Simi Valley Municipal Code Ch. 10 Cable Television Systems

* Sections 5-10.01 through 5-10.19, codified from Ordinance No. 210, as amended by Ordinance No. 230, effective November 27, 1975, Ordinance No. 571, effective June 20, 1984 and Ordinance No. 584, effective October 31, 1985, amended in their entirety by Ordinance No. 719, effective January 4, 1990.

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

(a) "Additional subscriber service" shall mean any service not included in "basic cable service," or "basic subscriber radio service" or "institutional service," including, but not limited to, pay-cable.

(b) "Basic subscriber radio service" shall mean the provision to all subscribers of such audio programs as the re-transmission of broadcast frequency (FM) radio signals, the re-transmission of shortwave, weather, news, time and other similar audio information and the transmission of cablecast audio signals all provided to subscribers at a monthly rate.

(c) "Basic cable service" shall mean any service tier which includes the transmission of local television broadcast signals.

(d) "Broadcast signal" shall mean a television or radio signal that is transmitted over the air on a UHF or VHF frequency to a wide geographic audience and is received by a cable communications system by microwave link, by satellite receiver, or by other means.

(e) "Cable communications system" or "system," also referred to as "cable television system," "cable system," "CATV system," or "community antenna TV system" shall mean a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video, audio programming, and which is provided to multiple subscribers within a community but such terms do not include:

(1) A facility that serves only to retransmit the television signals of one or more television broadcast stations unless such facility or facilities uses any public right-of-way;

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

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

(4) Any facilities of any electric utility used solely for operating its electric utility system.

(f) "Cable-mile" shall mean a linear mile of signal carrying cable as measured on the street or easement from pole to pole or pedestal to pedestal.

(g) "Cable service" shall mean the total of the following:

(1) The one-way transmission to subscribers of video programming or other programming service; and

(2) Subscriber interaction, if any, which is required for the selection of such video programming or other programming service.

(h) "Channel" or "cable channel" shall mean a portion of the electromagnetic spectrum which is capable of delivering a television channel as defined by the Federal Communications Commission as of the date of enactment of this chapter.

(i) "City" shall mean the City of Simi Valley, a municipal corporation of the State, in its present incorporated form or in any later reorganized, consolidated, enlarged, or reincorporated form.

(j) "City Manager" shall mean the City Manager of the City or his designee.

(k) "Closed-circuit" or "institutional service" shall mean such video, audio, data and other services provided to institutional users on an individual, private channel basis. These may include, but not be limited to, two-way radio, audio or digital signals among institutions, or from institutions to residential subscribers.

(l) "Council" shall mean the present governing body of the City or any future board constituting the legislative body of the City.

(m) "Franchise" shall mean and include any nonexclusive authorization, or renewal thereof, granted pursuant to the provisions of this chapter whether such authorization is designated as a franchise, privilege, permit, license, resolution, contract, certificate, agreement, or otherwise, which authorizes the grantee to construct, operate, and maintain a cable television system within all or a specified area in the City including but not limited to the use of any and all City rights-of-way, whether by fee or easement. 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, County, State or Federal Governments.

(n) "Franchise fee" shall mean the fee paid by the grantee to the City in consideration of the use of the public streets and rights-of-way, and shall comprise five (5%) percent of the gross annual cable service receipts as defined in this chapter.

(o) "Grantee" shall mean the person, firm, or corporation granted a non-exclusive franchise by the Council pursuant to the provisions of this chapter and the lawful successor, transferee, or assignee of such person, firm, or corporation.

(p) Deleted by § 3, Ord. 987, eff. January 4, 2001.

(q) Deleted by § 3, Ord. 987, eff. January 4, 2001.

(r) Deleted by § 3, Ord. 987, eff. January 4, 2001.

(s) Deleted by § 3, Ord. 987, eff. January 4, 2001.

(t) "Gross annual cable service receipts" shall mean the annual gross receipts received directly or indirectly by a grantee from the provision of cable service within the City utilizing public rights-of-way for which a franchise is required. Gross annual cable service receipts shall include, but not be limited to, subscriber revenue, equipment charges, late fees, advertising revenue, home shopping revenue, and franchise fee revenue. Gross annual cable service receipts shall not include refundable deposits, rebates or credits, or any sales, excise or other taxes or charges imposed externally to the franchise, and collected for direct pass-through to local, state, or federal government.

(u) "Leased channel" or "leased access channel" shall mean any channel available for lease and programmed by persons or entities other than the grantee.

(v) "Local origination channel" shall mean any channel where the grantee is the primary designated programmer, and provides video and/or live programs to subscribers.

(w) "Nonbroadcast signal" shall mean a signal that is transmitted by a cable communications system and that is not transmitted in an over-the-air broadcast transmission path.

(x) "Penetration" shall mean the result (expressed as a percentage) obtained by dividing the total number of potential subscribers in the franchise area into the number of subscribers receiving service.

(y) "Person" shall mean any natural person and all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, and societies.

(z) "Potential subscriber" shall mean any person or entity not subscribing to cable communications system services whose residence, business or other facility is passed by cable and is capable of being connected to the cable system.

(aa) "Property of the grantee" shall mean any property owned, installed, or used within the City by the grantee in the conduct of a cable television system business under the authority of a franchise granted pursuant to the provisions of this chapter.

(bb) "Public access channel" or "community access channel" shall mean any so designated channel where any member of the general public or any non-commercial organization may be a programmer, without charge, on a first-come, first-served, nondiscriminatory basis, in accordance with the terms of the franchise agreement.

(cc) "Service area" shall mean the entire geographic area within the franchise territory.

(dd) "Service tier" shall mean a category of cable service or other services provided by a grantee for which a separate rate is charged by the grantee.

(ee) "Street" shall mean the surface, the airspace above the surface, and the area below the surface of any public street, other public right-of-way, or public places, including public utility easements.

(ff) "Subscriber" or "user" shall mean any person or entity lawfully receiving for any purpose any service of the grantee's cable television system, including, but not limited to, the conventional cable television system service of the retransmission of television broadcasts, radio signals, the grantee's original cablecasting, and the local government, education, and public access channels; and other services, such as the leasing of channels, data and facsimile transmissions, pay television, and police, fire, and similar public service communication.

(§ 2, Ord. 719, eff. January 4, 1990, as amended by §§ 1, 3, Ord. 987, eff. January 4, 2001)

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

In the event that the City shall grant to the grantee a nonexclusive franchise to construct, operate, maintain, and reconstruct a cable communications system within the franchise area, said 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 "Applications for Franchise" that are accepted by the grantee and adopted as part of the franchise agreement by the City. The term of such franchise shall be for a term not to exceed fifteen (15) years.

Any franchise granted is hereby made subject to the provisions of this chapter now in effect or hereafter made effective. Nothing in the franchise agreement shall be deemed to waive the requirements of the various laws and regulations of the City regarding permits, fees to be paid or manner of construction.

(§ 2, Ord. 719, eff. January 4, 1990)

When and in the event the grantee of any franchise granted pursuant to the provisions of this chapter uses in his cable television system distribution channels furnished to the grantee by a telephone company pursuant to a tariff or contract on file with a regulatory body having jurisdiction, and the grantee makes no use of the streets independent of such telephone company-furnished facilities, the grantee shall be required to comply with all of the provisions of this chapter as a "licensee" and, in such event, whenever the term "grantee" is used in this chapter, it shall be deemed to mean and include "licensee."

(§ 2, Ord. 719, eff. January 4, 1990)

(a) Applications: Soliciting. The Council may, by advertisement or any other means, solicit and call for applications for cable television system franchises and may determine and fix any date upon or after which such applications shall be received by the City, or the date before which such applications shall be received, or the date after which such applications shall not be received, and may make any other determinations and specify in any other times, terms, conditions, or limitations respecting the soliciting, calling for, making, and receiving of such applications.

(b) Applications: Form: Fee. Each application for a franchise to construct, operate, or maintain any cable television system in the City shall be filed with the City Clerk and shall contain or be accompanied by the following:

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

(2) A detailed statement of the corporate or other business entity organization of the applicant, including, but not limited to, the following and to whatever extent required by the City:

(i) The names and business addresses of all officers, directors, and associates of the applicant,

(ii) The names and business addresses of all officers, persons, and entities having, controlling, or being entitled to have or control five (5%) percent or more of the ownership of the applicant firm and the respective ownership share of each such person or entity,

(iii) The names and addresses of any parent or subsidiary of the applicant, namely, any other business entity owning or controlling the applicant firm in whole or in part, or owned or controlled in whole or in part by the applicant, and a statement describing the nature of any such parent or subsidiary and the areas served thereby,

(iv) A detailed description of all previous experience of the applicant in providing cable television system service and in related or similar fields,

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

(vi) A statement identifying by name, place, address, and telephone number any other cable television franchises awarded to the applicant or its parent or subsidiary;

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

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

(ii) A statement or schedule setting forth all the proposed classifications of rates and charges to be made against the subscribers, and all the rates and charges as to each of such classifications, including the installation and service charges,

(iii) A detailed, informative, and referenced statement describing the actual equipment and operational standards proposed by the applicant. In no event shall such operational and performance standards be less than those contained in Title 47, Subpart K (Sections 76.601 et seq.), Rules and Regulations, Federal Communications Commission, adopted February 2, 1972, and as amended,

(iv) A copy of the form of any agreement, undertaking, or other instrument proposed to be entered into between the applicant and any subscriber, identifying the City of Simi Valley Environmental Services Department as the monitor of the franchise and explaining how customers can contact City staff in the event of problems which cannot be resolved by the grantee, and

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

(4) A copy of an existing agreement covering the franchise area between the applicant and any public utility subject to regulation by the Public Utilities Commission of the State providing for the use of any facilities of the public utility, including, but not limited to, poles, lines, or conduits;

(5) Any other details, statements, information, or references pertinent to the subject matter of such application which shall be required or requested by the Council or by any provision of any other law of the City; and

(6) For either a new franchise or a franchise renewal, costs to be borne by the applicant(s) shall include, but shall not be limited to, all costs of publication of notices prior to any public meeting provided for pursuant to an ordinance or franchise agreement, development and publication of relevant ordinances and franchise agreement, fees, and any costs not covered by the application fees, incurred by the City in its study, preparation of proposal solicitation documents, evaluation of all applications, including but not limited to consultant and attorney fees and City staff time. In the case of franchise renewals, an estimate of anticipated costs shall be submitted to the Grantee prior to the City's initiating the renewal review process. In the case of an application for a new franchise, the Environmental Services Director shall determine the sum of such actual costs upon the completion of the City's study, investigation, and application processing. Payment thereof shall be made within thirty (30) days after the City furnishes the franchise or renewal applicant with a written statement of such expenses.

(c) Application: Processing. Upon the receipt of any application for a franchise or renewal, the Environmental Services Director shall prepare a report and make recommendations respecting such application to the Council within sixty (60) days.

(d) Applications: Council consideration. In making any determination as to any application, the Council shall hold a duly noticed public hearing to give due consideration to the quality of the service proposed, initial rates to the subscribers, franchise fees to the City, experience, character, background, and financial responsibility of the applicant and its management and owners, technical and performance quality of the equipment, willingness and ability to meet the construction and physical requirements and to abide by policy conditions, franchise limitations and requirements, and any other considerations deemed pertinent by the Council for safeguarding the interests of the City and the public. The Council, at its discretion shall determine the award of any franchise on the basis of such considerations and without competitive bidding.

(e) Granting or denial. If the Council shall determine that a franchise shall be denied, such determination shall be expressed by resolution and shall be final and conclusive, and the application shall be deemed rejected.

If the council shall determine that a franchise or renewal shall be granted, such determination shall be effective upon the adoption of a resolution granting or renewing a franchise to the applicant.

(f) Franchise required. No cable communications system shall be allowed to occupy or use the City's rights-of-way without a franchise in accordance with the provisions of this chapter.

(§ 2, Ord. 719, eff. January 4, 1990)

(a) Term. A franchise granted pursuant to the provisions of this chapter shall be for a term not to exceed fifteen (15) years. The effective date of the franchise shall be the date of adoption of the resolution by the City approving the franchise agreement.

(b) Termination.

(1) The City may terminate any franchise granted pursuant to the provisions of this chapter in the event of the failure, refusal, or neglect by the grantee to do or comply with any material requirement or limitation contained in this chapter or any material rule or regulation of the Council validly adopted following duly noticed public hearings.

(2) The City Manager, or the Environmental Services Director, may make a written demand that the grantee do or comply with any such requirement, limitation, term, condition, rule, or regulation. If the failure, refusal, or neglect of the grantee is not cured within thirty (30) days, after written notice has been mailed to the grantee, the City Manager may request the termination of the franchise before the City Council. The Council shall hold a duly noticed public hearing to consider the City Manager's request. The City Clerk shall cause to be served upon such grantee, at least thirty (30) days prior to the date of such Council meeting, a written notice of its intent to request such termination and the time and place of the meeting. The City Clerk shall also publish a notice of such a hearing, setting forth a time and place when and where any persons having any interest therein may appear before the Council and be heard, at least ten (10) days prior to the hearing in a newspaper of general circulation within the City.

(3) The Council shall consider the request of the City Manager, and shall hear any person interested therein, and shall thereupon determine, in its discretion, whether or not any failure, refusal, or neglect by the grantee warrants revocation of the franchise.

(4) If the Council determines that such failure, refusal, or neglect by the grantee was excusable, the Council shall direct the grantee to comply within such time and manner and upon such terms and conditions as are reasonable.

(5) If the Council shall determine such failure, refusal, or neglect by the grantee was inexcusable the Council may declare, by resolution, that the franchise of such grantee shall be terminated and forfeited, finally or conditionally in the Council's sole discretion.

(6) The termination and forfeiture of any franchise shall in no way affect any of the rights of the City under the franchise or any provisions of law.

(c) Periodic reviews. The City may review any existing franchise agreement and, following negotiations, and upon mutual agreement with the grantee may adopt, by resolution, any modifications in the franchise agreement which may be deemed reasonably necessary for the public health, safety, or welfare. Such resolution shall only be adopted after a duly noticed public hearing. The City Clerk shall publish a notice of any such hearing, setting forth a time and place when and where any persons having any interest therein may appear before the Council and be heard, at least ten (10) days prior to the hearing in a newspaper of general circulation within the City. The City Clerk shall also cause a copy of such notice to be mailed to the grantee at least ten (10) days prior to the hearing. At the request of either party and upon mutual agreement of both parties, such negotiation may also occur.

(d) Renewal. Any franchise granted pursuant to the provisions of this chapter may be considered for renewal by the Council pursuant to the provisions of Section 5-10.04 of this chapter and applicable law, upon the request of the grantee, in the same manner and upon the same terms and conditions as required by the provisions of this chapter for obtaining the original franchise, except those which are by their terms expressly inapplicable; provided, however, the Council may waive compliance with any or all of such requirements. The grantee shall make a request for franchise renewal not later than thirty (30) nor earlier than thirty-six (36) months prior to the expiration of the franchise. The renewal term of any franchise shall not be greater than the initial term.

(§ 2, Ord. 719, eff. January 4, 1990)

(a) In consideration of the granting and exercise of a franchise to use the City rights-of-way for the operation of a cable television system, any grantee may be required to pay to the City, during the life of the franchise, any or all of the following:

(1) The amount equal to five (5%) percent of its gross annual cable service receipts as defined in subsection 5-10.01(t).

(2) A percentage of other receipts as authorized by the Federal Communications Commission if any and levied by the City.

(b) The foregoing percentage payments shall be made in lawful money of the United States on or before April 1 of each year for operations during the preceding calendar year or as otherwise required by the Council. In the event that any franchise payment or recomputed amount is not made within ten (10) days of the dates specified herein, 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;

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

(c) The city shall have the right to inspect the grantee's revenue records under the franchise and the right of audit and recomputation of any and all amounts payable pursuant to the provisions of this chapter. The cost of such audit shall be borne by the grantee when such audit results in increasing, by more than five (5%) percent, the grantee's annual payment to the City.

(d) No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable pursuant to the provisions of this chapter or for the performance of any other obligation imposed by the provisions of this chapter.

(§ 2, Ord. 719, eff. January 4, 1990, as amended by § 2, Ord. 987, eff. January 4, 2001)

(a) Performance bonds: Surety agreements. Upon being granted a franchise the grantee shall file with the City Clerk and shall thereafter, annually, during the entire term of such franchise, maintain in full force and effect a corporate surety bond or other surety agreement in such amount and kind as shall have been required and approved by the Council.

The bond or agreement shall be so conditioned that, in the event the grantee shall fail to comply with any one or more of the provisions of this chapter or of such franchise, there shall be recoverable, jointly and severally from the principal and surety, any damages, losses, or costs suffered or incurred by the City as a result thereof, including the full amount of any compensation, indemnification, cost of removal or abandonment of any property, or other costs which may be in default, up to the full principal amount of such bond. Such condition shall be a continuing obligation during the entire term of such franchise and thereafter until the grantee shall have satisfied in full any and all obligations to the City which arise out of or pertain to such franchise. Neither the provisions of this section, nor any bond accepted by the City pursuant to the provisions of this section, shall be construed to excuse faithful performance by the grantee, or limit the liability of the grantee, under any franchise issued pursuant to the provisions of this chapter or for damages, either to the full amount or the bond, or otherwise.

(b) Hold harmless agreements. The grantee shall defend, indemnify and hold harmless the City and its officers, boards, commissions, agents, and employees against and from any and all claims, demands, causes of actions, actions, suits, proceedings, damages (including, but not limited to alleged civil rights or other constitutional rights, violations, defamation, damages to City property, damages arising out of copyright infringements, and damages arising out of any failure by the grantee to secure consents from the owners or authorized distributors or licensees of programs delivered by the grantee's cable television system), costs, or liabilities of every kind and nature whatsoever, including, but not limited to, damages for injuries or deaths or damages to persons or property, caused by any act or omission of the grantee and its officers, agents, and employees in the exercise of any of its rights or privileges under its franchise granted pursuant to the provisions of this chapter.

(c) Expense of litigation. In the event of any legal action between the grantee and the City arising out of any alleged breach by the grantee of any term or condition or provision of its franchise, the obtaining of any relief whatsoever, even if less than that requested shall entitle the City to recovery of reasonable attorney's fees and court costs related to the litigation.

(d) Insurance. Upon being granted a franchise, the grantee shall file City approved endorsements or a copy of insurance policies with the City Clerk and shall thereafter, during the entire term of such franchise, maintain in full force and effect at its own cost and expense general liability and automobile insurance in the amount of Five Million and no/100ths ($5,000,000.00) Dollars, for bodily injury or property damage from any one occurrence. The City, its officers, employees, and agents shall be named as additional insureds in any of such insurance policies. Said policies shall be written on an occurrence form and shall not be subject to cancellation or material modification except upon not less than thirty (30) days written notice to the City Clerk by certified mail. Aggregate limits policies or endorsements shall be accompanied by a listing of prior claims to enable the City to ascertain the adequacy of the pro-offered coverage.

(§ 2, Ord. 719, eff. January 4, 1990, as amended by § 1(C), Ord. 764, eff. December 19, 1991)

(a) Every franchise granted pursuant to the provisions of this chapter shall be nonexclusive.

(b) No privilege or exemption shall be granted or conferred by any such franchise except those privileges or exemptions specifically described in this chapter.

(c) Any privilege claimed under any such franchise by the grantee in any rights-of-way or other public property shall be subordinate to any prior lawful occupancy of the street or other public property.

(d) Any such franchise shall be a privilege to be held in personal trust by the original grantee. Such franchise cannot in any event be sold, transferred, leased, assigned, or disposed of, in whole or in part, either by force or involuntary sale, or by voluntary sale, bankruptcy, merger, consolidation, or otherwise, without the prior consent of the Council expressed by resolution. Such approval shall not be unreasonably withheld, and the Council may subject approval to conditions related to such transfer, merger or sale. Any such transfer or assignment shall be made only by an instrument in writing, such as a bill of sale or similar document, a duly executed copy of which shall be filed in the office of the City Clerk within thirty (30) days after any such transfer or assignment. Such consent of the Council may not be unreasonably refused; provided, however, the proposed assignee shall demonstrate financial responsibility as required by all the provisions of this chapter and approved by the City Council; and provided, further, no such consent shall be required for a transfer in trust, mortgage, or other hypothecation, in whole or in part, to secure an indebtedness, except that when such hypothecation shall exceed fifty (50%) percent of the market value of the property used by the franchise in the operation of the cable television system, the prior consent of the Council shall be required for such a transfer. Such consent shall not be withheld unreasonably.

In the event the grantee is a corporation, it shall notify the Council where ownership of more than fifty (50%) percent of the voting stock of the grantee is acquired by a person or group of persons acting in concert, none of whom already own fifty (50%) percent or more of the voting stock, singly or collectively. Any such acquisition shall require the approval of the Council which approval shall not be withheld unreasonably. Failure to comply with this provision shall be grounds for the termination of the franchise pursuant to the provisions of subsection (b) of Section 5-10.05 of this chapter.

(e) In the event that any franchise granted pursuant hereto should become an asset in bankruptcy, and during the pendency of said proceeding the grantee fails to maintain service levels as required hereby and by all other applicable law or the franchise agreement, City may initiate termination or revocation of the franchise as provided herein without regard to said bankruptcy proceeding, nor shall said proceeding stay or delay in any way the franchise revocation process.

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

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

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

(§ 2, Ord. 719, eff. January 4, 1990)

(a) Within thirty (30) days after the acceptance of any new franchise granted pursuant to the provisions of this chapter, the grantee shall proceed with due diligence to obtain all the necessary permits and authorizations which are required in the conduct of its business, including, but not limited to, any utility joint use attachment agreement, microwave carrier license, and any other permit, license, and authorization to be granted by duly constituted regulatory agencies having jurisdiction over the operation of cable television systems or associated microwave transmission facilities.

In connection therewith, copies of all petitions, applications and communications submitted by the grantee to the Federal Communications Commission in the course of obtaining a certificate of compliance shall be submitted upon request to the Director of Environmental Services.

(b) Within ninety (90) days after obtaining all the necessary permits, licenses, and authorizations, including rights of access to poles and conduits, the grantee shall commence the construction and installation of the cable television system.

(c) Within 180 days after the commencement of the construction and installation of the system, the grantee shall proceed to render service to the subscribers, and the completion of the installation and construction shall be pursued with reasonable diligence thereafter so that service to all of the areas designated and scheduled on the map and plan of construction made a part of the franchise shall be provided as set forth therein.

(d) The failure on the part of the grantee to commence and diligently pursue each of the requirements of this section and to complete each of the matters set forth in this chapter shall be grounds for the termination of such franchise. By resolution the Council, at its discretion, may extend the time for the commencement and completion of the installation and construction for additional periods in the event the grantee, acting in good faith, experiences delays by reason of circumstances beyond its control.

Failure to comply with the time requirements herein shall subject Grantee to penalties of One Thousand and no/100ths ($1,000.00) Dollars per day for each and every day's delay beyond the time prescribed.

(e) 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, unless and until first securing the written approval of the City Manager. Further, the undergrounding provisions of subsection (6) of subsection (d) of Section 5-10.10 of this chapter shall apply under this subsection. Any construction, installation, placement, replacement, or change which may be required shall be made at no expense of the City.

(f) The City shall have the right to make additional use, for any public or municipal purpose, whether governmental or proprietary, of any pole or conduit controlled or maintained exclusively by or for the grantee in any street provided such use by the City does not interfere with the use by the grantee.

(g) In those areas of the City where the transmission or distribution of the respective public utilities providing telephone communication, and electric services are underground, or hereafter are placed underground, the grantee likewise shall construct, operate, and maintain all of its transmission and distribution facilities underground. The term "underground" shall include a partial underground system; amplifiers in the grantee's transmission and distribution lines may be placed in appropriate housings upon the surface of the ground. Should technological advances be made during the term of a grantee's franchise which would allow flush mounted equipment that would provide the same or better service than above ground housings, and at such time that such equipment becomes cost effective and practical for the grantee to provide, and upon mutual agreement of the City and the grantee, the grantee shall utilize such equipment in all new projects. Should such equipment become available under the circumstances noted above, the grantee shall also when upgrading or repairing cable in an existing development, replace above ground housings with flush mounted housings or other visually less obtrusive equipment.

(h) The grantee, at its expense, shall protect, support, temporarily disconnect, relocate, or remove any property of the grantee when, in the opinion of the City Manager, the same is required by reason of traffic conditions, public safety, street vacations, freeway or street construction, changes or establishment of street grades, and the installation of sewers, drains, waterpipes, power lines, signal lines, transportation facilities, tracks, or any other types of structures or improvements by governmental agencies, whether acting in a 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 City shall undertake to cause all such properties to be located beneath the surface of the ground. The grantee shall in all cases have the privilege, subject to the corresponding obligations, to abandon any property of the grantee in place as provided in subsection (j) of this section. Nothing set forth in this section shall be deemed a taking of the property of the grantee, and it shall be entitled to no surcharge by reason of anything set forth in this section.

(i) Grantee shall be provided reasonable notice and an opportunity to cure any alleged defect, however, upon the failure, refusal, or neglect of the grantee to cause any work or other act required by law, this chapter, or the franchise agreement to be properly completed in, on, over, or under any street within any time prescribed, the City Manager may cause such work or other act to be completed in whole or in part and, upon so doing, shall submit to the grantee an itemized statement of the costs thereof. The grantee shall, within thirty (30) days after the receipt of such statement, pay to the City the entire amount thereof.

(j) In the event the use of any part of the system of the grantee is discontinued for any reason for a continuous period of thirty (30) days, without prior written notice to and approval by the City; or any part of such system has been installed in any street or other area without complying with the requirements of this chapter, or if any franchise shall be terminated, cancelled, or shall expire, the grantee shall, at the option of the City, and at the expense of the grantee and at no expense to the City, and upon the demand of the City, promptly remove from any rights-of-way or other area, all the property of the grantee, and the grantee shall promptly restore the rights-of-way, or other area from which such property was removed to such condition as previously existed.

The Council may, upon the written application therefor by the grantee, approve the abandonment of any of such property in place by the grantee and under such terms and conditions as the Council may prescribe. Upon the abandonment of any such property in place, the grantee shall cause to be executed, acknowledged, and delivered to the City such instruments as the City Attorney shall prescribe and approve transferring and conveying the ownership of such property to the City.

(§ 2, Ord. 719, eff. January 4, 1990)

(a) Basic services. The cable television system permitted to be installed and operated pursuant to the provisions of this chapter shall, as a minimum, provide the services listed in the franchise agreement, as well as the following:

(1) Be operationally capable of relaying to subscriber terminals all those local television and FM radio broadcast signals for the carriage of which the grantee is now or hereafter authorized by the Federal Communications Commission (not including "AM" radio broadcast signals);

(2) Be constructed with the capability of two (2) way digital signal transmission for interactive (i.e., banking, shopping, reservation services, etc.) or security services. This rule shall not require that the cable system be operational in the return mode, but requires that the return mode be available for future use without the need for significant rebuilding or delay. If at any time during the franchise term, the City and the grantee mutually find that the cable system can effectively provide a utility type service such as meter reading, and if the City further finds that it would be in the public interest to provide this service to all residents, the City may require that all dwelling units within the franchise area shall be connected physically to the cable system by the grantee by means of drop cable terminating at each dwelling unit. The cost and charges shall be determined by the City following discussion with the grantee prior to or at the time such connection is required. Grantee shall be entitled to recover the incremental cost of providing a connection and the designated service for which such a connection will be utilized;

(3) Distribute color television signals which it receives in color;

(4) Provide at least one channel for local government educational, public access, and leased channel access uses. A single channel for the combined use of the above will be acceptable until increased usage requires a greater number of channels. The City may require additional channel capacity if any such channel is in use at least eighty (80%) percent of the time during any consecutive three (3) hour period per day for seven (7) days a week for six (6) consecutive weeks.

(5) Provide local origination, cablecasting, and programming facilities for the community of Simi Valley on the channels required in subsection (4) of this section.

(6) Be operationally capable of relaying a minimum capacity of twenty (20) channels in all portions of the system.

(b) Nonbasic services. The cable television system permitted to be installed and operated pursuant to the provisions of this chapter may also engage in the business of and/or provide the following services:

(1) Transmitting television pictures, film, and videotape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers or subscribers;

(2) Transmitting and receiving all other signals: digital, voice, and audiovisual.

(c) Other services.

(1) The grantee shall maintain and operate a cablecasting studio for use by residents in producing local origination programming, in accordance with the regulations established by the Cable Communications Policy Act of 1984.

(2) The grantee shall cablecast, at their expense, regular weekly City Council meetings.

(3) The system shall include an emergency alert capability which shall permit the City to override all television channels simultaneously in the case of Civil Defense or disaster emergencies. A grantee shall also designate a video channel which will be used for emergency broadcasts, which designation shall be included in the franchise agreement.

(4) The grantee shall provide maximum practicable availability of the services and facilities of the system to handicapped persons. At a minimum the grantee shall provide at no additional cost a remote control device to those subscribers who are paraplegic or quadriplegic. Within six (6) months after the effective date of this agreement, the grantee shall submit to the City a plan and/or report describing the equipment, facilities and on-going services the grantee intends to or does make available to the handicapped persons. Such information regarding the facilities, equipment and on-going services for handicapped persons shall be kept updated and the grantee shall promptly submit to the City notification of any deletion or additions to such information.

(5) The grantee shall provide rental or purchase equipment which facilitates the reception of all basic services by hearing impaired subscribers. The grantee shall also provide TDD (or equivalent) equipment at the grantee office that will allow such subscribers to contact the grantee for any reason related to the system.

(d) Service policies.

(1) Franchise boundaries. All residences within the franchise boundary established by the City shall be offered services in accordance with the conditions set forth in this chapter.

(2) System expansion: Isolated subscribers.

(i) The grantee shall extend cable television service to any isolated residence at the standard rate if:

(aa) The resident requests the service extension; and

(ab) The service connection to the isolated residence would require no more than a standard 100 foot aerial drop.

(ii) The grantee shall extend cable television transmission facilities and equipment to any isolated residence requiring more than a standard 100 foot aerial drop at a premium installation charge if such service has been requested by the resident directly or through the City Manager or the Director of Environmental Services. The premium installation charge shall be the actual cost for the distance exceeding 100 feet. The grantee may request an advance payment for such installation.

(3) System expansion: Existing developments.

(i) The grantee shall extend cable television services to any existing development or group of residences for its standard installation charge if:

(aa) The City Council has approved such extension as being in the best interests of the community health, safety, and welfare; and

(ab) The existing development or group of residences to be served has a density of at least seventy-five (75) residences per strand mile or trunk line cable installed; and

(ac) Fifty (50%) percent of the residences within the development or group of residences to be served has agreed to subscribe to receive cable services.

(ii) Any development or group of residences not meeting any or all of the requirements set forth in subsections (aa), (ab), and (ac) of this subsection may be served at the grantee's discretion.

(iii) The grantee shall submit to the Director of Environmental Services routing plans for the trunk line cable extensions required by the provisions of this subsection. The routing submitted shall be deemed satisfactory unless the Director of Environmental Services expressly disapproves it and sets forth in writing his/her reasons for disapproval within sixty (60) days after the receipt of the plan.

(iv) For all expansions pursuant to the provisions of this chapter, the grantee shall show proof of having obtained all the necessary right-of-way easements over private property.

(v) For planned service upgrades, residents in the area to be upgraded shall, at a minimum, be made aware of the planned work through mailed notices to residents at least two (2) weeks prior to initiation of the work. Residents shall also be reminded of the planned work through posting of the residence by way of a door hanger not less than three (3) days prior to the actual construction.

(4) System expansion: New developments.

(i) In cases of new construction or property development where utilities are to be placed underground, the grantee shall extend energized or unenergized cable, or conduit, to the boundaries of all new residential developments as they are constructed. The developer shall extend said energized or unenergized cable, or conduit, from the development boundary to each dwelling unit therein. The costs of conduit, pedestals, and/or vaults and laterals, within the boundaries of the development initially shall be borne by the developer and/or landowner and shall be reimbursable by the grantee. The developer shall prewire all studio units with a minimum of one outlet, one-bedroom units with a minimum of two (2) outlets, and all other dwelling units with a minimum of three (3) outlets. Prewiring within dwelling unit structures shall not be subject to reimbursement from the grantee. All installations and construction by the developer and/or landowner shall be to specifications of the grantee. The reimbursement for the costs of the conduit, pedestals, and/or vaults and laterals, shall be based on the written estimate for such materials submitted to and approved by the grantee in advance of purchase or installation of such equipment. In the event of a dispute between the developer and/or landowner and grantee concerning the amount of said reimbursement, developers and/or landowners and grantee shall submit the disagreement to binding arbitration in accordance with the rules of the American Arbitration Association; cost for such arbitration shall be equally borne by the parties. Grantee shall not be required to reimburse or in any other way compensate developer and/or landowner for easements, rights-of-way, or labor costs, nor shall grantee be required to provide service where the property owner demands payment for access.

(ii) The grantee shall submit to the Director of Environmental Services routing plans for the trunk line cable expansion required by the provisions of this subsection. The routing submitted shall be deemed satisfactory, unless the Environmental Services Director expressly disapproves it and sets forth in writing his/her reasons for disapproval within (60) days after the receipt of the plan.

(iii) Upon a request for service from any person residing in the franchise area, the grantee, within thirty (30) days after service is available to the area of the request, shall furnish the requested service.

(5) System expansion: Limitations.

(i) No provision of this chapter shall require the grantee to extend in any twelve (12) month period trunk and/or distribution lines more than ten (10) cable miles. Requests for system extensions in excess of this limitation may be deferred, at the grantee's option, to the next twelve (12) month period. Should the grantee elect to extend the system in excess of this limitation, credit for such extension shall be made against extension requirements in the next twelve (12) month period.

(ii) Upon a petition by the grantee, the Council may defer or indefinitely suspend any expansion required by this chapter after a showing by the grantee that such expansion would cause an unreasonable financial hardship to the grantee. Such a showing shall be made by the Council after a public hearing. The City Clerk shall publish a notice of any such hearing, setting forth a time and place when and where any person having any interest therein may appear before the Council and be heard, at least ten (10) days prior to the hearing in a newspaper of general circulation within the City. The City Clerk shall also cause a copy of such notice to be mailed to the grantee at least ten (10) days prior to the hearing.

(6) Undergrounding. For any system expansion in existing developments, the grantee shall place the cable system underground in localities where both telephone and power lines are underground. For existing facilities, the grantee shall replace aerial facilities with underground facilities concurrently and in cooperation with similar programs of the telephone and power utilities. The term "underground" shall include a partial underground system as defined in Section 5-10.09(g).

At no time shall the cable system be the only aerial facility. Where undergrounding is required, the grantee shall be encouraged to share the utility trenches.

(7) System expansion: Right-of-way. For all expansions pursuant to the provisions of this chapter, the grantee shall show proof of having obtained all the necessary right-of-way easements over private property.

(e) Subscriber complaints and customer relations. In addition to other service regulations adopted by the Council, and excepting circumstances beyond the grantee's control, such as acts of God, riots, and civic disturbances (including labor disturbances), and in providing the foregoing services, the following conditions shall be met:

(1) Correcting malfunctions. The grantee shall limit system malfunctions to minimum time duration by locating malfunctions and initiating corrective action promptly, but in no event longer than twenty-four (24) hours after an occurrence, irrespective of holidays or other nonbusiness hours.

(2) Demonstrating signal strengths. The grantee, upon a complaint by a subscriber and at the request of the Environmental Services Director, shall make a demonstration satisfactory to the Environmental Services Director that a signal is being delivered which is of sufficient strength and quality to meet the standards set forth in the regulations of the Federal Communications Commission.

(3) Subscriber complaints and customer relations. The grantee shall maintain a repair force of technicians capable of responding to subscriber complaints regarding outages and poor quality picture reception five (5) days a week. The grantee shall provide standby technicians as needed on Saturdays, Sundays, and holidays. Calls for service shall be responded to within twenty-four (24) hours.

(4) Complaint procedures.

(i) Receipt of complaints. The grantee shall maintain a local office which is open at a minimum to receive complaints Monday through Friday, except holidays, between 8:00 a.m. and 4:30 p.m. A person shall be designated to receive complaints and to inform the City and the public of the office location, hours of business, and the local telephone number. The grantee shall provide an answering service to receive complaints at all other times. The grantee shall respond within twenty-four (24) hours to all complaints regarding outages and poor quality picture reception. The grantee shall provide a pre-designated block of time for subscriber service appointments. The pre-designated service appointments shall, at a minimum, be scheduled in the morning hours or in the afternoon hours with priority for next day or next "available time" service appointment given to subscribers who are not scheduled within the aforementioned schedule. Complaints regarding billing or other nontechnical issues shall be responded to by no later than the next business day. The scheduling of a service technician or other definitive action on the part of grantee shall evidence a response.

The Environmental Services Director, or/his or/her designated representative, shall assist in the resolution of customer complaints. Citizens, if they fail to receive a timely response from the grantee, may request such assistance. The grantee shall advise all new subscribers in writing of the complaint process set forth in this subsection.

(ii) Subscriber contact logs. The grantee shall implement subscriber contact logs in which all calls from customers, dates complaints were filed, response dates from the grantee, and the date and nature of problems/resolution shall be recorded in a format approved by the City. Service calls in response to problems which recur within a week shall be flagged with an asterisk. The logs shall be submitted to the City for review on a quarterly basis. Quarterly logs are due to the Environmental Services Department by the fifteenth (15th) day following the end of each quarter. The City, in addition, will maintain a cable complaint log of those calls received directly from customers lodging a concern.

The City may conduct a random sample of the grantee's subscriber contact logs regarding the procedure, response, and resolution of complaints as well as a comparative analysis of the grantee's logs with the calls received by the City within thirty (30) days after its receipt. In the event a pattern of consistent complaints appears to be surfacing during the review, the City will notify the grantee of the concerns at the earliest possible time so that the issues can be resolved. Quarterly logs will be utilized by the City as a basis for reviewing customer complaints at the annual review.

(iii) Response to customer complaints. The grantee shall be responsible for the resolution of all customer complaints and shall maintain on the subscriber contact logs a listing of the dates customer contacts were made, and the date and nature of resolution of the problem. The logs shall be maintained in the grantee's local office for two (2) years.

(5) Customer relations: Notification procedures.

(i) Procedure for requesting service. The grantee shall furnish subscribers, at the time service is installed, written instructions of the procedures for placing a service call. The instructions shall include a reminder that the subscriber can call or write the City for information regarding the cable franchise agreement and/or services. The instructions shall also include information regarding service response times.

(ii) Planned service interruption. The grantee may conduct planned system interruptions between 6:00 a.m. and 1:00 a.m. after notifying the City and publishing notice of such interruptions and work locations in a newspaper of general circulation of the City at least two (2) calendar days prior to such interruptions. In the event a service interruption is required within less than two (2) days, the grantee shall use its best efforts to give advance notification to the affected customers. Service may be interrupted between the hours of 1:00 a.m. and 6:00 a.m. for routine testing, maintenance, and repair, without notice, any morning, except Saturdays, Sundays, or legal holidays, provided such interruptions are limited to the shortest possible time, not to exceed sixty (60) consecutive minutes, unless the City is previously notified.

In the event of planned service upgrades, residents in the area to be upgraded shall, at a minimum, be made aware of the planned work through mailed notice to residents at least two weeks prior to initiation of the work and through the use of a door hanger to remind residents of the planned work several days prior to the actual construction.

(iii) Office hour schedule. The grantee shall provide all customers with written notification, at the time service is installed, of the normal office hour schedule as well as the procedures for contacting the grantee at all times other than regular business hours.

(iv) Holiday office hour schedule. The grantee shall notify subscribers of holiday office hours on their regular billing notice and by placing a notice on the grantee's local origination channel. The City shall be formally notified regarding all holiday schedules.

(6) Property damages. Any physical damages caused by employees or subcontractors of the grantee to property shall be repaired or replaced; provided, however, this provision shall not be construed to expand the scope of the grantee's liability for property damages.

(7) Subcontractors. The grantee shall be directly responsible for the actions of all the grantee's subcontractors in connection with their performance of the grantee's obligations under this chapter and shall take positive steps to insure that all applicable franchise provisions are met.

(8) Technical service standards.

(i) The City may at its own expense hire an independent technical consultant to provide a review of the cable system at any time it should be deemed necessary. Such review may include, but shall not be limited to, the following activities:

(aa) The development of technical standards and procedures based on the capabilities of the existing system, including, but not limited to, input from the grantee;

(ab) The establishment of an on-going technical performance monitoring program to determine if the standards and procedures are being met;

(ac) Periodic, planned inspections of segments of the cable system to monitor the integrity of the system;

(ad) Periodic field inspections and monitoring of the quality of picture and reception of individual subscribers' television;

(ae) Field inspections in response to subscriber complaints or requests by the City to identify classes of problems and/or disturbances within the system in specific locations; and

(af) Periodic inspections of construction projects currently in progress.

(ii) The results of all independent monitorings and inspections shall be reported to the City as provided for in subsection (9) of subsection (a) and subsection (c) of Section 5-10.14 of this chapter.

(f) Community Services.

(1) With respect to the local government, educational, and public access channel(s), the grantee shall provide, at the request of the City Manager, the use of the grantee's studio, equipment, and technical services for the production of live and videotape community service programs, subject to the scheduling requirements of the grantee, and not to exceed five (5) hours per week for both the City and the Simi Valley Unified School District. Use in excess of such time shall be reimbursed at the grantee's actual cost.

(2) With respect to the basic cable services, the grantee shall provide all basic cable services and a tie-in connection to the building (but not including internal wiring or installation in the building), without cost, when the system passes the following facilities on the same side of the public right-of-way:

(i) Public schools and community colleges within the City;

(ii) Buildings owned and controlled by the City and used for public purposes; and

(iii) Other public facilities as designated by the Council.

(3) Whenever it is financially and technically feasible, the grantee shall provide a cable connection for CATV broadcasts from the City Hall Council Chambers and Simi Valley Unified School Board Meeting Chambers.

(4) The grantee shall assist in training City and school district employees for television production programming.

(5) The grantee shall give future planning consideration in all installations initiated after May 28, 1975, for additional uses, including, but not limited to, water meter reading and fire alarm systems.

(6) The grantee will provide an internship program for qualified high school and college students interested in pursuing careers in the field of cable television.

(g) Compatibility and connectibility. It is the desire of the City that all cable television systems franchised pursuant to the provisions of this chapter, insofar as financially and technically feasible, shall be compatible one with another and with systems adjacent to the City, and this intent shall be considered specifically in future planning by the grantee.

(h) Uses permitted. Any franchise granted pursuant to the provisions of this chapter shall authorize and permit the grantee to engage in the business of operating and providing a cable television system in the City and, for that purpose, to erect, install, construct, repair, replace, reconstruct, maintain, and retain in, on, over, under, upon, across, and along any street such poles, wires, cable, conductors, ducts, conduit, vaults, manholes, amplifiers, appliances, attachments, and other property as may be necessary and appurtenant to the cable television system, and, in addition, so to use, operate, and provide similar facilities or properties rented or leased from any other person, firm, or corporation, including, but not limited to, any public utility or other grantee franchised or permitted to do business in the City.

(§ 2, Ord. 719, eff. January 4, 1990)

The following remedies shall be applicable, unless the construction delays or service violations result from acts of God, riots, civil disturbances, or other causes not foreseeable or which are beyond the control of the grantee:

(a) Construction delays. The estimated period for construction projects by the grantee or its subcontractors shall represent good faith and diligent effort on the part of the grantee. For any schedule delay which may occur, the grantee shall notify the City and explain why such delay was beyond its reasonable control or was not reasonably foreseeable.

(b) Service violations. The City reserves the right to require compensation or other remedies as follows: in the event the grantee has not commenced and/or completed service and/or repair corrective action within the time specified by the Council:

(1) Assess penalties, not to exceed One Hundred Fifty and no/100ths ($150.00) Dollars per day per incident, for violations of the service standards and procedures;

(2) Require the grantee to make rebates to subscribers or classes of subscribers, not to exceed the customers' normal monthly basic cable service charge, for each month during which the rebate is ordered by the City if the service standards are not met;

(3) When notification has been made by customer to grantee, require the grantee to rebate a percentage of the monthly basic cable fee to affected subscribers as follows:

(i) An interruption of one hour or more of television prime time hours (6:00 to 10:00 p.m.): ten (10%) percent rebate of the basic monthly cable fee;

(ii) Twenty-four (24) cumulative hours per month: twenty (20%) percent rebate of the basic monthly cable fee;

(iii) Twenty-four (24) to forty-eight (48) cumulative hours per month: thirty (30%) percent rebate of the basic monthly cable fee;

(iv) Forty-eight (48) to seventy-two (72) cumulative hours per month: fifty (50%) percent rebate of the basic monthly cable fee; and

(v) Greater than seventy-two (72) cumulative hours per month: 100 percent rebate of the basic monthly cable fee;

(c) Should the City find, after a duly noticed public hearing, that the grantee has failed to make a diligent effort to meet the construction schedules or remediate service violations, a thirty (30) day written notice shall be submitted to the grantee demanding corrective action. If the grantee fails to correct the construction delays or service violations within the time specified, the City may implement remedial actions, including penalties as provided in subsection (b) of this section, or the termination of the franchise, as appropriate.

(§ 2, Ord. 719, eff. January 4, 1990)

The City reserves the right to regulate rates for cable service to the fullest extent permitted by law. Notwithstanding anything in this chapter to the contrary, in the event that the Cable Act amended or repealed, or restrictions on the authority of the City to regulate rates are otherwise removed or lessened, or the FCC or any court permits the City to regulate such rates, the City may, at its discretion, establish procedures and standards for rates and regulate such rates to the fullest extent of its regulatory authority under Federal, State, and local laws.

(§ 2, Ord. 719, eff. January 4, 1990)

(a) Standards of operation. The Council may adopt procedural rules, regulations, and standards for the purpose of carrying out the provisions of this chapter. Notice of any such public hearing, setting forth a time and place when and where any person having any interest therein may appear before the Council and be heard, shall be published by the City Clerk at least ten (10) days before the hearing in a newspaper of general circulation within the City. The City Clerk shall also cause a copy of such notice to be mailed to the grantee at least ten (10) days prior to the date specified for the hearing.

(b) Technical standards. The grantee shall install, operate, and maintain the cable television system in accordance with all established technical standards adopted by the Federal Communications Commission.

(§ 2, Ord. 719, eff. January 4, 1990)

(a) The following information shall be reported to the City on an annual basis, except as otherwise specified in this subsection, and such reports shall be received by the City Manager on or before March 15 of each year:

(1) Existing service area. An outline of the existing service area with comments on small areas not actually served, areas where certain services are not yet available, or areas where special conditions exist;

(2) Work in progress. An indication on the map of the areas where system construction or reconstruction is in progress, plus a comment on the present status and anticipated schedule of the completion of work in each area;

(3) Proposed service areas. An indication on the map of those areas where service is planned and a schedule describing the planned implementation;

(4) Special service points. Maps or lists indicating where any type of special service is available;

(5) Statistics on subscribers. The following numbers shall be supplied: single-family home passed, single-family subscribers, multiple-dwelling units passed, multiple-dwelling unit subscribers, commercial subscribers, additional television outlets, and saturation (the total subscribers divided by the total dwelling units passed);

(6) Statistics on system expansion. A listing of any expansion of the cable system, including a measure, in miles of cable, of such expansion. Designations shall be included to identify expansions to new developments;

(7) Technical standards. A detailed, informative, and referenced statement describing the actual equipment and operational standards of the grantee and the corresponding standards required by this chapter;

(8) Subscriber agreements. Copies of new or revised subscriber agreements, if any; and

(9) Office closures. A list indicating all holidays and non-business days of the grantee for the upcoming year.

(10) Update reports. Update reports shall be submitted no more frequently than quarterly to advise the City of the progress of all current construction projects by the grantee or its subcontractors, as outlined in the annual report, and justifications for any construction delays. If delays are significant, the grantee shall make a formal request to the Council for approval to revise the construction project schedules. Such reports shall include the results of all independent monitorings and of all field inspections of segments of the system requested by subscribers or the City during the prior year.

(11) Government Correspondence. All reports, petitions, applications, communications, and other significant filing received from or submitted to any governmental, State, County, or Federal Agency or official which materially pertains to or in any way materially affects the system as it pertains to the franchise, shall be available for inspection by the City upon reasonable notice during normal business hours and shall be retained by the grantee for a period of four (4) years.

(b) Proposed construction projects. A list of planned construction projects and schedules shall be submitted to the City and shall include an outline of the work to be accomplished, including timelines and project completion dates for work during the upcoming twelve (12) month period. In the process of projecting timelines, the grantee shall have included the time required to obtain the necessary permits and clearances needed to begin the specified construction projects.

(c) Subscriber opinion surveys. The City may conduct an opinion survey of the grantee's cable subscribers to determine the level of satisfaction with the cable system and the services being provided. The results of the annual opinion survey, if conducted, shall be a part of the annual review during the year in which the survey was conducted. If the survey is by mail, the grantee shall make available its monthly service billing procedures for the survey distribution for which the grantee may bill the City for its reasonable additional costs over and above the usual monthly billing costs. The materials to be mailed shall be supplied by the City.

(d) Annual reviews. The City may conduct an annual review at a duly noticed public hearing on or before April 30 in order to evaluate the level and quality of the service provided by the grantee. The annual review shall include, but not be limited to, the following: A cumulative review of all grantee subscriber contact logs received during the year; the City's subscriber contact log; all reports resulting from any independent inspections and monitorings of the cable system and construction projects; and the grantee's reports as stipulated in this subsection. During the annual review, the Council may offer its input as to future construction projects. At the time of the public hearing the Council will make a determination, based on all available evidence, if there is just cause for imposing financial disincentives.

(§ 2, Ord. 719, eff. January 4, 1990)

(a) Nothing set forth in this chapter shall be deemed or construed to impair or affect, in any way, to any extent, the right of the City to acquire the property of the grantee, either by purchase or through the exercise of the right of eminent domain, at fair market value, and nothing set forth in the chapter shall be construed to contract away or to modify or abridge, whether for a term or in perpetuity, the City's right of eminent domain.

(b) There is hereby reserved to the City every right and power which is required to be reserved or provided by the provisions of this chapter or any law, including, but not limited to, the police power.

(c) Neither the granting of any franchise pursuant to the provisions of this chapter nor any provision of this chapter shall constitute a waiver or bar to the exercise of any governmental right or power of the City.

(d) The Council may do all things which are necessary and convenient in the exercise of its jurisdiction pursuant to the provisions of this chapter. The City Manager, with the approval of the City Attorney, is hereby authorized and empowered on behalf of the Council to adjust, settle, or compromise any controversy or charge arising from the operations of any grantee pursuant to the provisions of this chapter, either on behalf of the City, the grantee, or any subscriber, in the best interests of the public. Either the grantee or any member of the public who may be dissatisfied with the decision of the City Manager may appeal the matter to the Council for a hearing and determination. The Council may accept, reject, or modify the decision of the City Manager.

(§ 2, Ord. 719, eff. January 4, 1990)

(a) A franchise granted to provide service within the City shall authorize and permit the grantee to solicit, sell, distribute, and make a charge to subscribers within the City for connections to the cable television system of the grantee and shall also authorize and permit the grantee to traverse any portion of the City in order to provide service outside the City.

(b) A franchise, easement, license, or other permit granted to anyone other than a grantee to traverse any portion of the City in order to provide service outside the City shall not authorize nor permit such person to solicit, sell, distribute, or make any charge to subscribers within the City, nor to render any service or connect any subscriber within the City to the cable television service system of the grantee.

(c) No franchise granted pursuant to the provisions of this chapter shall ever be given any value by any court or other public authority in any proceeding of any nature or character.

(d) The grantee shall be subject to all the provisions of the other laws, rules, regulations, and specifications of the City heretofore or hereafter adopted, including, but not limited to, those pertaining to works and activities in, on, over, under, and about streets.

Any privilege claimed pursuant to any franchise granted pursuant to the provisions of this chapter in any right-of-way street, or other public property shall be subordinate to any prior lawful occupancy of the streets or other public property.

The grantee shall also be subject to the provisions of the general laws of the State, or as hereafter amended, when they are applicable to the exercise of any privilege contained in any franchise granted pursuant to the provisions of this chapter, including, but not limited to, those pertaining to works and activities in and about State highways.

(e) The grantee shall be prohibited from directly or indirectly doing any of the following:

(1) Providing information concerning the viewing patterns of identifiable individual subscribers to any person, group, or organization for any purpose;

(2) Denying service, access, or otherwise discriminating against subscribers, channel users, or general citizens on the basis of income, race, color, religion, national origin, age or sex. Grantee shall comply at all times with all other applicable Federal, State, and local laws and regulations, and the executive and administrative orders relating to nondiscrimination which are hereby incorporated and made part of this chapter by reference.

(f) When not otherwise set forth in this chapter, all matters required by the provisions of this chapter to be filed with the City shall be filed with the City Clerk.

(g) No person, firm, or corporation within the service area of the grantee, and where distribution lines are in place, shall be refused service; provided, however, the grantee shall not be required to provide service to any subscriber who does not pay the applicable connection fee or service charge.

(h) The form of the grantee's contract, if any, with the subscriber shall also be subject to the approval of the City.

(i) The Cable Communications Policy Act of 1984, hereinafter the "Cable Act," promotes certain aspects of state and local regulation of cable television systems. Therefore, to the extent that any provisions of Chapter 10 are preempted by the Cable Act, including but not limited to, all grants of authority for municipal rate regulation, and for franchise renewals, those provisions of Chapter 10 shall be considered null and void, and the Cable Act shall govern. Similarly, where the Cable Act imposes certain requirements not specifically set forth within the ordinance, or should the Cable Act or any other Federal or State legislation or administrative law be amended or repealed at any time during which the franchise granted hereunder is in effect, is being negotiated or renegotiated, grantor and/or grantee shall have the right to exercise any new or expanded rights arising from such legislative acts, except however, as such new or expanded rights may be specifically and irrevocably restricted by express terms herein.

(j) Any decision of the City Manager provided for in this chapter shall be appealable to the Council.

(k) Protection of subscriber privacy. The grantee's policy with regard to personally identifiable information shall be consistent with federal law in effect on the date of the enactment of this ordinance.

(§ 2, Ord. 719, eff. January 4, 1990)

In the carrying out of the construction, maintenance and operation of the cable television system, the grantee shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, or national origin.

The grantee shall comply with all applicable nondiscrimination and affirmative action requirements of all Federal, State and local laws, regulations and executive directives of the United States, the State of California, and the City.

The grantee shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

The grantee shall post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

The grantee, in all solicitations or advertisements for employees placed by or on behalf of the grantee, shall state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex, or national origin.

The grantee shall incorporate the requirements of this section in all of its contracts for work relative to the construction, maintenance, and operation of the cable television system, other than contracts for standard commercial supplies or raw materials, and shall require all of its contractors for such work to incorporate such requirements in all subcontracts for such work.

(§ 2, Ord. 719, eff. January 4, 1990)

(a) It shall be unlawful for any person to construct, install, or maintain within any public street in the City, or within any other public property of the City, or within any privately owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the City, any equipment or facilities for distributing any television signals or radio signals through a cable television system, unless a franchise authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this chapter, and unless such franchise is unexpired, has not been revoked, and is in full force and effect, or unless specifically permitted by the Council as expressed by resolution.

The provisions of this subsection shall not apply to a cable television operator operating within the City pursuant to a valid franchise issued by the City or its predecessor. Violation hereof shall, in addition to all other remedies available to the City, subject the violator to a penalty or fine of One Thousand and no/100ths ($1,000.00) Dollars per day for each day of operation without a valid franchise, whether the lack thereof be by virtue of never having been granted, termination, expiration, or revocation of the franchise.

(b) It shall be unlawful for any person to make or use any unauthorized connection, whether physically, electrically, acoustically, inductively, or otherwise, within the City for the purpose of enabling himself or others to receive or use any television signal, radio signal, picture, program, or sound without payment to the owner of such system.

(c) It shall be unlawful for any person, without the consent of the grantee, to willfully tamper with, remove, or injure any cable, wire, or equipment used for the distribution of television signals, radio signals, pictures, programs, or sound.

(d) It shall be unlawful for any grantee, either directly or through its employees or agents, to violate any provision of this chapter.

(e) Violation of this chapter shall be enforceable civilly or punishable criminally, as a misdemeanor or infraction, at the discretion of the City Attorney.

(§ 2, Ord. 719, eff. January 4, 1990)

This section is designed to regulate video service providers holding video franchises granted by the State of California pursuant to the Digital Infrastructure and Video Competition Act of 2006 and operating within the City.

(a) Each State franchise holder operating in the City of Simi Valley shall pay a fee to the City equal to five percent of gross revenue of that State franchise holder as a State franchise fee.

(b) Each State franchise holder operating in the City of Simi Valley shall pay a fee to the City equal to one percent of gross revenue of that State video franchisee to support public, educational, and/or governmental (PEG) channel facilities consistent with Federal law. For this purpose, gross revenue shall have the definition set forth in California Public Utilities Code Section 5860.

(c) For any material breach, as defined by California Public Utilities Code Section 5900, by a State franchise holder of applicable customer service and consumer protection standards, the City Manager or designee may impose the following penalties:

(1) For the first occurrence of a violation, a fine of up to Five Hundred and No/100ths ($500.00) Dollars may be imposed for each day the violation remains in effect, not to exceed One Thousand Five Hundred and No/100ths ($1,500.00) Dollars for each violation.

(2) For a second violation of the same nature within twelve (12) months, a fine of up to One Thousand and No/100ths ($1,000.00) Dollars may be imposed for each day the violation remains in effect, not to exceed Three Thousand and No/100ths ($3,000.00) Dollars.

(3) For a third or further violation of the same nature within twelve (12) months, a fine of up to Two Thousand Five Hundred and No/100ths ($2,500.00) Dollars may be imposed for each day the violation remains in effect, not to exceed Seven Thousand Five Hundred and No/100ths ($7,500.00) Dollars for each violation.

(4) A State video franchise holder may appeal a penalty assessed by the City Manager to the City Council within sixty (60) days of the initial assessment. The City Council may uphold, modify, or vacate the penalty. The City Council's decision on the imposition of a penalty shall be final.

(§ 1, Ord. 1117, eff. August 16, 2007)