§ 93-24. Application for grant of initial franchise.  


Latest version.
  • A. 
    Proposal. Any grantee that wishes to provide services to the Township shall submit a proposal for the grant of an initial franchise, and the proposal shall contain at the minimum:
    (1) 
    Name and address of the applicant and identification of the ownership and control of the applicant, including: the names and addresses of the 10 largest holders of an ownership interest in the applicant and affiliates of the applicant, and all persons with 5% or more ownership interest in the applicant and its affiliates; the persons who control the applicant and its affiliates; all officers and directors of the applicant and its affiliates; and any other business affiliation and cable system ownership interest of each named person.
    (2) 
    A demonstration of the applicant's technical ability to construct and/or operate the proposed cable system, including identification of key personnel.
    (3) 
    A demonstration of the applicant's legal qualifications to construct and/or operate the proposed cable system, including but not limited to a demonstration that the applicant meets the following criteria:
    (a) 
    The applicant must not have submitted an application for an initial or renewal franchise to the Township which was denied on the ground that the applicant failed to propose a system meeting the cable-related needs and interests of the community, or as to which any challenges to such franchising decision were finally resolved adversely to the applicant, within three years preceding the submission of the application.
    (b) 
    The applicant must not have had any cable television franchise validly revoked by any municipality within three years preceding the submission of the application.
    (c) 
    The applicant must have the necessary authority under Pennsylvania law to operate a cable system.
    (d) 
    A franchise will not be issued to an applicant that may not hold the franchise as a matter of federal law. An applicant must have, or show that it is qualified to obtain, the necessary federal licenses or waivers required to operate the system proposed.
    (e) 
    An applicant shall not be issued a franchise if, any time during the 10 years preceding the submission of the application, applicant was convicted of any act or omission of such character that the applicant cannot be relied upon to deal truthfully with the Township and the subscribers of the cable system, or to substantially comply with its lawful obligations under applicable law, including obligations under consumer protection laws and laws prohibiting anticompetitive acts, fraud, racketeering or other similar conduct.
    (f) 
    An applicant shall not be issued a franchise if it files materially misleading information in response to an RFP issued by the Township or intentionally withholds information that the applicant lawfully is required to provide.
    (g) 
    An applicant shall not be issued a franchise if an elected official of the Township holds a controlling interest in the applicant or an affiliate of the applicant.
    (h) 
    A statement prepared by a certified public accountant regarding the applicant's financial ability to complete the construction and operation of the cable system proposed.
    (4) 
    A description of the applicant's prior experience in cable system ownership, construction and operation and identification of communities in which the applicant or any of its principals have, or have had, a cable franchise or license or any interest therein.
    (5) 
    Identification of the area of the Township to be served by the proposed cable system, including a description of the proposed franchise area's boundaries.
    (6) 
    A detailed description of the physical facilities proposed, including channel capacity, technical design, performance characteristics, head-end and access facilities.
    (7) 
    Where applicable, a description of the construction of the proposed system, including an estimate of plant mileage and its location, the proposed construction schedule, a description, where appropriate, of how services will be converted from existing facilities to new facilities and information on the availability of space in conduits, including, where appropriate, an estimate of the cost of any necessary rearrangement of existing facilities.
    (8) 
    The proposed rate structure, including projected charges for each service tier, installation, converters and other equipment or services.
    (9) 
    A demonstration of how the applicant's proposal will reasonably meet the future cable-related needs and interests of the community, including descriptions of how the proposal will meet the needs described in any recent community needs assessment conducted by or for the Township and how the proposal will provide adequate public educational and governmental access channel capacity, facilities or financial support to meet the community's needs and interests.
    (10) 
    Pro forma financial projections for the proposed franchise term, including a statement of projected income and a schedule of planned capital additions, with all significant assumptions explained in notes or supporting schedules.
    (11) 
    If an applicant proposes to provide cable service to an area already served by an existing cable franchisee, the identification of the area where the overbuild would occur, the potential subscriber density in the area that would encompass the overbuild and the ability of the streets to accommodate an additional system.
    (12) 
    Any other information as may be reasonably necessary to demonstrate compliance with the requirements of this chapter.
    (13) 
    Information that the Township may request of the applicant that is relevant to the Township's consideration of the application.
    (14) 
    An affidavit or declaration of the applicant or authorized officer certifying the truth and accuracy of the information in the application, acknowledging the enforceability of application commitments and certifying that the proposal meets all federal and state law requirements.
    B. 
    (Reserved)
    Editor's Note: Former Subsection B, pertaining to application for an initial franchise, was repealed 3-8-2006 by Ord. No. 298.
    C. 
    (Reserved)
    Editor's Note: Former Subsection C, pertaining to the contents of an RFP for the grant of an initial franchise, was repealed 3-8-2006 by Ord. No. 298.
    D. 
    In evaluating an application for a franchise, the Township shall consider, among other things, the following factors:
    (1) 
    The extent to which the application has substantially complied with the applicable law and the material terms of any existing cable franchise for the Township.
    (2) 
    Whether the quality of the applicant's service under an existing franchise in the Township, including signal quality, response to customer complaints, level of services, billing practices and the like, has been reasonable in light of the needs and interests of the communities served.
    (3) 
    Whether the applicant has the financial, technical and legal qualifications to provide cable service.
    (4) 
    Whether the applicant's proposal is reasonable to meet the future cable-related needs and interests of the community, taking into account the cost of meeting such needs and interests.
    (5) 
    Whether, to the extent not considered as part of § 93-24C(4), the applicant will provide adequate public, educational and governmental access channel capacity, facilities or financial support.
    (6) 
    Whether issuance of a franchise is warranted in the public interest considering the immediate and future effect on the public rights-of-way and private property which would be used by the cable system, including the extent to which installation or maintenance as planned would require replacement of property or involve disruption of property, public services or use of the public rights-of-way and the effect of granting a franchise on the ability of cable to meet the cable-related needs and interests of the community.
    (7) 
    Whether the applicant or an affiliate of the applicant owns or controls any other cable system in the Township, or whether grant of the application may eliminate or reduce competition in the delivery of cable service in the Township.
    E. 
    If the Township finds that it is in the public interest to issue a franchise considering the factors set forth above, it shall issue a franchise, subject to the applicant's entry into an appropriate franchise agreement. If the Township denies a franchise, it will issue a written decision explaining why the franchise was denied. Prior to deciding whether to issue or not to issue a franchise, the Township may hold one or more public hearings or implement other procedures under which contends from the public on an applicant's proposal may be received. The Township also may grant or deny a request for a franchise based on its review of an application without further proceedings and may reject any application which is incomplete or fails to respond to an RFP. This chapter is not intended and shall not be interpreted to grant any applicant or existing franchisee standing to challenge the issuance of a franchise to another.
    F. 
    If the Township grants a franchise subject to the applicant's entry into a franchise agreement, the Township and the franchisee shall agree on the terms of a franchise agreement within 30 calendar days from the date of Township resolution granting the franchise. This period may be extended for good cause by the Township. If agreement is not reached with the Township within 30 calendar days from the date of the Township resolution granting the franchise, or if the period is not extended by the Township, the franchise will be null and void without further action by the Township. The Township shall approve or disapprove the proposed agreement by resolution or may direct that it be subject to further negotiation.
Amended 3-8-2006 by Ord. No. 298