San Francisco County Municipal Code Art. I Franchise Procedure

Sec. 11.1. Definitions. Sec. 11.2. Board Authority to Issue Franchises. Sec. 11.3. Franchise Required. Sec. 11.4. Exceptions to Franchise Requirement. Sec. 11.5. Failure to Obtain a Franchise. Sec. 11.6. Existing Franchises. Sec. 11.7. Continued Use after Expiration of Franchise. Sec. 11.8. No Exclusive Franchises. Sec. 11.9. Utility Conditions Permit. Sec. 11.10. Filing of Proposal. Sec. 11.11. Proposal Fee. Sec. 11.12. Proposal Contents. Sec. 11.13. Proposal Review Procedure. Sec. 11.14. Transfer Proposals. Sec. 11.15. Cable System Renewal Proposals. Sec. 11.16. Franchise Revocation. Sec. 11.17. Termination. Sec. 11.18. Removal of Facilities. Sec. 11.19. Foreclosure/Assignment for Creditor's Benefit/Appointment of a Receiver. Sec. 11.20. Confidentiality of Proprietary Information.

Pursuant to Charter Section 16.111, the Board has the power by ordinance to grant any Person a Franchise, or renew, extend, transfer, or amend a Franchise, to authorize use of the Public Rights-of-Way to provide service. This Chapter 11 sets forth the procedural and substantive rules the Board will apply in exercising this power. Nothing in this Chapter may be deemed or construed to compel the grant of a Franchise. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

Except as provided in Section 11.4 below, no Person may construct, install, or operate Facilities in the Public Rights-of-Way, or provide Service using any Facilities installed in the Public Rights-of-Way, without a Franchise that authorizes each and every Service provided. Any Person using Facilities owned by another Person to provide Service, whether by lease or other arrangement, shall be required to obtain a Franchise pursuant to this Chapter. A Grantee may, at any time and pursuant to this Chapter, apply to expand the scope of its Franchise, subject to appropriate conditions, or apply for a separate Franchise to provide other Services. The fact that a Person uses Facilities to provide Service not requiring a Franchise does not obviate the need to obtain a Franchise where the Facilities are also used to provide other Services. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

Consistent with the requirements of due process, a Person's failure to obtain a Franchise as required by this Chapter may, in the City's discretion, result in: (1) Forfeiture, by operation of law, of the Person's Facilities located in the Public Rights-of-Way that are not authorized by an existing Franchise; and/or (2) A requirement that the Facilities be removed, and that penalties and damages be paid. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

Grantees of Franchises existing as of the effective date of this Chapter shall, in addition to all the obligations and duties prescribed by the terms of their existing Franchises, be subject to the substantive and procedural requirements herein, except as prohibited by Applicable Law. Nothing herein is intended to invalidate a lawful, existing Franchise or to waive any obligations imposed by such a Franchise. Notwithstanding the foregoing, provisions of this Chapter that expressly refer to a "Franchise granted pursuant to this Chapter" shall not apply to Franchises initially granted prior to the effective date of this Chapter. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

So long as a Grantee is seeking in good faith to renew a Franchise, upon expiration of a Franchise, the continued use by a Grantee of the Public Rights-of-Way shall continue on a month-to-month basis, for a maximum of twelve (12) months, under the same terms and conditions, and for the same consideration, as provided in the expired Franchise, unless the Franchise has been Revoked or unless otherwise determined by ordinance of the Board. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

A Franchise is nonexclusive and shall not explicitly or implicitly preclude the issuance of other Franchises or preclude the City from installing, constructing, operating, and/or maintaining its own Facilities. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

Any Person seeking to (1) obtain a Franchise; (2) Transfer a Franchise: (3) extend the term of an existing Franchise, (4) renew a Franchise, or (5) modify an existing Franchise to add new Services that are required to be authorized by a Franchise pursuant to this Chapter, shall submit a signed original of its Proposal and eleven (11) copies to the Clerk of the Board and nine (9) copies to the Department The Clerk of the Board shall make a Proposal available for public inspection. The Proposal must conform to all of the requirements of this Chapter. Requests for other types of Franchise modifications may be processed by the Department without a Proposal, and submitted to the Board for approval. However, nothing herein shall prevent the Department from requiring a Proposal in the event the Department determines, based on the nature of the requested modification, that the public interest would best be served by the submission of a Proposal pursuant to this Article. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

Upon Termination of a Franchise, the City may, by ordinance, acquire ownership or effect a Transfer of the Facilities, or any portion thereof, for which the Grantee shall be compensated, consistent with Applicable Law. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

Upon Termination of a Franchise, or abandonment of any portion of the Facilities, the City may require a Grantee, by Board resolution, to remove all or a portion of its Facilities at Grantee's expense and to restore City property as required by City and consistent with Applicable Law. If the Grantee fails to do so within a reasonable period of time, the City shall be entitled to remove the Facilities and restore City property on behalf of Grantee and charge the reasonable costs actually incurred, including but not limited to administrative costs, to Grantee. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

RECEIVER. The following events shall constitute a Material Breach of this Chapter or a Franchise: (1) Foreclosure or other judicial sale of any of the Facilities, equipment or property of a Grantee in the Franchise Area necessary for the provision of the Service for which the Franchise was granted where the Bona Fide Institutional Lender does not enter into an operating agreement for the use and operation of the Facilities with an Operator approved by the City in writing, in a form acceptable to the City Attorney; or (2) An assignment for the benefit of creditors; or (3) The appointment of a receiver or trustee to take over the business of the Grantee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)