UTILITY FRANCHISE AGREEMENT

Jacksonville Ordinance Code tit. XXI, ch. 711, pt. 3

in effect

Jacksonville Ordinance Code § 711.301 Part designation.

Sec. 711.301. - Part designation. This Part shall be known and may be hereafter referred to as the "utility franchise agreement" provisions of the City relative to the use of City rights-of-way for certain utility installations. This Part shall not apply to a communications service provider governed by Part 4 of this Chapter. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.302 Intent.

Sec. 711.302. - Intent. It is the intent of the City to provide a process whereby any public utility desiring to occupy any City rights-of-way may do so pursuant to an agreement protective of the public convenience and public investment and public property interests in said rights-of-way. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.303 Definitions.

Sec. 711.303. - Definitions. The following words, terms, and phrases (whether capitalized or not) listed in alphabetical order, where used in this Part, shall have the meaning ascribed to them in this Part, and in the definitions Section of Part 1 of this Chapter, unless different meanings are clearly indicated by the context. When not inconsistent with the context, words used in the present tense shall include the future, words in the plural include the singular, and words in the singular include the plural. The word "shall" is always mandatory. Administrative agreement means a franchise agreement entered into by the Mayor and Corporation Secretary on behalf of the City and a grantee. The Mayor and Corporation Secretary are hereby delegated the authority by the City Council to enter into administrative agreements in conformity with this Chapter. Defined utility means electric, gas, or water/sewer utilities as defined in this Section. Director means the Director of the City's Department of Public Works, or their designee. Electric utility means any municipal electric utility, investor-owned electric utility, or rural electric cooperative which owns, maintains, or operates an electric generation, transmission, or distribution system within the City's rights-of-way. Franchise means the rights granted under this Chapter by the City to a grantee by which the City authorizes such grantee to utilize the City's rights-of-way to erect, construct, reconstruct, dismantle, electric, gas, water/sewer system, or any activity deemed a "Utility" by the rights-of-way committee of the City. Any franchise awarded by an ordinance or administrative agreement in accordance herewith shall be a nonexclusive franchise unless otherwise specified herein or therein. Franchise agreement means the written contract for nonexclusive use of any portion of City rights-of-way to place facilities owned or used by a "grantee" (as herein defined), which facilities serve two or more parcels of land. As authorized in this Part, a franchise agreement is not hereby defined to be in lieu of or to in any way impact the need for either an occupancy agreement/registration as covered in parts 2 and 4 of this Chapter, or a permit as may be required by City Code. Gas utility means every person, corporation, partnership, association, or other legal entity and their lessees, trustees, or receivers supplying gas (natural, manufactured, or similar gaseous substance) to or for the public within the City; including any dependent or independent special natural gas district, any natural gas transmission pipeline company, or a person supplying liquefied petroleum gas, in either liquid or gaseous form, which owns, maintains, or operates a transmission, or distribution system within the City's rights-of-way. Grantee means a utility or any person to whom the City shall determine to give a franchise. Grantor or City means the City as represented by the City Commission or any delegate acting within the scope of its delegated jurisdiction. Public way means the surface of and the space above and below any public street, road, highway, freeway, lane, path, alley, court, sidewalk, parkway, or any publicly dedicated rights-of-way now or hereafter existing as such within the City and over which the City exercises ownership or effective control. Utility means a person/grantee having/requesting any significant use (as such "significant use" is determined by rule of the Director in accordance with Part 5 of this Chapter, but shall include uses of the City rights-of-way by the grantee for the purpose of conducting grantee's business with third parties) of City rights-of-way who shall receive a franchise only by ordinance of the City Council upon a recommendation to do so by the Director or upon an ordinance of the City Council as introduced by a Council Member. Water/sewer utility means and shall include any plant, wells, pipes, tanks, reservoirs, system, facility, or property used or useful or having the present capacity for future use in connection with the obtaining and supplying water/sewer and alternative water/sewer supplies, including, but not limited to, reclaimed water/sewer and water from aquifer storage and recovery and desalination systems, for human consumption, fire protection, irrigation, consumption by business, or consumption by industry, and shall also include any plant, system, facility, or property used or useful or having the present capacity for future use in connection with the collection, treatment, purification, or disposal of sewage, or reuse of wastewater, and without limiting the generality of the foregoing definition shall embrace all necessary appurtenances and equipment and shall embrace treatment plants, pumping stations, intercepting sewers, pressure lines, mains, and all necessary appurtenances and equipment deemed necessary or convenient for the operation. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.304 General authority and power to grant franchise agreement.

Sec. 711.304. - General authority and power to grant franchise agreement. (a) To protect and promote the health, safety and general welfare of the citizens of the City and to preserve the necessary control and monitoring of the occupation and use of the City's rights-of-way, on and after the effective date of this Part (or not to exceed 120 days, or April 1, 2002 for a government owned "Utility" as defined in Part 3 herein, after the effective date of this Part if the Director deems necessary a delayed enforcement) no person conducting business as a defined utility, or as a utility shall occupy or use any City rights-of-way for the purpose of installing any wire, pipe or other material for the business purposes of the person without a franchise agreement. For defined utility or utility installations serving two or more parcels of land, no person or their agent (i.e. contractor, etc.) shall be allowed to pull permits (pursuant to City Code) for occupancy of City rights-of-way unless and until said person has a franchise agreement. The Director is authorized and empowered to grant and execute a franchise agreement in accordance with the terms of this Part. Any contractor or other agent acting on behalf of a person having a franchise agreement must have a letter from said person describing the scope of the proposed "use" of City rights-of-way and specifying that said agent is authorized to act on the person's behalf, all "use" being subject to all terms of the occupancy agreement. Every occupancy agreement granted is conditioned upon the person paying the fees required in this Part when due and complying with the terms of the occupancy agreement. The Director may suspend and revoke the occupancy agreement and right to pull permits(s) upon any default by the person upon written notice as set forth in the occupancy agreement further described in this Part. (b) The fees required by this Part shall not be applicable to any unit of federal, State, or City government or any other body politic as established by law and exempt from the payment of said fees by State or federal law or court order, it being intended that the payment of franchise fees required pursuant to this Part shall not be payable by another body politic or municipality operating a "Utility" within the corporate limits of one of the Beaches or Baldwin, but that such payment shall be required of any body politic or municipality for any such "Utility" services within the City of Jacksonville's corporate limits and not within the corporate limits of one of the Beaches or Baldwin. (c) The grant of an occupancy agreement or franchise agreement shall not relieve, limit or alter a person's obligations to obtain and maintain any license or permit required by the City Code or other applicable law to carry on the person's business. (Ord. 2001-427-E, § 2; Ord. 2001-1297-E, § 1)

Jacksonville Ordinance Code § 711.305 Procedure for granting franchise agreement.

Sec. 711.305. - Procedure for granting franchise agreement. Application submission. See Part 1 of this Chapter. An applicant must have rights-of-way committee approval of their application in order to enter into a franchise agreement. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.306 Franchise agreement term, conditions and form.

Sec. 711.306. - Franchise agreement term, conditions and form. (a) Term. The franchise agreement shall be granted for a term expiring on December 31 of the next even numbered year, with the initial term being from the date of execution by the Director until December 31 of said even numbered year, renewable thereafter for two-year periods. In the event that the grantee desires a term of years in excess of the renewable biannual terms set forth herein, said franchise shall be subject to approval of the City Council. (b) Conditions. Each franchise agreement shall be conditioned upon the faithful performance of all duties and requirements imposed by existing law, this Chapter, and rules established by the Department (including, but not limited to rules pertaining to City projects on City-owned properties and rights-of-way which require the person, in a timely manner, to: 1. participate in design coordination meetings when either the City's project or the person's occupancy will be impacted; 2. provide accurate horizontal and vertical information on the person's facilities to assist in design phase and construction phase conflict resolution; 3. assist the City in developing utility relocation schedules; and 4. reimburse the City for delay costs resulting from the person's failure to relocate their facilities within the time frame provided herein or in the project relocation schedule). Failure to so perform including, but not limited to not making or reimbursing the costs of all necessary repairs to City property resulting from damage caused by the person's installation and maintenance of facilities covered by an occupancy agreement, failure to abide by Department rules, not being current in the payment of all applicable franchise fees, etc., shall be grounds for the Director to notify the person that their occupancy agreement will not be renewed and that all authorization to occupy City rights-of-way shall terminate and all installations be removed within 90 days of said written notice. (c) Form. The form of the franchise agreement shall be as adopted and approved by the Director (pursuant to the rule adoption process of Part 5 of this Chapter) and on file with the Council Secretary. Revisions to the form shall be placed on file with the Council Secretary and any outstanding occupancy agreements shall be made subject to said revisions upon their renewal. The form shall be sufficient to provide the Department with all information needed to monitor and protect the safety of City rights-of-way and may be coordinated with other City Code permitting requirements and the indemnification and insurance requirements pursuant thereto or to Part 2 hereof. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.307 Renewal/fees waived.

Sec. 711.307. - Renewal/fees waived. The minimum biannual (and initial term) franchise agreement term for any defined utility or utility shall be from the effective date for the initial portion of the biannual term of at least one year through January 1 of the next year and on or before January 1 for each biannual term thereafter. Any fees that might otherwise be payable pursuant to this Section shall be waived in consideration for fees payable to the City pursuant to the "amount and payment of fees" Section of this Part 3. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.308 Indemnification, bond and insurance.

Sec. 711.308. - Indemnification, bond and insurance. Each applicant (or their agent/contractor) shall execute (within the form of the occupancy agreement or by separate agreement) an indemnification agreement and provide evidence of bonding and insurance coverage in a form and amount that meets the requirements of the City Code for the pulling of a permit(s). Compliance with the provisions of Part 4 of this Chapter with reference to bond/insurance shall be deemed compliance with this Section. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.309 Severability.

Sec. 711.309. - Severability. If any Section or provision of this Part is held invalid or unconstitutional by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions hereof which are declared severable. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.310 Reserved.

Jacksonville Ordinance Code § 711.311 Alternative remedies.

Sec. 711.311. - Alternative remedies. No provision of this Chapter shall be deemed to bar the right of the City to seek or obtain judicial relief from a violation of any provisions of this Chapter, the franchise, or any rule, regulation, requirement or directive promulgated under this Chapter, whether administratively, judicially or both. Neither the existence of other remedies identified in this Chapter nor the exercise thereof shall be deemed to bar or otherwise limit the right of the City to recover fines, penalties or monetary damages (except where liquidated damages are otherwise prescribed) for such violation by the grantee or judicial. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.312 Existing franchises.

Sec. 711.312. - Existing franchises. As used in this Section, "Director" shall mean the City's Director of Finance and Administration or their designee. Any existing franchises, including amendments and extensions thereof, in existence on the effective date of this Chapter shall remain in effect. To the extent reasonably possible, the Director shall negotiate with said existing franchise holders so as to establish procedures similar to those established in this Chapter as to the following items: (a) Payment of all franchise fees to be made to the Director; (b) Payments due the City under this provision shall be computed quarterly, for the preceding quarter, as of January 1, April 1, July 1 and October 1. Each quarterly payment shall be due and payable no later than 30 days after the relevant computation date. Each payment shall be accompanied by a brief report to the Director showing the basis for the computation and such other relevant facts as may be required by said Director. Annual financial reports, acceptable to the Director, shall be submitted within 30 days after completion of the grantee's annual audit. Unless more detailed information is required by said Director, the grantee shall (on an annual basis) provide said Director with a revenue letter audited by grantee's independent certified public accountants verifying revenues generated in the Jacksonville franchise area; and (c) All financial and other reports to be sent to the Director. This Chapter shall apply to such existing franchises upon their renewal. (Ord. 2001-427-E, § 2; Ord. 2016-140-E, § 16)

Jacksonville Ordinance Code § 711.313 Required agreements/registration.

Sec. 711.313. - Required agreements/registration. Unless otherwise indicated to the contrary, as used in this Section, "Director" shall mean the City's Director of Finance and Administration. No defined utility or utility shall be allowed to occupy or use the City rights-of-way in the City without a franchise in accordance with the provisions of this Chapter. Other than as covered by existing franchises, existing lines, pipes and other facilities lawfully placed in the rights-of-way, pursuant to an existing franchise, shall be permitted to remain. The Directors are hereby authorized and instructed to secure written agreements covering installations existing as of the effective date of this Chapter by the occupancy (public works), registration (finance) and franchise (finance) agreement(s) registration authorized in this Chapter. Any person or grantee which fails to cover said installation by the aforesaid agreements/registration shall have their permit, license, or other authority to use City rights-of-way revoked upon 90 days written notice from the Director of Public Works and said Director shall undertake all reasonable means to secure the removal of all such installations from City rights-of-way. (Ord. 2001-427-E, § 2; Ord. 2016-140-E, § 16)

Jacksonville Ordinance Code § 711.314 Authority to grant; terms and conditions of granting.

Sec. 711.314. - Authority to grant; terms and conditions of granting. (a) If the City shall grant to a grantee a nonexclusive franchise to construct, maintain, and reconstruct, a system within the City or a renewal of an existing franchise, the franchise shall constitute a right to utilize rights-of-way for the placement of grantee's facilities as required by the provisions of this Part and the franchise agreement. A franchise may be revoked if grantee does not abide by and perform in accordance with the provisions of this Part (including any amendments to this Part), the franchise, and such rules and regulations as may be adopted pursuant to Part 5 of this Chapter. Any franchise granted under the terms and conditions contained in this Part shall be consistent with federal laws and regulations and State general laws and regulations. If a conflict occurs in the terms and conditions of the franchise and the terms and conditions on which the City can grant a franchise, the general law or statutory requirements shall, without exception, control. Any franchise granted is hereby made subject to the general ordinance code provisions in effect in the proper exercise of the City's municipal and County home rule and police powers. (b) Neither this Chapter as a whole, nor any of its parts, portions or terms, shall be construed as granting or intending to grant to a grantee a franchise to use the public ways of the City, for any other than the one specified on the franchise granted or any other uses not specified herein; but nothing herein shall preclude a grantee from entering into a contract for the use of any portion of the grantee's system with any person, firm, partnership or corporation. The grantee shall include revenues derived from such contract and from the use of the system for purposes of calculating franchise fees to the extent consistent with applicable law. Any person, firm, partnership or corporation, whether lessee or not, if placing cable or facilities in the rights-of-way must first obtain an appropriate franchise from the City and obtain all required certifications from the State prior to utilizing the rights-of-way. (c) Neither this Chapter as a whole, nor any of its parts, portions or terms, shall be construed as prohibiting the City from including internet service fees as recurring local service revenues if internet service is determined to be a telecommunications company service. (d) Nothing in this Chapter or a franchise granted hereunder shall vest in grantee any property rights in City-owned property, nor shall the City be compelled to maintain any of its property any longer than, or in any fashion other than, in the City's judgment its own business or needs may require. (e) It is understood that there are within the City various streets which the City does not have the unqualified right to authorize grantee to use, because of reservations in favor of the dedicators or because of other legal impediments; therefore, in granting a franchise, the City does not warrant or represent as to any particular street or portion of a street that it has the right to authorize grantee to install or maintain portions of its system therein, and in each case the burden and responsibility for making such determination in advance of the installation shall be upon grantee. Upon request, the City shall make available to grantee such information as to a particular property as it may have with respect to such reservations or other impediments. (f) The City, in the proper exercise of its municipal powers and duties with respect to its City rights-of-way, shall have access to any manholes of the grantee in such City rights-of-way. The City will provide grantee prior notice and an opportunity to be present unless determined by the City to be an emergency situation. (g) All grantees shall abide by and perform in accordance with the provisions of this Part, including any amendments to this Part and this Chapter and such additional rules and regulations as the City may adopt pursuant to Part 5 of this Chapter. In accepting the franchise, the grantee acknowledges that at all times during the term of this franchise, its rights shall be subject to all lawful exercise of the police power by the City, and to such reasonable regulation of City rights-of-way as the City shall hereafter by resolution or ordinance provide in the interest of the health, safety and welfare of the public. Any inconsistency or ambiguity between the provisions of this Chapter and any lawful exercise of the City's police power shall be resolved in favor of the latter. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.315 Franchise nonexclusive.

Sec. 711.315. - Franchise nonexclusive. Any franchise granted shall be nonexclusive (unless specifically stated otherwise on the franchise agreement). The City specifically reserves the right to grant, at any time, such additional franchises for any system as it deems appropriate; provided, however, that such additional grants shall not operate to materially modify, revoke or terminate any rights previously granted to any grantee. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.316 Applications.

Sec. 711.316. - Applications. (a) Applications for a franchise or renewal thereof shall be submitted to the Director and shall include, but not be limited to, the following: (1) The name of the applicant, the address and telephone number of the applicant, and the applicant's Florida Sunshine State one-call registration number. (2) If applicable, a copy of the applicant's current certificate of authorization issued by the Florida Public Service Commission or the Federal Communications Commission, as applicable. (3) A certificate of insurance verifying workers' compensation, general liability and property damage insurance coverage or proof of self-insuring status which demonstrates adequate financial resources to defend and cover claims, in compliance with levels of coverage specified hereinafter. (4) Name of registered agent and incumbency certificate of authorized officer to bind the applicant. (5) The type of services (or other uses, water/sewer, etc.) that the facilities within the rights-of-way will be used to provide. (b) All grantees shall inform the City in writing of any change to the above information within 30 days following the date on which the grantee has knowledge of the change. (c) The City Council delegates to the designated Director the authority to administratively approve applications that comply with the requirements of this Part. (d) Standards for award or denial of application. The City Council, or where appropriate the designated Director, shall award a franchise (or requested franchise renewal) to an applicant where it is determined, based on the evidence in the record, that the applicant has complied with the requirements of this Chapter. Any denial by a Director shall, if requested by the applicant, be submitted by the Director to the City Council for its review of the record as considered by the Director. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.317 Grant procedure.

Sec. 711.317. - Grant procedure. All franchise applications when filed shall be available for public inspection at the designated Director's office and at such other places designated by the Mayor. If a franchise is sought to be granted by ordinance, the ordinance adoption process set out by Council rules and by general law must be followed, including public notice and public hearings. The need for public hearings may be reduced or eliminated where the City Council provides a method of administrative approval for applications. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.318 Publication costs.

Sec. 711.318. - Publication costs. The applicant shall assume the cost of publication of any ordinance to grant a franchise, as such publication is required by law, and such is payable prior to final consideration of the request by the City Council. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.319 Duration.

Sec. 711.319. - Duration. The term of any franchise shall be set out in the franchise agreement if awarded by an ordinance. The initial term of any franchise shall not exceed five years (with possible renewal terms not to exceed five years, subject to approval by the designated director) if awarded by administrative agreement. Any franchise may be terminated sooner as provided in this Part. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.320 Acceptance of franchise.

Sec. 711.320. - Acceptance of franchise. (a) The grantee expressly agrees that upon its acceptance of the franchise it does so relying upon its own investigation and understanding of the power and authority of the City to grant the franchise. The grantee, by accepting the franchise, acknowledges that it has not been induced to accept same by any promise, verbal or written, by or on behalf of the City or by any third person regarding the franchise not expressed therein. The grantee further pledges that no promise or inducement, verbal or written, has been made to any City employee or official regarding receipt of the franchise. (b) The occupation, or continued occupation, of the City's rights-of-way for the operation of a system for at least 120 days after the effective date of this Chapter, even without written acknowledgment by the grantee, shall constitute acceptance by a grantee of a franchise issued pursuant to the provisions of this Chapter. However, the Director is authorized to initiate action to secure the removal from City rights-of-way of facilities not covered by a written acknowledgment should such action be deemed by the Director to be in the City's best interest. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.321 Amount and payment of fees.

Sec. 711.321. - Amount and payment of fees. (a) The following fees shall be collected by the Director of Finance and Administration, or his designee, (with assistance from City Departments as required by said Director). Payment of all franchise fees to be made to the Director. Payments due the City under this provision shall be computed quarterly, for the preceding quarter, as of January 1, April 1, July 1 and October 1. Each quarterly payment shall be due and payable no later than 30 days after the relevant computation date. Each payment shall be accompanied by a brief report to the Director showing the basis for the computation and such other relevant facts as may be required by said Director. Annual financial reports, acceptable to the Director, shall be submitted within 30 days after completion of the grantee's annual audit. Unless more detailed information is required by said Director, the grantee shall (on an annual basis) provide said Director with a revenue letter audited by grantee's independent certified public accountants verifying revenues generated in the Jacksonville franchise area. All financial and other reports shall be sent to the Director. As used in this Section 711.321, "gross sales" includes all payments received by a utility for the sale of electricity, water, natural gas or wastewater service or for services directly related to the provision of those products, including the transportation, transmission, delivery or distribution of those products within the corporate limits of the City and including any customer charges or facilities charges. The fees are as follows: (1) Telecommunications: Not applicable, as governed by registration in Part 4 of this Chapter. (2) Gas system: The grantee, in consideration of the privilege granted under the franchise for the use or occupancy of a gas system within the public ways of the City, and the administration of said uses by the City, shall pay to the City a sum equal to five percent of the gross sales of the gas system within the municipal limits of the City. The City shall be authorized to unilaterally amend this Chapter and increase or decrease the franchise fee provided for herein and in any franchise agreement to the maximum franchise fee authorized by the laws of the state; provided that the City makes similar increases or decreases in the franchise fees for all gas system franchisees. (3) Electric system: The grantee, in consideration of the privilege granted under the franchise for the use or occupancy of an electric system within the public ways of the City and the administration of said uses by the City, shall pay to the City a sum equal to five percent of the gross sales of the electric system within the municipal limits of the City, and is hereby established at five percent. However, the preceding payment shall not be applicable to JEA as a result of JEA's financial contributions to the City. The City shall be authorized to unilaterally amend this Chapter and increase or decrease the franchise fee provided for herein and in any franchise agreement to the maximum franchise fee authorized by the laws of the state; provided that the City makes similar increases or decreases in the franchise fees for all electric system franchisees. (4) Water/sewer system: The grantee, in consideration of the privilege granted under the franchise for the use or occupancy of a water/sewer system within the public ways of the City and the administration of said uses by the City, shall pay to the City a sum equal to five percent of the gross sales of the water/sewer system within the municipal limits of the City. However, the preceding payment shall not be applicable to the Water and Sewer Expansion Authority or to JEA as a result of JEA's financial contributions to the City. The City shall be authorized to unilaterally amend this Chapter and increase or decrease the franchise fee provided for herein and in any franchise agreement to the maximum franchise fee authorized by the laws of the state; provided that the City makes similar increases or decreases in the franchise fees for all water/sewer system franchisees. (5) Cable television: Not applicable, as certain economic elements governed by registration in Part 4 of this Chapter and other elements governed by City Code Chapter 710. (6) Other utility systems: Utility entities not set forth in items (1) through (5) above will be assessed such fees as may be recommended by the Director (with assistance from the Director of Finance and Administration) and approved by the City Council. (b) Within 30 calendar days after the close of each quarter, the grantee shall pay the franchise fee as provided in subsection (a) of this Section (for the purposes of this Chapter, the City's municipal limits excludes the beaches and Baldwin) and file with the City's Director of Finance and Administration a statement, signed by an authorized accountant or financial representative of the grantee, showing the calculation of the franchise fees. Acceptance of any franchise fee payment shall not be deemed a waiver or release of any claims the City may have for additional sums, nor be construed as an accord that the amount paid is correct. (c) The sums of money to be paid by the grantee to the City under this Section are compensation and consideration for the use or occupancy by the grantee of the City's public ways for the construction, maintenance and operation of the system and are not taxes as allowed by the Florida Constitution, the general or special laws of the State, or any other ordinances of the City. The grantee shall at all times continue to be subject to ad valorem taxes (FS § 166.211) and such other taxes, charges or fees as may be lawfully authorized by the Florida Constitution, the general or special laws of the State, the provisions of the Municipal Home Rule Powers Act (FS Chapter 166) or the ordinance code or any ordinances of the City. (d) The grantee shall make available to the City or its authorized representative or agent, during normal business hours, and upon written notice, the books, records, and accounts and other documentation of the grantee (hereinafter collectively referred to as the "reports") that, as reasonably determined by the City, are necessary to audit and determine the accuracy of the franchise fee payment. In the event the reports are not made available to the City in the City's City hall (St. James Building), the grantee shall reimburse the City for the reasonable travel expense of the City's representative resulting from such representative's travel to the location where the reports are maintained and shall permit the City to make and remove copies of the reports, including computer printout or other data. Upon request by the City, or its designated representative, the grantee shall provide a copy of its annual report to the Florida Public Service Commission (FPSC) and a copy of all regulatory assessment fee reports required to be filed with the FPSC to the extent any such report is relevant to a determination of the appropriate fee payable to the City under the franchise. The City, or its designated representative, shall have the right during the term of the franchise to examine the reports; provided, however, that the grantee shall be obligated to maintain its billing records only for the period of time required by the FPSC and that any examination conducted after such period shall be confined to the billing records then available. No later than 30 days after the request of the City or its representative, the grantee shall supply to the City a copy of the reports. Such copy shall be in the media requested by the City provided that it is economical and practical for the grantee to do so; however, in no event shall paper copies of requested documentation be deemed uneconomical or impractical. In the event of a third party request for information obtained by audit, the City may advise grantee so that grantee may seek such relief as it may obtain to prevent the disclosure of the information to the third party. The City shall have no obligation to seek such relief. Grantee shall indemnify and hold the City harmless for any cost and expense, including but not limited to reasonable attorneys fees, incurred by the City as a result of this paragraph, whether or not suit is filed. (e) The cost of the audit will be borne by the grantee if as a result of the audit, the City determines, and such determination is upheld if challenged, that the grantee has underpaid the franchise fees owed in an amount equal to or exceeding one percent of the franchise fees actually paid. (f) Any transaction or arrangement which has the effect of circumventing payment of required franchise fees and/or evasion of payment of franchise fees by noncollection, nonreporting of gross receipts, collection of revenues by affiliates, bartering or any other means which evade the actual collection of gross revenues by a grantee for services is prohibited. (Ord. 2001-427-E, § 2; Ord. 2001-1297-E, § 1; Ord. 2003-586-E, § 6; Ord. 2016-140-E, § 16)

Jacksonville Ordinance Code § 711.322 Interest on delinquent fees.

Sec. 711.322. - Interest on delinquent fees. Any franchise fees which remain unpaid after the dates specified herein shall be delinquent and shall thereafter accrue interest at the rate of 18 percent per annum compounded monthly (or whatever lesser rate as required by law) until paid to the City and the grantee shall reimburse the City for the actual out-of-pocket costs of the City, together with reasonable attorney's fees associated with collecting any sums of money that grantee is required to remit to the City pursuant to this Chapter. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.323 Transfers.

Sec. 711.323. - Transfers. (a) A franchise shall not be sold, assigned or transferred, either in whole or in part, or leased or sublet, nor shall title thereto, either legal or equitable or any right, interest or property therein, pass to or vest in any person (other than a parent corporation of grantee, a wholly-owned subsidiary of grantee or a corporation under common control with grantee) without the prior written consent of the City, which consent shall not be unreasonably withheld nor unduly delayed. No such consent shall be required for a mortgage, or other hypothecation as a whole or in part to secure an indebtedness. This shall not be construed as prohibiting grantee from granting to others the right to use capacity on the fiber optic cables facilities located in the rights-of-way, provided the revenues therefrom are included by grantee in calculating franchise fees for purposes of this Chapter. (b) The proposed assignee must meet all qualifications and requirements under the provisions of this Chapter. (c) The grantee shall promptly notify the City of any actual or proposed change in or transfer of or acquisition by any other party of more than 50 percent of the ownership interest of the grantee or the grantee's parent corporation. Every change, transfer, or acquisition of control of the grantee (other than to or by a parent corporation of grantee, a wholly-owned subsidiary of grantee or a corporation under common control with grantee) shall make the franchise subject to cancellation unless and until the City shall have consented thereto, which consent shall not be unreasonably withheld nor unduly delayed. The successor in interest shall meet all the qualifications and requirements under the provisions of this Chapter. (d) The consent or approval of the City to any transfer of the franchise shall not constitute a waiver or release of the rights of the City in and to the public ways, and any transfer shall by its terms, be expressly subordinate to the terms and conditions of a franchise. (e) In no event shall a transfer of ownership or control be approved without the successor in interest becoming a signatory to the franchise agreement. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.324 Indemnification by grantee.

Sec. 711.324. - Indemnification by grantee. Grantee's indemnification obligations to City shall be as set forth in Part 4 of this Chapter. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.325 Grantee insurance.

Sec. 711.325. - Grantee insurance. Grantee's insurance obligations to City shall be as set forth in Part 4 of this Chapter. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.326 Bonds and security fund.

Sec. 711.326. - Bonds and security fund. Grantee's bonds and security fund obligations to City shall be as set forth in Part 4 of this Chapter. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.327 Termination.

Sec. 711.327. - Termination. In the event the grantee violates any of the material provisions of this Chapter or the franchise the City, at its option, may forthwith declare a forfeiture and termination of, and revoke and cancel all rights granted under the franchise; provided that prior to termination by the City resulting from a violation by the grantee of any of the provisions of this Chapter, the grantee shall be served written notice by the City with respect thereto. The grantee shall have 30 days after service of such notice within which to cure the violation, or within which to present a plan, satisfactory to the City, to accomplish the same. A termination shall be declared by the City Council at public hearing upon a minimum of 15 days prior written notice to grantee of such hearing. In the event of such termination, the grantee shall, within a reasonable time following demand by the City, remove from the City rights-of-way or abandon the system and take such steps as are necessary to render every portion of the system remaining within the public ways of the City safe, and shall thereupon be deemed to have abandoned same in its entirety; and the same shall thereupon become the sole property of the City without payment to the grantee. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.330 Compliance with State and federal law.

Sec. 711.330. - Compliance with State and federal law. The grantee shall, at all times, comply with all laws of the State and federal government and the rules and regulations of any federal or State or administrative agency. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.331 Authority for use of City rights-of-way/permits.

Sec. 711.331. - Authority for use of City rights-of-way/permits. (a) Prior to the installation, placement or removal of any pipes, conduits, cables or pole lines, or the start of any other type of construction on the City rights-of-ways, the grantee shall, pursuant to the requirements of existing or subsequently enacted City ordinances, obtain all permits from, and pay all applicable fees to, the City's department of public works. Such permits shall set out the place, date and time where the conduits, cables, or pole lines, or other form of construction, are to be installed, or removed or where the construction is to be conducted. All permit applications submitted by the grantee shall contain plans showing known utility facilities and specifications, and letters of no conflict as provided by other utilities having facilities located where the grantee desires to place its conduits, cable or pole lines or begin construction. The grantee will not assert the existence of any vested rights if the City issues a permit. Further, issuance of a permit by the City shall not be construed by the grantee as a warranty that the placement by the grantee of its conduits, cables or pole lines, or the start of construction, is in compliance with any applicable rules, regulations or laws. In accordance with the provisions of Section 220, the grantee shall file with their permit applications to the City, bonds solely for the protection of the City with a surety company or trust company or companies as surety or sureties in the amount of 110 percent of the estimated cost of public improvements in the rights-of-way to protect the City from any and all damages or costs suffered or incurred by the City as a result thereof, including but not limited to attorney's fees and costs of any action or proceeding, and including the full amount of compensation, indemnification, cost of removal or abandonment of any property or other costs which may be in default, up to the full principal amount of such bond; and the condition shall be a continuing obligation during the entire term of any permit issued in accordance herewith and thereafter until the permittee shall have satisfied in full any and all obligations to the City which arise out of or pertain to the permit. (b) Any type of construction proposed by the grantee shall be subject to the City Code and other regulations of the City pertaining thereto, and shall be performed with the least possible interference with the use of the public way and to adjoining property owners and in compliance with the rules and regulations of the Florida Department of Transportation. (c) Any pipes, conduits, cables or pole lines installed or placed without first having obtained the permits hereinbefore provided for shall be removed within 30 days written notice by the City to remove the same and, in default of compliance with such notice, the conduits, cables or poles or other construction may be removed by order of the department of public works of the City and the cost of removal shall be borne and paid by the grantee, or in the event the City approves the placement of same after the fact, grantee shall obtain all requisite permits therefor and pay all applicable penalties and fees. (d) The grantee shall construct and maintain its system so as not to interfere with other lawful uses of the public ways. To the extent possible, grantee shall make use of existing poles and other facilities available to the grantee. The grantee may erect additional poles or construct other facilities so long as all applicable permits and consents are obtained. The grantee shall use its best efforts to individually notify all adjacent property owners affected by the proposed construction prior to the commencement of that work. Such notification shall not be required for emergencies necessitating immediate repairs. (e) Notwithstanding the grant to use public ways, no public way shall be used by a grantee if the City (Director of Public Works), in its sole discretion, determines that such use is inconsistent with the terms, conditions or provisions by which the public way was created or dedicated or is being used. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.332 Conditions on public way occupancy.

Sec. 711.332. - Conditions on public way occupancy. (a) All facilities, structures, lines and equipment erected by the grantee within rights-of-way of the City shall be so located to cause minimum interference with the proper use of streets, alleys and other public ways and places and to cause minimum interference with the rights and reasonable convenience of property owners who own property adjoining any such streets, alleys or other public ways and places. (b) The grantee shall not in any way displace, damage or destroy any sewer, water main, pipe or any other facilities belonging to the City, or to any third party who placed such facilities therein by express authority of the City, without the consent of the City, and the grantee shall be liable to the City or to the third party owner, as the case may be, for the cost of any repairs made necessary by any such displacement, damage or destruction and shall pay such costs within 30 days of grantee's receipt of an invoice for same. (c) The grantee shall, at its own cost and expense, replace and repair without delay any sidewalk, public way, alley, highway, waterway, bridge or any other public place that has been excavated, broken, removed, displaced or disarranged by the grantee in the conduct of its construction, maintenance and operation of any portion of the system, or as a result of the deterioration of any portion of the system, and restore the same to as good a condition as it existed prior to the grantee commencing its work. Upon failure of the grantee to do so after 30 days written notice by the Director of Public Works of the City, the City may make such repairs and replacements as it deems reasonably necessary, and the grantee shall pay the City upon demand all costs of such repairs and replacements. The grantee shall, to the satisfaction of the Director of Public Works, maintain any repairs it makes pursuant to this Section for a period of one year following the date of such repair. (d) The grantee shall use all proper and reasonable care in connection with any work which it may do in, over, under or across any public way, alley, highway, waterway, bridge, easement or other public place of the City in seeking to prevent harm, damage or injury to persons or property therefrom. (e) The grantee shall: (1) Produce, maintain and provide to the City a complete set of "as built" plans including, but not limited to, horizontal and vertical profiles within 45 days after completion of construction of any portion of the system; (2) Comply with all applicable laws, regulations and codes promulgated for the protection of the public including, but not limited to, the National Electric Code, the National Electrical Safety Code, the Florida Department of Transportation Utilities Accommodations Guide, the State of Florida Manual of Uniform Minimum Standards for Design Construction and Maintenance for Streets and Highways and such other design or regulatory manuals which regulate the insulation of structures within City rights-of-way; (3) Become a member of and maintain membership in a utility notification one-call system. (f) The grantee shall prohibit any officer, agent, employee, contractor or subcontractor which the grantee retains from removing or substantially trimming any tree or major portion thereof, either above, at, or below ground level, which is located within a public way without the prior written approval of the Department of Public Works (with the assistance of other City departments as may be required by the Director of Public Works). Each grantee shall be responsible for and shall indemnify, defend and hold harmless the City and its officers, agents and employees from and against any and all damages arising from or resulting from the removal, trimming, mutilation of or any injury to any tree proximately caused by the grantee or its officers, agents, employees, contractors or subcontractors. (g) In the event the City requires the grantee to adapt or conform any portion of the system, or in any way to alter, temporarily or permanently relocate or to change any portion of same to enable any other person to use a public way, avenue, alley, sidewalk, highway, bridge, easement or other public place of the City, the grantee shall be reimbursed by the person desiring or occasioning such change for any loss, cost or expense caused by or arising out of such change, alteration or relocation of any portion of the system. (h) In an emergency, as determined by the City, when the grantee or its representative is immediately unavailable or unable to provide the necessary immediate repairs to any portion of the system in the rights-of-way that is damaged or malfunctioning or to any faults or settled or sunken areas that may develop in any area over, around or adjacent to same, the City, when apprised of such an emergency, shall have the right to make repairs to protect the public health, safety and welfare, with the total cost of same being charged to the grantee. (i) In an effort to minimize the number of facilities within the City's public ways, the disruption of traffic and roadway destruction, the grantee shall endeavor to enter into joint use agreements with the City and other parties who are expressly authorized by the City to use its public ways provided such agreements are satisfactory to the grantee. Nothing herein contained shall mandate that the grantee enter into joint use agreements. (j) The grantee shall maintain and operate all parts of the system in good, safe and operable condition and shall at all times possess a valid certificate of authorization from the FPSC and/or other applicable jurisdiction(s). (k) Whenever, in case of fire or other disaster, it becomes necessary, in the reasonable judgment of the City, to remove or damage any of the grantee's facilities, no charge shall be made by the grantee against the City for restoration and repair reasonably necessary under the circumstances. The City shall endeavor to avoid or limit damage to the extent necessary under the circumstances. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.333 Erection of poles.

Sec. 711.333. - Erection of poles. No system franchise shall be deemed to expressly or impliedly authorize the grantee to construct or install poles or wire-holding structures within a public way for the purpose of placing cables, wires, lines or otherwise, without the written consent of the City for the public way within which the poles or structures are situated. Such consent shall be given by rights-of-way utilization permit upon such terms and conditions as the City may prescribe, which shall include a requirement that the grantee perform, at the grantee's sole expense, all tree trimming required to maintain the poles clear of obstructions. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.334 Underground construction.

Sec. 711.334. - Underground construction. The grantee shall comply with the following provisions of this Section unless otherwise approved by the City's Department of Public Works. Facilities shall be installed underground where existing power or telephone facilities are installed underground, and shall be relocated underground concurrently, at grantee's sole expense, where existing power or telephone facilities are hereafter so relocated. To the maximum extent practicable, all facilities shall be constructed underground. Poles, underground cables or other facilities of the communications system shall be placed between the property line and the curb line of all streets and avenues and shall not be within the roadway recovery area. Underground cable shall have consistent alignment, to the extent reasonable, parallel with the edge of pavement, at least a 36-inch depth of cover for and shall have at least two-foot horizontal clearance from other underground utilities and their appurtenances. The lowest wire on any poles placed in any portion of City rights-of-way used by vehicle traffic generally shall not be less than 18 feet from the ground (provided that, consistent with the within mentioned codes, wires placed over a driveway may be not less than 16 feet from the ground) and, whenever telephone and electric power wires cross each other, wires shall cross and be maintained in accordance with the National Electrical Code, the National Electrical Safety Code and the "Safety Rules for the Installation and Maintenance of Electrical Supply and Communication Lines" established by the Department of Commerce, Bureau of Standards of the United States in force at the time of the effective date of this Chapter and as amended. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.335 Relocation.

Sec. 711.335. - Relocation. Except in an emergency, the grantee shall, within 30 days after receipt of written notice from the City, adjust, alter, remove or relocate at its own cost and expense any portion of the system in the event the City, at the direction of the Director of Public Works, determines that such adjustment, alteration, removal or relocation is necessary for the City's use of its property and rights-of-way (including, but not limited to, the sale, abandonment or conveyance of any portion of said rights-of-way) or if same unreasonably interferes with the convenient, safe or continuous use or the maintenance, improvement, extension or expansion of any public street, alley, highway, waterway, bridge or easement in the City. In the event such removal, adjustment, alteration or relocation is incidental to work to be done by the City on a City road, such notice shall be given at the same time as the contract for the work is advertised or 30 days prior to the commencement of such work by the City. In the event such a contingency occurs and the company fails to cause the aforementioned adjustment, alteration, removal or relocation as required herein, the City may remove such portion of the system and the total cost and expense therefor shall be charged to the grantee. The City shall provide the grantee with a notice of such removal or relocation and order as provided for in F.S. § 337.404, or any subsequently enacted law of the State in the event it may charge the grantee for the cost and expense of removing such portion of the system pursuant to this Chapter. However, notwithstanding the preceding, each grantee's use of City rights-of-way shall be conditioned upon the faithful performance of all duties and requirements imposed by existing law, this Chapter, and rules established by the Department (including, but not limited to rules pertaining to City projects related to the rights-of-way which require the person, in a timely manner, to: 1. participate in design coordination meetings when either the City's project or the person's occupancy will be impacted; 2. provide accurate horizontal and vertical information on the person's facilities to assist in design phase conflict resolution; 3. assist the City in developing utility relocation schedules; and 4. reimburse the City for delay costs resulting from the person's failure to relocate their facilities within the time frame provided in the relocation schedule). (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.336 Movement of buildings.

Sec. 711.336. - Movement of buildings. Each grantee shall, upon request by any person holding a building moving permit, franchise or other approval issued by the City, temporarily remove, raise or lower its wire to permit the movement of buildings. The expense of such removal, raising or lowering shall be paid by the person requesting same, and a grantee shall be authorized to require such payment in advance. A grantee shall be given not less than five working days' written notice to arrange for such temporary wire changes. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.337 Removal.

Sec. 711.337. - Removal. (a) Upon discontinuance of operation of all or a portion of its system, or expiration or termination of a system franchise, if the franchise is not renewed and if an assignee does not purchase the system, the grantee may remove any underground cable from the public ways which has been installed in such a manner that it can be removed without trenching or other opening of the public ways along the extension of cable to be removed. The grantee shall not remove any underground cable or conduit which requires trenching or other opening of the public ways along the extension of cable to be removed, except as authorized by the City's Director of Public Works or as otherwise provided in this Section. The grantee shall remove, at the grantee's sole cost and expense, any underground cable or conduit by trenching or opening of the public ways along the extension thereof or otherwise which is ordered to be removed by the City based upon a determination, in the sole discretion of the City, that removal is required in order to eliminate or prevent a hazardous condition or promote future utilization of the public ways for public purposes. Any order by the City to remove a pipe, cable or conduit shall be mailed to the grantee not later than 30 calendar days following the date of expiration of the franchise. A grantee shall file written notice with the City Clerk not later than 30 calendar days following the date of discontinuance of operation of all or a portion of its system, or as applicable, expiration or termination of the franchise, of its intention to remove cable intended to be removed and a schedule for removal by location. The schedule and timing of removal shall be subject to approval and regulation by the Director of Public Works. Removal shall be completed not later than 12 months following the date of expiration of the franchise, or as applicable, the notice given by the grantee under this Section unless the grantee otherwise demonstrates that removal cannot be completed in that length of time, in which case a reasonable time frame shall be established by the City in consultation with the grantee. Underground cable and conduit in the public ways which is not removed shall be deemed abandoned and title thereto shall be vested in the City. (b) Upon expiration or termination of a franchise, if the franchise is not renewed and if an assignee does not purchase the system, the grantee, at the grantee's sole expense, shall either (1) remove from the public ways all aboveground elements of the system located in the rights-of-way, or (2) render every portion of the system in the rights-of-way safe, and abandon same in its entirety, and the same shall thereupon become the sole property of the City without payment to grantee. (c) Upon expiration or termination of a franchise, if the franchise is not renewed and if an assignee does not purchase the system, the grantee, at the grantee's sole expense, shall either (1) remove from the public ways all aboveground elements of the system located in the rights-of-way, or (2) render every portion of the system in the rights-of-way safe, and abandon same in its entirety, and the same shall thereupon become the sole property of the City without payment to grantee. (d) The grantee shall apply for and obtain such encroachment permits, licenses, authorizations or other approvals and pay such fees and deposit such security as required by applicable ordinance code/ordinances, regulations or policies of the City; shall conduct and complete the work of removal in compliance with all such applicable ordinance code/ordinances, regulations and policies; and shall restore the public ways to the same condition they were in before the work of removal commenced. The work of removal shall be completed not later than one year following the date of expiration of the franchise. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.338 Inspection; correction of defects in system; breach by grantee.

Sec. 711.338. - Inspection; correction of defects in system; breach by grantee. (a) The City shall be able to inspect the construction and location of the system by the grantee to insure the proper performance of the terms of this Chapter. (b) If the grantee should violate any of the terms of this Chapter or any of the rules and regulations as may hereafter be from time to time lawfully adopted, or any provision of the franchise agreement, the City shall promptly give the grantee written notice of the violation, breach, default or noncompliance. The grantee shall within 30 days of the date of written notice from the City substantially undertake and promptly correct such default, breach, violation or noncompliance and certify the same to the City. In the event that the grantee fails to substantially undertake such corrective action within 30 days of the date of such written notice and promptly complete the corrective action, the City may, notwithstanding any other remedies provided for in this Chapter, or otherwise available under law: (1) Make such correction itself and charge the cost of the same to the grantee; and/or (2) Secure the proceeds from any financial performance instrument posted by the grantee or impose the sum of $100 per day for each day as liquidated damages following the cure date that grantee fails to complete the corrective action; and/or (3) For a material breach of this Chapter or the franchise agreement, declare the grantee in default and terminate the franchise and rights granted under the franchise at public hearing before the City Council upon 15 days prior written notice to grantee. (Ord. 2001-427-E, § 2)

Jacksonville Ordinance Code § 711.339 Communications with regulatory agencies.

Sec. 711.339. - Communications with regulatory agencies. (a) Copies of all petitions, applications, communications and reports submitted by a grantee to the FPSC or any other state or federal regulatory commission or agency having jurisdiction in respect to any matters affecting construction and occupancy of the system in the rights-of-way shall, if requested by the City, be filed with the City. Copies of responses or any other communications from the regulatory agencies to a grantee likewise shall, if requested, be filed with the City immediately on receipt. (b) Copies of all certificates of approval issued by the FPSC or any other state or regulatory commission or agency having jurisdiction of construction or operation of the system shall be filed with the City and the information supplemented within 45 days after modification, renewal and or revocation of any such certificate(s). (Ord. 2001-427-E, § 2)

Source: City of Jacksonville, Ordinance Code and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/fl/jacksonville/codes/code_of_ordinances?nodeId=TITXXIPUWOUT_CH711CIRI-W_PT3UTFRAGFetched: 10/27/2026