HomeMy WebLinkAbout052 - 04/16/2019 - AMENDING ARTICLE I OF CHAPTER 6 OF THE CITY CODE REGARDING CABLE COMMUNICATIONS SYSTEMSORDINANCE NO. 052, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE I OF CHAPTER 6 OF THE CODE OF THE CITY
OF FORT COLLINS REGARDING CABLE COMMUNICATIONS SYSTEMS
WHEREAS, in 1978 the City Council approved Ordinance No.073, 1978, adding new
provisions to the City Code (now in Article I of Chapter 6) regarding cable communications
systems; and
WHEREAS, in March 1987 the voters approved Ordinance No. 204, 1986, amending the
City Charter to permit the City Council to grant franchises for use of the City's streets and other
property without a vote of the electorate as was previously required; and
WHEREAS, in 1992 the United States Congress passed the Cable Television Consumer
Protection and Competition Act of 1992 (the "Cable Act"); and
WHEREAS, Article I of Chapter 6 of the City Code regarding cable communications
systems and cable franchise agreements has not been amended to update or otherwise modify it
since 1978; and
WHEREAS, the City Attorney's Office and outside counsel for the City recently reviewed
Article I and concluded that it should be amended to update it and make it consistent with the
current language of the City Charter and the Cable Act; and
WHEREAS, the proposed amendments include the following:
Allowing an exception to the franchise requirement if the City Charter otherwise
permits it;
Changing the notice requirements for the public hearing to match the language of the
Charter;
Eliminating the five-year build out requirement, allowing the time period for build-out
to be negotiated in the franchise agreement;
In recognition of the fact that new cable franchisees may only be serving small portions
of the City, eliminating the requirement for franchisees to locate their main office and
head-end facilities in the City;
Limiting the City's right to purchase a franchisee's cable system upon expiration-of a
franchise term, as tinder the Cable Act franchisees are entitled to renew their franchise;
Providing options for how franchisees may provide security to the City for their
performance, and more flexibility to negotiate the appropriate amount of such security;
Deleting the provision on criminal violations for unauthorized connections to or
tampering with a franchisee's cable system, as (i) the City's cable provider has always
handled such violations civilly without law enforcement involvement, and (ii) this
Article is not the best location for this type of provision, if it were considered necessary,
because the Article is about how the City will manage a cable franchise, not about third
party criminal activities related to cable systems; and
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WHEREAS,the City Council has determined that the proposed amendments are in the best
interests of the City.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Article I of Chapter 6 of the City Code is hereby amended to read as
follows:
Sec. 6-1. - Operation requirements; rionexclusivity of franchise.
Except as otherwise provided in the Charter of the City of Fort Collins, no person shall own or
operate a cable television system in the City except by virtue of a franchise granted by the City.
No exclusive franchise shall ever be granted.
Sec. 6-3.Public hearing required; publication of notice.
The City Council shall award a franchise only after a public hearing on the application or proposal,
notice of which hearing shall be published in a local newspaper of general circulation once a week
for three (3) successive weeks immediately before the date of the hearing.
Sec. 64.Time limit for service.
Any franchise granted by the City shall specify the deadline by which service shall be made
available to occupied dwelling units of the City or other defined service area.
Sec. 6=5.Franchise agreement and registration.
An applicant awarded:a franchise by the City Council shall execute a franchise agreement with the
City. In addition, the franchisee shall, within sixty (00) days of the date of the execution of the
franchise agreement, submit to the City a copy of the franchisee's registration as a cable operator
within the City that has been filed with the Federal Communications Commission. The failure of
the applicant to file such registration within the time limits specified shall be grounds for
immediate revocation of any rights the applicant may have had in the franchise.
Sec. 6-7.Time limit for construction.
Within six (6) months of the granting of`a franchise pursuant to this Chapter, the franchisee shall
commence construction of any main office or head-end facilities it intends to locate in the City.
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Barring delays caused by factors beyond the control of the franchisee, the facilities shall be
completed and in operation within one (1) year of the granting of the franchise..
Sec.6-8.Periodic examination of performance.
Each franchisee shall upgrade its facilities, equipment and service so that its system is, within
reason, as advanced as a current.state of economically feasible production technology will allow.
In furtherance of this goal, on the fifth, tenth and fifteenth anniversaries of the granting of any
franchise pursuant to this Chapter, the City Council may conduct a public hearing to examine the
performance of the franchisee and to consider recommendations for changes in its facilities,
equipment and services.
See. 6-9.Local access for broadcasting.
Any cable system shall provide channels for public access; educational access, and government
access to meet the future cable-related needs of the community as negotiated in the cable franchise.
Sec.6-10. Right of City to purchase-system.
Upon expiration of the term of a franchise without renewal, or upon other termination thereof, the
City may, upon the payment of its fair valuation, purchase and takeover the property and plant of
the franchisee in whole or in part.
Sec. 6-11. Liability and indemnification of City.
The franchisee shall indemnify and hold harmless the City at all times during the term of the
franchise and specifically agree that it will pay all damages and penalties which the City may
legally be required to pay as a result of the granting of the franchise and the franchisee's operation
of the cable system.
Sec. 6-12. Performance bond or letter of credit.
Concurrent with its acceptance of a franchise, a franchisee shall file with the City Clerk and at all
times thereafter maintain, in full force and effect, a corporate surety bond or letter of credit in the
amount of up to one hundred thousand dollars ($100,000.) renewable annually and conditioned
upon the faithful performance of the terms and conditions of the franchise agreement. The City
Council may,in its sole discretion,waive said bond or letter of credit or reduce the required amount
thereof after five(5) years of operation of a.system under the franchise.
Sec. 6-15. Fees.
During the term of any franchise granted pursuant to this Chapter, the franchisee shall pay to the
City for the use of its streets, public places and other facilities, as well as the maintenance,
improvements and supervision thereof, an annual franchise fee in the amount to be determined by
the City Council in accordance with applicable law. This payment shall be in addition to any other
tax or payment owed to the City by the franchisee.
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Introduced, considered favorably on first reading, and ordered published this 19th day of
March, A.D. 2019, and to be presented for final passage on the 16th day of April, A.D. 2019.
Mayo
ATTEST`.
OF FORF
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SEAL "
cit cly ORAOO• .
Passed and adopted on final reading on the 16th day of April, A.D..2019.
Mayor
ATTEST:
OF FORT0O
SECityCIJA
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