Chapter 112 — CABLE TELEVISION SYSTEMS

The city finds that the development of cable television and communications systems has the potential of having great benefit and impact upon the people of the city. Because of the complex and rapidly changing technology associated with cable television, the city further finds that the public convenience, safety and general welfare can best be served by establishing regulatory powers which should be vested in the city or such persons as the city shall designate. It is the intent of this chapter and subsequent amendments to provide for and specify the means to attain the best possible public interest and public purpose in such matters, and any franchise issued pursuant to this chapter shall be deemed to include this finding as an integral part thereof.

('65 Code, § 7-8.101) (Ord. 244-C.S., passed - - )

This chapter shall be known may be cited as the Cable Television Franchise Law of the City of San Gabriel. ('65 Code, § 7-8.201) (Ord. 244-C.S., passed - - )

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. ADDITIONAL SUBSCRIBER SERVICE. Any service not included in basic subscriber television service, basic subscriber radio service or institutional service, as defined in this section, including, but not limited to, pay cable, interactive services, cable modem services, and cable telephone services. ('65 Code, § 7-8.301) AGENCY SUBSCRIBER. A subscriber who receives a service in a government or public agency, school or nonprofit corporation. ('65 Code, § 7-8.302) BASIC SUBSCRIBER RADIO SERVICE. The provision to all subscribers of such audio services as the retransmission of broadcast FM radio signals, the retransmission of shortwave, weather, news, time and other similar audio broadcast channels, and the transmission of cablecast radio signals. ('65 Code, § 7-8.303) BASIC SUBSCRIBER TELEVISION SERVICE.

profit corporation. ('65 Code, § 7-8.302) BASIC SUBSCRIBER RADIO SERVICE. The provision to all subscribers of such audio services as the retransmission of broadcast FM radio signals, the retransmission of shortwave, weather, news, time and other similar audio broadcast channels, and the transmission of cablecast radio signals. ('65 Code, § 7-8.303) BASIC SUBSCRIBER TELEVISION SERVICE.

(1) The total of all of the following: (a) The transmission to all subscribers of all broadcast television channel signals authorized or permitted by the FCC and provided for in a franchise agreement; (b) The provision to all subscribers of non-broadcast open channel signals originating from sources outside the cable communications system; (c) The cablecasting to all subscribers of local origination programming and public, educational, and government access programming; and (d) The transmission to all subscribers of all other cablecasting open-channel signals. (2) BASIC SUBSCRIBER TELEVISION SERVICE may be offered to subscribers in one or more tiers or combinations of programs. ('65 Code, § 7-8.304) BROADCAST SIGNAL. A television or radio signal which is transmitted over the air to a wide geographic audience and is received by a cable communications system off-theair or by microwave. ('65 Code, § 7-8.305) CABLE COMMUNICATIONS SYSTEM , CABLE TELEVISION SYSTEM , CATV SYSTEM , BROADBAND COMMUNICATIONS NETWORK or SYSTEM. A system of antennas, cables, amplifiers, towers, microwave links, cablecasting studios and other conductors, converters, equipment or facilities designed and constructed for the primary purpose of distributing video programming to home subscribers and the secondary purpose of producing, receiving, amplifying, storing, processing or distributing audio, video, digital or other forms of electronic or electrical signals. ('65 Code, § 7-8.306) CABLECAST SIGNAL. A non-broadcast signal which originates within the facilities of the cable communications system. ('65 Code, § 7-8.307) CABLE MILE. A linear mile of strand-bearing cable as measured on the street or easement from pole to pole or pedestal to pedestal. ('65 Code, § 7-8.308) CHANNEL. A radio frequency band capable of carrying combinations of video, audio, digital or other non-video signal, including a digitally compressed channel. ('65 Code, § 7-8.309) CLASS IV CHANNEL. A signaling path provided by a cable communications system to transmit signals of any type from a subscriber terminal to another point in the cable television system. ('65 Code, § 7-8.310) CLOSED-CIRCUIT or INSTITUTIONAL SERVICE. Such video, audio, data and other services provided to institutional users on an individual application, private channel basis. Such services may include, but shall not be limited to, two-way video, audio or digital signals among institutions, or from institutions, to residential subscribers. ('65 Code, § 7-8.311) COMMENCE CONSTRUCTION. That time and date when the construction of the cable communications system is considered to have commenced, which shall be when the first strand of cable is connected to a utility pole, or the first undergrounding of cables is initiated, after preliminary engineering (strand mapping) and after all the necessary permits and authorizations have been obtained. ('65 Code, § 7-8.312) COMMENCE OPERATION. That time and date when the operation of the cable communications system is considered to have commenced which shall be when sufficient distribution facilities have been installed so as to permit the offering of full service to at least 10% of the dwelling units located within the service area. ('65 Code, § 7-8.313) COMMERCIAL SUBSCRIBER. A subscriber who receives a service in a place of business where the service may be utilized in connection with a business, trade or profession. ('65 Code, § 7-8.314) CONVERTER. An electronic device which converts signal carriers from one form to another. ('65 Code, § 7-8.315) COUNCIL. The governing body of the city. ('65 Code, § 7-8.316) EDUCATIONAL CHANNEL or EDUCATIONAL ACCESS CHANNEL. Any channel where educational institutions are the primary designated programmers. ('65 Code, § 7- 8.317) FCC. The Federal Communications Commission and any legally appointed or elected successor. ('65 Code, § 7-8.318) FRANCHISE. The nonexclusive right granted pursuant to this chapter to construct and operate a cable communications system along the public ways within all or a specified area in the city. Any such authorization, in whatever form granted, shall not mean and include any license or permit required for the privilege of transacting and carrying on a business within the city as required by other laws of the city. ('65 Code, § 7-8.319)

granted pursuant to this chapter to construct and operate a cable communications system along the public ways within all or a specified area in the city. Any such authorization, in whatever form granted, shall not mean and include any license or permit required for the privilege of transacting and carrying on a business within the city as required by other laws of the city. ('65 Code, § 7-8.319)

FRANCHISE AGREEMENT. A franchise award ordinance, accepted on the part of the grantee, containing the specific provisions of the franchise granted, including referenced specifications, franchise applications, and other related material. The franchise agreement may modify the terms of this chapter by appropriate amendment. ('65 Code, § 7-8.320) FRANCHISE FEE. The fee paid by the grantee to the grantor in consideration of the use of the public streets and rights-of-way. ('65 Code, § 7-8.321)

specific provisions of the franchise granted, including referenced specifications, franchise applications, and other related material. The franchise agreement may modify the terms of this chapter by appropriate amendment. ('65 Code, § 7-8.320) FRANCHISE FEE. The fee paid by the grantee to the grantor in consideration of the use of the public streets and rights-of-way. ('65 Code, § 7-8.321)

GOVERNMENT CHANNEL or GOVERNMENT ACCESS CHANNEL. Any channel where local government agencies are the primary designated programmers. ('65 Code, § 7-8.322) GRANTEE. Any person receiving a franchise pursuant to this chapter and under the granting franchise ordinance and shall include the lawful successor, transferee or assignee of the grantee. ('65 Code, § 7-8.323) GRANTOR. The city as represented by the Council acting within the scope of its jurisdiction. ('65 Code, § 7-8.324) GROSS ANNUAL REVENUE. All cash or other consideration received directly or indirectly by a grantee and its affiliates, subsidiaries, parent, and any person in which a grantee has a financial interest, or from any source whatsoever, arising from or attributable to the sale or exchange of cable services by a grantee within the city or in any way derived from the operation of its system, including, but not limited to, "Basic Subscriber Television Service," "Basic Subscriber Radio Service," "Institutional Service," "Additional Subscriber Service," leased channel fees, converter rentals or sales, revenue from cable Internet services, cable modem rentals or sales, revenue from telephone and other services which may be provided over the Cable Communications System, studio rental, and advertising revenues. Such gross revenues shall not be reduced for any purpose other than as provided in this chapter and shall be the basis for computing the fee imposed pursuant to § 112.028 of this chapter. Such gross revenue shall not include converter deposits, modem deposits, or refunds to subscribers by the grantee, or items excluded by Federal Law. INITIAL SERVICE AREA. The area of the city which will receive service initially as set forth in the franchise agreement. ('65 Code, § 7-8.326) INSTALLATION. The connection of the system from the feeder cable to the subscriber's terminal and the provision of service. ('65 Code, § 7-8.327) LEASED CHANNEL or LEASED ACCESS CHANNEL. Any channel available for lease and programming by persons or entities other than the grantee, including those portions of other access channels not in use by their designated programmers. ('65 Code, § 7-8.328) LOCAL ORIGINATION CHANNEL. Any channel where the grantee is the primary designated programmer and provides video programs to subscribers. ('65 Code, § 7-8.329) MONITORING. Observing a communication signal, or the absence of a signal, where the observer is neither the subscriber nor the programmer, whether the signal is observed by visual or electronic means, for any purpose whatsoever; provided, however, MONITORING shall not include system-wide non-individually addressed sweeps of the system for the purposes of verifying integrity, controlling return path transmissions, or billing for pay services. ('65 Code, § 7-8.330) NON-BROADCAST SIGNAL. A signal which is transmitted by a cable communications system and which is not involved in an over-the-air broadcast transmission path. ('65 Code, § 7-8.331) OPEN CHANNEL. Any channel which can be received by all subscribers without the necessity for special equipment. ('65 Code, § 7-8.332) PAY CABLE or PAY TELEVISION. The delivery to subscribers, over the cable communications system, of television signals for a fee or charge to subscribers over and above the charge for basic subscriber service on a per program, per channel or other subscription basis. ('65 Code, § PENETRATION. The result expressed in percentage obtained by dividing the total number of potential subscribers in the franchise area into the number of subscribers receiving service. ('65 Code, § 7-8.334) PERSON. An individual, partnership, association, organization or corporation or any lawful successor, transferee or assignee of such individual, partnership, association, organization or corporation. ('65 Code, § 7-8.335) PRIVATE CHANNEL or CLOSED-CIRCUIT CHANNEL. Any channel which is available only to subscribers who are provided with special converter or terminal equipment to receive signals on such channel. ('65 Code, § 7-8.336) PROGRAMMER. A person or entity who or which produces or otherwise provides program material or information for transmission by video, audio, digital or other signals, either live or from recorded tapes or other storage media, to subscribers by means of the cable communications system. ('65 Code, § 7-8.337) PUBLIC ACCESS CHANNEL or COMMUNITY ACCESS CHANNEL. Any channel where any member of the general public or any noncommercial organization may be a programmer, without charge, on a first-come, first-served, nondiscriminatory basis in accordance with FCC regulations. ('65 Code, § 7-8.338) REASONABLE NOTICE. A written notice addressed to the grantee at its principal office or at such other office as the grantee has designated to the grantor as the address to which notice should be transmitted to the grantee, which notice shall be certified and postmarked not less than four days prior to that day on which the party giving such notice shall commence any action which requires the giving of notice. In computing such four days, Saturdays, Sundays and holidays recognized by the grantor shall be excluded. ('65 Code, § 7-8.339) REASONABLE ORDER. A written order not excessive or extreme as to the costs or time to comply, governed by sound thinking. ('65 Code, § 7-8.340) RESIDENT. Any person residing in the city as otherwise defined by applicable laws. ('65 Code, § 7-8.341) RESIDENTIAL SUBSCRIBER. A subscriber who receives service in an individual dwelling unit where the service is not to be utilized in connection with a business, trade or profession. ('65 Code, § 7-8.342) SALE. Any sale, exchange, barter or offer for sale. ('65 Code, § 7-8.343) SCHOOL. Any educational institution, including primary and secondary schools and colleges and universities, both public and private.

*_ A subscriber who receives service in an individual dwelling unit where the service is not to be utilized in connection with a business, trade or profession. ('65 Code, § 7-8.342) SALE. Any sale, exchange, barter or offer for sale. ('65 Code, § 7-8.343) SCHOOL. Any educational institution, including primary and secondary schools and colleges and universities, both public and private.

*_ A subscriber who receives service in an individual dwelling unit where the service is not to be utilized in connection with a business, trade or profession. ('65 Code, § 7-8.342) SALE. Any sale, exchange, barter or offer for sale. ('65 Code, § 7-8.343) SCHOOL. Any educational institution, including primary and secondary schools and colleges and universities, both public and private. ('65 Code, § 7-8.344) SERVICE AREA. The entire geographic area within the franchise territory. ('65 Code, § 7-8.346) STREET. Means and includes each of the following which have been dedicated to the public or are hereafter dedicated to the public and maintained under public authority or by others and located within the city limits: streets, roadways, highways, avenues, lanes, alleys, sidewalks, easements, rights-of-way and similar public property and areas which the grantor shall permit to be included within the definition of street from time to time. ('65 Code, § 7-8.348) SUBSCRIBER. Any person, firm, corporation or other entity who or which elects to subscribe to, for any purpose, a service provided by the grantee by means of or in connection with the cable communications system. ('65 Code, § 7-8.349) SUBSTANTIALLY COMPLETED. That sufficient distribution facilities have been installed by the grantee so as to permit the offering of full network service to at least 90% of the potential subscribers in the service area. ('65 Code, § 7-8.350) TAPPING. Observing a two-way communications signal exchange, where the observer is neither of the communicating parties, whether the exchange is observed by visual or electronic means, for any purpose whatsoever. ('65 Code, § 7-8.351) (Ord. 244-C.S., passed - - ; Am. Ord. 494-C.S., passed 1-19-99)

(A) Notwithstanding any other provision of this chapter or the franchise to the contrary, the grantee at all times shall comply with all laws and regulations of the state and federal government or any administrative agencies thereof; provided, however, if any such state or federal law or regulation shall require the grantee to perform any service, or shall permit the grantee to perform any service, or shall prohibit the grantor from enforcing provisions of this chapter or the franchise or of any law or regulation, or shall prohibit the grantee from performing any service in conflict with the terms of the franchise or of any law or regulation of the grantor, then, as soon as possible following knowledge thereof, the grantee shall notify the grantor of the point of conflict believed to exist between such regulation or law and the laws or regulations of the grantor or the franchise.

(B) If the grantor determines that a material provision of this chapter is affected by any subsequent action of the state or federal government, the grantor shall have the right to modify and/or interpret any of the provisions of this chapter to such reasonable extent as may be necessary to carry out the full intent and purpose of this chapter consistent with said regulation or law.

('65 Code, § 7-8.1401) (Ord. 244-C.S., passed - - ; Am. Ord. 494-C.S., passed 1-19-99) Penalty, see § 112.999

(A) Separability of non-material provisions. If any provision of this chapter or any related agreement is held by any court or by any federal, state or county agency of competent jurisdiction to be invalid as conflicting with any federal, state or county law, rule or regulation now or hereafter in effect, or is held by such court or agency to be modified in any way in order to conform to the requirements of any such law, rule or regulation, and if such provision is considered non-material by the grantor, such provision shall be considered a separate, distinct and independent part of this chapter, and such holding shall not affect the validity and enforceability of all the other provisions of this chapter. In the event such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that such provision which had been held invalid or modified is no longer in conflict with the laws, rules and regulations then in effect, such provision shall thereupon return to full force and effect and shall thereafter be binding on the grantee and grantor provided the grantor shall give the grantee 30 days written notice of such change before requiring compliance with such provision. ('65 Code, § 7-8.1402)

(B) Separability of material provisions. If any material section of this chapter, as determined by the grantor, is held to be invalid or preempted by federal, state or county regulations or laws, the grantor shall negotiate with the grantee appropriate modifications to the franchise to provide reasonable relief from such invalidity or preemption, including the payment of liquidated damages. If the grantee and grantor are unable to reach agreement on such modifications, the dispute will be submitted to a mutually agreeable arbitrator, in accordance with state laws, who will determine what modifications and/or liquidated damages are appropriate. The arbitrator's decision shall be binding on the parties; provided, however, no decision of the arbitrator shall require the grantor or grantee to be in violation of any federal or state law or regulation. ('65 Code, § 7-8.1403) (Ord. 244-C.S., passed - - )

All notices from the grantee to the grantor pursuant to the franchise shall be to the office of the City Clerk. The grantee shall maintain within the franchise area throughout the term of the franchise an address for service of notices by mail. The grantee shall also maintain within the franchise area a local office and telephone number for the conduct of matters related to the franchise during normal business hours.

('65 Code, § 7-8.1404) (Ord. 244-C.S., passed - - )

Minimum public notice of any public meeting relating to the franchise shall be by publication at least once in a newspaper of general circulation in the area at least ten days prior to the meeting, posting at the offices of the grantor, and by announcement on at least two channels of the grantee's cable communications system between the hours of 7:00 p.m. and 9:00 p.m. for five consecutive days prior to the meeting.

('65 Code, § 7-8.1405) (Ord. 244-C.S., passed - - )

The grantee shall have no recourse whatsoever against the grantor or its officials, boards, commissions, agents or employees for any loss, cost, expense or damage arising out of any provision or requirement of the franchise or because of the enforcement of the franchise. ('65 Code, § 7-8.1407) (Ord. 244-C.S., passed - - )

The grantee shall not be relieved of its obligation to comply with any of the provisions of the permit by reason of any failure of the grantor to enforce prompt compliance. ('65 Code, § 7-8.1408) (Ord. 244-C.S., passed - - )

No person, whether or not a subscriber to the cable system, may intentionally or knowingly damage or cause to be damaged any wire, cable, conduit, equipment or apparatus of the grantee, or commit any act with intent to cause such damage, or tap, tamper with or otherwise connect any wire or device to a wire, cable, conduit, equipment, apparatus or appurtenance of the grantee with the intent to obtain a signal or impulse from the cable communications system without authorization from or compensation to the grantee, or obtain cable television or other communications service with intent to cheat or defraud the grantee of any lawful charge to which it is entitled. ('65 Code, § 7-8.1409(a)) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

GRANTING OF FRANCHISE

(A) In the event the grantor shall grant to the grantee a nonexclusive, revocable franchise to construct, operate, maintain and reconstruct a cable communications system within the franchise area, such franchise shall constitute both a right and an obligation to provide the services of a cable communications system as required by the provisions of this chapter and the franchise agreement. The franchise agreement shall include those provisions of the grantee's application for the franchise which are finally negotiated and accepted by the grantor and grantee.

(B) The franchise shall be granted under the terms and conditions of this chapter, consistent with state law, which are incorporated by this reference as if fully set forth herein. In the event of conflict between the terms and conditions of the franchise and the terms and conditions on which the grantor can grant a franchise, the statutory requirements, without exception, shall control.

(C) The franchise shall be made subject to the general ordinance provisions now in effect or hereafter made effective. Nothing in the franchise shall be deemed to waive the requirements of the various codes and laws of the grantor regarding permits, fees to be paid, or manner of construction. ('65 Code, § 7-8.401) (Ord. 244-C.S., passed - - )

The grantor may grant a franchise for all or any defined portion of the city. The service area shall be the entire territory defined in the franchise agreement. The initial service area shall be that portion of the franchise territory scheduled to receive initial service as stated in the franchise agreement. ('65 Code, § 7-8.402) (Ord. 244-C.S., passed - - )

For the purpose of operating and maintaining a cable communications system in the franchise area, the grantee may erect, install, construct, repair, replace, reconstruct and retain in, on, over, under, upon, across and along the public streets and ways within the franchise territory such wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of the cable communications system. Prior to any construction or alteration, however, the grantee in each case shall file plans with the appropriate grantor agencies and local utility companies and receive written approval before proceeding.

('65 Code, § 7-8.403) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The term of the franchise, and all rights, privileges, obligations and restrictions pertaining thereto, shall be 15 years from the effective date of the franchise, unless terminated sooner as provided in this chapter. The effective date of the franchise ordinance shall be upon its final passage by the grantor, unless the grantee fails to file, within fifteen (15) days after the date of final passage, in the appropriate office of the grantor, a written acceptance of the franchise, in which event the franchise shall be null and void. ('65 Code, § 7-8.404) (Ord. 244-C.S., passed - - ; Am. Ord. 494-C.S, passed 1-19-99)

The franchise shall be nonexclusive. The grantor specifically reserves the right to grant, at any time, such additional franchises for a cable communications system as the grantor deems appropriate.

('65 Code, § 7-8.405) (Ord. 244-C.S., passed - - )

(A) Transfer of franchises. Any franchise granted pursuant to this chapter shall be a privilege to be held for the benefit of the public. Such franchise shall not in any event be sold, transferred, leased, assigned or disposed of, including, but not limited to, by forced or voluntary sale, merger, consolidation, receivership or other means, without the prior consent of the grantor, and then only under such conditions as the grantor may establish. Such consent as required by the grantor, however, shall not be unreasonably withheld. (B) Ownership or control. The grantee shall promptly notify the grantor of any actual or proposed change in, transfer of or acquisition by any other party of the control of the grantee. The word CONTROL , as used in this division, shall not be limited to major stockholders but shall include actual working control in whatever manner exercised. A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person or group of persons of 10% of the voting shares of the grantee. Every change, transfer or acquisition of control of the grantee shall make the franchise subject to cancellation unless and until the grantor shall have consented thereto which consent shall not be unreasonably withheld. For the purpose of determining whether the grantor shall consent to such change, transfer or acquisition of control, the grantor may inquire into the qualifications of the prospective controlling party, and the grantee shall assist the grantor in any such inquiry.

(C) Foreclosures. The grantor agrees that any financial institution having a pledge of the franchise or its assets for the advancement of money for the construction and/or operation of the franchise, prior to enforcing any right to foreclose, shall have the right to notify the grantor that the financial institution or its designee satisfactory to the grantor will take control and operate the cable television system. Further, such financial institution shall also submit a plan for such operation which will insure continued service and compliance with all franchise obligations during the term the financial institution exercises control over the system. The financial institution shall not exercise control over the system for a period exceeding one year, unless extended by the grantor in its discretion, and during such period of time the financial institution shall have the right to petition the grantor to transfer the franchise to another grantee. If the grantor finds that such transfer, after considering the legal, financial, character, technical and other public interest qualities of the applicant, is satisfactory, the grantor will transfer and assign the rights and obligations of such franchise as in the public interest. The consent of the grantor to such transfer shall not be unreasonably withheld.

fer the franchise to another grantee. If the grantor finds that such transfer, after considering the legal, financial, character, technical and other public interest qualities of the applicant, is satisfactory, the grantor will transfer and assign the rights and obligations of such franchise as in the public interest. The consent of the grantor to such transfer shall not be unreasonably withheld.

(D) Preferences for local organizations. The grantor reserves the right, all other things being equal, in the event of a request for the approval of the transfer of the ownership of the franchise by the grantee, other than pursuant to division (C) of this section, to grant preference to any local not-for-profit organization demonstrating a willingness and capability to meet the terms and amount of the bona fide offer made to the grantee for the purchase of the franchise and network. In no event, however, shall the grantor delay a ruling on any request for the approval of the transfer of the ownership of the franchise by the grantee for more than 30 days after the receipt of such request by the grantor. (E) Non-waivers of rights. The consent or approval of the grantor to any transfer of the grantee shall not constitute a waiver or release of the rights of the grantor in and to the streets, and any transfer, by its terms, shall be expressly subordinate to the terms and conditions of the franchise.

(F) Substantial completion required. In the absence of extraordinary circumstances, the grantor shall not approve any transfer or assignment of the franchise prior to the substantial completion of the construction of the proposed system.

(G) Obligations of successors in interest. In no event shall a transfer of ownership or control be approved without the successor in interest becoming a signatory to the franchise agreement.

('65 Code, § 7-8.406) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) Applications. The franchise may be renewed by the grantor upon an application of the grantee pursuant to the procedures set forth in division (B) of this section and in accordance with the then applicable laws.

(B) Procedures.

(1) At least 13 months prior to the expiration of the franchise, the grantee shall inform the grantor in writing of its intent to seek the renewal of the franchise.

(2) After giving public notice, the grantor shall proceed to determine whether the grantee has satisfactorily performed its obligations under the franchise. To determine satisfactory performance, the grantor shall consider the technical developments and performance of the system, the programming, other services offered, the cost of services, and any other particular requirements set forth in this chapter. Also, the grantor shall consider the grantee's annual reports made to the grantor and the FCC. Industry performance on a national basis shall also be considered. Provisions shall be made for public comment.

(3) A four-month period shall be provided to determine the grantee's eligibility for renewal.

(4) The grantor shall then prepare, within two months, any amendments to this chapter the grantor believes necessary.

(5) If the grantor finds the grantee's performance satisfactory, a new franchise may be granted pursuant to this chapter as amended for an additional period of ten years. Subsequent renewal for ten-year periods may be applied for by the grantee in accordance with the procedures set forth in this section.

(6) In the event the grantee is determined by the grantor to have performed unsatisfactorily, new applicants may be sought and evaluated, and a franchise award may be made by the grantor.

('65 Code, § 7-8.407) (Ord. 244-C.S., passed - - )

(A) In accepting the franchise, the grantee acknowledges that its rights are subject to the police powers of the grantor to adopt and enforce general ordinances necessary to the safety and welfare of the public; and the grantee agrees to comply with all applicable general laws and ordinances enacted by the grantor pursuant to such powers. (B) Any conflict between the provisions of this chapter and any other present or future lawful exercise of the grantor's police powers shall be resolved in favor of the latter, except that any such exercise that is not of general application in the jurisdiction or applies exclusively to the grantee or cable communications system which contains provisions inconsistent with the franchise shall prevail only if, upon such exercise, the grantor finds an emergency exists constituting a danger to health, safety, property or general welfare or such exercise is mandated by law.

('65 Code, § 7-8.408) (Ord. 244-C.S., passed - - )

(A) Annual franchise payments. The grantee of a franchise shall pay to the grantor an annual fee in an amount as designated in the franchise agreement, but in no event less than 5% of the annual gross revenues. Such payment shall be in addition to any other and commence as of the effective date of the franchise. In the event of a dispute, the grantor, if it so requests, shall be furnished a statement of such payment by a certified public accountant reflecting the total amounts of annual gross revenues and the charges, deductions and computations for the period covered by the payment.

(B) Acceptance by the grantor. No acceptance of any payment by the grantor shall be construed as a release or as an accord and satisfaction of any claim the grantor may have for further or additional sums payable as a franchise fee pursuant to this chapter or for the performance of any other obligation of the grantee.

(C) Failure to make required payments. In the event any franchise payment or recomputed amount is not made on or before the dates specified in this section, the grantee shall pay as additional compensation:

(1) An interest charge, computed from such due date, at the annual rate equal to the commercial prime interest rate in effect upon the due date; and

(2) A sum of money equal to 5% of the amount due in order to defray those additional expenses and costs incurred by the grantor by reason of the delinquent payment.

(D) Quarterly payments. The payment due the grantor under this section shall be computed quarterly, for the preceding quarter, as of March 31, June 30, September 30 and December 31. Each quarterly payment shall be due and payable no later than 30 days after such dates. Each payment shall be accompanied by a brief report showing the basis for the computation and such other relevant facts as may be required by the grantor.

(E) Credits. Following the issuance and acceptance of the franchise, the grantee shall initiate franchise fee payments to the grantor at the minimum rate specified in the franchise agreement. Such initial payments shall be credited against payments due in later years of the franchise inasmuch as they exceed the actual franchise payments due during any year.

('65 Code, § 7-8.409) (Ord. 244-C.S., passed - - )

(A) Grounds for revocation. The grantor reserves the right to revoke any franchise granted pursuant to this chapter and rescind all rights and privileges associated with the franchise in the following circumstances, each of which shall represent a default in breach under this chapter and the franchise grant:

(1) If the grantee should default in the performance of any of its material obligations under this chapter or under such documents, contracts and other terms and provisions entered into by and between the grantor and the grantee;

(2) If the grantee should fail to provide or maintain in full force and effect the liability and indemnification coverage or the performance bond required by this chapter;

(3) If any court of competent jurisdiction, the FCC, or any state regulator body by rules, decisions or other action determines that any material provision of the franchise documents, including this chapter, is invalid or unenforceable prior to the commencement of the construction of the system;

(4) If the grantee should frequently violate any orders or rulings of any regulatory body having jurisdiction over the grantee relative to the franchise, unless such orders or rulings are being contested by the grantee in a court of competent jurisdiction;

(5) If the grantee ceases to provide services for any reason within the control of the grantee over the cable communications system, the grantee shall not be declared at fault or be subject to any sanction under any provision of this chapter in any case in which the performance of any such provision is prevented for reasons beyond the grantee's control. A fault shall not be deemed to be beyond the grantee's control if committed by a corporation or other business entity in which the grantee holds a controlling interest, whether held directly or indirectly;

(6) If the grantee attempts to evade any of the provisions of this chapter or the franchise agreement or practices any fraud or deceit upon the grantor;

(7) If the grantee's construction schedule is delayed for more than 18 months later than the schedule contained in the franchise agreement; or

(8) If the grantee becomes insolvent or unable or unwilling to pay its debts or is adjudged bankrupt.

(B) Procedures prior to revocation.

(1) The grantor may make a written demand that the grantee so comply with any such requirement, limitation, term, condition, rule or regulation or correct any action deemed cause for revocation. If the failure, refusal or neglect of the grantee continues for a period of 60 days following such written demand, the grantor may place its request for the termination of the franchise upon a regular meeting agenda of the grantor. The grantor shall cause to be served upon the grantee, at least ten days prior to the date of such meeting, a written notice of its intent to request such termination and the time and place of the meeting, notice of which shall be published at least once ten days before such meeting in a newspaper of general circulation within the franchise area.

hise upon a regular meeting agenda of the grantor. The grantor shall cause to be served upon the grantee, at least ten days prior to the date of such meeting, a written notice of its intent to request such termination and the time and place of the meeting, notice of which shall be published at least once ten days before such meeting in a newspaper of general circulation within the franchise area.

(2) The grantor shall hear any persons interested therein and shall determine, in its discretion, whether or not any failure, refusal or neglect by the grantee was with just cause. (3) If such failure, refusal or neglect by the grantee was with just cause, the grantor shall direct the grantee to comply within such time and manner and upon such terms and conditions as are reasonable.

(4) If the grantor shall determine such failure, refusal or neglect by the grantee was without just cause, the grantor, by resolution, may declare that the franchise of the grantee shall be terminated and the bond forfeited unless there be compliance by the grantee within such period as the grantor may fix.

(C) Disposition of facilities. In the event a franchise expires, is revoked, or otherwise terminated, the grantor may order the removal of the system facilities from the franchise area within a reasonable period of time as determined by the grantor or require the original grantee to maintain and operate its network until a subsequent grantee is selected. (D) Restoration of property. In removing its plant, structures and equipment, the grantee shall refill, at its own expense, any excavation that shall be made by the grantee and shall leave all public ways and places in as good condition as that prevailing prior to the grantee's removal of its equipment and appliances without affecting the electrical or telephone cable wires or attachments. The grantor shall inspect and approve the condition of the public ways and public places and cables, wires, attachments and poles after removal. The liability, indemnity and insurance provided for in this chapter and the performance bond provided for shall continue in full force and effect during the period of removal and until full compliance by the grantee with the terms and conditions of this section.

(E) Restoration by the grantor; reimbursement of costs. In the event of the failure of the grantee to complete any work required by division (C) and/or division (D) of this section or any other work required by city laws within the time as may be established and to the satisfaction of the grantor, the grantor may cause such work to be done, and the grantee shall reimburse the grantor the cost thereof within 30 days after the receipt of an itemized list of such costs, or the grantor may recover such costs through the security fund provided by the grantee. The grantor shall be permitted to seek legal and equitable relief to enforce the provisions of this section.

satisfaction of the grantor, the grantor may cause such work to be done, and the grantee shall reimburse the grantor the cost thereof within 30 days after the receipt of an itemized list of such costs, or the grantor may recover such costs through the security fund provided by the grantee. The grantor shall be permitted to seek legal and equitable relief to enforce the provisions of this section.

(F) Extended operation. Upon either the expiration or revocation of a franchise, the grantor may require the grantee to continue to operate the cable communications system for an extended period of time not to exceed 12 months after the date of such expiration or revocation. The grantee, as trustee for its successor in interest, shall continue to operate the cable communications system under the terms and conditions of this chapter and the franchise agreement and to provide the regular subscriber service and any and all of the services which may be provided at such time. The grantor shall be permitted to seek legal and equitable relief to enforce the provisions of this section.

(G) Grantor's rights not affected. The termination and forfeiture of any franchise shall in no way affect any of the rights of the grantor under the franchise or any provision of law.

('65 Code, § 7-8.410) (Ord. 244-C.S., passed - - )

(A) The franchise granted pursuant to this chapter, at the option of the grantor, shall cease and terminate 120 days after the appointment of a receiver or trustee to take over and conduct the business of the grantee, whether in a receivership, reorganization, bankruptcy or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said 120 days or unless:

(1) Such receiver or trustee, within 120 days after its election or appointment, shall have fully complied with all the terms and provisions of this chapter and the franchise granted and the receiver or trustee within said 120 days shall have remedied all defaults under the franchise; and

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

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

(1) The grantor 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 grantor to assume and be bound by all the terms and conditions of the franchise. ('65 Code, § 7-8.411) (Ord. 244-C.S., passed - - )

No cable communications system shall be allowed to occupy or use the streets in the franchise territory or be allowed to operate without a franchise in accordance with the provisions of this chapter.

('65 Code, § 7-8.412) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

FRANCHISE REGULATIONS

The grantor shall exercise appropriate regulatory authority under the provisions of this chapter and applicable laws. If the franchise area served by the cable communications system also serves other contiguous or neighboring communities, the grantor, at its sole option, may participate in a joint regulatory agency, with delegated responsibility in the area of cable and related communications.

('65 Code, § 7-8.501) (Ord. 244-C.S., passed - - )

The grantor, if acting jointly with other grantors, may delegate the following regulatory responsibilities:

(A) Administering and enforcing the provisions of the cable communications system franchise;

(B) The coordination of the operation of government and education channels;

(C) Providing technical, programming and operation support to public agency users, such as government departments, schools and health care institutions;

(D) Establishing procedures and standards for institutional operations and services, the use of dedicated channels, and the sharing of public facilities;

(E) Planning the expansion and growth of public cable services;

(F) Analyzing the possibility of integrating cable communications with other local, state or regional telecommunications networks; and

(G) Formulating and recommending long-range telecommunications policies.

('65 Code, § 7-8.502) (Ord. 244-C.S., passed - - )

If so specified in the franchise agreement, the grantor may utilize a portion of the cable communications system capacity, and associated facilities and resources, to develop and provide cable services which will be in the public interest. In furtherance of this purpose, the grantor may establish a commission or public corporation to receive and allocate facilities, support funds and other considerations provided by the grantee and/or others. Such public corporation, if established, may be delegated the following responsibilities: (A) To receive and utilize or reallocate for utilization channel capacity, facilities, funding and other support provided specifically for the public usage of the cable communications system;

(B) To review the status and progress of each service developed for the public benefit;

(C) To reallocate resources on a periodic basis to conform with changing priorities and public needs; and

(D) To report to the grantor annually on the utilization of resources, the new public services developed, and the benefits achieved for the city and its residents. ('65 Code, § 7-8.503) (Ord. 244-C.S., passed - - )

The grantor reserves the right, at its discretion, from time to time, to determine if the entity described in § 112.042 of this subchapter is performing its purposes in a manner satisfactory to the grantor, and, if it is not, the grantor may receive and reallocate all or a portion of the channel capacity, operation appropriation, and capital appropriation, including any facilities and equipment purchased previously with such appropriation, to another entity. A new entity shall be required to comply in all respects with the legal responsibilities which were assumed under § 112.042.

('65 Code, § 7-8.504) (Ord. 244-C.S., passed - - )

(A) This section shall become effective only in the event that provisions of Federal Law pertaining to the regulation of subscriber rates are modified by subsequent legislation so as to permit such regulation by grantor.

• (B) To the extent permitted by federal and state law, the grantor may regulate the rates for basic cable service in accordance with the following procedures.

(C) To the extent permitted in subsection (B) of this section, the grantor shall have the authority to regulate the following rates, fees and charges:

(1) Rates for the provision of basic service to subscribers, whether residential or commercial, including multiple tiers of basic service.

(2) Rates for the initial installation or the rental of one (1) set of the minimum equipment which is necessary for the subscriber's receipt of basic cable service. (3) Any other rates for the cable services that may become subject to local regulation.

(D) The grantee may petition the Council for a change in rates subject to regulation by filing a proposed rate schedule with the City Clerk which petition shall include the justification(s) for the proposed schedule. Said petition shall be filed at least sixty (60) days prior to the requested implementation date of the rate change. One (1) copy of the petition shall remain on file with the City Clerk and be open for public inspection.

(E) Within sixty (60) days of the filing of the petition for rate change, the Council may hold public hearing to consider the proposed rate change, at which hearing all persons desiring to be heard, including the grantee, shall be heard on any matter, including but not limited to, the performance of the grantee, the grantee's cable services and the proposed new rates. (F) Upon notice of any public hearing as provided in subsection (E) of this section, the grantee shall notify its subscribers of the time, place and subject matter of the public hearing by announcement on at least two (2) channels of its cable system between the hours of 7:00 p.m. and 9:00 p.m. for at least five (5) consecutive days prior to the hearing. In addition, notice of any public hearing shall be published in a newspaper of local general circulation at least once but not less than seven (7) days before the public hearing. (G) Within sixty (60) days after said hearing, the Council shall render a written decision on the grantee's petition, either accepting, rejecting, modifying or deferring the same and reciting the basis of its decision. The Council may consider, iner alia, the following factors in approving or disapproving the petition.

(1) The ability of the grantee to render all cable system services and to derive a reasonable profit therefrom under the existing rate schedule and under the proposed rate schedule; (2) The revenues and profits derived from all cable system services;

(3) The efficiency of the grantee;

(4) The quality of the cable service offered by the grantee; (5) The original cost of the cable system less depreciation;

(6) A fair rate of return with respect to the cost of borrowing and the rates of return on investments having similar risks to that of cable television; (7) The extent to which the grantee has adhered to the terms of this chapter and the applicable franchise agreement;

(8) Fairness to city residents, subscribers and users. The Council shall not consider any valuation based upon a franchise or the grantee's goodwill and these items of value shall neither be amortized as an expense nor shall a return be paid on them. Any reasonable expense incurred by the grantor in the rate review process will be paid by the grantee.

(H) If no final decision on the grantee's petition has been rendered by the Council within one hundred eighty (180) days after filing of grantee's petition, the grantee's petition will be deemed approved, unless the one hundred eighty (180) day period is extended by mutual agreement between the grantee and the grantor.

(I) The grantee's petition for a rate increase shall include, but not be limited to, the following financial reports, which shall reflect the operations in the city: (1) Balance sheet; (2) Income statement; (3) Cash flow statement;

(4) Statement of sources and applications of funds;

(5) Detailed supporting schedules of expenses, income, assets and other items as may be required; and

(6) Statement of current and projected subscribers and penetration.

The grantee's accounting records applicable to this cable system shall be available for inspection by the grantor at all reasonable times. The grantor shall have access to records of financial transactions for the purpose of verifying burden rates or other indirect costs prorated to this particular cable system.

The documents listed above shall include sufficient detail and/or footnotes as may be necessary to provide grantor with the information needed to make accurate determinations as to the financial condition of the cable system. All financial statements shall be certified as accurate by an officer of the grantee. ('65 Code, § 7-8.505) (Ord. 244-C.S., passed - - ; Am. Ord. 494-C.S., passed 1-19-99)

(A) Within 90 days after the first anniversary of the effective date of each franchise, and each year thereafter throughout the term of the franchise, the grantor and grantee shall meet publicly to review the performance, quality of service, and rates of the cable television system. The reports required by § 112.115 through 112.121 of this chapter regarding subscriber complaints, the records of performance tests, and the opinion survey report shall be utilized as the basis for review. In addition, any subscriber may submit complaints during the review meetings, either orally or in writing, and such complaints shall be considered.

(B) Within 30 days after the conclusion of the system performance review meetings, the grantor shall issue findings with respect to the adequacy of the system performance and quality of service. If inadequacies are found, the grantor may direct the grantee to correct the inadequacies within a reasonable period of time.

(C) The failure of the grantee, after due notice, to correct the inadequacies shall be considered a material breach of the franchise, and the grantor, at its sole discretion, may levy any penalty within the scope of this chapter considered appropriate.

('65 Code, § 7-8.506) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

To provide for technological, economic and regulatory changes in the state of the art of cable communications, to facilitate renewal procedures, to promote the maximum degree of flexibility in the cable system, and to achieve a continuing, advanced modern system, the grantor and grantee shall comply with the following system and services review provisions:

(A) The grantor and grantee shall hold a system and services review session on or about the third anniversary date of the franchise agreement. Subsequent system and services review sessions shall be scheduled by the grantor each three years thereafter. All such review sessions shall be open to the public, and notice shall be given.

• (B) Sixty days prior to the scheduled system and services review session, the grantee shall submit a report to the grantor indicating the following:

• (1) All cable system services which are being provided on an operational basis, excluding tests and demonstrations, to cities in the United States with populations over 10,000 which are not provided to the grantor; and

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

(C) Topics for discussion and review at the system and services review sessions shall include, but shall not be limited to, the services provided, the rate structure, free or discounted services, the application of new technologies, system performance, programming, subscriber complaints, user complaints, rights of privacy, amendments to the franchise, undergrounding processes, developments in the law and regulatory constraints.

• (D) Either the grantor or the grantee may select additional topics for discussion at any such review session.

(E) Not later than 60 days after the conclusion of each system and services review session, the grantor shall issue findings, including specifically a listing of cable services not then being provided to the grantor which are considered feasible. The grantor may direct the grantee to provide such services within a reasonable time, under reasonable rates and conditions. Failure to provide such directed services may be considered a breach of the franchise, subject to penalties as provided in this chapter. ('65 Code, § 7-8.507) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) Intent. In order to achieve utilization of access channels which are in the best public interest, it is the intent of the grantor to ensure that the access and community channels are governed by an independent, nonprofit entity, termed the Access Channel Manager, so that such channels may be free of censorship, open to all residents of the franchise area, and available for all forms of public expression, community information, and the debate of public issues.

• (B) Functions. The Access Channel Manager shall have the following functions:

• (1) The responsibility for program production for, and the management of, the public access channel and all other channels as may in the franchise agreement be designated for community-based programming. Community channels may include government and educational access channels, as designated in the franchise agreement;

• (2) To assure that the public access and community channels are made available to all residents of the franchise area on a nondiscriminatory, first-come, first-served basis;

• (3) To assure that no censorship or control over the program content of the public access and community channels exists, except as necessary to comply with FCC prohibition of material which is obscene, or contains commercial advertising, or conducts a lottery;

• (4) To devise, establish, and administer all rules, regulations, and procedures pertaining to the use and scheduling of the public access and community channels;

• (5) To prepare, in conjunction with the grantee, such regular or special reports as may be required or desirable;

• (6) To hire and supervise staff;

• (7) To make all purchases of materials and equipment which may be required;

• (8) To develop additional sources of funding, such as foundation or federal or state grants, to further community programming; and

• (9) To perform such other functions relevant to the public and community channels as may be appropriate.

(C) Access rules. The Access Channel Manager shall complete a set of rules for the use of the access and community channels which rules shall be promptly forwarded to the grantor. The rules shall be prepared in cooperation with the grantee and confirmed by a contractual agreement between the Access Channel Manager and the grantee. The rules, at a minimum, shall provide for:

• (1) Access on a first-come, first-served, nondiscriminatory basis for all residents of the franchise area;

• (2) The prohibition of advertising for commercial or political purposes, as defined by the FCC;

• (3) The prohibition of any presentation of lottery information or obscene or indecent material;

• (4) Public inspections of the logs of producers, which shall be retained by the grantee for a period of two years;

• (5) Procedures by which individuals or groups who violate any rule may be prevented from further access to the channel; and

• (6) The free use of such reasonable amounts of channel time, cablecasting facilities, and technical support as are provided for in the agreement between the Access Channel Manager and the grantee.

• (D) Funding for the Access Channel Manager. It is the intent of the grantor that the Access Channel Manager obtain partial funding from the grantee to the extent defined in the franchise agreement.

• (E) Grantee support for the Access Channel Manager. It is the intent of the grantor that the grantee shall provide ongoing cooperation for the support of the Access Channel Manager, with the detailed requirements to be specified in the franchise agreement. As a minimum, the following shall be provided:

• (1) The grantee shall provide a high-quality cablecasting studio facility. Such studio shall be separate from the facilities used by the grantee for local origination, although it may be housed in the same building. Equipment in such studio shall be comparable to that used by the grantee for local origination.

(2) The grantee shall provide operational and technical personnel to support the Access Channel Manager in cablecasting activities, with the minimum level of support as specified in the franchise agreement.

(F) Access Channel Manager reports to the grantor. The Access Channel Manager shall provide a report to the grantor, at least annually, indicating achievements in communitybased programming and services. The Access Channel Manager also shall provide a special report each time the grantee requests an increase in rates, indicating the level and quality of the grantee's support, during the period elapsed since any previous rate increase was implemented. ('65 Code, § 7-8.508) (Ord. 244-C.S., passed - - )

FINANCIAL AND INSURANCE PROVISIONS

(A) Within 30 days after the granting of the franchise and prior to the commencement of any construction work by the grantee, the grantee shall file with the grantor a construction and surety bond in the amount specified in the franchise agreement in favor of the grantor and any other person who may claim damages as a result of the breach of any duty by the grantee assured by such bond. In the event the grantee shall faithfully comply with all applicable statutes, laws and regulations governing the franchise, and shall faithfully complete the construction of the facilities contemplated, and shall receive a certificate of completion from the grantor, the obligation under such bond shall be void; otherwise it shall remain in full force and effect.

(B) Such bond shall be in the form approved by the grantor and, among other matters, shall cover the cost of the removal of any properties installed by the grantee in the event the grantee shall default in the performance of its franchise obligation.

(C) In no event shall the amount of the bond be construed to limit the liability of the grantee for damages.

('65 Code, § 7-8.601) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) In addition to the performance bond required by § 112.060 of this subchapter, the grantee, at least 30 days prior to the commencement of the operation, shall file with the grantor a compliance bond in the amount specified in the franchise agreement in favor of the grantor and any other person who may be entitled to damages as a result of any occurrence in the operation or termination of the cable communications system operated under the franchise agreement, including the payments required to be made to the grantor pursuant to this chapter.

(B) Such compliance bond shall be in the form approved by the grantor and, among other matters, shall cover the cost of the removal of any properties installed by the grantee in the event the grantee shall default in the performance of its franchise obligation.

(C) In no event shall the amount of such bond be construed to limit the liability of the grantee for damages.

('65 Code, § 7-8.602) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) Within 30 days after the effective date of the franchise, the grantee shall deposit into a bank account established by the grantor, and maintain on deposit through the term of the franchise, the sum specified in the franchise agreement as security for the faithful performance by the grantee of all the provisions of the franchise, and compliance with all orders, permits and directions of any agency of the grantor having jurisdiction over its acts or defaults pursuant to this chapter, and the payment by the grantee of any claims, liens and taxes due the grantor which arise by reason of the construction, operation or maintenance of the system.

(B) Within 30 days after notice to the grantee that any amount has been withdrawn by the grantor from the security fund pursuant to division (A) of this section, the grantee shall deposit a sum of money sufficient to restore such security fund to the original amount.

(C) If the grantee fails, after ten days notice, to pay to the grantor any taxes due and unpaid; or fails to repay to the grantor, within such ten days, any damages, costs or expenses which the grantor shall be compelled to pay by reason of any act or default of the grantee in connection with the franchise; or fails, after 30 days notice of such failure by the grantee to comply with any provision of the franchise which the grantor reasonably determines can be remedied by an expenditure of the security, the grantor may immediately withdraw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal, the grantor shall notify the grantee of the amount and date thereof. (D) The security fund deposited pursuant to this section shall become the property of the grantor in the event the franchise is canceled by reason of the default of the grantee or revoked for cause. The grantee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit at the expiration of the term of the franchise, or upon the termination of the franchise at an earlier date, provided there is then no outstanding default on the part of the grantee.

(E) The rights reserved to the grantor with respect to the security fund are in addition to all other rights of the grantor, whether reserved by this chapter or authorized by law, and no action, proceeding, or exercise of a right with respect to such security fund shall affect any other right the grantor may have. ('65 Code, § 7-8.603) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) (1) The grantee, by the acceptance of the franchise granted pursuant to this chapter, shall indemnify, defend and hold harmless the grantor, and its officers, boards, commissions, agents and employees, from any and all claims, suits and judgments for damages in any way arising out of or through or alleged to arise out of or through: (a) The act of the grantor in granting the franchise; and

(b) The acts or omissions of the grantee and its servants, employees or agents.

(2) Both such indemnifications shall cover such claims arising in tort, contracts, violations of statutes, laws or regulations, or otherwise.

(B) In the event any such claim shall arise, the grantor shall tender the defense thereof to the grantee; provided, however, the grantor in its sole discretion may participate in the defense of such claims at its expense.

('65 Code, § 7-8.604) (Ord. 244-C.S., passed - - )

(A) The grantee shall maintain throughout the term of the franchise insurance in amounts at least as follows:

(1) Worker's compensation insurance. Worker's compensation insurance in such coverage as may be required by the worker's compensation insurance and safety laws of the state and amendments thereto; (2) Comprehensive general liability. Comprehensive general liability, bodily injury, each person, $500,000; each occurrence, $2,000,000; and property damage, each accident, $500,000; and

(3) Comprehensive automobile liability. Comprehensive automobile liability, including non-ownership and hired car coverage, as well as owned vehicles, with minimum limits as follows: bodily injury, each person, $500,000; each occurrence, $2,000,000; and property damage, each occurrence, $300,000.

(B) The grantee shall furnish the grantor with copies of such insurance policies and certificates of insurance.

(C) Such insurance policies shall name the grantor, and its officers, boards, commissions, agents and employees, as additional insureds and shall contain the following endorsement: “It is hereby understood and agreed that this insurance policy may not be canceled by the surety or the intention not to renew be stated by the surety until 30 days after receipt by the city by registered mail of written notice of such intention to cancel or not renew.”

(D) The minimum amounts set forth in this section for such insurance shall not be construed to limit the liability of the grantee to the grantor under the franchise issued pursuant to this chapter to the amounts of such insurance.

('65 Code, § 7-8.605) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

REPORTS

Within 60 days after the close of the grantee's fiscal year for the franchise, the grantee shall submit a written annual report, in a form approved by the grantor, including, but not limited to, the following information:

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

(B) A financial statement, audited by and carrying an unqualified opinion from, an independent certified public accountant, including a statement of income, revenues, operating expenses, the value of the plant, annual capital expenditures, depreciation with an attached depreciation schedule, interest paid, taxes paid, balance sheets, and a statement of the sources and application of funds, covering all years since the beginning of the franchise;

(C) A current statement of the costs of the construction by component categories;

(D) A projected income statement, balance sheet, statement of the sources and application of funds, and statement of projected construction for the next two years;

(E) A reconciliation between previously projected construction and/or financial estimates, as the case may be, and actual results;

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

(G) A list of stockholders or other equity investors holding 5% or more of the voting interest in the grantee and its parent, subsidiary, and affiliated corporations and other entities, if any; and

(H) To the extent that money, other than profits, is paid to a parent, subsidiary, or other person affiliated with the grantee, the amounts of such payments and the basis for the computation of such amounts (for example, the basis for computing any management fee or share of “home office” overhead).

('65 Code, § 7-8.1301) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

Simultaneously with the annual report required by § 112.075 of this subchapter, the grantee shall 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. The report shall include, but not be limited to, a description and as-built maps of the portions of the franchise area which have been cabled and have all services available, and appropriate engineering evaluations, 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. At the grantor's request, but no more often than once every three years, the grantee and grantor shall agree upon the appointment of a qualified independent engineer to evaluate the technical performance of the cable system. The cost of such evaluation shall be borne by the grantee.

('65 Code, § 7-8.1302) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall submit to the grantor copies of all pleadings, applications, reports, communications, and documents of any kind, as well as copies of all decisions, correspondence, and actions, submitted by the grantee to any federal, state, and local courts, regulatory agencies, and other government bodies relating to its cable television operations within the franchise area. The grantee shall submit such documents to the grantor simultaneously with their submission to such courts, agencies, and bodies and within five days after their receipt from such courts, agencies, and bodies. The grantee hereby waives any right to claim confidential, privileged, or proprietary rights to such documents. However, information otherwise confidential by law, and so designated by the grantee, which is submitted to the grantor shall be retained in confidence by the grantor and its authorized agents and shall not be made available for public inspection.

('65 Code, § 7-8.1303) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

A copy of each of the grantee's annual and other periodic public reports and those of its parent, subsidiary, and affiliated corporations and other entities, as the grantor requests and are reasonably appropriate, shall be submitted to the grantor within five days following their issuance.

('65 Code, § 7-8.1304) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) An accurate and comprehensive file shall be kept by the grantee of any and all complaints regarding the cable system. A procedure shall be established by the grantee by the time of the installation of the cable system to remedy complaints quickly and reasonably to the satisfaction of the grantor. Complete records of the grantee's actions in response to all complaints shall be kept. Such files and records shall remain open to the public during normal business hours.

(B) A summary of complaints, identifying the number and nature of complaints and their disposition, in a form approved by the grantor, shall be completed for each month and submitted to the grantor by the tenth day of the succeeding month.

(C) The results of an annual 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 months after the end of the grantee's fiscal year. The surveys required to make such reports shall be conducted in conformity with such requirements, including supervision, as the grantor may prescribe.

('65 Code, § 7-8.1305) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall submit to the grantor an annual report indicating the degree of compliance with the privacy provisions of §§ 112.115 through 112.121 of this chapter and all steps taken to assure that the privacy rights of individuals have been protected.

('65 Code, § 7-8.1306) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall submit to the grantor such other information or reports in such forms and at such times as the grantor may request or require. ('65 Code, § 7-8.1307) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall submit to the grantor copies of all income tax returns and reports which are filed with local, state, or federal governments pertaining to its cable system in the franchise area within five days after the date on which such reports are filed.

('65 Code, § 7-8.1308) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall allow the grantor to make inspections of any of the grantee's facilities and equipment at any time upon one day's prior notice or, in the case of emergency, upon demand without prior notice, to allow the grantor to verify the accuracy of any submitted report. ('65 Code, § 7-8.1309) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall maintain an office within five (5) miles of the city 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, income tax returns, financial statements, service complaint logs, performance test results, and other like materials of the grantee which relate to the operation of the cable system. Access to such records shall not be denied by the grantee on the basis that such records contain confidential, privileged, or proprietary information.

('65 Code, § 7-8.1310) (Ord. 244-C.S., passed - - ; Am. Ord. 494-C.S, passed 1-19-99) Penalty, see § 112.999

All reports required by this subchapter, except as otherwise provided, shall be available for public inspection in the City Clerk's office during normal business hours. ('65 Code, § 7-8.1311) (Ord. 244-C.S., passed - - )

The refusal, failure, or neglect of the grantee to file any of the reports required by this subchapter, or as the grantor may direct, 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. ('65 Code, § 7-8.1312) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

Any materially false or misleading statement or representation made knowingly by the grantee in any report required by 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. ('65 Code, § 7-8.1313) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

All reports and records required by this subchapter shall be furnished at the sole expense of the grantee. ('65 Code, § 7-8.1314) (Ord. 244-C.S., passed - - )

FRANCHISE VIOLATIONS

(A) If the grantee shall fail to perform any obligation under the franchise, or fail to do so in a timely manner, the grantor, at its option and in its sole discretion, may: (1) Assess against the grantee penalties of up to $5,000 per day for construction delays and up to $1,000 per day for all other violations, which the grantee hereby agrees to pay, such assessment to be levied against the security fund provided for in this chapter and collected by the grantor immediately upon such assessment. The grantor and grantee agree that the amount of such assessment shall be deemed, without proof, to represent the liquidation of damages actually sustained by the grantor by reason of the grantee's failure to perform. Such assessment shall not constitute a waiver by the grantor of any other right or remedy it may have under the franchise or under applicable laws, including, without limitation, its right to recover from the grantee such additional damages, losses, costs, and expenses, including reasonable attorney fees, as may have been suffered or incurred by the grantor by reason of, or arising out of, such breach of the franchise. Such provision for the assessment of damages is intended by the parties to be separate and apart from the grantor's right to enforce the provisions of the construction and compliance bonds provided for in §§ 112.060 through 112.064 of this chapter and is intended to provide compensation to the grantor for actual damages;

(2) For violations considered by the grantor to have materially degraded the quality of service, order and direct the grantee to issue rebates or reduce its rates and/or charges to subscribers in an amount solely determined by the grantor to provide monetary relief substantially equal to the reduced quality of service resulting from the grantee's failure to perform; (3) Require the grantee to cure all defaults and breaches of its obligations pursuant to this chapter before the grantee is entitled to increase any rate or charge to subscribers pursuant to this chapter;

(4) Terminate the franchise for any of the causes set forth in §§ 112.020 through 112.031 of this chapter; and

(5) No penalty shall be imposed by the grantor against the grantee for any violation of the franchise without the grantee being afforded due process of law as provided for in § 112.101 of this subchapter.

(B) The grantor, in its sole judgment and discretion, may impose any or all of the measures set forth in this section against the grantee, which shall be in addition to any and all other legal or equitable remedies the grantee has under the franchise or under any applicable law.

('65 Code, § 7-8.1201) (Ord. 244-C.S., passed - - )

In the event the grantor determines that the grantee has violated any provision of the franchise, any rule or regulation promulgated pursuant to this chapter, or any applicable federal, state, or local law, the grantor may make a written demand on the grantee that it remedy such violation. If the violation, breach, failure, refusal, or neglect is not remedied to the satisfaction of the grantor within 30 days following such demand, the grantor shall determine whether or not such violation, breach, failure, refusal, or neglect by the grantee was excusable or inexcusable in accordance with the following procedure:

(A) A public hearing shall be held, and the grantee shall be provided with an opportunity to be heard upon 30 days written notice to the grantee of the time and the place of the hearing and the allegations of the franchise violations.

(B) If, after notice is given and at the grantee's option a full public proceeding is held, the grantor determines that such violation, breach, failure, refusal, or neglect by the grantee was excusable as provided in § 112.102 of this subchapter, the grantor shall direct the grantee to correct or remedy the same within such additional time, in such manner, and upon such terms and conditions as the grantor may direct.

(C) If, after notice is given and at the grantee's option a full public proceeding is held, the grantor determines that such violation, breach, failure, refusal, or neglect was inexcusable, the grantor may assess a penalty or remedy in accordance with § 112.100 of this subchapter.

(D) If, after notice is given and at the grantee's option a full public proceeding is held, the grantor declares the franchise or any renewal thereof breached, the parties may pursue their remedies pursuant to the franchise or any other remedy, legal or equitable.

('65 Code, § 7-8.1202) (Ord. 244-C.S., passed - - )

In the event the grantee's performance of any of the terms, conditions, obligations, or requirements of the franchise is prevented or impaired due to any cause beyond its reasonable control or not reasonably foreseeable, such inability to perform shall be deemed to be excused, and no penalties or sanctions shall be imposed as a result thereof provided the grantee has notified the grantor in writing within 30 days of its discovery of the occurrence of such an event. Such causes beyond the grantee's reasonable control or not reasonably foreseeable shall include, but not be limited to, acts of God and civil emergencies. ('65 Code, § 7-8.1203) (Ord. 244-C.S., passed - - )

OPERATION AND MAINTENANCE

The grantee shall maintain an office within five (5) miles of the city and manage all of its operations in accordance with a policy of totally open books and records. The grantor shall have the right to inspect at any time during normal business hours all books, records, maps, plans, income tax returns, financial statements, service complaint logs, performance test results and other like materials of the grantee which relate to the operation of the franchise. Access to such records shall not be denied by the grantee on the basis that such records contain "proprietary" information.

('65 Code, § 7-8.901) (Ord. 244-C.S., passed - - ; Am. Ord. 494-C.S., passed 1-19-99) Penalty, see § 112.999

• (A) Required. The grantee at all times shall maintain:

(1) A record of all complaints received and interruptions or degradation of service experienced for the preceding three years;

(2) A full and complete set of plans, records, and as-built maps showing the exact location of all cable communications system equipment installed or in use in the franchise territory, exclusive of subscriber service drops; and

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

(B) Other records. The grantor may impose reasonable requests for additional information, records and documents from time to time.

(C) Inspections of property and records. At all reasonable times, the grantee shall permit an examination by any duly authorized representative of the grantor of all franchise property, together with any appurtenant property of the grantee situated within or without the franchise territory. The grantee shall also permit any duly authorized representative of the grantor to examine and transcribe any and all maps and other records kept or maintained by the grantee or under its control concerning the operations, affairs, transactions or property of the grantee related to its franchise. If any of such maps or records are not kept in the local office, or upon reasonable request made available to the grantor, and if the grantor shall determine that an examination of such maps or records is necessary or appropriate to the performance of any of its duties, then all travel and maintenance expenses necessarily incurred in making such examination shall be paid by the grantee.

('65 Code, § 7-8.902) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) (1) The grantee shall maintain an office in the franchise territory which shall be open during all usual business hours, have a publicly listed toll-free telephone, and be so operated to receive subscriber complaints and requests for repairs or adjustments on a 24-hour per day basis. A written log shall be maintained listing all complaints and their disposition.

(2) The grantee shall provide a state-of-the-art telephone answering system to receive all construction and service complaints which will assure that only a minimum of callers shall receive busy signals when telephoning the office. A sufficient number of customer service representatives will be provided so that callers are not required to wait beyond reasonable time for such service. The telephone number of the local office shall be listed in the telephone directories serving the franchise area. The telephone service shall be operable to accept complaints 24 hours a day, seven days a week. Inquiries and complaint calls shall be accepted in person over the telephone 24 hours a day, seven days a week. (B) The grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum use of the system. A written log shall be maintained for all service interruptions.

(C) The grantee shall maintain a repair force of technicians capable of responding to subscriber complaints or requests for service within 24 hours after the receipt of the complaint or request. No charge shall be made to the subscriber for such service.

(D) The grantee shall furnish each subscriber, at the time service is installed, written instructions which clearly set forth procedures, furnish information concerning the procedures for making inquiries or complaints, including the name, address, and local telephone number of the employee or employees or agent to whom such inquiries or complaints are to be addressed, and furnish information concerning the grantor's office responsible for the administration of the franchise, with the address and telephone number of the office.

('65 Code, § 7-8.903) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) The grantee shall not deny service, deny access, or otherwise discriminate against subscribers, channel users, or general citizens on the basis of race, color, religion, national origin, age, or sex. The grantee shall comply at all times with all other applicable federal, state, and local laws and regulations and all executive and administrative orders relating to nondiscrimination which are hereby incorporated and made a part of this chapter by reference.

(B) The grantee shall strictly adhere to the equal employment opportunity requirements of the FCC and state and local regulations as amended from time to time.

(C) No signal of a Class IV cable communications channel shall be transmitted from a subscriber terminal for the purpose of monitoring individual viewing patterns or practices without the express written permission of the subscriber. The request for such permission shall be contained in a separate document with a prominent statement that the subscriber is authorizing the permission in full knowledge of its provision. Such written permission shall be for a limited period of time, not to exceed one year, which shall be renewable at the option of the subscriber. No penalty shall be invoked for a subscriber's failure to provide or renew such an authorization. The authorization shall be revocable at any time by the subscriber without a penalty of any kind whatsoever. Such authorization is required for each type of classification of Class IV cable television activity planned; provided, however, the grantee shall be entitled to conduct system-wide or individually addressed “sweeps” for the purpose of verifying system integrity, controlling return-path transmission, or billing for pay services.

(D) The grantee, or any of its agents or employees, without the specific written authorization of the subscriber involved, shall not sell or otherwise make available to any party:

(1) Lists of the names and addresses of such subscribers; or

(2) Any list which identifies the viewing habits of subscribers.

(E) The entire system of the grantee shall be operated in a manner consistent with the principle of fairness and equal accessibility of its facilities, equipment, channels, studios, and other services to all citizens, businesses, public agencies, and other entities having a legitimate use for the network, and no one shall be arbitrarily excluded from its use. Allocations of the use of such facilities shall be made according to the rules or decisions of the grantee and any regulatory agencies affecting the same. ('65 Code, § 7-8.904) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) (1) It shall be the right of all subscribers to continue receiving service insofar as their financial and other obligations to the grantee are honored. In the event the grantee elects to overbuild, rebuild, modify, or sell the system, or the grantor gives notice of intent to terminate or fails to renew the franchise, the grantee shall act so as to ensure that all subscribers receive continuous, uninterrupted service, regardless of the circumstances.

(2) In the event of a change of franchisee, or in the event a new operator acquires the system, the grantee shall cooperate with the grantor, new franchisee, or operator in maintaining continuity of service to all subscribers. During such period the grantee shall be entitled to the revenues for any period during which it operates the system and shall be entitled to reasonable costs for its services when it no longer operates the system.

(B) In the event the grantee fails to operate the system for seven consecutive days without the prior approval of the grantor or without just cause, the grantor, at its option, may operate the system or designate an operator until such time as the grantee restores service under conditions acceptable to the grantor or a permanent operator is selected. If the grantor is required to fulfill such obligation for the grantee, the grantee shall reimburse the grantor for all reasonable costs or damages in excess of revenues from the system received by the grantor which are the result of the grantee's failure to perform.

(C) In the event that interruption of service is required by the grantee for modifications, repairs, or the like, the interruption shall be as brief as possible and at times when the viewing audience is at a minimum. Records of such interruptions shall be kept.

('65 Code, § 7-8.905) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall have the authority to promulgate such rules, regulations, terms, and conditions governing the conduct of its business as shall be reasonably necessary to enable the grantee to exercise its rights and perform its obligations under the franchise and to assure an uninterrupted service to each and all of its customers; provided, however, such rules, regulations, terms, and conditions shall not be in conflict with the provisions of this chapter or applicable state and federal laws, rules, and regulations. Such rules, regulations, terms, and conditions shall be submitted to the grantor for its review, and grantor approval shall be required prior to their becoming effective. ('65 Code, § 7-8.906) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall be required to provide service to tenants in individual units of multiple housing facilities with all services offered to other dwelling units within the franchise area so long as the owner of the facility consents in writing, if requested by the grantee, unless the requirements of consent is removed pursuant to state or federal law, to the following:

(A) The grantee's providing of the service to units of the facility;

(B) Reasonable conditions and times for the installation, maintenance, and inspection of the system on the facility premises;

(C) Reasonable conditions promulgated by the grantee to protect the grantee's equipment ; and

(D) Nondiscrimination in rental charges, or otherwise, between tenants who receive cable service and those who do not.

('65 Code, § 7-8.907) (Ord. 244-C.S., passed - - ; Am. Ord. 494-C.S., passed 1-19-99) Penalty, see § 112.999

DESIGN AND CONSTRUCTION PROVISIONS

The cable communications system shall be constructed in accordance with the design requirements contained in the franchise agreement. ('65 Code, § 7-8.701) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall design and construct the home subscriber network in such manner as to have the eventual capability to pass by every single-family dwelling unit, multiplefamily dwelling unit, agency and business establishment within the area of the franchise. Service shall be provided to subscribers in accordance with the schedules and line extension policies specified in the franchise agreement.

('65 Code, § 7-8.702) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall provide cablecasting facilities in accordance with the requirements of the franchise agreement. ('65 Code, § 7-8.703) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) The grantee shall comply with the requirements of the system construction schedule contained in the franchise agreement.

(B) Service need not be provided where power and telephone utilities are not available.

(C) The grantee shall provide a detailed construction plan indicating the progress schedule, area construction maps, test plans and projected dates for offering service. In addition, the grantee shall update such information on a monthly basis, showing specifically whether schedules are being met and the reasons for any delay.

(D) Failure to begin construction within one year after the award of the franchise shall be grounds for franchise revocation at the option of the grantor. ('65 Code, § 7-8.704) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantor, at its sole option, may apply any of the following in connection with delays in system construction:

(A) A reduction in the duration of the franchise on a month-for-month basis for each month of delay exceeding six months;

(B) The forfeiture of construction bonds and/or the assessment of a penalty not to exceed $5,000 per day levied against the security fund for delays exceeding one year; and (C) The termination of the franchise for delays exceeding 18 months.

('65 Code, § 7-8.705) (Ord. 244-C.S., passed - - )

After service has been established by activating trunk cables for any area, the grantee shall provide service to any requesting subscriber within such area within 30 days after the date of the request.

('65 Code, § 7-8.706) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The undergrounding of cables is encouraged. In any event, cables shall be installed underground at the grantee's cost where existing utilities are already underground. Previously installed aerial cable shall be undergrounded in concert, and on a cost-sharing basis, with other utilities when such other utilities may convert from aerial to underground construction.

('65 Code, § 7-8.707) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) In cases of new construction or property development where utilities are to be placed underground, the developer or property owner shall give the grantee reasonable notice of such construction or development and of the particular date on which open trenching will be available for the grantee's installation of conduit, pedestals and/or vaults, and laterals to be provided at the grantee's expense. The grantee shall also provide specifications as needed for trenching.

(B) The costs of trenching and easements required to bring service to the development shall be borne by the developer or property owner; except that if the grantee fails to install its conduit, pedestals and/or vaults, and laterals within five working days after the date the trenches are available, as designated in the notice given by the developer or property owner, then, should the trenches be closed after the five day period, the cost of new trenching shall be borne by the grantee. Except for the notice of the particular date on which trenching will be available to the grantee, any notice provided to the grantee by the grantor of a preliminary plat request shall satisfy the requirement of reasonable notice if sent to the local general manager or system engineer of the grantee prior to the approval of the preliminary plat request.

('65 Code, § 7-8.708) (Ord. 244-C.S., passed - - )

In cases of multiple-dwelling units serviced by aerial utilities, the grantee shall make every effort to minimize the number of individual aerial drop cables, giving preference to the undergrounding of multiple drop cables between the pole and the dwelling unit. The burden of proof shall be upon the grantee to demonstrate why the undergrounding of drop cables is technically or economically unfeasible.

('65 Code, § 7-8.709) (Ord. 244-C.S., passed - - )

(A) The grantee shall utilize existing poles, conduits and other facilities whenever possible and shall not construct or install any new, different or additional poles, conduits or other facilities, whether on public property or on privately-owned property, until the written approval of the grantor is obtained, which approval shall not be unreasonably withheld. However, no location of any pole or wire-holding structure of the grantee shall be a vested interest, and such poles or structures shall be removed or modified by the grantee at its own expense whenever the grantor determines that the public convenience would be enhanced thereby.

(B) The grantee shall notify the grantor at least ten days prior to the intention of the grantee to commence any construction in any street. The grantor shall cooperate with the grantee in granting any permit required, providing 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 laws of the grantor.

(C) 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. The grantee, at all times, shall employ ordinary care and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damages, 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 any public way by the grantee shall be placed in such a manner as not to interfere with the usual travel on such public way.

(D) The grantee, at its own expense, and in a manner approved by the grantor, shall restore to the standards and specifications of the grantor any damage or disturbance caused to any public way as a result of operations or construction on behalf of the grantee.

(E) Whenever, in case of fire or other disaster, it becomes necessary in the judgment of the grantor to remove any of the grantee's facilities, no charge shall be made by the grantee against the grantor for restoration and repair, unless such acts amount to gross negligence by the grantor.

(F) The grantee shall have the authority to trim trees on public property at its own expense as may be necessary to protect its wires and facilities, subject to the supervision and direction of the grantor. The trimming of trees on private property shall require the written consent of the property owner.

(G) The grantee, at its expense, shall protect, support, temporarily disconnect, relocate or remove any property of the grantee when, in the opinion of the grantor, the same is required by reason of traffic conditions, public safety, street vacation, freeway or street construction, change or establishment of street grades, installations of sewers, drains, water pipes, power lines, signal lines, transportation facilities, tracks or any other type of structure or improvement by governmental agencies, whether acting in governmental or a proprietary capacity, or any other structure or public improvement, including, but not limited to, the movement of buildings, urban renewal and redevelopment, and any general program under which the grantor shall undertake to cause all such properties to be located beneath the surface of the ground. The grantee in all cases shall have the privilege, subject to the corresponding obligations, to abandon any property of the grantee in place. Nothing in this section shall be deemed a taking of the property of the grantee, and the grantee shall be entitled to no surcharge by reason of anything set forth in this section.

(H) Upon the failure of the grantee to commence, pursue or complete any work required by law or by the provisions of this chapter to be done in any street, within the time prescribed and to the satisfaction of the grantor, the grantor, at its option, may cause such work to be done, and the grantee shall pay to the grantor the cost thereof in the itemized amounts reported by the grantor to the grantee within 30 days after the receipt of such itemized report.

(I) The grantee shall make no paving cuts or curb cuts unless absolutely necessary, and only after written permission has been given by the grantor.

(J) The grantee shall install in conduit all cable passing under any major roadway.

('65 Code, § 7-8.710) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) Construction standards. (1) Compliance with safety codes. All construction practices shall be in accordance with all applicable sections of the Occupational Safety and Health Act of 1970, and any amendments thereto, as well as all state and local codes where applicable. (2) Compliance with electrical codes. All installations of electronic equipment shall be of a permanent nature, durable and installed in accordance with the provisions of the Basic BOCA Electrical Code as amended. (3) Antennas and towers. Antenna supporting structures (towers) shall be designed for the proper loading as specified in Electronics Industry Association's R.S.-2-22A Specifications.

(4) Compliance with aviation requirements. Antenna supporting structures (towers) shall be painted, lighted, erected and maintained in accordance with all applicable rules and regulations of the Federal Aviation Administration and all other applicable state and local codes and regulations.

(5) Construction standards and requirements. All of the grantee's plant and equipment, including, but not limited to, the antenna site, head-end and distribution system, towers, house connections, structures, poles, wires, cables, coaxial cables, fixtures and appurtenances, shall be installed, located, erected, constructed, reconstructed, replaced, removed, repaired, maintained and operated in accordance with good engineering practices, performed by experienced maintenance and construction personnel, so as not to endanger or interfere with improvements the city may deem proper to make, or to interfere in any manner with the rights of any property owner, or to unnecessarily hinder or obstruct pedestrian or vehicular traffic on municipal properties.

(6) Safety and nuisance requirements. The grantee at all times shall employ ordinary care and shall install and maintain in use commonly accepted methods and devices preventing failures and accidents which are likely to cause damages, injuries or nuisances to the public.

(B) Technical standards. The cable communications system shall meet all technical and performance standards contained in the franchise agreement.

(C) Test and compliance procedure. The grantee shall submit, within 60 days after the effective date of the franchise agreement, a detailed test plan describing the methods and schedules for testing the cable communications system on an ongoing basis to determine compliance with the provisions of the franchise agreement. The tests for basic subscriber television services shall be performed periodically, at intervals no greater than six months, on a minimum of 20 subscriber television receivers located throughout the service area. At least eight of such locations shall be at the far end of the distribution trunk cables. The tests shall be witnessed by representatives of the grantor, and written test reports shall be submitted to the grantor. If more than 10% of the locations tested fail to meet the performance standards, the grantee shall be required to indicate what corrective measures have been taken, and the entire test shall be repeated for at least 20 different locations. A second failure of more than 10% may result, at the grantor's option, in an order to reduce subscriber rates due to degraded service.

(D) Special tests. At any time after the commencement of service to subscribers, the grantor may require additional tests, full or partial repeat tests, different test procedures, or tests involving a specific subscriber's terminal. Requests for such additional tests shall be made on the basis of complaints received or other evidence indicating an unresolved controversy or significant noncompliance, and such tests will be limited to the particular matter in controversy. The grantor shall endeavor to so arrange its requests for such special tests so as to minimize hardships or inconvenience to the grantee or to subscribers.

('65 Code, § 7-8.711) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

(A) Interconnection required. The grantee shall interconnect origination and access channels of the cable communications system with any or all other cable systems in adjacent areas upon the directive of the grantor. The interconnection of systems shall permit the interactive transmission and reception of program material and may be done by direct cable connection, microwave link, satellite or other appropriate method.

(B) Interconnection procedure.

(1) Upon receiving the directive of the grantor to interconnect, the grantee shall immediately initiate negotiations with the other affected system or systems. The cost shall be borne by both grantees, in the proportion of the number of channels received to the total number of channels transmitted and received, under the assumption that benefits accrue primarily through the receipt of additional channels.

(2) In the case of regional or state-wide interconnection, the same principle shall apply.

(C) Relief. The grantee may be granted reasonable extensions of time to interconnect, or the grantor may rescind its order to interconnect upon a petition by the grantee to the grantor. The grantor may grant such request if it finds that the grantee has negotiated in good faith and has failed to obtain an approval from the system or systems of the proposed interconnection or that the cost of the interconnection would cause an unreasonable or unacceptable increase in subscriber rates.

(D) Cooperation required. The grantee shall cooperate with any interconnection corporation, regional interconnection authority or city, county, state or federal regulatory agency which may be hereafter established for the purpose of regulating, financing or otherwise providing for the interconnection of cable systems beyond the boundaries of the franchise territory.

(E) Initial technical requirements to assure future interconnection capability.

(1) All cable communications systems receiving franchises to operate within the franchise territory shall use the same frequency allocations for commonly provided television signals.

(2) The grantee shall provide local origination equipment which is compatible throughout the area so that video cassettes or video tapes can be shared by various systems. ('65 Code, § 7-8.712) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall provide subscribers, upon request, at no charge, with a parental control locking device or digital code which permits inhibiting the viewing of selected channels. ('65 Code, § 7-8.713) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

SERVICE PROVISIONS

The grantee shall provide, as a minimum, the services listed in the franchise agreement. Such services shall not be reduced without the prior approval of the grantor. ('65 Code, § 7-8.801) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The basic subscriber television service shall include the FCC required services, the distant television broadcast signals, the imported non-broadcast signals, and the provision of all other cablecast open-channel signals. Such service shall be provided to all subscribers at the established BSTS monthly subscription rates. ('65 Code, § 7-8.802) (Ord. 244-C.S., passed - - )

The basic subscriber radio service shall include the provision of all audio services designated in the franchise agreement, including broadcast FM radio and cablecast FM signals. Such service shall be provided to all subscribers at the established BSRS monthly subscription rates. ('65 Code, § 7-8.803) (Ord. 244-C.S., passed - - )

If specified in the franchise agreement, the institutional service shall include the provision of transmission and/or reception services to institutional users on a leased channel basis at established IS rates. Such services may include the distribution of video or non-video signals.

('65 Code, § 7-8.804) (Ord. 244-C.S., passed - - )

Additional subscriber services, not included in the BSTS and BSRS services specified in this subchapter, may be provided, either within the basic subscription rates, or on a premium basis, subject to applicable FCC regulations.

('65 Code, § 7-8.805) (Ord. 244-C.S., passed - - )

The grantee shall operate the cablecasting studios on a high-quality, professional basis for the purpose of providing cablecast programming responsive to local needs and interests. The emphasis for the local origination channels shall be on providing programming which is unavailable to viewers on broadcast television channels. ('65 Code, § 7-8.806) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall provide at least one channel for the use of the grantor at no charge to the grantor. The grantee shall make every effort to provide advice and technical expertise to aid in the utilization of such channel.

('65 Code, § 7-8.807) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall provide at least one channel for the use of the local educational institutions at no charge. The grantee shall make every effort to provide advice and technical expertise to aid in the utilization of such channel.

('65 Code, § 7-8.808) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall make at least one channel available to the public at no charge. The public access channel shall be managed and operated by an independent, nonprofit entity, the Access Channel Manager, as described in this chapter. The grantee shall make available for programmers of the public access channel the facilities listed in the franchise agreement under the terms of a mutual agreement with the Access Channel Manager.

('65 Code, § 7-8.809) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

If the cable communications system includes a closed-circuit institutional network, the grantee shall make at least one two-way channel available for community and public use at no charge. The community access channel shall be managed and operated by the Access Channel Manager. The grantee shall make available for programmers of the community access channel the facilities listed in the franchise agreement under the terms of a mutual agreement with the Access Channel Manager. ('65 Code, § 7-8.810) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantee shall make available for lease, on a nondiscriminatory basis, the number of channels specified in the franchise agreement. The grantee shall not use its franchise position to deny leased access to others who may wish to offer a non-entertainment service competitive to a service provided by the grantee. All leased channel service revenues at the subscriber level shall be included in the gross revenues subject to the franchise fee. Such revenues shall include monthly or per-use fees charged to users of services by lessees, but shall not include direct revenues generated by the sale of specific products offered by such services. ('65 Code, § 7-8.811) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantor may require that all dwelling units within the franchise area be connected physically to the cable system by the grantee by means of drop cables terminating at each dwelling unit, whether or not the occupants of the dwelling unit desire to subscribe to cable service. The cost and charges shall be determined by the grantor at the time such connection is required. The grantee shall be entitled to recover the incremental cost of providing a universal connection. ('65 Code, § 7-8.812) (Ord. 244-C.S., passed - - )

RIGHTS RESERVED TO GRANTOR

The grantor, in any lawful manner and upon the payment of a fair valuation, may lawfully purchase, condemn, acquire, take over, and hold the property and plant of the grantee in whole or in part. If such purchase or taking over shall be upon the revocation of the franchise or at the expiration of the term of the franchise, such valuation shall not include any sum for the value of the franchise or grant under which such plant and property is being operated.

('65 Code, § 7-8.1001) (Ord. 244-C.S., passed - - )

(A) There shall be kept in the grantor's office a separate record for the franchise, which record shall show the following information. The grantee shall provide such information in such form as may be required by the grantor for such records:

(1) The true and entire cost of the construction of equipment, of maintenance, and of the administration and operation thereof; the amount of stock issued, if any; the amount of cash paid in, the number of par value shares, and the amount and character of indebtedness, if any; the rate of taxes and the dividends declared; the character and amount of all fixed charges; the allowance, if any, for interest, wear and tear, or depreciation; and all amounts and sources of income;

(2) The amount collected annually from the grantor treasury and the character and extent of the service rendered therefor to the grantor; and

(3) The amount collected annually from other users of service and the character and extent of the service rendered therefor to them.

(B) The books of records kept by the grantor shall be open to public examination at any time during the business hours of the grantor's office. The information, in addition to any further data which may be required by the grantor, shall be furnished by the grantee to the grantor upon request and at the grantee's own cost and expense.

(C) The grantor shall have the right to inspect all books, records, maps, plans, income tax returns, financial statements, and other like material of the grantee at any time during normal business hours.

('65 Code, § 7-8.1002) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999

The grantor shall have the right to inspect all construction or installation work performed subject to the provisions of the franchise and to make such tests as the grantor shall find necessary to ensure compliance with the terms of the franchise and other pertinent provisions of law. ('65 Code, § 7-8.1003) (Ord. 244-C.S., passed - - )

The grantor shall have the right of intervention in any suit or proceeding to which the grantee is a party, and the grantee shall not oppose such intervention by the grantor. ('65 Code, § 7-8.1004) (Ord. 244-C.S., passed - - )

At the expiration of the term for which the franchise is granted, or upon its revocation or expiration as provided for in this chapter, the grantor shall have the right to require the grantee to remove, at its own expense, all portions of the cable communications system from all streets and public ways within the franchise area. ('65 Code, § 7-8.1005) (Ord. 244-C.S., passed - - )

RIGHTS RESERVED TO THE GRANTEE

Should the grantee become dissatisfied with any material decision or ruling of the grantor pertaining to cable communications matters, the grantee may pursue such other remedies as are available, including the bringing of action in any court of competent jurisdiction. ('65 Code, § 7-8.1101) (Ord. 244-C.S., passed - - )

FRANCHISE APPLICATIONS

Applicants for a franchise shall submit to the grantor written applications utilizing the standardized format provided by the grantor, at the time and place designated by the grantor for accepting applications, and including the designated application fee.

('65 Code, § 7-8.1501) (Ord. 244-C.S., passed - - )

Costs to be borne by the grantee shall include, but shall not be limited to, all costs of the publication of notices prior to any public meeting provided for pursuant to the franchise, the publication of the ordinance adopting this chapter, and any cost not covered by the application fees incurred by the grantor in its study, preparation of proposal documents, evaluation of all applications, and processing of the franchise agreement.

('65 Code, § 7-8.1502) (Ord. 244-C.S., passed - - )

STATE VIDEO FRANCHISES

(A) No person may construct, operate, maintain or repair a cable system or video service provider’s network in the city without first obtaining a state franchise therefor.

(B) A state franchise shall not convey rights other than as specified in this chapter or in the California Public Utilities Code or other applicable law; and no rights shall pass by implication.

(C) Except as otherwise provided by the California Public Utilities Code, a state franchise shall not include, or be a substitute for:

(1) Compliance with generally applicable requirements for the privilege of transacting and carrying on a business within the city, including, but not limited to, compliance with the conditions that the city may establish before facilities may be constructed for, or providing non-video services;

(2) Any permit or authorization, other than a state franchise, required in connection with operations on or in public rights-of-way or public property, including, but not limited to, encroachment permits, street work permits and street cut permits; and

(3) Any permit, agreement or authorization for occupying any other property of the city or of any private person to which access is not specifically granted by the state franchise.

(D) Except as otherwise provided in the California Public Utilities Code, a state franchise shall not relieve a franchisee of its duty to comply with all laws, including the ordinances, resolutions, rules, regulations and other laws of the city, and every state franchisee shall comply with the same. The city reserves its rights to the lawful exercise of police and other powers the city now has or may later obtain.

(E) The city reserves the right to construct, operate, maintain or repair its own cable system or video service provider network. (Ord. 580-C.S., passed 11-4-08)

As permitted by Cal. Pub. Util. Code § 5870, the city hereby continues and establishes the following fees.

(A) Any state video franchise holder operating within the boundaries of the city shall pay a fee to the city equal to 5% of the gross revenues of that state video franchise holder. (B) Effective the first date on which state franchisees begin operating within the boundaries of the city, each state franchisee shall pay a fee to the city equal to 1% of gross revenues (“PEG Fee”) of that state video franchise holder to support capital equipment and operations expenditures used for public, education and governmental (“PEG”) activities within the city.

(C) The PEG Fee shall be paid quarterly no later than 60 days following the quarter for which the payment is due. The PEG Fee is in addition to the franchise fee to be paid to the city by the state video service franchise holders.

(D) Gross revenue, for the purposes of divisions (A) and (B) above, shall have the definition set forth in Cal. Pub. Util. Code § 5860.

(Ord. 580-C.S., passed 11-4-08; Am. Ord. 649, passed 2-5-19)

(A) Any holder of a state video service franchise shall comply with all applicable state and federal customer service and protection standards pertaining to the provision of video service.

(B) The city will provide any holder of a stale video franchise written notice of any material breach of applicable customer service and protection standards, and will allow the franchise holder at least 30 calendar days from the receipt of the notice to remedy the specified material breach. A material breach that is not remedied by the state video franchise holder within the remedy period shall subject the state video franchise holder to the following penalties to be imposed by the city:

(1) For the first occurrence of a material breach, a penalty of $500 for each day of each material breach, not to exceed $1,500 for each occurrence of a material breach;

(2) For the second violation of the same nature within 12 months, a penalty of $1,000 for each day of each material breach, not to exceed $3,000 for each occurrence of the material breach; and

(3) For a third or further violation of the same nature within 12 months, a penalty of $2,500 for each day of each material breach, not to exceed $7,500 for each occurrence of the material breach.

(C) Any notice and any penalty may be issued or imposed by the City Manager or designee. Any notice shall be in writing. Notices shall be transmitted by United States Postal Service certified or registered mail, return receipt requested and postage prepaid, or by private commercial delivery or courier service for same day or next business day delivery with delivery and receipt signature required.

(D) The state video service franchise holder may appeal any finding of material breach or imposition of penalties to the City Council. Any appeal must be made within ten calendar days of receipt by the state video service franchise holder of the finding of material breach or the imposition of penalties, and must be submitted in writing to the City Clerk and the City Manager or their designee in order to be placed on a City Council agenda for consideration. Any appeal must contain a detailed explanation of why the appellant believes that the finding of material breach or the imposition of penalties was inconsistent with statutory requirements.

(E) The city and any state video service franchise holder may mutually agree to extend the time periods specified herein. Any such agreement shall be in writing and executed by the City Manager or designee and by an authorized representative of the state video franchise holder.

(F) Any penalty imposed on a state video franchise holder shall be paid to the city. As provided for in Cal. Pub. Util. Code § 5900(g), the city shall submit one-half of all penalties received from a state video franchise holder to the Digital Divide Account established by Cal. Pub. Util. Code § 280.5. (Ord. 580-C.S., passed 11-4-08)

(A) As provided by Cal. Pub. Util. Code § 5885, the city shall either approve or deny an application from a state video service franchise holder for an encroachment permit within 60 days of receiving a completed application.

(B) For purposes of this section, an ENCROACHMENT PERMIT means any permit issued by the city relating to construction or operation of facilities relating to the provision of video service under a state video service franchise.

(C) An application for an encroachment permit is considered complete when the applicant has complied with all statutory requirements for such an application, including those of the California Environmental Quality Act, Cal. Public Resources Code §§ 21000 et seq., Chapter 150 of this code and other applicable ordinances of the city.

(D) Any city denial of an application for an encroachment permit shall be in writing and shall contain a detailed explanation of the reason for the denial.

(E) An applicant whose application for an encroachment permit has been denied may appeal the denial to the City Council. Any appeal must be made within 14 calendar days of receipt by the state video service franchise holder of the denial, and must be submitted in writing to the City Clerk and the City Manager in order to be placed on the City Council agenda for consideration. Any appeal must contain a detailed explanation of why the applicant believes that the denial was inconsistent with statutory requirements. (Ord. 580-C.S., passed 11-4-08)

(A) See §§ 112.100 through 112.102 for violations of the franchise agreement and applicable penalties and § 112.134 for construction violations.

(B) Any person convicted of violating any provision of § 112.010 shall be subject to a fine of not more than $1,000 for each offense. Each day's violation of this section shall be considered a separate offense. ('65 Code, § 7-8.1409(b)) (Ord. 244-C.S., passed - - )