La Palma Municipal Code Art. I In General

For the purposes of this chapter, the following terms, phrases, words, abbreviations, and their derivations shall have the meaning given in this section. When not inconsistent with the context, words used in the present tense include the future tense; words in the plural number include the singular number; and words in the singular number include the plural number.

Annual gross receipts means any and all compensation, in whatever form, grant, subsidy, exchange, or otherwise, directly or indirectly received by a grantee in connection with the operation of the cable system, not including any taxes on services furnished by such grantee imposed directly on any subscriber or user by a City, County, State or other governmental unit, and collected by the grantee for such activity, and shall specifically include gross annual basic service receipts, gross annual nonbasic service receipts, gross annual advertising receipts and gross annual leased channel receipts.

CATV means community antenna television system as defined in this section.

City means the City of La Palma, a municipal corporation of the State of California, in its present incorporated form or in later reorganized, consolidated, enlarged or reincorporated form.

City Clerk means the City Clerk of the City, or his or her designee.

City Engineer means the City Engineer of the City, or his or her designee.

City Manager means the City Manager of the City, or his or her designee.

Community antenna television system (CATV) means a system of antenna, satellite receiving and transmitting apparatus, coaxial cables, fiber optics, wires, wave guides and/or other conductors, amplifiers, electronic processors, equipment and facilities designed, constructed or used for the purpose of providing over-the-air, satellite-delivered, and locally-originated television or FM radio service by cable within the City. Such a definition does not include those services which are classified as MDS (multiple distribution systems), DBS (direct broadcast satellite), or STV (subscription television) services, all of which are delivered without wires from a central originating point directly to a subscriber without the use of wires.

Council means the present governing body of the City or any future board constituting the legislative body of the City.

Day means a calendar day.

Franchise means and includes any authorization granted under this chapter in terms of a franchise, privilege, permit, license or otherwise to construct, operate and maintain a CATV system in the City. Any such authorization, in whatever term granted, shall not mean or include any license or permit required for the privilege of transacting and carrying on a business within the City in accordance with any other provision of this Code, or any amendment thereto, or any supplemental provisions, sections or articles. Any such authorization, in whatever term granted, shall not relieve the grantee from any type of tax or fee now or hereafter imposed by the City; provided, that franchise payments shall be determined pursuant to this chapter.

Grantee means a person, firm or corporation to whom or to which a franchise is granted by the Council under this chapter, and the lawful successor, transferee or assignee of such person, firm or corporation.

Property of grantee means all property owned, installed or used by a grantee in the conduct of a CATV business in the City under the authority of a franchise granted pursuant to this chapter.

Street orpublic street means only a street, road, highway, freeway, lane, path, alley, court, sidewalk, parkway or drive which is owned by a public entity in fee or as to which a public entity has an easement for street purposes, and with respect to which, and to the extent that, the City has a right to grant the use of the surface of, and space above and below in connection with, a franchise for a CATV system.

Subscriber means any person or entity receiving for any purpose the CATV services of a grantee.

(Code 1975, § 7A-1; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(a))

(a) A nonexclusive franchise to install, construct, operate, and maintain a CATV system on streets within all or a specific portion of the City may be granted by the Council to any person, whether or not operating under an existing franchise, who or which offers to furnish and provide such system under and pursuant to the terms and provisions of this chapter.

(b) When and in the event that the grantee of any franchise granted hereunder uses in its CATV system distribution channels furnished to the grantee by a telephone company pursuant to tariff or contract on file with a regulatory body having jurisdiction, and such grantee makes no use of the streets independent of such telephone-company furnished facilities, such grantee shall be required to comply with all of the provisions of this chapter as a "licensee," and in such event, whenever the term "grantee" is used in this chapter, it means and includes "licensee." No provision of this chapter shall be deemed or construed as requiring the granting of a franchise hereunder to a telephone company furnishing such a channel service.

(Code 1975, § 7A-2; Ord. No. 86-14, § 1)

Any franchise granted pursuant to the provisions of this chapter shall authorize and permit the grantee to engage in the business of operating and providing a CATV system within all or a specific portion of the City, and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain and retain in, on, under, upon, across, and along any public street, such wires, cable, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments, and other property as may be necessary and appurtenant to the CATV system; and, in addition, so to use, operate and provide similar facilities or properties rented or leased from other persons, firms or corporations, including but not limited to any public utility or other grantee franchised or permitted to do business in the City.

(Code 1975, § 7A-3; Ord. No. 86-14, § 1)

(a) Every franchise granted under this chapter shall be nonexclusive. Neither the granting of any franchise under this chapter nor any of the provisions contained in this chapter shall be construed to prevent the City from granting any identical or similar franchise to any other person, firm or corporation within all or any portion of the City.

(b) No privilege or exemption shall be granted or conferred by any franchise granted under this chapter except those specifically prescribed in this chapter.

(c) Any privilege claimed under any such franchise by the grantee in any public street or other public property shall be subordinate to any prior or subsequent lawful occupancy or use thereof by the City or any other governmental entity, and shall be subordinate to any easements therein, whether created prior or subsequent to the granting of any franchise hereunder.

(d) Any such franchise shall be a privilege to be held in personal trust by the original grantee. It cannot in any event be sold, transferred, leased, assigned or disposed of, in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, consolidation or otherwise, without the prior consent of the Council expressed by resolution, after receipt of any proposed contractual documents directly related to the franchise, and then only under such conditions as may in such resolution be prescribed. Any such transfer or assignment shall be made only by an instrument in writing, a duly executed copy of which shall be filed in the office of the City Clerk within 30 days after any such transfer or assignment. The consent of the Council, except as to assignment or transfers as specified in section 12-9, may not be unreasonably withheld; provided, however, the proposed assignee must show financial responsibility and must agree to comply with all provisions of this chapter and of the franchise; and provided further, that no consent shall be required for a transfer in trust, mortgage or other hypothecation to secure an indebtedness unless it shall have been made to avoid or evade the other provisions of this chapter affecting transfers. Consistent with applicable law, a request for Council consent must be accompanied with a fee reasonably determined by the Council to recover City expenses connected with processing the change.

(e) Grantee shall promptly notify the City of any proposed change in control of the grantee. Such change in control shall make the franchise null and void unless and until the City shall have consented thereto. Failure of the City to act upon the grantee's notification within 90 days of the receipt by the grantor of all relevant information shall be deemed the City's consent thereto. The City may condition the transfer upon reasonable terms and conditions. For the purposes of this subsection, a presumptive change in control exists, upon the sale or transfer of 20 percent or more in any given year of the grantee's stock, or the cumulative sale of 50 percent or more of the City's stock. However, notwithstanding anything to the contrary provided in this subsection, stock sales or transfers to:

(1) Existing shareholders;

(2) Members of families of persons in the foregoing subsection (e)(1); and

(3) Trusts for the benefit of persons in the foregoing subsections (e)(1) and (2);

shall not require consent under the provisions of this section or be counted in determining percentages under the provisions of this subsection. In addition, a presumptive change in control will exist when the grantee causes a change in the identity of the managing agent (operator) of the grantee's system; provided, that if the existing managing agent (operator) is terminated for cause, consent for such termination shall not be required but consent shall be required for the selection of a new managing agent (operator).

(f) Time shall be of the essence of any such franchise granted hereunder. The grantee shall not be relieved of its obligation to comply promptly with any of the provisions of this chapter or by any failure of the City to enforce prompt compliance.

(g) Any right or power in, or duty impressed 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.

(h) The grantee shall have no recourse whatsoever against the City for any loss, cost, expense, or damage arising out of any provision or requirement of this chapter or of any franchise issued hereunder or because of its enforcement.

(i) The grantee shall be subject to all requirements of City ordinances, rules, regulations and specifications heretofore or hereafter enacted or established to protect the public safety and general welfare and/or which apply generally to persons or businesses in the community, and shall comply with all applicable State and federal laws and regulations heretofore or hereafter enacted or established.

(j) Any such franchise shall not relieve the grantee of any obligation involved in obtaining pole space from any department of the City, utility company, or from others maintaining poles in the streets.

(k) Any franchise granted hereunder shall be in lieu of any and all other rights, privileges, powers, immunities, and authorities owned, possessed, controlled or exercisable by the grantee, or any successor to any interest of the grantee, or pertaining to the construction, operation, or maintenance of any CATV system in the City; and the acceptance of any franchise hereunder shall operate, as between a grantee and the City, as an abandonment of any and all of such rights, privileges, powers, immunities, and authorities within the City, to the effect that, as between the grantee and the City, any and all construction, operation and maintenance by any grantee of any CATV system in the City shall be, and shall be deemed and construed in all instances and respects to be, under and pursuant to such franchise, and not under or pursuant to any other right, privilege, power, immunity or authority whatsoever.

(Code 1975, § 7A-4; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(b))

(a) Nothing in this chapter shall be deemed or construed to impair or affect, in any way, to any extent, the right of the City to acquire the property of a grantee, either by a mutually agreed purchase or through the exercise of the right of eminent domain, at the then fair market value, and nothing in this chapter 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.

(b) In the event the City desires to acquire all or a part of the CATV system (acquisition of part of the CATV system is restricted to those portions of the system, which if owned by the City, would not substantially undermine the economic viability of the remainder of the system), fair market value shall include consideration of the cable television system as a going concern.

(c) In the event of purchase by the City, or a change of the grantee, the current grantee shall cooperate with the City, or with a representative appointed by the City, to operate the system for a temporary period in maintaining continuity of service.

(d) There is reserved to the City every right and power which is required to be in this chapter reserved or provided by any ordinance of the City, and a grantee, by its acceptance of any franchise, agrees to be bound thereby and to comply with any action or requirements of the City in its exercise of such rights or power heretofore or hereafter enacted or established.

(e) Neither the granting of any franchise under this chapter nor any of the provisions contained in this chapter shall be construed to prevent the City from granting any identical or similar franchise to any other person, firm or corporation within all or any portion of the City.

(f) There is reserved to the City the power to amend any section or part of this chapter so as to require additional or greater standards of construction, operation or maintenance or otherwise, on the part of a grantee. Such additional or greater standards shall apply only to additions to existing systems of a grantee unless mutually agreed to by the City and a grantee or as dictated by the public safety and welfare.

(g) Neither the granting of any franchise nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City, now existing or hereafter granted.

(h) The Council may do all things which are necessary and convenient 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, either on behalf of the City, the grantee, or any subscriber, in the best interest of the public. Either the grantee or any member of the public who may be dissatisfied with the decision of the City Manager may appeal the matter to the Council for hearing and determination. The Council may accept, reject, or modify the decision of the City Manager, and the Council may adjust, settle, or compromise any controversy or cancel any charge arising from the operations of any grantee or from any provision of the chapter. All actions by the Council under this section shall be after hearing, upon ten days' advance written notice to the grantee at its address on file with the City. Such actions may be by either resolution or minute order, except that revocation of a franchise pursuant to section 12-9 shall be by ordinance.

(i) The City reserves the right, in special circumstances, to construct such portion of a grantee's proposed facilities and equipment as public safety and convenience may dictate, at the grantee's sole expense.

(j) The City reserves the right to remove any portion of a grantee's equipment and facilities as may be required in any emergency, as determined by the City, without liability for interruption of service, and the City shall not be obligated to restore service or to pay the costs of expenses of restoring service.

(Code 1975, § 7A-5; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(e))

This chapter shall be incorporated by reference in any franchise award, and any and every provision hereof shall be incorporated as though the same were set out in full, except for those provisions of the award which expressly alter or modify this chapter, and all provisions shall be binding upon the grantee.

(Code 1975, § 7A-7; Ord. No. 86-14, § 1)

(a) Any and all CATV systems for the City shall be designed and installed to meet all of the standards set forth in the franchise agreement.

(b) It is the City's desire that the CATV system be a State-of-the-art system and include an operational institutional network when it is technologically and economically feasible. The grantee shall make every reasonable effort to develop such institutional services and provide them as a part of the CATV system within the above-stated constraints. When requested by the City, and not more than annually, the grantee shall submit to the City a report concerning the State-of-the-art with regard to institutional networks and the grantee's ability to provide and market the same. Such institutional services shall be provided by the grantee when such services are being provided by the grantee:

(1) As a part of other comparable cable television franchises in Southern California on a nonexperimental basis; or

(2) As a part of any cable television system for which the City's system is a line extension.

(c) As part of its proposal to the City, the franchise applicant shall indicate a proposed construction schedule for the completion of the installation of the cable television system throughout the entire City, or the portion thereof for which a franchise is being requested. Service to the areas prescribed in that proposal or as modified in the franchise agreement shall be provided within the periods stated, and failure on the part of the grantee to complete each of the matters set forth therein shall be grounds for termination of the franchise, as well as invocation of the penalties prescribed in sections 12-11 and 12-22 and any other penalties specified in this chapter or in the franchise agreement. The proposed construction schedule shall not, in any event, exceed two years, except that by resolution the Council, in its discretion, may extend the time for the commencement and completion of installation and construction for additional periods in the event the grantee, acting in good faith, experiences delays by reason of circumstances beyond its control.

(Code 1975, § 7A-8; Ord. No. 86-14, § 1)

(a) No franchise granted by the Council under this chapter shall be for a term longer than 15 years following the date of acceptance of such franchise, or the renewal thereof, by the grantee. Any such franchise shall terminate in whole if the City acquires the CATV system, or proportionately if the City acquires a portion thereof.

(b) Any such franchise granted hereunder may be terminated prior to its date of expiration by the Council in the event that:

(1) The City acquires the CATV system property of the grantee;

(2) The grantee has failed to comply with any material provision of this chapter or has by act or omission violated any material term or condition of any franchise or permit issued hereunder; or

(3) The application of the grantee, including accompanying reports or data, contains a material misrepresentation, whether intentional or not.

(c) The City Manager shall make written demand that the grantee comply with any such term or condition of the franchise or permit issued thereunder. If the failure, refusal or neglect of the grantee continues for a period of 30 days following such written demand, the City Manager may place his or her request for termination of the franchise upon the next regular Council meeting agenda. The City Manager shall cause to be served upon such grantee, at least ten days prior to the date of such Council meeting, a written notice of his or her intent to request such termination and the reason therefor, and the time and place of the meeting, notice of which shall be published by the City Clerk at least once ten days before such meeting in the newspaper utilized by the City for publication of its public hearing notices and other legal notices.

(d) The Council shall consider the request of the City Manager and shall hear any persons interested therein, and shall determine whether or not the failure, refusal or neglect by the grantee was with just cause.

(e) If such failure, refusal or neglect by the grantee was with just cause, the Council shall direct the grantee to comply within such time and manner and upon such terms and conditions as are reasonable.

(f) If the Council finds there has been such failure, refusal or neglect by the grantee, the Council may declare that the franchise is terminated and forfeited. The Council may impose any other remedy it deems appropriate unless there is compliance by the grantee within such periods as the Council may fix.

(g) A franchise granted hereunder shall, at the option of the Council, cease and terminate 120 days after the appointment of a receiver or receivers or trustee or trustees to take over and conduct the business of the grantee whether in a receivership, reorganization, bankruptcy or other action or proceeding unless such receivership shall have been vacated prior to the expiration of the 120 days, or unless:

(1) Such receivers or trustees shall have, within 120 days after their election or appointment, fully complied with all the terms and provisions of this chapter and the franchise granted pursuant hereto, and the receivers or trustees within such 120 days shall have remedied all defaults under the franchise; and

(2) Such receivers or trustees shall, within such 120 days, execute an agreement duly approved by the court having jurisdiction in the premises, whereby such receivers or trustees assume and agree to be bound by each and every term, provision, and limitation of the franchise granted under this chapter.

(h) In the case of a foreclosure or other judicial sale of the plant, property and equipment of a grantee, or any part thereof, including or excluding its franchise, the Council may serve notice of termination upon the grantee and the successful bidder at such sale, in which event the franchise and all rights and privileges of the grantee thereunder shall cease and terminate 30 days after service of such notice, unless:

(1) The Council shall have approved the transfer of the franchise, as and in the manner provided in this chapter; and

(2) Such successful bidder shall have covenanted and agreed with the City to assume and be bound by all the terms and conditions of the franchise.

(Code 1975, § 7A-9; Ord. No. 86-14, § 1)

(a) Any grantee granted a franchise under this chapter shall pay to the City, during the life of such franchise, a franchise fee equal to five percent of the grantee's annual gross receipts. If, during any part of the franchise term, there is in effect a federal or State limit regulating the franchise fee percentage to a different amount, the maximum rate allowed thereby shall apply, but only to the extent required by law and only for that time period such limit is legally operational. Franchise fee payment by the grantee to the City shall be made quarterly by delivery of the same to the City Clerk not later than April 15, July 15, October 15, and January 15 for the preceding quarter.

(b) The grantee shall file with the City Clerk, within 90 days after the expiration of the grantee's fiscal year or portion thereof during which such franchise is in force, a statement showing in detail the annual gross receipts, as defined in this chapter, of the grantee during the preceding fiscal year, or portion thereof. It shall be the duty of the grantee to pay to the City, within 15 days after the time for filing such statement, any unpaid balance thereof for the fiscal year or portion thereof covered by such statements.

(c) The City shall have the right to inspect and audit a grantee's fiscal records. If an independent audit of a grantee's records directed by the City shows a franchise fee error in excess of two percent in the City's favor, the grantee shall assume all reasonable costs for the audit. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further additional sums payable under this section or for the performance of any other obligation under this chapter.

(Code 1975, § 7A-10; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(d))

(a) Within 60 days after acceptance of a franchise, the grantee shall apply for and proceed with due diligence to obtain all necessary permits and authorizations which are required in the conduct of its business, including but not limited to, any utility joint use attachment agreements, microwave carrier licenses, and any other permits, licenses and authorizations to be granted by duly constituted regulatory agencies having jurisdiction over the operation of CATV systems, or their associated microwave transmission facilities.

(b) Within 180 days after obtaining all necessary permits, licenses and authorizations, the grantee shall commence construction and installation of the CATV system.

(c) Within 90 days after the commencement of construction and installation of the system, the grantee shall proceed to render service to subscribers, and the completion of the construction and installation shall be pursued with reasonable diligence thereafter, so that service to all areas designated on the map accompanying the application for franchise or as modified in the franchise agreement shall be provided within one year from the date on which service was first provided.

(d) For failure either to apply for all necessary permits and approvals or to commence construction in accordance with this section, unless the Council approves the delay because of reasons beyond the control of the grantee, the franchise term shall be reduced four days for each day of delay.

(e) For failure to begin service to subscribers or complete construction and installation of the system as provided for in this section, or as provided for in the grantee's proposal to the City and adopted or amended in the franchise agreement, unless the Council approves the delay because of reasons beyond the control of the grantee, the franchise term shall be reduced four days for each day of delay.

(f) By acceptance of the franchise granted hereunder, the grantee agrees that, in the event of its failure to comply with any time requirements referred to in subsections (a) through (e) of this section, or as may be extended by the Council, in addition to the liquidated damages provisions specified elsewhere in this chapter, the grantee will pay to the City the sum of $1,000.00, or such other amount as set forth in the franchise agreement, per day for each and every day's delay beyond the time prescribed, plus authorized extensions therefor, for completion of any of the acts required to be done by this section.

(g) Any requests for extensions of the proposed construction deadlines proposed by a grantee, due to acts of God, acts of the public enemy, fires, floods, epidemics, quarantine restrictions, strikes, lockouts, freight embargoes, unusually severe weather, or from any other cause beyond the reasonable control of the grantee and/or its employees, agents, or contractors, must be submitted to the City Manager in writing within 14 days after the cause for such delay first occurs. Such request must specify the exact reason for the delay and the total number of extension days requested. Whenever and wherever possible, such requests for extensions of the proposed or required construction deadlines should be supported with written justification of the cause for such delay, such as newspaper articles, letters from vendors, agents, contractors, etc. Within 14 days of receipt of such a request, the City Manager will reply in writing, approving, partially approving, or denying the request.

(Code 1975, § 7A-11; Ord. No. 86-14, § 1)

(a) Any wires, cable lines, conduits, or other properties of a grantee to be constructed or installed in streets shall be so constructed or installed only at such locations and in such manner as shall be approved by the City Engineer acting in the exercise of his or her reasonable discretion within the general guidelines of CATV construction standards approved by the Council.

(b) A grantee shall utilize existing poles, conduits and other facilities whenever possible and shall not install or erect any facilities or apparatus in or on other public property, places or rights-of-way, 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, except those installed or erected upon public utility facilities then existing, without obtaining the prior written approval of the City Engineer.

(c) Notwithstanding any other provision in this chapter or any franchise granted pursuant thereto, all facilities of a grantee in any public street or in any public or private easement, and services lines to subscribers off the main lines, shall be located underground at such depths and locations as required by the City Engineer, except where a grantee uses existing poles, with permission from the owner, and as to such service lines where and so long as electric and telephone lines to the subscribers are overhead. Upon the undergrounding of the utility lines of the owner using such poles, the grantee shall concurrently (or earlier) place its facilities underground at depths and locations approved by the City Engineer at no expense to the City or to the customer. All underground wires or cables of a grantee shall be placed in conduits.

(d) Amplifiers in a grantee's underground transmission and distribution lines shall be in appropriate low profile housing, and at locations as approved by the City Engineer.

(e) All transmission lines, equipment and structures shall be so installed and located as to cause minimum interference with the rights and reasonable convenience of property owners and at all times shall be kept and maintained in a safe, adequate and substantial condition and in good order and repair. A grantee shall, at all times, employ ordinary care and shall install and maintain in use, commonly accepted methods and devices for preventing failure and accidents which are likely to cause damage, injuries or nuisances to the public. Suitable barricades, flags, lights, flares or other devices shall be used at such times and places as are reasonably required for the safety of all members of the public. Any poles or other fixtures placed in the public right-of-way by a grantee shall be placed in such a manner so as not to interfere with the usual travel on such public right-of-way.

(f) The grantee shall use boring augur techniques in lieu of transverse cuts for crossing arterial streets and driveways. Exceptions may be authorized by the City Engineer when conditions such as street contours, utilities or other factors make boring techniques impractical. If any paved surface is disturbed during the construction or installation of CATV facilities, the surface shall be replaced by the grantee in conformance with the City's specifications.

(g) The grantee shall not place any transmission lines or fixtures where the same will interfere with any gas, electric or telephone fixtures, water hydrant or main, and all such transmission lines or fixtures placed in any street shall be placed within the areas specified by the City Engineer, and those placed in alleys shall be placed close to the line of the lot abutting on such alley, and then in such manner as not to interfere with the usual travel on such streets, alleys and public ways.

(h) The grantee shall make every reasonable effort during the course of construction to maintain all streets, driveways, sidewalks and other paved surfaces in a usable condition.

(i) The grantee shall perform all backfilling and return property to original condition within 24 hours except by specified written approval of the City Engineer.

(j) All landscaped public and private areas shall be returned to a condition as existed prior to the construction work, and the grantee shall maintain such area until, in the opinion of the City Engineer, the plant materials are reestablished.

(k) The grantee shall not remove any tree or trim any portion, either above, at, or below ground level, or any tree within any public place without the prior consent of the City. The City shall have the right to do the work with the actual cost thereof to be paid by the grantee. If such trimming is not performed by City, the grantee shall be responsible for any and all damages to any tree as a result of trimming, or to the land surrounding any tree, whether such tree is trimmed or removed.

(l) Any grantee awarded a franchise within the City agrees to the City's acceptance and approval of any and all subcontracting firms employed by the grantee within the City. Such acceptance and approval by the City shall not be unreasonably withheld.

(m) In the event the City determines that any subcontractor employed by the grantee is performing unsatisfactory or inferior work, as determined by the City Engineer, or is the cause of numerous citizens' complaints, the City Manager shall notify the grantee in writing of such determination and the grantee shall, within 30 days of such notice, correct such problem with the subcontractor. If such problems are not corrected within 30 days, then grantee shall employ another subcontractor that meets the provisions of this subsection. If the City invokes its rights hereunder regarding any subcontractor employed by the grantee, then the grantee shall be given an extension on any construction deadlines for 30 additional days from the date of receipt of written notification of any such action by the City.

(n) The grantee shall notify the City at least ten days prior to the intention of the grantee to commence any construction in any streets. The City shall cooperate with the grantee in issuing any permits required, provided such grant and subsequent construction by the grantee shall not unduly interfere with the use of such streets and that proposed construction shall be done in accordance with the pertinent provisions of the ordinances of the City.

(Code 1975, § 7A-12; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(e))

(a) In the event that the use of any part of the CATV system is discontinued for any reason for a continuous period of 12 months, or in the event such system or property has been installed in any street or public place without complying with the requirements of the grantee's franchise or this chapter, or the franchise has been terminated, cancelled or has expired, the grantee shall promptly, upon being given 30 days' written notice, initiate removal from the streets or public places all such property of such system other than any which the City Engineer may permit to be abandoned in place. In the event of such removal, the grantee shall promptly restore the street or other area from which such property has been removed to a condition satisfactory to the City Engineer.

(b) Any such property of the grantee on public property or in the public rights-of-way remaining in place 180 days after the termination or expiration of the franchise shall be considered permanently abandoned. The City Engineer may extend such time not to exceed an additional 60 days.

(c) Any such property of the grantee to be abandoned in place shall be abandoned in such manner as the City Engineer shall prescribe. Upon permanent abandonment of the property of the grantee in place, the property shall become that of the City, and the grantee shall submit to the City Engineer an instrument in writing, to be approved by the City Attorney, transferring to the City the ownership within the provisions of any utility joint-use attachment agreements.

(Code 1975, § 7A-13; Ord. No. 86-14, § 1)

The grantee shall from time to time protect, support, dislocate, temporarily or permanently as may be required, remove or relocate, without expense to the City or any other government entity, any facilities installed, used, and maintained under the franchise if and when made necessary by any lawful change of grade, alignment, or width of any public street, including the construction of any storm drain, sewer, subway or viaduct, by the City or any other government entity, or made necessary by any other governmental entity, or made necessary by any other public improvement or alteration in, under, on, upon or about any public street or the public property, whether such public improvements or alteration is at the instance of the City or another governmental entity, and whether such improvement or alteration is for a governmental or proprietary function, or made necessary by traffic conditions, public safety, street vacation or any other public project or purpose of City or any other governmental entity. The decision of the City Engineer under this section shall be final and binding on the grantee.

(Code 1975, § 7A-14; Ord. No. 86-14, § 1)

Upon failure of the grantee to commence, pursue, or complete any work required by law or by the provisions of this chapter or by its franchise to be done in any street or other public place within the time prescribed, and to the satisfaction of the City Engineer, the City may, at its option, cause such work to be done and the grantee shall pay to the City the cost thereof in the itemized amounts reported by the City Engineer, to the grantee within ten days after receipt of such itemized report. In the alternative, at the City's option, the City may demand of grantee the estimated cost of such work as estimated by the City Engineer, and such shall be paid by grantee to the City within ten days of such demand. Upon award of any contract or contracts therefor, the grantee shall pay to the City within ten days of demand any additional amount necessary to provide for cost of such work. Upon completion of such work, the grantee shall pay to the City or the City shall refund to the grantee such sums so that the total received and retained by the City shall equal the cost of such work. The term "cost," as used in this section, includes 15 percent of other costs for the City's overhead.

(Code 1975, § 7A-15; Ord. No. 86-14, § 1)

(a) In order to secure the faithful performance of each and all of its obligations under and pursuant to the provisions of this chapter and the applicable franchise agreement, concurrently with the filing and acceptance of award of a franchise granted hereunder, the grantee shall deposit with the City Clerk cash, a negotiable certificate of deposit payable to the City, and/or a letter of credit in an aggregate amount equal to $1,000,000.00, or such other amount as may be specified in the franchise agreement. Any such certificate of deposit or letter of credit shall be in a form acceptable to the City Attorney and shall be issued by a bank or savings and loan association whose most recently issued unsecured long-term debt securities are rated not less than AA or its equivalent by Standard and Poor's Corporation or Moody's Investors Service, Inc.; provided, however, that a certificate of deposit may be issued by any bank which is a member of the Federal Deposit Insurance Corporation (FDIC) or by any savings and loan association which is a member of the Federal Savings and Loan Insurance Corporation (FSLIC) if the principal amount of such certificate does not exceed the limits of the deposit insurance provided by FDIC or FSLIC, as the case may be. Unless otherwise specified in the franchise agreement, such amount shall be maintained on deposit with the City Clerk throughout the period of construction of the system; and in the event such amount is reduced by reason of any drawing thereof by the City, the grantee shall restore the deposit to the original principal amount thereof within 30 days after such drawing.

(b) Subsequent to the completion of construction of the system to the satisfaction of the City, the aggregate amount so deposited with the City Clerk may be reduced to $100,000.00 or such other amount as may be specified in the franchise agreement. Such amount shall be maintained on deposit with the City Clerk throughout the remainder of the terms of the franchise and any renewal thereof and thereafter until the grantee shall have liquidated all of its obligations arising from its acceptance of the franchise or the renewal thereof or from its exercise of any privilege therein granted. In the event such amount is reduced by reason of any drawing thereof by the City, the grantee shall restore the deposit to the original principal amount thereof within 30 days after such drawing.

(c) In the event that the grantee fails to comply with any one or more of the provisions of this chapter or of the franchise agreement, the City shall be entitled, after five working days' written notice to the grantee prior to a withdrawal, to recover from the grantee, and may draw from the amount deposited by the grantee pursuant hereto, the following:

(1) Any amounts payable to (pursuant to the provisions of this chapter or otherwise) or expended by the City by reason of such failure of grantee;

(2) Any damages or loss suffered by the City as a result of any such failure;

(3) Interest at ten percent per year, or such other rates as may be established by resolution of the Council, from the date due as to the amount finally determined, whether liquidated or not in amount when due; and

(4) In the event of litigation, the reasonable attorney's fees, court costs and other expenses of the City, in the event the City is the prevailing party.

(Code 1975, § 7A-16; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(f))

The grantee shall, concurrently with the filing of an acceptance of award of any franchise granted under this chapter, furnish to the City and file with the City Clerk a certificate of insurance, and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a liability insurance policy in the amount and in a company approved by the City Manager, and in a form satisfactory to the City Attorney, indemnifying and saving harmless the City, its officers and employees from and against any and all claims, demands, actions, suits, and proceedings by others, against all liability to others related in any manner to the exercise or failure to exercise or the enjoyment or use of the franchise, including but not limited to any liability for damages by reason of or arising out of any failure by the grantee to secure consents from others, authorized distributors or licensees of programs to be delivered by grantee's CATV system, and against any loss, cost, expense and damages resulting therefrom, including reasonable attorney's fees, irrespective of the amount of the comprehensive liability insurance policy required hereunder.

(Code 1975, § 7A-17; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(g))

(a) No franchise granted pursuant to the provisions of this chapter shall become effective for any purpose unless and until written acceptance thereof shall have been filed with the City Clerk, and unless and until all things required in this section and section 12-17 are done and completed in the time and manner required, the Council may declare the franchise null and void.

(b) Within 20 days after the effective date of the resolution awarding a franchise, or within such extended period of time as the Council in its discretion may authorize, the grantee shall file with the City Clerk its written acceptance, in form satisfactory to the City Attorney, of the franchise, together with the security and certificate of insurance specified in this chapter and his or her agreement to be bound by and to comply with and to do all things required of him or her by the provisions of this chapter and the franchise. Such acceptance and agreement shall be acknowledged by the grantee before a notary public, and shall in form and content be satisfactory to and approved by the City Attorney.

(Code 1975, § 7A-18; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(h))

In the event any territory located outside the boundaries of the City which is covered by an existing cable system franchise or license granted by the governmental entity having jurisdiction over such territory is annexed to the City after the franchise thereof has commenced or completed construction and installation of a cable system within such territory, the rights reserved under such franchise or license to such governmental entity or to any officer thereof shall inure to the benefit of the City; and all regulatory provisions of this chapter and any rules and regulations applicable to CATV systems operating within the City, whether then in effect or subsequently adopted, shall be applicable to and binding upon the grantee. In addition, the grantee shall be obligated to pay annually to the City the percentage of gross receipts established by the governmental entity in the franchise or license which is derived from its operations within the annexed territory for three years (or until termination of the franchise if the franchise is terminated, by expiration thereof or otherwise, prior to the expiration of the period), at which time the same percentage of gross receipts required by franchises granted pursuant to this chapter will apply.

(Code 1975, § 7A-19; Ord. No. 86-14, § 1)

The grantee shall assume the following costs associated with a franchise:

(1) Costs of publication of any and all notices and ordinances relating to the franchise as such publication is required by law;

(2) Reasonable and customary costs associated with the City employing an independent consultant to assist with the development of the franchise ordinance and any negotiations required to grant or amend (at the request of the grantee) the franchise;

(3) Reasonable and customary costs of an independent engineering firm to witness the initial design, installation and proof of performance testing of the system as a verification of the grantee's adherence to the terms and conditions of the franchise;

(4) All fees related to construction of the CATV facilities, including, but not limited to, City excavation permit fees, construction inspection fees, and other City costs related to CATV installation and construction;

(5) City costs of advertising and noticing for any public hearings related to rate increases or changes in this franchise;

(6) All City administrative costs associated with the granting of the franchise, including, but not limited to, the public hearings established for community needs assessments, costs associated with the performance of a cable television advisory committee, attorney fees, and City staff time committed to the franchising process, and award and negotiation of the franchise.

(Code 1975, § 7A-20; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(i))

Services shall be offered to all City residents in accordance with the provisions of the franchise agreement.

(Code 1975, § 7A-21; Ord. No. 86-14, § 1)

(a) The CATV system shall be designed, installed, maintained and tested in accordance with the CATV system technical performance standards imposed by the Federal Communications Commission (FCC), or any other State or federal authority having jurisdiction.

(b) Thirty days prior to the last regular working day of each of the first three operating quarters of each year, the City Manager may request the grantee to submit system performance data taken within the previous seven days. Measurements for such data shall be taken at the same test points selected to satisfy subsection (c) of this section during the last annual system performance test that the data has been submitted to the City. Quarterly test data shall be limited to:

(1) Visual signal level for all channels carried;

(2) Visual signal-to-noise measurements on one active low-band and one active high-band VHF channel; and

(3) Visual hum modulation on one channel or pilot carrier.

Quarterly tests shall be performed on a requested basis. A representative of the City shall be permitted to accompany the grantee during quarterly measurement activities. The grantee shall not be permitted to make any system adjustments during quarterly measurement activities without noting such adjustments on the test data form.

(c) The grantee shall, during the last month of the fourth operating quarter of each year, perform annual CATV system performance tests. Such tests shall be in full compliance with FCC regulations and such tests shall be performed by a qualified engineer and the resultant data analyzed by a representative of the City if directed by the City Manager. All necessary test instrumentation shall be supplied by the grantee. A current certificate of calibration by an independent calibration laboratory shall be supplied for each test instrument upon request of the City Manager. All costs for instrumentation and calibration shall be borne by grantee. Measurement locations for system compliance with subsection (b) of this section, except those requirements regarding 24-hour visual signal amplitude and channel amplitude characteristics, shall include:

(1) End of each system major trunk; and

(2) End of each system trunk branch four or more trunk amplifiers deep.

Actual test locations shall be selected to measure performance of the system in the franchise area and shall be (or as closely as possible to simulate) actual subscriber locations. Measurements requiring 24-hour visual signal level and channel amplitude characteristics shall be made as required by the FCC. Measurement for system compliance with subsection (b) of this section shall be made as required by the FCC. Measurement for system compliance with subsection (b) of this section shall be made where practical on all origination equipment employed in the system. Measurement techniques shall be those suggested by the FCC. If such agreement is not reached prior to testing, the City shall prescribe acceptable methods of measurement. Concurrent with annual performance tests, the City representative may inspect all system headend facilities and outside plant for adherence to best industry installation, workmanship and safety practice.

(d) In the event that service to any subscriber is interrupted for 24 consecutive hours, the grantee shall provide a pro rata rebate of the monthly fees for each such period of 24 consecutive hours during which the interruption occurs, to all affected subscribers.

(e) In the event that the system fails to meet any technical performance standards specified in the franchise agreement for a full three-month period, the grantee shall reduce all subscribers' fees by 25 percent until all performance standards are met. The City Manager shall notify the grantee in writing during the first month of the three-month period that the system has failed to meet performance standards.

(Code 1975, § 7A-22; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(j))

(a) Pursuant to FCC rules, the following procedure shall be adhered to in the event of subscriber complaints by City residents:

(1) Each grantee shall establish procedures for receiving, acting upon, and resolving subscriber complaints to the satisfaction of the City Manager. The grantee shall furnish a notice of such procedure to each subscriber at the time of initial subscription of the system.

(2) Each grantee shall maintain a written record, or log, listing date and time of customer complaints, identifying the subscriber and determining the nature of the complaints and when and what action was taken by the grantee in response thereto; such record shall be kept at the grantee's local office, reflecting the operations to date for a period of at least three years, and shall be available for inspection during regular business hours without further notice or demand by the City Manager.

(3) In the event that a customer complaint is not resolved to the mutual satisfaction of the customer or the grantee, either the customer or the grantee, may request that the matter be presented to the City Manager for a hearing and resolution.

(4) When there have been similar complaints made or where there exists other evidence which, in the judgment of the City Manager, casts doubt on the reliability or quality of cable service, or the grantee's ability to meet the technical standards adopted in this chapter, the City Manager shall have the right and authority to compel the grantee to test, analyze, and report on the performance of that part of the system involved in the problem. Such test or tests shall be made and the reports of such test or tests shall be delivered to the City no later than 14 days after the City formally notifies the grantee. Such report shall include the following information:

a. The nature of the complaint which precipitated the special test;

b. What system component was tested;

c. The equipment used and procedures employed in such testing;

d. The names of the individuals performing and witnessing the testing;

e. The date, time and location of testing;

f. The results of such test; and

g. The method in which such complaints were resolved.

(5) Any other information pertinent to the special test shall also be recorded. The resultant report shall be submitted to the City Manager and will form the basis for resolution. In the event either the subscriber or grantee determines that the resolution was unsatisfactory, either may appeal the issue to the Council for a final and binding resolution.

(6) If, in the judgment of the City Manager and/or Council, the resultant tests indicate the service problems are preventable and within the grantee's control, the City Manager shall file such a written notice to the grantee to remedy the problem within a reasonable period agreed to by both the City and the grantee.

(b) Prior to construction of the cable system, the grantee shall notify in writing each resident in the area in which construction is to commence, and shall deliver to each resident notice of such construction either in person, by a representative of the grantee, or by mail, at least 48 hours in advance of such construction work.

(c) Each grantee will provide a method of employee/subcontractor identification acceptable to the City, for all such individuals who may make personal contact with residents of the City for the purposes of construction, marketing, or other services of the cable television system.

(d) Unless otherwise specified in the franchise agreement, each grantee shall provide services to the entire residential area of the City, including future annexations, referred to in this chapter as the "subscriber network." Any limitation on system extensions, or exclusions, shall be approved by the Council and referenced as part of the grantee's proposal, or adopted by resolution of the Council and attached thereto as additional exhibits.

(e) The grantee shall furnish the City with as-built drawings of the entire cable television system. Within 30 days of completion of construction of the system, the grantee shall file as-built drawings, and upon request, all equipment operational manuals with the City Manager. In the event any changes or modifications are made to the cable system that would alter the City's as-built plans, the grantee shall, after seeking City approval of such changes, file revised plans to reflect the changes within 30 days of completion of the changes.

(f) The grantee shall exercise its best efforts to limit any interruptions of service for the purpose of maintaining, repairing, or construction of the system to periods of minimum use. Such interruptions, insofar as possible, shall be preceded by reasonable notice to subscribers and shall occur during periods of minimum system use. Except in an emergency or other situation necessitating a more expedited or alternative notification procedure, the grantee may schedule an interruption of service for a period of more than four hours during any 24-hour period only after the City and each affected subscriber have been given 48 hours' prior notice of the proposed interruption.

(g) All notice which the City may give to a grantee or which grantee may give to the City shall be given in writing and may be given by first class mail, postage prepaid, addressed to the grantee's most recent address on file with the City, and addressed to the City at the official City hall address. Such notices, so sent by mail, shall be deemed given one business day after deposit in the United States mail if so deposited in Orange County or Los Angeles County; otherwise they will be deemed given upon receipt.

(Code 1975, § 7A-23; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(k))

(a) At all reasonable times, and upon reasonable notice, the grantee shall permit any duly authorized representative of the City to examine all property of the grantee together with any appurtenant property of the grantee situated within or without the City, and to examine and transcribe any and all maps and other records kept or maintained by the grantee or under its control which deal with the operations, affairs, transactions or property of the grantee with respect to its franchise and which reasonably relates to the enforcement and administration of this chapter or the franchise agreement. If such maps or records are not kept in the City, or upon reasonable request not made available in the City, and if the Council determines an examination thereof is necessary or appropriate, all travel and maintenance expense necessarily incurred in making such an examination shall be paid by the grantee.

(b) The grantee shall prepare and furnish to the City Manager and the Director of Finance at the time and in the form prescribed by either of the officers, such reports with respect to its operations, affairs, transactions or property, as may be reasonably necessary or appropriate to the performance of any of the rights, functions, or duties of the City or any of its officers in connection with the franchise.

(c) The grantee shall at all times make and keep in the City full and complete plans and records showing the exact location of all CATV system equipment installed or in use in streets and other public places in the City.

(Code 1975, § 7A-24; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(l))

When any portion of the CATV system is to be installed on public utility poles and facilities, copies of the agreements for such joint use of poles and facilities shall be made available to the City Manager upon his or her request.

(Code 1975, § 7A-25; Ord. No. 86-14, § 1)

(a) For informational purposes, grantee shall maintain and file with the City a complete schedule of subscriber rates, fees and charges for service.

(b) If a grantee fails to provide any service request by a subscriber or programmer, the grantee shall, after adequate notification and being afforded the opportunity to provide the service, promptly refund all deposits or advance charges paid for the service in question by the subscriber or programmer.

(c) In the event that any subscriber has made an annual payment in advance, a pro rata portion of the monthly payments shall be refunded by the grantee where the subscriber terminates service because of a failure of the grantee to render the service in accordance with the standards set forth in the permit.

(d) Loss of or damage to the property of the grantee in the possession of or located on the property of any subscriber is the responsibility of the subscriber but only in amounts approved by the Council and clearly stated in the grantee subscriber agreement. Subscribers suffering a loss or damage to the property of the grantee due to acts or events which are beyond the control of the subscriber will be exempt from any loss, damage or replacement charges.

(Code 1975, § 7A-26; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(m))

(a) The grantee shall make all reasonable efforts to electrically interconnect the City CATV system with CATV systems in adjacent communities for the purposes of sharing programming and services of a local or regional nature. Such an interconnect shall be effected by coaxial cable, fiber optic cable, microwave, or other bidirectional signal transportation means as appropriate to permit programming interchange in compliance with the technical provisions hereof. At the end of every two-year period from the date of the franchise agreement, the grantee shall file a report with the City Manager showing it has contacted all franchised operators in the communities adjacent to the City for the purposes of exploring an interconnect agreement. The report shall state each contacted operator's name, City, and response, list all programming activity available to City residents via such an interconnect agreement as well as any additional information as required by the City Manager.

(b) If an adjacent operator is responsive to the grantee's inquiry, the grantee shall proceed with all details, plans and agreements necessary for implementation. The interconnect shall be fully operational within two years of such report.

(c) If an adjacent operator is not responsive to the grantee's inquiry, a letter report, stating that all reasonable attempts to gain an interconnect agreement were made but unsuccessfully, shall similarly be filed with the City.

(d) In the case of adjacent CATV systems operated by the grantee, the grantee shall have two years from acceptance of this franchise in which to proceed with all details, plans and agreements necessary for implementation. In the event that the grantee acquires existing franchises in adjacent communities, the grantee shall have two years from the date of that community's franchise award in which to proceed with all details, plans and agreements necessary for interconnection. In either case, the interconnect shall be fully operational within four years of the acceptance of the franchise agreement.

(e) By acceptance of this franchise, grantee agrees to cooperate with the City and the County of Orange to implement a County-wide interconnection plan. Such plans and the costs for implementation of the plan must be mutually agreed to by all parties prior to such inception.

(f) Revenue realized by the grantee, including any affiliate corporation indirect revenues from interconnection activity involving the City's CATV system shall be reported as gross receipts and will be subject to the current franchise fees. All affiliate corporation interconnect service agreement revenue which includes the City's CATV system will be reported and the City's interconnect indirect system revenue will be calculated from the total affiliate corporation revenue based on the pro rata share of grantee's subscribers to all interconnected systems subscribers or other amounts as approved by the Council.

(Code 1975, § 7A-27; Ord. No. 86-14, § 1)

(a) On or about the third anniversary date of the franchise agreement and each three years thereafter, the City and the grantee shall hold a system and services review session. The purposes of the review session shall be:

(1) To study technological, economic and regulatory change in cable communications; to assess cable system performance;

(2) To facilitate renewal procedures;

(3) To promote the maximum degree of flexibility in the cable system; and

(4) To maintain an advanced, modern, economically viable cable system.

(b) Topics for discussion and review at the system and services review sessions may include, but are not limited to, new developments in technology; condition and operation of equipment and facilities; compliance with this chapter and the franchise agreement; services provided to subscribers, institutions and community groups; programming; rate structure; market conditions; the financial condition of the grantee; subscriber complaints; user complaints; possible amendments to the franchise agreement; and developments in the law and regulation. Either the City or the grantee may select additional topics for discussion at any system and services review session.

(c) Sixty days prior to the scheduled system and services review, the grantee shall provide to the City the following reports:

(1) All cable system services that are being provided on an operational basis, excluding tests and demonstrations, to cities in the County of Orange with populations above 10,000 or other such levels of population or numbers of subscribers as the City may establish from time to time, that are not provided to the City;

(2) A plan for provision of such services, or a justification indicating why such services are not feasible for the franchise area;

(3) The results of an opinion survey report which identify satisfaction or dissatisfaction among subscribers with cable communication services offered by the grantee. These surveys required to make the report shall be in a format mutually approved by the City and grantee;

(4) Other reports documenting the grantee's compliance with the provisions of this chapter and/or the franchise agreement as requested by the City in writing 120 days prior to the scheduled review.

(d) The City and the grantee shall discuss new developments in technology and the desirability and feasibility of incorporating such new technological developments into the cable system. Technical factors, market conditions and economical viability shall be considered. The City and the grantee shall equally share the costs of any independent studies conducted by the mutual agreement of the parties. Either the City or the grantee may conduct its own studies at its own expense.

(e) At the conclusion of such system and services review session, the City shall issue a report summarizing the discussions and setting forth its findings. The grantee shall submit to the City a plan and schedule for the implementation of any improvements mutually agreed by the City and the grantee. After mutual agreement to such plan and schedule by the City and the grantee, the franchise agreement shall be amended to incorporate the plan and schedule for improvement.

(Code 1975, § 7A-28; Ord. No. 86-14, § 1)

(a) When not otherwise prescribed in this chapter, all matters herein required to be filed with the City shall be filed with the City Clerk.

(b) A grantee shall have no financial interest, directly or indirectly, in any TV or radio sales or repair business, nor shall a grantee or any of such persons accept or receive referral fees or gratuities from any such sales or repair business. Any violation of this subsection, unknown to the grantee, by an employee of a grantee who is not an officer, shall not constitute a breach of this subsection unless the grantee fails to take disciplinary action against any such person upon discovery thereof.

(c) Within 180 days following award of franchise or prior to the start of system construction, the grantee will establish and maintain a local business office within 20 miles of the City for the purposes of conducting its local activities. The grantee will also maintain a 24-hour toll-free answering service for service-related problem calls, as well as separate toll-free telephone numbers for the system manager, the sales/marketing department, and service department. A minimum of three lines (which may serve other franchises held by the grantee) shall be maintained for service, and in the event the City determines through subscriber complaints that those are insufficient to meet current demands, grantee agrees to add such additional lines as may be deemed necessary by the City Manager to provide prompt, efficient response to subscriber inquiries. All such telephone numbers indicated in this subsection shall be listed in directories of the telephone company serving the City, and be so operated that complaints and requests for repairs or adjustments may be received at any time, day or night, seven days a week. All complaints shall be acknowledged within 24 hours of receipt.

(Code 1975, § 7A-29; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(n))

(a) From and after the effective date of the ordinance from which this chapter is derived, it is unlawful for any person to establish, operate or to carry on the business of distributing to any persons in this City any television signals or radio signals by means of a CATV system unless a franchise thereafter has first been obtained pursuant to the provisions of this chapter, and unless such franchise is in full force and effect.

(b) From and after the effective date of the ordinance from which this chapter is derived, it is 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 an adopted general plan of arterial highways or on any tentative subdivision may approved by the City, and equipment or facilities for distributing any television signals or radio signals through a CATV 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 is unlawful for any person, firm or corporation to make any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a franchised CATV system within this City for the purpose of enabling himself/herself or others to receive any television signal, radio signal, picture, program or sound, without payment to the owner of the system.

(d) It is unlawful for any person, without the consent of the owner, to willfully tamper with, remove or injure any cables, wires or equipment used for distribution of television signals, radio signals, pictures, programs or sound.

(Code 1975, § 7A-31; Ord. No. 86-14, § 1; Ord. No. 88-02, § 1(o))

(a) No person shall violate the terms and provisions of the Cable Television and Video Provider Customer Service and Information Act, Government Code § 53054 et seq. All grantees and any cable television and video provider within the City shall comply with all of the terms and provisions of said Act. In the event of the failure of any grantee or cable television operator or video provider to distribute the annual notice required by Government Code § 53055.1, the City Manager shall give written notice thereof to the operator or provider to comply within 60 days, and upon failure of the operator or provider to so comply, a penalty in the sum of $500.00 for each year in which the notice is not distributed shall be imposed by the City Manager. The penalties shall be due and owing immediately upon notice of its disposition and, in the case of a grantee of the City, may be collected at the same time franchise fees are collected. Nonpayment of the penalty shall be grounds for termination of the franchise.

(b) The annual notice as used herein, and as required by said Act, shall be given at least 60 days after the effective date of the ordinance enacting this section and, thereafter, on or about January 1 of each year. The notice given to the City shall be delivered to the City Manager and shall include a verbatim copy of the customer service standards established by each cable television operator or video provider within the City.

(Code 1975, § 7A-32; Ord. No. 94-02, § 2)

No person shall violate the terms and provisions of the Video Customer Service Act, Government Code § 53088 et seq. In the event any person should claim that a video provider, as defined in Section 53088.1 of said Act, is not complying with the terms and provisions of said Act, or any person should have a dispute with the video provider under the provisions of said Act, written notice thereof may be filed with the City Clerk.

(1) Any person having a dispute with a video provider or having a complaint that the video provider is not complying with the terms and provisions of said Act shall reduce the complaint or dispute in writing before the City Clerk is required to act thereon. Upon receipt of the written notice, the City Clerk shall, within ten days, make a tentative determination of whether the matter set forth in the notice is within the terms and provisions of said Act.

(2) If the City Clerk should determine that the matter set forth in the notice is not within the terms and provisions of said Act within ten days, the City Clerk shall return the written notice to the person providing the same with a written explanation of why the same is not covered under said Act.

(3) If the City Clerk determines that the notice appears to be under the terms and provisions of said Act, he or she shall give the video provider written notice of any alleged material breaches of the consumer service standards of said Act and allow the video provider at least 30 days from receipt of the notice to remedy the specified breach.

(4) If, in the opinion of the City Manager, or his or her duly authorized representative, the breach is material and not remedied within 30 days, the City Manager or representative shall give the video operator a ten-day written notice of the penalties assessed for the breach as provided in Government Code § 53088.2(r).

(5) Pursuant to Government Code § 53088.2(r), the City Manager, or his or her authorized representative, is authorized to impose the penalties therein set forth. The penalties shall not exceed the amounts therein set forth and shall be assessed in accordance with the terms and provisions of Government Code § 53088.2. In the event any grantee should fail to pay the penalty when assessed, on written notice to the grantee, the same may be grounds for the revocation of the franchise. However, any monetary penalty assessed under the provisions of this section, shall be reduced dollar for dollar to the extent any liquidated damages or penalty provision of the franchise documents imposes a monetary obligation upon the video provider for customer service failures, and no other monetary damages may be imposed in such a case.

(6) Any person directly affected by any ruling or determination of the City Clerk or the City Manager or his or her representative may, by written notice filed within ten days of receipt of written notice of the decision complained of, appeal the decision to the City Council. The City Clerk shall thereafter schedule a public hearing on the appeal before the City Council within 60 days of the receipt of the appeal.

(Code 1975, § 7A-33; Ord. No. 94-02, § 3)

State Law reference— Video Customer Service Act, Government Code § 53088.1 et seq.

In addition to the provisions of the franchise documents pertaining to consumer protection incorporated herein, the following consumer protection standards are adopted and, where inconsistent with the franchise documents, shall govern:

(1) The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning:

Company means the grantee of the City.

Customer service representative means the representative of said company.

Consumer or customer means that person to whom company provides CATV services within the City.

Systems means the cable television system of the company.

(2) Each grantee of the City shall comply with the following consumer standards:

a. Require that knowledgeable, qualified company representatives will be available to respond to customer's or PEG channel programmer's telephone inquiries Monday through Friday from 8:00 a.m. to 6:30 p.m. and on Saturday from 9:00 a.m. to 1:00 p.m. Holidays are excluded. Company's customer service center at the company's main place of business shall also be open during these hours;

b. Telephone answering time by a customer service representative, including wait time and the time required to transfer the call, shall not exceed 30 seconds. The number of routine rings shall be limited to four or fewer. This standard shall be met no less than 90 percent of the time measured on a quarterly basis and in accordance to a methodology proposed by company and approved by City;

c. Each of the following standards will be met no less than 90 percent of the time measured on a quarterly basis in accordance to methodology proposed by company and approved by City:

1. Standard installations will be performed within seven business days after an order has been placed. Standard installations are up to 175 feet from the existing distribution system;

2. Excluding those situations reasonably beyond the control of the cable operator, the company will respond to service interruptions, defined as service area outages, promptly and in no event later than three hours if reported during office hours or within 12 hours if reported after office hours. Other service problems will be responded to by the close of business on the next working day of the company;

3. The in-home appointment window alternatives for installations and service calls, including converter or remote control replacement, will be:

(i) Morning;

(ii) Afternoon; or

(iii) All day during normal business hours.

The customer may choose the appointment window most convenient for them. The company shall attempt to respond on same-day basis to service calls for converter and remote repair if the call is received by 3:00 p.m.;

d. Company billing statements shall be clear, concise and understandable. The company shall consult with City on any changes to company's statement and will consider City suggestions for modifications;

e. In 90 percent of cases, refund checks will be issued within 30 days, but, in no event, later than 45 days following the resolution of the request and the return of the equipment supplied by company if service is terminated;

f. Customers will be notified a minimum of 30 days in advance of any rate or channel realignment change, as provided in Government Code § 53088.2(h);

g. Company shall provide City upon request with a quarterly report on the number of service interruptions longer than 30 minutes (on subscriber and institutional networks); service requests, complaints and service calls; their breakdown and resolution and comparison on a year-to-date and previous quarter/last-year basis. The report shall be in a format proposed by company and approved by the City;

h. Customers and local PEG channel programmers shall be afforded access to company's management structure including the customer service manager and general manager. System management staff will respond to PEG channel programmers and customer complaints or inquiries within one working day of the initial request. Customers will, at least annually, be informed of this option via written notice;

i. Company shall file all general customer communications with the City. Company's filing with City shall be at least concurrent with its initial distribution to customers. General customer communications include, but are not limited to, marketing materials, rate increase correspondence, marketing promotions and service contract door knob hangers;

j. Company will prepare and submit to the City a policy with respect of procedures for access to subscriber's property;

k. If the company personnel do not arrive for installation or service calls within a designated four-hour time frame agreed to by the consumer, the consumer may request and is entitled to receive a $10.00 credit. If the company fails to provide such credit, and the request was made by the consumer within 60 days of the missed appointment, the City may direct the company to issue a $20.00 credit;

l. If the company does not mail a check for a refund (including applicable interest) to any consumer disconnecting service with an outstanding credit within 45 days of the date it is ended, and the consumer has returned all company-owned equipment, the consumer may request and is entitled to receive a $10.00 payment. In addition to the initial refund (and applicable interest) due, if the company fails to provide the $10.00 payment and the request was made by the consumer within 60 days after failure to receive the refund, the City may direct the company to provide a $20.00 payment as well as any outstanding refund (and applicable interest) due;

m. If the company cannot perform standard installations within seven calendar days of request by a consumer, the consumer may request and is entitled to receive a $10.00 credit. If the company fails to provide the $10.00 credit and the request was made by the consumer within 60 days of the installation request, the City may direct the company to issue a $20.00 credit;

n. The company shall provide an automatic credit to all consumers where there is an outage of all channels for a period of 24 consecutive hours or more which affects the entire franchise area, regardless of the cause of the outage. The credit for such an outage shall equal, at a minimum, the value of 1/30 of each customer's monthly bill for the first 24-consecutive-hour period and prorated for each additional four-hour period or portion thereof that the outage continues. The company shall provide an automatic credit to all affected consumers when there is an outage of any premium service for a period of 24 consecutive hours or more which affects the entire franchise area, regardless of the cause of the outage. The credit shall equal, at a minimum, the value of 1/30 of each consumer's monthly bill for the first 24-consecutive-hour period and prorated for each additional four-hour period or portion thereof that the outage continues;

o. Upon request of the consumer, the company shall provide a credit to a consumer whenever an outage or outages of one or more hours in a 24-hour period has affected any of the nonpremium channels received by a consumer as part of their cable television service. The credit shall equal the value of 1/30 of each consumer's monthly bill for the outages of four hours or greater duration occurring in a 24-hour period. In the event that a premium channel is affected by the outage, the credit shall equal the value of 1/30 of the consumer's monthly premium rate for each outage of four hours or greater duration occurring in a 24-hour period;

p. During hours when phones are staffed, consumer calls to the company shall receive a busy signal no more than three percent of the time or less;

q. Consumers will be given at least 30 days' notice of any rate change;

r. Consumers will be given at least 30 days' notice of any scrambling of channels or the addition or deletion of channels that are within the company's control. However, descrambling for the purposes of "previewing" a particular channel or channels is not subject to such notice;

s. The company shall offer consumers the option to receive an A/B switch at the time of initial cable service installation for no additional installation cost, and shall provide consumers with written information as to how to use such a switch. The company may charge a reasonable price for such switch. Upon consumer request, the company shall provide an A/B switch after the initial installation of cable service. If the consumer requests installation of such a switch (to receive broadcast television without cable hookup), the company may charge reasonable fees for such installation and equipment;

t. If, in the opinion of the City Manager, there has been a material violation of the terms and provisions of this section which has not been remedied despite notices to do so or the assessment of fees and fines, a written notice may be given to the company setting forth in detail the nature of the violation and proceedings commenced as provided in the franchise documents for the revocation of the franchise.

(Code 1975, § 7A-34; Ord. No. 94-02, § 4)

Sections 12-1 through 12-33, shall apply to any cable system franchise in force prior to the effective date of the ordinance from which this article is derived.

(Code 1975, § 7A-35; Ord. No. 2006-02)