Alhambra Municipal Code Ch. 4.04 Community Antenna Television Systems

Section

General Provisions

Procedures for Granting, Renewing, Transferring, and Acquiring Cable Television Franchises

General Financial and Insurance Provisions

Design and Construction

Subscriber Rights

Rates

Service Provisions

Operation and Maintenance

Condemnation

Reports

Miscellaneous Provisions

GENERAL PROVISIONS

This chapter shall be known as the Alhambra Cable Television Ordinance.

(Ord. 4315, passed 11-12-96)

For the purposes of this chapter, the following terms, phrases, words and abbreviations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future tense, and words in singular number include the plural number. Words not defined herein shall be given the meaning set forth in the Cable Communications Policy Act of 1984 ("Cable Act"), 47 U.S.C. Section 521 et seq. and as hereinafter may be amended, and if not defined therein, their common and ordinary meaning.

ACCESS CORPORATION. A nonprofit, public corporation established or authorized by the city, whose duties shall include the management and operation of the PEG Access Channels.

AFFILIATE. Any person directly or indirectly controlling, controlled by or under common control of grantee.

APPLICATION or PROPOSAL. A formal response by a qualified cable company in accordance with the city specifications to provide cable services to residents, businesses, industries, and institutions within the city, which has been submitted to and received by the city.

CABLE ACT. The Cable Communications Policy Act of 1984, 47 U.S.C. Section 521 et seq. and as hereinafter may amended.

CABLE SYSTEM. A facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service (which includes video programming) to multiple subscribers within the city, but such term does not include:

(1) A facility that serves only to retransmit the television signals of one or more television broadcast stations;

(2) A facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control, or management, unless such facility uses any public right-of-way;

(3) A facility of a common carrier, except that such facility shall be considered a cable system to the extent such facility is used in the transmission of video programming directly to subscribers; or

(4) Any facility of an electric utility used solely for operating its electric utility system.

CABLE SERVICE. The transmission on a cable system of video programming or other programming (or programming related services), together with subscriber interaction, if any.

CITY. The city of Alhambra, a municipal corporation of the state of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.

CITY COUNCIL. The governing body of the city.

CITY MANAGER. The City Manager or his or her designee.

COMPLETION OF CONSTRUCTION. The point in time when all transmission equipment, facilities and construction work is installed and completed, and that all appropriate tests have been completed such that applicable performance standards pertaining to or dependant upon such construction is verified. The term COMPLETION OF CONSTRUCTION does not include marketing and installation of subscriber service.

CONTROL. The possession, directly or indirectly, of the power to direct, or to cause the direction of, the management and policies of a specified person, whether through the ownership of voting securities, by contract or otherwise.

DISTRIBUTION FACILITIES. Non-subscriber specific cable equipment including trunk and distribution lines, excluding drop lines to specific locations.

DROP. The cable and related equipment connecting the system's plant to equipment at the subscriber's premises.

EDUCATIONAL CHANNEL. A channel which designates educational institutions as the primary programmer(s).

FCC. The Federal Communications Commission or its designated representative(s).

FRANCHISE. The right to construct, operate and maintain a cable television system in designated locations within the city pursuant to the terms and conditions of this chapter, the Franchise Agreement, any resolution approving the transfer of the franchise, any rate order of the city, and any agreement or contract between the city and grantee.

FRANCHISE AGREEMENT. An ordinance granting a franchise pursuant to the terms of this chapter. Any conflict between the terms of this chapter and the franchise agreement shall be resolved in favor of this chapter.

FRANCHISE AREA. The geographic area within the city designated in a franchise where grantee may operate a cable system, as defined in the franchise agreement.

GOVERNMENT CHANNEL. A channel which designates a local government agency or agencies as the primary programmer(s).

GRANTEE. Any person to whom a valid franchise is granted by the city under this chapter, and the lawful successor, transferee or assignee of said person.

GROSS REVENUES. Any and all revenue (including without limitation revenue, payments, cash, credits, real property, personal property, or any form of consideration) which is received, whether directly or indirectly, by grantee, its affiliates, or any other person in which grantee has a financial interest, from or in connection with the operation of the subject cable system, or any part of such system. Such revenue shall include but not be limited to the following:

(1) Any and all fees charged to subscribers for cable service including without limitation fees for any and all basic service, optional service, tier service, audio service, commercial service, premium service, pay television service, pay-per-view service and related per-event service, or for the distribution of any other cable service over the cable system;

(2) Any and all fees charged to subscribers for installation, disconnection, reconnection, change in service and similar fees;

(3) Any and all fees charged to subscribers for converters, remote controls, modems or other equipment leased, rented or sold to subscribers in connection with the delivery of cable services;

(4) Any and all fees charged to subscribers for service charges and/or late fees attributable to delinquent accounts;

(5) Any and all revenue collected by grantee from its subscribers for direct payment to a third party as a cost of doing business (including without limitation possessory interest tax, copyright fees, program license fees and subscriber payments for PEG access);

(6) Any and all revenue received from service related activities (as defined herein) including without limitation any and all revenue received from leased access programmers and other users, or the use, license or lease of studio rental and production equipment, or the sale, exchange or cablecast of any programming developed on or for community service channels or institutional users, or the sale of advertising or the lease of channel capacity on a cable system, without deduction for any commission paid to an advertising agency in connection with the sale of advertising on a cable system.

(7) Any and all revenue of any person which is derived directly or indirectly from or in connection with the operation of a cable system, including but not limited to revenue or compensation which on the one hand is paid by any of the following: (i) the subscribers or users of such cable system, or (ii) the advertisers on such cable system, or (iii) any other party, and on the other hand is paid to any of the following: (i) the suppliers of programming on such cable system, or (ii) home shopping services in connection with the sales of products or services derived from programming transmitted over such cable system, to the extent such revenue represents payment, in whole or in part, for the use of a channel on the system; or (iii) leased access programmers for programming transmitted over such cable system; and

(8) And refundable deposits.

Gross revenues shall not include any tax of general applicability imposed upon grantee by the city, state, federal or any other governmental entity and required to be collected by grantee and passed through to the taxing entity, provided such taxes are identified as a separate line item on subscriber statements. The franchise fee shall be included in gross revenue to the extent allowed by applicable federal law.

For purposes of franchise fee payments only, with respect to inclusion of franchise fees as a component of gross revenues, not withstanding any position to the contrary under current FCC rules, in the event that the current fee definition or method of payment is overturned on appeal or otherwise changed to include such fees, then this chapter shall be deemed to have included franchise fees as a component of gross revenues from the effective date of the franchise.

In computing gross revenues from sources other than subscribers, including but not limited to revenue from the sale of advertising, lists of the names and addresses of grantee's, subscribers, home shopping services, guide sales, or the lease of channel capacity over its cable system, which revenue is attributable both to the operation of grantee's cable system inside the city and in areas outside the city, the aggregate revenue received by grantee from such other sources shall first be multiplied by a fraction, the numerator of which shall be the number of grantee's subscribers in the city as of the last day of the relevant billing period and the denominator of which shall be the number of subscribers within all areas served by grantee as of the last day of such period, and then assessed for franchise fees.

NORMAL OPERATING CONDITIONS. Those service conditions which are within the control of grantee. Those conditions which are not in control of grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the control of grantee include, but are not limited to, special promotions, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the cable system.

PERSON. A natural person, legal entity or other entity, including without limitation, a corporation, trust, partnership, company, business, firm, joint venture, governmental entity, or any other association.

PUBLIC RIGHT-OF-WAY. Any of the following that are controlled, used or dedicated for use by the public and located within the city's jurisdictional limits: streets, roadways, highways, avenues, lanes, alleys, sidewalks, rights of way and similar public property within which grantee may place its facilities for operating a cable system.

SERVICE INTERRUPTION. The loss or impairment of the pictures or sound on one or more channels or frequency bands of the cable system used in connection with the transmission of program information or services to any subscriber.

SERVICE RELATED ACTIVITY. Any activity or function for which grantee receives revenue from any user or person other than a subscriber and which is directly associated with the operation of its cable system, or the production or distribution of any cable service or other communications services over the cable system, including, but not limited to, revenues from advertising sales, home shopping commissions, the sales of products or services, program guide payments, payments from the lessors or purchasers of leased access channel capacity, payments for studio and other facilities or equipment rentals, billing services, audience promotions or the installation, lease, rental or sale of equipment, provided that such revenues are derived from cable programming or other communications services transmitted over or used in connection with the cable system serving the city.

SUBSCRIBER. Any person authorized to receive or transmit for any purpose cable Services offered by grantee.

(Ord. 4315, passed 11-12-96)

PROCEDURES FOR GRANTING, RENEWING, TRANSFERRING, AND ACQUIRING CABLE TELEVISION FRANCHISES

(A) It shall be unlawful for any person to establish, operate or carry on the business of distributing to any persons in the city any signals, whether for video, audio, data or otherwise, by means of a cable system, unless a franchise therefor is first obtained pursuant to the provisions of this chapter, and unless such franchise is in full force and effect.

(B) It shall be unlawful for any person to construct, install or maintain within any public street in the city, or within any other public property of the city, or within any privately owned area within the city which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the city, any equipment or facilities for distributing any signals, whether for video, audio, data or otherwise, by means of a cable system, unless a franchise authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this chapter, and unless such franchise is in full force and effect.

(C) It shall be unlawful for any person to make any unauthorized connection, whether physically, electronically, acoustically, inductively or otherwise, with any part of a franchised cable system within this city for the purpose of enabling him or herself or others to receive any television signal, radio signal, picture, program, sound or other transmission carried on a cable system, without the permission of grantee.

(D) It shall be unlawful for any person, without the consent of grantee, to willfully tamper with, remove or injure any cables, wires or equipment used in conjunction with a cable system.

(E) This section shall be construed to require a franchise in every instance, except to the extent that such requirement is preempted by state and/or federal law.

(Ord. 4315, passed 11-12-96)

The city may grant a franchise to any person, whether operating pursuant to an existing franchise or not, who offers to provide a cable system pursuant to the terms and provisions of this chapter. The franchise shall be subject to all ordinances and regulations of general application now in effect or subsequently enacted, including, without limitation, those concerning encroachment permits, business licensee, zoning and building.

(Ord. 4315, passed 11-12-96)

(A) The term of the franchise or any franchise renewal shall be established in the franchise agreement.

(B) A franchise may be renewed by the city upon application of grantee pursuant to procedures established by the city, subject to applicable federal and state law. In the event the city does not establish such renewal procedures, the franchise renewal procedures set forth in the Cable Act shall apply.

(Ord. 4315, passed 11-12-96)

(A) Any franchise granted under this chapter shall be nonexclusive and for a limited duration.

(B) No privilege or exemption shall be granted or conferred by any franchise granted under this chapter except those specifically presented herein.

(C) The grant of a franchise, right or license to use public right-of-way for purposes of providing cable service shall not be construed as a right or license to use such public right-of-way for any other purpose.

(D) Any privilege claimed by grantee in a public right-of-way or any other public property shall be subordinate to any prior or subsequent lawful occupancy or use thereof, or easement therein, by the city or other government entity.

(E) A franchise granted hereunder shall not relieve grantee of any obligation related to obtaining pole space from any department of the city, utility company, or from others maintaining poles in the public right-of-way.

(F) Any right or power in, or duty imposed upon any officer, employee, department, or board of the city shall be subject to transfer by the city to any other officer, employee, department, or board of the city.

(Ord. 4315, passed 11-12-96)

(A) Subject to those restrictions, if any, that are mandated by law, neither the granting of any franchise hereunder nor any of the provisions contained herein shall be construed to prevent the city from granting additional franchises.

(B) There is hereby reserved to the city every right and power which is required to be herein reserved or provided by any ordinance adopted by the city pursuant to the exercise of its police and taxing powers. Grantee, by its acceptance of any franchise, agrees to be bound by all ordinances and regulations of general application now in effect or subsequently enacted (including without limitation those that concern encroachment permits, business licenses, zoning and building) and to comply with any action or requirements of the city in its exercise of such rights or power; provided, however, that such ordinances and regulations shall not materially affect grantee's rights or obligations under the franchise.

(C) Neither the granting of any franchise hereunder, nor any of the provisions contained herein, shall constitute a waiver or bar to the exercise of any governmental right or power of the city, now existing or hereafter granted.

(D) Nothing herein shall be deemed or construed to impair or affect, in any way, or to any extent, the right of the city to acquire the property of grantee through the exercise of the right of eminent domain, at a fair and just value in accordance with applicable law. Nothing herein contained shall be construed to contract away or to modify or abridge, either for a term or in perpetuity, the city's right of eminent domain.

(E) The City Council may do all things which are necessary in the exercise of its jurisdiction under this chapter and may determine any question of fact which may arise during the existence of any franchise granted hereunder. The City Manager is authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of any grantee under this chapter, in the best interest of the public.

(F) Grantee or any member of the public may appeal a decision of the City Manager to the City Council for hearing and determination within 30 days of receipt of notice of such decision. If no such appeal is made, the City Manager's such decision shall be deemed final. The City Council may accept, reject or modify the decision of the City Manager and may settle or compromise any controversy or cancel any charge arising from the operations of grantee or from any provision of this chapter. Grantee shall have 60 days subsequent to the date of any such action by the City Council (including without limitation a determination of any question of fact) to file an appeal therefrom with an appropriate state or federal court or agency. All actions by the City Council under this division shall be after hearing upon ten days advance written notice to grantee at its address on file with the city. Such actions may be by resolution or minute motion, except that revocation of a franchise shall be by ordinance.

(Ord. 4315, passed 11-12-96)

(A) No franchise shall be transferred, sold, hypothecated, or assigned, nor shall any of the rights or privileges therein be transferred, sold, hypothecated or assigned, either in whole or in part, directly or indirectly, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person, except grantee, without the prior consent of the city expressed by resolution of the City Council.

(B) Transfer of a franchise includes but is not limited to any transaction in which control of the franchise is transferred from one person or group of persons to another person or group of persons, or ownership or other interest in grantee or its cable system is transferred from one person or group of persons to another person or group of persons, or the rights and/or obligations held by grantee under the franchise agreement are transferred or assigned to another person or group of persons. In addition, a transfer of the franchise shall be deemed to have occurred upon the transfer on a cumulative basis of ownership or control of 20% of (1) the voting interest of grantee, or (2) the person exercising management authority over grantee.

(C) Grantee shall promptly notify the city in writing of a proposed transfer and shall file with the City Manager an application requesting approval of the proposed transfer ("Transfer Application). The transfer application shall meet the requirements of § 4.04.316 (with the transferee being the applicant), and shall provide complete information on the proposed transaction, including a copy of the bona fide offer, and details on the legal, financial technical and other qualifications of the transferee.

(D) In making a determination on whether to approve the transfer application, the City Council shall consider the legal, financial, technical and other qualifications of the transferee to operate the system, whether the incumbent cable operator is in compliance with its franchise agreement and this chapter and, if not, the candidate transferee's commitment and plan to cure such noncompliance, whether operation by the transferee would adversely affect cable services to subscribers or otherwise be contrary to the public interest, and such other criteria provided for by applicable state and federal law.

(E) A transfer application shall not be granted unless the candidate transferee agrees in writing that it will abide by and accept all terms of this chapter, the franchise agreement, and such other agreements, regulation or restrictions that pertain to the franchise, assume the obligations and liabilities of the previous grantee under the franchise, and assume such other conditions as may be prescribed by the City Council resolution.

(F) Approval by the city of a transfer application does not constitute a waiver or release of any of the rights of the city under this chapter or a franchise agreement, whether arising before or after the date of the transfer.

(Ord. 4315, passed 11-12-96)

(A) The franchise area shall be established by the franchise agreement.

(B) Territory annexed to the city ("annexed territory") which is not within the franchise area of an existing franchise may be added to grantee's franchise pursuant to City Council resolution adopted after conducting a noticed public hearing.

(C) All rights acquired under a franchise or license that is granted by a public entity other than the city ("foreign franchise") shall terminate by operation of law as to annexed territory where grantee of such franchise or license has not commenced installation of a cable system in the annexed territory before the date such annexation becomes effective.

(D) Where grantee of a foreign franchise has commenced installation of a cable system in annexed territory on or before the date such annexation becomes effective, then said grantee may continue to provide cable services to the annexed territory for the balance of the initial term of said franchise (exclusive of any renewal or extension not granted by the city), subject to the terms and conditions then in effect under said franchise, subject to timely payment to the city of all franchise fees paid in connection with such service (or such other fees imposed by the city up to the maximum permitted by law), and subject to compliance with such other terms and conditions that may be imposed by the city respecting such franchise.

(Ord. 4315, passed 11-12-96)

(A) Applications for the grant of a new franchise may be submitted by any person pursuant to the requirements of this chapter. The city may, by advertisement or any other means, solicit applications for a new franchise pursuant to a request for proposal (RFP). The terms and conditions for application made in response to an RFP, including the date by which an application must be received, shall be described therein.

(B) All applications or proposals shall become the sole property of the city. Each application for a new franchise to construct, operate or maintain any cable system in the city shall be filed with the office of the City Clerk and shall be on forms prescribed by the city. The city reserves the right to waive all application formalities where the city determines that the best interests of the city would be served by such waiver. The city may, at its sole discretion, request new or additional proposals.

(C) Unless waived in writing by the city, all applications for a franchise shall minimally contain the following:

(1) The name, address, and telephone number of the applicant;

(2) A detailed statement of the corporation or business entity organization of the applicant, including but not limited to, the following:

(a) The names, residence and business addresses of all officers, directors, and associates of the applicant;

(b) The names, residence and business address of all officers, persons and entities having any share of the ownership of the applicant and the respective ownership share of each person or entity;

(c) The names and address of any parent or subsidiary of the subsidiary of the applicant, namely, any other business entity owning or controlling applicant in whole or in part or owned or controlled in whole or in part by the applicant, and a statement describing the nature of any such parent or subsidiary business entity, including but not limited to cable systems owned or controlled by the applicant, its parent and subsidiary and the areas served thereby;

(d) A detailed description of all previous experience of the applicant in providing cable service or other similar or related communications services;

(e) A detailed and complete financial statement of the applicants certified by an independent certified public accountant, for the fiscal year next preceding the date of the application hereunder, or a letter or other acceptable evidence in writing from a recognized lending institution or funding source, addressed to both the applicant and the City Council, setting forth the basis for a study performed by such lending institution or funding source, and a clear statement of its intent, in writing, as a recognized lending institution or funding source, to provide whatever capital shall be required by the applicant to construct and operate the proposed cable system in the city, or a statement from an independent certified public accountant, certifying that the applicant has available sufficient free, net and uncommitted cash resources to construct and operate the proposed cable system in the city;

(f) A detailed financial plan (pro forma) describing for each year of the franchise, the projected number of subscribers, rates, all revenues, operating expenses, capital expenditures, depreciation schedules, income statements and a sources and uses of funds statement. All information is to be presented in the format required by the city; and

(g) A statement identifying by place and date, any other cable system franchise(s) awarded to the applicant, its parent or subsidiary; the status of said franchise(s) with respect to completion thereof; the total cost of completion of such franchised cable system(s); and the amount of applicant's and its parent's or subsidiary's resources committed to the completion thereof;

(3) A detailed description of the proposed plan of operation of the applicant which shall include, but not be limited to, the following:

(a) A detailed map indicating all areas proposed to be served, and a proposed time schedule for the installation of all equipment necessary to become operational throughout the entire area to be serviced;

(b) A statement or schedule setting forth all proposed classifications of rates and charges to be made against subscribers and all rates and charges as to each of said classifications, including installation charges and cable service charges;

(c) A detailed, informative, and referenced statement describing the actual equipment and operational standards proposed by the applicant;

(d) A copy of the form of any agreement, undertaking, or other instrument proposed to be entered into between the applicant and any subscriber; and

(e) A detailed statement setting forth in its entirety any and all agreements and undertakings whether formal or informal, written, oral, or implied, existing or proposed to exist between the applicant and any person, firm or corporation which materially relate to, pertain to, or depend upon the application and the granting of the franchise;

(4) A copy of any agreement covering the franchise area, if existing between the applicant and the local telephone and/or electric utilities providing for the use of any facilities of the utility including but not limited to poles, lines or conduits; and

(5) Any other details, statements, information or references pertinent to the subject matter of such application which shall be required or requested by the City Council in any applicable request for proposal, or by any applicable provision of law.

(Ord. 4315, passed 11-12-96)

(A) Upon receipt of an application for a franchise, the City Manager shall cause to be prepared a report, including recommendations respecting such application, which shall be filed with the City Council, each applicant, and existing grantees.

(B) The city may make such investigations as it deems necessary to determine the ability of an applicant to perform under a franchise. The applicant shall timely furnish to the city all such information and data for as the city may request. Failure to provide any such information shall be reason for rejection of any application.

(C) If, upon receiving the City Manager's report, the City Council decides to further consider any application, it shall pass a resolution setting a public hearing for such consideration fixing and setting forth a day, hour, and place certain when and where any persons having any interest therein or who wish to file objections may file written comments and appear before the City Council and be heard, and directing the City Clerk to publish said resolution at least once within ten days of the passage thereof in a newspaper of general circulation within the city.

(D) In making any determination as to an application for a new franchise, the city may consider any and all factors which effect the interests of the community including, but not limited to, the quality of the cable service proposed, the areas to be served, the rates to be charged, the amount of franchise fee to be generated, the experience, character, background, performance history and financial responsibility of an applicant (and its management and owners), the technical performance and quality of equipment, the applicant's willingness and ability to meet construction and physical requirements (and all other limitations and requirements pertaining to the franchise), and all other matters deemed pertinent by the city for safeguarding the interests of the city and the public.

(E) At the time set for the hearing, or at any adjournment thereof, the City Council shall proceed to hear all comments. Thereafter, the City Council shall make one of the following determinations:

(1) That such application be denied; or

(2) That a franchise be granted on specified terms and conditions.

(F) Any decision of the City Council concerning award of a franchise pursuant to this chapter shall be final.

(Ord. 4315, passed 11-12-96)

(A) The city may at its sole discretion limit the number of franchises granted at any one time based upon its consideration of all appropriate criteria which shall including but not be limited to the following:

(1) The capacity of the public rights-of-way to accommodate the facilities of any proposed additional cable systems.

(2) The advantages and disadvantages that may result from additional cable system competition.

(B) The city may require that any grantee be responsible for its own underground trenching and any associated costs if, in the city's opinion, the public rights-of-way in any area do not feasibly and reasonably accommodate the additional cables, machinery, equipment, or other items contemplated in connection with the construction, maintenance and operation of a proposed new cable system. In addition, grantee shall comply with applicable federal and state laws regarding pole attachments.

(Ord. 4315, passed 11-12-96)

(A) In connection with any application for a new franchise, a franchise renewal or a franchise transfer, each applicant shall furnish with its proposal a filing fee in the amount of $10,000, by certified or cashier's check made payable to the city. No application shall be considered without receipt of said check. All such funds received by the city will be deposited into an account of the city and will serve to pay expenses incurred by the city in connection with the processing and analysis of the application.

(B) With respect to an application for a franchise renewal, the city may, at its sole discretion, agree in writing with grantee to establish a fixed filing fee in an amount estimated to cover the costs identified in division (A) immediately above. Such fee, if applicable, may be stated in the franchise agreement or in anther written agreement and shall be in lieu of all other application costs identified in this section. In addition, grantee shall comply with applicable federal and state laws regarding pole attachments.

(C) Such application processing costs are exclusive of Grantee's obligation to pay other costs and fees required by this chapter, the franchise agreement or the franchise, including without limitation construction inspection fees, permit fees, and franchise fees.

(Ord. 4315, passed 11-12-96)

(A) As compensation for any franchise granted, and in consideration of permission to use the public right-of-way in the operation of its cable system, and because the city will incur costs (other than application fees) in regulating and administering the franchise, grantee shall pay to the city a franchise fee

in the amount equal to five percent of grantee's gross revenue, or such other amount as the City Council may set by resolution.

(B) The franchise fee assessed shall be paid quarterly, to be received by the City Treasurer not later than 45 days after the close of each quarter of grantee's fiscal year.

(C) on a quarterly basis, grantee shall provide the city a complete and accurate statement verified by a financial officer of grantee indicating gross revenues for said month, listing every revenue source, and depicting gross revenue computations.

(D) On an annual basis, grantee shall, if requested by the city in accordance with § 4.04.1102, file a complete and accurate statement certified by grantee's chief financial officer, indicating all gross revenues for said year, listing every revenue source, and depicting gross revenue computations. If the city has any concerns or issues relating to contents of said report, the city shall have 60 days to notify grantee and request additional information. Grantee shall have 60 days to provide additional input and data to resolve any concerns or issues to the city's satisfaction. Thereafter, the city may, at its sole discretion, request that said statement be certified by an independent certified public accountant, at grantee's sole cost; provided, however, that any such request shall be made within 60 days after grantee's response is received.

(E) At any time during the term of a franchise, the city shall have the right to conduct an independent audit of any and all records of grantee that are related to gross revenue reports or computations. Grantee shall cooperate with any such audit making readily available any and all information requested by the city relating to the audit. In the event that any such audit indicates a franchise fee underpayment of five percent or more, grantee shall pay all costs of said audit. Grantee shall maintain in a readily accessible place all such records for a minimum of four years after any payment period that such record pertains to.

(F) In the event that any franchise fee payment is not made on or before the applicable dates heretofore specified, interest shall be charged monthly at a monthly rate of one and one-half percent. In addition, if any franchise fee is not paid in full within 15 days after receipt of notice from the city as to the delinquency of such payment, a late fee in amount of five percent of the delinquent amount shall be assessed.

(G) In the event grantee claims to have overpaid by more than five percent the amount of franchise fee actually due during any given quarter, it shall file an application with the city within one year after said payment was made. The failure to timely and properly make such claim as required herein shall constitute a waiver by grantee of any right to such claimed overpayment, whether by refund, offset, credit or any other accommodation. All such applications shall state the amount of claimed overpayment, the reason for the claimed overpayment, and sufficient documentation to allow the city to verify grantee's claim. Upon request by the city, grantee shall provide any further information that is deemed by the city to be relevant to said claim. All such applications shall be considered by the City Council, and the City Council's decision with respect to such applications shall be final.

(Ord. 4315, passed 11-12-96)

(A) In addition to all other rights and powers retained by the city under this chapter or otherwise, the city reserves the right to terminate any franchise and all rights and privileges of grantee, or asses damages or penalties against grantee, in the event of any material breach of its terms and conditions. A material breach by grantee shall include, but not be limited to the following:

(1) Violation of any material provision of this chapter, the franchise agreement or any material rule, order, regulation or directive issued in connection with the franchise;

(2) Evasion of any material provision of this chapter or the franchise agreement, or the practice of fraud or deceit upon the city, its subscribers or customers;

(3) Material misrepresentation of fact in an application for a new franchise, renewal or transfer of a franchise, whether by act or omission;

(4) Failure to pay any franchise fee when said payment is due;

(5) Failure to restore cable service after 96 consecutive hours of interrupted cable service, except in the event that the city approves in writing a longer period of interruption after making a determination that there exists just cause for such longer period of interruption;

(6) Failure to provide at least 80% of standard cable service over all or a substantial portion of the cable system for a period of five days;

(7) Failure to substantially meet customer service standards established in the franchise over a three month period of time;

(8) Failure to initiate or complete scheduled system construction or reconstruction within the time set forth in the franchise, unless the City Council expressly approves the delay by motion or resolution, due to the occurrence of conditions beyond grantee's control;

(9) Failure to provide or maintain in full force and effect any of the liability and indemnification coverage, letter of credit or bonds required by the franchise;

(10) Violation of orders or rulings of any regulatory body having jurisdiction over grantee relative to the franchise;

(11) Failure to provide, upon written request, data, documents, reports or information; and

(12) Failure to pay debts and obligations as they mature in accordance with normal business practices; assignment of grantee or its assets for the benefit of its creditors; dissolution, liquidation or ceasing to conduct business; application by grantee for (or consent to) the appointment of a receiver, trustee, liquidator; or the sale of all or substantially all of grantee's assets.

(Ord. 4315, passed 11-12-96)

(A) Prior to imposing any sanction or penalty upon grantee, including termination of the franchise, the City Council, the City Manager, or their designee, shall demand in writing that grantee cure said breach within a specified period, which period shall not be less than 30 days following notification. Only 15 days notice shall be required in the case of failure to pay monies due. In addition, the city may, in an emergency, prescribe a notice less than 30 days consistent with the nature of the emergency.

(B) Should grantee fail to provide sufficient written proof within the specified cure period that corrective action has been taken, or that corrective action is being actively and expeditiously pursued by grantee, then the city may, in its sole discretion, elect to either place the issue of termination or other penalty before the City Council or refer said issue to an appropriate hearing officer for his/her determination.

(Ord. 4315, passed 11-12-96)

(A) The City Council may hold a public meeting to determine whether grantee materially breached the franchise and the appropriate penalty to be imposed, if any, as a result of such breach. The city shall cause to be served upon grantee, at least ten days prior to the date of such meeting, written notice of any intent to terminate the franchise and the time and place of the meeting. Grantee may appear at such meeting and present such evidence, orally or in documented form, that it deems relevant and appropriate to the Council's deliberations. Based on the evidence presented at the meeting, the City Council shall determine in its discretion whether or not a material breach occurred and whether to terminate the franchise or take other appropriate action.

(B) Should the City Council find that there has bean a material breach of the franchise, but that termination of the franchise is inappropriate, then the Council may asses and levy monetary penalties against grantee. This penalty provision is separate and apart from the city's right to enforce the provisions of the construction and performance bonds and liquidated damages.

(C) The city shall cause grantee to be served with written notice of any action taken by the City Council following such public hearing. The decision of the City Council as to such matters shall be final.

(D) Nothing herein is intended to limit the City Council's right to make other determinations which are reasonably related to the franchise, or to seek any other appropriate relief to which the city may be entitled, at law or equity, as a result of any breach by grantee of its obligations under the franchise.

(Ord. 4315, passed 11-12-96)

(A) The City Manager may, at his or her sole discretion, refer to a hearing officer any controversy or claim arising out of or relating to the franchise or its existence, construction, interpretation, performance, enforcement, operation, breach, continuance or termination. Such hearing proceedings shall be initiated by the City Manager by written notice to grantee.

(B) The hearing officer shall be a retired California Superior Court Judge, retired Appellate Court Judge, retired Federal Court Judge, or other qualified and experienced officer, and shall be selected by the City Manager at his or her sole discretion.

(C) The hearing officer shall commence a hearing within 90 days of his or her selection unless the parties and the hearing officer otherwise agree in writing.

(D) Any party to the hearing may issue to the other party a request for production of documents, and/or a total of not more than 25 written interrogatories, and shall be provided with an appropriate response thereto, in the manner and form prescribed by California Code of Civil Procedure Sections 2030 and 2031. Any dispute that is not resolved after a good faith attempt to "meet and confer" shall be submitted to the hearing officer for resolution, and the hearing officer's determinations as to such matter (which may include imposition of appropriate sanctions) shall be final. Neither party shall be required to make any other form of discovery available to the other party.

(E) The hearing officer shall be vested with quasi-judicial authority, and shall be empowered to (i) order grantee to undertake remedial action to cure any breach of its obligations under its franchise, (ii) assess liquidated damages and/or levy a penalty upon grantee in accordance with the terms of this chapter and the franchise agreement, (iii) determine that grantee has not violated any of its obligations under its franchise and/or (iv) terminate the franchise. The hearing officer shall enter conclusions of law and findings of fact which must be supported by a preponderance of the evidence.

(F) Except as may be apportioned by the hearing officer in his or her discretion, each party shall bear one-half of the fees and expenses of the hearing officer, together with any other expenses of the hearing proceedings incurred or approved by the hearing officer. Each party shall bear its own witness and attorneys' fees or other expenses.

(G) Failure of grantee to fully and promptly comply with an order of a hearing officer shall be deemed a material breach of the franchise.

(H) The decision of the hearing officer shall be final and subject to judicial review pursuant to California Code of Civil Procedure Section 1094.5.

(Ord. 4315, passed 11-12-96)

In the event grantee's performance of any of the terms, conditions or obligations of the franchise is prevented by any cause beyond grantee's reasonable control, such inability to perform shall be deemed to be excused and no penalties or sanctions shall be imposed as a result thereof, provided grantee has notified the city in writing within 30 days of its discovery of the occurrence of such an event. In such an instance, grantee shall continue to use its best efforts to perform its obligations, cure any breach and offer appropriate substitute performance where applicable. For the purpose of this section, causes or events not within the control of grantee shall include, but not be limited to acts of God, strikes, sabotage, riots or civil disturbances, epidemic, labor disputes, shortage of labor, freight embargoes, shortages or unavailability of materials and supplies, explosion, natural disasters such as floods, earthquakes, landslides and fires, rationing, and power or communications failures, but shall not include financial inability of grantee to perform or failure of grantee to obtain any necessary permits or licenses from other governmental agencies or the right to use the facilities of any public utility where such failure is due solely to the acts or omissions of grantee.

(Ord. 4315, passed 11-12-96)

The City Council or hearing officer may impose the following penalties for any breach of the franchise, including any breach of subscriber service standards:

(A) Up to $500 for each day of each material breach, or such other amount provided in the franchise agreement.

(B) For a second material breach of the same nature occurring within 12 months where a fine or penalty was previously assessed, up to twice the maximum penalty allowed for the first such breach.

(C) For a third or further material breach of the same nature occurring within 12 months of the first such breach, where a fine or penalty was previously assessed, up to four times the maximum penalty allowed for the first such breach.

(Ord. 4315, passed 11-12-96)

(A) By acceptance of the franchise granted by the city, grantee understands and agrees that failure to timely comply with any performance requirements as stipulated in this chapter and the franchise agreement deemed material by the city will result in damage to the city, and that it is and will be impractical to determine the actual amount of such damage in the event of delay or nonperformance; the franchise agreement shall include provisions for liquidated damages to be paid by grantee, in amounts set forth in the franchise agreement and chargeable to any security, including without limitation a construction bond, performance bond or letter of credit, for any breach of the franchise, including but not limited to any of the grounds for material breach referred to in § 4.04.324 of this chapter.

(B) If the City Manager, following prior reasonable notice to grantee to cure any problem that might result in liquidated damages, concludes that grantee is in fact liable for liquidated damages, he or she shall cause to be issued to grantee by certified mail a Notice of Intent to Assess Liquidated Damages. The notice shall set forth the basis of the assessment, and shall inform grantee that liquidated damages will be assessed from the date of the notice unless the assessment notice is appealed for hearing before the City Council, and the City Council rules that (l) there was no violation, (2) the violation has been corrected, or (3) an extension of time or other relief should be granted in lieu of liquidated damages.

(C) If grantee desires a hearing before the City Council, then grantee shall send a written Notice of Appeal by certified mail to the City Manager within ten days of the date on which the city sent the Notice of Intention to Assess Liquidated Damages. The hearing on grantee's appeal shall be within 30 days of the date on which the city mailed the Notice of Intention to Assess Liquidated Damages. After the hearing, if the City Council sustains in whole or in part the City Manager's Assessment of Liquidated Damages, the City Manager may at any time thereafter draw upon any of the security funds provided for by this chapter and/or the franchise agreement. Unless the City Council indicates to the contrary, said liquidated damages shall be assessed beginning with the date on which the city sent the Notice of the Intention to Assess Liquidated Damages and continuing thereafter until such time as the violation ceases, as determined by the City Manager. Grantee may appeal any determination of the City Council to an appropriate forum.

(Ord. 4315, passed 11-12-96)

The remedies provided in this chapter are cumulative and in addition to all other rights the city may have at law or equity or under the franchise, which remedies may be exercised at any time. In no event shall the amount of any bond or letter of credit be construed to limit grantee's liability for damages.

(Ord. 4315, passed 11-12-96)

(A) Subject to applicable law, in the event that a franchise is terminated, revoked, or is not renewed upon expiration, then grantee shall, upon demand of the city, and at its sole expense, promptly remove all or any portion of its cable system. In removing its cable system, grantee shall refill, at its own expense, any excavation it made and leave all streets in as good condition as that prevailing prior to grantee's removal of its cable system without materially affecting the electrical or telephone cable, wires, or attachments. The liability, indemnity, insurance, security fund and bonds required under the franchise shall continue in full force and effect until such removal is accepted as complete by the city.

(B) Subject to applicable law, in the event that a franchise is not renewed and the city acquires ownership of a cable system or effects a transfer of ownership of a cable system to another person, any such acquisition or transfer shall be at fair market value, determined on the basis of the cable system valued as a going concern, but with no value allocated to the franchise itself. If a franchise is revoked for cause and the city acquires ownership of the cable system or effects a transfer of ownership of the cable system to another person, any such acquisition or transfer shall be at an equitable price. The value of a cable system (fair market value or equitable price) shall be determined by an appraisal committee consisting of three disinterested appraisers. The city and grantee shall each select at their individual discretion one appraiser, and the two selected appraisers shall agree upon and appoint a third appraiser.

(Ord. 4315, passed 11-12-96)

(A) Subject to applicable provisions of the United States Bankruptcy Code, any franchise shall, at the option of the city, cease and terminate 120 days after the appointment of a receiver or trustee to take over and conduct the business of grantee whether in a receivership, reorganization, bankruptcy or other action or proceeding unless such receivership or trusteeship shall have been vacated prior to the expiration of said 120 days, or unless:

(1) Such receiver or trustee shall have, within 120 days after his/her election or appointment, fully complied with all terms of the franchise and remedied all breaches of the franchise or provided a plan for the remedy of such breaches which is approved in writing by the city; and,

(2) Such receiver or trustee shall, within said 120 days, execute an agreement duly approved by the Court having jurisdiction, whereby such receiver or trustee assumes and agrees to be bound by each and every term, provision and limitation of the franchise.

(B) Upon the foreclosure or other judicial sale of all or a substantial part of a cable system, grantee shall notify the City Clerk of such fact, and such notification shall be treated as a notification that a change in ownership of grantee has taken place and the provisions of this chapter governing such changes shall apply.

(Ord. 4315, passed 11-12-96)

GENERAL FINANCIAL AND INSURANCE PROVISIONS

Grantee may be required to obtain and maintain throughout the period of any construction (or reconstruction), at its sole cost and expense, a corporate surety bond from a company authorized to do business in the State of California. Such bond will guarantee the timely construction (or reconstruction) and full activation of the cable system, and the safeguarding of damage to private property and restorage of damages incurred by utilities. The bond shall be filed with the City Clerk at least 30 days prior to the commencement of any construction, and shall be in the form specified and approved by the City Attorney. Bond requirements, including amount, shall be specified in the franchise agreement.

(Ord. 4315, passed 11-12-96)

Grantee may be required to obtain and maintain throughout the term of the franchise, at its sole cost, a corporate surety bond from a company authorized to do business in the State of California. The bond will guarantee performance by grantee of all the provisions and obligations of the franchise (other than construction). The bond shall be filed with the City Clerk within 45 days after the award, renewal or transfer of a franchise and shall be in the form specified and approved by the City Attorney. Bond requirements, including amount, shall be specified in the franchise agreement.

(Ord. 4315, passed 11-12-96)

(A) Grantee shall establish and maintain throughout the term of the franchise a letter of credit in favor of the city. The letter of credit shall serve as security for the faithful performance by grantee of all the provisions and obligations of the franchise. The letter of credit shall be established within 45 days after the award, renewal or transfer of a franchise and shall be in the form specified and approved by the City Attorney. Specific requirements pertaining to the letter of credit, including amount, shall be specified in the franchise agreement.

(B) Grantee shall restore the letter of credit to the original amount within 30 days after notice from the city that an amount has been withdrawn.

(Ord. 4315, passed 11-12-96)

(A) Grantee shall fully indemnify, defend and hold harmless the city, is officers, boards, commissions, elected officials, agents, attorneys, representatives, servants and employees against any and all costs, damages, expenses, claims, suits, actions, liabilities, and judgments for damages, including but not limited to, expenses for legal fees, whether suit be brought or not, and disbursements and liabilities incurred or assumed by the city in connection with:

(1) Damage to persons or property, in any way arising out of or through the acts or omissions of grantee, its servants, officials, agents, attorneys, representatives or employees or to which grantee's negligence or that of their servants, agents, officials, attorneys, representatives or employees shall in any way contribute;

(2) Requests for relief arising out of any grantee action or inaction which results in a claim of invasion of the right of privacy; for defamation of any person, firm or corporation; for the violation or infringement of any copyright, trademark, trade name, service mark or patent; unfair competition or of any other right of any person, firm, or corporation;

(3) Any and all claims arising out of grantee's failure to comply with the provisions of this chapter or a franchise or any federal, state or local law, ordinance or regulation applicable to grantee, the cable system or cable services.

Grantee wild not be required to indemnify the city from claims, demands, actions, suits, liabilities and judgments arising out of the sole acts or omissions of the city.

(B) Grantee shall at its sole cost defend the city against any suit brought or threatened against the city in connection with the above matters. Grantee shall pay all such defense costs that accrue or are incurred after the city provides notice to grantee of such suit. Such costs include, but are not limited to, attorneys fees and the reasonable value of services rendered by the city of any of its employees, officials, attorneys, servants, agents or representatives.

(C) The city shall indemnify, and hold harmless grantee, its affiliates and their respective officers, directors, employees and shareholders from and against any and all damages, penalties, judgments and liability of any kind, and defend all claims, actions or causes of action arising as a result of the city's use of PEG channels. This indemnity shall not apply with respect to any programming provided by grantee and carried on such access channels.

(Ord. 4315, passed 11-12-96)

(A) Within 45 days after the effective date of the franchise agreement, grantee shall file with the City Clerk, and shall thereafter during the entire term of such franchise, maintain in full force and effect, at its own expense, a general comprehensive liability insurance policy or policies which shall insure grantee and provide primary coverage for the city, its officers, boards, commissions, agents and employees, against liability for loss or liability for personal injury, death, property damage (both automobile and nonautomobile cause), premises operations, explosion and collapse hazard, underground hazards, or other damages. Such policy or policies shall include insurance against damages from, and any failure by grantee to secure consents, occasioned by any activity or operation of grantee under such franchise, and regardless of any claimed or actual activities of the city, its officers, boards, commissions, agents and employees. Grantee shall also provide a standard broadcaster's liability policy. Each such policy shall contain the standard cross-liability endorsement, shall be issued by a company approved by the city Risk Manager and shall be in a form approved by the City Attorney, with minimum combined single limits of liability coverage or the equivalent thereof in the amount of not less than $5,000,000, or such other amount if expressly stated in the franchise agreement.

(B) The policy or policies shall name the city, its officers, boards, commissions, agents and employees as additional insured (except broadcaster's liability coverage) at no cost to the city, and shall contain a provision that a written notice of any cancellation, modification or reduction in coverage of said policy shall be delivered to the City Clerk 30 days in advance of the effective date thereof. Grantee shall also provide worker's compensation coverage consistent with California statutory requirements.

(Ord. 4315, passed 11-12-96)

DESIGN AND CONSTRUCTION

The cable system shall be constructed in accordance with the design requirements and construction schedules contained in the franchise agreement.

(Ord. 4315, passed 11-12-96)

Subject to such other conditions provided herein and in the franchise agreement, grantee shall design and construct a cable system that provides at least one drop to even residential dwelling unit within the franchise area. Cable television system construction and provision of service shall be non-discriminatory, and grantee shall not deny service to any section of the franchise area on the grounds of economic preference.

(Ord. 4315, passed 11-12-96)

(A) Every cable system shall provide, at a minimum:

(1) The operational capability of relaying to subscriber terminals the number of channels of video programming set out in its franchise agreement;

(2) Reception and transmission of broad categories of video programming, subject to economic and commercial feasibility, including local broadcast stations, children's programming, foreign language and multi-cultural programming news and sports channels, premium service programming, and local origination and educational and governmental access channels;

(3) Such PEG facilities, equipment and services as specified in the franchise agreement.

(B) Grantee shall annually poll subscribers to determine subscriber viewing preferences for services and/or programs not currently offered by grantee. The results of said poll shall be provided to the city within 30 days of receipt by grantee.

(Ord. 4315, passed 11-12-96)

After cable service is established in a particular area by activating trunk and/or distribution cables for the area, grantee shall provide cable service to any requesting subscriber within such area within 30 days from the date of request, provided that grantee is able to secure all rights-of-way necessary to extend service to such subscriber within such 30-day period on reasonable terms and conditions, and subject to the line extension policies of this chapter and the franchise agreement.

(Ord. 4315, passed 11-12-96)

Grantee shall offer access leased channel(s) to unaffiliated third parties in accordance with the provisions of the Cable Act as amended.

(Ord. 4315, passed 11-12-96)

Grantee shall provide channel capacity for PEG access programming and for local origination programming, as specified in the franchise agreement. Grantee shall not exercise any editorial control over PEG Access channels provided pursuant to this chapter. The city may establish an access corporation to manage and operate the PEG access channels, including receiving funding for operation of the channels.

(Ord. 4315, passed 11-12-96)

Grantee shall provide at least 30 days advanced written notice to the city and subscribers prior to dropping, retiering or adding any channel to the cable system.

(Ord. 4315, passed 11-12-96)

(A) At no time shall grantee place cable underground without appropriate conduit.

(B) The cable system shall be placed underground in all portions of the franchise area where either telephone or electric lines are underground. Whenever the poles on which the cable system is constructed are eliminated, grantee shall concurrently replace its aerial facilities with underground facilities. At no time shall the cable system be the only aerial facility in any given area.

(C) Where the cable system is installed underground, line extenders, amplifiers, taps, power supplies, traps and related electronic equipment and components may be placed in appropriate housings above the surface of the ground to the extent that the method employed is compliant with any and all applicable city, state, federal or other regulations, and consistent with any other generally applicable guidelines, policies or procedures which may from time to time be defined by the city or other applicable government agency. Grantee shall provide a procedure for undergrounding taps and pedestals at subscriber expense and relocating the taps and pedestals within the technical constraints of the cable system.

(Ord. 4315, passed 11-12-96)

Grantee shall be authorized to utilize existing poles, conduit, and other facilities of a public utility, but shall not be authorized to construct or install any new, different, or additional poles in any city streets without prior written approval by the city.

(Ord. 4315, passed 11-12-96)

Grantee shall install and maintain its wires, cables, fixtures, and other equipment in accordance with applicable California Public Utility Commission pole attachment standards, electrical codes and industry standards of the cable television industry generally applicable to the type of cable system which grantee has constructed, owns or operates. Grantee shall adhere to all building and zoning codes currently in force or hereafter enacted. Grantee shall locate and maintain its line, cables, and other appurtenances, on public property, in such a manner as to cause no unreasonable interference with the use of said public property by any person.

(Ord. 4315, passed 11-12-96)

The City Engineer shall approve the location and method of construction of all underground facilities and equipment located on public right-of-way (including any above-grade portion of such facilities and equipment). The City Engineer shall also approve the location and installation of all new aerial facilities consistent with Public Utilities Commission, General Order 95. All construction shall be subject to city permit and inspection fees as may be required by other applicable laws or regulations heretofore or hereafter adopted, including, but not limited to, those pertaining to works and activities in, on, under or over the public rights-of-way.

(Ord. 4315, passed 11-12-96)

Grantee shall file with the city "as-built" drawings of the entire cable system. Additionally, within 30 days after completion of any material modification of the cable system (e.g., a system rebuild or trunk replacement), grantee shall file appropriately "as-built" drawings of the modified cable system.

(Ord. 4315, passed 11-12-96)

(A) Grantee shall remove or relocate at its sole cost any facilities installed, used or maintained in connection with the franchise if and when such removal or relocation is made necessary by any project. For purposes of this section, the word PROJECT means any lawful change of grade, alignment or width of any public street, way, alley or place, including but not limited to, the construction of any subway or viaduct, that the city may initiate, either by or through itself or any redevelopment agency, community facility district, assessment district, area of benefit, reimbursement agreement or generally applicable impact fee program. This section shall not apply to any assessment district for the undergrounding of aerial facilities on residential collector streets..

(B) In the event that such removal or relocation is required, grantee shall commence physical field work on the removal or relocation on or before 120 days after written notice of such requirement is provided by the City Manager. If, despite its reasonable efforts, grantee is unable to commence removal or relocation within such period, grantee shall provide the City Manager with written notice explaining in detail the reason(s) for the delay and a date certain upon which such removal or relocation is expected to commence. Grantee shall diligently proceed and promptly complete all such removal or relocation after it is commenced.

(Ord. 4315, passed 11-12-96)

Should grantee fail, refuse or neglect to properly perform any maintenance or construction work required by the franchise following due notice from the city and a reasonable opportunity to cure as provided for under this chapter, or should grantee fail to commence performance of such work within the period of time allowed therefore, or fail to diligently proceed and promptly complete such work thereafter, the City Manager may, upon five days prior written notice to grantee (except in cases of emergency), cause such work or other act to be completed in whole or in part by the city forces or others, and upon so doing shall submit to grantee an itemized statement of the costs thereof. Grantee shall, within 30 days after receipt of such statement, pay to the city the entire amount thereof, without off-set or deduction. In the event grantee fails to pay said costs for a period of at least 30 days after they are due, the city may assess the letter of credit provided for in this chapter, in accordance with the provisions of this chapter.

(Ord. 4315, passed 11-12-96)

Grantee shall comply at all times with FCC technical standards and such other standards that may from time to time be established by the city or any other authorized agency by any law. Any such standards established by the city shall be consistent with its authority to do so under the Cable Act, and made by resolution on the basis of the evidence presented at a noticed public hearing.

(Ord. 4315, passed 11-12-96)

(A) Upon request by the city not to exceed once per year, grantee shall perform at its sole cost and expense all tests necessary or reasonable to verify its compliance with all applicable technical standards. Such tests shall commence within 30 days after the city makes any such request and shall conclude within a reasonable time thereafter. Grantee shall provide the city a copy of its test results within 30 days after the tests are complete. The city shall have the right to witness any such testing if it so desires.

(B) If at any time the city receives a substantial number of compliance or other evidence which indicates that grantee may not be in compliance with applicable technical standards, the city may order grantee to perform additional tests to verify compliance with such standards. The cost of any such tests, and any necessary retests, shall be borne entirely by grantee.

(C) Grantee shall at all times permit reasonable access to the cable system to permit the city or its consultants to conduct their own tests. In the event that grantee is determined by such tests to be non-compliant with applicable technical standards, grantee shall pay the full cost of such tests. Otherwise, such costs shall be paid by the city.

(Ord. 4315, passed 11-12-96)

(A) Grantee shale interconnect the PEG channels of its cable system which serve the city with those of adjacent systems which are owned by grantee. The manner and time of such connection may be prescribed by the city unless expressly provided for in the cable agreement.

(B) Immediately upon request by the city, grantee shall contact all owners of adjacent cable systems regarding PEG channel interconnection with such systems and make a report to the City Manager within 60 days thereafter. Such report shall state the terms, conditions, timing, and cost of interconnecting the city's PEG Channels with those of each such adjacent cable system.

(Ord. 4315, passed 11-12-96)

SUBSCRIBER RIGHTS

Grantee shall comply with the FCC customer service guidelines contained at Section 76.309 of Title 47 of the Code of Federal Regulations, and such additional standards that may be imposed by ordinance, and each of the following requirements:

(A) The cable operator shall maintain a local, toll-free or collect call telephone access line (access line) which will be available to its subscribers 24-hours a day, seven-days a week;

(B) Knowledgeable, qualified customer service representatives shall be available to respond to customer telephone inquiries during normal business hours, which shall be a minimum of 49 hours weekly, from 8:00 a.m. to 5:00 p.m., Monday through Friday, and at least four additional hours one evening per week or on Saturdays (or such other times as are approved in writing by the City Manager);

(C) During non-business hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received during such hours must be responded to by a trained company representative during the next business day;

(D) A business and service office located within the city shall be open Monday through Friday from 8:00 a.m. to 5:00 p.m., and adequately staffed to accept subscriber payments and respond to service requests and complaints. Additionally, grantee will staff the business and service office at least four additional hours one evening per week or on Saturdays, other locations and hours are permissible as are appeared in writing by the City Manager;

(E) Telephone answer time by grantee's customer service representatives, including waiting time, shall not exceed 30 seconds after a connection is made, and a busy signal shall not be obtained more than three percent of the time. If the call needs to be transferred, transfer time shall not exceed 30 seconds. These standards shall be met no less than 90% of the time under normal operating conditions, measured on a quarterly basis. Grantee shall have equipment and perform surveys to measure compliance with these telephone answering standards. The results of the surveys shall be submitted to the city quarterly;

(F) Grantee shall provide and maintain an emergency system maintenance and repair staff, capable of responding to and repairing major system malfunctions on a 24 hour basis;

(G) Grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Scheduled interruptions insofar as possible, shall be preceded by notice and shall occur during periods of minimum use of the system, preferably between midnight and 6:00 a.m.;

(H) Under normal operating conditions, grantee shall respond to subscriber requests for service within the following time frames no less than 95% of the time measured on a quarterly basis:

(1) System outages: Within two hours, including weekends, of receiving subscriber calls which by number identify a system outage of sound or picture of one or more channels, affecting all or a considerable number of the subscribers of the cable system.

(2) Service interruptions: within 24 hours, excluding Sundays and holidays, after the interruption becomes known.

(3) Inferior reception quality: within 48 fours after receiving a request for service identifying a problem concerning picture or sound quality.

(I) Grantee shall be deemed to have responded to a request for service under the provisions of this section when a technician arrives at the service location, if necessary, or otherwise begins work on the problem. In the case of a subscriber not being home when the technician arrives, response shall be deemed to have taken place if the technician leaves written notification of arrival;

(J) Grantee shall schedule service and installation appointments within a specified four hour time period and shall make such appointments available on Saturdays upon request;

(K) Not less than 90% of the time measured, on an annual basis, standard installations will be performed within seven business days after an order has been placed. "Standard" installations are up to 150 feet from the existing distribution system;

(L) Grantee shall have equipment and perform surveys to measure compliance with the telephone answering standards set forth in division (A). The results of the surveys shall be submitted to the city quarterly. After one year of submitting telephone answering surveys to the city, grantee may request that it be relieved of the requirement of submitting such surveys. The City Manager, or his or her designee, may relieve grantee of the survey requirement if he/she finds, based on the surveys and the level of customer complaints, that grantee is in full compliance with telephone answering standards.

(Ord. 4315, passed 11-12-96)

(A) Grantee shall not tap, monitor or permit any other person to tap or monitor any cable, line, signal input device or subscriber outlet or receive for any purpose whatsoever without the express written consent of the subscriber or a court order therefor; provided, however, that grantee shall be entitled to conduct system-wide or individually addressed "sweeps" for the purpose of verifying system integrity, controlling return path transmission, or checking for unauthorized connections to cable system or service levels or billing or pay services.

(B) Except for its own internal use, grantee shall not permit its cable system to be used for data collection purposes, nor shall it otherwise collect data which would reveal the commercial product or other preferences or options of any individual subscriber or its family members, guests, licensees or employees. Grantee shall not reveal or permit the release or sale of individual subscriber data; but may reveal or permit the release or sale of aggregate data.

(C) Grantee shall not reveal individual subscriber preferences, viewing habits, beliefs, philosophy, creeds or religious beliefs to any third person, firm, agency, governmental unit or investigating agency without court order or prior written consent of such subscriber. Grantee shall not condition the delivery of cable services to any subscriber upon receipt of such consent.

(D) Such consent, if given, shall be limited to a period of time not to exceed one year.

(E) Any subscriber may at any time, with or without cause, immediately revoke without penalty or cost any consent that such subscriber may have previously provided grantee by delivering to grantee in writing a substantial indication of his or her intent to so revoke.

(F) Grantee shall not reveal, sell, or permit the release or sale of subscriber information without prior written consent of the city. If such consent is given, the city may place reasonable conditions thereon; provided that grantee may use its subscriber list as necessary for the construction, marketing, and maintenance of such cable television services and facilities as may be authorized by the franchise, and the concomitant billing of subscribers for said services.

(G) Grantee shall at all times comply with the "protection of subscriber privacy" provisions of the Cable Act, and all other state and federal regulations concerning subscriber privacy.

(Ord. 4315, passed 11-12-96)

Grantee shall provide its employees, contractors and subcontractors with identification for all individuals who may make personal contact with residents of the city. Grantee shall provide a list of current employees, contractors and subcontractors to the city upon request.

(Ord. 4315, passed 11-12-96)

Grantee shall provide written information on each of the following areas at the time of installation of service, and at least annually, to all subscribers and at any time upon request by any resident of the city:

(A) Products and services offered;

(B) Prices and options for programming services and conditions of subscription to programming and other services;

(C) Installation and service maintenance policies;

(D) Instructions on how to use the cable service;

(E) Cable channel positions and identification;

(F) Customer service telephone number and office hours;

(G) Billing and complaint procedures, including how to resolve subscriber billing disputes;

(H) Credit procedures;

(I) Employee identifications;

(J) Service call response time scheduling;

(K) Time allowed to pay outstanding bills;

(L) Grounds for termination of service;

(M) Steps grantee must take before disconnecting or terminating service, and the steps necessary to have service reconnected after involuntary termination;

(N) The subscriber's right to speak with a supervisor and, if none is then available, that a supervisor shall return the subscriber's call within one working day;

(O) The appropriate regulatory authority with whom to register a complaint, including any rate complaint, and how to contact such authority.

(P) Instructions on the channel compatibility problems that occur when using a set-top channel converter to view scrambled or encrypted programming, including that subscribers may not be able to use special features and functions of their TV receivers and videocassette recorders.

(Q) Instructions regarding the availability of remote control equipment from other sources, such as retail outlets, and a list of the models of remote control units currently available from retailers that arc compatible with grantee's converters.

(Ord. 4315, passed 11-12-96)

(A) Grantee shall demonstrate compliance with all of the standards contained in (or referenced by) § 4.04.602 by providing quarterly customer service reports to the city. The reports shall provide the following information:

(1) Volume of phone calls received by the customer service department.

(2) Percentage of time trunk lines were busy, and the abandonment rate.

(3) Average time to complete out-of-service calls, and all other service calls.

(4) Average time to complete new installations.

(5) Detailed customer complaint and outage reports.

(B) Grantee shall maintain a written log or an equivalent stored in computer memory and capable of access and reproduction, for three years indicating the time and date of all service interruptions, requests for cable service or repairs, and responses to request for cable service or repairs.

(Ord. 4315, passed 11-12-96)

(A) Grantee shall establish written procedures for receiving, acting upon and resolving subscriber complaints without intervention by the city consistent with the franchise. Grantee shall furnish a notice of such procedure to each subscriber. Grantee's complaint handling procedures shall be designed to accomplish the following:

(1) Receipt and acknowledgement of any complaint made in person or by telephone within four hours, regardless of the time the complaint is made.

(2) Acknowledgement of any complaint received by mail at grantee's office within ten business days of the date such complaint is made.

(3) Provide information to complainant regarding the right to have a complaint addressed by a city representative if it is not resolved by grantee.

(B) In the event that a subscriber complaint is not resolved to the satisfaction of the subscriber, the subscriber may request that the matter be presented to the City Manager for a hearing and resolution.

(C) In the event of a dispute between a subscriber and grantee regarding a bill, grantee shall promptly investigate the dispute and report the results to the subscriber. In the event the dispute is not resolved to the satisfaction of both parties, grantee shall inform the subscriber of all applicable complaint procedures. Further, if the subscriber notifies grantee of the disputed bill within five days after the due date, then the subscriber shall not be required to pay the disputed portion of the bill until the earlier of the following:

(1) Resolution of the dispute,

(2) Expiration of a 45 day period beginning on the date of issuance of the bill.

(D) Grantee shall respond within eight business hours to complaints made or referred to it by the city.

(E) In the event that cable service to any subscriber is interrupted, without fault of the subscriber or those within its control, for 24 or more consecutive hours, grantee shall provide each affected subscriber requesting same a pro rata rebate of the monthly fees for each 24-hour period of the interruption. In addition, customer service representatives of grantee shall have the discretion to grant refunds of up to one month for service interruptions.

(F) Grantee shall designate a "government liaison person" who shall be responsible for working with the City Manager or his or her designated representative to promptly resolve customer complaints.

(Ord. 4315, passed 11-12-96)

RATES

The city may regulate grantee's rates to the extent that rate regulation is permitted under applicable federal or state law.

(Ord. 4315, passed 11-12-96)

(A) Grantee's billing statements to its subscribers shall identify the aggregate charges for all services delivered to the subscriber, the individual services the subscriber receives, the date such charges must be paid prior to assessment of any late charge or related fee, credits for payment received against current or prior service charges and an accurate description of any taxes, fees or assessments separately charged to the subscriber.

(B) The billing statement shall advise each subscriber that complaints for unsatisfactory service may be made to the city if such complaints of poor service are not resolved by grantee to the satisfaction of each subscriber.

(C) Subscribers shall have at least 15 days from the date a bill is initially placed in first class mail, postage prepaid, and properly addressed to the subscriber (the "Billing Date") to make payment directly to grantee. Subscriber payments shall be posted promptly. Grantee shall not terminate residential service for nonpayment without providing 15 days prior written notice, which notice shall not be mailed until at least 17 days after the billing date. Grantee may not assess a late charge until at least 22 days after the billing date.

(D) Every notice of termination of service shall include: the name and address of the subscriber whose account is delinquent; the amount of the delinquency; the date by which payment is required in order to avoid termination of service; and the telephone number of grantee's representative who can provide additional information and handle complaints or initiate an investigation concerning the service and charges in question.

(E) Service may not be terminated on any day which the customer cannot reach a representative of grantee either in person or by telephone.

(F) Any service terminated without just cause shall be restored without charge. Good cause includes, but is not limited to: failure to pay, payment by check for which there are insufficient funds, theft of service, and abuse of equipment or system personnel.

(G) Refunds will be issued promptly, but no later than either:

(1) The earlier of 30 days or the next billing cycle following resolution of the refund amount; or

(2) The return of the equipment supplied by grantee if service is terminated.

(H) Grantee's late fees must closely approximate the actual loss suffered as the result of a late payment. Grantee's charges and administration of late fees shall be in conformance with applicable law.

(I) Uncollected accounts may be referred to private collection agencies for appropriate action if the bill has not been paid by the earlier of (a) 30 days following the date of involuntary termination, or (b) the 61st day following the date of issuance of that original uncollected amount, provided no notification of billing dispute has been made, or if procedures for resolution of billing disputes have not been followed as required above. If the account was voluntarily terminated, the account may not be referred to a collection agency until at least 30 days following rendering of the final bill. If notification of a billing dispute is made, all collection procedures shall be delayed as required pursuant to this section. Referral to a collection agency shall then occur no sooner than the 61st day following issuance of the original uncollected amount.

(Ord. 4315, passed 11-12-96)

Grantee shall provide written notice to the city and subscribers at least 30 days in advance of the implementation of changes in any of its rates and charges which are not subject to regulation by the city.

(Ord. 4315, passed 11-12-96)

Grantee shall not discriminate between subscribers of any type or class in any manner whatsoever. Rate discounts, however, may be provided to approved classes of persons; provided, however, that grantee shall not provide any such discounts except upon prior written approval from the city, which approval shall specify the class, method of qualification of such class, and exact amount of discount to be provided to said class. The only service charges permitted shall be those listed in published schedules which are available for inspection by anyone at grantee's office, quoted by grantee on the telephone, and displayed or communicated to all city residents; special promotions that satisfy each of the following criteria shall be excluded from this requirement: (1) limited to three months in duration, (2) offered on a citywide basis, and (3) offered to nonresidential subscribers or pursuant to a commercial service agreement.

(Ord. 4315, passed 11-12-96)

SERVICE PROVISIONS

Grantee shall provide support for PEG programming pursuant to the provisions of the franchise agreement.

(Ord. 4315, passed 11-12-96)

(A) Grantee shall extend energized trunk or distribution cable from any existing terminus of the cable system to any area immediately adjacent thereto located within grantee's franchise area having a density of at least 20 residential dwelling units per mile as measured from that terminus, or prorated portion thereof, provided that (1) each such dwelling unit is to be located within a distance of no more than a standard 150 foot drop as measured from the anticipated location of such trunk or distribution cable, and (2) grantee is able to secure all necessary easements or rights-of-way for purposes of locating its cable system in the area of such extension, including the location of all trunk, distribution and drop cables, on reasonable terms and conditions. Each unit in a multiple dwelling unit shall be considered in establishing the minimum density required for a mandatory line extension.

(B) Grantee shall extend cable television services to any isolated residences or commercial premises located within the city but not satisfying the terms of division (A) immediately above, at a premium installation rate and upon request by the resident or owner. The premium installation rate charged shall be the actual time and materials expended making the extension, including the costs, if any, of improving the trunk or distribution facilities to permit such extension. Grantee may request advance payment for such installation.

(Ord. 4315, passed 11-12-96)

It is the city's intent that tenants not be discriminated against in the ability to subscribe to cable services. Grantee shall be required to provide service to tenants in individual units of a multiple housing facility with all services offered to other dwelling units within the franchise area, so long as the owner of the facility consents in writing, if requested by grantee, to the following:

(A) Grantee's providing the service to units of the facility on such terms and conditions as are reasonable, provided that (i) the owner of the facility shall not seek to charge grantee any fee or consideration for access to the facility or for the right of providing cable service to the dwelling units within the facility, (ii) grantee shall not seek to charge the owner of the facility any fee or consideration for installing such service other than its actual costs as provided for herein, and (iii) such terms and conditions shall be in compliance with applicable law;

(B) Reasonable access to the premises by grantee for installation, maintenance, and inspection of the system on the premises;

(C) Reasonable conditions promulgated by grantee to protect Grantee's equipment and to encourage widespread use of the system;

(D) The owner shall not discriminate in rental charges, or otherwise, between tenants who receive cable service and those who do not; and

(E) The owner shall provide all easements, rights-of-way and other rights of access deemed reasonably necessary or appropriate by grantee for purposes of providing cable television service to the facility.

(Ord. 4315, passed 11-12-96)

(A) Subscribers shall have the right to continue to receive service so long as their financial and other obligations to grantee are honored. Grantee shall at all times, and under all conditions, to the greatest extent economically and technically possible, maintain continuity of service. In the event of an assignment of the cable system, the assignor shall cooperate with the city and the assignee in order to maintain continuity of service to all subscribers.

(B) In the event grantee wilfully fails to operate the cable system for a period of five consecutive days without prior approval of the city, the city may, in its sole discretion, elect to operate the cable system or designate an operator until grantee restores service under conditions acceptable to the city, or until the cit selects a permanent operator. During the entire period while the city operates the cable system on behalf of grantee, or causes another party to do so, the city shall be entitled to collect any and all revenues from the operation of the cable system, and grantee shall reimburse the city for all reasonable costs or damages in excess of the revenues collected by the city that are caused by grantee's failure to perform.

(Ord. 4315, passed 11-12-96)

OPERATION AND MAINTENANCE

The city shall have the right, upon two business days advanced notice, to inspect all books, records, maps, plans, gross revenues, service complaint logs, performance test results and other like materials of grantee which reasonably relate to grantee's compliance with the provisions of the franchise. If the records are not located within Los Angeles County, grantee shall pay all of the city's reasonable expenses in order to messenger the records to a suitable location in Los Angeles County or for travel to and accommodations at the place where the records are located.

(Ord. 4315, passed 11-12-96)

(A) An accurate and comprehensive file shall be kept by grantee of any and all written complaints, inquiries, or requests for service or repairs regarding the cable system. This file and the records contained therein shall be open to the public during normal business hours and individuals shall be allowed to inspect their own files.

(B) Records of grantee's actions in response to all complaints or inquiries which result in a service call shall be entered into a data base, or "log". For each complaint or request for service or repairs ("complaint"), the log shall list the date the complaint was made, identify the subscriber who made the complaint, describe the nature of the complaint, and identify the time and nature of the action taken by grantee in response to the complaint. A separate log shall identify system outages. All such records shall be maintained for a period of three years, and shall be available for inspection in accordance with § 4.04.902. Summaries of all records identified in this section be available monthly and delivered quarterly to the City Manager or his designated representative.

(Ord. 4315, passed 11-12-96)

Any physical damage caused by employees, contractors or subcontractors of grantee to private or public property shall be promptly repaired or replaced at the sole cost of grantee. This section shall not affect any remedy that grantee may have against such employee, contractor or subcontractor respecting such costs.

(Ord. 4315, passed 11-12-96)

CONDEMNATION

The city reserves the right to at any time condemn the franchise, or any other property or plant of grantee, in accordance with the Cable Act and any other applicable federal and state law.

(Ord. 4315, passed 11-12-96)

REPORTS

Within 90 days after the close of grantee's fiscal year, grantee shall submit a written annual report, if requested, in a form approved by the city, which shall include without limitation the following information:

(A) A summary of the previous year's (or, in the case of the initial report year, the initial year's) activities in development of the cable system, including, but not limited to, services begun or discontinued during the reporting year, and the number of subscribers for each class of service;

(B) A revenue statement in accordance with § 4.04.322(D) of this chapter;

(C) A statement of projected construction, if any, for the next two years;

(D) A list of grantee's officers, members of its board of directors, and other principals of grantee;

(E) A list of stockholders or other equity investors holding five percent or more of the voting interest in grantee and its parents, if any, unless the parent is a public corporation whose annual reports are publicly available;

(F) Grantee's annual and other periodic public financial reports and those of its parent, subsidiary and affiliated corporations and other entities;

(G) A summary of the cable system which shall indicate miles and homes passed;

(H) Annual proof of performance tests, in sufficient detail to enable the city to ascertain that the technical standards of the franchise are achieved and maintained.

(Ord. 4315, passed 11-12-96)

Copies of all reports materially adversely affecting the franchise submitted by grantee to the FCC or any other federal or state agency shall be submitted to the city simultaneously with filing such reports with said agencies. Grantee's routine public correspondence to said agencies need not be automatically submitted to the city, but shall be made available to the city upon written request.

(Ord. 4315, passed 11-12-96)

The refusal, failure, or neglect of grantee to file any of the reports required under this chapter, or the inclusion of any materially false or misleading statement or representation made knowingly by grantee in any report, shall be deemed a material breach of the franchise, and shall subject grantee to all remedies, legal or equitable, which are available to the city under the franchise or otherwise.

(Ord. 4315, passed 11-12-96)

Grantee shall allow the city to make inspections of any of grantee's facilities and equipment relevant to the franchise at any time upon reasonable notice or, in a case of emergency, upon demand without prior notice.

(Ord. 4315, passed 11-12-96)

The city shall be provided with copies of all subscriber satisfaction surveys that grantee conducts.

(Ord. 4315, passed 11-12-96)

(A) At the city's sole election and discretion, within 90 days of the first anniversary of the effective date of a franchise, and every year thereafter throughout the term of the franchise, the city may hold a public hearing at which grantee shall be present and shall participate, to review the performance and quality of service of the cable system. The reports required herein regarding subscriber complaints, the records of performance tests and the opinion survey report shall be utilized as the basis for review. In addition, any subscriber may submit comments or complaints during the review meetings, either orally or in writing to be considered.

(B) Within 30 days after the conclusion of the public hearing, the city may issue a report with respect to cable system performance and quality of service. If any noncompliance with the franchise is found, the city may direct grantee to correct the noncompliance within a reasonable period of time in accordance with the provisions of this chapter.

(C) Grantee's failure, after due notice and opportunity to cure as set forth in this chapter, to correct the noncompliance shall be considered a breach of the franchise, and the city may, at its sole discretion, exercise any remedy within the scope of this chapter deemed by the city to be appropriate.

(Ord. 4315, passed 11-12-96)

To address technological, economic, and regulatory changes in the state of the art of cable communications, to facilitate renewal procedures, and to promote flexibility in the cable system, the following system and services review procedures are hereby established:

(A) At the city's sole election and discretion, the city may hold a public hearing on or about the first anniversary date of the franchise agreement at which grantee shall be present and shall participate, to review the cable system and cable services. Subsequent system and services review hearings may be scheduled by the city thereafter at no more frequently than one year intervals.

(B) Sixty days after receiving a written request therefore from the city, grantee shall submit a report to the city indicating the following:

(1) Information reasonably available to grantee identifying cable services and related technologies reported in cable industry trade journals that are commonly provided on an operational basis, excluding tests and demonstrations, to communities in the United States with comparable populations, that are not provided to the city.

(2) Any specific plans for provision of such new services and technologies by grantee.

(C) Topics for discussion and review at the system and services review hearing shall include, but shall not be limited to, services provided, economic and technical feasibility of providing new services, application of new technologies, system performance, programming, subscriber complaints, user complaints, rights of privacy, amendments to the franchise, undergrounding processes, developments in the law, and regulatory constraints.

(D) Either the city or grantee may select additional topics for discussion at any review hearing.

(E) Not later than 60 days after the conclusion of each system and service review hearing, the city may issue a report, including specifically a listing of any cable services not then being provided to the city that are considered technically and economically feasible and for which there is a demonstrated demand among grantee's subscribers in relation to the cost thereof. The city may request, but not require, grantee to provide such services within a reasonable time.

(Ord. 4315, passed 11-12-96)

MISCELLANEOUS PROVISIONS

Subject to grantee's rights under its franchise agreement, grantee shall at all times comply with all applicable laws and regulations of the state and federal government or any administrative agencies thereof. However, if any such law or regulation shall require grantee to perform any service, or shall permit grantee to delete any service, or shall prohibit grantee from performing any service, in conflict with the terms of the franchise or any law or regulation of the city, then as soon as possible following knowledge thereof, grantee shall notify the city of the point of conflict believed to exist.

(Ord. 4315, passed 11-12-96)

Grantee shall maintain within the County of Los Angeles throughout the term of the franchise an address for service of notice by mail.

(Ord. 4315, passed 11-12-96)

(A) The design of the division of land shall provide each grantee an opportunity to construct, install and maintain, on land identified on the map as dedicated or to be dedicated to public utility use, any equipment necessary to extend cable services to each residential parcel in the subdivision. This division shall not apply to the conversion of existing dwelling units to condominiums, community apartments, or stock cooperatives.

(B) Subject to all applicable federal and state laws, statutes and regulations, in the event of multiple cable television operators desiring to serve new residential developments in which the electric power and telephone utilities are underground, the following procedure shall apply with respect to access to and utilization of underground easements:

(1) The developer shall at its sole cost and expense contact and survey every person who lawfully provides cable services and/or related services to residents in the city using a cable system or similar transmission line system (collectively, "cable operator"), and thereby ascertain which such cable operator(s) desire or are required to service the development. The developer may establish a reasonable deadline to receive such responses. The final tract map shall indicate the cable operator(s) who have agreed to serve the development.

(2) If one or more cable operator(s) desire to service the development, they shall be accommodated in the joint utilities trench on a nondiscriminatory shared basis.

(3) The developer shall provide at least ten working days' notice of the date that utility trenches will be open to the cable operators that have agreed to service the development.

(4) Sharing the joint utilities trench shall be subject to compliance with Public Utilities Commission and Utility Standards. If such compliance is not possible, or if three or more cable operators desire to provide service to the development, the developer shall provide a separate trench for the transmission lines, with the entire cost shared among the participating cable operators. With the concurrence of the developer, the affected utilities and the cable operators, alternative installation procedures, such as the use of deeper trenches, may be utilized, subject to applicable law.

(5) Any cable operator wishing to serve an area where the trenches have been closed shall be responsible for its own trenching and associated costs; provided that if the developer failed to provide such cable operator timely written notice of the availability of such trenches as required herein, then the developer shall reimburse the operator for such costs.

(Ord. 4315, passed 11-12-96)