Article V — REPORTS

On or before April thirtieth of each year during the term of a franchise agreement, and within thirty (30) days following expiration or termination of the franchise, all franchisees shall submit a written report to the Town Manager, in a form reasonably satisfactory to the Town Manager, which shall include the following information regarding the previous calendar year:

(1)

A summary of activities in the development of the system, including, but not limited to, services begun or discontinued, total number of subscribers, homes passed, subscribers added or discontinued and institutional network development and user participation, all in accordance with the provisions of this chapter and the franchise agreement.

(2)

A list of all service-related complaints received and system downtime experienced during the reporting period. All such submitted data shall include service request disposition and response time. For the purpose of this provision, certified copies of the complaint log book reflecting all such incidents will be required. Such report shall include a summary by category of complaints.

(3)

A financial statement verified by an officer of grantee showing by each category the gross annual receipts of grantee for the prior calendar year applicable to its business conducted pursuant to the franchise. Such financial statement shall be in sufficient detail to enable the Town Manager to determine the accuracy of the franchise fee paid by grantee. If a grantee is a publicly held company or shall otherwise prepare for public distribution certified annual financial statements, a copy of such certified financial statement shall be provided to the Town with the general financial statement. Such financial statement will include certification by an independent, duly licensed, California certified public accountant that franchise payments are based on all revenues collected, as defined within the franchise area in section 7.10.020.

(4)

A current statement of construction costs by category.

(5)

A copy of grantee's annual report, if any, for the most recent period for which it has been prepared.

(6)

A full schedule of all subscriber and user rates, and all fees and charges for all cable services provided.

(7)

A report on any system expansions having occurred during the preceding calendar year and, if the franchise agreement so requires, a report as to the status and timeliness of any improvements required by the franchise agreement to be made by grantee and any other reports required by the franchise agreement.

(8)

A full schedule of all subscriber and user rates, advertising rates, leasing rates, fees and charges for all cable services provided under the franchise agreement.

(9)

The reports submitted pursuant to this section shall be available for public inspection in the office of the Town Clerk during Town business hours.

(10)

Franchisee shall file simultaneously with the Town a copy of any document franchisee files with the FCC or any other State or Federal regulatory agency having jurisdiction over cable television and relating to the franchise area and any document filed with the Securities and Exchange Commission required in connection with the sale, transfer or merger of franchisee, its stock or assets, if it relates to the franchise area.

(11)

To the extent that the Town shall in its reasonable judgment determine that it does not have accurate information to assess whether or not the franchise fee has been computed correctly or to determine whether performance or engineering requirements of a franchise under this chapter or a franchise agreement have been complied with, the Town may request such information from franchisee as shall be reasonably necessary to make such determination. All books and records of franchisee with respect to franchisee's costs of operating and its determination of the franchise fee payable pursuant to this chapter shall be kept in accordance with generally accepted accounting principles.

(12)

The reports required to be filed by this section shall be examined by the Town Manager for compliance with the requirements of the franchise agreement in this chapter. The Town Manager shall inform the franchisee in writing within a reasonable time after receipt of the reports required to be submitted in accordance with this section if the Town Manager determines same are not in compliance with those requirements. A franchisee shall thereafter, within a reasonable time of receipt of such notification from the Town Manager, submit amended reports to the Town Manager.

(13)

A franchisee shall be responsible for all subscriber and user complaint resolution and shall maintain a written record or log listing the date and time of customer complaints, describing the nature of the complaints and when and what actions were taken by the franchisee in response thereto. The log shall be kept at the franchisee's local office, reflecting the operations to date for a period of at least three (3) years, and shall be available for inspection by the Town and the general public during regular business hours at the franchisee's local office.

(14)

An annual survey of subscribers which determines their programming preferences and comments on the quality of the signal and service.

(Code 1968, § 9.60.010; Ord. No. 1772, §§ 7, 8, 12-5-88; Ord. No. 1809, § VI, 1-2-90)

Subject to any limitations in the franchisee agreement, grantee shall, simultaneously with the annual report required by section 7.50.010, submit to the grantor an annual plant survey report which shall be a complete survey of the grantee's plant and a full report thereon. Such report shall include, but not be limited to, a

description and as-built maps of the portions of the franchise area that have been cabled and have all services available, and an appropriate engineering evaluation including suitable electronic measurements conducted in conformity with such requirements, including supervision, as the grantor may prescribe. The report shall be in sufficient detail to enable the grantor to ascertain that the service requirements and technical standards of the FCC and/or the franchise are achieved and maintained.

(Code 1968, § 9.60.015)

(a)

An accurate and comprehensive file shall be kept by the grantee of any and all service calls regarding the cable system. A procedure shall be established by the grantee by the time of installation of the cable system to remedy service calls quickly and reasonably to the satisfaction of the grantor. Complete records of grantee's actions in response to all service calls shall be kept. These files and records shall remain open to the public during normal business hours. Service calls shall be separated into the following categories: system problem, set problem, and no problem. A graph of this data for at least the preceding three (3) years shall be supplied. Reports under this section may be combined with those required under section 7.50.010.

(b)

A summary of service calls, identifying the number and nature of service calls and their disposition, in a form approved by the grantor, shall be completed for each calendar quarter and submitted to the grantor by the tenth day of the succeeding calendar quarter.

(c)

A summary of outages, identifying the length of the outage and approximate percentage of the system affected, in a form approved by the grantor, shall be completed for each calendar quarter and submitted to the grantor by the tenth day of the succeeding calendar quarter.

(d)

A biennial opinion survey report which identifies satisfaction or dissatisfaction among subscribers with cable communications services offered by the grantee shall be submitted to the grantor no later than two (2) months after the anniversary date of the effective date of a franchise. The surveys required to make such report shall be conducted in conformity with standard survey research techniques.

(Code 1968, § 9.60.025)

The grantee shall comply with all Federal and State requirements regarding the privacy of subscribers and shall take all steps reasonably necessary to assure that such privacy rights of individuals have been protected.

(Code 1968, § 9.60.030)

The grantee shall allow the grantor to make inspections of any of the grantee's facilities and equipment at any time upon one (1) days' prior notice, or, in case of emergency, upon demand without prior notice, to allow grantee to verify the accuracy of any submitted report.

(Code 1968, § 9.60.040)

Unless otherwise provided in the franchise, the grantee shall maintain an office within the franchise area and shall keep complete and accurate books and records. The grantor shall have the right to inspect at any time during normal business hours all books, records, maps, plans, financial statements, service complaint logs, performance test results and other like materials of the grantee which are relative to the operation of the cable system.

(Code 1968, § 9.60.045)

All reports required under this article, except as otherwise herein provided, shall be available for public inspection in the Town Clerk's office during normal business hours.

(Code 1968, § 9.60.050)

The refusal, failure, or neglect of the grantee to file any of the reports required under this article shall be deemed a material breach of the franchise, and shall subject the grantee to all penalties and remedies, legal or equitable, which are available to the grantor under the franchise or otherwise.

(Code 1968, § 9.60.055)

Any materially false or misleading statement or representation made knowingly by the grantee in any report required under the franchise shall be deemed a material breach of the franchise and shall subject the grantee to all penalties and remedies, legal or equitable, which are available to the grantor under the franchise or otherwise.

(Code 1968, § 9.60.060)

All reports and records required under this article or any other section shall be furnished at the sole expense of the grantee. Grantee shall also bear any reasonable expense incurred by grantor in verifying the completeness and accuracy of any reports, as well as any correction undertaken as a result thereof.

(Code 1968, § 9.60.065)