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HomeMy WebLinkAbout1990-01-23 - AGENDA REPORTS - FRANCHISE ORD (2)AGENDA REPORT r" City Manager Approval Item to be presented by: UNFINISHED BUSINESS Ken Pulskamy DATE: January 23, 1990 SUBJECT: Franchise Ordinance 89-28 DEPARTMENT: City Manager BACKGROUND This item was on the Agenda of December 12, 1989, to introduce the franchise section (Title 4) of the Santa Clarita Municipal Code. It is now presented for second reading and adoption. This ordinance does not affect franchises granted by the City of Santa Clarita as indeterminate franchises or other franchises until their expiration. This document has been reviewed by the appropriate members of City staff. All comments from the staff members involved have been incorporated into this version. Title 4 is composed of Division 1 or basic franchise and Division 2 which addresses cable television systems. Throughout Title 4, the responsibility for administration of the ordinance is divided among the Director of Public Works and the Director of Finance. The separation was initiated to ensure that both aspects of the ordinance received appropriate attention. As with the County of Los Angeles Franchise Code, much of the City Ordinance is governed by the Public Utilities Code. The intent of the Basic Franchise Ordinance was to simplify the regulation of franchises yet not lose any of the authority to franchise. While the Basic Ordinance is the foundation for establishing a franchise, specific and, if necessary, more stringent language may be incorporated into individual franchise agreements. Major deviations from the Los Angeles County Ordinance include the elimination of sections regarding airports, electrical trains, electric motor coaches, street railways and specific provisions for oil franchises. , One significant addition of Section 4.04.370 provides for future undergrounding of facilities to the extent possible. Division 2, cable television franchise, has also been simplified, yet is designed to increase customer service. As with any cable television franchise, various provisions are governed by the Federal Cable Act and the Federal Communications Commission. Section 4.20.120 onward provides for expediting responses to customer complaints, strict reporting requirements and designation of fees and credits as line items on subscriber statements. In addition, section 4.20.071 specifically addresses City use of cable franchise equipment and facilities to provide public, educational and governmental programming. RECOMMENDATION That the City Council adopt Ordinance 89-28. ATTACHMENT Ordinance 89-28 Adopted: Agenda Item-.---/—. 0 ORDINANCE NO. 89-28 . A SUMMARY OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA.CLARITA, CALIFORNIA, AMENDING THE MUNICIPAL CODE TO ADD . TITLE 4 RELATING TO FRANCHISES SECTION 1. The Municipal Code for the City of Santa Clarita is amended to add Title 4, Franchises, to read as follows: TITLE 4. FRANCHISES - DIVISION 1 - Basic Franchises Chapter 4.01 Scope of Division Chapter 4.02 Definitions Chapter 4.04 General Regulations and Conditions Chapter 4.06 Compensation Chapter 4.08 Construction DIVISION 2 - Cable Television System Franchises Chapter 4.10 Definitions Chapter 4.12 General Requirements Chapter 4.14 Application for Franchise Chapter 4.16 Compensation Chapter 4.18 Construction of Facilities Chapter 4.20 Service, Rates and Consumer Protection SECTION 2. The provisions of Section 1 of this Ordinance specifically supercede Division 3, Division 3a, and Division 4 of Title 16 of the Los Angeles County Code previously incorporated by reference into the Santa Clarita Municipal Code. SECTION 3. The City Clerk shall cause a summary of this Ordinance to be published and a certified copy of the full text to be posted in the office of the Clerk at least five days prior to the City Council meeting at which the proposed Ordinance. is to be adopted. Within fifteen (15) days following the adoption of this Ordinance, the City Clerk shall again publish a summary of the Ordinance with the names of those City Councilmembers voting for an against the Ordinance and the City Clerk shall post in the office of the City Clerk a certified copy of the full text of the adopted Ordinance along with the names of those City Councilmembers voting for and against the Ordinance. • PASSED AND APPROVED this day of ; 1990. Jo Anne Darcy, Mayor rV66*116 George Caravalho, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF SANTA CLARITA ) I, George Caravalho , City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. 89-28 was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 12th day of December , 1989. That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the day of , 19909 by the following vote, to wit: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS George Caravalho, City Clerk • ORDINANCE NO. Sc)-2� AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING THE MUNICIPAL CODE TO ADD TITLE 4 RELATING TO FRANCHISES. THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. The Municipal Code for the City of Santa Clarita is amended to add Title 4, Franchises, to read as follows: -1- PDT/ORD96358 TBM/TITLE4 , 9 TITLE 4 FRANCHISES Division '1 BASIC FRANCHISES Chapter 4.01 SCOPE OF DIVISION 4.01.010 Applicability of Statutory Law. Nothing in this Division shall modify or supersede any provision of the general law for the state of California regarding the sale of franchises by the City, including Division 3 of the Public Utilities Code. 4.01.020 Basic Franchises. All franchises awarded by the City shall be awarded pursuant to this Division 1 unless the award of franchise is explicitly provided under some other provision of law. Chapter 4.02 DEFINITIONS 4.02.005 Director. "Director" means the Public Works Director of the City or assignee. 4.02.010 Facilities. "Facilities" means all property of the grantee, including service connections with the grantee's facilities, whether installed by the grantee or not, erected, constructed, laid, operated or maintained in, upon, over, under, along or across any highway pursuant to any right or privilege granted by the franchise. 4.02.020 Franchise pavment period. "Franchise payment period" is: A. If the franchise grants to a public utility or to a mutual water company a right not theretofore in existence, the fifth year after the effective date of the ordinance granting the franchise; or, at the option of the • TBM/TITLE4 • • grantee, any shorter period of time, and eachY ear there- after, during the life of the franchise. is B. In all other cases, including all franchises granted to persons who are neither public utilities nor mutual water companies, the first year after the effective date of the ordinance granting the franchise; or, at the option of the grantee, any shorter period of time immediately following the effective date of the said ordi- nance, and each year thereafter, during the life of the franchise. 4.02.030 Franchise remort Period. "Franchise report period" in all cases means the first year after the effective date of the ordinance granting the franchise; or, at the option of the grantee, any shorter Period of time immediately following the effective date of the said ordinance, and each year thereafter, during the life of the franchise. 4.02.040 Grantee. "Grantee" means the Person to whom the franchise is granted, and any person to whom it lawfully may be assigned. 4.02.045 Hiahway. "Highway" means that term as defined in the Streets and Highways Code for the State of California and over which the City has jurisdiction to grant franchises. 4.02.050 Main. "Main" means any pipeline, conduit, direct buried lire or any distributicn �aci_ity laid along or approximately parallel with and in any highway for the transmission or distribution of electricity or any substance or commodity. 4.02.070 Revenue Collector. "Revenue Collector" means the Director of Finance of the City, or assignee. 4.02.080 Service connection. "Service connec- tion" means the wire, pipes or conduits connecting the building or place where the service or commodity supplied by the grantee is used or delivered, or is made available for use or delivery, with the supply line or supply main in the highway or with such supply line or supply main on private property. -2- T3M/TITLE4 • Chapter 4.04 GENERAL REGULATIONS AND CONDITIONS 04.04.010 Title for citation. The franchise ordinance codified in this Division 1 shall be known as and may be cited as "the basic franchise ordinance." 4.04.020 Rules, regulations, terms and conditions applicable. Every franchise granted by the City for the use or City highways for any purpose, except as otherwise provided in the ordinance granting such franchise, shall be granted upon and be subject to such of the following rules, regulations, restrictions, terms and conditions as are incorporated therein by reference, in addition to the rules, regulations, restrictions, terms and conditions set forth in the ordinance granting each such franchise. 4.04.030 Franchise grant not exclusive. The granting of a franchise or any of the terms or conditions therein shay_ not be construed to prevent the City from granting any identical or similar franchise to any person other than the grantee. 4.04.050 Application. The application for a franchise shall be filed with the Director. 4.04.060 Term of franchise. Unless the ordinance arantina the franchise provides otherwise, the term of the franchise shall be 25 years. 4.04.070 Acceptance of franchise. The grantee, shall within 60 days after the passage of the ordinance granting ..he franchise, file with the City clerk a written acceptance of the terms and conditions of said ordinance, including such terms and conditions of this Division. 4.04.080 Surety bond required when -- Amount and conditions. The notice cf sale may require that the grantee snail file, within the time specified therein, and at all times during the life of the Franchise, keep on file with the Director a corporate surety bond.running to the City in the sum of $1,000.00, or such other sum as may be specifically provided in the said notice of sale with surety to be approved by the Director, conditioned that the grantee snail well and truly observe, Fulfill and perform each term and condition of the franchise and that in case of any breach of condition of the bond, the whole amount of the • TBM/TITLE4 / penal sum therein named shall be p deemed to be liquidated damages, and shall be recoverable from the principal and sureties upon the bond. If the bond is not so filed within the time aforesaid, the award of the franchise may be set aside at any time prior to the filing thereof, and any money paid therefor shall be forfeited; and if an ordinance has been enacted granting the franchise, the Council may repeal such ordinance. In the event that said bond, after it has been so filed, shall at any time during the life of the franchise become insufficient, the grantee, by accepting the terms and conditions thereof, agrees to.renew said bond with sureties to be approved by the Director within 10 days after written notice to do so from the Director. 4.04.100 Notice of sale -- Deposit to cover costs. Prior to publication of the notice of sale, the applicant for a franchise shall deposit with the City Clerk a sum which the Clerk estimates to be ample to cover the cost of such publication. 4.04.110 Notice of sale -- Costs -- Disoosition of extra funds. The cost of puDlication or the notice of sale of a franchise shall be paid from the monev deposited by the ar)piicant. If the cost of publication is less than the amount deposited the Clerk shall: A. Refund the difference to the applicant_ if `-e franchise is not awarded to the applicant; B. Apply the difference to other :<<oneys due to the City from the applicant under the terms of =ne Franchise if the franchise is awarded to the applicant. 4.04.120 Map of facilities installed in highways -- Annual filincr required. A. The grantee, except the grantee of a franchise for a railroad track, shall file with the Director, within 90 days after the effective date of the ordinance granting the franchise; and each year thereafter within 90 days after the anniversary of the effective date of the ordinance, a map or set of maps, each drawn to a scale not smaller than 400 feet to one inch, showing in detail the exact location and size of all facilities, except service connections used by or under the control of the grantee, installed beneath the surface of the highways described in and maintained pursuant to the authority of the ordinance granting the franchise. -4- TBM/TITLE4 B. The ma of P or set maps filed pursuant to the provisions of this section shall show in detail the location of such facilities, excluding service connections, which shall have been laid, constructed or abandoned subsequent to the filing of the last preceding map or set of maps. Each map or set of maps shall be accompanied by an affidavit endorsed thereon and subscribed and sworn to by the grantee, verifying the correctness thereof. 4.04.130 Public utilitv franchises -- Value agreement. The grantee of any franchise awarded to a public utility, by accepting the terms and conditions thereof, stipulates and agrees that in any proceeding for the purpose of regulating the rates of the grantee, no greater value shall be placed upon the franchise than the actual cash paid therefor by the grantee, including the cost of advertising paid by the grantee. 4.04.150 Pavments to City -- Service connections excluded when. Whenever the length cz any wire, pipe or conduit is a factor in calculating any payment due under any franchise granted by the City, all service connections snail be excluded in determining such length. 4.04.160 Pavments to Citv -- Publisninc anal advertising costs. The grantee shad nay to _ne Cita w�tn_n 30 days after receiving a statement therefor, all advertising and publishing costs, including t* -e cost of publishing the ordinance, incurred in connection with the granting of the franchise, minus the amount, if any, which the grantee has deposited. The grantee shall not receive credit for any deposit made by any other person. 4.04.190 Filina time. Report of annual cross receipts -- A. The grantee of any franchise awarded to a public utility or a mutual water company, except a franchise for a railroad track, shall file with the Revenue Collector for each franchise oavment period, within 90 days after such period, two copies of a report verified by the responsible officer of the grantee (except where the grantee is an individual, in which case the report shall be verified by the oath of the grantee) snowing the total gross receipts of the grantee for the franchise payment period, received or accrued in connection with the furnishing of the commodity or service arising from the use or operation of the C ranchise, together with such additional data as is necessary in the discretion of the Revenue Collector to calculate or verify the calculation of the annual payment -5- TBM/TITLE4. 1� (or the pro rata thereof for the first period if the first period is less than one year) and which payment shall be paid concurrently with the filing of the statement. B. In the event the amount paid is incorrect in the judgment of the Revenue Collector, it may order the payment of such additional sum as it may find due. 4.04.200 Report of annual cross receipts -- interest charged on late oavments. Should any annual report and accomoanving payment be not made within the 90 -day period therein mentioned, the grantee shall further pay interest on the amount due under that section at the rate of ten (10) percent per month from the last day of the franchise payment period for which such payment was due. 4.04.210 Right to examine records and facilities. At all reasonable times, the grantee shall permit any duly authorized representative of the City to examine ail property of the grantee erected, constructed, laid, operated or maintained pursuant to the franchise, together with anv appurtenant property of the grantee, and to examine and copy any and all books, accounts, papers, maps and other records kept or maintained by the grantee or under _ts control regarding the.operations, affairs, transactions, property or financial condition of the grantee. 4.04.220 Liabilitv for damages. The grantee shall indemnify, defend and hold the City, its officers, agents, and emn_lovees harmless from and against anv and all loss, damages, liability, claims, suits, costs and expenses, including reasonable attorney's fees, defense costs and legal fees, regardless of the merit or outcome of any such claim or suit, claimed, arising from or connected with the grant, exercise or enjoyment of the franchise, the grantee's franchise operations, and the use, operation or maintenance of the facilities erected, constructed, laid, operated or maintained under the franchise. 4.04.230 Sale, lease or transfer of franchise -- Terms and conditions. A. The grantee shall not sell, transfer, assign or lease the franchise, or any part thereof, except with the consent of the City Council. Such sale, transfer, assignment or lease shall be made only by filing with the City Council a copy of the duly executed instrument of such sale, transfer, assignme.^.t or lease, and a written request for the consent of the Council to such sale, transfer, 0 • • • TEM/TITLE4 assignment or lease. such written request before the expiration such sale, transfer, expiration of said 60 to forfeiture and the ordinance, repeal the If such duly executed instrument and is not filed with the City Council of 60 days after the effective date of assignment or lease then, upon the days, the franchise shall be subject City Council may, without notice, by franchise. B. As a condition to the granting of consent to such sale, transfer, assignment or lease, the Council may impose such additional terms and conditions upon the franchise and upon the grantee or assignee which the City Council may deem to be in the public interest. Such additional terms and conditions shall be expressed by ordinance. C. Nothing herein contained shall be construed tc grant to the grantee the right to sell, transfer, assign or lease the franchise, or any part thereof except in the manner aforesaid. This section applies to any assignment, whether by operation of law, by voluntary act of the grantee or otherwise. No such consent stall be required to any transfer or the franchise in trust or by way of mortgage or hypothecation with all or a Dart of grantee's other property_ for the purpose of securing any indebtedness of grantee. A merger will not be deemed a sale, transfer, assignment or lease of the franchise under this section. 4.04.240 Conditions of franchise grant -- Suspension or forfeiture grounds and procedure. The Franchise is granted and shall be held and enjoyed upon each and every condition contained in the ordinance granting the franchise, including such conditions incorporated by reference, and shall be strictly.construed against the grantee. Any neglect, failure or refusal to comply with any of the conditions of the franchise shall constitute grounds for the suspension or forfeiture thereof. The City Council, prior to any suspension or forfeiture of the franchise, shall give to the grantee not less than 30 days' notice in writing of any default thereunder. if the grantee does not within the noticed period begin the work of compliance, or atter such beginning does not prosecute the work with due diligence to completion, the City Council may hold a hearing, at which the grantee shall have the right to appear and be heard, and thereupon the City Council may determine whether such conditions are material and essential to the franchise and whether the grantee is in default and may declare the franchise suspended or forfeited. Notice of the hearing shall be given to the grantee not less than ten days before the Nearing. -7- TSM/TZTLE4 i 4.04.260 Extra communication circuits for City use. The City council, in granting the franchise, does expressly reserve at no cost to the City the right and privilege of installing and maintaining communication circuits upon any poles or in any communication conduit erected or placed by virtue of the franchise. The City may use the circuits for maintaining a communication, control and fire -alarm service in the dispatch of City business; and all such poles erected or conduits laid under the authoritv of the franchise shall be erected and laid in such a manner as to leave sufficient space for the proper accommodation of the four circuits to be installed and maintained by the City. 4.04.270 Franchise area -- All Facilities subiect to franchise conditions. All facilities erected, constructed, laid, operated or maintained by the grantee in highways, including services connected with the grantee's facilities, whether installed by the grantee or not, in the area described in and by vir.tue of the authority provided by the ordinance granting the -franchise, prior to the effective date of said ordinance, exceot those maintained under orior right other than franchise, shall become subiect to ail the terms and conditions of such ordinance upon such ef=ective date. 4.04.280 Attachment of facilities to br-daes or other City structures. A franchise coes not give me grantee the right to attach any pipe, conduit or other facility to anv bridge or other Citv structure unless specifically _orovided in the Ordinance grant -no z: e franchise. 4.04.290 Authoritv to accruire grantee's works, property and rights. The Citv snail have the right at any time during the term of the franchise to acquire the works, property and rights of the grantee (if such grantee is not a public utilityunder the ;urisdiction or the Public Utilities Commission), or any portion thereof constructed, acquired or operated under the franchise upon making reasonable compensation. 4.04.320 Construction, operation and maintenance regulations. All facilities erected, constructed, iaid, operated or maintained under the provisions of the franchise snail be erected, constructed, laid, operated or maintained in accordance with and conforming to all the ordinances, codes, rules and regulations now or hereafter adopted or 0 • TBM/TITLE4 prescribed by the City Council, and shall be of new, first class and standard material and subject to the approval of any duly authorized representative of the City. 4.04.340 Excavation oermit -- Prerecuisite to commencement of work -- Exceptions. Where the provisions of the highway permit ordinance require the issuance of an excavation permit, the grantee shall not commence any excavation work under the franchise until it shall have obtained such permit, except in cases of emergency affecting public health, safety or welfare, or the preservation of life or property, in which case the grantee shall apply for such permit not later than the next business day. 4.04.350 Excavation permit -- For pipelines carrvina flammable substances -- issuance conditions. Prior to the issuance of any excavation permit for the construction or installation of any pipeline for the transmission of flammable"licuids or gases, which are heavier than air, approval shall be obtained from the Fire Department. Such approval shall be based on the decer- mination that no undue fire hazard will be created to life or property in the areas through which the pr000sed pipeline will be located. 4.04.360 ?ichwav facilities -- Const uc- cn and repair procedures. The work of erecting, constructing, laving, replacing, repairing or removing facilities in, upon, over, under, along or across any highway shall be conducted with as little hindrance as practicable to the use of the highway for purpose of ,.ravel; and as soon as the erecting, constructing, laving, replacing, repairing or removing of any of said facilities is completed, ail portions of the highway which have been excavated or otherwise inured thereby shall be placed in as good condition as the same was before erecting, constructing, laying, replacing, repairing or, removing of the facilities, to the satisfaction of the Director; and the grantee shall be responsible to the City and shall save the City, its officers, employees and agents, free and harmless from all damages or liability arising from any damage or injury suffered by any person by reason of any excavation or obstruction being improperly guarded during said work, or the failure of the grantee to properly perform, maintain or protect any phase of the work. 4.04.370 Mains and other facilities -- Depth or installation. Unless special circumstances maze it impossible or not feasible and the Director so finds: CNI TBM/TITLE4 • A. All mains laid under the franchise, except electrical conduits, shall be laid and maintained not less than 30 inches below the gutter grade, or 38 inches below grade if no gutter, unless'the grantee files a written statement that no service connection will be made to any portion of the upper half of such main, in which case the main may be not less than 24 inches below the gutter grade or 32 inches below grade if no gutter. B. ' All other facilities, including electrical conduits and service connections laid under the franchise, shall be laid and maintained not less than 24 inches below the gutter grade. 4.04.380 Improvement of highway surface -- Notice to grantee -- Time for installation of facilities. A. The Citv reserves the right to improve the surface or subgrade of any highway and construct or reconstruct anv other facilities over which the franchise is granted, upon written notice that the grantor intends to improve any such highway within the territory covered by the franchise, and requests that the grantee erect, install, lay or construct beneath the surface of the highway the facilities which at that time are known or believed by "the grantee to be necessary or convenient to serve its needs and those of the oublic in the foreseeable future; the Grantee shall commerce such work on or before the date sDecitied in such written notice and request, which date shall be not less than 30 days from receipt of such written notice and request, and diligently prosecute such work to completion. B. After the completion of such highway improvements by the grantor, the right of the grantee to lay or construct facilities in, under or through the improved surface of the highway or portion of the highway under the franchise shall be subject to such additional terms and conditicns as z:,e Director may impose to minimize any damage to such improved surface. 4.04.390 Maintenance and protection of facili- ties following other improvements. A. If the Citv constructs or maintains any storm drain, sewer structure or other facility or improvement under or across any facility of the grantee, the grantee shall orovide, at no expense to the City, such suD_port as shall be reasonably required to suDport, maintain and protect grantee's facility. -10- • • TBM/TITLn4 B. This section shall not relieve any contractor of liability arising from violation of any law, ordinance or regulation, or from negligence which may proximately cause injuries to any of grantee's facilities. 4.04.400 Defective facilities in hicrhways -- Repair requirements and costs. If any portion of any highway shall be damaged by reason of defective facilities laid or constructed under the franchise, the grantee shall, at its own expense, repair any such defect and out such highway in as good condition as it was before such damage was incurred, to the satisfaction of the Director. If the grantee, within 10 days after receipt of written notice from the Director instructing it to repair such damage, fails to commence to comply with such instructions, or, thereafter, fails diligently to prosecute such work to completion, then the Director immediately may do whatever work is necessary to carry out the repair at the cost and expense of the grantee, which cost and expense, by the acceptance of the franchise, the grantee agrees to pay upon demand. if such damage constitutes an immediate danger to public :health or safety requiring the immediate repair thereof, the Director, without notice, may repair such damage and the grantee agrees to pay the reasonable costs thereof upon demand. 4.04.410 City's richt to chance ^iahway. .'he City reserves the richt to chance the race, _o chance the width, or to alter or change the location of any highway over which the franchise is granted. 4.04.420 Relocation of facilities. if any of the facilities erected, constructed, instailed or maintained by the grantee pursuant to the franchise on, along, upon, over, in, under or across any highway are located in a manner which prevents or interferes with the change of grade, traffic needs, operation, maintenance, improvement, repair, construction, reconstruction, widening, alteration or relocation of the highway, the grantee small relocate permanently or temoorarily any such facility at no expense to the City upon receipt of a written request from the Director to do so, and shall commence such work on or before the date specified in such written request, which date shall - be not less than 30 days from receipt of such written request, and thereafter diligently prosecute such work to completion. 4.04.440 Relocation of facilities --- Conditions. The City reserves the right to lay, construct, repair, alter, relocate and maintain subsurface or other facilities or improvements of any type or description in a -11- T3M/TITLE4 • governmental but not proprietary capacity within the highways over which the franchise is granted. if the City finds that the location or relocation of such facilities or improvements conflicts with the facilities laid, constructed or maintained under the franchise, whether such facilities were laid before or after the facilities of the City were laid, the grantee of such franchise shall, at no expense to the City, on or before the date specified in a written request from the Director, which date shall be not less than 30 days after the receipt of such notice and request to do so, commence work to change the location, either permanently or temporarily, of ail facilities so conflicting with such improvements to a permanent or temporary location in said highways to be approved by the Director, and thereafter dilicently prosecute such work to completion. 4.04.450 Relocation of facilities -- Costs. A. If the grantee, after reasonable notice, ails or refuses to relocate oermanently or temporarily its facilities located in, on, upon, along, under, over, across or above any highway, or to pave, surrace, grace, repave, resurface or regrade as required pursuant to any provision of t_he franchise, the Citv may cause the work to be acne, ana shall keep an itemized account of the entire cost, and the grantee shall hold harmless ::-ie City, -its officers, emnlovees =a acents from anv 'iabil'_z which may arse or be claimed to arise from the moving, cutting or alteration of any of .::e grantee ' s fatuities, or _ne turninc on or or-- of ffcf water, oil or other licuid, gas or electricity. 3. The grantee agrees to, and shall, reimburse t_ ^.e Citv for such cost within 30 days after oresentation to t^:e said Grantee of an itemized account. ..04._470 Abandoning facilities -- Terns and cor.diti-_.^.s. --he Director, upon any terms and conaitions as the Director may see fit to impose, may give the grantee of the franchise permission to abandon, without removing, any facility laid, erected, constructed, operated or maintained under the=ranchise. Unless such permission is granted, the grantee snail remove ail abandoned facilities within 90 days after such abancenrnent, and shall restore the highway to its former state at t:^.e time such facilities were removed, as near as ..-ay be, so as : of to i:npaIr its usefulness. 4.04.480 ,nderarcundinq of facilities. To the extent possible, the City shall recuire that all facilities whit:^ may be installed underground be so installed and in accordance with the provisions of this Title. -12- 1] 0 TSM/TITLL4 Chapter 4.06 COMPENSATION 4.06.010 Rates. As consideration for the franchise granted, the franchisee shall pay to the City in lawful money of the United States the following: A. In the case of an initial grant of franchise, or on franchises which extend, renew or continue previously granted franchises, the franchisee shall pay to the City a granting fee of not less than $5,000.00 within 30 days after the council adopts the ordinance granting the franchise. Such amount shall be established by the Revenue Collector; 3. Provided, however, that if the pipe or pipeline to be laid or constructed pursuant to the franchise is one-fourth mile or less in length, or the franchise extends, renews or continues a previously granted franchise to lay or construct a pipe or pipeline one-fourth mile or less in length, the franchisee shall pay to the City a granting fee of not less than S500.00 within 30 days after the council adopts the ordinance granting thefranchise. Such amount shall be established by the Revenue Collector; and C. The franchisee of any franchise awarded to any others, including a public uril zy or mucuai water tomo_ any granted or exercising a franchise for a purpose not involving the furnishing of any service to ite public or any portion thereof, as further consideration for the franchise hereby granted, including the extension, renewal or continuation of a _previously_ granted franchise, shall pay to the City in lawful money of the United States, during the life of the franchise for each and every year, including the year of granting the franchise, according to the "franchise payment period", a "base annual fee": D. Initial Construction Charges and Other Fees. In addition to the foregoing annual payments, the franchisee shall: 1. Pay City within 60 days after the end of each calendar year, during the life of the franchise, an initial construction charge calculated at a rate of $100.00 per :Wile or fraction thereof for ail new mains laid during the preceding year; Wtc TBM/TITLE4 • 2. Pay City during the life of the fran- chise, an annual fee of $50.00 per pole -mile or portion thereof, and $50.00 per mile or portion thereof of under- ground conduit for telephone or telegraph lines maintained under the franchise. Said fee shall be due within 60 days after .the end of each calendar year. 4.06.020 Proration of oavments. In the event of abandonment of facilities with the approval of the City as elsewhere in the ordinance provided, or in the event of removal of such facilities by the franchisee, the payments otherwise due the City for occupancy of the roads or highways by such facilities shall be prorated for the calendar year in which such removal or abandonment occurs as of the end of the calendar month in which removed or abandoned. 4.06.030 Prompt oavment -- Delincuencv charce. In the event franchisee falls to make the payments for the franchise or the payments on or before the dates due, franchisee shall _pay_ as additional consideration the following amount: A sum of money equal to i0 percent per month commencing from the due date of the total amount due. 4.06.040 Recordkeecing recuiremenns. Franchisee shall keen and preserve, for a period or five years, subsequent to the date of the most recent =rancnise fee determination as ascertained by an audit made by :Ae City or on its behalf, all records necessary to determine the amount of such franchise fees or other payments due. =rancnisee, upon demand by City, shall make such records available for inspection :within the City. Chapter 4.08 CONSTRUCTION 4.08.020 New or replacement installations. New installations or replacements of pipelines and appurtenances and all other facilities necessary for the installation, operation, maintenance, and safety of pipelines and conduits shall be laid and maintained only pursuant to permit issued by the public works department. All such installations or replacements shall be reviewed by the Director as to the most desirable location in the roads or highways of the City and the Director's decision shall be finalandbinding on the franchisee. M TBM/TITLE4 4.08.030 Highway work -- Conditions and reauirements. The work of constructing, laying, replacing, maintaining, repairing, abandoning or removing all pipelines and appurtenances authorized under the provisions of this Division 1 in, over, under, along or across any highway shall be done to the satisfaction of the Director at the expense of the franchisee 'and in accordance with the terms and conditions of this Code. 4.08.040 Annual completion statement. The franchisee shall submit an annual summary to the City identifying the permit or permits issued during the preceding calendar year, identifying the total length of pipeline, conduit or other facility, the construction of which was authorized under such permit or permits, the nominal internal diameter or diagonal of the pipeline or conduit, and the total length of pipeline, conduit or other facility. 4.08.050 Emercencv equipment and oersonnel. At all times during the term or this franchise, the franchisee shall maintain or arrange for, on a 24 -hour -a -day basis adecuate emergency equipment and a properly trained emercencv crew within a reasonable aiszance prom anv facilities installed or maintained pursuant hereto :or the purpose of shutting of -f the pressure and the Llow o= contents or such facilities in :.ne event o_ an emercencv resulting Lrom an earthquake, act of war, civil cisturoance, `ire, flood, or any other cause or nature whatsoever. ^_.08.070 Removal cr abandon -me. o.: facil t es -- Procedures A. At the exp_iraticn, revocation or termination of thisfranchise or of the permanent discontinuance of the use of all or a portion of its Lacilities, the franchisee shall, within 30 days thereafter, make written application to the Director for authority either: 1. To abandon all or a portion of such facilities in place; or 2. To remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned, their location, and shall describe with reasonable accuracy the physical condition of such facilities. The Director shall determine whether any abandonment or removal which is thereby proposed may be 0 -15- TBM/TITLE4 effected without detriment to the public interest and under what conditions such proposed abandonment or removal may be effected... B. Within 30 days of notice of the Director's determination, the franchisee shall apply for a permit from the City to abandon or remove the facility. C. The franchisee shall, within 60 days after obtaining such permit, commence and diligently prosecute to completion the work authorized by the permit. 4.08.080 Removal or abandonment of facilities -- Failure to comely -- Remedies. A. If any facilities to be abandoned "in place" subject to prescribed conditions shall not be abandoned in accordance with all such conditions, the Director may make additional appropriate orders, including_ an order that the franchisee shall remove any or ail such facilities. The franchisee shall comply with such additional orders. B. In the event that the franchisee shall Fail no comply with the terms and conditions of abandonment or removal as may be required by this Division. and 'within such time as may be prescribed by the Director, then the City may remove or cause to be removed such facilities at the franchisee's expense. The Franchisee shall oav ic the _lz the cost of such work oius the current rate of overhead being charged by the Citv for reimbursable wor:K. C. If, at the expiration, revocation cr termination of this franchise, or of the oermanent discontinuance of the use of ail or a portion of its facilities, the franchisee shall, within 30 days thereafter, fail or refuse to make written application for the above- mentioned authority, the Director shall make the determina- tion as to whether the facilities shall be abandoned in place or removed. The Director shall then notify the franchisee of the determination. The franchisee shall thereafter comply with the provisions of subsections 3 and C of this Section 4.08.070. -16- • T3MjT:TLE4 • • Division 2 CABLE TELEVISION SYSTEM FRANCHISES Chapter 4.10 DEFINITIONS 4.10.010 Definitions generally -- Interpretation of lanauace. For the purpose of this Division 2, the following terms, phrases, words and their derivations shall have the meaning given in this chapter. 4.10.020 Advertising receipts. "ydvertisina receipts" means any and ail income, compensation,fees and other consideration received directly or indirectly by franchisee, derived from anv form of advertising, relating airectly or indirectly to franchisee's franchise activities and operations. 4.10.030 3asic service. 1'3asic service" means the simultaneous delivery by franchisee to elev:s on receivers (or any other suitable type or audio -v :deo communication receivers) of A. all signals of over- the-ai_=elevision broadcasters authorized by the FCC to be carried cv a cable television system, as defined by the FCC; 3. vocal government access c::^.annels; C. Education access channels; D. Public access channels; E. Lease channels; and r Additional service at the option of the conpanv_; however, pay or subscription television as defined by the FCC shall not be considered part of the basic service. 4.10.040 3asic subscriber receipts. "3asic subscriber receipts" :leans anv and all income, compensation, Lees and other consideration received directly or indirectly by thefranchisee frcm subscribers in payment for the basic service of the cable television system. -1i- TBM/TTTLZ4 • 4.10.060 Cable television system or system. A.. "Cable television system" or "system" means a system of antennas, cables, wires, lines, towers, waveguides, microwaves, microwave, laser beam, fiber optics, master antenna system, multiple distribution system, satellite, or any other conductors, converter, equipment or facilities desired and constructed for the purpose of producing receiving amplifying and distributing audio, video, voice, data signals, digital signals, fiber optic signals, and other forms of electronic or electrical signals, located in the City, and constructed or used for one or more of the following purposes: 1. Collecting and amplifying local and distant broadcast television or audio signals and distributing and transmitting them; 2. Transmitting original cablecast programming not received through television broadcast signals; 3. Transmitting television pictures, film and video tape programs not received througn -broadcast television signals, whether or not encoded or processed to permit reception by only selected receiver; 4. Transmitting and receiving_ all other signals: digital, voice and audio-visual; 5. Any other appli cati ons used in transmitting audio and/or visual signals. B. "Cable television system" or "the system" also means "community antenna television system" (as that term is used in Section 53066 of the Government Code of the State of California), "CATV system," "cable system" or "cable communications system." C. An excecticn to the above definition is any state or interstate common carrier over which the City has no jurisdiction. 4.10.100 Department. "Department" :Weans the Public Works Depar=ent C! _ne City. 4.10.110 Director. "Director" means Public :corks Director of the City or assignee. C TBM/TITLE4 • 4.10.120 FCC. "FCC" means the Federal Communications Commission, its designee or any successor thereto. 4.10.130 Franchise. "Franchise" includes the term "license." 4.10.140 Franchisee or Grantee. "Franchisee" or "grantee" means the person to whom the franchise is granted, and anv person to whom it lawfully may be assigned. 4.10.150 Franchise navment period. "Franchise payment period" means the period from the effective date of the ordinance granting the franchise through December 31st of the year granting the franchise, and each calendar year thereafter, during the term of the franchise. 4.10.160 Franchise oronerty or facilities. "Franchise property" or "facilities" means anv and ail property of the franchisee, inciuding, but not _united to, service connections with the franchisee's facilities, whether installed by thefranchisee or not, erected, constructed, installed, laid, operated or ^aintained in the City pursuant to any right or priviiee_e granted by rhe franchise. 4.10.170 Franchise report per cd. "^ran c:^.i se report period" in ail cases means c e cerrod from _ne effective date of the ordinance granting -he franchise through December 31st of the year of granting the franchise and each calendar year thereafter, curl^g t e _erm of the franchise. 4.10.180 Head -end. "dead-end" means the electronic processing center for distribution of the signals received from the master antenna. 4.10.190 Lease receipts. "ease receipts" means any and all income, ccmuensation, fees and other consideration received directly or indirectly by franchisee For the lease or rental of franchise property, and compensation for any service in connection therewith including but not limited to studio and eo_uip_ment rental and production costs of anv channel permitted or designated by the =CC to be so leased or rented. 4. 10.200 Leased channel. "Leased channel" means a channel on the cable system on which the franchisee shall orovide open, widespread, and reasonable access to persons • TBM/TITLE4 who desire to use said channel for commercial purposes, as defined in Section 612 of the Cable Act. 4.10.210 Non -basic service. "Non -basic service" means anv communication service other than basic service provided over its system by franchisee directly or as a carrier for its subsidiaries, affiliates or anv other person engaged in communications services including, by way of example but not limited to, pay or subscription television, burglar alarm data or other electronic intelligence transmission, facsimile reproduction, meter reading and home shopping. 4.10.220 Non -basic service receipts. "Non -basic service receipts" means any and all income, compensation, fees and other consideration received directly or indirectly by the franchisee in payment for non -basic service provided over its system by franchisee. 4.10.230 Public easement. "Public easement" includes, but is not limited to, any easement created by dedication to the public, the City, or anv public entity, for public -utility purposes or anv other ourpose wnatsoever. 4.10.240 Revenue Collector. "Revenue Collector" means the Director of Finance of :he City or assignee. 4.10.250 Service area. "Service area, :Weans that area of the City in wnich the franchisee is authorized to construct and operate, and orovice service connections for, a cable television system _pursuant to t:^e terms and conditions of the franchise. 4.10.260 Subscriber or user. "Subscriber" or "user" means any person or entity lawfully receiving for any purpose any service of the franchisee's cable television system, including the ultimate recipient or any distribution of franchisee's service. 4.10.270 Subscriber revenues. "Subscriber revenues" means any and all income, compensation, fees and other consideration received directly or indirectly by franchisee from the following sources: A. Installaticn fees, disconnect and reconnect fees and fees for regular cable benefits, including `he transmission. of ;broadcast signals and access and local origination channels, if any, derived from its operations within the authorized franchise area; 3.. 3a5ic subscriber receiots; -20- TBM/TITLE4 C. Non -basic service receipts; D. Advertising receipts; E. Lease receipts; F. Income derived from per -program or per -channel charges; G. Any other income from any source derived from franchise operations. Chapter 4.12 GENERAL REQUIREMENTS • 4.12.030 Continuation of orovisions. The provisions or this Division 2, Insorar as t:ev are substantially the same as existing ordi.n.ance provisions relating to the same subject matter, shall be construed as restatements and continuations thereof and not as new enactments. 4.12.040 Provisions incorporated by reference. In�. 'a addition to the teras and conditions set cut in this Division 2, the franchise is granted under the same terms and conditions ccntalned in Division _ c.f this Title, as lr they were contained in this Division 2. Tn the event the terms and conditions hereof conflict with the terms and conditions of Division 2 of this title, the terms and conditions hereof shall control. -21- 4.12.010 Title for citation. The ordinance codified in Division 2 shah be known and may be cited as the "Master Cable Television System Franchise Ordinance" or r "Master CATV Ordinance." 4..12.020 Purpose of Division. 2 .orcv,io:^.s. it is the purpose of the ordinance ccairiec :. -..is :Di­7131'on 2 to standardize practices in the cable television industry, to provide for -he unified administration of cable television franchises, to recuiate rates to the extent allowable by federal, state and local laws when necessary for the public good, and to regulate the ooeration or franchises for the purpose or protecting and oromoting the public health, safety and welfare in the interests of the subscriber, franchisee, and the public. • 4.12.030 Continuation of orovisions. The provisions or this Division 2, Insorar as t:ev are substantially the same as existing ordi.n.ance provisions relating to the same subject matter, shall be construed as restatements and continuations thereof and not as new enactments. 4.12.040 Provisions incorporated by reference. In�. 'a addition to the teras and conditions set cut in this Division 2, the franchise is granted under the same terms and conditions ccntalned in Division _ c.f this Title, as lr they were contained in this Division 2. Tn the event the terms and conditions hereof conflict with the terms and conditions of Division 2 of this title, the terms and conditions hereof shall control. -21- TBM/TTTLL4 4.12.060 Statutory provisions applicable. All franchises for a cable television system shall be granted pursuant to Section 53066 of the Government Code of the state of California. 4.12.080 Rights reserved to the City. A. The rights reserved to the City under this.Division 2 are in addition to all other rights of the City, whether reserved by this Division 2 or authorized by law, and no action, proceeding or exercise of a right shall affect any other rights which may be held by the City. Franchisee, by acceptance of the franchise, agrees to be bound thereby and to comply with any action or requirement of the City in its exercise of any such right or power. B. City shall have the right to waive any provision of the franchise, except those required by federal or state regulation, if the Director determines: so; or 1. That it is in the public interest to do • 4.12.090 Terms and conditions cenerallv. Every =ranc:^.ise Granted by the Citv_ aster -e effective date of this ordinance, to construct from time to time and, for the period covered by t_^.e francnise, to maintain and operate a cable television and to maintain, operate, renew, repair and remove lines and cables for the transmission of television and radio sicnais, tocether with all appurtenances and service connections necessary or convenient for the crovision of a cable television system in, under, along or across anv and all service areas, nig^ways, pubiic orcnerties and public easements, except as otherwise provided in tne�ordinance granting the franchise, shall be granted uoon and be subject to the rules, regulations, restrictions and terms and conditions of this Division 2, and the rules, regulations, restrictions, terms and conditions set forth in the ordinance granting the Lranchise. -22- 2. 'What the enforcement of such provision will impose an undue hardship_ on the franchisee or the subscribers. C. The Citv shall have the cower and richt at ail times for the duration cf the francnise to require franc.isee to conform to rules and reculations Governing t: ^e operation of cable television systems now or hereafter adopted by the City Council. • 4.12.090 Terms and conditions cenerallv. Every =ranc:^.ise Granted by the Citv_ aster -e effective date of this ordinance, to construct from time to time and, for the period covered by t_^.e francnise, to maintain and operate a cable television and to maintain, operate, renew, repair and remove lines and cables for the transmission of television and radio sicnais, tocether with all appurtenances and service connections necessary or convenient for the crovision of a cable television system in, under, along or across anv and all service areas, nig^ways, pubiic orcnerties and public easements, except as otherwise provided in tne�ordinance granting the franchise, shall be granted uoon and be subject to the rules, regulations, restrictions and terms and conditions of this Division 2, and the rules, regulations, restrictions, terms and conditions set forth in the ordinance granting the Lranchise. -22- • • Ci TBM/TITLE4 • d 4.12.100 Franchise grant not exclusive. The granting of the franchise snail not be construed to prevent the City from granting any identical or similar franchise to any person other than the franchisee. 4.12.110 Acceptance of franchise. The franchisee shall, within 30 days after the passage of the ordinance granting the franchise, file with the City, an express and unconditional written acceptance of the terms and conditions of said ordinance. 4.12.120 Term of the franchise. Unless the ordinance granting the franchise provides otherwise, the term of the franchise shall be 15 years. 4.12.130 reauirements. Insurance and indemnification A. 1. The franchisee shall, at its sole expense, indemnify, defend and save harmless the City, its agents, officers and employees from and against anv and all liability, expense, including defense costs ana legal fees, and claims for damages of anv nature whatsoever, including but not __mired to, bodily injury, death, personal _.jury, or orooerty damace, including property_ of _he -franc -see, arising from or connected with either directly or indirectly, --francnisee's activities, ooerat-ors = -zervices hereunder, including any Workers' Compensation suits, liability or expense, arising rrom or connected witn services performed on behalf or francnisee by any person pursuant to this franchise. 2. Nothing herein shall be deemed to prevent the parties indemnified and held '-artless from participating in the defense of any litigation by their own counsel at :he franchisee's sole expense. Such participation shall not under any circumstances relieve the franchisee from its duty or defense against 'iabi itv or of paying anv judgment entered against such companv. B. Without limiting franchisee's indemnification of City, franchisee shall provide and maintain at its own expense during the term of the franchise, the following programs of insurance covering its operations hereunder such insurance sh.ail be provided by insurer(s) satisfactory to Director and satisfactory evidence of such programs shall be delivered to the City, on or before the effective date of the franchise. Insurance policies and certificates evidencing coverage shall name the City, its officers, agents, and employees as additional insureds in respect to -23- TEM/TIT: E4 franchisee's operations under the franchise. Such evidence shall specifically identify the franchise and shall contain express conditions that City is to be given written notice by registered mail at least 60 days in advance of any modification or termination of any program of insurance: 1. Liability. Such insurance shall be primary to and not contributing with any other insurance maintained by City, shall name the City, its officers, agents, and employees as additional insureds, and shall include, but not be limited to: a. Comprehensive General Liability Insurance endorsed for Premises -Operations, Products/ Completed Operations, Contractual, Broad Form Property Damage and Personal Injury,with a combined single limit of not less than $1,000,000.00 per occurrence. If the above insurance is written on a Claims Made Foran, such insurance shall be endorsed to provide an extended reporting period of not less than five years following termination of the policy. b. Comprehensive Auto Liability Insurance endorsed for all owned, non -owned, and hired vehicles with a combined single limit of at least $1,000,000.00 per occurrence. C. Said amounts of coverage shall be subject to review and adjustment by the City, at Ci y 's sole option, at any time during the term or the franchise. :n the event of such adjustment, franchisee agrees zo provide such amounts as are determined by City, within 30 days after written notice to do so from the City. 2. Workers'.Ccmnensation. A program of Workers' Compensation Insurance in an amount and form to meet all applicable requirements of the Labor Code of the State of California, including Employers Liability insurance with a S150,000.00 limit, covering all persons providing services on behalf of franchisee and ail risks to such persons under the franchise. Franchisee may provide, if applicable, a certificate of consent to self -insure, issued. by the Director of Industrial Relations of the state of California. Should franchisee utilize the self-insurance provision of this section, and franchisee's certification of consent to self -insure expire or be revoked, franchisee shall be recuired to provide a program of Worker's Compensation Insurance prior to or upon said expiration or revocation. -24- TBM/TITLE4 • C. Franchisee shall furnish the Director, prior to commencement of any franchise operations, either certified copies of said policies rec_uired bv-subsection B of this section, or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force. D. No franchise operations shall commence until franchisee has complied with aforementioned provisions of this section, and any such operations shall be suspended during any period that franchisee fails to maintain said policies in full force and effect. E. It shall be the franchisee's obligation to provide evidence of current insurance policies. 4.12.140 Performance bond recuirements. A. On or before the effective date of the ordinance granting the franchise, franchisee shall furnish the Director with a bond, oavable to the City, in a form and executed by a corporate surety acceptable to City and licensed to transact business as a surety in the state of California. Such a bond shall be maintained in Lull force and effect at all times during the term of the franchise and shai_ be in favor cr the Citv in -he penal sum of 550,000.00, or such other sum as may be snecificaily provided for in the ordinance granting the franchise. Said bond to be conditioned upon faithful perfor.-nance by franchisee of the terms and conditions of the francnise and -shall provide that, in case of anv breach of condition of the bond, the whole amount of the penal sum snail be deemed to be licuidated damages and shall be payable to the City by the orincioai and sureties of the bond. If said bond is not filed as aforesaid, the award of the franchise may be set aside and the ordinance granting the franchise repealed and anv money paid in consideration for said award of franchise shall be deemed fcrfeited. The performance bond may be required in addition to a letter of credit or establishment of+a security fund. The rights reserved with respect to said performance bond are in addition to all other rights of the Citv. 3. The amounts of said bond shall be subject to review and ad4fustment by the City, at City's sole discretion, at any time during the term of the franchise. In the event of such adjustment, franchisee agrees to renew said bond, in an amount as determined by the City, with sureties to be approved by the City, within 30 days after written Notice to do so from the City. -25- TBM/`_ITLE4 • • • C. Said performance bond shall continue to exist for one year following the Director's approval of any sale, transfer, assignment or other change of ownership of the franchise, or of the expiration or termination of the franchise, only for the purpose of assuring franchisee's faithful performance under the terms and conditions of the franchise _prior to the date of approval of said change of ownership, or of expiration or termination. The Director may release said bond prior to the end of the one-year period upon satisfaction by franchisee of all said obligations under the franchise. D. No franchise operations shall commence until franchisee has complied with the aforementioned provisions of this section, and any such operations shall be suspended during any period that franchisee fails to maintain said bond in full force and effect. 4.12.160 Grant and forfeiture conditions. A. Any franchise is granted on the conditions and shall be held and enjoyed upon each and every condition contained in the ordinance granting the franchise and each and every condition contained in this Division 2, and shaii be strictly construed against the franchisee. B. in addition to all other rights and powers retained by the City under this Division or otherwise, the City reserves the right to suspend or revoke and Terminate a franchise and all rights and privileges of a franchisee in the evert of a material breach of its teras and conditions. in interpreting this section, material provisions shall include all labeled as such and all others, which, under all the facts and circumstances indicated, are a significant provision of the franchise agreement. A material breach by franchisee shall include but shall not be limited to the following: 1. Violation of any material provision of the franchise or any material rule, order, regulation or determination of the City made pursuant to the franchise; 2. Attempt to evade any material provision of the franchise or practice any fraud or deceit upon the City or its subscribers or customers; 3. Failure to begin or complete system construction, reconstruction or system extensions as provided under the franchise; -26- TBM/TIT�L4 0 4. Failure to provide the types of facilities, equipment or services promised; • 5. Material misrepresentation of fact in the application for or negotiation of the franchise. C. The Revenue Collector, prior to anv suspension or revocation and determination of the franchise, shall aive to the franchisee not less than ten days' notice in writing of any default thereunder. If the franchisee does not within the noticed period begin the work of comoiiance or, after such a beginning does not prosecute the work with due diligence to completion, the City Council shall hol,1 a hearing at which the franchisee shall have the riaht to appear and be heard. Notice of said hearing shall be given to franchisee not less than ten days before said hearing. D. upon the conclusion of the hearing, the City Council may determine whether such conditions are material and essential to the franchise and whether the franchisee is in default with respect thereto and may declare the franchise suspended or revoked and terminated. No revoca- tion and termination shall become effective Less than 30 days aster the City Council's decision to revoke and terminate; and no lapse of time, expenditure or anv other thing snai- be deemed to give the franchisee anv vested right or interest in the continuation or :he franchise granted. �..12.165 Costs of tec�--ical assistance. ^ranch_see nal_ oav the costs _ncurred by the C__v for any tec:^:nical assistance deemed-ecessary by :.^.e City for obtainina independent verlficatlon of technical compliance with all franchise imposed standards. 4.12.170 Sale,-ransrer, stock ransrer, lease, assignment, hvoothecation or c.^.ance In control cr f rano.^.ise -- Condi t i ons . A. 1. "he _ranci^.isee shall not sell, transfer, assign, lease, nvpothecate, oiace-in trust or change --e control of the franchise cr anv part thereof, except with the orior consent of -- e City Council, and after oavment of the fees recuired by Section 4.14.025. The City Council's consent snail not ce unreasonably withheld. As used in this section, "transfer" includes stock transfer and "control" includes actual working control in whatever manner exercised. -27- TBM/TT_TLE4 • 2. Franchisee shall inform the Citv Council of any pending sale, transfer, lease, assignment, hypothecation, placing in trust or change in control, except as excluded in subsection B. Transferor and transferee must file an application for City Council's consent to transfer control of or assign the franchise as set forth in . subsections D and E. Such applications shall be accompanied by the fees required by Section 4.14.025(A) and shall be signed by duly authorized representatives) and the signature(s) acknowledged by a notary. 3. Franchisee shall file with the Citv Council a certified copy of the duly executed instrument of such sale, transfer, assicnment, lease, hypothecation, trust or chance in control within 30 days of the effective date of such sale, transfer, assicnment, lease, ;,vpothecation, trust or chance in control. If such dulv executed instrument is not filed with the Citv_ Council within 30 days after ^e effective date of such sale, transfer, assicnment, lease, hypothecation, trust or chance in control, then upon r -he exD_iration of said 30 days, the franchise shay_ be sub4ect to forfeiture and the City Council may, without notice, by ordinance reveal the franchise. 4. As a condition to te rantire of consent to such sale, transfer, assignment, _ease, hvpothecat4on, trust or chance cont_.._, _ne C. C:,'InclI may impose such additional terms and ccnditicns upon t -,e franchise and upon the crantee cr assicnee wnicn t::e Co::ncil deems to be in the public Interest. Such addi _oval ter..:s and conditions shall be expressed by erZinance. iothina herein contained shall be const --.:ed tc rant t:, _ne franchisee the right to sell, transfer, assicn, lease, hypothecate, place in trust or chance control of the franchise or any part thereof except in the manner aforesaid. This section applies to anv assicnment, whether by operation of law, by voluntary act cf _^:e franchisee, or otherwise. 4.12.180 Report recuirements. A. The franchisee, during the term of the franchise, within 60 days after the expiration of each calendar vear, shall file with the Revenue Collector, one copy to each, of a rep_ ort verified by the cat:,. of t: -:e franchisee, or by the oath of a duly authorized representative of the francinisee, setting forth in detail the ccmD_utation of the amount of the franchise payment due for the immediately preceding calendar year For each physically separate transmission and distribution system, • TBM/TZTLE4 • is an portion of which is locate within o y � d thin the franchise area, the report shall contain: 1. A detailed profit and loss statement showing all gross receipts and expenses derived from the franchisee's franchise operations during the reporting period. 2. The total number of service connections in operation as of the last day of the calendar year. B. Franchisee shall also provide on request such additional data as is reasonably necessary in the opinion of the Revenue Collector to calculate or verifv the calculation of the annual payment required by Section 4.16.010. C. File with the Revenue Collector a report in duplicate showing: 1. The oermit "umber of each permit obtained for the doing of any work under the franchise for which a permit is required during the immeaiately preceding franchise report period; 2. The lineal `engt. of fines and cables installed pursuant to each cermiz curing -:e im.meaia-eiv preceding franchise report period. D. The City reserves the power -o assess a penalty of $250.00 per day for eac^ day bevond -he reporting period that the franchise rails to --,-,-,e any report required by this Section 4.12.180. 4.1-2. 190 Liabi_ity and I'ndemnif=ca�i�n A. Franchisee shall indemnifv and hold Citv_ harmless from and against anv and all loss, damages, liability, claims, suits, costs and expenses, including reasonable attorneys' fees, regardless of the merit or outcome of any such claim or suit, claimed or arising from any negligent or intentional act or omission of franchisee, its officers, empicvees, agents or subcontractors, arising from activities or work conducted pursuant to -he franchise. 3. Franc:^isee shall _ndemnifv, defend and save harmless the City, its officers, agents and employees, from and acainst anv and all claims and losses whatsoever, including reasonable attorneys' fees, accruing or resulting to any and all persons, firms or corporations furnishing or suppiving work, services, materials, equipment or supplies -29- • TBM/TITLE4 • in connection with activities or work conducted or performed pursuant to the franchise and arising out of such activities or work, and from anv and all claims and losses whatsoever, including reasonable attorneys' fees, accruing or resulting to any person, firm or corporation for damage, injury or death arising out of franchisee's franchise operations. 4.12.200 Additional terms and conditions. In addition to the provisions of Section 4.12.170, any time a franchisee applies for a change in territory, service area, or bonding, the Council may impose such additional terms and conditions upon the franchisee and upon the grantee or assignee which the Council may deem to be in the public interest. Such additional terms and conditions shall be expressed by ordinance. 4.12.210 Permit required for certain work. Notwithstanding the granting or a rranchise, the rranchisee shall not be authorized to do anv work under the franchise for whic:- the issuance of a permit is reQuirea unless such a permit is issued for such work. 4.12.230 Purchase of franchise orccerty by City. A. The Citv upon termination or=crfeiture of the franchise, or at any time during the -era of -he franchise or, after five vears from the effective date of the ordinance granting the franchise, snail nave the option to ourc^ase ail or part of the franchise oroD_ ert•.,, .:Don Taring reasonable comnensaticn tnereror. City's _-ant to ourchase the franchise orcoerty hereunder shall not be construed as a waiver of anv other rights City may nave. t: ^.e event the City elects to purchase the franchise oronerty in accordance herewith, the compensation shall be comoutea as orovided in Part 3, Title 7, Chapter 9, Article 4 of the Code of Civil Procedure of the state of California, provided further, that such purchase shall be at an eouitable price, which shall not include compensation for loss or goodwill or any valuation of the franch4 se itself or of anv of the rights or orivileges granted by the franchise. Other terms and condi- tions of the sale shall be mutually agreed upon by the parties. Ifa renewal of saidfranchise is denied, any accuisitic: of the cable system by the City Snail be at Fair market value, determined on the oasis of the cable system valued as a Going concern but with no value allocated to the franchise itself. -30- • TBM/'T_'ITLE4 . • C. In the event the franchise is revoked and terminated and the City elects not to purchase the franchise property.hereunder., franchisee agrees to waive all claims for damages or compensation which it may have against the City as a result of such revocation and termination; provided, however, franchisee does not hereby waive its rights to a judicial determination of the validity of such revocation and termination. 4.12.240 Fair emniovment oractices -- Statutory provisions incorporated by reference. Franchisee shall not make any discrimination, distinction or restriction on account of color, race, religion, sex, ancestry or national origin contrary to the provisions of Section 51 of the Civil Code of the state of California, which is incorporated herein by reference. All applicable provisions of Sections 12900 through 12996 of the Government Code of the state of California (California Fair Employment and Housing Act) are hereby incorporated 'herein by reference. Franchisee further agrees to comply with applicable antidiscrimination provisions of Section 634 of the Cable Act. 4.12.250 Access to trenches. A. In cases of new construction or property development :where utilities are to be piaces rnderground, franchisee(s) shall, if practical, install underground cable at the same time and in the same _renc^es as zte public imorovements (e.g., communications, electric, Cas, "Nater) are installed. 3. A franchisee is notified of the date the trenches are available and fails to install its ccnduit or cable within five working days of the date the irenc^es are available, and the trenches are thereafter closed after the five-day period, the cost of new trenching is to be borne by the franchisee(s). C. The requirements of subsections A and 3 shall not apply unless the property owner offers franchisee the same terms with respect to availability and cost cf trenching for undergrounding as are offered to other trench users, if any. D. In the evert that a subdivider, property developer or an entity owned by, associated with or under the control of a subdivider or developer has a franchise to provide cable services to an area including its property development(s), the franchisee shall be required to make access to the utility trenches in the developments) -31- TEWTI available to all franchisees authorized to provide cable services to an area including the develep_ment(s). Access snail be provided at the same terms with respect to availability and cost of trenching for under -rounding as is provided to other trench users, if any. 4.12.260 Underaroundina of Cable. all Cable and, to the extent possible, all additional=ac_1_t_es shall be installed underground and in accordance wit: this ''itle. Chapter 4.14 APPLICATION FOR FRANCHISE 4.14.010 Filing. Any person desir_nc a rancnise fcr a cable television system shall =iia an or_gLnal application and eleven ccpies with the cepartment. 4._4.015 ?roorletary information -ne ex-_'.^.: pe --fitted by law, proprietary Information may Je {eot Cin=ode.^.t'_a_. if ap_ orcoriatei v ident=f:ed. _n '-e el-'prit .7.r1 �pp__can� believes chat the _nformat_on _.. ... t i --^appiicaticn should be treated ccnridenti`-__ :Dv --'-e u :-st so advise the deoart;ent by e --e- " oor - «__.. _-s app -1 -cation. I_` _t _s deter: -_neo by =..e -�ar is not conr-dentiai, tn.e be so not_f_ed and the _..formation w_1_ C_se applicant at applicant's request. 4._4.020 Contents of appi_ca ._.. =p_1_cat_on for a franchise for a came te_ev_s_zn system _..a__ be _n the form as approved by the Direct�r _nd Which include _-formation regarding the desicnar= cf the ec_f_c area to be served by "e francn_se, :dent_='_cation of the applicant, financial information, __::asci.nc pian for ase =erazion, construction scn.edule, orcocsec--narges to suoscribers, proposed system conficurat_cn, f..__cast number cf :tomes in service area, describe tecnnicai standards of "e system, : het_^.er applicant is accuirina caner cable systems, ability of applicant to meet ccnsumer needs, and _tner irf at_cn required by the City. 4._=.025 _ranch_se orccess_n_- fee. A. Upon submission of an ap_oiication, the app cantjfranc,nisee shall cav to the revenue C;ilector a -' 7c- refundable franchise processing fee as follows: -32- r--1, LJ ^'BiHjT-=74 0 . 1. Initial grant of franchise or renewal of existing franchise: a. Franchise area containing less than 1,000 homes: $ 1,000.00*; b. Franchise area containing 1,000 to 5,000 homes: $2,500.00; C. Franchise area containing 5,001 to 10,000 homes: $5,000.00; d. Franchise area containing 10,001 or more homes: $7,500.00, plus S1.00 Lor each home over 1-0,000. *If the franchise area contains fewer than 100 homes franchise T..av receive credit for ail cr a Dorticn of the processing fee. Said credit shall be aDDiied to franchise fee pavments recruired by Section 4.16.010. Grantina the creait snail be at the sole discretion of _ne ccunc:._ and shall be based upon economic or tecnnciogicai ccnsiaerations soeciric to the franchise area. 2. Consent to sale, transfer,-ransfer stock, assicnment, lease, hvpothecation`cr t_•_st of Lrancn-se, not recru,ring mcaificat_on ne 7rancn_se o-; adcDtion of an amending ordinance: S -,000.00. 3. cd_ricat_on -ecueszea o -i franchisee recuirin.g -he aaoD_tion, of an arend_nc cra_nance. S2,500.00. 4. Consent to sale, transfer, transfer of stock, assicnment or '_ease, or any other act:cn requiring mod=f_cat_oni o.'. _ranicn., se ^,y aacption ✓i an amenaina ord-,ance: S2,500.00. 5. Modification of _ranchise resulting from noncommiiance with one or more orovisions of- the ranchise which reauires the adoo_t_-)n of an amendinq ordinance: S2,500.00. 3. Applicant may be required toDav anv additional costs incurred by City in the processing of aopiicant's request for =ranchise, renewal, <<ociificatien, consent to sale, transfer, transfer of stock, assignment, lease, nvDctnecat4Lon or trust of franchise. Such costs may include the costs incurred for hiring consultants to assist -33- • TSM/TITLE4 • in evaluating the application. Such costs shall be paid by the applicant prior -to final consideration of the request by the Director or the Council, as applicable. 4.14.040 Deposit of publication and notice costs. Upon receipt of an application for franchise, the Citv clerk shall estimate the cost of publication and posting of the notice of hearing, as provided herein, and shall notify the applicant of the amount thereof. No further action will be taken on the application until the estimated cost of publication and _posting has been deposited by the applicant. 4.14.050 Public hearing -- Scheduling prereQuisites. Upon receipt or the required deccsit,the Clerk shall set the application for a o_ublic hearino before the Citv Council. Notwithstandina the forecoinq, no application for franchise shall be set _or Near:. _,nless contains the information required by Secticn -4.14.020. 4.14.100 Postina and oublicaticn costs cost of oublication and posting o= Notice of earina exceeds the amcunt deposited by the ao_oiicant, `ne Cit; ^.al_ aDD1lCant =or the ceflclency. he aooiiCan_ snal, pay --ne whole of such bill within 30 days G:ter rece` -hereof. the amount of the deposit exceeds �e ccs: up_icat:on and coszina ^:e City snall refund =^a ^e applicant. Chapter 4.16 COMPENSATION 4.16.010 Franchise =ee pavments C A. As consideration for _he franchise cranted, franchisee shall pay to tte Revenue Collector lawful monev of the United States, during _ne __fe of the franchise, or each and every year, inclucing the year of arant_na __^.e franc.^.ise, accordi. , zC ::he "r=ncn!5e payment period", =lye percent of its gross revenues derived from the' authorized francn.ise service area(s). 3. Said franchise fee ,:ail be ccmpuzed as follows: '. ,ranchisee shall pay a minimum monthly fee as orovided in -::e ordinance crant;ng the-ranchise; -34- C TBMjTITLE4 0 16 2. Annuallv the franchisee shallA Y a the percentage fee of five percent of its gross revenues less the total minimum monthly fee(s) paid during the franchise payment period. C. Franchisee shall make the monthly fee required herein payable on the first day of each month during the life of the franchise. Franchisee shall make the annual percentage Dayment concurrently with the filing of the reports required by Section 4.12.180. D. Commencing January 1st after the first full calendar year of operational service to subscribers, the amount of the minimum monthly fee shall be subject to an annual readjustment on each January 1st for the remainder of the tern of t: ^.e franchise. Franchisee shall recalculate _^e monthly fee amount to provide that said monthlv fee amount snail be in an amount no less --.'-.an 90 percent of the t,tal franchise Fee payment due to the City for tr.e oreceding calendar -.ear, said 90 percent amount to oe prorated by -2 to determine the monthly Lee amount to be said during_ he current year. E. Anv overoavment of Franchise Lees oaid during the orevious annual oavment Derica shall be creel: -ea to Luture franchise Lees in succeeding francnise fee oavment years, and s -al_ be .deducted -rcm t^e .?GP.tn_V FaE' a -Gun --s 0. - annual cercehtaae amounts as reQuired by the ordinance granting the Francnise. at such ti:te as cvernav;tent nas been Daae, franchisee shall :,otiFy the City or=ranchisee's to deduct anv said CverDayment�s)Current mons:':ly fee amount(s) due and indicate ne sc^:eaul_^g of anv such deduction(s). F. =n addition to the foregoing, the C ' v reserves the right to change its Lees if after a oublic hearing it determines good cause is found and such action is not in conflict with federal laws, LCC rules and regulations or the laws of the State of California. 4.105.020 Initial construction charges. TIn addition to the fcrec_ciac franchise fee cayments, the _ranChiSee sail Day the -Revenue Collector, within 60 days after the end of eacn calendar gear, during the life of the _ancn_se, an _:,Lt_al construction charge for all new construction during said calendar year, calculated at a rate of S100.00 eer mile or Fraction thereof for ail lines and cables laid during t:,e Drecedinc Franchise oayment period within the autnorizea franchise service area. -35- '"BM/T_TTLiY 4.16.030 Incorrect aavments. In the event anv_ amount paid is incorrect in the judgment of the Revenue Collector, it may order the payment of such additional sum or sums as it may deem necessary. 4.16.040 Proration of oavments. In the event of, abandonment of facilities with the approval of the City or in the evert of removal of such facilities by the fran- chisee, the eavments otherwise due the City for occuoancv of the roads or highways by such facilities shall be prorated for the calendar year in which such removal or abandonment occurs as of the end of the calendar month in which removed or abandoned. 4.16.050 Additional charge for late Davment. In the event franchisee fails to maze anv eayments for :he franchise on or before the dates due as hereinabove pro- vided, franchisee shall oav as additional consicera:ion :he feiiowina amount: a sum or money_ equal to 10 oercent or :he amount due. For eac-, Deriod of '_ate cavment cf anv fee extending bevond 30 days of the due date, in addi:icn to the 10 percent late payment charce, an assessment or _..teres: shall accrue at ten ( 10 ) percent oer mon:'-:. 1-:e _�dced charge(s) for late pavment shall be added :o, anc be due and oavable with, the next succeeding pavmen,:. `the City s -al_ not be cblicated to notify the franc::^isee cf ^e accum,ulaticn or late Davment cnarces. 4. -6 . 060 Reccrdkeepin.a-- Examir.ation authorized when. fA. = ranC llsee spall keep and preserve, fSr a period ofive years after ..he date of each franc -:se oavment period, all records :ecessary to determine =ne amount of such franchise fees or other payments due under Sections 4.15.010 and 4.16.020. zranchisee, upon cemand by Citv, shall make such records available for inscection and audit by City or its authorized representative, w thin ::e City. - - - 3. At all reasonable ..imes, :he franchisee snail permit City, or L:s duly authorized representative, to examine all preoerty of the franchisee erected, constructed, laid, operated or maintained pursuant to the franchise, tccetner witn anv aco=:enant prcoerty or r::C.^.:Sc�e, and to examine, audit, and transcribe any and ail books, accounts, papers, maps and other records kept or maintained by the franchisee or under its control which relate to the operations, affairs, transactions, property or Financial condition of the franchisee with resoect to the franchise. 0 -36- • T3M/T1TLE4 i Chapter 4.18 CONSTRUCTION OF FACILITIES 4.18.010 General requirements. A. 1. The cable television system and all franchise property and appurtenances shall be constructed and maintained in an excellent condition, in conformity with the terms and conditions of the Highway Permit Ordinance, or anv other ordinance, rule or regulation now, or as hereafter amended, adeo_ted or prescribed by the City, as may be applicable. All work involved in the construction, opera- tion, maintenance, repair and removal of the system snail be performed with due diligence and using first-class materials. 2. a. The franchisee shall at all times comply with all current applicable laws includi.n.a but not limited to the foilowina: National Zlectrical Safety Code (National 3ureau of Standards); California Public Utilities Commission General Order 95 and General Order 128; Standards of Good Znaineerina Practices for Ieasurements en Cable Television Systems (National Cable Television Association), and FCC standards. b. :n add__ic, nc^_see s' -all , meet the standards submitted bv ::-e franc:isee, which shall- be included the crainance cranti t -e :ranc.n.ise 3. 7= at any ti.,:e, _t is determined by the City or any other agency or authority of competent ]ur i sdiCt_on that anv Dart 3f -:^.e system, _ncludinQ, without limitation, any means CSeC t0 distribllLe Signals over Or within ..: e s_Jstem, �;s .^.armf;._ ro the health or safety of any person, then franchisee shall, at its own cost and expense, oromptly correct all Sucn conditions. 3. Franchisee shall_ not construct or install any poles, conduits or ether cable television system facilities on City highways until franchisee ^as secured the necessary permits from the City. C. Franchisee shall or --vide for at least a 50 -Channel minimum capability, witn return capability on as many channels as possible .cased on the configuration of the cable system, but with t:^e requirement of a minimum of return capability on four c:^anneis. -37- TEM/TiTLE4 i 0 4.18.020 New installations or replacements. A. New installations or replacements of franchise property and appurtenances and all other facilities neces- sary for the installation, operation, maintenance and safety of .the cable television system shall be laid and maintained only pursuant to permit issued by the department. All such installations or replacements shall be reviewed by the Director as to the most desirable location in the roads, highways or public easements of the City, and the decision shall be final and binding on*the franchisee. B. The provisions of this Code shall apply to all work performed in City rights-of-wav and City easements in connection with the franchise. All transmission and distribution lines and cables within Citv richts-of-wav and Citv easements shall be laid and installed underground except where franchisee produces written evidence of permission to utilize existing pole systems, or where the Director finds that the remoteness or the area or other conditions Justify exceptions to the rule. 4.18.030 Hichwav work -- Terms and conditions. The work of constructing, Laying, repiacrng, mainta_ning, recairina, abandoning or removinc allfranchise oroper-v and appurtenances 'n, over, under, along or across any h-enway shall be done to the sat_sfact_on of -ne D_rec-.,_ a -t _ne expense or -.e franchisee, and in accorcance with ail terms and conditions of this Code. 4. _8. 040 Plan of service area -- Reoor..s and mars. ,within 60 days from the effective care o the ordinance grantina the franchise, -ne=ranchisee snail submit to the Director a pian for desicnated service within the authorized service area of the franchise indicatina the date on which franchisee expects the installation of the sys-em will be como_ieted and available for service -o subscribers in the various oarts of said area. The pian shall include a map which details the phases, any, of construction. Franchisee shall furnish the Director with mcntnly progress reports. T_".ereaf-er, franchisee shall furnish mass indicating in detail the 'location of the existing construction, and olanned construction, if any, within 30 days of request by the Director. 4.18.050 Semi-annual completion statement. The _rar.c:^.isee, during the oeriod or construction shaii submit, semiannually to the City a summary of t.e total Number of service connections in operation during the preceding six ca�e^:dar :nontns. 11 T13Mi TITLE4 • CI J 4.18.060 Relocation of franchise property and appurtenances. A. The City reserves the, right to change the grade, to change the width or to alter or chance the location of any highway over which the franchise is granted. If any of the franchise prcperty or appurtenances heretofore or hereafter constructed, installed or maintained by the franchisee pursuant to the franchise on, along, under, over, in, upon or across any highwav are located in a manner which prevents or interferes with the change of grade, traffic neeas, operation, maintenance, improvement, repair, construction, reconstruction, widening, alteration or relocation of the highwav, or anv work or mp_revement upon the highwav, the franchisee shall relocate permanently or temporarily_ any such franchise property or appurtenances at no expense to the City upon receipt cf a written request from the Director to do so, and si-:ail commence such worx on or before t:e date sceci-ried in such written recuest, which date snal- oe not less than 30 days from rece'_pt of sucn written request. Franchisee shall thereafter dillcentl"i orosecute such work tO ccmniez_On; snould f_c::^.Chisee necleCt Or fail to '_"elocate yt5 =dClli 1e5 in d __ e_7 -annex a=ter receipt of anv such notice, _ranc"isee snail ce resoonsiOle ter andSna „ reimbursethe City fcr anv and ail acd--_cna_ costs cr`p.n. exeses incurred by county due or from such de_av _n relocation cf facilities. 3. The C_tv reserves t- I - :e _ _ t c c n s __ ccn repair, alter, r2lOcate and -aintain � pS �_aCe �r ether =aCi_i__eS Or _m)rcvelents Or an,; zvoe OreSCr_pt'_On Ln d gover..aenta_ out -or- 'Drcpr_era y7 CapaC_ :J N_ -:1_.n. E' n,ianways over wh-, cn the franchise iS cranteai. City rinds tnat - the _ccat_on cr relecati_n cL Sucn _-ac_iit_es or _.;jprcvements conll_..ts wit^ the=ranch_se prcperty or appurtenances '_aid constructed or maintained under the franchise, whether suer,franchise prcper_v was _a�d, constr'-lcted or ^ain::_=_Wed be=.;re or alter the facii_t_es of the Ci.y were laid, the=rancr,isee of suc^:=ranchise shall at no expense to the City on or before the gate specified in a wri,.ten request flan the rector, w . 'I:. c 14aze snail not be less than 30 days after the receipt cf suer, notice and recuest to do so, ccrmence work to chance tr,e location either permanently or temporarily of all franchise property c^:d appurtenances sc conf_ic__nc wit.. suer, _Tprovements to a pert;anent or temporary Location -n said :^ia;:ways, to be approved by the airector; ana thereazter diligently prosecute such work to ccmpletion. Snouid-rancnisee aeelect or =ail to relocate ..ts Zaciiities in a timely :Wanner after rece-ct 3f any such ^otice, franchisee shall be -39- AJ 'T'BM/TITLE4 responsible for and additional costs or resulting from such 4.18.070 • shall reimburse the Citv for anv and all expenses incurred by the Citv due to or delav in relocation of facilities. Removal or abandonment of facilities. A. At the expiration, revocation or termination of the franchise or of the permanent discontinuance or the use of all or a portion of its franchise Drooerty, the franchisee shall, within 30 days thereafter, make written application to the Director for authority either to abandon all or a portion of such franchise orooerty in place; or to remove all or a portion of such franchise property. Such application shall describe the franchise oroo_erty desired to be abandoned and its location with reference to City highways, and shall describe with reasonable accuracy the physical condition of such franchise proper --y. _`:e Director shall determine whether anv abanconmen_ or removal wnlc.n. _s thereby proposed may be effected wic^.out detriment to =he public interest and under what conditions such orecesec abandonment or removal may be effected. The Di_ector snail then. ^:o_1fv the franchisee ofL his determi:,acions. 3. Within 30 days after receio:. ..Z such notice, the =_anc ,-see shall appiv for a per.:,!_ from -r:e cec_,art-enL to aba.ncon or remove franchise properry. C. The=ranchis.ee shall, wit.... 60 cans after obtaining such oer..,_t, commence _nd di__:_ent�v prosecute -o comnietion the worK authorized by t o permi=. 4.18.080 Costs or Remova_ -a_c Ov Gran-ee. A. if any faC'eS tC be aoandoned n Place" sub"ect to prescribed condir4ons snail not oe abandoned in accordance wlth ail such con.diticns, the directCr may make additional aoorOD_ riate orders, i .cludl.^.Q_ an order ..::at the -ranchisee wall remove anv or all SUC.^. e franchisee shall comoiv with such additional orders. 3. in -ne ever._ that the franc::^isee _`ails to comply with the terms and conditions of abandonment or removal as may be recuirec by this Division 2, and within such time as may be prescribed by the Director, then the Ci -v may remove, or cause be removed, such tach_tiesat t:ne franch-Lsee's exDense. '^e =ranc:lisee snail pay to the =M/=TLE4 • City the cost of such work plus the current rate of overhead being charged by the City for reimbursable work. C. If at the expiration, revocation or termina- tion of the franchise, or of the permanent discontinuance of the use of all or a portion of its franchise property, the franchisee, within 30 days thereafter, fails or refuses to make written application for the above-mentioned authority, the Director shall make the determination as to whether the franchise property shall be abandoned in place or remove'- The emovedThe Director shall then notifv the franchisee or- the determination. The franchisee snail thereafter comply with the provisions of subsections B and C of Section 4.18.070. Chapter 4.20 SERVICE, RATES AND CONSUMER PROTECTION 4.20.010 Establishment and ur.^._snll:a service -- rocedures and costs. • 3. Within 90 da.vs after obtaining _ne necessary permits, certifications and authorizations, f_anczisee shall co,:mence construction and cable-eleva.-' sien system.=ranc:.isee snail not if-_: -he Director and revenue Collector, in writina within 7-0 days thereof of the date of commencement of construction and instailation work. C. Thefranchisee shall extend and complete "-tie cable television system znrougheut the des_enatea service area wi:h _ reasonable c:._ '= :,40 'loots a� er ccmr)lvina with the reculrements of subsection A, franchisee snail be capable of providing Dasic service to every residence within the rrancInise service area notwithstandino -41- A. Franchisee shall, within one year after acceptance of franchise, obtain all necessary per^its, certifications ana authorizaticns as may De recuired �_, cne Conduct 0.:-' �-- bus_ness. =ranCn_See snail Director and revenue Coilector when al s;:c.^. authcr_zatLons and cer-, _icat_cns --ave -;een _:,t-_r:ea. Should francnisee be unable to comp_ ly •wi -_. -ne roc _r PntJ Or tnis subsect4on within the t:=.e spec:__ec ^ere:^, -ne franchise herein granted sna!_ become _.na •;old anc francnisee snail nave no _-ants_.7ideC however, that City Council may for gocc cause snownby franchisee grant extensions Gf time tG co^ply 'Nit^ -his reculrement. • 3. Within 90 da.vs after obtaining _ne necessary permits, certifications and authorizations, f_anczisee shall co,:mence construction and cable-eleva.-' sien system.=ranc:.isee snail not if-_: -he Director and revenue Collector, in writina within 7-0 days thereof of the date of commencement of construction and instailation work. C. Thefranchisee shall extend and complete "-tie cable television system znrougheut the des_enatea service area wi:h _ reasonable c:._ '= :,40 'loots a� er ccmr)lvina with the reculrements of subsection A, franchisee snail be capable of providing Dasic service to every residence within the rrancInise service area notwithstandino -41- T3M/^TTJL4 �. • the provisions of subsection D; provided, however, that the City Council may for good cause shown by franchisee grant extensions of time to comply with this requirement. D. Upon a reasonable request for basic service to any residence within franchisee's service area, franchisee shall promptly furnish the requested service to such residence; service shall be provided to a residence passed by franchisee's cable plant within 30 days of request for service. Notwithstanding the above, if the franchisee can show that oermits or other authorizations must be obtained or that the provision of such service is impractical, technically unfeasible, economically noncompensatory or will impose an undue hardshio_, the Director :nay waive or defer franchisee's obligation to provide service to such residence. 1. For purocses of determininc comoiiance with the provisions of this section, and to provide for a reasonable and nondiscriminatory oolicy governing provision of cable service to franchise service areas, francnisee shall orevide service to new subscribers at the normal installation charge and menchiv rate for customers t^:at classification under the following terms and conditions: ( 2 ) Where the Number of :^cimes to be passed by such new extension cable piano bears t^:e same or proportional ratio to t:ne total amount of new cable clang as t.e average number oL homes gassed per mile of existing cable plant; or b. In the alternative, the ordinance arancinc the may snec_fv :ne number of nomes -o be passed per mile (for aerial and inderaround construction) which shall recuire Mandatory provision or- service. 2. =n t::e event the requirements of SL'bC_viS'_C.^. re ^ct mer, franchisee shall provide service --- -ew s.:oscr_cers ac -ne normal mono:^iv :ace Lor customers of that classification and :he instailaticn cost oer Subscriber snail be determined as follows: a. Within 1.0 days of request from a ootentiai subscriber,=ranchisee sha-1 orovide a written -42- a. (1) Where the new supscriner, _s located wit: -in 100 feet of existing aerial or trunk or distribution feeder cable or a croup cf .0 or acre new subscribers are wit. is 1320 feet, or a croup l30 .r more new subscribers are within 5280 feet; and ( 2 ) Where the Number of :^cimes to be passed by such new extension cable piano bears t^:e same or proportional ratio to t:ne total amount of new cable clang as t.e average number oL homes gassed per mile of existing cable plant; or b. In the alternative, the ordinance arancinc the may snec_fv :ne number of nomes -o be passed per mile (for aerial and inderaround construction) which shall recuire Mandatory provision or- service. 2. =n t::e event the requirements of SL'bC_viS'_C.^. re ^ct mer, franchisee shall provide service --- -ew s.:oscr_cers ac -ne normal mono:^iv :ace Lor customers of that classification and :he instailaticn cost oer Subscriber snail be determined as follows: a. Within 1.0 days of request from a ootentiai subscriber,=ranchisee sha-1 orovide a written -42- T3M/TITLE4 cost estimate to potential subscribers whose residence or commercial place of business is located in excess of 100 feet from the closest trunk or feeder cable. This estimate is to indicate franchisee's cost for labor and material _plus 10 percent for overhead costs for excessive footage from energized trunk source and/or concealed wiring and/or nonstandard underground drops. in addition, the estimate may include the costs of use of utility poles for aerial cable, if applicable. b. In the event there are less than the average number of homes per :.pile to be passed by cable than are at present in the total plant, cable service will be supplied at a cost based on the following formula for both aerial and underground construction: _. *Cost Der mile to const_.:ct = _ranc:isee's share average homes Der mile in plant'overhead or under- ground as may be aDolicable �1. Cost Der ?1_e t0 COP.St_:Ct = C�s- '- = CJC--✓e suoscr:pers requesting serv4-ce iii. Cost Der subscriber less = Su✓Scr_Jer':Z cost franchisee's cost *"COs.. Der mile -o cons t_,ct" means -..e - ley Dr_ce as supplied by the Cable maP.uLact::rer O ne newest version of ei _ ec_ui p gent Dresen. y be_. used =_ : ch_see _n the system. Such cost to construc- will include the house droos. _ . The `rano:--see s a__ not be resnor.sible for providing service Ln those areas-.eetinc the density requirements herein or in the ordinance c_rantina -he -franchise if the -franchisee is Drec_,_aed by _ne property owner, instrument of record, Or contract -from providing cable services or CCnS-._..ct_nc and _nsrall_ng _ac_lit_es and equipment. 4.20.020 Service -o public facilities. -Franchisee shall, upon wri--en recces- -from -he City, provide and maintain, a.t no cost -o l._tv, at _?as- one cable televls_on -43- • Tale T-TLE4 t drop and free basic service to each City facil' r City facility, whether an owned or a leased facility, facilities utilized by public agencies with which the City contracts for services, each law enforcement facility, fire station, public school or other public facility located within the authorized franchise service area. 4.20.030 Service to private nonprofit schools. A. Franchisee shall provide and maintain, at no cost to City or school, at least one cable television drop and free basic service to each private, nonprofit school site within the authorized franchise service area. B. As used in this section, "private, non profit schools" :Weans . sci.00is that satisfy the r eQ_uirements of Section 12154 of the Education Code of the State cf California, and which are exempt frcm taxation under Section 214 of the Revenue and Taxation Code of -ne State c California. 4.20.035=mercencv override. The franchisee shall inccroorate into _its caiDie television systemn r^e caoa.oilLt v to cermit the City in times of emercencv to override _ne aud`e der-icn of all channels simultaneousiv.. _n asci _icn, `easibie, ne ranchisee may be requires _c cesicnate a c::^an^:e_, which :-av be a ?EG charnel, -o be _sec emercencv brcadcas-s of -both audio and -;ides. The _rand^_see snacooperate with the�se �n:d operation of z. -'e emergencv audio override System. rancn_see s..u_1 cocperate with the C_' t:D ail necessary eouiomen- in times of emercencv. 4.20.040 Interconnection pith cher systems. A. The City reser-.7es the richt .o recuire_she Franchisee to interconnect its cable television system with any other cable ,._levision system operating within -ne City. For good cause shown, Citv may waive or serer this recuirement to interconnect, or grant reasonable extensions of time -o comply with this recuirement. 3. For the ouroose of this section, "interconnection" shall be defined as recer)tion of or conned -Ion to -".ose eiectrcnic signals which are delivered to the _ranchised cable television system by any foreign source =or distribution via rhe cable television system. Such electronic sicnais shall be in a format acceptable -44- T3M/T!--LZ4 •` (within the state-of-the-art technology) for unattended processing into radio frequency enercv for retransmission into the cable television system. 4.20.050 Signal quality responsibilitv. Franchisee shall retain full responsibiiity.for the quality of cable television service to all recipients of redistributed service (i.e., through microwave, master antennae or satellite redistribution). Franchisee shall be presumed to have retained such responsibility together with all obligations arising from the franchise, including but not limited to charges to the ultimate recipient for service. 4.20.060 Compliance with FCC Rules and Reculations. Franchisee shall at a-1 times comply with the rules and regulations governing co,ununity antenna television system (CATV) operations oromulgated by the :FCC. 4.20.070 Exclusive City .:se channel. 'ranchisee shall dedicate one channel for exclusive use ov -he Citv. 4.20.071 Use of Facilities and EguiD~.en` rn add_t_cn to exclusive C_ -v use cnanne_ as _rC._ ed _ Section 41.20.070, Franchisee shall orovide Citv w_t.. ane facilities and equipment as necessary for ?FG 4.20.080 Public, educational andccve- -en-- .:se (PEG) channels. - - A. =n addition to exclus_';e City use cnanne_ as provided =__ _n Section 4.20.070, franc:: -see s.ai_ _ec_ca_e a minimum .,_ six channels for public, educational and gover_.:-ent-_ uses. .-7 se of macn t_JDe ._ said cnanne-s sr:all be :n acccrdar.ce pith City) policies and procedures. City eser-: es _::e _ ig::t to change, delete cr amend such policies and orccedures during the term of the franchise. 3. If =ewer than six PEG channels are to be activated _ dally; , activation of channels beyond t:-iose recuired for initial activation snail be according to a formula whic, shall be expressed in t~:e ordinance granting the franchise. C. IChannels activated =or Dublic or eCL'C3t4Onal dCCeSS uses shall contain dally notice of the name, address and telephone number of the party to contact for information regarding access uses, and advisemen^: that other channels, __ any, are available for PEG uses. The _anguage cl t..e notices s a1- be approved by :-e Revenue 0 -45- TB.M/T I TLE 4 a $ Collector, prior to carriage and the notices _ e shall be provided on a scheduled basis as determined by tle Revenue Collector. 2. In addition, in the event that not all PEG channels are activated and utilized for PEG uses, the franchisee shall issue periodic written notice (at least once a year) to subscribers informing them that additional channels are dedicated for oubiic, educational and governmental uses and are temporarily being used for other programming purposes until needed for community and governmental uses. Information shall also be provided regarding whom to contact regarding PEG uses. D. Franchisee may utilize DEG channels dedicated C or, but not yet utilized for, PEG uses, for orcgramming of their choice until such Gime as utilized For PEG uses; provided, however, that or --or _o f:rancnisee's use ..Z any such PEG channel(s), franc^.isee give 60 days written notice by cert:—f-ed mal- ..c -e Revenue C.,-_ect.._ suc. _se. ` 1,e Revenue Collector shall aive franc^:see 60 cays cr_cr wr,tten notice of _ntent_on zo .*se sucn channei(s) for PEG use(s). Provided, .owever, should __anthisee t___ze suc^ channel (s ) wit:: orcara:rming which orcvides f..r local advert -sine, Franchisee mall be recuirec z orcvide PEG informational Notices as required in s::bsectL-on (C)(l) on anv such c-annel. Z. Under .t_l - zed PEG cha.ine_S, act •razed _zr PEG uses may also be uti_i ized by franc^isee =zr co.t;pa_ible z-ioe programming subject to _ales and p-rocecures _S-zacl_sced and as may be modified by the Cizy = rcucncuz the term 3f z:e franchise. F. Franchisee shall not be oermitted to use a dedica=ed PEG channel czher c^.an: el caoaci_v on _::e system has not been pregra=ed. G. The Revenue Co_lectcr tray for Good cause waive or modify the requirements of zhis section. 4.20.085 PEG orcvisions -- Not fee cr oavments in kind. Franchisee shah agree :.-ac zhe orovision of _PEG ­ channels, free cable dreo, free basic service, equipment and emergency services, as specified in Sections ".20.020, 4.20.030, -.20.035, -.20.070, 4.20.071, and 4.20.080, shall not be ccnsidered as wiz -in the meaning 3f _::e term "franchise fee" or "payments in ind" as used in Section 622(8) of the Cable .Act. . -46- TBM/TITLE4 • • 4.20.090 Return capability for exclusive Citv use channel and PEG channels. When required by the Revenue Collector, franchisee shall provide return capability channei(s) for use in connection with the exclusive City use channel and/or PEG channel(s). Said return caD_ability may be provided on PEG channels. 4.20.095 Leased access channels. Franchisee shall provide leased access channels as required pursuant to Section 612 of the Cable Act. Total system capacity shall be calculated inclusive of PEG channels. Franchisee shall submit information regarding leased access channel rates to Citv when requested. Leased access channel rates shall be available for public inspection. 4.20.097 Local public broadcasting channel recuirements. To the extent authorized by law, every franchisee shall carry a oubiic broadcast stat`on�s) on a cable channel within channels 2 throuch 13, inciusive, or on its current broadcast channel ide.^.tificationnumber, or on cable channel number as otherwise agreed to by :he Peve.n.ue Collector and the franchisee. Franchisee -av not c-ance _.-e cable channel placement of th:e public broadcast stations) wit -out the Revenue Collector's wr`tten recuirement shall apply to ail -Franchises ranted,-e.n.ewea, assigned or moo-,Zled aster the of-Fect`-.e ate : =he ordinance codified in this section. 4.20.100 Standards for service recru, remenz_. A. The Citv may rec_uire franc. -`see :c 4_el::er to subscriber terminals to those television or^aacaSts and caD_ecast signals which are now or ^.ereafter aUl ' ,r:7rd =-r carriage by the FCC. The signals produced by the system shall be f nigh qua -ii --y zhroughcut the system w:tn no difference oerceptible to viewers whetter `n close preximit_v t0 t: e nead-end or at r -he =art.^.est extension or the _-unK line. 3. Franchisee shall distribute in color those television signals which _c receives in color. The system, as `nstalled, shall be capable of oassing standard black and white and color video charnels with associated audio signals wiz -out :taterial degradation and with no phase sift and no effect on color -Fidelity and intelligence. C. ,ranchisee shall render such service to subscriber as will meet technical and performance L of tie -franchise. At a minimum, _ranchisee 0 -47- TBM/TITLE4 C shall provide the broad categories of services and mix, quality, and level of programming represented to the City in the application and made a part of the franchise agreement. 2. As an aid to City in monitoring signal strength and quality, franchisee shall provide City with copies of all FCC Signal Performance Reports. Should the FCC no longer require signal performance reports, franchisee shall make and submit such performance tests and reports in response to written request by the City. Any time the signal does not meet FCC standards or the standards of franchisee's application as incorporated in the ordinance granting the franchise, franchisee shall make a pro rata rebate, in money or in services, to each subscriber based upon the percentage by which the signal fails below standard and upon the length of time that such condition has existed. Such rebate shall be made to the satisfaction of each subscriber, or of City if agreement with the subscriber cannot be reached. D. Franchisee shall provide program origination if so recuired by the FCC or the ordinance granting t:^,e franchise. E. Franchisee shall render efficient service, making repair oremotly and i:terruptinq service only 'tor good cause and _or the shortest possible __ae; an,,, scheduled interruptions, insCfar as possible, shall oe oreceaed by notice given to subscriber at least 24 .^_O'urs InaGVai.Ce and shall occur Curing pericas or minimum use the system. F.ranchisee must retain and '-ave available emergency personnel capable of perfcrming emercencv repairs and maintenance 24 hours a day, every cav, incl�aing weekends and hoiidays. The Revenue Collector may waive or mcdi=v tris recuirement if =ranchisee can demonstrate that It is not economically feasible to provide such emergency oersonnel. G. Franc:nisee shall notify the Revenue Collector within 48 ^ours of when the cable television system is down, when the system is havinc technical difficulties -which may affect services to t,e subscriber, cr when franchisee's telephone lines are out of service, in order that the Revenue CCliector is able t0 advise nose suoscrioer who contact the Citv due to inability to reach the cable oneraticn Tn additicn, franchisee shall advise the Revenue Collector, by telephone and in writing of all scheduled M, which will cause disruptions to service, and of any boraces _t Tore an =cur hours duration. TBMjTITEE4 H. A line item on each bill to the subscriber shall describe any credits for interruptions, and credit(s) shall automatically be given on a pro -rata basis to any sub- scriber(s) affected by interruption(s) of service for more than two hour due to actions or outages under the control of the franchisee, exclusive of scheduled repairs or maintenance that franchisee has provided advance notice of to subscriber; for such interruption(s) of service not under the control of the franchisee, credit(s) shall be civen on a pro -rata basis upon the request of the subscriber(s). I. Franchisee shall maintain and upgrade the system and services to reflect feasible technical and economic developments occurring during the term of the franchise which will benefit the public in terms of new and more effective and efficient service and to orovide a state-of-t^e-art cable television system whic:, meets ---e interests and :needs of the cornrnuniLv du ---,ng :ne term of the franchise. ~a -ch -see shall crovide and t:a- nra' 7, continuous service to subscribers unless allowed t-:erwise by the =CC. .ranchisee nav petition :ne =CC au_nor_ze the suspension or abandonment of service -=n �7,cn reasonable terms and conditions as may be o_escr:tec b•! FCC. 1 coov o_ anv Such oetitlon snail oe ec County enaineer Concurrently with L- ^.e --__- W1Lh the FCC. R. Don request of subscriber or :Dozen-'- -subscriber, franchisee s: -all DrOvide a =rnin= ;be=_re �2 noon) or afternoon (after 12 noon) service Ca.. or _nStal- lation appointment. Should franc::^.isee be --able =c .Keep t:ne aceoi.--ment, subscriber shall ce hetiflea at =ne _�rliest possible 000crtur:ity, and shall be resc^ed.:lec on a oricrity basis. Y.20.110=r.stallati�n -- Technical documentazicn. Franchisee snail crovide _ne Revenue COilectOr With complete technical COC :T:entaCiOi Of ^.e cable television sv_ SCem as installed. Said Cocume.n-_aticn shill! include, but is not limited to, .nead-ena equ'izment and location, satellite location and tecf:nica- parameters, and IC --he backbone cable routine but need not '_ncl;:Ge each subscriber drOD. Slic- docum enzaticr, shah :e senC =0 t::e Revenue Collector within 60 days of initiation of subscriber service and shall be ':plated as necessary. -49- TSM/TI _'L_E4 • 4.20.120 Subscriber complaints -- Investiaati on, resolution and reccrdkeepina. A. Response to subscriber complaints shall be initiated within one business day of receipt and the resolution of subscriber complaints shall be effected by the franchisee not later than 'three business days after receipt of the comDiaint. Should a supervisor not be available when requested by a subscriber, a supervisor shall return the subscribers telephone call at the earliest possible time and in no event later than the end of the next business day. If a subscriber has notified franchisee in writing that a bill is in dispute, franchisee shall not terminate service pending resolution of the dispute, nor shall the account be turned over or reported to a collection aa_encv, provided that the remainina balance of the bill is current. A bill shall not be considered to be in cisp_ute solely bv_ reason of nonpavTr.er.t by subscriber. S. -icon comclaint by anv subscriber, =ranchisee shall nave the burden to satisfy the Revenue Col_ec-or tnat a sicnal is bei^:a delivered which is or surticient strenath and quality to meet standards ccntained in the FCC _ 'es and rea•,_at__-ns, as we:_ as the res :n e== ct cu_ City stanca_ -e _nq _neu..e_... of the �ra.^.c:^.iso. The Revenue Ccl_ec-c_ ^av n ~ YT _ �c cons_ce-rat_en of the complaint and ev_dence =ranc-isee, order that t^e tranchisee -war; :ne apprcor_a:e credit to the complaining subscriber. C. Franchisee shall mainta_n a wr:tte, cc.:Lp_ai ..t -record containing the to_lo,air: c _ntormat__... 1. Date and time of subscriber complaint; 2. Identification of the c0mp_lainant by Name, address and telephone number; 3. Description of the nature of _'-e complaint; 4. A record of when and what action was taken by franchisee to resolve the complaint. D. The complaint record shall be.keot at _`ranchisee's local cffice for a oericd of _wo _year after receipt of any such complaint. A copy of said comp;aint record shall be submitted by franchisee to the Revenue Collector upon francnisee's application 'for extension of • • TBM/TITLE4. . " 9 - 0 service area(s), modification, transfer or renewal of franchise and within 10 days following receipt of a written request therefor from the Revenue Collection. 1. If required by the Revenue Collector, said complaint record shall contain a semi-annual (through June 30th and throuch December 31st) breakdown indicating the total number of complaints received for the preceding reporting period, and shall indicate the major classifications of complaints as follows: construction, billing customer relations/service, miscellaneous. E. Throughout the term of the franchise, franchisee shall maintain an outace loq showing the date, approximate time and duration, lupe and probable cause of all head -end, trunk or distribution line service=ail'.,res. The log shall also include information relating to routine testina or scheduled maintenance outages. �i COpV OL Sd1G outage leg shall be submitted by franchisee to `:e Revenue Collector within. 10 days following receio_t of a wri-ten recuest therefor from the City. 4.20.122 Special --ests and ~epor-s. -+nen complaints nave been :-Laae, evidence indicates an _..resolved controversy or significant noncompliance wit:^ -.cmc iso Standards, or when circumstances exist wnicn, ne Judgment of ,...e Revenue Collector, cast ccuctc 'pcn -ne reliabil_ty or quality of cable service, -ne P_even,.;e Collector -lav recuire=ranchisee, at c;s-, -o test, analvze and provide a written repo-: -ne performance of _ne system. Said _epos s-__ .:e to the Revenue Collec-or, no later -nan 111 says after franchisee is notified, in writ_na, of -ne _=cu_red reo_cr. and s -ail -.^.cluce -^e _`ol_cwing __.f=.at_on. nature or _4 4.e cc'molalnts which precipitated the special -ests; what System component was tested, _ne equ_pm.en-: ,sed, and procedures emcioved in said testing; the results of such test; and the met_.ca in which said complaints were rescl°,ed. -`e Revenue I Collector nav require _pat tests and analyses be supervised by an independent _prozessionai encineer acceptable -o the Citv. The cost of such tests shall be borne by z,e franchisee. The tests shall be forwarded to ,.ne Revenue Collector with a report interpreting the results of the tests and recommending actions to be taken. 2.20.124 Subscriber-erminal `est -ecuests. ^ranchisee shah, upon reasor.aoie reauest cr conoiaint by subscriber, perform such tests as necessary at the sub- scriber's terminal to establish whether a signal of recuisi-e quality is being delivered to the subscribers -51- TEM/ TITLL4 premises. The results of such test(s) shall be given to the subscriber as soon as the test is completed and evaluated, and in no.event later than 10 days after the test is conducted. Results of such tests will be submitted to the Revenue Collector, upon recTuest. 4.20.126 Periodic review of system quality. The Revenue Collector shail nave the richt to conduct periodic reviews of the _performance and quality of the system during the term of the franchise. The record of subscriber complaints, the record of performance tests and other tests or surveys conducted shall be included in the review. 4.20.130 Notice and information to subscribers. • 2. The availability of any devices requifed by federal, state or local law, such as, but r:ct __mired to, parental lock box device and a switcnir.g device ("ASB" switch), and any fees or cnarces associated with receiving tr.e devices; 3. The address, teleoi-:cne number and hours of business of franchisee's focal office fcr service and resolution of complaints for the _ranchise area; 4. _demi__ication e Cit,', including address and telephone number, as t1ne re-ferral agency, in a form of language to be orcvided by ..he Revenue Collector; 5. A separate, written notice containing informnation regarcing protect_ori c: subscriber brivacv -72- A. Prior to or at the time of installation, franchisee shall provide each new subscriber witn written information regardinc: 1. A listing of ail services, oac'{aaes and rates.available at the time, including bii__na co dons and dispute procedures, refund proceaures, and company ooiicies regarding_ disconnection and reconnection services and charges; a. �f franchisee `:as __ac -ed _c 1fil�ze y ,ne rLem charges for ranc:nice fees, fees as permitted under Sect_�Dn 0-34 c` :ne Cable -c- - _ such __st_nas, whether wr_tten or ora_, _..a__ ._sc_ose f 0 the bTospecz:_ve subscr_oer _.:e _'oral: ccs..s asscc_a,.ec Nl._.. receiving cable services. ?r_or _o _ne _ssuance _ env s�:cz notices, a ccoy shall be submitted to the %evenue CciLecf'Jr for review and approval of the noboes . • 2. The availability of any devices requifed by federal, state or local law, such as, but r:ct __mired to, parental lock box device and a switcnir.g device ("ASB" switch), and any fees or cnarces associated with receiving tr.e devices; 3. The address, teleoi-:cne number and hours of business of franchisee's focal office fcr service and resolution of complaints for the _ranchise area; 4. _demi__ication e Cit,', including address and telephone number, as t1ne re-ferral agency, in a form of language to be orcvided by ..he Revenue Collector; 5. A separate, written notice containing informnation regarcing protect_ori c: subscriber brivacv -72- TBM/TITLE4 • rights as specified under Section 631 of the Cable Act. Said notice to subscribers regardinq protection of privac; rights shall be issued in a separate, written notice at least once a year thereafter; 6. Other aoprooriate information regardina franchisee's system as required by the Revenue Collector. B. Franchisee shall also provide a separate, written notice to all subscribers eve-ry six months or as required by the Revenue Collector, which identi-`ies the department as required in subsection (A)(4). 1. Semi-annually, the Revenue Collector shall provide the lanquage of the notice to be issued to new and current subscribers. Failure to circulate the notice every six months as required in t:^is sunsection 3 shall result in th.e=ranchisee being assessed a fine of one dollar per subscriber oer month until such time as notiL_cation is made to subscribers as required. ,.20.1-0 local business of�ice A. Franchisee Franchisee shall maintain a 'local business rf_ce �i _n he C_ v and provide the Revenue ector wit.'n _ne name, address and teleonone number cif- t^e person(s) who will. act as -the franchisee's agents) rcr ceneral anace: e. ^.t O- the System and to reCe'_Ve COTDia'_^ 'egarC�P.C' --uality of service, equipment maI=unctions , and similar Tatters. = ranchiSee shall advise City of a C:' a.n.ce of franc.^.i See' s aeent (s ) wi trin five worKi-a days of any such C..^.ante. :he local 3,f-ce:sha7' be Open to receive inquiries or comp_faints from subscribers durinq normal business hours. A toll-free phone number shall be available to all subscribers located within ..he franchised area for the reocrzlnz of service oroblems on a 24 hours oer dav, seven days per weer, 365 days per year basis. 3. Franchisee shall orovide sufficient telephone -nes, either adequately staffed or with answerinq CaDdD1_it1l,arovidinq, at the. minimum, emergency referral -53- C. 1. '.he notices required in subsections (A)(5) and (3) of Section 4.20._30 may be _1ncludec _.. ^e maiy_nq of _^:e subscriber's b____:a statemen , ou: S -all not be accompanied by any promotional Macer!_: IS. 2. Franchisee s:^.al_ o ace _..e P.evenue Collect.,_ en a ma__inc i_st for the not_ces _equ_red _n subsections (A)(5) and (3) of this Sect_.. 4.20.130. ,.20.1-0 local business of�ice A. Franchisee Franchisee shall maintain a 'local business rf_ce �i _n he C_ v and provide the Revenue ector wit.'n _ne name, address and teleonone number cif- t^e person(s) who will. act as -the franchisee's agents) rcr ceneral anace: e. ^.t O- the System and to reCe'_Ve COTDia'_^ 'egarC�P.C' --uality of service, equipment maI=unctions , and similar Tatters. = ranchiSee shall advise City of a C:' a.n.ce of franc.^.i See' s aeent (s ) wi trin five worKi-a days of any such C..^.ante. :he local 3,f-ce:sha7' be Open to receive inquiries or comp_faints from subscribers durinq normal business hours. A toll-free phone number shall be available to all subscribers located within ..he franchised area for the reocrzlnz of service oroblems on a 24 hours oer dav, seven days per weer, 365 days per year basis. 3. Franchisee shall orovide sufficient telephone -nes, either adequately staffed or with answerinq CaDdD1_it1l,arovidinq, at the. minimum, emergency referral -53- • ^.t 3Mi. • • r/ rT Tir 1 . T r :rY information. Franchisee shall return calls for services or Complaints rece_ved dur_P.Q normal business hours within '-Our business ..ours Or receipt, and shall promptly investigate and resolve all calls for service and ccmpiaints. During Periods when answering service or machine is used, franchisee shall orcvide on-call personnel who shall_ contact the answering service/ machine, at a minimum, every four hours to check on requests for service and cempiaints. C. =n order to determine whether sufficient telephone _i..^.es are provided, the Revenue Collector may require ::,,at a busy study, traffic study or other study be conducted, at franchisee's expense, if any, by the local telephone comoanv. Should franchisee have its own telephone equipment which can report on telephone line(s) usage, the franchisee may submit such reoort from its own systesn. D. Should ^.e Revenue Col;ect :r cetera!_^e -"at inSllffi fent telep,:0%e fines Or _naaegu'ate Staff eiStS, francn_see snal_ -ake necessary ._eos 7:o ensure -nat adecuate-eleo--ne 1 -:nes Cr sza--ing are avallaole =Or normal, dally activIzies. Considerat cn shall be even -or periods of oromcticnal activities or cutaces. The mon: nly bi _ling perrc-a sha__ ce cc..srce_ed -s a ..,anal, aCtlVltV -o_ pllrt)CSeS of Ce -e' 'li ,._ng 3Ceg"a-e-e_eCnCne -es and/cr to - c Y• L O• O � a- e s Q n d - a t e m a n g e s. _.r C e p t J _ -1 extent oree-otec D-; -ede_ _ _ State _ ws a _ecu__ :D."s, zne orocedl.res and Standards Set -Ort.. :. t.._5 sec:_^..- spall orevai l except as ^ec__rea by The ordnance cran_l:':c __.e ranchise. A. :or new and newly renewed franchises, during the first year of operational service offered -o subscriber, franc^_see snal_ charge a subscriber :o more -Cr 1-s ser -:ices _han the rates and charces initially aoproved by --:e z C ur:c__ when ar=_—_na z e -rancnise. _ ranc :_see shall not change rates or charges unless such chances are approved or authorized in t_^.e manner provided i section. 3. 1. For existingfranchises and of-er `ne first year of operative service to sudscriber, for new and newly renewed franc.^.=ses, __ nc^isee shalt^:Calf=1 Revenue Collector of any proposed change in rates Or c.^.araes. -he nctlflcat_on shall include a wrl-ten list snowing the rates and charges Currently in effect and -he orcoosed c.^.ances. The notice snall also incluae the 'uSt1-lcar-0on (S ) tOr t ,e proposed cnange (s) . -54- El T3M/TITLE4 • 1 11 " 2. Within 30 days after submission of franchisee's proposed chances, the Revenue Collector, in his or her sole discretion, shall either approve or disapprove of the proposed changes, or any of them, and shall notify franchisee of the decision. To the extent that any proposed change is disapproved, the Revenue Collector shall set forth in writing findings of fact for disapproval. 3. Franchisee shall not take any action to chance rates or charges until authorized to do so by the Revenue Collector, or as a result of an appeal taken as indicated in this section. C. Franchisee mav, within 10 days after mailing of the notification of decision, appeal such decision to the Citv Council. Upon receipt of the appeal, the Council :nav take any one of the following actions: 1. Approve the decision; 2. Refer the matter back to -`:e Re,�enue Collector with or without instruction; 3. Set the matter =or public ::ear_nc betcre itself; such public hearing shall be held de novo as _= no hearinc orevrousiy had been ^eld. 4.20.160 Notice -o subscriber -con- uance se r V c =cr ncnoayrr.en rancn_see spa__ _ ro _ :e_-2ast 60 dans wr"__..en notice to a subscr,ber or_zr -z discontinuance of service for ncn.pay.;�ent. The notice shall contain the date, time and olace by which pay: -en- .rust be made in order to prevent disconnection of service. 4.20.'_65 Restoration of service disconnected in errc-- No c:.arce -z subscr_ber ---e event franchisee hasimorcnerly or inadvertently disconnected cable services to a subscriber, franchisee shall croviae r:cr restoration without c: arae to subscriber within two business days of discovery of disconnection. 4.20.170 Desicnation of franchisee -'e-es and other line items on subscribers' sta-ements -- Reauired notices. Franc:nIsee s_,ali n.oti_v s;:oscr vers at least 30 days prior to the f__st _nc::s_on of _ranch_se =ees and/or otter 74 ne items on their -statements, as oermitted in Section 622(o) and (g) cf the Cable Act. Said notice shall explain the election to use line :term designations and the effects such designations shall :^.ave on the total costs associated with receiving cable services. No sucI notice snail be issued to _55- • TEM/TITLE4 3 subscribers until the Citv has reviewed and approved the notice. Any designation of franchise fees as a separate line 'item on the statement shall use the term "franchise fee." 4.20.180 Recuirements of notice of proposed chances in rates, charces, tierinc or carriace. Whether or not tne rrancnise is subject to rate regulation by the City, franchisee shall provide notice to subscribers and the City of chances in rates, charges, tiering or carriage as provided herein: y A. Franchisee shall notify all subscriber, in writing, of any proposed changes in subscriber rates, charces, tiering or carriage at least 60 days in advance of the effective date of such proposed changes. in no event shall a subscriber be billed for service at the increased rate or c^arge o -_or to the delivery of .he notification to the subscriber. E. Franc^_see shall not_. ..ne Revenue C01 lector, in writing, of any proposed chances in subscr_ber rates and charces, .._erinc or damace at 'east 90 cays aavance the effect_ve date of such prcpcsea chances. _ne notihr ficat_onto the Revenue Collector seal: -.-c-',--de a -. showina t e aces and c: arses currently n e ect and ^e procosed charges. Only those rates anc shares arm n file with the decartment may be c^arced to suoscribers. C. if it is imnract_cai or _.;.00ss_bie for franc^.i see to crov_de above .^.ot_=ications c,, -:e -o condi tions beyond franchisee's control, f-anchisee shall sive reason- able notice to subscribers and the Revenue Colector. D. in the event of a rate increase, retierina or other change(s) in service by _ranc^isee, subscribers may downgrade or disconnect service without charee; provided, however, that charges may be imposed for failure to return converter boxes, remote controls or other ecu_oment owned by the franchisee. 4.20.190 Preference to certain subscribers prohibited. Franchisee snail not brant any preference or advantage to any person or group, nor subject any Derson or group to prejuaice or disaavantage as to rates, charges, services, service facilities, rules and reQuiations or in any other respect relative to the rights granted under the franchise. Nothing in this section shall prohibit the . franchisee from offerinq.limited, promotional specials, nor from cfferina bulk or discount billings. -56- ►�J • SECTION 2. The provisions of Section 1 of this Ordinance specs tally supersede Division 3, Division 3a, and Division 4 of Title 15 of the Los Angeles County Code previously incorporated by reference into the Santa Clarita Municipal Code. SECTION 3. The City Clerk shall cause a summary of this Ordinance to be published and a certified copy of the full text to be posted in the office of the Clerk at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. within fifteen (15) days following the adoption of this Ordinance, the City Clerk shall again publish a summary of the Ordinance with the names of those City Councilmembers voting for and against the Ordinance and the City Clerk shall post in the office of the City Clerk a certified copy of the full text of the adopted Ordinance along with the names of those City Councilmembers voting for and against the Ordinance. PASSED AND APPROVED this day of , 1989. • ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA MAYOR i, , City Clerk of the City of Santa Clarita, do hereby cern y that the foregoing Ordinance No. was regularly introduced and placed upon its first reaEing at a regular meeting of the City Council on the day of , 1989. That thereafter, said Ordinance was duly a opted and passed at a regular meeting of the City Council on the day of , 1989, by the following vote, to wit: • 9 V"w 0 , 1 0 AYES: NOES: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: • CITY CLZR-X-