17-3 SYSTEM CAPABILITY; CABLE SERVICE GENERALLY.

a. Capability .

1. A cable system operated under this chapter shall comply with the specifications set forth in this chapter and in the award agreement. It shall operate at a minimum over the frequency spectrum from fifty to four hundred (50 to 400 MHz) megahertz. The system shall provide a minimum capability of fifty-four (54) Class 1 Video Channels from the outset. Signal carriage and placement shall be as specified in the award agreement.

2. The system shall from the outset be capable of providing upstream carriage of signals over the frequency spectrum from five to thirty (5-30 MHz) megahertz as needed for purposes such as data transmission, telemetry or remote cablecasts of locally originated programming, in accordance with the technical specifications set forth in the award agreement.

3. An award agreement approved by the Town shall include a specific plan for activating two (2) way services by January, 1989. The operator may request, and the Town may extend this date. The Town’s decision with regard to any requested extensions shall take into consideration technical, economic and service demand factors related to two (2) way service.

4. The system shall provide a broad spectrum of FM radio signals to all subscribers.

5. The system shall operate continuously twenty-four (24) hours per day, each day of the year.

6. The operator shall furnish to each subscriber at all time the highest quality picture and sound permitted by current technology and the quality of the signal received for transmission in accordance with the technical standards and specifications set forth in the award agreement.

7. The operator shall make all reasonable efforts to provide a range of services responsive to a broad spectrum of community needs and interests. Initial radio and television signal carriage shall be as set forth in the award agreement.

b. Changes in Services Offered .

1. Changes. Changes in the channels or services set forth in the award agreement (with respect to channels not

dedicated for community service purposes) including realignment of signals on the cablecast spectrum, shall be at the discretion of the operator, to the extent such changes are permitted by the FCC. The operator shall, however, furnish written notice to the Town of its intent to make any changes in signal alignment or services offered at least ninety (90) days before the intended date of such change.

The operator shall also provide information to subscribers regarding an operator initiated change, by written and cablecast message. Information provided by cablecast message shall be repeated several times throughout the viewing day for at least three (3) consecutive days when possible. If a channel or program service is discontinued, the operator shall immediately provide a substitution.

2. No Reduction in Channels. This subsection does not permit a reduction in the total number of channels available under basic service unless the Town consents to a reduction.

c. Information to Public . Subscribers shall be given ready access to accurate and current information on all program offerings available on the cable system, including the programming available on all community service channels (to the extent such information is made available to the operator). The Town may at any time require the operator to provide a written program guide detailing the available services and programs if it determines such information is incomplete or unavailable from other sources. If required, the operator shall provide the guide on a voluntary subscription basis and at a reasonable costs. The operator shall also provide program information, including community service program announcements, on a character-generated channel.

d. Failure to Comply . Failure to comply with the requirements of this subsection is an immaterial breach and subjects the operator to monetary penalties as provided in subsection 17-7.5. Repeated or excessive failure to comply with these requirements may constitute a material breach as set forth in subsection 17-6.3.

e. Free Service to Community Sites . The operator shall, as the Town may request, furnish one (1) installation for basic service each, without installation or monthly service charge, to all Town buildings, each Fire and Police Department station, each public school, public library, recreational facility, community center and other community service facility open to the general public and designated by the Town; and the operator shall provide additional basic service outlets at these locations at its cost of labor and materials, without other installation charges and without monthly service charge when service is also available to private customers in that area. If an installation required by the Town requires an extension of the operator’s distribution plant not otherwise required by this chapter the installations shall be made by the operator at its cost of time and materials to be paid by the public agency for which the service is provided.

(Ord. #23-83, §1; Ord. #96, §1C, D)

The purpose of this subsection is to provide the means for high quality professional cablecasting of community-oriented programming which originates locally or is particularly responsive to local needs and interests.

• a. Channel Capacity . The operator shall provide the following without charge:

1. At least one (1) channel each for public access, educational access and municipal access; and

2. All interface equipment and cabling necessary to permit transmission of these channels on the cable system.

If the Town determines there is a need for additional access channel capacity, the Town may require the operator to provide up to three (3) additional channels for this purpose. The award agreement shall set forth procedures for such action including reasonable notice and opportunity for response by the operator. This provision does not preclude the operator’s voluntary allocation of a greater number of access channels.

b. Operator Support . The operator shall provide the following without charge and in accordance with specifications in the award agreement:

1. Studio facilities, production, editing and other equipment, staffing and ongoing financial support and other resources in order to permit quality cablecasting (both live and on tape) on the access channels;

2. Portable equipment to enable production, and for remote insertion, of live programming from points other than the community studio; and

3. Advice and technical assistance in the effective use of the access channels.

c. Community Service Radio Access . The operator shall allocate an FM channel, or designated time periods on a channel, of its FM radio spectrum for community service programming without charge, as requested by the Town.

d. Access to Upstream Bandwidth . The operator shall provide without charge access to portions of its upstream bandwidth when requested by an access channel in order to permit direct feed of community service programming to the head-end for purposes of transmitting live or recorded material on an access channel. The operator shall also, without charge, provide the equipment and technical assistance required to activate the origination capability of each access channel from both the head-end and remote sites.

e. Access for Data, Audio, and/or Telemetry Transmission . The Town may require the operator to make available, without charge, access to portions of the system’s upstream and downstream bandwidth not otherwise in use, for purposes

of data, audio, and/or telemetry transmission by the Town, public schools, or other government or public service agencies. The Town may require this access only after the Town and the operator have agreed upon mutually satisfactory procedures, including provisions: (1) enabling the operator to realign or regain such frequencies for its own use when needed; and (2) development of a reasonable service call contract to cover the operator’s expenses in making and servicing system connections in support of Town circuits.

The Town may require this access only after the Town and the operator have agreed upon mutually satisfactory procedures, including provisions: (1) enabling the operator to realign or regain such frequencies for its own use when needed; and (2) development of a reasonable service call contract to cover the operator’s expenses in making and servicing system connections in support of Town circuits.

f. Other Use of Access Channels . Subject to limitations specified in the award agreement, the operator may use available air time on an access channel at no charge for its own programming purposes during the periods of time the channel is not otherwise needed for community service programming.

g. Access Channel Management . The Town wishes to ensure that each access channel is operated in the highest public interest. The Town may delegate responsibility for operation and management of a channel to another entity such as a public non-profit corporation representing a broad spectrum of the community. The Town may authorize the entity to receive and allocate funding, facilities, equipment and other resources for community service programming purposes, develop and administer operational policies, hire and supervise personnel, and undertake other responsibilities necessary for access channel operation.

h. Implementation . Procedures and conditions to implement this section shall be set forth more specifically in the award agreement. The procedures and conditions may include:

1. Placement of access channels on the television spectrum of channels;

2. Operator support;

3. Operator use of access channels;

4. Community service radio access;

5. Both upstream and downstream access to portions of the bandwidth required for interactive transmission of video, audio, telemetry, data or other signals; and

6. Leased access to access channels.

(Ord, #23-83, §1)

a. Subscriber rates and charges shall be as set forth in the award agreement. No increase in any rates or charges for basic service shall be permitted for the first twelve (12) months after the new or rebuilt system is completed as defined in subsection 17-2.3b, 3. pursuant to this award.

b. Subsequent proposals to increase rates or charges for basic service shall be submitted to the Town in writing, and shall include the following:

1. An audited balance sheet and income statement for the most recent three (3) full fiscal years;

2. Copies of submissions to the FCC on Forms 325 and 326 for the most recent three (3) full years;

3. A pro forma balance sheet, income statement and projection for the fiscal year following, assuming the requested rates and such other changes as the operator may project;

4. Supporting schedules as required, including:

• (a) Detail of total system operating revenues and system expenses;

• (b) Number of subscribers;

• (c) Detail of assets and depreciation and amortization schedules;

5. A schedule of all rates and charges in effect and proposed; and

6. Other supporting facts as the Town requests.

The data provided shall be certified as true and accurate by the operator’s Chief Financial Officer. The financial statements and statistics required shall cover the operator’s system in the Town of Danville. However, if the system serving Danville is part of a larger cable television system, then the franchise agreement shall specify those parts of the operator’s system for which financial information shall be required.

c. Procedure . Upon receipt of the operator’s request for changes in subscriber rates and charges for basic service, the Town shall schedule a public hearing within thirty (30) days after receipt of all supporting financial information. The Town shall finally act on the request within one hundred twenty (120) days after the close of the public hearing. The Town and operator may mutually agree in writing to extensions of the deadlines set forth in order that the operator may prepare and provide additional data requested by the Town. If the Town does not act within one hundred twenty (120) days, the operator’s proposed amendment to the rates and charges becomes effective. To the extent that a proposed amendment is disapproved, the Town shall within the one hundred twenty (120) day period, or mutually agreed extensions, set forth in writing its findings of facts. The Town, in arriving at its decision to approve or disapprove the operator request, may consider

relevant factors such as the operator’s quality of service, comparable rates in similar systems, and the operator’s performance in meeting franchise requirements.

In setting subscriber rates and charges, the operator is entitled to recover the reasonable cost of providing service, including a fair return on the operator’s invested capital.

d. Converters . There may be no rental charge for the use of the initial converter box to receive basic service. Operator may institute a rental charge for additional converter boxes. The operator may require a security deposit for a converter in an amount and under terms established by the franchise agreement.

(Ord. #23-83, §1; Ord. #96, §1E)