of securities laws; or false or misleading advertising.

(3)

Evidence shall be presented as to whether applicant has ever had a business license (including FCC licenses) revoked.

(d)

The applicant shall file 12 copies of the application for the cable television franchise for the City with the Chief of Procurement during the time period designated by the City, which notice shall be published affording notice to all prospective applicants. The applications shall be reviewed by the City and the applicants afforded proper time during a public proceeding before the City to explain their application. The City may utilize consultants knowledgeable in the field of cable television for analysis of the applicants' proposals. Additionally, the City may utilize other expertise within the consolidated government for purposes of making recommendations. The Council shall, by resolution, endorse an applicant and authorize the City's entrance into a contract for the cable television franchise if the applicant satisfies the criteria established herein and the City determines that grant of application will serve the public convenience, safety and general welfare.

(e)

The applicant shall submit details of the applicant's financial background, subscriber rates, proposed system technical configuration and operational system description, construction timetable proposed to complete service to the initial service area, proposed administrative practices, and delineate the applicant's employment practices and policies. Existing Franchisees operating in the City are not required to provide the application described herein. The applicant shall present additional evidence to assist the City in evaluating the effect of an additional cable television operator. Such evidence shall include, but not limited to:

(1)

The extent of installation of facilities and equipment of existing cable operator(s) detailing the per-strand-mile density of areas served, unserved areas and the per-strand-mile density of such, and the location of the facilities of the existing operator(s).

(2)

The per-strand-mile densities of the areas the applicant proposes to serve and the extent to which the applicant intends to utilize bulk rate contracts.

(3)

The extent to which the applicant intends to overbuild existing cable operator(s).

(4)

The detailed economic and financial information and assumptions of the applicant.

(5)

The technical or physical limitations of rights-of-way, the frequency and extent of disruption of rights-of-way, and the potential conflicts with other rights-of-way users (including vehicular traffic).

(6)

The effects of competition in the cable industry, including the cost of duplication of facilities and equipment, services, personnel, etc., and the extent to which overbuilds have historically survived, and the potential for loss of or degradation of cable service to existing or potential subscribers.

(7)

The extent to which existing cable operator(s) are meeting the community needs and interests and the manner and extent to which the applicant proposes to meet community needs and interests.

(8)

The ability of the City to regulate multiple franchises, including the permitting processes of the City, the ability to readily locate and determine the owner of facilities and equipment, and the extent of conflicts of utility and cable installations.

(9)

Any other evidence pertinent to the City's evaluation of the application.

(f)

If applicant proposes to serve an area then served or planned to be served by another Franchisee, the application shall be submitted with proof of service of a copy of its application upon the incumbent Franchisees.

(g)

The City shall provide all existing Franchisees with an opportunity to submit objections or request for clarification and an application which affects such existing Franchisees and with an opportunity to be heard and to make presentations pertaining to such application.

(h)

In evaluating an application, the City shall consider the applicant's legal, financial, technical, and other qualifications, the adequacy of its proposed system, and shall balance pro-competitive impact of additional franchisees, with the continued ability of residents to obtain high quality cable services at the lowest economic price and the possible increased diversity of information with the:

(1)

Ability of the City to regulate multiple cable operators and services,

(2)

Disruption of public and private property by multiple cable operators,

(3)

Economic viability of cable operators so as to make available high-quality cable services to the greatest number of City residents at the lowest economically feasible price taking into consideration all existing competition, including OVS, SMATV and direct broadcast satellite providers.

(i)

Consideration will be given an installation plan that provides flexibility needed to adjust to new developments, establishes quality maintenance practices and provides marketable services that would be available to subscribers and the community immediately and in the future.

(j)

Consideration will be given to applicants with the most reasonable installation and subscriber rate schedule that is, at the same time, justified in the financial pro forma statements by use of realistic levels of penetration.

(k)

Consideration will be given to applicants presenting evidence of financial resources that assure initial service area within five years of receiving required FCC franchise approvals.

(l)

Consideration will be given to applicants that can give evidence of providing efficient, satisfactory and dependable services to other communities and a management background that gives evidence of excellent construction practices, ability to meet deadlines and good planning and marketing practices.

(m)

Applicants proposing services and technical standards exceeding the minimum required in this Chapter will be given added weight in the evaluation if these services and standards are guaranteed and are within the financial capability of the system as shown by a pro forma statement, and are also within the guidelines of acceptability as defined by FCC's description of extra service packages.

(n)

Each application shall be accompanied by a filing fee in the amount of fifteen thousand dollars. This fee shall be used to pay the cost of processing the application, including consultation fees, and the time and materials of City departments required for the processing. Any part of the filing fee which is not required to meet the cost of processing shall be returned pro rata to the applicant following the selection process. Each applicant shall be required, as a condition to the award of a franchise, to post with the City a construction bond, acceptable to the Office of General Counsel, or, in lieu thereof, cash in the full amount of the cost of construction, and such additional corporate guarantees as the City may require as surety for the faithful performance and discharge by it of all of its construction obligations. The bond shall remain in force and in effect until construction is completed and approved by the City.

(Ord. 2003-188-E, § 1)

Editor's note

Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.