Westlake Village Municipal Code Ch. 6.10 Cable Television Franchises

A. The City of Westlake Village, pursuant to Government Code Section 53066, is authorized to grant one or more non-exclusive revocable franchises to construct, operate, maintain and reconstruct cable television systems within the city limits.

B. The City Council 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 of Westlake Village. Because of the complex and rapidly changing technology associated with cable television, the City Council 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 cable television service to the public and any franchises issued pursuant to this Chapter shall be deemed to include this finding as an integral part thereof.

(Ord. No. 93, Enacted, 11/08/89)

For the purpose of this Chapter, the following terms, phrases, words and their derivations shall have the meaning given herein. Words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. Words not defined shall be given their common and ordinary meaning.

A. "Approval" or "consent" or "agree" or derivations of said words or words of similar import mean, unless otherwise expressly provided in this Chapter or the Grantee's franchise, the prior approval, consent or agreement of the person holding the right to approve, consent or agree with respect to the matter in question, and "require" or "judgment" or "satisfy" or derivations of said words or words of similar import mean the requirement, judgment or satisfaction of the person who may make a requirement or exercise judgment or who must be satisfied, which approval, consent, agreement, requirement, judgment or satisfaction shall, unless otherwise expressly provided in this Chapter or the Grantee's franchise, not be unreasonably withheld by the person holding the right to approve, consent or agree or make a requirement or judgment or who must be satisfied.

B. "Basic Cable Service" means any service tier which includes the retransmission of local television broadcast signals.

C. "Cable Communications Systems" or "System", also referred to as "Cable Television System" or "Cable System", means 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 programming and which is provided to multiple subscribers within a community, but such term does not include:

1. A facility that serves only to retransmit the television signals of one or more television broadcast stations;

2. A facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control, or management, unless such facility 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.

D. "Cable Service" means 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.

E. "Channel" or "Cable Channel" means a portion of the electromagnetic frequency spectrum which is used in a cable system and which is capable of delivering a television channel as defined by the Federal Communications Commission.

F. "City" means the City of Westlake Village.

G. "Council" means the City Council of the City of Westlake Village.

H. "Franchise" means an initial authorization, or renewal thereof issued by the City Council, whether such authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, which authorizes the construction or operation of a cable system.

I. "Franchise Agreement" means a franchise award ordinance, or a contractual agreement, containing the specific provisions of the franchise granted, including referenced specifications, requirements and other related matters.

J. "Franchise Fees" means any tax, fee or assessment of any kind imposed by a franchising authority or other governmental entity on a Grantee or cable subscriber, or both, solely because of their status as such. The term "franchise fee" does not include:

1. Any tax, fee or assessment of general applicability (including any such tax, fee, or assessment imposed on both utilities and cable operators or their services, but not including a tax, fee or assessment which is unduly discriminatory against cable operators or cable subscribers);

2. Capital costs which are required by the franchise to be incurred by Grantee for public, educational, or governmental access facilities;

3. Requirements or charges incidental to the awarding or enforcing of the franchise, including payments for bonds, security funds, letters of credit, insurance, indemnification, penalties, or liquidated damages; or

4. Any fee imposed under Title 17, United States Code.

K. "Grantee" means any "person" receiving a franchise pursuant to this Chapter and under the granting franchise ordinance or agreement, and its lawful successor, transferee or assignee.

L. "Grantor" means the City of Westlake Village as represented by the City Council or any delegate acting within the scope of its jurisdiction.

M. "Gross Annual Receipts" means the annual gross receipts received by a Grantee from all sources of operations of the Cable Communications System within the City utilizing the public streets and rights-of-way for which a franchise is required in order to deliver such cable service, excluding refundable deposits, except that any sales, excise or other taxes collected for direct pass-through to local, State or Federal government shall not be included. In computing the gross annual receipts from sources other than the Grantee's subscribers, including without limitation receipts derived from the sale of advertising or the lease of channel capacity by the Grantee on its cable system, the aggregate of the gross receipts received by the Grantee from such other sources during the period in question shall be multiplied by a fraction, the numerator of which shall be the arithmetic average of the number of subscribers in the City as of the first and last day of such period and the denominator of which shall be the arithmetic average of the number of subscribers within all areas served by the Grantee as of the first and last day of such period. The results obtained thereby shall be included in the determination of the Grantee's gross annual receipts for the purpose of computing the franchise fee due the City for such period.

N. "Initial Service Area" means the area of the City which will receive service initially, as set forth in the Franchise Agreement.

O. "Installation" means the connection of the system from feeder cable to subscribers' terminals, and the provision of service.

P. "Other Programming Service" means information that a cable operator makes available to all subscribers generally.

Q. "Person" means an individual, partnership, association, joint stock company, trust, corporation or governmental entity.

R. "Public, Educational or Government Access Facilities" or "PEG Access Facilities" means the total of the following:

1. Channel capacity designated for public, education, or governmental use; and

2. Facilities and equipment for the use of such channel capacity.

S. "Section" means any section, subsection, or provision of this Chapter.

T. "Service Area" or "Franchise Area" means the entire geographic area within the City designated in a Franchise Agreement to receive cable service.

U. "Service Tier" means a category of cable service or other services provided by a Grantee and for which a separate rate is charged by the Grantee.

V. "State" means the State of California.

W. "Street" means 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 that the Grantor shall permit to be included within the definition of street from time to time.

X. "Subscriber" means any person 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.

Y. "Video Programming" means programming provided by, or generally considered comparable to programming provided by, a television broadcast station.

(Ord. No. 93, Enacted, 11/08/89)

A franchise granted by the City under the provisions of this Chapter shall encompass the following purposes:

A. To engage in the business of cable television service and the distribution and sale of such service to subscribers within the designated service area.

B. To erect, install, construct, repair, rebuild, reconstruct, replace, maintain, and retain poles, cable, fiber, wire, conductors, conduit, vaults, amplifiers, television antenna, supporting structures, appurtenances, and other property in connection with the operation of a cable system in, on, over, under, upon, along and across streets or other public places within the designated service area.

C. To maintain and operate said franchise properties for the origination, collection, transmission, amplification, distribution and reception of television and radio signals and for the delivery of cable services.

D. To set forth the obligations of a Grantee under the franchise.

It shall be unlawful for any person to construct, install or operate a cable television system in the City within any street or within any other right-of-way within the City which has not yet been dedicated to the City but is designated or delineated for public use on any tentative subdivision map approved by the City and, in each such case, to construct or install any equipment or facilities for a cable system, whether or not operational, without a properly granted franchise awarded pursuant to the provisions of this Chapter, which franchise is in full force and effect.

(Ord. No. 93, Enacted, 11/08/89)

A. Term. A franchise granted hereunder shall be for a term established in the Franchise Agreement for a period commencing on the date of the Grantor's adoption of an ordinance authorizing the franchise.

B. Renewal. A franchise granted hereunder may be renewed upon application by the Grantee pursuant to the provisions of applicable State and Federal law and of this Chapter.

(Ord. No. 93, Enacted, 11/08/89)

Any franchise shall be within all or a specified portion of the territorial limits of the City, and within any area henceforth added to the territorial limits of the City during the term of the franchise.

A. In the event any new territory shall become annexed to the City, then the Grantor shall determine at a public hearing which Grantee or Grantees, if any, shall serve such new territory, provided that if the Grantor shall make no such determination within ninety (90) days following the date such new territory shall become annexed to the City, such territory shall be deemed a part of the Service Area of any Grantee authorized to serve the entire geographic area from time to time constituting the City and of any Grantee authorized to serve any area contiguous to such new territory.

B. In the event any portion of unincorporated territory covered by an existing franchise or license granted by the County of Los Angeles is annexed to the City after the Grantee thereof has commenced or completed construction and installation of a cable system within said territory, the rights reserved under such franchise or license to the County of Los Angeles or to any officer thereof, shall inure to the benefit of the City and all regulatory provisions of this Chapter and any other rules and regulations applicable to cable systems operating within the City, whether then in effect or subsequently adopted, shall be applicable to and binding upon said Grantee. In addition, the Grantee shall be obligated to pay annually to the City, the percentage of the gross receipts established by the County of Los Angeles in said franchise or license.

C. In the event any portion of the unincorporated territory covered by an existing franchise or license granted by the County of Los Angeles is annexed to the City prior to the time that the Grantee of such County franchise or license has commenced installation of a cable system within said territory, all rights acquired by said Grantee under its County franchise or license shall terminate by operation of law as of the date on which the annexation to the City becomes effective. In such case, the Grantee shall become subject to the provisions of this Chapter and to any other rules and regulations applicable to cable systems within the City. If such Grantee does not then have a franchise from the City authorizing it to provide cable service within the City, the Grantee shall comply with the requirements of Part II of this Chapter if it wishes to secure a franchise authorizing it to provide cable service to the unincorporated territory which has been annexed to the City. If such Grantee has a franchise from the City authorizing it to provide cable service within the City, the provisions of Subsection A of this Section shall apply.

(Ord. No. 93, Enacted, 11/08/89)

This Chapter shall be construed in a manner consistent with all applicable Federal and State laws. Whenever the Federal Communications Commission ("FCC") or Public Utilities Commission ("PUC") of the State of California or any other Federal or State agency shall now or hereafter exercise any paramount jurisdiction over any specific provisions of this Chapter, such paramount jurisdiction shall preempt or preclude the exercise of like jurisdiction by the City. Any modification of such Federal or State law shall to the extent applicable be considered a part of this Chapter as of the effective date of such modification.

In the event that the FCC elects to deregulate any area of cable communication over which it currently exercises jurisdiction in such manner as to expand rather than limit municipal regulatory authority, the City may, if it so elects, adopt rules and regulations in these areas, provided that such rules or regulations shall not apply to any franchise issued pursuant to this Chapter prior to the adoption of such rules and regulations to the extent they materially adversely affect such franchise, including without limitation requirements with respect to system rebuilds, channel capacity, system design, construction and performance requirements, public, educational or governmental access facilities, support for any such facilities, interconnect commitments, activation of interactive capability or institutional networks. Such new municipal regulatory powers may, however, affect existing franchises with respect to franchise renewal procedures, franchise fees, consumer protection provisions, regulation of rates, technical standards and related provisions.

(Ord. No. 93, Enacted, 11/08/89)

A. Grantee shall not sell, transfer, lease, assign, sublet or dispose of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, the franchise or any of the rights or privileges therein granted, without the prior consent of the Council and then only upon such terms and conditions as may be prescribed by the Council, which consent will not be unreasonably denied or delayed. Any attempt to sell, transfer, lease, assign or otherwise dispose of the franchise without the consent of the Council shall be null and void. No such consent shall be required for a transfer (1) to any affiliate of and entirely owned or controlled by the Grantee or any person controlling, controlled by or under common control with the Grantee, in each case as of the effective date of the Grantee's franchise, or (2) in trust, mortgage or other hypothecation, in whole or in part, to secure an indebtedness, except when such hypothecation exceeds fifty percent of the market value of the property of franchisee being so hypothecated.

B. The requirements of Subsection A shall apply to any change in the control of Grantee. The word "control" as used herein is not limited to major stockholders or partnership interests, but includes actual working control in whatever manner exercised. In the event that Grantee is a corporation, prior approval of the Council shall be required where ownership or control of more than ten (10%) percent of the voting stock of Grantee is acquired by a person or group of persons acting in concert, none of whom own or control the voting stock of the Grantee as of the effective date of the franchise, singularly or collectively. Notwithstanding anything to the contrary set forth in this Section, the consent of the Council shall not be required with respect to transfers of the voting stock of the Grantee between or among shareholders of the Grantee holding issued and outstanding voting stock of the Grantee as of the effective date of the Grantee's franchise.

C. Grantee shall notify the City in writing of any foreclosure or any other judicial sale of all or a substantial part of the franchise property of the Grantee or upon the termination of any lease or interest covering all or a substantial part of said franchise property. Such notification shall be considered by the City as notice that a change in control of ownership of the franchise has taken place and the provisions under this Section governing the consent of City to such change in control of ownership shall apply.

D. For the purpose of determining whether it shall consent to such change, transfer, or acquisition of control, Grantor may inquire into the qualifications of the prospective transferee or controlling party, and Grantee shall assist Grantor in any such inquiry. In seeking Grantor's consent to any change of ownership or control, Grantee shall have the responsibility of insuring that transferee completes an application in form and substance reasonably satisfactory to the City, which application shall include the information required under Subsections B, C, D, E, F, M, and N of section 6.1.100 of this Chapter. An application shall be submitted to Grantor not less than sixty (6) days prior to the date of transfer. Grantee or its proposed transferee shall reimburse the City all its costs associated with processing and evaluating the proposed transfer. The transferee shall be required to establish that it possesses the qualifications and financial and technical capability to operate and maintain the system and comply with all franchise requirements for the remainder of the term of the franchise.

E. Any financial institution having a pledge of the franchisee or its assets for the advancement of money for the construction and/or operation of the franchise shall have the right to notify the Grantor that it or its designee satisfactory to the Grantor shall take control of and operate the cable communications system, in the event of a Grantee default in its financial obligations. Further, said financial institution shall also submit a plan for such operation within thirty (30) days of assuming such control that will insure continued service and compliance with all franchise requirements 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 (1) year unless extended by the Grantor in its discretion and during said period of time it shall have the right to petition the Grantor to transfer the franchise to another Grantee. If, after considering the legal, financial, character, technical and other public interest qualities of the applicant and determining that they are satisfactory, the Grantor finds that such transfer is acceptable, the Grantor shall 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 denied or delayed.

(Ord. No. 93, Enacted, 11/08/89)

Grantee shall design, construct and maintain the cable television system to pass every single-family dwelling unit and multiple-family dwelling unit in the territorial limits of the City as of ________, 1989, so that cable service is available at standard installation charges. Hospitals, rest-homes, boarding houses, schools, commercial facilities, institutional and governmental buildings within the franchise area shall be provided cable service in accordance with the requirements therefor set forth in the Grantee's franchise.

After service has been established by activating trunk and/or distribution cables for any area, Grantee shall provide service to any requesting subscriber within that area within thirty (30) days from the date of request, provided that the Grantee is able to secure all rights-of-way necessary to extend service to such subscriber within such 30-day period on reasonable terms and conditions.

(Ord. No. 93, Enacted, 11/08/89)

Any franchise granted shall be nonexclusive. The Grantor specifically reserves the right to grant, at any time, such additional franchises for a cable communications system or any component thereof, as it deems appropriate, provided however, that such additional grants shall not operate to modify, revoke or terminate any rights then held by any Grantee.

(Ord. No. 93, Enacted, 11/08/89)

Any person desiring a franchise or franchise renewal for a cable television system shall file an application with the City. A nonrefundable application fee established by the City shall accompany the application or renewal application to cover all costs associated with processing and reviewing the application, including without limitation costs of administrative review, financial, legal and technical evaluation of the applicant, consultants (including technical and legal experts and all costs incurred by such experts), notice and publication requirements with respect to the consideration of the application and document preparation expenses. In the event such costs exceed the application fee, the applicant shall pay the difference to the City within thirty (30) days following receipt of an itemized statement of such costs from the City. In the event such application fee exceeds the amount of such costs, the City shall refund the amount of the excess to the applicant within thirty (30) days following completion of the proceedings relating to such application.

(Ord. No. 93, Enacted, 11/08/89)

An application for a franchise for a cable television system shall contain, where applicable:

A. Designation of specific area to be served by franchise;

B. Resume of prior history of applicant, including the expertise of applicant in the cable television field;

C. List of the partners, general and limited, if the applicant is a partnership and a list of the persons and/or entities involved if the applicant is a joint venture;

D. List of the names and addresses of stockholders of applicant and percentage of stock owned or controlled by each shareholder. List shall include all persons having a legal or equitable interest in five percent (5%) or more of its voting stock;

E. List of officers, directors and managing employees of applicant, together with a description of education and business background of each such person;

F. A current financial statement of applicant verified by a CPA audit or otherwise certified to be true, complete and correct to the reasonable satisfaction of the City;

G. Proposed construction schedule, providing for at least 33-⅓ percent construction per year for three years;

H. Street map of area to be served showing the location of proposed or existing head-end site (antenna site) and business office;

I. Legal description of area to be served;

J. Proposed rates and charges to be charged subscribers;

K. Itemized electronic equipment to be used, channels to be provided, pay T.V. or additional services and type of converter;

L. Technical market survey of area and economic analysis including number of homes, population, income bracket and percent of those requesting and those projected or estimated to request service, if available;

M. The names and addresses of any parent or subsidiary of applicant or any other business entity owning or controlling applicant in whole or in part, or owned or controlled in whole or in part by applicant;

N. A signed statement by an officer indicating whether any principal, officer, director or managing employee:

1. Has ever been convicted or held liable for acts involving moral turpitude (including, but not limited to, charges sustained before any federal or state agency, or violation of any tax or securities law), or is presently under any indictment, investigation or complaint charging any such acts;

2. Has ever had a judgment in an action for fraud, deceit or misrepresentation entered against it, her, him, or them by any court of competent jurisdiction; or

3. Has pending any legal claim, lawsuit or administrative proceeding arising out of or involving a cable television system; and

O. Any reasonable additional requirements or information that the City deems to be applicable.

(Ord. No. 93, Enacted, 11/08/89)

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 the same shall be received by the City, or the date before which the same must be received, or the date after which the same shall not be received, and may make any other determinations and specify any other times, terms, conditions, or limitations respecting the soliciting, calling for, making and receiving of such applications.

Upon receipt of any application for a franchise, the Council shall refer the same to the City Manager, who shall prepare a report and make his recommendations respecting such application.

The City Clerk shall set applications for a hearing at a time and date approved by the City Council.

(Ord. No. 93, Enacted, 11/08/89)

Not less than fifteen (15) days before the hearing, the City Clerk shall give notice to the applicant in writing of the time, date and place of hearing. The City Clerk shall serve such notice upon the applicant either by first-class mail, postage prepaid, or by personal delivery thereof to the applicant.

(Ord. No. 93, Enacted, 11/08/89)

The City Clerk shall cause a notice to be posted in three places within the area to be served stating the time, date and place of a hearing not less than fifteen (15) days prior to the hearing. The City Clerk shall publish in a newspaper of general circulation circulated within the area to be served and pursuant to Section 6063 of the Government Code the same notice as is required to be posted.

(Ord. No. 93, Enacted, 11/08/89)

Any person interested, any time after the filing of an application as provided in this Chapter, and prior to the hearing thereon, may file with the City Clerk written comments, protests, and/or suggestions, either for or against the granting of the franchise or to suggest any terms and conditions which should be included in the franchise.

(Ord. No. 93, Enacted, 11/08/89)

At the time and place set for the hearing or at the time and place to which the hearing may be continued by the Council, the Council shall hear the applicant, who may present any relevant evidence to show why the franchise should be granted, why certain terms or conditions should be imposed or not imposed on such franchise if granted, and also shall hear testimony or statements of other persons who may attend the hearing.

(Ord. No. 93, Enacted, 11/08/89)

Within thirty (30) days after the close of the hearing, the Council shall make a decision based upon the evidence received at the hearing as to whether or not the application should be granted, and, if granted, subject to what conditions. The Council may grant one or more franchises, or may decline to grant any franchise. The Council shall send a copy of its decision to the applicant.

(Ord. No. 93, Enacted, 11/08/89)

Minimum service standards governing consumer protection and response by Grantee to subscriber complaints not otherwise provided for in this Chapter may be established in the Franchise Agreement, and Grantee shall comply with such standards in the operation of the cable television system.

(Ord. No. 93, Enacted, 11/08/89)

Following the issuance and acceptance of the franchise, the Grantee shall pay to the Grantor a franchise fee of up to five percent (5%) of gross annual receipts in accordance with procedures set forth in the Franchise Agreement and in a percentage as determined by resolution of the City Council.

(Ord. No. 93, Enacted, 11/08/89)

The Council may require Grantee to deposit into an interest bearing account established by the City a sum established by Grantor as a security fund. This sum shall be maintained on deposit throughout the term of the franchise in an account bearing interest in an amount equal to the average rate of return on funds invested by the City during the time the deposit is maintained, which interest shall be payable to Grantee. Interest earned on such deposit shall be paid to the Grantee on an annual basis within sixty (60) days following the close of each calendar year, provided that the Grantee is not then in default in the performance of its obligations under this Chapter or its Franchise Agreement, in which case the City may retain any interest accrued on such deposit until such time as the default has been remedied.

The security fund shall be available to Grantor to satisfy any and all claims, liens and/or taxes due Grantor from Grantee which arise by reason of construction, operation, or maintenance of the system.

Subject to Grantor approval, the security fund requirements may be satisfied by conveyance of an irrevocable letter of credit to the Grantor, in a form approved by Grantor.

(Ord. No. 93, Enacted, 11/08/89)

Grantor may establish, and Grantor shall have the right to establish as a term of any franchise granted hereunder, a public benefit, non-profit corporation to receive and allocate support funds and other consideration for the purpose of promoting and developing local usage of the cable television system for public, educational or governmental purposes.

(Ord. No. 93, Enacted, 11/08/89)

A. All franchise property to be constructed and operated under the franchise shall be built and constructed of first class materials in a good and workmanlike manner and shall be maintained in good working condition.

B. Grantee shall not construct or install any poles, conduits or other system facilities within City streets until the Grantee has secured the necessary permits from the City or obtained any other necessary authorization from City, and obtained permission from the Federal Aviation Administration to erect and maintain antennas suitable to the needs of the system and its subscribers where such permission is required in view of the nature of such antennas.

C. In those areas of the City where transmission or distribution facilities of the public utilities providing telephone and electric power service are underground, the Grantee likewise shall construct, operate and maintain its transmission and distribution facilities therein underground.

D. In those areas of the City where Grantee's cables are located on the above-ground transmission or distribution power service, and in the event that the facilities of both such public utilities subsequently are placed underground, then the Grantee likewise shall reconstruct, operate and maintain its transmission and distribution facilities underground.

E. Amplifiers, power supplies, other electrical facilities and related components of the cable system to service underground cables shall be installed in accordance with the requirements of the Franchise Agreement.

F. If any portion of any street is damaged by reason of installation or existence of any facility constructed under a franchise granted pursuant to this Chapter, the Grantee thereof shall, at its own expense, immediately following written or oral notification thereof, repair any such damage and put such street in as good condition as it was before such damage, to the satisfaction of the City Manager, or such person as designated by the City Manager. Verbal notification will be confirmed in writing within forty-eight (48) hours.

G. Grantee shall not remove any tree or trim any portion, either above, at or below ground level, of any tree on public property without the prior consent of Grantor. Grantor shall have the right to do tree trimming requested by Grantee at the reasonable cost of Grantee.

H. Grantee shall not and no permit shall be issued to allow Grantee to excavate for any purpose in any street which has been resurfaced or repaved within the preceding three years, except upon the prior approval of the City Council.

(Ord. No. 93, Enacted, 11/08/89)

A. The Grantee shall construct, install, operate and maintain its system in a manner consistent with all applicable laws, ordinances, construction standards, governmental requirements, FCC technical standards, and detailed standards set forth in its Franchise Agreement. In addition, the Grantee shall provide to the Grantor, upon request, a written report of the results of the Grantee's annual proof of performance tests conducted pursuant to FCC standards and requirements.

B. The Grantee shall continue, through the term of the franchise, to maintain FCC technical standards and the quality of service set forth in this Chapter. Should the Grantor find that the Grantee has failed to maintain FCC technical standards and quality of service, and should the Grantor specifically enumerate improvements to be made so as to comply with such technical standards and quality of service, the Grantee shall make those improvements. Failure to make those improvements within three (3) months of such notification or to commence improvements within such 3-month period and diligently complete them thereafter will constitute a breach.

C. The Franchise Agreement negotiated between Grantor and Grantee may contain technical and signal quality objectives that exceed the standards required by the FCC.

(Ord. No. 93, Enacted, 11/08/89)

If at any time Federal laws and regulations are amended so as to permit City to regulate the rates and charges for subscriber services, City hereby reserves the right and authority to regulate and control rates and to amend this Chapter so as to set forth a procedure for setting rates and reviewing requests for rate increases. Notwithstanding anything to the contrary set out in this Chapter or in any such procedures, the Grantee may adjust any rate subject to regulation under this Chapter by an amount not to exceed the adjustment in the Consumer Price Index, All Items, All Urban Consumers for Los Angeles-Anaheim-Riverside (1982-84=100) prepared by the United States Department of Labor, Bureau of Labor Statistics, measured from the date such rate was last increased to the date such rate is next increased, provided such rate is adjusted no more than once in any twelve (12) month period and provided that the Grantee shall have given the City Manager (or his designee) sixty (60) days prior written notice of the proposed change in such rate. Such adjustment shall become effective unless the Council within the sixty (60) day period elects to review the proposed adjustment, in which case it shall so notify the Grantee and set the matter for public hearing. The decision of the Council shall be final.

(Ord. No. 93, Enacted, 11/08/89)

Grantee shall indemnify, defend and hold Grantor, its officers, agents and employees harmless from any liability, claims, damages, costs or expenses, including reasonable attorney's fees, arising from injury to persons or damages to property to the extent caused by any conduct undertaken by the Grantee, its agents or employees, by reason of the franchise; Grantee shall at his sole cost and expense, upon demand of Grantor, appear in and defend any and all suits, actions or other legal proceedings, whether judicial, quasi-judicial, administrative, legislative or otherwise, brought or instituted or had by third persons or duly constituted authorities, against or affecting Grantor, its officers, agents or employees, and arising out of or pertaining to any conduct of the Grantee, its agents or employees which is within the scope of this indemnity.

(Ord. No. 93, Enacted, 11/08/89)

A. On or before commencement of franchise operations, the Grantee shall obtain policies of liability, worker's compensation and property insurance from companies authorized to transact business in California by the Insurance Commissioner of California.

B. The policy of liability insurance shall:

1. Be issued to Grantee and name Grantor, its officers, agents and employees as additional insureds;

2. Indemnify for all liability for personal and bodily injury, death and damage to property arising from activities conducted and premises used pursuant to this Chapter by providing coverage therefor, including but not limited to coverage for:

a. Negligent acts or omissions of Grantee and its agents, servants and employees, committed in the conduct of franchise operations; and/or

b. Use of motor vehicles;

3. Provide a combined single limit for comprehensive general liability and comprehensive automobile liability insurance in the amount provided for in the Franchise Agreement; such insurance policy shall be subject to the review and approval of Grantor's legal counsel; and

4. Be noncancellable without thirty (30) days' prior written notice thereof directed to Grantor.

C. The policy of Worker's Compensation Insurance shall:

1. Have been previously approved as to substance and form by the California Insurance Commissioner;

2. Cover all employees of Grantee who in the course and scope of their employment are to conduct the franchise operations;

3. Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the Labor Code of the State upon an injured employee, including vocational rehabilitation and death benefits.

D. The policy of property insurance shall provide fire insurance with extended coverage on the franchise property used by Grantee in the conduct of franchise operations in an amount adequate to enable Grantee to resume franchise operations following the occurrence of any risk covered by this insurance.

E. Grantee shall file with the City Clerk prior to commencement of franchise operations either certified copies of these insurance policies or a certificate of insurance for each of the required policies executed by the company issuing the policy or by a broker authorized to issue such a certificate, certifying that the policy is in force and providing the following information with respect to said policy;

1. The policy number;

2. The date upon which the policy will become effective and the date upon which it will expire;

3. The names of the named insureds and any additional insured required by this Chapter or the franchise agreement;

4. The subject of the insurance;

5. The type of coverage provided by the insurance; and

6. Amount or limit of coverage provided by the insurance.

F. Conduct of franchise operations shall not commence until Grantee has complied with the aforementioned provisions of this Section.

G. In the event Grantee fails to maintain any of the above-described policies in full force and effect, Grantor shall, upon forty-eight (48) hours notice to Grantee, have the right to procure the required insurance and recover the cost thereof from Grantee. Grantor shall also have the right to suspend the franchise during any period that Grantee fails to maintain said policies in full force and effect.

H. No more than once during any three (3) year period, Grantor shall have the right to order Grantee to increase the amounts of the insurance coverage provided herein. Such order may be made by Grantor after complying with the hearing procedure provided for herein. Increases in insurance coverage shall be based upon evidence of prudent business practices of like enterprises involving the same or similar risks.

(Ord. No. 93, Enacted, 11/08/89)

A. Grantee shall at all times maintain:

1. A record of all complaints received and interruptions or degradation of service experienced for the preceding two (2) years, provided that such complaints result in or require a service call.

2. A full and complete set of plans, records and "as-built" maps showing the location of the cable television system installed or in use in the City, exclusive of subscriber service drops and equipment provided in subscribers' homes.

3. A record of service calls, identifying the number, general nature and disposition of such calls, on a monthly basis. A summary of such service calls shall be submitted to the Grantor within sixty (60) days following the end of each calendar quarter in a form reasonably acceptable to the Grantor.

B. The Grantor may impose reasonable requests for additional information, records and documents from time to time, provided they reasonably relate to the scope of the City's rights under this Chapter or the Grantee's Franchise Agreement.

C. At all reasonable times, Grantee shall permit examination by any duly authorized representative of the Grantor, of all franchise property and facilities, together with any appurtenant property and facilities of Grantee situated within or without the City, and all records relating to the franchise, provided they reasonably relate to the scope of the City's rights under this Chapter or the Grantee's Franchise Agreement.

(Ord. No. 93, Enacted, 11/08/89)

Within ninety (90) days after request from Grantor, Grantee shall submit a written annual report to Grantor with respect to the preceding calendar year in a form approved by Grantor, including, but not limited to, the following information:

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

B. A current statement of costs of construction by component categories;

C. A list of Grantee's officers, members of its board of directors, and other principals of Grantee;

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

E. An indication on a map of those areas where service is planned and a schedule describing the planned implementation;

F. Maps or lists indicating where any type of special service is available;

G. The following numbers shall be supplied: single-family homes passed, single-family subscribers, multiple-dwelling unit subscribers receiving basic cable service on a bulk basis, commercial subscribers, additional television outlets, and penetration of basic cable service in the City;

H. 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; and

I. Copies of blank subscriber agreement forms shall be furnished to Grantor for reference.

(Ord. No. 93, Enacted, 11/08/89)

Within thirty (30) days after request by Grantor, Grantee shall submit an annual plant survey report with respect to the preceding calendar year which shall be a complete survey of Grantee's plant and a full report thereon. This report shall include, but not be limited to, an appropriate engineering evaluation including relevant electronic measurements. This report shall be in sufficient detail to enable Grantor to ascertain that the technical standards of the FCC and/or the franchise are achieved and maintained.

(Ord. No. 93, Enacted, 11/08/89)

Grantee shall submit to Grantor copies of all pleadings, applications and reports submitted by Grantee to, as well as copies of all decisions, correspondence and actions by any federal, state or local court, regulatory agency, or other governmental body which are non-routine in nature and which will materially affect its cable television operations within the franchise area. Grantee shall submit such documents to Grantor simultaneously with their submission to such court, agency and/or body; or within five (5) days after their receipt from such court, agency and/or body. Information otherwise confidential by law and so designated by Grantee, which is submitted to Grantor, shall be retained in confidence by Grantor and its authorized agents and shall not be made available for public inspection.

(Ord. No. 93, Enacted, 11/08/89)

If Grantee is publicly held, a copy of each Grantee's annual and other periodic reports and those of its parent, shall be submitted to Grantor within forty-five (45) days of request by Grantor.

(Ord. No. 93, Enacted, 11/08/89)

A. The Grantee shall furnish to the Grantor the results of any opinion survey conducted by the Grantee which identifies satisfaction or dissatisfaction among subscribers within the City of the Grantee's cable service. The results of such survey shall be furnished to the Grantor within thirty (30) days following completion of the survey.

B. Upon request of the Grantor, but requested no more than once annually, the Grantee shall conduct a subscriber satisfaction survey pertaining to quality of service, which may be transmitted to subscribers in subscriber statements for cable services. The form and content of such survey shall be reasonably acceptable to the Grantor. The cost of such survey shall be borne by the Grantee.

C. Upon request of the Grantor, but requested no more than once every three (3) years, the Grantee shall conduct a subscriber survey directed towards satisfaction with programming, which may be transmitted to subscribers in subscriber statements for cable services. The form and content of such survey shall be reasonably acceptable to the Grantor. The cost of such survey shall be borne by the Grantee.

(Ord. No. 93, Enacted, 11/08/89)

Upon Grantor's request, but no more than annually, Grantee shall submit to Grantor an annual report indicating the degree of compliance with the privacy provisions contained herein and all steps taken to assure that the privacy rights of individuals have been protected.

(Ord. No. 93, Enacted, 11/08/89)

All reports required under this Part IV, except those confidential by law, shall be available for public inspection in the Grantor's offices during normal business hours.

(Ord. No. 93, Enacted, 11/08/89)

A. All reports and records required under this Part IV or any other section shall be furnished at the sole expense of Grantee, except as otherwise provided in this Chapter or the Grantee's Franchise Agreement.

B. The willful refusal, failure, or neglect of Grantee to file any of the reports required as and when due under this Chapter, may be deemed a material breach of the Franchise Agreement if such reports are not provided to Grantor within thirty (30) days after written request therefor, and may subject the Grantee to all remedies, legal or equitable, which are available to Grantor under the franchise or otherwise.

C. Any materially false or misleading statement or representation made knowingly and willfully by the Grantee in any report required under this Chapter or under the Franchise Agreement may be deemed a material breach of the franchise and may subject Grantee to all remedies, legal or equitable, which are available to Grantor under the franchise or otherwise.

(Ord. No. 93, Enacted, 11/08/89)

Each year throughout the term of the franchise, if requested by the Grantor, Grantor and Grantee shall meet publicly to review system performance and quality of service.

The various reports required pursuant to this Chapter shall be utilized as the basis for review. In addition, any subscriber may submit comments or complaints during the review meetings, either orally or in writing, and these shall be considered. Within thirty (30) days after conclusion of a system performance review meeting, Grantor may issue findings with respect to the adequacy of system performance and quality of service.

If the cable system is determined not to comply with the requirements of this Chapter or the Grantee's franchise, Grantor may direct Grantee to correct the areas of noncompliance within a reasonable period of time. Failure of Grantee, after due notice, to correct the areas of noncompliance within the period specified therefor or to commence compliance within such period and diligently achieve compliance thereafter shall be considered a material breach of the franchise, and Grantor may levy any penalty within the scope of this Chapter and the Franchise Agreement considered appropriate.

(Ord. No. 93, Enacted, 11/08/89)

A. When there have been similar complaints made or where there exists other evidence which, in the judgment of the Grantor, casts reasonable doubt on the reliability or quality of cable service to the effect that the Grantee is not in compliance with the requirements of this Chapter or its franchise, the Grantor shall have the right to compel the Grantor to test, analyze and report on the performance of the system in order to protect the public against substandard cable service. Such test or tests shall be made and the report thereof shall be delivered to the Grantor no later than thirty (30) days after the Grantor notifies the Grantee that it is exercising such right. Such report shall include the following information: the nature of the complaints which precipitated the special tests; what system component was tested; the equipment used and procedures employed in said testing; the results of such tests; and the method by which such complaints were resolved. Any other information pertinent to the special test shall be recorded.

B. Said tests and analyses shall be supervised, at the expense of the Grantee, if so requested by the Grantor, by a professional engineer satisfactory to both Grantor and Grantee who is not on the permanent staff of the Grantee. The engineer shall sign all records of such special tests and forward such records to the Grantor with a report interpreting the result of the tests and recommending actions to be taken.

C. In lieu of compelling Grantee to perform the above-referenced tests, Grantor may, at its expense, appoint a qualified independent engineer to evaluate the technical performance of the system.

(Ord. No. 93, Enacted, 11/08/89)

The Grantor may hold special evaluation sessions at any time during the term of a franchise, provided such sessions are held no more often than once every three (3) years. The Grantee shall be notified of the place, time and date thereof and the topics to be discussed. Such sessions shall be open to the public and advertised in a newspaper of general circulation at least thirty (30) days before each session.

(Ord. No. 93, Enacted, 11/08/89)

If Grantee fails to perform in a timely manner any obligation required by this Chapter or a franchise granted hereunder following notice from the Grantor and an opportunity to cure such nonperformance in accordance with the provisions of this Chapter, Grantor may at its option and in its sole discretion:

A. Cure the violation and recover the actual cost thereof from the security fund established herein if such violation is not cured within five (5) days after written notice to the Grantee of Grantor's intention to cure and draw upon the security fund;

B. Assess against Grantee a liquidated damages penalty in an amount set forth in the Franchise Agreement for any such violation(s) if such violation is not cured within five (5) days after written notice to the Grantee of Grantor's intention to assess liquidated damages. By acceptance of a franchise hereunder, Grantee hereby agrees to pay any assessment to be levied against the security fund hereinabove provided and collected by Grantor immediately upon such assessment. Such assessment shall not constitute a waiver by Grantor of any other right or remedy it may have under the franchise or under applicable law, including without limitation, its right to recover from Grantee such additional damages, losses, costs and expenses, including actual attorneys' fees, as may have been suffered or incurred by Grantor by reason of or arising out of such breach of the franchise;

C. For violations which have materially degraded the quality of service, order and direct Grantee to issue rebates or credits to subscribers, in an amount to be determined by Grantor to be reasonably related to the nature of the degradation in service and measured by the period of the degradation, to provide monetary relief substantially equal to the reduced quality of service resulting from the Grantee's failure to perform;

D. Require Grantee to cure all defaults and breaches of its obligations hereunder or under its franchise before Grantee is entitled to increase any rate or charge to its subscribers where the Grantor is permitted to regulate the Grantee's rates for cable service; or

E. Terminate the franchise, for any of the causes stated herein and set forth in Section 6.1.390.

(Ord. No. 93, Enacted, 11/08/89)

Grantor reserves the right to revoke any franchise granted pursuant to this Chapter and rescind all rights and privileges associated with it in the following circumstances, each of which shall represent a default by Grantee and material breach under the franchise grant:

A. If Grantee shall default in the performance of its material obligations under this Chapter or under such documents, contracts or other terms and provisions entered into by and between Grantor and the Grantee;

B. If Grantee shall fail to provide or maintain in full force and effect the insurance coverage or security fund as required herein;

C. If Grantee shall violate any order or ruling of any regulatory body having jurisdiction over the Grantee relative to the Grantee's franchise, unless such order or ruling is being contested by Grantee by appropriate proceedings conducted in good faith;

D. If Grantee attempts to evade any provision of this Chapter or practices any fraud or deceit upon Grantor;

E. If Grantee persistently fails to remedy defaults for which lesser penalties have previously been imposed;

F. If Grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged a bankrupt; and

G. If Grantee's application or application contents are later found to contain any material misstatement or omission which is determined to be materially misleading and knowingly made by the Grantee.

The termination and forfeiture of the Grantee's franchise shall in no way affect any right of Grantor to pursue any remedy under the franchise or any provision of law.

(Ord. No. 93, Enacted, 11/08/89)

Prior to imposing any remedy or other action against Grantee specified in this Chapter, Grantor shall give Grantee notice and opportunity to be heard on the matter, in accordance with the following procedure:

A. The Grantor shall first notify Grantee of the violation in writing by personal delivery or registered or certified mail, and demand correction within a reasonable time, which shall not be less than five (5) days in the case of the failure of the Grantee to pay any sum or other amount due the Grantor under this Chapter or the Grantee's franchise and thirty (30) days in all other cases. If Grantee fails to correct the violation within the time prescribed or if Grantee fails to commence correction of the violation within the time prescribed and diligently remedy such violation thereafter, the Grantor shall then give written notice of not less than twenty (20) days of a public hearing to be held before the Council. Said notice shall specify the violations alleged to have occurred.

B. At the public hearing, the Council shall hear and consider all relevant evidence, and thereafter render findings and its decision.

C. In the event the Council finds that Grantee has corrected the violation or has diligently commenced correction of such violation after notice thereof from Grantor and is diligently proceeding to fully remedy such violation, or that no violation has occurred, the proceedings shall terminate and no penalty or other sanction shall be imposed.

D. In the event the Council finds that the alleged violations exist and that Grantee has not corrected the same in a satisfactory manner or has not diligently commenced correction of such violation after notice thereof from Grantor and is not diligently proceeding to fully remedy such violation, the Grantor may impose one or more of the remedies specified herein as it, in its discretion, deems appropriate under the circumstances.

(Ord. No. 93, Enacted, 11/08/89)

In the event Grantee's performance of any of the terms, conditions or obligations required by this Chapter or a franchise granted hereunder is prevented by a cause or event not within Grantee's control, such inability to perform shall be deemed excused and no penalties or sanctions shall be imposed as a result thereof; provided, however, that such inability to perform shall not relieve a Grantee from the obligations imposed by Section 6.1.470(f), pertaining to refunds and credits for interruptions in service. For the purpose of this Section, causes or events not within the control of Grantee shall include without limitation acts of God, strikes, sabotage, riots or civil disturbances, restraints imposed by order of a governmental agency or court, explosions, acts of public enemies, and natural disasters such as floods, earthquakes, landslides, and fires, but shall not include financial inability of the Grantee to perform or failure of the Grantee to obtain any necessary permits or licenses from other governmental agencies or the right to use the facilities of any public utility where such failure is due solely to the acts or omissions of Grantee, or the failure of the Grantee to secure supplies, services or equipment necessary for the installation, operation, maintenance or repair of the cable communications system where the Grantee has failed to exercise reasonable diligence to secure such supplies, services or equipment.

(Ord. No. 93, Enacted, 11/08/89)

A. In the event that the use of any franchise property or a portion thereof is discontinued for a continuous period of twelve (12) months, Grantee shall be deemed to have abandoned that franchise property.

B. Grantor, upon such terms as Grantor may impose, may give Grantee permission to abandon, without removing, any system facility or equipment laid, directly constructed, operated or maintained under the franchise. Unless such permission is granted or unless otherwise provided in this Chapter, the Grantee shall remove all abandoned facilities and equipment upon receipt of written notice from Grantor and shall restore the street to its former state at the time such facilities and equipment were removed, as near as may be, so as not to impair its usefulness. In removing its plant, structures and equipment, Grantee shall refill, at its own expense, any excavation that shall be made by it and shall leave all public ways and places in as good condition as that prevailing prior to such removal without materially interfering with any electrical or telephone cable or other utility wires, poles, or attachments. Grantor shall have the right to inspect and approve the condition of the public ways, public places, cables, wires, attachments and poles prior to and after removal. The liability, indemnity and insurance provisions of this Chapter and the security fund as provided herein shall continue in full force and effect during the period of removal and until full compliance by Grantee with the terms and conditions of this Section.

C. Upon abandonment of any franchise property in place, the Grantee, if required by the Grantor, shall submit to the Grantor an instrument, satisfactory in form to the City Attorney, transferring to the Grantor the ownership of the franchise property abandoned.

D. At the expiration of the term for which the franchise is granted, or upon its revocation or earlier expiration, as provided for herein, in any such case without renewal, extension or transfer, the Grantor shall have the right to require Grantee to remove, at its own expense, all above-ground portions of the cable television system from all streets and public ways within the City within a reasonable period of time, which shall not be less than one hundred eighty (180) days.

E. Notwithstanding anything to the contrary set forth in this Chapter, the Grantee may abandon any underground franchise property in place so long as it does not materially interfere with the use of the street or public rights-of-way in which such property is located or with the use thereof by any public utility. The Grantee shall not be required to remove any franchise property which has been abandoned or deemed abandoned in accordance with the provisions of this Chapter unless it constitutes a substantial portion of the franchise property.

(Ord. No. 93, Enacted, 11/08/89)

In the event of a failure by Grantee to complete any work required herein or by any other law or ordinance, and if such work is not completed within thirty (30) days after receipt of written notice thereof from Grantor or, if more than thirty (30) days are reasonably required therefor, if Grantee does not commence such work within such thirty (30) day period and diligently complete the work thereafter (except in cases of emergency constituting a threat to public health, safety or welfare), Grantor may cause such work to be done and Grantee shall reimburse Grantor the costs thereof within thirty (30) days after receipt of an itemized list of such costs, or Grantor may recover such costs through the security fund provided by Grantee.

(Ord. No. 93, Enacted, 11/08/89)

Upon either expiration or revocation of the franchise, the Grantor shall have discretion to permit Grantee to continue to operate the cable television system for an extended period of time not to exceed twelve (12) months from the date of such expiration or revocation, unless extended by resolution of Grantor. Grantee shall, as trustee for its successor-in-interest, continue to operate the system under the terms and conditions of this Chapter and the franchise and to provide the regular subscriber service and any and all of the services that may be provided at that time. It shall be the right of all subscribers to continue to receive all available services provided their financial and other obligations to Grantee are honored. The Grantee shall use reasonable efforts to provide continuous, uninterrupted service to its subscribers, including operation of the system during transitional periods following franchise expiration or termination.

(Ord. No. 93, Enacted, 11/08/89)

A. A franchise granted hereunder shall, at the option of Grantor, cease and terminate one hundred twenty (120) days after appointment of a receiver or receivers, or trustee or trustees, to take over and conduct the business of 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 one hundred twenty (120) days, or unless: (1) such receivers or trustees shall have, within one hundred twenty (120) days after their election or appointment, fully complied with all the terms and provisions of this Chapter and the franchise granted pursuant hereto, and the receivers or trustees within said one hundred twenty (120) days shall have remedied all the faults under the franchise or provided a plan for the remedy of such faults which is satisfactory to the Grantor; and (2) such receivers or trustees shall, within said one hundred twenty (120) days execute an agreement duly approved by the court having jurisdiction in the premises, whereby such receivers or trustees assume and agree to be bound by each and every term, provision and limitation of the franchise herein granted.

B. In the case of a foreclosure or other judicial sale of the franchise property, or any material part thereof, Grantor may serve notice of termination upon Grantee and the successful bidder at such sale, in which event the franchise herein granted and all rights and privileges of the Grantee hereunder shall cease and terminate thirty (30) days after service of such notice, unless: (1) Grantor shall have approved the transfer of the franchise, as and in the manner that this Chapter provides; and (2) such successful bidder shall have covenanted and agreed with Grantor to assume and be bound by all terms and conditions of the franchise.

(Ord. No. 93, Enacted, 11/08/89)

A. In addition to any rights specifically reserved to the Grantor by this Chapter, the Grantor reserves to itself every right and power which is required to be reserved by a provision of any City ordinance or under the franchise, and the Grantee by accepting a franchise hereunder agrees to be bound thereby and to comply with any action or requirement of the Grantor in its exercise of any such right or power.

B. The Grantor shall have the right to waive any provision of the franchise, except those required by Federal or State regulation, if the Grantor determines (1) that it is in the public interest to do so, and (2) that the enforcement of such provision will impose an undue hardship on the Grantee or the subscribers. To be effective, such waiver shall be evidenced by a statement in writing signed by a duly authorized representative of the Grantor. Waiver of any provision in one instance shall not be deemed a waiver of such provision subsequent to such instance nor be deemed a waiver of any other provision of the franchise unless the statement so recites.

(Ord. No. 93, Enacted, 11/08/89)

A. 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. 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 non-discrimination, including without limitation Section 51 of the California Civil Code which is incorporated in this Section by reference.

B. Grantee shall adhere to the applicable equal employment opportunity requirements of the FCC, state and local regulations, as now written or as amended from time to time.

C. Neither Grantee, nor any person, agency, or entity shall, without the subscriber's consent, tap, or arrange for the tapping, of any cable, line, signal input device, or subscriber outlet or receiver for any purpose except routine maintenance of the system, detection of unauthorized service, polling with audience participating, or audience viewing surveys to support advertising research regarding viewers where individual viewing behavior cannot be identified.

D. In the conduct of providing its services or in pursuit of any collateral commercial enterprise resulting therefrom, Grantee shall take reasonable steps to prevent the invasion of a subscriber's or general citizen's right of privacy or other personal rights through the use of the system as such rights are delineated or defined by applicable law. Grantee shall not without lawful court order or other applicable valid legal authority utilize the system's interactive two-way equipment or capability for unauthorized personal surveillance of any subscriber or general citizen.

E. No cable line, wire, amplifier, convertor, or other piece of equipment owned by Grantee shall be installed by Grantee in the subscriber's premises without first securing any required consent. If a subscriber requests service, permission to install upon subscriber's property shall be presumed.

F. The Grantee shall credit or refund to the subscriber upon request, for interruptions in service, as provided in the Grantee's Franchise Agreement.

G. A subscriber bill of rights approved by the Grantor shall be provided to each subscriber by the Grantee upon initial installation of service. Subscribers shall be notified of any material change in such rights.

H. The Grantee, or any of its agents or employees, shall not sell, or otherwise make available to any party:

1. Any list of the names and addresses of subscribers containing the names and addresses of subscribers who request in writing to be removed from such list; and

2. Any list which identifies the viewing habits of individual subscribers, without the prior written consent of such subscribers. This does not prohibit the Grantee from providing composite ratings of subscriber viewing to any party.

(Ord. No. 93, Enacted, 11/08/89)

A. Grantee shall not make any discrimination, distinction or restriction on account of color, race, religion, ancestry or national origin contrary to the provisions of Section 51 of the Civil Code of the State which is incorporated in this Section by reference.

B. All provisions of Section 1410 through 1431 of the Labor Code of the State (California Fair Employment Practice Act) are incorporated in this Section by reference.

C. The Grantee shall provide notice to Grantor prior to operating under a fictitious name other than that stated in the franchise. Any fictitious name shall be filed with the City Clerk.

(Ord. No. 93, Enacted, 11/08/89)

Grantee shall be required to provide service to tenants and individual units of a multiple housing facility with all services offered to other dwelling units within the City, so long as the owner of the facility consents in writing, if requested by Grantee, to the following:

A. To Grantee's providing of the service to units of the facility for such term and subject to such conditions as are reasonably acceptable to Grantee;

B. To reasonable conditions and times for installation, maintenance, and inspection of the system on the facility premises;

C. To reasonable conditions promulgated by Grantee to protect Grantee's equipment and to encourage wide-spread use of the cable television system;

D. To not demand or accept payment from Grantee for permitting Grantee to provide service to the facility and to not discriminate in rental charges, or otherwise, between tenants who receive cable television service and those who do not.

(Ord. No. 93, Enacted, 11/08/89)

The City Council reauthorizes and readopts the City's fee for the support of public, educational, and governmental access channel facilities and activities within the City, which fee shall be paid by State video franchise holders operating within the City. Unless a higher percentage is authorized by applicable State or federal law, this fee shall be one percent of a franchisee's gross revenues, as this term is defined in California Public Utilities Code Section 5860.

(Ord. No. 202-07, Enacted, 12/12/07)

(Ord. No. 258-17, § 1, 12-13-2017)

A. Franchise Fee. A State video franchise holder operating in the City shall pay to the City a franchise fee that is equal to five (5) percent of the gross revenues of that State video franchise holder. The term "gross revenues" shall be defined as set forth in Public Utilities Code Section 5860.

B. Audit Authority. Not more than once annually, the City may examine and perform an audit of the business records of a holder of a State video franchise to ensure compliance with all applicable statutes and regulations related to the computation and payment of franchise fees.

C. Customer Service Penalties Under State Video Franchises.

1. The holder of a State video franchise shall comply with all applicable State and federal customer service and protection standards pertaining to the provision of video service.

2. The City shall monitor a State video franchise holder's compliance with State and federal customer service and protection standards. The City will provide to the State video franchise holder written notice of any material breaches of applicable customer service and protection standards, and will allow the State video franchise holder thirty (30) days from receipt of the notice to remedy the specified material breach. Material breaches not remedied within this thirty (30) day time period will be subject to the following monetary penalties to be imposed by the City in accordance with State law:

a. For the first occurrence of a violation, a monetary penalty of five hundred dollars ($500) shall be imposed for each day the violation remains in effect, not to exceed one thousand five hundred dollars ($1,500) for each violation.

b. For a second violation of the same nature within twelve (12) months, a monetary penalty of one thousand dollars ($1,000) shall be imposed for each day the violation remains in effect, not to exceed three thousand dollars ($3,000) for each violation.

c. For a third or further violation of the same nature within twelve (12) months, a monetary penalty of two thousand five hundred dollars ($2,500) shall be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars ($7,500) for each violation.

3. A State video franchise holder may appeal a monetary penalty within sixty (60) days after it is assessed by the City. After relevant evidence and testimony is received, and staff reports are submitted, the City Council will vote to either uphold or vacate the monetary penalty. The City Council's decision on the imposition of a monetary penalty shall be final.

D. City Response to State Video Franchise Applications.

1. Applicants for State video franchises within the boundaries of the City must concurrently provide to the City complete copies of any application or amendments to applications filed with the California Public Utilities Commission. One complete copy must be provided to the City Manager.

2. The City will provide any appropriate comments to the California Public Utilities Commission regarding an application or an amendment to an application for a State video franchise.

E. PEG Channel Capacity. A State video franchise holder that uses the public rights-of-way shall designate sufficient capacity on its network to enable the carriage of at least three (3) public, educational, or governmental (PEG) access channels.

1. PEG access channels shall be for the exclusive use of the City or its designees to provide public, educational, or governmental programming.

2. Advertising, underwriting, or sponsorship recognition may be carried on the PEG access channels for the purpose of funding PEG-related activities.

3. The PEG access channels shall be carried on the basic service tier.

4. To the extent feasible, the PEG access channels shall not be separated numerically from other channels carried on the basic service tier, and the channel numbers for the PEG access channels shall be the same channel numbers used by the incumbent cable operator unless prohibited by federal law.

5. After the initial designation of PEG access channel numbers, the channel numbers shall not be changed without the prior written consent of the City, unless the change is required by federal law.

6. Each PEG access channel shall be capable of carrying a National Television System Committee (NTSC) television signal.

F. Interconnection. Where technically feasible, a State video franchise holder and incumbent cable operator shall negotiate in good faith to interconnect their networks for the purpose of providing PEG access channel programming. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. State video franchise holders and incumbent cable operators shall provide interconnection of the PEG access channels on reasonable terms and conditions and may not withhold the interconnection. If a State video franchise holder and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement, the City may require the incumbent cable operator to allow the State video franchise holder to interconnect its network with the incumbent's network at a technically feasible point on the holder's network as identified by the holder. If no technically-feasible point for interconnection is available, the State video franchise holder shall make an interconnection available to the channel originator and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by the State video franchise holder requesting the interconnection unless otherwise agreed to by the parties.

G. Emergency Alert System and Emergency Overrides. A State video franchise holder must comply with the Emergency Alert System requirements of the Federal Communications Commission in order that emergency messages may be distributed over the holder's network. Provisions in City-issued franchises authorizing the City to provide local emergency notifications shall remain in effect, and shall apply to all State video franchise holders in the City for the duration of the City-issued franchise, or until the term of the franchise would have expired had it not been terminated pursuant to subdivision (m) of Section 5840 of the California Public Utilities Code, or until January 1, 2009, whichever is later.

H. Encroachment Permit Applications and Appeal Procedures.

1. As used in this subsection, the term "encroachment permit" means any permit issued by the City relating to construction or operation of facilities in public rights-of-way by the holder of a State video franchise.

2. The City shall either approve or deny an application from a holder of a State video franchise for an encroachment permit within sixty (60) days of receiving a completed application.

3. If the City denies an application for an encroachment permit, the City shall, at the time of notifying the applicant of the denial, furnish to the applicant written notice of the reason for the denial. An applicant may appeal the City's denial of an encroachment permit application to the City Council in accordance with the following procedures:

(a) No notice of appeal will be processed unless filed within ten (10) days after service of written notice of the decision from which the appeal is taken; provided that if written notice of the decision has not been served, the appellant may, within ten (10) days after being apprised of that decision, demand service of written notice and will have ten (10) days following that service in which to file the notice of appeal.

(b) The notice of appeal must specify the specific decision from which the appeal is taken, the specific grounds for the appeal, and the relief or action requested from the City Council.

(c) The notice of appeal must be accompanied by such fee as may have been established by resolution of the City Council.

(d) Upon the timely filing of a notice of appeal in proper form, the City Clerk will schedule the matter for hearing by the City Council at a regular meeting, but not later than forty-five (45) days after receipt of the notice of appeal. The City Clerk will cause the notice of hearing to be given to the appellant not less than ten (10) days prior to the hearing, unless that notice is waived in writing by the appellant. The City Clerk will also cause a copy of the notice of appeal and the hearing to be transmitted to the city official or body whose decision is being appealed.

(e) At the time of consideration of the appeal by the City Council, the appellant will be limited to a presentation on the specific grounds of appeal and related matters set forth in its notice of appeal. The appellant will have the burden of persuading the City Council that the decision appealed from should be reversed or modified.

(f) The City Council may continue the hearing on the appeal from time to time as may be deemed necessary. The City Council may, by resolution, affirm, reverse, or modify, in whole or in part, the decision appealed from and may take any action that might have been taken in the first instance by the City official or body from whose decision the appeal has been taken.

(g) The decision of the City Council will be deemed final and conclusive upon adoption of the resolution. A copy of the resolution adopted by the City Council will be served upon the appellant by placement in the United States mail, postage prepaid, to the appellant's last known address.

(Ord. No. 202-07, Enacted, 12/12/07)