City of Hudson, WI Cable Television

Under the authority of W.S.A. s. 66.30, relating to intergovernmental cooperation, the city is hereby authorized to enter into an agreement with the Village of North Hudson to provide for a Joint City of Hudson - Village of North Hudson Cable Television Board to exercise the powers and duties hereafter described. Until amended or otherwise superseded, the City of Hudson - Village of North Hudson Agreement dated August 8, 1981 (the "joint agreement"), shall constitute the initial Joint Board.

The City Clerk shall receive and distribute communications, including subscriber complaints, to the Board and shall provide the Board with office support, including secretarial assistance. The City Clerk's office shall be reimbursed for expenses incurred in providing services, and such reimbursement shall be from revenues received from franchise fees.

Powers and duties of Board.

[Amended by Ord. No. 22-83]

In addition to the powers set forth in § 114-12 and in addition to any powers set forth in any joint agreement as amended, the Board shall have the power to:

(a)

Resolve disputes or disagreements between subscribers and the grantee.

(b)

Review and audit reports submitted to the city under §§ 114-7 and 114-13.

(c)

Work with the public and the media to assure that all records, rules and charges pertinent to the cable television system in the city are made available for inspection at reasonable hours upon reasonable notice.

(d)

Confer with the grantee and advise on the interconnection of the city's cable system with other cable and communications systems via direct connection, microwave, lightwave or satellite.

(e)

Solicit, review and provide recommendations to the Council for selection of applicants for a franchise under the provisions of §§ 114-9 and 114-10.

(f)

Initiate inquiries, receive requests for review of rates charged by the grantee and provide recommendation on such actions to the Council or the Village Board.

(g)

Establish and administer sanctions as authorized by the Council or Village Board to ensure compliance with this chapter.

(h)

Perform such other duties as the Common Council or Village Board may assign to the Cable Television Board.

The findings and decisions of the Board shall be final, subject to written appeal to the respective Common Council or Village Board, which decision shall be final. The grantee shall have the right to appeal such decision to a court of competent jurisdiction.

Compliance with Open Meeting Law. The Board shall comply with the Wisconsin Open Meeting Law[1] and shall have the power to elect its own officers and to adopt its own bylaws.

Editor's Note: See W.S.A. ss. 19.81 through 19.98.

Weight of Board recommendations. The Common Council shall accept and approve the recommendations of the Board unless it finds that such recommendations are against the clear and convincing weight of the evidence presented. Such recommendations can be denied or approved by majority vote of the Common Council.

[Added by Ord. No. 22-83]

§ 114-4 Office of Cable Television.

Establishment of Office of Cable Television. There is hereby created an Office of Cable Television within the City Clerk's office for the purpose of exercising the city's continuing jurisdiction over any franchise granted the city.

Cable Television Officer. One city employee shall be assigned the responsibilities in Subsection C and shall be known as the "Cable Television Officer."

Responsibilities of Cable Television Officer. The Cable Television Officer shall be charged with the following:

To receive and investigate complaints or disputes between subscribers and the grantee.

After investigation of complaints or disputes, to submit written reports to the Joint Board for the issuance of findings or the scheduling of a hearing as provided by this chapter.

To review and audit reports, records and communications submitted to the city and village and review grantee regulatory compliance provisions of this chapter.

To work with the media and public to assure that all rates, charges and rules relating to the operation of the cable television system in the city and the village are made available for inspection by the public.

To confer with the grantee and coordinate the interconnections of the city and the village cable television systems with other similar networks and systems.

To attend all meetings of the Joint Cable Television Board.

To perform such other duties as the Common Council and Village Board and the Joint Cable Television Board may assign to the Cable Television Officer in order to facilitate the functions of the Cable Television Office and the Joint Cable Television Board.

Relationship to city departments. All departments of the city shall cooperate with the Cable Television Officer.

All city departments shall make available all such information relating to the cable television system as may be required by the Cable Television Officer.

The Cable Television Officer shall keep the city department heads informed on matters pertaining to the cable television system which affect or appear likely to affect their operation.

The City Attorney shall provide legal counsel to the Cable Television Officer and to the Joint Cable Television Board.

§ 114-5 Cable television franchise.

Franchise required. No person shall construct, install, maintain or operate within any public street in the city or within any other public property of the city any equipment or facilities for the distribution of television or radio signals or other intelligences, either analog or digital, over a cable television system or broadband telecommunications network to any subscriber unless a franchise authorizing the use of the streets or properties or areas has first been obtained pursuant to the provisions of this chapter and unless such franchise is in full force and effect.

Review of qualifications. Specific permission to operate a cable television system and broadband telecommunications network under the provisions of this chapter may be granted by the Common Council to any grantee after a review of the legal, character, financial and technical qualifications and the feasibility of the grantee's construction arrangements.

Duration of franchise. The franchise shall resume and continue in full force until expiration on December 1, 1999, unless sooner extended or renewed. The grantor shall have the right to purchase the Cable Television/Broadband Telecommunications Network as set forth in §§ 114-8H and 114-11D herein during this term.

[Amended by Ord. No. 17-98; Ord. No. 18-99; Ord. No. 20-99]

Quinquennial franchise review.

On or about the fifth and tenth anniversaries of the effective date of the franchise, the Joint Cable Television Board shall schedule a public meeting or meetings with the grantee to review the franchise performances, plans and prospects. The Joint Cable Television Board may require the grantee to make available specified records, documents, surveys and other information for this purpose and will compare the level and variety of services offered at that time in Hudson to those being generally offered at that time by franchised systems in comparable market situations.

The Joint City of Hudson - Village of North Hudson Cable Television Board shall first negotiate with the grantee regarding modifications in the franchise which might impose additional obligations on the grantee, and the grantee may, in turn, seek to negotiate relaxations in any requirements previously imposed on it which are subsequently shown to be impractical.

[Amended by Ord. No. 22-83]

Within 30 days after the conclusions of such negotiations, the city, upon recommendation of the Joint City of Hudson - Village of North Hudson Cable Television Board, may direct the grantee to show cause why specified terms and conditions should not be incorporated into the franchise, and the grantee may similarly file with the city a written request that specified obligations of its franchise be removed or relaxed. Implementations of such requests shall correspond as nearly as possible with the procedures set forth in § 114-12C. The Common Council will order changes in the franchised rights and obligations of the grantee only if it finds from all available evidence that such changes will not impair the economic viability of the system or the grantee's fair rate of return on its investment or degrade the performance or the attractiveness of the system's service to present and potential subscribers.

[Amended by Ord. No. 22-83]

Renewal or extension of franchise prior to expiration.

[Amended by Ord. No. 22-83]

Public meeting to be scheduled. The city may renew or extend the franchise at any time upon application by the grantee. At least 24 months prior to the expiration of the franchise, the Joint City of Hudson - Village of North Hudson Cable Television Board shall schedule a public meeting with the grantee to review the performance of the grantee. The Board may require the grantee to make available specified records, documents, surveys and other information for this purpose, and the Board shall compare the level of services offered in Hudson and North Hudson at that time to those being generally offered by franchise systems in comparable market areas. The Board shall present its written findings and recommendations to the Common Council and Village Board.

Determination of reissue. The Council, within 30 days after the receipt of the Board's recommendation and after public hearing, shall make a determination as to whether the franchise will be reissued. Nothing in this section shall be construed to require such renewal or extension. If the city determines not to reissue the franchise for reasons other than a material breach of the franchise, it shall be so stated for purposes of § 114-11D.

Expiration. In lieu of renewing or extending a franchise awarded pursuant to this chapter, the city may, upon expiration thereof, invite competitive proposals or may exercise its right to purchase under § 114-11D.

Special evaluation session. The Board shall have the right to schedule a special evaluation session upon a showing of reasonable cause during the period of the franchise pursuant to the procedures of Subsection D. The expenses for such special evaluation session shall be paid out of the franchise fee, unless such evaluation establishes noncompliance by the grantee with the terms of the franchise.

[Added by Ord. No. 22-83]

§ 114-6 Significance of franchise.

Franchise nonexclusive. Any franchise granted hereunder by the city shall not be exclusive and the city reserves the right to grant a similar franchise to any person at any time.

Franchise amendable.

The scope of any franchise granted hereunder shall be deemed amendable from time to time to allow the grantee to innovate and implement new services and developments; provided, however, that no such services or developments shall be implemented without the express approval of the Common Council, which shall not unreasonably be withheld.

[Amended by Ord. No. 22-83]

The city shall first confer with the grantee regarding amendments which might impose additional obligations on the grantee and to determine the financial impact to subscribers of each proposed amendment according to the city's own determination as well as from grantee-supplied data.

Within 30 days of the conclusion of the city's determination of such financial impact, the city shall publish a notice of a public hearing on the amendment(s) and the subscriber rate adjustments, if any, proposed by the city. Such hearing shall be held 30 days after publication of notice.

The Common Council will order the amendments to be incorporated into the franchise only with the express written consent of the grantee holding a franchise at the time of amendment and only if it finds from all available evidence that such changes will not impair the economic viability of the system or degrade the attractiveness of the system's service to present and potential subscribers.

[Amended by Ord. No. 22-83]

Privileges must be specified. No privilege or exemption shall be inferred from the granting of any franchise unless it is specifically prescribed. Nothing in this chapter shall be deemed to require the granting of a franchise when, in the opinion of the Council, it would not be in the public interest to do so.

Authority granted. Any franchise granted hereunder shall give to the grantee the right and privilege to construct, erect, operate, modify and maintain in, upon, along, above, over and under streets, as defined in § 114-2 herein, which have been or may hereafter be dedicated and open to public use in the city towers, antennas, poles, cables, electronic equipment and other network appurtenances necessary for the operation of a broadband telecommunications and cable television network, subject to the requirements of § 114-26 of this chapter.

Consent prior to transfer of franchise. Any franchise granted hereunder cannot be sold, transferred, leased, assigned or disposed of, in whole or in part, either by forced or voluntary sale, merger, consolidation, trust, receivership or any other means without prior consent of the city as expressed by a Common Council resolution. Such consent shall not be withheld by the city without showing of reasonable cause. Notwithstanding the foregoing, the grantee of any franchise granted hereunder shall be prohibited from selling or transferring the franchise prior to substantial completion of the system.

[Amended by Ord. No. 22-83]

Consent prior to change of control. Prior approval of the Common Council shall be required where ownership or control of more than 20% of the voting stock of the grantee is acquired by a person or group of persons acting in concert, none of whom already owns or controls 20% or more of such right of control, singly or collectively. Transfer from a subsidiary to a parent corporation or vice versa shall not be considered as a change of control. Prior approval of the Common Council shall also be required for all changes in ownership or control by a person or group of persons acting in concert who already own or control 20% or more of such right of control, singly or collectively. Such consent shall not be withheld by the Common Council without showing of reasonable cause.

[Amended by Ord. No. 22-83]

Mortgage or pledge of network. Nothing in this chapter shall be deemed to prohibit the mortgage or the pledge of the network or any part thereof. However, any such mortgage or pledge shall be subject to the right of the city under this franchise or applicable laws.

[Amended by Ord. No. 22-83]

Previous rights abandoned. A franchise granted hereunder shall be in lieu of any and all rights, privileges, powers, immunities and authorities owned, possessed, controlled or exercisable by a grantee or any successor pertaining to the construction, operation or maintenance of a cable television/broadband telecommunications network in the city. The acceptance of a franchise shall operate, as between the grantee and the city, as an abandonment of any and all of such rights, privileges, powers, immunities and authorities within the city. All construction, operation and maintenance by the grantee of any cable television/broadband telecommunications network in the city shall be under the franchise and not under any other right, privilege, power, immunity or authority.

Subject to other regulatory agencies' rules and regulations. The grantee shall, at all times during the life of any franchise granted hereunder, be subject to all lawful exercise of the police power of the city and other duly authorized regulatory state and federal bodies and shall comply with any and all ordinances which the city has adopted or shall adopt applying to the public generally and other grantees.

Compliance with laws, rules and regulations. If any valid law, rule or regulation of any governing authority or agency having jurisdiction, including but not limited to the Federal Communications Commission, contravenes or preempts provisions of this chapter, the provisions hereof shall be superseded by any such valid law, rule or regulation to the extent and for only the exact duration of time that the provisions hereof are in conflict and contrary to any such law, rules or regulation.

Pole use agreements required. Any franchise granted hereunder shall not relieve the grantee of any obligation involved in obtaining pole use or conduit use agreements from the gas, electric and telephone companies or others maintaining poles or conduits in the streets of the city whenever the grantee finds it necessary to make use of such poles or conduits.

No right of property. Anything contained herein to the contrary notwithstanding, the award of any franchise hereunder shall not impart to the grantee any right of property in or on city-owned property.

Franchise binding. Anything contained herein to the contrary notwithstanding, all provisions of this chapter and any franchise granted hereto shall be binding upon the grantee, its successors, lessees or assignees.

§ 114-7 Operation of franchise.

Operations to be in accordance with rules. The grantee shall maintain and operate its cable television/broadband telecommunications network in accordance with the rules and regulations of the Federal Communications Commission, state and city.

Interruption of service; notification. The grantee, whenever it is necessary to interrupt service for the purpose of network maintenance, alteration or repair, shall do so at such times as will cause the least amount of inconvenience to the subscribers and, unless such interruption is unforeseen, shall give reasonable notice to the affected subscribers.

Studios, office and phone for complaints. The grantee shall maintain an office and shall establish a production studio and public access production facilities within the city or village which shall be open during all normal business hours. The grantee shall have a listed local telephone number so that complaints and requests for repairs and services may be received during normal business hours.

[Amended by Ord. No. 22-83]

Service records maintained. The grantee shall maintain a list of all complaints and interruptions of service experienced during the term of the franchise. The records maintained shall include complaint response time and service restoral period and shall be open to inspection or audit by any duly authorized representative of the city.

Grantee rules and regulations. The grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonable and necessary to enable the grantee to exercise its rights and perform its obligations under this chapter and any franchise granted hereunder.

Rules to be in conformance with other regulations. None of such rules, regulations, terms and conditions promulgated under this Subsection E shall be in conflict with the provisions hereof or the laws of the state or the rules and regulations of the Federal Communications Commission or any rules and regulations promulgated by the city in the exercise of its regulatory authority granted hereunder.

All rules to be filed with city. Two copies of all rules, regulations, terms and conditions promulgated under this Subsection E, together with any amendments, additions or deletions thereto, shall be kept currently on file with the City Clerk, and another copy thereof shall be maintained for public inspection during normal business hours at the grantee's office in the city or village. No rules, regulations, terms, conditions or amendments, additions or deletions thereto shall take effect unless so filed and maintained.

Subscribers' antennas. Neither the grantee nor any person employed by the grantee shall require the removal of or offer to remove or provide any inducements for removal of any potential or existing subscriber's antenna as a condition of provision of service.

Sale or service of television receivers. Neither the grantee during the period of the franchise nor any of its affiliated, subsidiary or parent organizations, officers or directors or stockholders holding 5% or more of outstanding stock of the grantee shall, within the corporate limits of the city or within 10 miles in any direction, directly or indirectly, engage in the retail sale, renting, leasing or repairing of radio or television receivers, nor shall they require any subscriber to utilize the services or any specific television/radio service business for the repair or maintenance of the subscriber's receivers, either radio or television. Nothing in this subsection shall be deemed to prevent the grantee from repairing his own television monitors, test sets, video recorder/playback equipment, cameras and other cablecasting equipment, nor shall this subsection be construed to prevent the grantee from leasing and maintaining security equipment, such as decoders and decoder/converters, to subscribers who sign up for the extra pay cable services and any extra charge tiers of cable channels.

[Amended by Ord. No. 22-83]

Tenants' access. The owner or manager of rental property, whether an entire house or portion thereof, an apartment building, nursing or retirement home, condominium, hospital, mobile home park or any other multiple-dwelling facility, may require the grantee to agree to pay the property owner for any damages caused by the installation, operation or removal of cables and associated distribution equipment.

[Amended by Ord. No. 22-83]

Owner notification. The grantee shall notify the owner or manager of rental property and all entryway-listed occupants of its intent to install cables to provide service to one or more occupants and shall arrange to effectuate the installation in such a manner and during such hours as to minimize any disturbance to tenants and to the safety, appearance and functioning of the premises.

Subscriber protection. No property owner, manager, lessee, tenant or other person may request or accept payment in any form for permitting cable system access to his or her property or premises or discriminate in rental charges, conditions or otherwise between tenants who subscribe to cable services and those who do not.

§ 114-8 Rights reserved to city.

Right of amendment. The city and grantee, by mutual written consent, may, from time to time, add to, modify or delete provisions of this chapter as they shall deem necessary.

[Amended by Ord. No. 22-83]

No impairment of city's rights. Nothing herein 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 through the exercise of the right of eminent domain, at a fair and just value, and nothing shall be construed to contract away or to modify or abridge, either for a term or in perpetuity, the city's right to eminent domain. Notwithstanding the foregoing, this provision shall not be construed in any manner to give the city the right or option to purchase the franchise or system during the term of the franchise.

[Amended by Ord. No. 22-83]

Grantee agrees to city's rights. The city reserves every right and power which is required to be reserved or provided by an ordinance of the city, and the grantee, by its acceptance of the franchise, agrees to be bound thereby and to comply with any action or requirements of the city in its exercise of such powers which have been or will be enacted or established.

City's right of intervention. The city shall have the right to intervene as provided by law.

[Amended by Ord. No. 22-83]

Powers of the city. Neither the granting of any franchise nor any provision governing the franchise shall constitute a waiver or bar to the exercise of any governmental right or power of the city.

[Amended by Ord. No. 22-83]

City's transfer of functions. Any right or power in or duty imposed upon any elected official, officer, employee, department or board of the city shall be subject to transfer by the city to any other elected official, officer, employee department or board.

City's right of inspection. The city reserves the right, during the life of any franchise granted hereunder, to inspect and supervise all construction and installation work performed subject to the provisions of this chapter and to perform network measurements to ensure compliance with the terms of this chapter.

City's right of acquisition. Upon expiration of the franchise or revocation or termination as provided by law or upon receipt of application for approval of an assignment of the franchise or upon change of de facto control, the city shall have a right to purchase the cable television/broadband telecommunications network as set forth in § 114-11D, except for equipment or plant of the network whose ownership is shared by cable companies other than the grantee.

[Amended by Ord. No. 22-83]

City's right of network installation. The city reserves the right, during the life of any franchise granted hereunder, to install and maintain, free of charge, upon the poles or in the conduits of the grantee any wire and pole fixtures necessary for municipal networks for governmental purposes only on the condition that such installation and the maintenance thereof do not interfere with the operation of the grantee.

[Amended by Ord. No. 22-83]

§ 114-9 Applications for franchise.

Applications for a franchise to serve the village and the city shall be filed with the City Clerk's office and shall contain the following written information and provisions:

Form fee. Each applicant shall pay a nonrefundable form fee to the Board of $300, which shall be payable when the applicant requests the necessary application forms.

Name and address of applicant. The name and business address of the applicant, telephone number, date of application and signature of the applicant or appropriate corporate officer(s).

Description of proposed operation. A general description of the applicant's proposed operation, including but not limited to business hours, operating staff, maintenance beyond that required in this chapter, management and marketing staff complement and procedures and rules of operation for public access.

Signal carriage. A statement of the television and radio services to be provided, including off-the-air, interconnect, microwave relay, satellite relay pay television programming and locally originated signals; the proposed division of these channels into limited service, basic service and additional services; and which will be contained in each of the tiers or groups of services to be provided.

Special services. A statement setting forth a description of the automated and/or microprocessor services proposed, as well as a description of two-way or upstream services proposed and a description of production facilities to be made available by the grantee for the public and educational access channels required to be made available by provisions of this chapter and/or the Federal Communications Commission.

Programming assistance. A statement establishing any voluntary additional funding, facilities, equipment or personnel beyond those required elsewhere to be designated to effect and promote local programming development. It is understood that the foregoing will be made available to all on a fair and nondiscriminatory basis and may be used by the grantee as well. Such funding and services will be contingent upon a special showing, where required, that the proposed uses are consistent with the cable television regulatory program of the Federal Communications Commission.

Schedule of charges. A statement of the applicant's proposed schedule of charges as set forth by § 114-17 hereunder.

Corporate organization. A statement detailing the corporate organization of the applicant, if any, including the names, addresses and telephone numbers of its officers and directors and the number of shares held by each officer and director.

Stockholders. A statement identifying the number of authorized and outstanding shares of the applicant's stock, including a current list of the names, current addresses and phone numbers of each of its shareholders holding 5% or more of the applicant's outstanding stock.

Intracompany relationships. A statement describing all intracompany relationships of the applicant, including parent, subsidiary or affiliated companies.

Agreements and understandings. A statement setting forth all agreements and understandings, whether written or oral, existing between the applicant and any other person, firm, group or corporation with respect to any franchise awarded hereunder and the conduct of the operation thereof existing at the time of the proposal submittal.

Financial statement. If the applicant is an operating business or recently formed subsidiary of an operating business, audited financial statements for the two previous fiscal years of the business or parent organization, as applicable. If the applicant is a business with less than two years' operation, it shall submit a Dunn and Bradstreet Report. If the applicant is a sole proprietorship, is shall submit copies of the United States individual income tax return (IRS Form 1040) for the two previous fiscal years, along with a notarized statement detailing assets, liabilities and net worth of the applicant.

Financial projection. A ten-year operations pro forma which shall include the initial and continuing plant investment, annual profit and loss statements detailing income and expenses, annual balance sheets and annual levels of subscriber penetration. Costs and revenues anticipated, if any, for voluntary services shall, if presented, be incorporated in the pro forma as required in this chapter but shall be separately identified in the pro forma.

Financial support. Suitable written evidence from a recognized financing institution, addressed both to the applicant and to the city, advising that the applicant's financial ability and planned operation have been analyzed by the institution and that the financing institution is prepared to make the required funds available to the applicant if it is awarded a franchise. If the planned operation is to be internally financed, a Board resolution shall be supplied authorizing the obtainment and expenditure of such funds as are required to construct, install and operate the cable television/broadband telecommunications network contemplated hereunder.

Technical description. A technical description of the type of system proposed by the applicant, including but not limited to system configuration (i.e., hub, dual cable, shadow cable and trunk amplifier spacing), system channel capacity and two-way capability.

Technical statement. A statement from the applicant's senior technical staff member or consultant advising that the applicant's planned network and operations meet the requirements of this chapter and the technical standards and requirements of the Federal Communications Commission.

Existing franchises. A statement of existing franchises held by the applicant, indicating when the franchises were issued and when the systems were constructed and the present state and the system in each governmental unit, together with the name and address and phone number of a responsible governmental official knowledgeable of the applicant and of the system performance in each such case.

Convictions. A statement as to whether the applicant or any of its officers or holders of 5% or more of its voting stock has in the past 10 years been convicted of or has charges pending for any crime, other than a routine traffic offense, and the disposition of each such case.

Operating experience. A statement detailing the prior cable television experience of the applicant, including that of the applicant's officers, management and staff to be associated with the proposed operation in Hudson.

Extension policy. A statement detailing the applicant's proposed policy relating to the extension of subscriber services to areas not initially served and to areas subsequently annexed by the city.

Franchise renewal information. When an application is for renewal of a franchise, the proposal must include, in addition to the information required in Subsections A through T above:

A summary of the technical, financial and programming history of the network since the granting of the original franchise.

A statement of timetable that outlines all proposed changes, expansion or improvements in the system as to services, programming or technical specifications during the forthcoming five-year period.

Additional requirements. The application for a franchise shall respond specifically, and in sequence, to Subsections A through T of this section, and the above responses shall be bound separately from any additional information preferred by the applicant. Twenty-five copies of the application shall be supplied to the city. Supplementary, additional or other information that the applicant deems reasonable for consideration may be submitted at the same time as its application but must be separately bound and submitted in the above number of copies. The city may, at its discretion, consider such additional information as part of the application.

Supplementation to application. The city reserves the right to require such supplementary, additional or other information that the city deems reasonably necessary for its determinations. Such modifications, deletions, additions or amendments to the application shall be considered only if specifically requested by the city.

§ 114-10 Acceptance and effective date of franchise.

[Amended by Ord. No. 11-83; Ord. No. 22-83] Franchise acceptance procedures. Any franchise awarded hereunder and the rights, privileges and authority granted thereby shall be effective upon acceptance by the designated grantee within 30 days of the award of franchise by the city, provided that within 30 days from the date of such award the grantee shall file with the city the following:

A notarized statement of unconditional acceptance of the franchise by the grantee.

A certificate of insurance under § 114-15F.

A performance bond in the sum of $50,000 as set forth in § 114-16, conditioned upon the faithful performance of the franchisee. After the system has been operational for one year, this performance bond may be reduced, upon approval by the Common Council and the Village Board, to $5,000.

Reimbursement to the city for all costs attributable to the franchise awarding process as set forth in § 114-14B herein, which shall include the costs of preparation and publication of this chapter.

Written notification of the grantee's location, address and telephone number for mail, official notifications and other communications from the city.

Payment of security fund as provided herein.

Forfeiture of proposal bond. Should the grantee fail to fully comply with all of Subsection A above, it shall acquire no rights, privileges or authority under this chapter whatever, and the amount of the proposal bond or certified check in lieu thereof submitted with its application shall be forfeited in full to the city and the village as liquidated damages.

Grantee to have no recourse. The grantee shall have no recourse whatsoever against the city for any loss, cost, expense or damage arising out of any provision or requirement of this chapter or its regulation or from the city's exercise of its authority to grant additional franchises hereunder. This shall not include negligent acts of the city, its agents or employees which are performed outside the regulatory and franchise awarding authority hereunder.

Acceptance of power and authority of city. The grantee expressly acknowledges that, in accepting any franchise awarded hereunder, it has relied upon its own investigation and understanding of the power and authority of the city to grant this franchise.

Inducements not offered. The grantee, by acceptance of any franchise awarded hereunder, acknowledges that it has not been induced to enter into this franchise by any understanding or promise or other statement, whether verbal or written, by or on behalf of the city concerning any term or condition of this franchise that is not included in this chapter.

Grantee accepts terms of franchise. The grantee acknowledges by the acceptance of this chapter and the franchise ordinance that it is willing to and does accept all the obligations of such terms and conditions and further agrees that it will not, prior to substantial completion of the system, set up as against the city the claim that any provision of this chapter, as adopted, and any franchise granted hereunder is unreasonable, ambiguous, arbitrary, impractical, invalid, void or in nonconformity with any other provision herein.

Incorporation of proposals. The grantee, by the acceptance of any franchise awarded hereunder, agrees that the matters contained in the grantee's offering shall be incorporated into the franchise as though set out verbatim and shall be enforceable by the city except during such exact period of time, if any, as these matters were determined to be inconsistent with the Federal Communications Commission's rules and regulations or other superior federal or state laws; provided, however, that if any term of the offering is inconsistent or contrary to any term of this chapter, this chapter shall prevail.

[Amended by Ord. No. 22-83]

§ 114-11 Termination of franchise.

Grounds for revocation. The city reserves the right to revoke any franchise and rescind all rights and privileges associated with the franchise in the following circumstances:

If the grantee should default in the performance of any of its material obligations under the franchise and fails to cure the material default within 30 days after receipt of written notice of the default from the city.

[Amended by Ord. No. 22-83]

If the grantee should fail to provide or maintain in full force and effect the performance bond and liability and indemnification coverages as required in §§ 114-16 and 114-15, respectively.

If a petition if filed by or against the grantee under the Bankruptcy Act or any other insolvency or creditor's rights law, state or federal, and the grantee shall fail to have it dismissed within a reasonable time, not exceeding six months.

If a receiver, trustee or liquidator of the grantee is applied for or appointed for all or part of its assets.

If the grantee makes an assignment for the benefit of creditors.

If the grantee should violate any material order or ruling of any regulatory body having jurisdiction over the grantee, unless the grantee is lawfully contesting the legality or applicability of such order or ruling.

If the grantee fails to receive any necessary Federal Communications Commission or state registration or certification, unless such cause is directly attributable to an action or condition imposed by the city.

Procedure prior to revocation. Upon the occurrence of any of the events enumerated in Subsection A of this section, the Council may hold a hearing after 30 days' written notice to the grantee citing the reasons alleged to constitute cause for revocation and set a reasonable time within which the grantee must remedy the cause. If, during the thirty-day period, the cause shall be cured to the satisfaction of the city, the city may declare the notice to be null an void. If the grantee fails to remedy the cause within the time specified, the Council may revoke the franchise or impose one or more lesser sanctions as in Subsection A to better serve the public interest. In any event, the grantee shall be provided with an opportunity to be heard before the Council prior to having its franchise terminated or lesser sanctions applied.

Purchase of the system by city. If the city determines not to renew the franchise for reasons other than a material breach of the franchise or reasons unrelated to the performance of the grantee or upon receipt of an application for assignment of the franchise or upon change of de facto control, the grantee shall first offer the cable television/broadband telecommunications network for sale to the city at a fair and just market value, which value shall include the value of the system as an operating business possessing the franchise itself and the appendant rights and privileges granted by the city. Such sale shall not include any equipment or plant of the network which is used or shared by cable television companies other than the grantee.

[Amended by Ord. No. 22-83]

Restoration of property. In removing its aboveground plant, structures and equipment, the grantee shall refill, at its own expense, any excavation that shall be made by it and shall leave all public ways and places in as good condition as that prevailing prior to the grantee's removal of its aboveground equipment and appurtenances without adversely affecting the electric or telephone cables, wires or attachments or the cables and appurtenances of any other cable television/broadband telecommunications network franchise holder. The city shall inspect and approve the condition of the public ways and public places and cables, wires, attachments and poles after removal. Liability insurance and indemnity provided in § 114-15 and the performance bond in § 114-16 shall continue in full force and effect during the period of removal.

[Amended by Ord. No. 22-83]

Restoration by city; reimbursement of costs. In the event of a failure by the grantee to complete any work required by Subsection D above or any work required by the city law or ordinance within the time established and to the satisfaction of the city, the city may cause such work to be done, and the grantee shall reimburse the costs thereof to the city within 30 days after receipt of an itemized list of such costs, or the city may recover such costs as provided in § 114-16B.

Expiration; extended operation. The city may, by resolution on its own motion or request of the grantee, require the grantee to operate the franchise for a period of time not to exceed six months beyond the expiration of the original franchise or any extensions thereof. The city shall serve written notice at the grantee's business office of intent to extend under this section at least 30 days prior to the expiration date. All provisions of this chapter shall continue to apply to operations during an extension period.

§ 114-12 Regulatory jurisdiction and procedures.

Continuing regulatory jurisdiction. The city shall have continuing regulatory jurisdiction and supervision over the operation of any franchise granted hereunder and may, from time to time, adopt such reasonable rules and regulations as it may deem necessary for the conduct of the business contemplated thereunder.

[Amended by Ord. No. 22-83] Cable Television Regulatory Board. The continuing regulatory jurisdiction of the city shall be exercised by the Cable Television Officer and through the Joint Cable Television Board established under § 114-3. The Common Council shall accept and approve the recommendation of the Board on all matters, unless such recommendation is against the clear and convincing weight of the evidence presented. The Board shall:

Review rates and recommend rate changes to the Council as provided in § 114-17 of this chapter.

Allocate funds it deems necessary to assist production and programming on the access channels.

Recommend to the Council any changes in this chapter and franchise the Board deems to be in the public interest and detail the improvement(s) in service that subscribers could expect and the reasons why each such improvement would occur if the change were adopted and also the monetary impact on each subscriber, if any, of each recommended change.

Make a recommendation to the Common Council before the city imposes any sanctions under § 114-11, including termination of the franchise.

Regulatory procedures.

The Joint Cable Television Board established under § 114-3 shall first consider any inquiry or proceedings requiring Council action to be taken in regard to the cable television broadband telecommunications network or franchise, whether upon application or request by the grantee or any other party or on its own motion, and shall submit such consideration, together with the Board's recommendation, to the Council within 60 days of the receipt of such request, unless such time shall be extended by agreement between the Board and the requesting party. Any action by the Council on any Board recommendation shall be taken only after 30 days' notice of such proposed action, inquiry or proceeding is published in the official newspaper having general circulation and a copy of such notice is served upon the grantee. The grantee shall have an opportunity to respond at the hearing and/or in writing. Members of the public shall have an opportunity to respond or comment in writing on the proposed action and appear at the proceeding or hearing. However, such hearing or proceeding shall be set no later than 90 days after notice to the grantee, and the Council shall act upon this proceeding within 180 days of the notice of hearing, unless such time is extended by agreement between the city and the grantee.

The public notice required by this section shall state clearly the action or proposed action to be taken, the time provided for response, including response by the public, the person or persons in authority to whom such response shall be addressed and such other procedures as may be specified by the Council.

Failure to enforce provisions. The grantee shall not be excused from complying with any of the terms and conditions of the franchise by any failure of the city, upon one or more occasions, to insist upon or seek compliance with any such terms or conditions.

Contravention of provisions. The cost of any successful litigation incurred by the city to enforce the provisions of this chapter or of the franchise ordinance or in relation to a franchise shall be reimbursed to the city by the grantee. Such costs shall include filing fees, costs of depositions, discovery and expert witnesses, all other expenses of suit and attorney's fees.

§ 114-13 Reports and records.

[Amended by Ord. No. 22-83] Annual financial reports required. The grantee shall file annually with the City Clerk, not later than four months after the end of the grantee's fiscal year in which it commenced operations and within four months after the end of each subsequent fiscal year, four copies of:

The report to the grantee's stockholders.

An income statement identifying revenues, expenses and income applicable to the grantee's operations under such franchise during the fiscal year or fraction thereof.

A listing of the grantee's properties devoted to network operations, together with an itemization of the grantee's investment in each of such properties on the basis of original cost, less depreciation. These reports shall include a balance sheet, listing of substantial liabilities and financing arrangements and such other reasonable information as the city may request and shall be certified by a certified public accountant.

Annual facilities report required. The grantee shall file annually with the City Clerk, not later than four months after the end of the grantee's fiscal year in which it commenced operations and within four months after the end of each subsequent fiscal year, four copies of a total facilities report setting forth the total physical miles of plant installed or in operation during the fiscal year and a map showing the location of the same. The location of any business or dwellings adjacent to the physical plant to which cable access is not legally or economically feasible shall be identified and listed separately, along with the reason for network service being unavailable.

[Amended by Ord. No. 22-83]

Annual service record report required. The grantee shall, if requested by the city, file annually with the City Clerk, not later than four months after the end of the grantee's fiscal year in which it commenced operations and within four months after the end of each subsequent fiscal year, four copies of a list of all trouble complaints and full or partial network downtime received or experienced during the fiscal year. All such submitted data shall also include response time and complaint disposition. For the purposes of this provision, certified copies of a complaint logbook covering all such incidents in the detail required herein will suffice. Also, if requested by the city, uncertified additions to the annual complaint log shall be supplied in four copies to the City Clerk at intervals of 90 days or less following the filing of each annual report.

[Amended by Ord. No. 22-83]

Annual measurements report. The grantee shall file annually with the City Clerk, not later than four months after the end of the grantee's fiscal year in which it commenced operations and within four months after the end of each subsequent fiscal year, four copies of a report on the network's technical measurements.

[Amended by Ord. No. 22-83[1]]

Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

Annual operations reports required. The grantee shall file annually with the City Clerk, not later than four months after the end of the grantee's fiscal year in which it commenced operations and within four months after the end of each subsequent fiscal year, four copies of the following supplemental information:

[Amended by Ord. No. 22-83]

If a nonpublic corporation, a list of all current shareholders and bondholders, both of record or beneficial; if a public corporation, a list of all shareholders who individually or as a concerted group hold 5% or more of the voting stock of the corporation.

A current list of all the grantee's officers and directors, including addresses, zip codes and telephone numbers.

Copies of all pertinent agreements or contracts, including pole use agreements, entered into by the grantee during the fiscal year in the conduct of its business under a franchise granted hereunder.

The names and both business and residential addresses, zip codes and phone numbers of the cable television broadband telecommunications network resident manager and engineer in charge.

Three copies of all types of subscriber agreements. Copies of individual subscriber's agreements are not to be filed with the city.

Copies of all rules and regulations promulgated by the grantee during the fiscal year in the conduct of the grantee's business in accordance with the provisions of § 114-7 hereunder.

A copy of the annual report(s) of the parent firm(s) which owns an interest of 5% or more of the voting stock of the grantee.

Federal Communications Commission registration. The grantee shall give formal notice to the city that it has sent the necessary information for registration to the Secretary of the Commission, if required, and send three copies of the information to the City Clerk within 30 days after the date that the grantee's Hudson cable television system first provided service to 50 or more subscribers.

Public availability of reports. Such reports as required under this chapter shall be available to the public in the office of the City Clerk during normal business hours. Subscribers shall be notified of the availability of such reports in ways approved by the Cable Television Regulatory Board.

Correspondence. The grantee shall simultaneously file with the City Clerk a copy of each petition, application, registration and communication transmitted by the grantee to, or received by the grantee from, any federal, state or other regulatory commissions or agencies having competent jurisdiction to regulate and pertaining to the operations of any cable television broadband telecommunications network authorized hereunder.

City's access to records.

The city reserves the right, during the life of any franchise granted hereunder, to have access at all normal business hours and upon the giving of reasonable notice to the grantee's contracts, engineering plans, accounting and financial data and service records relating to the property and the operations of the grantee and to all other records required to be kept hereunder. This right is reserved only for the city's duly authorized employees or agents and not the public at large.

[Amended by Ord. No. 22-83]

Records of subscriber lists and statistical data not otherwise required by this chapter shall be made available only upon a ruling by a judge of competent jurisdiction that such records are material to the city's regulatory program.

Subscriber agreements. The form of the grantee's agreements, if any, with its subscribers shall be subject to the approval of the Common Council, upon recommendation by the Joint Cable Television Board. Three copies of all types of agreements used by the grantee shall be filed and maintained with the City Clerk.

[Amended by Ord. No. 22-83]

§ 114-14 Franchise payment.

Filing fee. Applicants for a franchise hereunder shall pay a nonrefundable filing fee to the Board of $700, which shall be due and payable concurrently with the filing of the proposal. All applicants filing a franchise proposal shall have paid the form fee under § 114-9A.

Franchising compensation. Grantees of a franchise hereunder shall provide an initial payment to the Board in an amount equal to the direct costs of granting the franchise, not to exceed $5,000, which sum shall be due and payable concurrently with the grantee's acceptance of the franchise, to offset the city's and village's costs in the franchise awarding process.

Annual franchise payment. Grantees of a franchise hereunder shall pay to the Board an annual fee in an amount equal to 5% of the annual gross subscriber revenues, as defined herein, in lieu of all other city and village permits and fees, to be first used to offset city and village regulatory and administrative costs herein and the balance to be allocated under the authority of §§ 114-3 and 114-12. The annual fee shall be paid within 30 days after the end of each quarter of the fiscal year of the grantee and for each quarter of the fiscal year of the grantee thereafter. Any adjustment to the actual franchise fee based upon audited financial statements of the grantee for the prior fiscal year shall be reflected in the second quarter payment. This payment shall be in addition to any other payment owed to the city and village by the grantee and shall not be construed as payment in lieu of municipal property taxes or other state, county or local taxes.

[Amended by Ord. No. 3-87]

Method of computation; interest.

Sales taxes or other taxes levied directly on a per-subscriber or per-installation basis and collected by the grantee shall be deducted from the local annual gross subscriber revenues before computation of sums due the city is made. Payments due the city under the provisions of Subsection C above shall be computed annually as of December 31 for the preceding year and shall be paid simultaneously with the filing of annual reports required in § 114-13 at the office of the City Clerk. The payment period shall commence as of the effective date of the franchise. The city shall be furnished a statement with each payment, by a certified public accountant, listing the total amounts of annual gross subscriber revenues and the above charges, deductions and computations for the annual payment period covered by the payment.

If any payment is not made as required, interest on the amount due shall accrue from the date of the required submittal at an annual rate of 12%. The percentages designated in this section may be amended no more than once each year by the Council, consistent with increased costs for municipal facilities and supervision and applicable rules of other regulatory agencies.

Rights of recomputation. No acceptance of any payment by the city 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 as a franchise fee under this chapter or for the performance of any other obligation of the grantee.

§ 114-15 Liability and indemnification.

Indemnification of franchise. The grantee shall save the city harmless from all loss sustained by the city on account of any suit, judgment, execution, claim or demand which the city may legally be required to pay as a result of the enactment of this chapter and the award of a franchise hereunder, except as may arise from the process of selection of a grantee for this franchise.

Indemnification of city in franchise operation. The grantee shall save the city and its agents and employees harmless from and against all claims, damages, losses and expenses, including attorney's fees, sustained by the city on account of any suit, judgment, execution, claim or demand whatsoever arising out of acts by the grantee, its agents and employees, including but not limited to the grantee's copyright infringements, and all other damages arising out of the installation, operation or maintenance of the cable television broadband telecommunications system by the grantee authorized herein, whether or not any act or omission complained of is authorized, allowed or prohibited by this chapter. This provision shall not apply to acts of the city, its agents or employees.

[Amended by Ord. No. 22-83]

Reimbursement of costs. The grantee shall pay and, by the acceptance of any franchise granted hereunder, agrees that it will pay all expenses and penalties mentioned in Subsections A and B above.

Public liability insurance. The grantee shall maintain, throughout the term of the franchise, any extensions thereto or as required in § 114-11D, a general comprehensive liability insurance policy, in the amount hereafter specified, naming the city and village as additional insureds:

One million dollars for bodily injury or death to any one person and $1,000,000 for bodily injury or death resulting from any one occurrence.

[Amended by Ord. No. 22-83].

One million dollars for property damage resulting from any one occurrence.

Notice of cancellation of reduction of coverage. The insurance policies mentioned above shall contain an endorsement stating that the policies are extended to cover the liability assumed by the grantee under the terms of this chapter and shall include the following endorsement:

It is hereby understood and agreed that this policy may not be canceled nor the amount of coverage thereof reduced until 30 days after receipt by the City Clerk of Hudson by registered mail of two copies of a written notice of such intent to cancel or reduce the coverage.

Evidence of insurance filed with Mayor and City Clerk. All policies of insurance or certified copies thereof and written evidence of payment of required premiums, shall be filed and maintained with the City Clerk during the term of any franchise granted hereunder.

[Amended by Ord. No. 22-83]

No waiver of performance bond. Neither the provisions of this chapter nor any insurance accepted by the city and the village pursuant hereto nor any damages recovered by the city and village thereunder shall be construed to excuse faithful performance by the grantee or limit the liability of the grantee under the franchise issued hereunder or for damages, either to the full amount of the bond or otherwise.

§ 114-16 Bonds.

Proposal bond. Each applicant for a franchise hereunder shall submit a proposal bond in a form acceptable to the City Clerk or a certified check payable to the order of the City of Hudson and the Village of North Hudson in the amount of $5,000.

Performance bond.

[Amended by Ord. No. 22-83]

The grantee shall maintain, and by its acceptance of any franchise granted hereunder agrees that it will maintain, through the term of the franchise or any renewal or extension hereof or as required in § 114-11D, a faithful performance bond running to the City of Hudson and Village of North Hudson from one good and sufficient surety or other financial guarantor approved by the Mayor and Village President, in the initial total sum of $50,000, conditioned upon the faithful performance of the grantee and upon the further condition that, in the event that the grantee shall fail to comply with any law, ordinance or regulation governing the franchise, there shall be recoverable jointly and severally from the principal and sureties of the bond any damages or loss suffered by the city or village as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the grantee, plus a reasonable allowance for attorney's fees and costs, up to the full amount of the bond. The bond shall contain the following endorsement:

It is understood and agreed that this bond may not be canceled until 30 days after receipt by the City Clerk of Hudson by registered mail of two copies of such intent to cancel or not to renew.

Upon the achievement of substantial completion, the grantee may submit to the city a written application for a reduction of the sum total amount of this performance bond for the remainder of the franchise term and any renewal or extension thereof. The Joint Cable Television Board shall recommend a revised bond amount to the Common Council and Village Board. The decision of the Common Council and Village Board shall be final.

Forfeit of proposal bond. Should the applicant fail or refuse to accept a franchise hereunder or fail or refuse to furnish the performance bond as set forth herein within 30 days after receiving written notification of the award of a franchise by the City Clerk, such applicant will be considered to have abandoned its proposal, and the city and village shall enforce the proposal bond in accordance with its terms or retain the proceeds of the certified check.

Return of the proposal bond. Proposal bonds or certified checks received in lieu thereof from applicants whose proposals are not accepted shall be returned to the applicant as soon as the proposal is rejected.

Bond evidence to be filed with city. Two copies of all bonds or certified copies thereof and written evidence of payments of required premiums shall be filed and maintained with the City Clerk.

§ 114-17 Fees, rates and charges.

Charges for services. To the extent that they are subject to regulation, all of the following charges for services shall be subject to Common Council approval, in accordance with the schedule of charges contained in the grantee's application for franchise, which schedule is incorporated herein by reference, and any modification to such schedule that may result from a review requested by the city on its own motion or at the request of the grantee. The charges shall be in accordance with the requirements set forth in this subsection.

[Amended by Ord. No. 22-83]

Basic services charges. The grantee may make a charge to subscribers, private or commercial, for installation, connection and reconnection to its cable television broadband telecommunications network and a fixed monthly charge for basic service within the meaning of § 114-2. Any subscriber to basic services shall have the option of receiving pay television services.

Limited service charges. The grantee shall provide subscribers the option of subscribing to services exclusive of the retransmission of broadcast signals where they are satisfied with their existing off-air broadcast reception and can use an antenna switch to select between broadcast reception and the otherwise unavailable nonbroadcast retransmission services provided by the grantee. A separate monthly charge shall be approved by the Council for this limited service connection to the cable television broadband telecommunications network.

Buried service charge. If a subscriber requests a buried service drop to a residence in an area where telephone, electric power and cable television distribution cables are aboveground, the grantee shall bury or allow the subscriber to bury a direct burial drop upon the payment of such fee that has been approved by the Council.

Unusual connections charges. The grantee may make a charge to subscribers for installation and connection to its network in addition to those charges set forth in Subsection A(1) above where unusual circumstances exist, such as remote or comparatively inaccessible subscriber locations, subscriber-requested concealed cable runs or otherwise difficult installations due to building construction and for antenna switching devices.

Extra connection charges. The grantee may make additional charges for the installation of extra terminals in an individual subscriber's dwelling or place of business. Extra monthly service charges may be set forth for each additional television set, video recorder, FM receiver or other device which is connected to the network.

Notification of charges. The grantee may establish charges for its services not specified in Subsection A above. However, all such charges, including but not limited to additional service, leased channel, discrete channel, pay television channel, per-program fees, production and advertising rates and the charge to all users of the access channels for reasonable production and the original costs, shall be made public, and two copies of each such schedule of charges, as originally established and thereafter modified, shall be filed with the City Clerk.

[Amended by Ord. No. 22-83] All rates to be fair and reasonable. The grantee shall be entitled to a fair rate of return on its investment in the system. To the extent that they are subject to regulation, all charges set by the grantee for services shall be fair and reasonable and shall be commensurate with the service and equipment provided at the subscriber terminals and calculated to offset all necessary costs for provision of the service, including a fair rate of return on its investment.

No consideration beyond schedule. The grantee shall receive no consideration whatsoever for or in connection with a service to its subscribers other than that which is on file with and approved by the city in accordance with this section.

Deposits and advance payments to be approved. The grantee shall receive no deposit, advance payment or penalty from any subscriber or potential subscriber other than that established in the schedule of charges previously filed with and approved by the Council.

Converter provided and purchase of switch. A converter will be provided by the grantee as part of the basic service. The converter will be maintained by the grantee subject to normal use by the subscriber. The grantee shall also make available at a nominal charge a switch allowing subscribers to receive regular television broadcast service.

Subscriber refunds. If any subscriber of the grantee of less than 30 days terminates service due to the grantee's failure to render service of a type and quality provided for herein to such subscriber; service to a subscriber is terminated by the grantee without good cause; or the grantee ceases to operate the cable television broadband telecommunications network authorized herein for any reason except termination or expiration of a franchise granted hereunder, the grantee shall, upon recovery of its equipment, such as its cable converter, coaxial switch or other appurtenant device, refund to such subscriber an amount equal to the installation and connection charges paid by such subscriber. Under the terms of this subsection, the grantee shall not be required to refund the current monthly charge except as it may express a willingness to do so.

Transfer within service area. The grantee, in the event that a valid subscriber shall transfer his residence within the service area of the grantee without any interruption in monthly service charges, shall reconnect such subscriber at the new residence without imposition of the installation charge. The grantee, however, shall have the right to charge a nominal transfer fee. The grantee of a franchise awarded herein, in the event that a nonsubscriber transfers his or her residence into vacated premises previously connected or prewired to the network, may charge such nonsubscriber all applicable fees as set forth in this section if such nonsubscriber requests connection to the network.

Acceptance of city's authority to regulate rates. To the extent permitted by law, the grantee shall agree and, by its acceptance of a franchise, specifically agrees to be subject to the city or other regulatory bodies having competent jurisdiction to fix just, reasonable and compensatory rates.

[Amended by Ord. No. 22-83]

Rates subject to other regulations. If Federal Communications Commission regulations or any other applicable laws or regulations shall subsequently determine that the city has jurisdiction over other services or service to be offered or performed, such rates shall be subject to denial by the city at that time.

Reduction of fees. If, during the term of any franchise or renewal thereof granted hereunder, the grantee receives refunds or if the cost of operation to the grantee is reduced as a result of an order of any regulatory body having competent jurisdiction, the grantee shall pass on to its subscribers on a prorated basis any such savings or reduced costs on a schedule to be determined by the Council.

Rate change procedures.

Freeze on initial rates. The grantee shall not file an application for an increase in fees, rates or charges until 12 months have expired from the time the grantee has been determined to have achieved substantial completion of the distribution network, except to seek relief from the imposition of any federal, state or local taxes, copyright or other legally imposed fees not contemplated in the original rate determinations.

[Amended by Ord. No. 22-83]

[Amended by Ord. No. 22-83] Rate changes. A change in any regulatable rate, when not inconsistent with applicable requirements of the Federal Communications Commission or other lawful authority, may be implemented by the grantee. Any such rate change implemented by the grantee shall be subject to denial by the city in accordance with the provisions of this section and the following subsections:

(a)

No rate change shall be allowed that would result in different rates or charges for services for similarly situated subscribers in the rate territory.

(b)

No rate change that, in the opinion of the city, is substantial will be allowed unless all the standards and prerequisites for review have been met and complied with and determinations have been made, all pursuant to this section.

(c)

In the event that the city elects to review a rate change by the grantee, the standards for reviewing such rate change implemented by the grantee will include the following, except when the change is required or permitted by law, the Federal Communications Commission or other lawful authority:

The ability of the grantee to render system services and to derive a reasonable profit therefrom under the existing rate schedule.

[2]

The revenues and profits derived from system services.

[3]

The quality of the service offered by the grantee.

[4]

A fair rate of return on the replacement cost (new) less observed depreciation of the properties devoted to such service.

[5]

A fair rate of return with respect to investments having similar risks to that of providing cable communication services.

[6]

The extent to which the grantee has adhered to the terms of this franchise.

[7]

Capital expenditures by the grantee in providing updated technology and service to subscribers.

[8]

Such other factors as the city may deem reasonably relevant.

(d)

No rate increase shall be permitted until one year after the system has been substantially completed.

(e)

The procedures to be followed in changing a rate or charge shall include the following:

The grantee shall submit to the city a notice of rate change setting forth the new rate and charge schedule. Unless the city requests a rate hearing as provided, the new rate and charge schedule shall become effective 60 days after receipt by the city of the notice of rate change.

[2]

The notice of rate change shall be supported by statistical and other proof indicating that the existing rate or charge is inadequate or unreasonable and that a rate charge is required to enable the grantee to render service to fulfill its obligations under this franchise and to derive a reasonable profit therefrom.

[3]

In the event that a hearing is requested by the city, the grantee shall supplement the notice of rate change with current information, including financial information, with at least the following from the grantee concerning the costs of serving the rate territory: balance sheet; income statement; statement of sources and applications of funds; detailed supporting schedules of expenses, income and assets; and statement of current and projected subscribers.

[4]

The rate change implemented by the grantee shall be subject to denial by the city in accordance with the terms of this section. In the event that the city elects to have a hearing on the rate change, the city will notify the grantee and schedule a public hearing on the rate change within 30 days from the date of receipt of the notice of rate change should the city deem such public hearing appropriate. The city may extend the time for receipt of evidence and hiring and reporting of a consultant for a period of up to 30 days. The city will publish notice 10 days prior to the hearing in its official newspaper.

[5]

After the public hearing, the city will have 30 days within which to make its determination whether the rate change should be denied. If the city does not deny the rate change within the thirty-day period, the grantee's rate change will be deemed approved.

[6]

If the city denies the grantee's rate change within the thirty-day period, the grantee may appeal the decision to the appropriate lawful authority.

(f)

The city may utilize a rate consultant to advise it on rate changes and to assist it in maintaining uniform rates within the rate territory. A rate consultant may be any person who has sufficient background and experience, in the reasonable opinion of the city, to properly evaluate and analyze rates and charges.

(g)

All costs for the review of a rate or charge change shall be paid out of the franchise fee as costs of regulation, and if such costs exceed the franchise fee, then the excess portion shall be paid by the grantee. The cost shall include, but not be limited to, attorney's fees and the reasonable value of services of the city's employees, agents or representatives.

(h)

Any time limit may be waived only if the city and the grantee mutually consent.

Pass-on charges.

[Added by Ord. No. 22-83]

The grantee shall be entitled to pass on, without city or Council approval, the following costs and charges to its rates for basic service: all increases in programming, copyright fees and pole rental rates, as well as any new federal, state or local taxes imposed on the grantee, excluding income taxes.

The grantee shall give the Board notice of the rate increase resulting from the increase in such pass-on costs 30 days prior to the effective date of such rate increase. The notice shall be supported by such documentation or other proof establishing the increase in the pass-on cost or charge.

§ 114-18 Service to schools and municipal buildings.

The grantee shall provide, upon request, within the city one connection and monthly service for basic service to such public, parochial and nonprofit private schools, city buildings and agency locations as the city may hereafter designate. The rates for this installation and monthly service shall be designated by each applicant in its proposal. The city reserves the right, at its expense, to extend service to as many areas within such schools, buildings and agencies as it deems desirable without payment of any additional fee to the grantee. All such extensions, however, shall be accomplished in such a way so as not to interfere with the operation of the cable television broadband telecommunications network.

§ 114-19 Extension of network.

Network extension across city boundaries. Before any subscriber located in a community other than the Village of North Hudson, City of Hudson and City of River Falls is allowed to connect to the cable television broadband telecommunications network, the grantee shall be capable of furnishing service to a substantially completed system for North Hudson and Hudson residents, unless a waiver of this section is granted by the Village Board and Common Council. A written waiver request must be made at least 30 days prior to the requested appearance before the Common Council or Village Board. Such waiver request shall clearly state the potential impact of such occurrence on the operations and finances of the grantee, the costs of such an extension and who is to bear such costs and any anticipated interconnection with such institutions as defined in § 114-18 within the area to be served by such network extension.

[Amended by Ord. No. 22-83]

Extension of network within city boundaries.

Conditions of required extension. The grantee shall, at its expense, extend its cable television broadband telecommunications network so as to provide full network service to any resident dwelling within the city limits and 300 feet of existing network to which access is legally and reasonably available.

Extension policy. The grantee shall file with the City Clerk three copies of its extension policy for potential subscribers dwelling beyond 300 feet from the nearest point of access to existing network but within the city limits. Such policy shall be approved by the city, and the grantee shall not make or refuse to make any extension except as permitted by this approved policy.

§ 114-20 Time for performance.

Permit application. It is hereby deemed in the public interest that the network be extended as rapidly as possible to all citizens within the city. Within 60 days of the effective date of a franchise granted hereunder, the grantee shall file with the appropriate authorities and utilities all initial papers and applications necessary to comply with the terms of this chapter, including any additions or amendments thereto, and shall thereafter diligently pursue all such applications. After the grantee has diligently pursued the acquisition of necessary pole attachment contracts or other necessary easements, and where such necessary contracts have not been executed or easements obtained after a reasonable period of time as determined by the city, the city may, at its discretion, provide assistance to ensure the extension of the system to all citizens.

Commencement of construction. Within 120 days of the effective date of a franchise granted hereunder, or as soon thereafter as weather conditions permit, the grantee shall initiate construction and installation of the cable television broadband telecommunications network. Such construction and installation shall be pursued with reasonable diligence.

Commencement of operation. Within six months of the effective date of a franchise granted hereunder, the grantee shall commence operation within the meaning set forth in § 114-2.

Substantial completion of construction. Within 12 months of the effective date of a franchise granted hereunder, the grantee shall have substantially completed construction of the service area within the meaning set forth in § 114-2.

Provision of basic service. Within 18 months of the effective date of a franchise granted hereunder, the grantee shall have placed in use sufficient distribution facilities so as to offer basic service to 100% of the dwelling units in the service area to which access is legally and reasonably available.

Delays and extension of time. The city may, in its discretion, extend the time for the grantee, acting in good faith, to perform any act required hereunder. The time for performance shall be extended or excused, as the case may be, for a period during which the grantee demonstrates to the satisfaction of the Council that the grantee is being subjected to delay or interruption due to any of the following circumstances if reasonably beyond its control:

Necessary utility rearrangements, pole change-outs or obtainment of easement rights.

Governmental or regulatory restrictions.

Labor strikes.

Inclement weather.

[Added by Ord. No. 22-83]

§ 114-21 Network description.

System bandwidth capability. The grantee shall install a cable network. The primary cable and the spacing of the installed amplifiers shall assure a minimum initial forward or downstream bandwidth capability of 50 to 400 megahertz and a minimum return or upstream bandwidth capability of five to 30 megahertz. The installation of return amplifiers in the cable may be deferred, provided that amplifier housings are installed which contain the necessary facilities for the later addition of return amplifiers band separation networks. As total bidirectional capacity is of considerable interest to the city, applicants for a franchise hereunder may propose greater channel capacities and more sophisticated two-way capabilities than the minimums set forth herein. However, such proposal shall describe the particular community needs to be served thereby and shall detail, as part of the financial projection and support required in § 114-9M and N, respectively, the anticipated timetable for introduction and the associated costs and revenues.

Subscriber return control. Whenever a return or upstream information circuit is routed from a subscriber's premises, it shall be connected so as to provide subscriber notification of usage and to permit subscriber-controlled deactivation without impairment of full network service reception.

Subscriber program control. The grantee shall provide, at cost, an optional device to enable the subscriber to shut off pay television and/or other channels carrying non-family-rated programming. The grantee shall publicize this option.

Public and education services. The grantee shall design and construct the network so as to provide for the simultaneous introduction and distribution of a minimum of one Class II channel from each of the following locations:

Hudson City Hall.

Hudson Public Library.

North Hudson Village Hall.

Hudson School System High School.

Phipps Center for the Performing Arts.

St. Croix County Courthouse.

The grantee's television facility for program production and insertion.

(8)

Other facilities, such as, but not limited to, a public access center and senior citizens access center, as the Council, from time to time, may direct within current system boundaries.

[Amended by Ord. No. 22-83]

Emergency alert override. The grantee shall incorporate into its facilities an emergency override audio alert and, as soon as feasible, a simultaneous video alert whereby the St. Croix County Emergency Communication Center may introduce a message on all channels simultaneously. The grantee shall provide all equipment necessary for use of the emergency alert system.

§ 114-22 Service standards.

Service response and rebate. The grantee shall provide same-day service response seven days a week for all complaints and requests for repairs or adjustments received prior to 2:00 p.m. each day. In no event shall response time for calls received subsequent to 2:00 p.m. exceed 27 hours. The grantee shall credit 1/30 of the monthly charge for basic service to each subscriber for each 24 hours following report of loss of service to the grantee.

Service interruptions and notification. The grantee, whenever it is necessary to interrupt service over the cable television broadband telecommunications network for the purpose of network maintenance, alteration or repair, shall do so at such time as will cause the least amount of inconvenience to its subscribers, and unless such interruption is unforeseen and immediately necessary, the grantee shall give reasonable notice thereof to the affected subscribers. Such notice may be presented on the channel used to present the daily program schedules.

Upgrading of facilities, equipment and service. The grantee shall upgrade its facilities, equipment and service when economically and technologically feasible.

[Amended by Ord. No. 22-83]

§ 114-23 Construction standards.

Compliance with safety codes. All construction practices shall be in accordance with all applicable sections of the Occupational Safety and Health Act of 1970 and any amendments thereto, as well as all state and local codes where applicable.

Compliance with electrical codes. All installation of electronic equipment shall be of a permanent nature, durable and installed in accordance with the applicable sections of the current edition of the National Electric Safety Code and all state and local codes where applicable.

Antennas and towers. Antenna-supporting structures (towers) shall be designed for the appropriate wind and ice loading zone as specified in the Electronics Industry Association's R.S. 22A Specifications.

Compliance with aviation requirements. Antenna-supporting structures (towers) shall be painted, lighted, erected and maintained in accordance with all applicable rules and regulations of the Federal Aeronautical Agency, the State Aeronautics Board governing the erection and operation of supporting structures or television towers and all other applicable local or state codes and regulations.

§ 114-24 Conditions of street occupancy.

Approval of proposed construction. A grantee shall first obtain the approval of the city prior to commencing construction on the streets, alleys, public grounds or places of the city. Applications for approval of construction shall be in a form provided by the city.

Excavation permits. A grantee shall not open or disturb the surface of any street, sidewalk, driveway or public place for any purpose without first having obtained a permit to do so in the manner provided by ordinance.[1]

Editor's Note: See Ch. 212, Streets and Sidewalks, § 212-2, Street openings.

Changes required by public improvements. A 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 be reason of traffic conditions, public safety, street vacation, street construction, change or establishment of street grade and installation of sewers, drains, water pipes, city-owned power or signal lines and tracts or any other type of structure or improvement by public agencies.

Use of existing poles or conduits. Nothing in this chapter or any franchise granted hereunder shall authorize the grantee to erect and maintain in the city new poles where existing poles are servicing the area. Change-outs, where necessary to secure adequate street clearance and spacing between electric power, telephone and cable television lines, shall, however, be authorized. The grantee shall require permission from the city before erecting any new poles or installing any underground conduit or appurtenances where none exist at the time the grantee seeks to install its network.

Facilities not to be hazardous or interfere.

All wires, conduits, cables and other property and facilities of the grantee shall be so located, constructed, installed and maintained as not to endanger or unnecessarily interfere with the usual and customary trade, traffic and travel upon the streets and public places of the city. The grantee shall keep and maintain all its property in good condition, order and repair. The city reserves the right hereunder to inspect and examine at any reasonable time and upon reasonable notice the property owned or used, in part or in whole, by the grantee.

The grantee shall keep accurate maps and records of all its facilities and furnish copies of such maps and records as requested by the city under § 114-13 herein. A grantee shall not place poles or other equipment where they will interfere with the rights or reasonable convenience of adjoining property owners or with any gas, electric or telephone fixtures or with any water hydrants or mains. All poles or other fixtures placed in a street shall be placed in the right-of-way between the roadway and the property, as specified by the city.

Method of installation. All wires, cables, amplifiers and other property shall be constructed and installed in an orderly and workmanlike manner. All cables and wires shall be installed parallel to existing telephone and electric wires whenever possible. Multiple cable and configurations shall be arranged in parallel and bundled, with due respect for engineering and safety considerations. All installations shall be underground in those areas of the city where public utilities are underground at the time of the grantee's cable installation. In areas where telephone and electric utility facilities are above ground at the time of the grantee's cable installation, the grantee may install its service aboveground, provided that at such time as those facilities are required to be placed underground by the telephone and electric utilities, the grantee shall likewise place its services underground without additional cost to the city or to the residents of the city other than as may be granted under the provision of § 114-17.

Protection of facilities. Nothing contained in this section shall relieve any person, company or corporation from liability arising out of the failure to exercise reasonable care to avoid injuring the grantee's facilities while performing any work connected with grading, regrading or changing the line of any street or public place or with the construction or reconstruction of any sewer or water system.

Notice of city improvements. The city shall give the grantee reasonable notice of plans for street improvements where paving or resurfacing of a permanent nature is involved. The notice shall contain the nature and character of the improvements, the street upon which the improvements are to be made, the extent of the improvements and the work schedule for the project. The notice shall give the grantee sufficient time to make any additions, alterations or repairs to its facilities as it deems necessary in advance of the actual commencement of the work so as to permit the grantee to maintain continuity of service.

Requests for removal or change. The grantee shall, on the request of any person hold a building moving permit, temporarily raise or lower its wires to permit the moving of the building. The expense of such temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and the grantee shall have the authority to require such payment in advance. The grantee shall be given not less than 10 working days' notice of any move contemplated in which to arrange for temporary wire changes.

Authority to trim trees. Subject to city approval and notification, the grantee shall have the authority to trim trees upon and overhanging streets, alleys, sidewalks and other public places of the city so as to prevent the branches of such trees from coming in contact with the wires and cables of the grantee. The grantee may contract for such services, however, any firm or individual so retained shall receive city approval prior to commencing such activity.

[Amended by Ord. No. 22-83]

Restoration or reimbursement. In the event of disturbance of any street or private property by the grantee, it shall, at its own expense and in a manner approved by the city and the owner, replace and restore such street or private property in as good condition as before the work causing such disturbances was done. All requests for replacement or restoration of such streets or private property as may be disturbed must be in writing to the grantee. If the grantee fails to perform such replacement or restoration or complete satisfactory arrangements to do so within 30 days of receipt of written request, the city or the owner shall have the right to do so at the sole expense of the grantee, unless the grantee has contested the claim of such disturbance in writing and has requested arbitration of the matter. Payment to the city or owner for uncontested replacement or restoration shall be immediate, upon demand, by the grantee.

Office and records. The grantee shall at all times make and keep, at an office maintained by the grantee in the city, full and complete plans and records showing the exact location of all cable television broadband telecommunications network equipment installed or in use in the streets and other public places of the city. The grantee shall furnish the city a current map or set of maps, drawn to scale, showing all of the grantee's equipment installed and in place in streets and other public places of the city.

Emergency removal of plant. If, at any time, in case of fire or disaster in the city, it shall become necessary in the reasonable judgment of the city to cut or move any of the wires, cables, amplifiers, power supplies, appliances or appurtenances thereto of the grantee, such cutting or moving may be done and any repairs rendered necessary thereby shall be made by the grantee, at its sole expense, provided that such repairs are not necessitated by negligent acts of the city, in which case cost for repairs shall be borne by the city.

Alternate routing of plant. If continued use of a street is denied to the grantee by the city for any reason, the grantee will make every reasonable effort to provide service over alternate routes.

§ 114-25 Interconnection.

No prohibition of interconnection. Nothing in this chapter shall be construed so as to prohibit the grantee from interconnecting its network with other similar contiguous networks either in the city or in other municipalities, townships, counties or states, except as the provisions of § 114-19 apply. However, any revenues derive therefrom shall be equitably allocated in the calculation of annual gross subscriber revenues as set forth in § 114-14 herein.

Study required for interconnection. The grantee shall, if requested by the city, conduct a technical and economic feasibility study of any interconnection requested by the city. The study shall be presented to the city, and if the study shows such interconnection to be feasible, the grantee shall, if so instructed by the city, accomplish the interconnection. If the study indicates technical feasibility only, the city may elect, but at its sole discretion, to arrange for compensation to be paid to the grantee and so sufficient to assure an economic break even by the grantee and so order the interconnection. If the study fails to show technical feasibility, the grantee shall have no further responsibility for accomplishing the interconnection until such time as improvements in technology permit such interconnection.

§ 114-26 Unauthorized use or modifications.

Unauthorized connection prohibited. No person, without the expressed consent of the grantee, shall make or possess any connection, extension or division, whether physically, acoustically, inductively, radiantly, electronically or otherwise, with or to any segment of a franchised cable television broadband telecommunications network for any purpose whatsoever, except as provided in § 114-18 herein.

Obstruction, removal or destruction prohibited. No person shall willfully interfere with, tamper with, remove, obstruct or damage any part, segment or content of a franchised cable television broadband telecommunications network for any purpose whatsoever.

Violation. Any person convicted of a violation of this section shall, for each offense, forfeit not less than $100 nor more than $500, together with costs of such prosecution. Violation of this section shall be considered a separate offense for each twenty-four-hour period the violation continues following notification or discovery.

§ 114-27 Preferential or discriminatory practices.

Affirmative action and nondiscrimination. The grantee shall promulgate an affirmative action and equal employment opportunity policy which shall be designed to ensure that a good-faith effort to employee applicants from all segments of the community, regardless of race, color, marital status, religion, age, sex, handicap or national origin, will be made and that it will not discriminate against any individual with respect to compensation, terms, responsibilities, conditions or other privileges of employment because of race, color, marital status, religion, sex, national origin, handicap or age.

[Amended by Ord. No. 22-83]

Services to be equally available. The grantee shall not refuse cable television service to any person or organization who or which requests such service for a lawful purpose where network access is legally and reasonably available, nor shall a company refuse any person or organization the right to cablecast pursuant to provision of this chapter. The grantee shall not, as to rates, charges, service facilities, rules, regulations or in any other respect, make or grant any unreasonable preference or advantage nor subject any person to any prejudice or disadvantage. The grantee shall take affirmative steps to disseminate information concerning the availability of each of its services to all determinable minority and female groups and other under-represented groups. These provisions shall not be deemed to prohibit promotional campaigns to stimulate subscription to the system or other legitimate uses thereof, nor shall they be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any subscriber coming within such classifications shall be entitled, provided that such schedules have been filed with and approved by the city as provided in § 114-17.

Fairness of accessibility. The entire system of the grantee shall be operated in a manner consistent with the principle of fairness and equal accessibility of its facilities, equipment, channels, studios and all of its other services to all citizens, businesses, public agencies or other entities having a legitimate use for the system, and no one shall be arbitrarily excluded from its use for any reason by any person, firm, group, company, corporation, governmental body or agency. Allocation of use of the grantee's facilities shall be made according to the rules or decisions of regulatory agencies effecting the same, and where such rules or decisions are not effective to resolve a dispute between conflicting users or potential users, the matter shall be submitted for resolution by the Joint Cable Television Board.

§ 114-28 Subscriber privacy.

Use of data from subscriber. A grantee, city or any person shall not, in addition to the requirements of § 114-21C, initiate or use any form, procedure or device for procuring information or data from cable television subscribers' premises by use of the cable system without prior valid written authorization from each subscriber so affected. Valid authorization shall mean written approval from the subscriber for a period of time not to exceed one year, and it shall not have been obtained from the subscriber as a condition of service. Further, the grantee, without such authorization, shall not activate and/or utilize any Class IV cable television channel in any manner from the subscriber's premises. In any case the subscriber shall retain the right to deactivate the return path from his/her premises.

Subscriber identity. Neither the city, a grantee nor any person shall, without prior valid written authorization from each subscriber so affected, provide any data identifying or designating subscribers to additional parties, except for purposes directly related to implementing the provisions of this chapter and to both contractors employed to do installations and any agencies which the grantee may employee to bill and collect moneys from its subscribers or to make mailings, such as, but not limited to, program schedules.

Procurement of information. No person shall procure subscriber-identifiable information or data from subscribers' premises by use of the cable system without prior valid written authorization from each subscriber so affected. Valid authorization shall mean written approval to collect, receive, store, record, use, transmit or otherwise convey specific types of information or data to specified additional parties for specified purposes and for a specified period of time not to exceed one year. Further, all such authorizations shall specify the maximum period of time that such subscriber-identifiable information or data shall be preserved, in any manner or form, by whom, in what location and for what purpose.

Subscriber copy required. A written copy of all subscriber-identifiable information or data which is retained and/or disclosed and the disposition of this information or data, together with any explanation necessary to render it understandable to the subscriber, shall be provided to the affected subscriber within 30 days of procurement. Further disclosures shall be fully detailed, in writing, to the affected subscriber within 30 days of each such disclosure.

§ 114-29 Publication costs.

The grantee shall assume the cost of publication of the franchise ordinance as such publication is required by law. A bill for the publication costs shall be presented to the grantee by the city upon the grantee's filing of acceptance and shall be paid at that time.

§ 114-30 Conflicts with other ordinances.

Should any ordinance or part thereof be in conflict with the provisions of this chapter, this chapter shall prevail insofar as it applies to each cable television broadband telecommunications network.

§ 114-31 Security fund; violations and penalties.

[Amended by Ord. No. 22-83]

Security fund.

Within 30 days after the effective date of this chapter, the grantee shall deposit with the Finance Officer of the city and maintain on deposit through the terms of the franchise the sum of $5,000 in cash.

If the grantee fails to pay the city any compensation within the time fixed herein or fails, after 20 days' notice, to pay to the city any taxes due or unpaid or fails to repay to the city, within 20 days, any damages, costs or expenses which the city shall be compelled to pay by reason of any act or default of the grantee in connection with this chapter which the city reasonably determines can be remedied by an expenditure of the security, the Finance Officer of the city may immediately withdraw the amount thereof from the security fund. Upon such withdrawal, the Finance Officer shall notify the grantee of the amount and date thereof, and the grantee shall have 30 days in which to replace the amount withdrawn.

The cash deposit furnished by the grantee pursuant hereto shall become the property of the city if the franchise is revoked by reason of a default of the grantee. The cash deposit shall be retained by the city and returned to the grantee at the expiration of the franchise, provided that there is no outstanding obligation on the part of the grantee to the city. Any interest which accumulates on the cash deposit shall become the property of the grantee as it accrues, and the grantee shall have the option of withdrawing the interest or leaving it on deposit as the grantee deems necessary. The City Clerk is to set up the account with the city and deposit the interest in the grantee's account.

Penalties from security fund. In addition to recovery of any moneys owed by the grantee to the city or damages or any other remedies as a result of any acts or omissions by the grantee pursuant to this chapter, the city may charge to and collect from the security fund the following penalties for failure to:

Comply with the terms of § 114-20 of this chapter. The penalty shall be $100 for each day such failure occurs or continues.

Provide data, documents, reports or information in accordance with § 114-13 of this chapter. The penalty shall be $25 for each day such failure occurs or continues.

Comply with any of the provisions of this chapter for which a penalty is not otherwise specifically provided pursuant to the section. The penalty shall be $25 for each day that such failure occurs or continues.

Meet conditions set forth in city permits. The penalty shall be $25 for each day such failure continues.

Comply with construction, operation or maintenance standards set forth in this chapter. The penalty shall be $100 for each day that such failure occurs or continues.