HomeMy WebLinkAbout1990/12/27 - Agenda Packet - AdjC~~CAMO,~
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1977
Adlourned Heetina
Oeceniber 2i, 1990 - 6:00 p.m.
Council Chambers
10500 Civic Center Drive
Rancho Cucamonga, California
A. Cell to Order
1. Pledge of Allegiance
e. Roli Call:
august , Alexander _, Stout _, Williams _, Wright
8. Advertised PvDlic Hearing
1. CONSIDERATION OF TIMES MIRROR'S APPLICATION FOR A CABLE TELEVISION
FRANCHISE (Continued from December 19, 19901
AESOLUTLON NO. 90-493
A RESOLUTION JF THE CITY COONC IL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, GRANTING A CABLE TELEVISION
FRANCHISE TO TIMES MIRROR CABLE TELEVISIOW OF RIVERSIDE
COVNTY, INCORPORATED, ^BA DINENSION CABLE SERVICES
C. Communicaticne from the Public
This is the time and place for the general public to address the City Council.
State lee prohibits the CLty Council from addressing nny issue not previously
included on the Agenda. The City Council may receive testimony end aei the
A•Ster for a au~ieequent meeting. Comments nre to bo limited to five ainutea pax
ind iv iduel.
D. Adiourment
I, Debra J. Adams, City Clerk of the Citp of Raneho Cucswnga, hereby certify
that • trw, wcurab copy o[ eha foregoing agenda was posUd on Datember 21,
1990, seventy-two hours prior to the momtinq pmr Goverment Coda 56953 et 10500
Civic CeAUr Drive, Raneho Cucamonga, California.
rrmv nc o n nrrun r i •r n artnnr~ e
STAFF REPORT ~ '~ ~`
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DATE: December 19, 1990
T0: Mayor and Members of the City Council
FROM: Jerry Fulwood, Deputy City Manager
BY: Diane O'Neal, Management Analyst II
SUBJECT: CONSIDERATION OF TIMES MIRROR'8 APPLICATION FOR
CABLE TELEVI8ION FRANCHIBE
RECOMMEN[IATION:
IT IS RECOMMENDED TIMES MIRROR'S APPLICATION FOR A CABLE TELEVISION
FRANCHISE BE GRANTED PURSUANT TO THE ATTACHED RESOLUTION AND
CONTRACT.
~CRGROON.Z
Since the awarding of the City's cable television franchise
e(]TPPTIP TI'a! ~n ioav •.. n - --,~i~i- uuu uimmvna i.a Ole '1'V, CneY9
have been a number of "pocket~areas" within the City :hat are sti l.t
without cable television availability.
Generally, a significant portion of the area known as "Red Hill'
has been without cable television availability. The City has
previously requested DCA Cablevision and Simmons (:able TV to
orovide service to this area even though the "Red Hill" area is not
within the Initial Service Area (ZSA) of DCA or Simmons.
DCA and Simons have advised the City that it is not economically
feasible for their companies to provide this service at this time.
The City ha~~a also attempted to discuss a possible time frame with
both DCA and Si¢unons co provide this service and have been
Un30CCe~ofU:, ire OuEa ininn a rnmmr t;. e;;t frcm ,,.... or Simmons.
Comcast Cablevision's County Franchise was established prior to the
City's incoz poration and was grandfathered when the City awarded
DCA's and Simmons' franchises.
Times Mirror
Page Two
December 19, 1590
The City has been negotiating with Comcast Cablevision since 19x7
for the purposes of establishing a franchise renewal which would
include providing service to the entire "Red Hill" area.
These negotiations have been unsuccessful with Comcast Cable~~ision
due to the fact that Comcast Cablevis?on's proposal for =_ franc.*.i se
renewal would result in a new, separate cable television Ordinance.
The City's position has remained consistent in that the same cable
television Ordinance be in place for all of the City's cable
television franchisees.
AMALYBIB:
In April of 1990, Times Mirror requested negotiations be entered
into to determine the feasibility of acquiring a came television
franchise within the City of Rancho Cucamonga.
Those negotiations with Times Mirror have resulted in the attached
contract fvr the Council's consideration.
The proposed contract with Times Mirror specifies the same
guidelines as provided with DCA and Simmons. Specifically, an
Initial Service Area (ISA) has been established for Times Mirror
and at the completion of the ISA, Times Mirror will negotiate with
agreed and consistent with applicable law.
Times Mirror's ISA is provided in Exhibit A of the contract and is
designated as Area A and Area B. Area A encompasses the East End
of the City and is designated as such. Area B encompasses the
general area known as "Red Hill" and is designed as such on the
enclosed map.
Times Mirror has committed to build the "Red Hill" area
concurrently with Area A within a twelve month time frame.
Additionally, Times Mirror has accepted the City's Cable Television
Ordinance as is and the proposed contract follows the same
guidelines provided in DCA's and Simmons' contract.
There are specific provisions of the proposed contract whereby
Times Mirror has exceeded the requirements as specified in DCA's
and Simmons' contract.
The Times Mirror proposed contract has been prepared in conjunction
with recent applicable cable television legislation (AB 543 and
AB 2892). Copies of these legislative bills are attached to the
proposed contract.
a
Times Mirror
Page Three
December 19, 1990
Finally, a brief synopsis of Times Mirror is attached for the
council's review.
Re/~/~s~~n~pe~~~' ,c~~,,t~~^~fuJJJJl ly Submitt:e'7cn/f,C'~'~!/nI
erry Fulwood, Deputy City Manager
JFjdgo
D0:691
Attachments: Proposed Contract
Times Mirror Synopsis
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A RE5011/11GT7 OF ~ CI2Y 07iIIJCL, OF THE CPTY of RANCHO
QiCISLNGA, CIfLiFCld7IA, GRANiRNf A CABLE TFI.EVISICN
FRANCE;ISE 1b TI1g5 CAffi,E TFT.EVVI£aION OF RIVERSIDE
NDNM, INf:., DBA DBgNSION CABLE SERVICES
A. ~?tals
!i) The City is authorized to grant, renew, and decry franc3iises for
the rn+~struction, »;~*~*+~ a*d operation of cable television systans, aryl
to otherwise regulate cable television within the City's ho;u;daries by virtuE
of Federal std State statutes, the City's police powers, the City's authority
aver its public rightsrof~,sy', arcl City OxdiTlar[7e No. 220; acid
(ii) Times Minor Cable Television of Riverside qty, inc., dba
Dimension Cable Services has xequestai the gxantirg of a fifteen (15) year
no:rexclusive and revocable fzard,;m to oonstxvct, maintain and operate a
cable television system ~c rro,t nt to guidelines established th' the Cable
Communications Policy Act of 1984; and
(iiil The rite of Aarva+~ n...a~'_ ~~,'"`;, A-, ~a,~ Diu irerxi3ise
in accoxdanoe with its Ordinance No. 220 and all other applicable statutt~s arcl
regulations; and
(iv) All legal orcrmiiisitL's to the adgrti or. of this Resolution have
occurzed.
0. Resolution.
NOW, 'I4~URE, the City Counoii of the city of Parcho Cucamorya does
hereby find, determine, acd resolve as follo,+s:
1. In all respects as set ford; in the Recitals, Part A, o£ this
Resolution.
2 Ti.~ Mirrar CdGie Televl5irn n£ n;.,~p~,a,~.. „~^~„~-~-. ~T~~
Dimension Cable Services is hereby granted a fifteen (15) year non~YCClusive
and revocable franchise to corrstxvct, maintain arcl operate a cable television
system pursuant W the texas and omditiare set forth in said franchise.
3. Times Mirres Ca61e Television of Riverside m;aity, Inc., dba
Dimension Cable Services shall, within ten (lo) days of the passage of this
Resolution, file a written aclcn~ledryoent aryl aooeptance o£ the trans,; with
rise City Clerk where;pm said franchise shall immediately becane effective.
4. '!he City Clerk shall certify to the adoption of this Resolution.
°1
AGREEMENT
A[J Af'>REEMENT GRANTING A NON-EXCL'JSP'E
F RANCIIISE TO TIMES MIRROR CADI.E TELEVISION
OF RIVERSIDE COUNTY INC. TO OPERATE A
CABLE TELEVISION SYSTEM IN THE CITY OF
RANCIiO CUCAMONGA AND 6ETTINC FORTH CONDITIONS
ACCOMPANYING THE GRANTING OF THE FRANCHISE
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A G R E E M E N T
THIS AGREEMENT, made and e..te rt3 into thin day of
1990 at Aanchc Cucamon qa, California, by and between
the City of Ran the Cucamonga, a municipal corporation of the
State of Ca lifronia ("Grantor"), and Times Mizror Cab ie Television
o£ Ai verside County, Inc., dba Dimension Cable Services
("Grantee").
W Z T N E S S E T N
WHEAEA5, the City of Rancho Cucemonya, pursuant to Federal
and State law and to Title 7 0£ the Rancho rn,.._~..;;;~_ ,,,,;;l ~ideS
Code (re to rred to as Title 7 hereafter), is authorized to grant
one ar more non-excl naive revocable Lranehiaes to operate, construct,
maintain and reconstruct a cable television sys Cem within the City;
and
WHE RL•AS, the City, after public hearings, has determined
that it is in ehe beet interest of the city and its residents to
gram a franchise to Times Mirror Cable Telo vision of Riverside
Cable
co:,nty, Iap., dha Df mensi c.^. 9a rv oas.
NOW, THEREFORE, the city (hareinaf tar also known as the
Grantor) hereby granU to Tine Mirror Cablo Television of
Riverside County, Inc., (MrunaLtar ehe Grentea) a cable
talc^Saion franchis• in accordance with the provisions of
Title 7, and Chia Ayreement.
TABLE OF CONTENTS
SECTZON 1: GRANT OF FRANCHISE, .
SEC'"ION 2: DEFINITIONS
SECS'ION 3; GENERAL R£OUIREMENTS. ,
SECTION 4: CONSTRUCTION RNp SERVICR
REpUI REMENT3.
SECT:'Oti 5: SYSTEM DESIGN AND PERFORMANCE
REGU I AEMENTS .
5ECT:ON 6: SERVICES AND PROGRAMMING. .
SECTI ~N 7: SVPPORT FOR LOCAL CABLE USi~GE .
S£CTli)N 3: PURCHASING, TRAINING AND
EMPLOYMc'HT AEOVI REMENTS .
SECTICN 9t REGULATION. .
SECTZOiQ 10: FORCE MA.IEUREt GRANTEE'S INABILITY
TO PERFORM.
SECTIOD 11: HOLD HARMLESS ,
SECTION 12: SEPARABILITY. ,
EXHIBIT A: CONSTRUCTION AND SERVICE SCHEDULE
EXHIBIT B: SCHEDULE OF GRANTEE COMMITMENTS
EXHIBIT :. C'ALZFORNIA LAN A.B. 5~3
EXHIBIT C: CALIFORNIA LAW A.B, 2392
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.. GRANT OF FRAtiCHZSE
1.1 Grant. Times +tirror Cable Television of Riverside
Cc~.`.ty, Inc., a corporation with its principal place of business
Located at 26858 Cherry Hi?.ls Do ule vard, Sun City, CA 92361
is hereby granted for itself, Sts st ecessors and assigns, subject
u the to r:ea and conditions of this tgreement and Title 7 the
franchise, authority, right anC pri v. legs, for a fifteen ;15)
year period £rcm and after the effective data hereof, to construct,
operate and maintain a cable televiel~n system within the strae is
and public ways within the CSty of Rancho Cucamonga.
1.T Ri aht of Grantoz to Uaw ^ranchlse. Cran tee acknowledges
and accepts the right of Grantor to issuo a franchie~ _;,; ~, wi<ee
uy<eee ;t ahnll not now or at any time hereafter challenge eliie
right in any way or in any local, State or Federal court.
1.J Effective date of Franchise. The effective date of
the franchise =yell be the data of exec ition of Chia Agreement
by the Cranto r, subject to prior exec^t:on by the Grantee.
1.J Duration. Ths urm of the franchise shall be Fifteen
(15) years Lmm the •ffactiw da4 hs rso` at which time it shall
expize and be of no force and effect. w newel ehaii be in
accordance with Title 7 end applicable ler.
1.5 Franchise Not Exclusive. Th• t.~anctfis• shall not be
construed as any limitation upon the right of Grantor, through
its proper otti cars, to grant to ocher par ton^ or corporations
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rights, privileges or euehori ty similar t~ or different from
the rights, privllagas and authority here.:n set forth, In the
same or other atroe is and pub llc ways or ~~ublie places by
franchise, permit or ptiterwise, provided, however, that such
additional grants shall not operate to materially modi .y, ro voke
or terminate any rights granted to Grantoe herein.
1.6 French iae Acceptance. The Gran ulo, by exoeuCng
this Agreement, quaran tee• per to rmance by Grantoe o! all of
Gran tea's obligations hereunder impoaod by Title i end this
Agreement.
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2. DEFZLiITZONS
For the purposes of this AgZeement, the foLiawing words,
to r:~s, phrases, and theiz dew+vaticns s:~a Li have the meanings
given herein. when not incers is tent with the context, words
used in she present to nse include Che Future tense, words in
the p.urar number include the aincular number and words In the
s ir.gvlaz number include the plural number. The word "shall"
is always mandatozy and not merely directory. The definitions
contained in Title 7 aze incorporated heroin as iE Fully sat
forth.
2.1 "Agreement" or "FZanchise Ayroement" means this
agreement and any omen dments or renewels thereof.
2.2 "Grantee" srnna Times Mizzor Cables Television o£
Riverside County, InC. ar any person or entity who or which
succeeds Times Mirroz Cable Television of Riverside County, I:.c.
.n accordance with the provisions of thin franchise.
2.3 "Grantor" or "City" means Che City o:': Rencho Cucamonga
or its di?leya to ae ring with In t.'ie sc;pe of its jurisdiction.
2.4 "In1 t1 a1 Service Area" or "13 A" me ana the peograph~c
area of the Clty, identified in Chia Agreement, whose residenta~
mu st be provided with cable service prior to Grantee providing
Service w any other area n~ Cho ricy.
2.5 "Snetion" meena any section, subsection or provision
of this Franchise Agreement.
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3. GENERAL REpOiACMENTS
3.1 Governing Recnireran ts. Granted shall comply whin the
requirements of Uiis Agreement and title 3.
3.2 Yranchise Pee. The Grantee shell pay to the Grar. for an
annual fzanchise fee of five percent (Si) of Gresa Annual Ae venues
derived from opera tions within the C_ty, payable quarterly no later
than April 30, Suly 31, October 31 and „antrary 3i of each year,
for tho preceding quarter.
7.3 Re covezy of Franchise Coate. As provided for in
Title 7, Gran tae within thirty (]0) days altor reeeipt lrom
C ran for of a written itemization, shall reiriburae Gxan for for
its reaacnable ant-cf-packet coats incurred during the frar.c;hise
process, not to exceed Twenty Thousand Oollaxa ($20,000).
7.4 Payment to Grantor. No aecaptance of any payment shall
6e construed as an accord that the amount paid is in fact the
correct amount, nar shall such accapcmice of payment be construed
as a release of any claim the Gran toz may have !or further or
additional enure payable undor the provisions of tF.is Agreement.
A11 amomts paid shall be subject to audit and recomputat:.on by
the Grantor.
3.5 Liabilit Insurance and Indomnifica t{on, p~+qn the
efle ctive date of the franchise, Grantst shall furnish proof
:l:ee satisfactory Liability insurance policies axe in force,
in the minimum emoun is of:
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° workers Compensation -- As required by the
state of California.
° Come reheneive General Li ab iii -- 57.,000,000
each occurrence; 55,000,0^0 umbrella
° Comprehensive Automobile Liability --
51,000,090
Tha liability insurance policies shall be maintained
throughout the duration of thin franchise, with a certifies to
indicn ling coverage filed with Grantor. Tha insurance carrier
shall be au thori and to do business in California.
3.6 Security Fund. Within thirty (30) days aster the
effective date of the fren ch i.ae, Grantee shall deposit into a
bank account of Grantor, established by Grantor, and maintain
on deposit, the sum or not lees than 'xvo aunarea Tarty rnoueana
dollars (5250,000) as ae curity. OE said amount, no lase than
Twe r.ty-Pave Thousand Dollars (525,000) must be in cash; the
remainder may be in the form of an irrevocable letter o! crudit,
rho form of which is sub sect to the prior approval o! the Grantor.
When service has bean mods availabU to all reaiMnu of Area B
of the ISA, she security fund shall be reduced to Tv»nty-Fiv
Thousand Dollnzs (525,0001 in the form o! en irrevocable letter
of czedi t, and maintained et this amow~t throughout the term of
the Franchise.
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4. CDNSTRUCTIDN AND SERVICE REQUIREMENTS
6.1 General. The Grantee shall wet oz exceed all the
ma torial construction and service nquirewnts set out in this
Franchise Agreement, re gazdless of whether its aubscrSbeY pene-
tration and/or revenue essumptiona prove to be correct.
4.2 Construe tion Schedule. The ISA is defined ae indicated ~
in Exhibit A of this Agreemen t. Gran tea shall compla to system
cons tructlon and offer service to all unaarved reaidencea in
Area S o[ the ISA within ewelvo (12) months attar the effective
do ee of this Agreemen t. Grantee shall complete construe Lion and
provide service to all reaidencea in Area A of the ISA concurrent
with the oecupeney of Ghs reaidencea.
4.3 Liquidated Dsmeq_s. It !s understood that it 18
_ ~-c~i:,l. .,. cnis elms to reeaonably eaeertain the total extent
of damages which may ba incurred as a result of a fal.lure by
Grantee to complete conatsuctlon within the cone truction period
spec Pied in Chia Agrsamen t. Such impraeticeli ty arises out of
the di F£icul ty of establlahinq a cost for future damages suffered
by the public who are denied services or Cho effect of non-
completion with respect t0 lnconvenianca, anxiety, frustration,
financial loan, effective and efficient zsyulation of the fzpnchi~a
for the proabtion end protection of the public convsnianea, health,
safety and/or welfarn, or other factors which ere lncapablo of
steasuramont in precise monetary Nrma. Tharatora, Gran tea offers
and egress to compensate the Grantor in ehs amount of F1va Rundred
Dollars (5500) per day for each calendar day on which Creates
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has not completed construction of the aye tom and provided
se r~~i ce to the residents of Area B of the ISA in aecordar.ce
with th is Agreement.
Tha Grantor, upon a proper showing, agrees to waive such
liquidated damages in the evert that a failure to complete such
construction arises out of Acts of God: earthquake, liyh tniny;
flood, fire; explosion, riots oz civil die CUrbances; or oti:er
causes not fo reaee ab la end beyond the control of Grantee.
For any schedule delay that may occur, the burden of proof
shall be on the Grentea to demons tre to that such daisy was
beyond its seasonable control or was nos ze asonably foreaeeablo.
The imposition by Grantor of any damayea shall 6e in accordance
with the procedures set forth in Section 9,2 hereof..
a,e o~Gn. ..e - eLa u~Livu• gran eor sna11
have the right to inspect all construction or ins taLlation work
perfcrmed sub;ect to the provisions of the franchise and to make
such tests as it shall finB necessary to ensure compliance with
the farms of the franehie• and other pertinent provisions of law.
4.5 Provislor. -` Service Outside the ISA. Bubeeruent to
provision of ecru tce to all real dancer of Area a of the ISA,
Grantor and Grantee shall neyo tieth in good faith to reach an
agreement within ninety (40) days alter a Gran ue request, to
extend Grantee's franchise and service area as mutually agreed
and eoneia tent with applicable law, The neyotiation^ shell include
appropriate indam:~ificntion to Grantor against litigation that may
contest the validity of any such extension of service arcs,
superseding or modifying the hold harmless provisions of
Section 11.1 herein. /
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4.6 PoaJiSle Termination of Franchiso.
Grantor and Gran tae agree that Gran tom may terminate this
Franchise Agreement under either o£ the following cizcumseance r.
(a) If Gran Cae offers the ftanchiae fcr sale, Prior
to the provision of service to Area D of the ISA and to all
occupied residences of Area A of the ISA,
lb) Lf Grantee has not acquired a suitable headend
site for its cable system in the City, within six (6) mon tAs
of the effective dato of this Agreement.
0.7 Office. Grantee shall provide an office within the
City no leear than the data of completion of service to Azea B
of she ISA. Grantee shall provide a toll-lree telephone number
Eor calls from C1ty subscribers.
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~. SYSTEM DESIGN AND PERFORMANCE R£~UIREMEN•^S
5.1 System Capacity. The cable televiaion system shall
be installed to deliver signals at Lrvquenc:es up to at least
Lour hundred fifty !a50) .:agaherez iMHZ), with specific capacity
as indicated 6e low.
Sicaal
Signal Frequency Channel
Direction Rnn ye Capaci~
Outbound 54-450 Mliz 60-G2 Video + 2M
Inbound 5-30 MHz d Video + pets
5.2 Capacity for interactive Residential Services. Grantee
shall provide the capability for interactive reeiden flee services.
when such se rvicea are offered, all customer equipment necessary
for ouch services, such as addressable intaradtive ccn ve mars,
home eerminala and hones de to ceors, shall be provided to subsrr, ham..
ny Grantss in accordance with es tab liehed and uniform rate schedules.
5.3 Cablecae tins Facilities. Upon the effective
date of this Agreement, GrAtit9e shell provide a
capital grant o£ 515,000 for cab lecaating equipment, which nay L•e
located at Chaffey Community College. The College, through
contract with the CSty, may mane qe the Public, Educationnl and
Government (PEG) access program !or all access users of the cable
sya tam. In coneide rAtion o4 the equ:paant 3ran*, Gran tss aY.all
-ot be requL-s •? to provid! eny additional locs.l origiaaLion ur
nccesa facilities or peraonna 1.
5.4 Interconnection, Upon Grantor request, Grantee shall
negotiate in good faith to interconnect access channels of the
cable televiaion system with other cable syatemA in the City.
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within three (3) months of a Grantor request, Grantea aha 11
report to Grantor Che results of the negotiations.
5.3 Emergency Alert C~a ability, Within six (6) months
afrar a Graatar request, Grantee shall provide the system capability
to transmit an emergency alert signal to all participating
s~.ibscribe rs. Grantea shall also provide an emergency audio
override capability to permit Gran tos to interrupt and cab latest
an audio message on all channels aimultaneoualy in the event of
disaster or public ems rgsncy.
5.6 Stands Power. Grantee shall providn standby power
pcrc racing cepacity at the cable communications system control
ce^n tar and at all hubs cnpebls of providing twelve (12) hours
of eaergency poker aupp ly.
5.7 v..,, r.tal ;,,, L~~l ~.oex. Grantee shall provlda subscribers,
upon request, with a parental conercl locking device or digital
code that permits inhibiting the video and audio portions of
pay cl:anne ls.
5.8 Technical Standards. The Federel communications
Commission (FCC) Rules and Requla bons, Past 76, Subpert &
(Technical Standards) antl any amendmsn is thereto, shall apply,
Gran see agnea, howwer, to utilize the lollowing performance
cbja_c r.vss as inesrnel goals and one indication of Gran tea's
quality service. Grantor and Grantee ngrN that the performance
objectives, In themselves, will not be used to indicate any
breech of the franchise.
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Psrfo zmanw obis etivaa (longest rmplifior cascade)
A~ Signal to noise ratio y5 dg
B. Hum
29
C. Comooaite beef, ratio -55 39
U. CroSa modulation ratio -55 dB
C /
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6. SLPVICLS ANO PROGRAMMING
6.1 Services end Prcgramming. On less emergency conditions
prevail, Grantee shall not reduce the number of basic program
servieae withqut at least thirty (30) days prior written
notification to the Cran for and to subscribers.
6.2 Leased Charsnel Service. Gran tae shall offer is seed
c)sannel service at nondiscriminatory re tes and on reasonable
eezms and conditions, in accordance with applicable law.
6.3 Public, Educational and Government (PEG) Channels.
t ~~an tae shall provide the sys tam capecity indicated in Section
7.2(c) h.rcin Lor public, educational and govlrnarnt usage
throughout the life of th• !ranch ice. Gran tea suy ut111za
such channels if not utilized for PEG purpose, but ^ha 11
relinquish the ch.n.;~__ :;; ;,;,in ux (6) months of a Cran for
notification of intended use.
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~. SUPPORT FOR LOCAL CABLE USAGE
7.1 pub Lic, Educational and Government Access. Grantor,
at its option, may delegate to an independent non-profit entity,
such as Chaffey Community College, the authority t- manage PEG
channels, support funds and other considerations provided 6y
the Grantee and/or othe ra, designe3 to promote and develop
public-benefit usage of the cable ayatem.
7.2 Grantee Support fox Public Cable Sva tam Usa4e. Grantee
shall provide the following or equivalent auppart for public
cable usage, as a minimum:
(a! Provision of the aceees equipment grant designated
in Section 5.3 of this Agreement.
(b! pmvla ion of a grant of one dollar (51.00) per
subscriber per year for PEG acnee support annually for «~,., +if:
of the franchise, based on the number of basic subac ribars
connected to the ayatem at the end of sash year. Grantee agrees
roar this Grant is noC a franchise fee, but ra.her i9 made in
lieu of the Grantoe providing and maintaining Vu++lic 3ccesa Facil i{i6S .
(c) Grantee agrees to make available for Government
and Educational use one (1) composite video channel. This
channel shall be dedicated for the term of the frnnchise,
p rovlded that Crantee may utilize any x_*tion of this ohannel
not ache d~~~.ed for Government end Educe ti~nal use.
No earlier than twenty-four (2a) months after the •f lactivm
data of this Agreement, Grantor ,aay request and Grantb shall
provide a second abated channel for Educational and Government
uso. Grantor may dfot submit each a request unless the access
channel already being utilized is cab is Gas ring at laaat one
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htndred (l00) hours per month for six (6) continuous months,
of unduplicated vldao programming, and, further, thnt additional
contemplated Government and Educational prcyramming cannot
effectively utilize the existing channel during the Buie it 39
available.
7.3 All itoms indicated in Section 7.2 above shall be
provided in accordance with the schedule attached in Exhibit B.
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B, PURCHASING, TItAINZNG ANU EMPIAYMENT HEpU2R£tLrNTS
8.1 Local Purchasing and Hiring Policy. Gran toe shall
estav lash a policy of employing City re alders to within its cwn
operations, snd,~or utiii zing C1ty-based firms for purchases and
cons truetion subcontracts, to the maximum extont possible.
Grantee shall provide Grantor with a written ropo rt of local
purchasing and hiring achio vements, upon re aeonab la Grantor
request.
8.2 Equel Employment Opportunity and Affirmative A~t~on
Progrema. Throughout the Grm of the lranchiq, Gran tea shall
conduct lie 6usineas es an Equal Employment Opportunity/
Affirmative Action Employer. In eddi tron, ehroughovt the term
of the franchise, the Cran Ge shell maintain a policy Chet all
employment de cisirnre, .^_tGrcc .... yauceaurae aro based on
merit and ehility without discrlmi.nation in viplation of Ste to
ar cede rnl law on the basis of an individual's race, color,
religion, age, sex, r..aional origin, or physic:i or mental
handicap. The Gran toe's po lioy shall apply to ell employment
actions including advertising, recruiting, hiring. promotion,
tranafe r, remuneration, ealsc trop !or training, compeny benaEi ea,
disciplinary action, lay-o!t and terminwtion. The Gran tea shall
carry out this polity through eontlnwd dedication W a determined
and sustained effort CG provide equal employment opportunitioe
to all by taking atiirtxtrve action tp employ and advance in
employment quallfiad women, minoritiu , persons who are
physically or mentally hnndi capped and veterans.
- 17
9. RCGULATYON
9.l Franchise Wquletion. The franchise granted under
this Agreement shall be subject to regulation by Gran tos in
accorflanca with the p:o visions of Title 7 and applicable iaw.
9.2 Hemediee for Franchise Violations.
(a) In nddi tian to the remedies For delays in con-
struction as specified in Title 7 and Section A.3 of this
Agreement, Grantor reaervee the tight to impose the following
remedies in Lieu of liquidated damegea in the event Grantee
violates any other meterinl provie San of the franchise, prcvided
that Grantee has not commenced cq rzactiva action within thirty
(3G) days written notice by caYtS fied mail to the general manager
of the Grantee.
(U Assess damages, not to exwed Fiftv Do11w.e
(S50) per day or per incident, for G: nn tae's individual willful
and/or repeated violation of the Franchise or failure to tako
co rrectiva action with respect to n violation of any me terial
provision of the franchise.
(2) Require Grantee [o make rate reba tee to any
cuetgme rs of classes of cus Comers for degraded or Snterruptad
service in such amount end on such besi• as Grantor may deem
Yeaeonable.
~3
- 18 -
(b) Zn the event the stated violation is not
reasonably curable withir. sixty (60) days, the frenahiea will
not be terminated or revoked or damages assessed o+lrauant to
Sac ti On 4.3 or 9.2(a)(1) of this Agreement if the Grantee rtovidns,
within the said sixty (60) days, a plan, satisfactory to the Grantor,
to remedy the violation and continues to demonstrate good "_ai tk:
u. seeking to uorrgct said violation.
(c> In determining which remedy or rsmodies for
Grantee's violation ere appropriate, Gran tar shall take into
considers lion the nature of the violation, the person or persons
bearing the impeot of the violation, the nature of she remedy
required in order eo prevent lurther such vio latiana and such
o tl~er ma tta rs as the Grantor may deem appropriate; provided,
!ecrrtcar, W...t auayuaw rsmscie^ must Aa imposed if service is
in any way mn terially lessened, or ii any ma to rial provision of
this Eranch ise is not rnmplied with.
(d) wish in ten (10) days after races?t of a writter.
notice of a viola Lion from Grantor, Gran tss may request n
heerinq before a Grantor-desianeted hearing alfic~r in a full
public procaeding affording due process. Such hearing shall
be held within shirty (70) days of the receipt of the request
therefore.
- 19 -
30. FORCE MAJEURE: GPANTEE'S INAnZLI TY TO PERFORM
10.1 Zn the event Gran tee's performance of any o« the
to rma, candi Lions, obligaticne or requiroaen to of this Franchise
or Title . Sa prevented or impaired due to any cause beyond
!ts reasonai~le control or not reasonably Foroaeeabla, ouch
i:,ability to perYc rm ahnll be deemed to be excused and no
pennltiee cr sanctions shall be imposed as a result thorcoF,
provided creneee has notified Grantor in writin4 within thirty
(]D) days of its diarnvery of the occurrence of such an event.
Such causes beyond Grantse'• renaonahle rnntrol or not reasonably
Foreseeable shell include, but shall not be limited to, ac to
of God, civil emergenc!ea and labor unrest or strikes.
~~~
-20-
1:. HOLD HARESI.E55
li.l The Grantee shall defend, indemnify and hold haz^,less
the Grantor, its cffice rs, boards, commissions, agents and
emplo}•ees, and each of t.9em, against and from any and all claima,
demands, actions aui ts, liabilities and judgmEnte of eve r}• kind
and nature and regardless of the merits of the same, arising oct
of or related to Grantee's exercise of rights arising from the
Franchise granted pursuant to this Agreement and to :ills 7
including costs of investigations, alto Treys' lase and court
costs in the defense oP any actions, to the extent that such
claima or demands are alleged to be the result of any error,
omission, intentional act or neyliaent ace of Gra^. ar cr say
persons employed by Grantee.
witY+ specific reference m California law, Grantee agrees
to indemnify and hold Grantor harmless Erom and against any
lawsuits which challenge Grantor's iaeuan ce of a cable television
franchise to Grantee under California Assembly Bill 543 ("AB 543"),
which became effective Janunry 1, 1990 (a copy of which is
attached hereto as Exhibit C1 and California Assembly HSI1 2992
("AB 2892") which beeomea effective ,;anuary 1, 1991 (a copy of
which is attached hereto es Exhibit D). In the event of any
lawsuit alleging that Grantor violated A8 5d3 and/or AB 2892 in
the issuance of a trench lee to Grantee, GrantO: shall:
(a) Promptly no eify Gran teo; and
~Y
s
-u-
ibj Grant to Grantee fuli control of the defense
and settlement of such. actions and
(c) Cooperate fully with Grantee; and
(d) yoke no compromise or settlema ne of any such
action without the prior writton consene of Grantee.
The as ttiement o£ any claim or action by the Grantor witi:cut
Grantee's Frior written consent will releese Gran tae from its
oblige tiona Conte fined in this AB 543 and/or AB 2892 indemnification.
Thia indemnification shall continue in effect Lor a period of
up to one (1) year following the affective dote of this Agreement,
or when Grantee has compla tsd Sts service requirements for Azea S
of the ISA, whichever occurs latex, end provided, that Gran tae
shall continua that indemnifieation throughout that full period
of litigation, should any such li tiga Lion take place.
_zZ_
12. SEPAEABILSTY
12.1 If any materiel eection of Title 7 and this Agzeemen t,
ae determined 6y the Crantor, is held to ba invslid oz preeTptad
by Pede ral or State regulations or lava, the Grantor shall
negotiate with Granted appropriate modifications to this Agreement
to provide reasonable rel!ef ;.ro:;, ouch invalidity or pnomptien.
if the parties are unable to reach agreameat on such roodifice-
lions, the dispute will be submitted to An arbitrator, in
acco zdance alth Calito rnia law, who will determine what modifi-
cations are appropriate and the erbi tratnr's decision shall bo
binding on the parties.
_ 2] _
IN WITNESS WHEREOF, Grantor and Grantee have exscutod
this Agrerment the date and yenr first above written,
APPROVED AS TO FOAM: CSTY OF 2uiCiiO CUCAMONGA
A Munioipal Corporation
Dy
City Attorney Mayor
Data
ATTEST:
_itr Giurx
(SEAL)
TIMES MIRROR CAE LE TEbLVZ5I0N
CF RI VSAS_T DE wuNi`y, INC.
sy
Data
~~
°xiusxT a
CONSTRUCTION Atan SE$7:CC sCfftl`ULL
V
t3) After the second (2nd1 system and services review, six (6)
years from the effective date of this Agreement, the City
mny issue findings indicating that an independent Institutional
Network is economically and to c:.rscaily foaaihle and may
require the construction of Chia nst~ork. ouch a requirement
eh all be imposed on all Grantees concurrently.
~~
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EXHIBIT A
(1) The Initial Service Area (SSA) is defined as Azea A and
Area H, as outlined in the anclo~a% map. Area B Lies
within the franahix and ee rvi ce erase of other Grar.tuos
(Comcaat and DCA Cablevision). Grantee agrees to make
service available within twelve (12) months of the effective
date of this Agreement to all homes within Area H not currently
served by any other Franchisee. Grantee hoe no obligation to
offer aerviee to any residence carved by another Grantee. Gcentee
shall be permitted to construct a transportation trunkline
be [wean Arse A and Area a for the purpose of delivering signel•
£rom its fie adend to the ZSA.
(2) Grantee shall offer aezvict to Area A concurrently with
cromple lion and occupancy of residences in Area A.
(3) Grantee shall not be required to provide activated two-way
capacity nn *ha resldantiel network For at lease three (3) years
after the effective date of this Agreement. After the
first system and servieee nvi~w called for in Sae lion 7.03.080
of Title 7, the City may issue findings Lndienting that
a.c tivation ie economically and technically feaslkle and
may require such activation within a reasonable period.
~3y
EXNIBi^ B
SCuF.~ULE OF GEANTEE CCMMI:MEY1'S
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EXIlZB?.T B
S,! cranchine paymenea shall be madn quarterly or. a enlendar
Saaie, an3 be due and payable within 30 deye of the end
of .?ech quazter.
(21 The cablecea ting equipment grant of Sectior. 5.3 shall be
pzo vi ded upon the eLtective de to of 'ranch is e.
(3) ':'he P£G scceas support grant of Seotion 7.3 (b) shell be
provided no later than ~anuazy 71 of each year,
EXHI82T C
CALIFORNIA LAW A.B. 543
~J
AMISNDEI7 IN SENA'T$ AUGUST 27, 1980
'tME~ 1DSD IN SF,NA'I'E AUGUST 11, 1980
uu-oanu r r~t~rvsL,y~ atcui,.a ~sa,oN
AB9EIKBLY HILT,
No. 34,7
Innodund by Auambly iHambar Mocn
February 8, 108D
An act to amend Sactlon x7088 of, to add Sactlon
~° Co"ernmeat Coda, ralatia~ to aabla blavltton~'~ to,
AD 6x7, a ~~~rm~ ~ ,
Ealaetn~ Lw amhe*ISea eb•
dry and oeunty of a aabb or ~ ty antenna talewN.~°r
rYatem. Itdsn~. t_... .--
een~ ~,f0 a/gbtl/ti aLd~eo{prp ~°~ UdI1dN
Can}lOt a~N• dl0•bla ~ ~'POiattOA Ot~aNeQtat~Sp y
~'~°~r ~rnaAC Cpn~t[nCtten
w e la~6ialatl~ooe ~ »~em wiWau a~t~ 1'he bul.veutd
9adtnp and daciaratlons, and x
matters that xrould haw to be ~darad at a Dub ~~Y
~~dooadttbns that ~wuld love to 1» nut bekra a~oa~yu
that ~ ~ ahadY beam R~t•d, 77u bill ~dwhw a
co W' ~~uro~td~ab `viho :'tcorn ~ m ~~ia
addtttond aabla aerHOa [rsaohka w aaY era: of tlr
PM' V~ r ~,
and condltta ~ ~+tY' of ttu ltppogn8 of addtdotul t~
utxa Hu emtiaa of the FranchW, 77u bW
o~wketh~~ not topant~thut addlUanal~fraochW wlthin~
n a
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EXB IB IT D
CALIFORNIA LAW A,H. 2892
~/
CAUPOANIA I.Et:1S1A'nJnE-l9aP~a1 a6CUt.ta SESSION
~ ASSEMBLY BILL No. 2892
Intraluced by Assembly Member Mooro
~•
February 13, 1980
An act to amend Sectlon 53066.3 of the Government Code,
relating to nble televWon.
11:(3aRA'nVa COUNraL3 DIDm7'
AD '~Q, v introduced, Moore. Cable television.
Existing law empowers any dty, county, or city end county
in the sate to authorize by fraachim or Dcense rho
construction of a community antentu television system.
`., 7.risling law requires any fraDehise granted to provide cable
television service in an area already franchised and served by
en existing cable operator to requre the franchisee to wire
and serve the ssme geographical atop, and to contain the
~ same public, educational, and governmental access
requirements tlut ue set forth a the esisting franchise.
This b111 would limit that rennirwm..n~ ~n e.... nAAU:...,..1
franchise to provide cable television service In an stars in
which a franchise has abeady been granted and where an
eelating cable oppeerator fa providing service or certlfia to the
franchising nuthority that the exRting operator rs reedy,
waling, and able to provide service. It would also require the
Frenchieee to wire and serve the geographical area within a
reawnrble time, and in a sequence which does not
`~ dlscritninete against lower income or minority residents.
Vote: mglority Apprapriatlon: no. Fiscal committee; no.
State-mandated local program: no.
`..
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~~
AH 2892 -2-
The yeoyle of the State oFCaL'farnia do enact as follows: `~'
1 SECYION 1. Section 56068.3 cf the Government
2 Code is amended to road:
3 53086.3. (a) !f a city, county, or city and county elects
4 to grant an additlonal cable teiaviaion Franchise in an aroa
S where s kanchiae has already been granted to a cable .~
6 televialon operator, ik shall do w only after a public
7 hearing notlced pursuant to Section 8066, In s newspaper
8 oFgeneralcirculationardefinedinS~tion8000,wherea0
9 of the fo0owing have been considered:
10 (1) Whetlser there will be slgdflcant positive or
it negstivc impaeb on the community being served.
12 (2) Whether there wil- be an unreasonable adverse
13 economic or aesthetic impact upon public or private
14 property within the area.
15 (61 Whethm there wN be an unreasonable disruption
16 or itirnnvenienca to existing user:, nr any adverse efFect
17 on future use, of utfllty polar, public easements, end fire
IB public righb~oF'-way contrary t~o the intent of Sectlon .,~
19 T87.5 of the Public Utilitla Code.
20 (~) WheWer the frurchiw appltcont has the techulcal
21 and flnencial abWty to perform.
22 (5) Whether there it any impact on the franchitlng r ,
'L'f aUthOrny~a mterm[ in 11dVing Univenfll Caole service.
24 (8) Whether other soMetal fntermb generally
75 constdered by franchising authoridm will be met.
28 (T) Whether the operation of an additlonal cable
27 televiaton system in the crommunlty is economically
28 feaslbk.
29 (8) Such oNer additioiul matters, both procodurel
30 and substantive, u the franchising authority may
31 determine to be relevant.
12 (b) Nothing in this sectlon prevents any Mty, county, '~
33 or city and county from considering the npproval or
34 denial of an sdditioiwl cable serWce franchise In aN er any
35 part eF rise arm of the city, county, or city end rnunty,
36 subJect to comyliance with subdivision (d), or the
37 Imoosir¢ of additicna! terms and condlttosrs upon the
38 grrnting of the franchise, as the Illy, county, or city and •.~
w a
T~
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vv
v
-~" AB 7892
1 rnunty determines fa necessary or appropriate.
2 (c) The city. rnunty, or dty end county shall make a
3 flnel determinatlon as to whether to great the additlonel
4 kenchise wlthfn siz montlu of the ePpliwtion date unless
s the lurladicttoa ~ eatab!Ish that the a~ cant has
6 unreasonably delayed proabdinge designed ~e confider
T the matters set forth in Parugrcplu (1) to (8),lndusive,
8 ofsubdIvldon (a).
9 (d) Any additional frnnchlse granted to provide cable
10 talevhdon service in en area already 4mahiasd ~}
11 served by ae eeisehag eabk eperater ~ wbdch alnncblse
is ~ ~'eadY been granted std where M ea. cal,r-
pentor Ls pmviding service or ceryg ~ the
14 lranchWng authority that it lr ready, wiUht~ and able to
15 provide service, chap require the kaaehiwe to wire and
!6 serve the same geograp ice,: area within a reawnable
17 time and in • aegeronce whlc6 doer not dbcrimGute
18 against lower income or taLsority roddettta, and ehap
19 contain the acne 1ns611e, educatlonal, utd governmental
20 access requiremenb that are set fort!: la the exiaC•ng
21 kanchiae. This ntbdlvis(,;n does riot apply whars ajl
22 eaiathtg cable oi+srators ca~tily to the Gaachising
2S authority that they do not (mend to provide sutdce
24 within a reasonable times rn re..,... ti ~.. ,
IJ oy the additions! Fret ~--- -"" •" "" uuuwy JQ^'eO
chLre.
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