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HomeMy WebLinkAbout99-084 - ResolutionsRESOLUTION NO. 99-084 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA AUTHORIZING THE RENEWAL OF A CABLE TELEVISION FRANCHISE AGREEMENT BETWEEN THE CITY AND COMCAST CABLEVISION OF INLAND VALLEY, INC. THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA DOES FIND, DECLARE, AND RESOLVE AS FOLLOWS: SECTION 1. This resolution is adopted in consideration of the following facts and circumstances: A. Comcast Cablevision of Inland Valley, Inc., a Delaware corporation doing business as Comcast Cablevision ("Franchisee"), currently operates and maintains a cable television system under the authority of a franchise previously granted by the County of San Bernardino, and an "Interim Operating Agreement" that was approved by Resolution No. 93-208 as adopted by the Rancho Cucamonga City Council ("Franchise Authority") on November 3, 1993, and thereafter extended on a periodic basis. B. Franchisee has requested a renewal of its cable television franchise ("Franchise") in the currently existing franchise service area. C. Negotiations between the Franchise Authority and the Franchisee have been conducted intermittently over a considerable period of time. In addition, City staff has conducted inquiries for the purpose of evaluating the future cable-related community needs and interests and the cable operator's performance under the existing Franchise. A new agreement has been negotiated entitled "An Agreement between the City of Rancho Cucamonga and Comcast Cablevision Renewing a Non- Exclusive Franchise to Operate a Cable Television System in the City of Rancho Cucamonga and Setting Forth Terms and Conditions Relating to the Renewal of the Franchise" ("Franchise Renewal Agreement"). A copy of the Franchise Renewal Agreement is attached as Exhibit 1 to this resolution. D. The Franchise Authority has reviewed the present and future cable-related needs of the community and its residents, the Franchisee's record of service and its ability to carry out its obligations under the Franchise Renewal Agreement, and the Franchisee's financial, legal, and technical qualifications to hold and to operate Resolution No. 99-084 Page 2 SECTION 2. SECTION 3. SECTION 4. a cable television franchise, and has determined that the public interest would be served by authorizing the Franchise Renewal Agreement. This determination is based upon the following findings: (1) The Franchisee has substantially complied with the material terms of the existing Franchise and with applicable law; (2) The quality of the Franchisee's service, including signal quality, response to consumer complaints, and billing practices, but without regard to the mix, quality, or level of cable services or other services provided over the system, has been reasonable in light of community needs; (3) The Franchisee has the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in the Franchise Renewal Agreement attached as Exhibit 1; and (4) The Franchisee's performance of the obligations set forth in the Franchise Renewal Agreement will reasonably meet the future cable-related community needs and interests, taking into account the cost of meeting those needs and interests. The Franchise Authority authorizes the renewal of a nonexclusive franchise with the Franchisee to construct, operate, and maintain a cable television system within the City. This authorization is made in accordance with the applicable provisions of Title 7 of the Rancho Cucamonga Municipal Code, the applicable provisions of state and federal law, and the terms and conditions of that certain Franchise Renewal Agreement attached as Exhibit 1 to this resolution. Franchisee will reimburse the Franchise Authority for all costs and expenses reasonably incurred by the Franchise Authority in connection with the negotiation, drafting, and processing of the Franchise Renewal Agreement; provided, however, that those costs and expenses will not exceed the sum of $ , and will be set forth in an itemized statement transmitted by the City Manager, or the City Manager's designee, within 30 days after the effective date of this resolution. That certain Franchise Renewal Agreement attached as Exhibit 1 to this resolution is authorized and approved, and the Mayor is authorized to execute that agreement on behalf of the Franchise Authority following its execution by the Franchisee. Resolution No. 99-084 Page 3 SECTION 5. The City Clerk is directed to certify to the adoption of this resolution and to transmit a certified copy to Ms. Sheila R. Willard, Vice President Public Affairs, Comcast Cable Communications, Inc., 1500 Market Street, Philadelphia, PA 19102-2148. ATTEST: PASSED, APPROVED, AND ADOPTED this 7th day of April, 1999. Alexander, Biane, Curatalo, Dutton, Williams AYES: NOES: None ABSENT: None ABSTAINED: None William J. AI - Debra J. Adams, CMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a regular meeting of said City Council held on the 7th day of April, 1999. Executed this 8th day of April, 1999, at Rancho Cucamonga, California. Resolution No. 99-084 Page 4 COMCAST CABLEVISION Renewing a non-exclusive franchise to operate cable television CO 99-062, 0602-01 Resolution No. 99-084 Page 5 AN AGREEMENT BETWEEN THE CITY OF RANCHO CUCAMONGA AND COMCAST CABLEVISION RENEWING A NON-EXCLUSIVE FRANCHISE TO OPERATE A CABLE TELEVISION SYSTEM IN THE CITY OF PANCHO CUCAMONGA AND SETTING FORTH TERMS AND CONDITIONS RELATING TO THE RENEWAL OF THE FRANCHISE. Resolution No. 99-084 Page 6 TABLE OF CONTENTS RECITALS .......................... I I, 1 2. 1 3 i 4 1 5 1 6 1 7 1 8 1 9. 1 10. Parties to the Agreement ............ Representatives of the Partles and Service of Notices ..................... Definitions ................... Conflicts .................... Grant ...................... Right of Grantor to Issue and Renew Franchise Effective Date of Renewal ............ Duration .................... Franchise' Not Exclusive ............. Scope of the Franchise ............. Paqe 1 2 % 3 3 3 3 3 4 4 4 GENERA~ REQUIREMENTS .................. 2 1. Governing Requirements ............. 2 2. Franchise Fee .................. 2 3. Payment to Grantor ............... 2 4. Insurance Requirements ............. 2 5. Performance Bonds ................ 2 6. Periodic Adjustments .............. 5 5 5. 6 6 8 9 RIGHTS RESERVED TO THE GPJ%NTOR ............. 10 3.1. Reservation ................... 10 I0 3.2. Delegation of Powers .............. 3.3. Right to Inspect Construction ......... 10 3.4. Right to Require Removal of Property ...... !0 3.5. Right of Intervention .............. 10 'SYSTEM UPGRADE AND SPECIAL SERVICES 4.1. 4.2. 4 .3. 4.4. 4.5. 4.6. 4.7. 10 Upgrade ............ .'. ........ Notices Relating to Cable Televlslon System Upgrades .................... 10 Outlets for Public Buildings ........ 11 Emergency Alert Capability ......... 12 Parental Control Devices ............ 12 Technical Standards ............... 12 No Offset Against Franchise Fees ........ 13 SERVICES, PROGRAMMING, AND CONSUMER PROTECTION STANDARDS 5 1 Rates and Charges for Cable Services and Equipment .................... 5 2 Discounts for Senior Citizens .......... 5 3 Leased Channel Service 5.4 Nondiscrimination ............... 13 13 14 14 14 Resolution No. 99-084 Page 7 5 5~ 5 7~ 5 9. 5 10. 5 11. B;!iings to Subscribers ............. 14 Termination of Residential Service ....... 14 Annual Subscriber Notice ............ 14 Consumer Protection Standards .......... 14 Service Interruptions .............. 15 Entry on Private Property ............ 15 Privacy Rights of Subscribers .......... 15 SUPPORT OF LOCAL CABLE USAGE .............. 15 DESIGN AND CONSTRUCTION 71 72 73 74 75 76 77 78 79 7 10 7 11 712 7 13 7 14 7 15 ................ 15 System Construction and Extension ........ 15 Construction Components and Techniques ..... 16 Technical and Performance Standards ....... 16 Construction Codes ............... 17 Construction Default .............. 17 Vacation or Abandonment ............. 17 Abandonment in Place .............. 17 Removal of System Facilities .......... 18 Movement of Facilities ............. 18 Undergrounding of Cable ............. 18. Facility Agreements ............... 18 Repair of Streets and Public ways ........ 18 Erection of Poles Prohibited .......... 18 Reservation of Street Rights .......... 19 Miscellaneous Design and Construction Requirements .................. 19 PERFORMA, NCE AUDITS AND TECHNICAL DATA ......... 21 8.1. Performance Audits .............. 21 8.2. System Testing and Technical Data ........ 22 8.3. Emergency Repair Capability ........... 23 REVOCATION, TERMINATION, OR FORFEITURE ......... 23 9.1. Revocation ................... 23 9.2. Grounds for Revocation, Termination, or 23 Forfeiture ................... 9.3. Removal of Property ............... 24 10. RECORDS; REPORTS; RIGHT TO INSPECT AND AUDIT; EXPERTS 10 1 10 2 10 3 I0 4 10 5 i0 10 10 10 10 8 9 10. Retention of Experts 24 Grantee to Provide Records ........... 24 Records ..................... 24 Maintenance and Inspection of Records ...... 25 Reports of Financial and Operating Activity 25 Performance Tests and Compliance Reports .... 26 Additional Reports ............... 26 Communications with Regulatory Agencies ..... 26 Inspection of Facilities .......... 26 Right to Audi5 ................. 26 .............. 27 Resolution No. 99-084 Page 8 ENFORCEMENT PROCEDURES ................ ~. 28 ii.i. Notice and Hearing upon Grantee's Default .... 28 11.2. Delegation ................... 28 11.3. Stop Work Notice ................ 29 11.4. Authorized Fines, Penalties, and Other Sanctions .................... 29 12. CONTINU%TY OF CABLE TELEVISION SYSTEM SERVICES ..... 30 !2.1. Continuity of Service .............. 30 12.2. Operation and Management By Grantor ....... 30 13. MISCELLANEOUS PROVISIONS ................ 13.1. Assignment, Transfer, Sale, and Change of 13.2. 13 3. 13 4. 13 5. 13 6. 13 7. 13 8. 13 9. 13 13 13 13 31 Control ................... 31 Force Majeure .................. 32 Possessory Interest ............... 33 Indemnification ................. 33 Receivership and Foreclosure .......... 33 Conflict of Interest .............. 34 Resolution of Disputes ............. 34 Waiver by Grantor .............. 34 Severability .................. 35 10. Amendments ................... 35 ' 11. Binding Upon Successors ............. 35 12. Counterpart Execution ............. 35 13. Applicable Law ................. 35 14. DEFINITIONS ....................... 35 15. AUTHORITY AND EFFECTIVE DATE .............. 40 15.1. Authority .................... 40 40 15.2. Effective Date ................. EXHIBIT A TITLE 7 OF THE PJkNCHO CUCAMONGA MUNICIPAL CODE AS ADOPTED AND IN EFFECT ON THE EFFECTIVE DATE OF FRANCHISE RENEWAL ........... A-i EXHIBIT B OWNERSHIP ................... B-! EXHIBIT C DESCRIPTION OF THE FRANCHISE SERVICE AREA . C-1 EXHIBIT D GRA/~TEE'S TECHNOLOGY IMPLEMENTATION PLAN D-1 EXHIBIT E CONSUMER PROTECTION STANDARDS ...... ' . · · E-1 EXHIBIT F SUPPORT OF LOCAL CABLE USAGE ......... F-I Resolution No. 99-084 Page 9 FP3~NCHISE AGREEMENT THIS FRANCHISE AGREEMENT ("Agreement" is entered into ~h!s day of , 1999, at Rancho Cucamonga, California, by the City of Rancho Cucamonga, a municipal corporation of the State of California ("Grantor"), and Comcast Cablevision of Inland Valley, Inc. dba Comcast Cablevision, a Delaware corporation and a wholly-owned subsidiary of Comcast Cable Communications, Inc., a Delaware corporation ("Grantee"). RECITALS A. In accordance with Title 7 of the Rancho Cucamonga Municipal Code, California Government Code Section 53066, and the Cable Communications Policy Act of 1984, as amended (47 United States Code Sections 521 e__t seq.), Grantor is authorized to grant or renew a franchise for the construction, operation, and maintenance of a cable television system within the City of Rancho Cucamonga. B. Grantee currently operates and maintains a cable television system in the City of Rancho Cucamonga under the authority of franchise previously granted by the County of San Bernardino, and an "Interim Operating Agreement" that was approved by Resolution No. 93-208 as adopted by the City Council on November 3, 1993, and thereafter extended on a periodic basis. Gran~ee has requested a renewal of its cable television franchise within the currently existing franchise service area. C. In connection w.ith Grantee's request for franchise renewal, Grantee has offered to upgrade its cable television system by installing fiber optic lines and has offered to provide improved services to the Grantor and to Grantee's customers, including upgraded public, educational, and governmental facilities and services. D. Grantor and Grantee have negotiated the terms of the 'franchise renewal, which are set forth below, in accordance with applicable law, and Grantee has agreed to comply with the provisions of this Agreement and Title 7 of the Rancho Cucamonga Municipal Code ("Title 7"), as it now exists and as it may be amended in the future. A copy of Title 7 is attached as Exhibit A and incorporated by this reference. E. The Grantor's City Council has reviewed the present and future cable-related needs of the Grantor and its residents, the Grantee's record of service and its ability to carry out its obligations under this Agreement, and the Grantee's financial, legal, and technical qualifications to hold a cable %elevis~on franchise, and has determined that the public interest wcu!d be served by renewing Grantee's franchise subject ~o the Terms and conditions of this Aoreement and the provisions of Ti51e 7. Resolution No. 99-084 Page 10 NOW, THEREFORE, in accordance with the provislons ~f -'5!e 7 and thls Agreement, Grantor grants to the Grantee, and 3ran~ee accepts from the Grantor, a renewal of a cable television ~ranchlse. _. RENEWAL OF FRANCHISE. .... Parties to the Acreement. Agreement are: The parties to this (a) Grantor: The City of Rancho Cucamonga, a municipal corporation, having its principal office at 10500 Civic Cenuer Drive, Rancho Cucamonga, California 91729. (b) Grantee: Comcast Cablevision of Inland Valley, Inc., dba Comcast Cablevision, which is a Delaware corporation and a wholly-owned subsidiary of Comcast Cable Communications, !no., with ownership as set forth in the attached Exhibit B that is incorporated by this reference, and havlng a local office at 1260 DuPont Street, Ontario, California 91761. 1.2. Representatives of the Parties and Service of Notices. The representatives of the parties who are primarily responsible for the administration of this Agreement, and to whom notices, requests, demands, and other communications must be given, are as follows: (a) The principal representative of the Grantor is: City Manager Rancho Cucamonga City Hall 10500 Civic Center Drive Rancho Cucamonga, California 91729 (b) The principal representative of the Grantee is: Comcast Cablevision of Inland Valley, Inc. 1260 DuPont Street Ontario, California 91761 Attn: General Manager (c) Notices, requests, demands, and other communications to be given by either party must be in'writing and may be effected by personal delivery, by overnight courier, by first class mail, or by certified mail, return receipt requested. (d) If the name of the principal representative designaued to receive the notices, requests, demands, and other communications, or the address of that person, ls changed, wriu~en notice must be given at least five working days before 5he effective date of that change. Resolution No. 99°084 Page 11 ' .3. Definitions. Unless otherwise defined, or if the' use cr context clearly requires a different definition, certain words, terms, and phrases and their derivations, as used in this Agreement, have the meanings set forth below in Section 14. 1.4. Conflicts. In the event of any conflict or ~nconsistency between the provisions of this Agreement and the provisions cf Title 7, the provisions of this Agreement will control. 1.5. Grant. (a) The renewal authorized by this Agreement relates to cable television franchises previously granted by the County of San Bernardino to predecessors-in-interest of the Grantee. Said franchises were subsequently consolidated under the ownership of Group W Cable and later acquired by Comcast Cablevision Corporation of California in 1987. Certain limitations were placed upon the Grantee's operation of its cable television system in the City of Rancho Cucamonga under an "Interim Operating Agreement" that was approved by Resolution No. 93-208, adopted by the Grantor's City Council on November 3, 1993, and thereafter extended on a periodic basis, pending the negotiation andexecution of a new franchise agreement between the Grantor and the Grantee. (b) This renewal extends the franchise, authority, right, and privilege to construct, reconstruct, operate, and maintain a cable television system in the "franchise service area," which is more specifically described in the attached Exhibit C that is incorporated by this reference. 1.6. Right of Grantor to Issue and Renew Franchise. Grantee expressly acknowledges the right and authority of Grantor to issue and renew the franchise. Similarly, Grantee acknowledges its obligation to pay the annual franchise fee specified in Subsection 2.2(a), which is the maximum percentage amount authorized by the Cable Communications Policy Act of 1984 ("Cable Act") on the effective date of this Agreement. If Congress, the FCC, or a court of competent jurisdiction alters this franchise fee requirement, then the parties agree to comply with applicable law. 1.7. Effective Date of Renewal. This franchise renewal will commence on the effective date of the ordinance or resolution authorizing that renewal, or on the date specified in that ordinance or resolution as the effective date of renewal. On or prior tc its effective date, Grantee must file with the City Clerk a written acceptance of the ordinance or resolution renewing the franchise. That acceptance may be in the form of =rantee's signature on the face cf the ordinance or resolution. Cn cr prior to its effective date, Grantee must also file with -he C:.5}' Clerk any required performance bonds and insurance ~ci~c~es or ~nsurance certificates~ provided, however, that ~f Resolution No. 99-084 Page 12 zhe fiizng of these documents does not occur on or prior to the effective date of the ordinance or resolution, or within any authorized extension of that date, the Grantor may declare this franchise renewal null and void. 1.8. Duration. The ~erm of the franchise renewal is ten ~10) years from the effective date as specified in Section 1.7; provided, however, that this franchise will be extended for an additional period of five (5) years upon Grantee's completion of ~he upgrade of the cable system within the time periods specified-. in the attached Exhibit D. Renewal of the franchise, if any, will be in accordance with then applicable law. 1.9. Franchise Not Exclusive. The cable television franchise granted by this Agreement may not be construed to limit in any manner the right of Grantor, through its authorized officers and in accordance with applicable law, to grant to other individuals or entities, by franchisp, permit, license, or otherwise, any rights, privileges or authority similar to or different from the rights, privileges and authority herein set forth, in the same or other streets, public ways, public places, or other property that the Grantee is entitled to occupy; provided, however, that those additional grants will not operate to revoke, terminate, or materially and adversely affect any rights granted to Gransee by 5his Agreement. If the Grantee determines that the cumulative benefits and burdens of an additional franchise awarded to another cable operator, or of an agreement with a video provider, including an open video system operator, are not comparable to those existing under this Agreement, and the Grantee is thereby placed at a competitive disadvantage, then Grantee may request the Grantor to modify one or more provisions of this Agreement in order to eliminate that competitive disadvantage. The parties will meet and confer for the purpose of reviewing Grantee's request. Any proposed modifications will be subject to the apprQval of the Grantor's City Council, which approval will not be unreasonably withheld. 1.10. Scope of the Franchise. (a) Subject to Grantee's compliance with Grantor's permit procedures applicable to construction, encroachments, and pole attachments, Grantee is authorized and obligated to construct, reconstruct, operate, and maintain the cable television system within the public streets and rights-of-way. Grantee is obligated to undertake and to complete the upgrade of 5he cable television system in the manner and withln the time period specified in the attached Exhibit D that is incorporated by this reference. (b) The authority granted under this Agreement includes the privilege to use the Gransee's cable 5elevislon syssem in the franchise service area for the provlsion of both Resolution No. 99-084 Page 13 cas!e television serv!ce and for the provision of such other' services as may be authorized by applicable law. {c) Grantor reserves all rights it now has or subsequently acquires with respect to the future authorization and regulation of non-cable services, including, but not limited to, the right to impose reasonable terms and conditions in addition to or different from those set forth in this Agreement with respec~ to the provision of any non-cable services, and to charge a franchise fee or other form of consideration or compensation in excess of that specified herein; provided that such terms and conditions and such franchise fee or other form of consideration or compensation must not be in conflict with federal and state law applicable to non-cable services; and provided further that the Grantor and Grantee will negotiate in good faith as to those terms and conditions and that franchise fee or other form of consideration or compensation prior to their Implementation by the Grantor. {d) At least 30 days before commencing to offer or distribute any non-cable services, Grantee must provide written notice to the Grantor of its intent to offer or distribute such services and a description of those services. (e) After the effective date of this Agreement, if Grantor proposes to award an additional franchise within the Grantee's franchise service area, a noticed public hearing must first be held in accordance with the provisions of Government Code Section 53066.3. (f) Grantor and Grantee expressly reserve the right to seek a judicial determination as to whether any particular service offered by Grantee on its system constitutes cable service for purposes of this franchise. 2. GENERAL REOUIREMENTS. 2.1. Governinc Recuirements. Grantee must comply with all provisions of this Agreement, the provisions of Title 7, and all other applicable laws, ordinances, and regulations. 2.2. Franchise Fee. (a) As compensation for the franchise granted by Grantor, and in consideration for authorization to use the streets and public ways of Grantor for the construction, reconstruction, operation, and maintenance of Grantee's cable television system, the Grantee will pay to the Grantor an annual franchise fee of five percent (5%) of the Annual Gross Receipts, as defined in Section 14 of this Agreement, received by Grantee from the operation of the cable television system in the Grantee's franchise service area. Resolution No. 99-084 Page 14 ib) The franchise fee specified above in para- graph (a) must be computed and paid by Grantee to Grantor's Finance Departmen~ for each calendar quarter, not later than 30 days after the end of each calendar quarter. The payment for each calendar quarter must be accompanied by a report that contains 5he following information relating to that calendar quarter Grantee The total gross receipts collected by 2. The total number of subscribers to each tier of service that is offered in the franchise service area at the end of the applicable calendar quarter. (c) If any franchise fee payment, or recomputed amount, is not made on or before the dates specified in Subsections 2.2 or 2.3, Grantee must pay to Grantor as additional compensation an interest charge, computed from the applicable due date, at an annual rate of 10 percent. (d) In addition to any late payment made in accordance with paragraph (c) above, if a payment is overdue by 45 days or more, Grantor may treat that delay as a material breach of this Agreement. (e) Any itemization or pass-through of franchise fees by Grantee on subscribers' bills must be in compliance with federal and state law. Any surcharge billed to Grantee's subscribers that is not required by the Grantor or by any other governmental agency to be imposed upon subscribers must be identified as a surcharge levied solely by the Grantee. Any such surcharge will be subject to the Grantor's franchise fee unless prohibited by federal law. 2.3. Payment to Grantor. (a) No acceptance of any payment by Grantor may be construed as an accord that the amount is in fact the correct amount, nor may acceptance of payment be construed as a release of any claim the Grantor may have against Grantee for any additional sums payable under the provisions of this Agreement. (b) All amounts paid are subject to independent audit and recomputation by Grantor, as provided for in Subsection 10.9. 2.4. Insurance Requirements. (a) Upon the effective date of this Agreement, Grantee, at its sole cost and expense, must obtain, and thereafter maintain for the full term of this Agreement, all of 5he following insurance coverages: Resolution No. 99-084 Page 15 1. Types of Insurance and Minimum Llmits. The coverages required below may be satlsfled by any co~blnatzon of prlmar)[ liability and excess !iability policies. A. Workers' Compensation and Emptoyer's Liabiliny Insurance in conformance with the laws of the State of California. B. Grantee's vehicles, including owned, leased, or hired vehicles that are used by Grantee's employees in: the course and scope of employment, must each be covered with Automobile Liability Insurance in the minimum amount of $2,000,000 con%bined single limit per accident for bodily injury and property damage. C. Grantee must obtain and maintain Comprehensive or Commercial General Liability Insurance coverage in the aggregate annual amount of $2,000,000 confined single limit, including bodily injury, personal injury, and broad form property damage. This insurance coverage must include, without limitation, contractual liability coverage adequate to meet the Grantee's indemnification obligations under this Agreement. 2. All required Automobile Liability Insurance and Comprehensive or Commercial General Liability Insurance policies must contain the following endorsement: "The City of Rancho Cucamonga is added as an additional insured as respects the operations of the named insured under the cable television franchise granted by the City." 3. The insurance required of Grantee' under this franchise is primary, and no insurance held by Grantor may be called upon to contribute to a loss under this coverage. 4. All insurance policies must provide that, in the ~vent of material change, reduction, cancellation, or non- renewal by the insurance carrier for any reason, not less than 30 days' written notice will be given to Grantor by registered mail of such intent to cancel, materially change, reduce, or not renew the coverage. An authorized agent of the insurance carrier must provide to the Grantor, on such schedule as is requested by the Grantor, a certification that all insurance premiums have been paid and all coverages are in force. If for any reason Grantee fails to obtain or keep any of the insurance in force, Grantor may (but is not required to) obtain that insurance. In that event, Grantee must promptly rei~urse Grantor its premium costs, plus one and one-half percent (1-1/2%) monthly interest thereon until paid. 5. All insurance must be obtalned from companies that are licensed to transact business in California - 7 Resolution No. 99-084 Page 16 and that have a rating of A-VI! or better in Best's Insurance 3uzde. 6. The deductibles or self-insured retentions are sub3ect tc the Grantor's prior approval, which approval will not be unreasonably withheld. (b) Before the effective date of this Agreement, Grantee must provide to Grantor written insurance blnders, statements of property coverage, certificates of insurance, or certified copies of policies evidencing the required coverage. (c) Grantor reserves the right to require Grantee to increase the amount or limits of insurance coverage specified above no more often than every three years during the term of the franchise. Any such increase will be determined in accordance with the procedures set forth in Subsection 2.6 of this Agreement. 2.5. Performance Bonds. (a) Performance Bond. During the term of this Agreement, Grantee may be required to provide to Grantor a performance bond if Grantor determines that any construction, reconstruction, or upgrade of the cable television system is of sufficient magnitude to warrant a performance bond. The performance bond, which may be a corporate surety bond, must be in a principal sum as specified by Grantor and in a form approved by Grantor's City Attorney; provided, however, that the principal sum of the performance bond may not exceed $100,000. The performance bond may be reduced during the course of Grantee's construction, reconstruction, or upgrade of the cable television system, provided that Grantee is not then in material default under any provision of this Agreement. (b) Performance Bond for Other ObliGations. Prior to the effective date of this Agreement, Grantee must provide to Grantor a performance bond to guarantee the Grantee's performance of its obligations under this Agreement, excluding those obligations relating to construction referenced above in paragraph (a) . The performance bond will be in the sum of not less than $50,000 and will be subject to and in compliance with the following requirements: I. The performance bond will be available to Grantor to secure and to satisfy any and all claims, penalties, fines, liens, fees, payments, costs, damages, or taxes due Grantor from Grantee that arise by reason of the operation or maintenance of the cable television system. 2. After notice and hearing requirements specified In Section 11 of this Agreement have been satisfied, if 5he Grantee fails or refuses tc pay to the Grantor any amounts due under' the terms and provisions of this Agreement, the Grantor Resolution No. 99-084 Page 17 may thereafter claim against the performance bond the unpaid amount, plus accrued interest and penalties. 3. Within 30 days after Grantee's receipt of written no~ice from the Grantor that any amount has been claimed and received by the Grantor under the performance bond in satisfaction of any of Grantee's obligations specified above in subsection I1), the Grantee must restore the performance bond to the amount required by this Agreement. 4. The rights reserved to the Grantor with respec~ to this performance bond are in addition to all other rights of the Grantor under this Agreement, including Grantor's rights under the performance bond for construction referenced above in paragraph {a). (c) Adjustments. Grantor reserves the right to require Grantee to increase the principal amount of the performance bond specified above in paragraph (b), and the insurance coverage specified above in Section 2.4, no more often than every three years during the term of the franchise. Any such increase will be determined in accordance with the procedures set forth in Section 2.6. 2.6. Periodic Adjustments. If the amount of the performance bond or insurance coverage required of Grantee under this Agreement is proposed to be increased at specified intervals during the term of the franchise, any such increase will be determined in accordance with the following procedures: The increase in any amount subject to periodic adjustment under this Agreement will be determined by Grantor's Director of Finance as of the applicable anniversary date of this Agreement, based upon the Consumer Price Index, All Urban Consumers, for the Los Angeles-Anaheim-Riverside Area ("CPI"), as published by the United States Department of Labor, Bureau of Labor Statistics, or its successor. The Director of Finance will compute the percentage difference between (x) the CPI as it existed on the later of (i) the effective date of this Agreement and (ii) the effective date of the most recent periodic adjustment, and {y) the CPI as it then exists on the applicable anniversary date. The Director of Finance will then increase by such percentage the amount subject to periodic adjustment. The adjusted amount will be rounded off to the nearest dollar. If the Bureau of Labor Statistics revises that Index or discontinues the preparation of that index, the Director of Finance must use the revised index or a comparable system as approved by the Grantor's City Council for determining fluctuations in the cost of living; provided, however, that Grantee will be given reasonable notice and an opportunity 5o be heard prior Resolution No. 99-084 Page 18 to the ~' Council's asproyal of a revised index or a comparable system. 3. RIGHTS RESERVED TO THE GRANTOR. 3.1. Reservation. Grantor reserves every right it may have relation to its power of eminent domain over Grantee's franchise and property. 3.2. Delecation of Powers. Any right or power in, or duty , retained by or imposed upon Grantor, or any officer, employee, department, commission, or board of Grantor, may be delegated by Grantor to any officer, employee, department or board of Grantor, or to such other person or entity as Grantor may designate to act on its behalf. 3.3. Richt to Inspect Construction. The Grantor has the right to inspect all construction, installation, or other work performed by Grantee in connection with the franchise, and to make such tests as may be necessary to ensure compliance with the terms of this Agreement, so long as that inspection and testing does not unreasonably interfere with Grantee's operations. 3.4. Richt to Require Removal of Promertv. Consistent with applicable law, at the expiration of the term for which the franchise renewal is granted, or upon its lawful revocation, expiration, or termination, the Grantor has the right to require the GranSee to remove, within a reasonable period of time that will not be less than 180 days, and at Grantee's expense, all portions of its system and any other property from all streets and public rights-of-way within the franchise service area. 3.5. Richt of Intervention. Grantor has the right to intervene in any suit, proceeding, or other judicial or administrative proceeding in which the Grantor has any material interest, and to which the Grantee is made a party. 4. SYSTEM UPGRADE AND SPECIAL SERVICES. 4.1. Upqrade. The upgrade of the cable television system to be undertaken and completed by the Grantee is more fully described in Exhibit D. 4.2. Notices Relatinc to Cable Television System UpGrades. (a) Notices to Local Newspaper. If requested by Grantor, Grantee must publish two notices in a newspaper of general circulation before commencing ~he cable television system upgrade. The first notice must be published not less than 60 days prior to construction, and the second notice must be published not less than 30 days prior to construction. Each notice must provide a general summary of the proposed upgrade, and a telephone number that the public may call for additional ~nforma~on. 10 - Resolution No. 99-084 Page 19 Other Notices. 1. Gransee will provide to Grantor at least 30 days prlor writ:en notice of any major upgrade or rebuild of the cable television system. Upon Grantor's request, Grantee will provide information concerning the proposed locations and ~ypes of equipment or facilities to be installed, such as amplifiers, pedestals, and power supplies. 2. At least 48 hours prior to the scheduled construction date, Grantee must provide additional notice to residents within the proposed construction area by the use of door hangers that set forth a general description of the construction project, the anticipated dates of construction, and a telephone number for the Grantee that a resident may call with any questions or concerns. 4.3. Outlets for Public Buiidinqs. (a) Upon Grantor's written request, Grantee will install, maintain, and repair, without charge, one cable drop, one cable modem for high-speed Internet access, and basic cable service at each of the following facilities that is located within the franchise service area: Lion's Center West Lion's Center East (b) When cable modem service is made commercially available in the franchise service area, Grantee will provide one - cable drop and one cable modem for high-speed access to the Internet in every public school in the franchise service area. (c) Grantee will provide, without charge, basic cable service to one outlet at public facilities, including the Grantor's facilities and public schools identified above in paragraphs (a) and (b). (d) Upon Grantor's written request, Grantee will also install, at Grantee's cost for labor and materials, additional drops and outlets at specified public facilities and public school buildings. (e) All new drops and outlets requested by Grantor under this Section 4.3 must be installed as Grantee's cable system upgrade passes each public facility and public school building, which upgrade must occur within the period of time set forth in Exhibi~ D. (f) Grantor will inform Grantee of the construction of new public facilities so that exterlor and interior connections can be installed by Grantee at the time of construction in order to minimize costs. These connections will be made by Grantee without cost to Grantor. Resolution No. 99-084 Page 20 4,~. Emerqencv Alert Capability. (a) In upgrading the cable television system, Grantee must comply with all FCC rules and regulations relating to the nailthai Emergency Alert System ("EAS") . In this regard, Grantee must provide the system with emergency override capability so as tc enable Grantor's public safety personnel and designated public officials to cablecast emergency messages by interrupting and overriding the audio and video signals of all cable channels using remote coded access activation devices at one site to be mutually agreed upon by the parties. Equipment providing for this emergency override capability will be installed by Grantee at this slte, at no expense to Grantor. (b) In the event of any conflict between the federally-mandated EAS and the City's emergency override system, the federally-mandated EAS will have priority. 4.5. Parental Control Devices. (a) Grantee must provide subscribers, upon request and, except as otherwise provided by law, without charge, with a "trap," "lockbox," digital code, or similar parental control device that enables a subscriber to block the reception of video and audio signals from selected channels on the cable television system, including any premium or pay-per-view channel that is scrambled. (b) No continuing charge for the use of any such parental control device may be imposed by Grantee if that device zs incorporated into equipment, such as a decoder, for which a subscriber is already paying a charge. (c) Grantee must provide to subscribers written instructions on the methods by which selected channels on the cable television system may be restricted or blocked. 4.6. Technical Standards. (a) The FCC Rules and Regulations, including Part 76, Subpart K (Technical Standards), and any amendments or supplements thereto, will apply to the Grantee's operations to the extent permitted by applicable law. (b) The headend of the cable system, satel'lite earth s~atlcns, and any hubs must be equipped with an emergency power system that is capable of providing emergency power for a minimum of three hours. (c) The cable system must be designed, installed, and operated so as to comply with the following general requirements: 1. Twenty-four-hour daily operation. Resolution No. 99-084 Page 21 2. Avoid causing interference with the reception of off-the-a~r signals by non-subscribers. 3. Operate in a wide range of outdoor 5emperauures that typically occur within the franchise service area. 4. Assure that all subscribers will receive standard color and monochrome signals on the FCC-designated Class 1 channels without noticeable picture degradation or visible evidence of color distortion, or other forms of interference that may be attributable tc deficiencies in the cable system. 4.7. No Offset Aqainst Franchise Fees. In accepting this franchise, Grantee acknowledges that the commitments specified in this Section 4 are voluntarily assumed, and their costs will not be offset against any franchise fees payable by Grantee to Grantor during the term of the franchise. 5. SERVICES, PROGRAMMING, AND CONSUMER PROTECTION STANDARDS. 5.1. Rates and Charces for Cable Services and Ecuiument. (a] The Grantor may regulate Grantee's rates and charges for cable television services and equipment in the manner and to the extent authorized by federal law. (b) Grantee must establish and bill its rates and charges for cable television services and equipment in a manner consistent with all applicable laws and regulations. (c) Grantee must at all times have on file with Grantor its current schedule of all rates and charges that will be billed to subscribers in the franchise service area. (d) All increases in Grantee's schedule of rates and char~es for cable television services and equipment must be made in compliance with all applicable federal and state laws and regulations. Not less than 10 days prior to notifying its subscribers, Grantee must notify the Grantor's City Manager of any proposed increase in its schedule of rates and charges or any changes in its programming tiers. Grantee must provide written notice to its subscribers at least 30 days prior to any change in its schedule of rates and charges or any changes in its programming tiers, as long as such change is within the control of uhe Grantee. (e} Within 45 days after the effective date of this Agreement, Grantee must submit to the Grantor's City Manager a complete tist of each cable television programming package offered by Grantee, including the expanded basic tier and any new or reconfigured tiers. Grantee must compare that list with the ~csu currenu preceding list, and ~dentify all programming that Resolution No. 99-084 Page 22 has been added or deleted, previous and existing rates and charges for cable television services and equipment, and all new services or items of equipment that are being offered and the applicable rates and charges. 5.2. Discounts for Senior Citizens. Grantee may offer to senior citizens a percentage discount on subscriptions to the basic service tier. 5.3. Leased Channel Service. If Grantee offers leased channel service, that service must be offered at nondiscriminatory rates, on reasonable terms and conditions, and in accordance with applicable law. 5.4. Nondiscrimination. Grantee may not discriminate between or among subscribers within one type or class in the availability of services, at either standard or differential rates set forth in published rate schedules, except as otherwise authorized by law or by this Agreement. No charges may be made for servlces except as set forth in published schedules that are available fbr inspection at Grantee's office, quoted by Grantee on the telephone, or displayed or communicated to existing or prospective subscribers. This paragraph does not apply to offers or promotions of limited duration. 5.5. Billincs to Subscribers. Grantee's billings to its subscribers within the franchise service area will be in compliance with the requirements set forth in Exhibit E ("Consumer Protection Standards"). 5.6. Termination of Residential Service. (a) Grantee may terminate service to a residential subscriber only in compliance with the applicable provisions of California Government Code Section 53088.2. In addition to the reqdired written notice, Grantee must make a good faith attempt to notify the affected residential subscriber by telephone of its intent to terminate service. If Grantee improperly terminates service to a residential subscriber, free reconnection must be provided to that subscriber. (b) Grantee must issue securlty or subscriber deposit refund checks promptly, but no later than 45 days following the termination of service, less any deductions permitted by law. 5.7. Annual Subscriber Notice. Grantee will provide to all new subscribers and annually to existing subscribers, a notice to customers that is substantially similar to the notice referenced ~n paragraph (1) of Exhibit E. 5.8. Consumer Protection Standards. Grantee must comply with all applicable FCC and state statutory standards and Resolution No. 99-084 Page 23 regu!~ions relaning to consumer protection, including those referenced in Exhibit E. 5.9. Service Interruptions. Grantee must provide to its subscribers a mlnimum of 24 hours advance notice when cable service to six or more subscribers will be subject to a planned interruption of more than two hours. This notice may be given by means of character-generated messages on both the governmental access channel and, with the concurrence of the operator, on the public access channel. Notice must also be given, by telephone or by facsimile, to all operators of public, educational, and governmental access channels, and to the Grantor's City Manager. Whenever possible, planned interruptions should occur during periods of minimum use of the cable system, preferably between midnight and 6:00 a.m. 5.10. Entry on Private Propertv. Whenever possible, Grantee will provlde verbal and written notice to affected property owners before entering upon their property. The notice must include Grantee's telephone number that property owners may call with regard to any matters related to the proposed entry. 5.11. Privacy Richts of Subscribers. Grantee must at all times protect the privacy of all subscribers in accordance with the provisions of the Cable Act, including 47 U.S.C. § 551. SUPPORT OF LOCAL CABLE USAGE. The obligations of the Grantee that relate to the support of local cable usage, including the provision of adequate public, educational, and governmental access channel capacity, facilities, and financial support, are set forth in the attached Exhibit F. 7. DESIGN AND CONSTRUCTION. 7.1. System Construction and Extension. (a) The cable television system must be upgraded in accordance with Exhibit D and all other applicable provisions of this Agreement. (b) Throughout the franchise service area, Grantee is required to extend its cable television system in accordance with the following provisions: 1. Grantee must make its cable television system available to residential dwelling units in all currently unserved or developing areas that have at least 30 dwelling unlts per cable mile in areas passed by overhead cable, and at least 50 dwelling units per cable mile in areas passed by underground cable. Sub3ect to the foregoing density standards, Grantee must extend the cable television system simultaneously with the installaulon of utility lines. Where residential dwelling unlts Resolution No. 99-084 Page 24 are located zn unserved or developing areas that do not meet %hese standards for mandatory extension of serv!ce, Grantee must provide, upon the written request of a prospective subscriber desiring service, an estimate of the costs of extending service. Gran[ee may require an advance payment of those costs or an assurance of payment satisfactory to Grantee. The amount paid by the prospective subscriber is nonrefundable. If the unserved or developing area later achieves the density required for mandatory extensions of service, the amounts paid will be deemed to be consideration for early extension. 2. Grantee must extend and make its cable television system available to any resident requesting connection, at the standard connection charge, if that connection requires no more than a standard 125-foot aerlal drop line from the main feeder line. If a connection requires more than a standard 125-foot aerial drop line, or an underground service connection, a resident must be given the option of paying the incrementa! cost for that installation. 3. Grantee may extend and make cable television services available to isolated residential dwelling units, and to commercial and industrial zones of the franchise service area, based upon demonstrated need of the prospective subscriber and the economic feasibility of that extension. 4. If additional territory is annexed to the City after the effective date of this Agreement, and an incumbent cable operator is then serving that annexed territory, then the Grantee is not required to overbuild in order to provide cable service to dwelling units in that territory. 5. Service to prospective subscribers residing in multiple dwelling units need only be provided if, after evaluating the terms and conditions for access that may be imposed by an owner or manager of such multiple dwelling units, the .Grantee determines that those terms and conditions are reasonably acceptable. 7.2. Construction Components and Technicues. Construction components and techniques must comply with the terms of this Agreement and all applicable statutes, ordinances, regulations, and pole attachment agreements. 7.3. Technical and Performance Standards. Grantee must construct, reconstruct, install, operate, and maintain its system in a manner consistent with all applicable federal, state, and local laws and ordinances, construction standards, construction specifications, FCC technical standards, and any additional standards set forth in this Agreement. Without limiting the foregoing, Grantee's system must comply with all FCC regulations that apply to compatibility as between cable service and consumer equipment for receiving and recording cable programming. Resolution No. 99-084 Page 25 7.4. Construction Codes. The Grantee must strictly adhere to all building and zoning codes now or hereafter in force and must obtain all necessary permits, which permits will not be unreasDnably denied. The Gran[ee wlll make every reasonable effor5 to arrange its lines, cables, and other appurtenances, on both public and private property, in such a manner as to cause no unreasonable interference with the use of that property by any person. In the event of such interference, the Grantor may require the removal or relocation of the Grantee's lines, cables, and appurtenances from the property in question. Grantee must give a~ least 48 hours advance notice to all property owners, and to the Grantor, prior to installing any above-ground or underground structures upon easements located on private property. Grantor will not modify its construction requirements subsequent to the completion of construction so as to require reconstruction or retrofit unless the public health and safety so requires. 7.5. Construction Default. Upon the failure, refusal or neglect of Grantee to undertake or complete any construction, reconstruction, repair, relocation or other necessary work as required by this Agreement, thereby creating an adverse impact upon the public health, welfare or safety, Grantor may (but is not required to) cause that work to be completed, in whole cr in part, and upon so doing will submit to Grantee an itemized statement of costs. Grantee will be given reasonable advance notice of Grantor's intent to exercise this power, and 15 days ~o cure the default. Grantee must, within 30 days cf billing, pay to Grantor the actual costs incurred. 7.6. vacation or Abandonment. If any street, alley, public highway, or portion thereof used by the Grantee is vacated by the Grantor, or its use is discontinued by the Grantee, then upon reasonable notice the Grantee may be required to remove its facilities, unless otherwise specifically authorized, or unless easements for cable television facilities have previously been reserved. Following that removal, Grantee must restore, repair, or reconstruct the area where that removal has occurred to the condition that existed prior to removal. Upon any failure, neglect, or refusal of the Grantee, after 30 days' notice by the Grantor, to do such work, Grantor may cause it to be done, and within 30 days of billing, Grantee must pay to Grantor the actual costs incurred. 7.7. Abandonment in Place. Grantor may, upon written application by Grantee, approve the abandonment in place by Grantee of any property, under such terms and conditions as Grantor may approve. Upon Grantor-approved abandonment in place of any property, Grantee must cause to be executed, acknowledged, and delivered to Grantor such instruments as Grantor may prescribe and approve in order to transfer and convey ownership of that property to Grantor. 17 Resolution No. 99-084 Page 26 7.8. Removal of System Facilities. If Grantee's plant is intentionally deactivated for a continuous period of 30 days, ~except for reasons beyond Grantee's control) and without prior written notice ~o and approval by Grantor, then Grantee must, at Grantcr's option and demand, and at the sole expense of Grantee, promptly remove all of Grantee's property from any streets or other public rights-of-way. Grantee must promptly restore the streets or other public areas from which its property, including aerial trunk and feeder lines, has been removed to the condition existing prior to Grantee's use thereof. 7.9. Movement of Facilities. If Grantor determines it is necessary to move or to relocate any of the Grantee's property because of a conflict with a public project, Grantee, upon reasonable notice, must move, at the expense of Grantee, its property in order to facilitate that public project. No such movement or relocation may be deemed a taking of Grantee's property. If the public pro;ect involves Grantor's exercise of its statutory authority to construct and to operate its own cable system, the reasonable expenses incurred by Grantee in moving or relocating .its property will be reimbursed by the Grantor. 7.10. Undercroundinc of Cable. Cables must be installed underground at Grantee's cost where all existing utilities are already underground or all new utilities are being installed underground in the area. Previously installed aerial cable will be installed underground at Grantee's sole cost in concert with all utilities whenever all of those utilities convert from aerial to underground construction. 7.11. Facilitv AGreements. This Agreement does not relieve Grantee of any obligations to obtain pole or conduit space from any department of Grantor, from any utility company, or from others maintaining utilities in Grantor's streets. 7.12. Repair of Streets and Public Ways. All streets and public ways, and improvements located within those streets and publ'ic ways, that are disturbed or damaged by the Grantee or its contractors during the construction, reconstruction, operation, or maintenance of the System, must be restored at Grantee's expense, and within the reasonable time frame and limits specified by Grantor. 7.13. Erection of Poles Prohibited. Grantee may not erect any pole on or along any street or public way where there is an existing aerial utility system. If additional poles in an existing aerial route are required, Grantee must negotiate with the appropriate public utility for their installation. Any such installation requires the advance written approval of the Grantor. Subject to applicable federal and state law, the Grantee must negotiate the lease of pole space and facilities from the existing pole owners for all aerial constructlon, under mutually acceptable terms and conditions. No pole line may be extended solely for the purpose of accommodating Grantee's Resolution No. 99-084 Page 27 faci!lties. Line extensions beyond any existing pole line must be underground. 7.14. Reservation of Street Richts. Nothing in this Agreement precludes the Grantor from constructing, repairing, or altering any public work or improvement. That work will be done, insofar as practicable, in such manner as not to unnecessarily obstruct, injure or prevent the use and operation of any property of Grantee. However, if any property of Grantee interferes with the construction, maintenance, or repair of any public improvement, that property must be removed or replaced in such manner as may be reasonably directed by Grantor so as not to interfere with the public work or improvement, and that removal or replacement will be at the expense of the Grantee. 7.15. Miscellaneous Desiqn and Construction ReGuirements. (a) New DeveloDment-Undercround Utility Areas. Where new construction or property development occurs, and utilities are to be placed underground, Grantor will use its best efforts to require the developer or property owner to give reasonable notice to Grantee of that new construction or development. Grantee may be involved in all design aspects of the new construction or development that relate to the infrastructure required for cable service, including the provision of specifications and engineering assistance prior to construction. The costs of easements, trenching, and construction of the conduits required to bring cable service to the new construction or development will be borne by the Grantee, the developer, or the property owner, as may be agreed upon between them. Grantee will be notified of any date on which the installation of conduit, pedestals, vaults, or laterals will be available for Grantee's inspection. Grantee will bear all costs of installing cable, amplifiers, and other equipment required to construct and operate the cable system. (b) Antennas and Towers. Antenna supporting str~ctures, including towers, that are owned by or operated for Grantee must comply with all applicable electrical codes and FCC specifications, and must be erected, illuminated, painted, and maintained in accordance with all applicable rules and regulations of the Federal Aviation Administration, as well as local ordinances and regulations that require the Grantor's approval of the siting of towers or other support structures within the City. (c) Tree Trimminq. Grantee is authorized to engage a 11censed tree service contractor to trim trees on public property, at its own expense, as may be necessary to protect its wires, facilities, and cable equipment, subject to the direction and supervision of the Grantor. Trimming trees on prlvate property requires the written consent of the property owner or occupant, and such owner or occupant must be advised by Grantee of the right to have the tree trimming undertaken by a licensed Resolution No. 99-084 Page 28 tree service contractor. On a project-by-pro;ect basis, Grantee w;ll provide Grantor with a list of licensed tree service contractors that the Grantee proposes to use for tree trimming on botk public and private property. Each licensed tree service contractor proposed to be engaged by Grantee must be in possession of a valid City business license. I'd) Major Roadways. Grantee must install in conduit all cable that passes under any ma~or roadway. (e) Mitiqation of Adverse Visual Impacts. Grantee must take all reasonable measures, at its expense, to mitigate 5he adverse visual impacts of all above-ground equipment in accordance with the same standards and regulations that are imposed by the Grantor upon other franchised cable operators and upon public utilities. These measures may include, without limitation, (i) the installation of landscaping and barriers to conceal the equipment from public view; (ii) the maintenance of the equipment in good condition, including compliance with Grantor's ordinances requiring graffiti removal; and (iii) the placement of overhead drops as close as possible to other utility drops, consistent with all applicable electrical codes. Ongoing maintenance of any landscaping required to mitigate visual impacts is the responsibility of the property owner or the Grantee under Grantee's easement agreements. (f) Use of Chalk-Based Paints. Grantee must use only chalk-based paints to mark public rights-of-way in connection with the construction or maintenance of the cable television system. (g) Vehicle Access to Private Property. In nc event may an owner's vehicle access to private property be precluded for more than three hours during any construction, operation, or maintenance of the Grantee's cable system. If such preclusion is reasonably anticipated, Grantee must give 24-hours prior written notice to the owner. (h) Location of Utilities. Grantee must verify the location of all existing utilities to ensure that they are not damaged during construction or maintenance of the cable system. Grantee must be a member of Underground Service Alert and must contact that entity 48 hours in advance of any underground construction in order to ensure that utilities are not damaged. Grantee is solely responsible for the replacement or repair of any utilities that are damaged during construction or maintenance activities. Resolution No. 99-084 Page 29 PERFORMANCE AUDITS AND TECHNICAL DATA, 8.1. Performance Audits. (a) At its option, Grantor may require that performance audits of the cable television system be conducted annually by an independent technical consultant selected and employed by Grantor, and at Grantor's expense, to verify that the system complies with all technical standards and other specifications of this Agreement. Grantee must be provided an opportunity to be present during any performance audit, and the Grantor must deliver a copy of the test results to Grantee. If the test results demonstrate that Grantee has materially failed to comply with required technical standards, the cost of the performance audit will be borne by Grantee. (b) Upon completion of a performance audit, the Grantor and Grantee will meet to review the performance of the cable television system. This performance review may include consideration of the following: 1. The test results relating to Grantee's compliance with technical standards and specifications. 2. The reports required by this Agreement that relate to subscriber complaints received by the Grantee concerning technical problems or service-related issues. 3. The adequacy and quality of services provided by Grantee. 4. The results of any opinion surveys that may be conducted by Grantor or Grantee. 5. Reports submitted by Grantee or any other person that address Grantee's compliance with the terms and conditions of this Agreement granting the franchise. 6. Changes in cable television system technology and services, an evaluation of the degree to which the cable television system and related services conform to established, operating state-of-the-art technology in comparable communities, and the economic and technical feasibility of providing interactive, addressable, and security monitoring services. 7. Changes in state and federal laws and regulations that affect the operation .of the cable television system. (c> Within 30 days after the conclusion of a system performance review meeting, Grantor will issue findings with respec5 to the adequacy of system performance and the quality of ser¥;ce as required under this Agreement. If lnadequac;es are - 21 - Resolution No. 99-084 Page 30 zdentlfied, Grantor. may direct Grantee to correct the ~nadequacles within such period of time that Grantor determines to be reasonable. (d) Participation by the Grantor and the Grantee in this process does not waive any rights they may have under applicable federal or state law. (el Upon Grantor's request, Grantee will meet with Grantor's representatives to discuss the extent to which the technology and services of the cable television system are conslstent with established, operating state-of-the-art technology in cable television systems serving a majority of comparable communities. In addition, if requested by Grantor, Grantee will provide a written summary of the foregoing state-of- the-art cable services or technology that Grantee has incorporated into its system and its plans for implementing new technology in the franchise service area. If new technology is being used by other cable operators in comparable communities in the United States, and Grantee does not intend to make that new technology available in the franchise service area within the following three years, then Grantee must fully justify this posltion. Topics for discussion at these meetings may also include the future use of interactive services, the sharing of local production facilities with other jurisdictions, and the provision of additional capacity for public, educational, or governmental access channels. 8.2. System Testinc and Technical Data. (a) During the upgrade of the system and thereafter, Grantee must conduct periodic performance testing of its cable television system, including its signal quality, in adcordance with FCC rules and regulations. Upon Grantor's request, those test results will be provided to Grantor by Grantee. (b) During the upgrade of the cable television syst%m, Grantee will incorporate test equipment wherever feasible in order to continuously monitor the system for outages and signal quality. (c) Upon Grantor's request, Grantee will provide "as- built" system drawings and technical documentation in a printed or, if readily available, an electronic data format. Grantor may not disclose this information to third parties without the Grantee's prior written approval. (d) Grantee must maintain at its local office a file of all documents that are required by the FCC or other governmental agencies to be made available for public inspection during normal business hours and upon reasonable advance notice. Grantee may charge a reasonable fee for any copies cf documents that may be requested. Resolution No. 99-084 Page 31 8.3. Emerqencv Repair Capabilitv. It is Grantee's responsibillty to ensure that its personnel are qualified to make repairs, that they are available at all reasonable times, and that they are supplied with keys, equipment location instructions, and technical information necessary to begin repairs upon notification of the need to maintain or restore service to the system. REVOCATION, TERMINATION, OR FORFEITURE. 9.1. Revocation. Consistent with applicable law, and in addition to all rlghts set out elsewhere in this Agreement, Grantor reserves the right to revoke, terminate, or declare a forfeiture of the franchise, subject to the procedural guidelines set forth in Section 11 of this Agreement, if the Grantee, whether willfully or negligently, violates any material provision of this Agreement and thereafter fails to correct or remedy that violation in accordance with the terms of this Agreement. 9.2. Grounds for Revocation, Termination, or Forfeiture. Where the Grantee's violation is determined to involve any of the following, each of which ls deemed to constitute a material provision of this Agreement, the Grantor may revoke, terminate, or declare a forfeiture of this franchise and all rights and privileges associated with it: (a) Grantee's failure to make any payment of franchise fees within 45 days after that payment is due, as provided for in Subsections 2.2(b) and (c), unless Grantee is good faith contesting that payment in a court or governmental agency of competent jurisdiction. (b) Grantee's failure to provide or to maintain the insurance coverage in the amounts specified in Subsection 2.4. (c) Grantee's failure to provide or to maintain the performance bonds specified in Subsection 2.5. (d) Grantee's failure to honor its indemnification obligations as specified in Subsection 13.4. (e) Grantee's failure to receive and maintain all required approvals from the Federal Communications Commission in connection with its operation of the cable television system. (f) Grantee's material violation of any final order or ruling of any regulatory body having jurisdiction over the Grantee relative to the cable television services authorized by the franchise, unless that order or ruling is being contested by the Grantee before the regulatory body or in a court of competent ~urisdiction. (g) Grantee's willful attempt to evade compliance with any material provisions of this Agreement or Title 7, Resolution No. 99-084 Page 32 Grantee's repeated willful attempts to evade compliance with any nonmaterial provisions of this Agreement or Title 7, or Grantee's practice of any fraud or deceit upon the Grantor or upon existing or prospective subscribers. (h) Grantor's wrongful cessation of cable television services to its subscribers for reasons within Grantee's control; provided that Grantee will not be determined to be at fault under any provision of this Agreement in any case where the performance of that provision is excused or excusable under Section 13.2. (i) Grantee's persistent failure or refusal to remedy one or more violations, defaults, breaches, cr incidents of noncompliance for which lesser penalties have previously been imposed, unless Grantee is then contesting the same in good faith in a court or governmental agency of competent jurisdiction. (j) Grantee's insolvency, inability to pay its debts, or adjudication as a bankrupt. '(k) Grantee's falsification of information set forth zn any report required to be submitted to Grantor under this Agreement. (1) Grantee's failure or refusal to complete construction of the cable system upgrade within the period cf tlme specified in the attached Exhibit D. 9.3. Removal of PropertY. Upon any termination, revoca[lon, or forfeiture of the franchise, Grantee may be required to remove its structures and property from the Grantor's streets and to restore those streets to their prior condition within a reasonable period of time specified by Grantor, but not less than 180 days. Upon Grantee's failure to do so, the Grantor may perform the work and collect all costs, including direct and indirect costs, from the Grantee. At Grantor's discretion, the cost.of that work may be placed as a lien upon all plant, property, cr other assets of the Grantee or a claim may be asserted against the performance bond referenced in Subsection 2.5(b) . 10. RECORDS: REPORTS; RIGHT TO INSPECT AND AUDIT; EXPERTS. 10.1. Grantee to Provide Records. All reports and records required under this Section 10 must be furnished at the sole expense of Grantee. 10.2. Records. Grantee must maintain at its local offices, and make available for inspection and copying during normal business hours, and upon not less than 24-hours notice, a separate and complete set of the Grantee's business records that are reasonably related to the scope of Gran~or's rights under ~h~s Agreement, or Gran~or's re.~'~la~ory functions. Resolution No. 99-084 Page 33 15.3. Maintena. nce and inspection of Records. Grantee must maintaln accurate books and records, in conformity with generally accepted accounting principles, showing all receipts, expenses, loans,' payments, investments of capital, and other transactions relatlng to the cable television franchise. Grantor, upon reasonable notice, has the right to inspect those records and to receive copies to the extent that information is reasonably related ~c ~he scope of the Grantor's rights under this Agreement, ~r Grantor's regulatory functions; provided, however, 5hat Grantee may refuse to authorize the copying of any documents.. 5hat are marked "confidential" or "proprietary" in accordance with Grantee's customary business practices. To the extent authorized by law, Grantor will protect the confidentiality of information contained in Grantee's business records that are deemed by Grantee to be proprietary. 10.4. Reports of Financial and Operatint Activity. (a) Not later than 90 days after the close of each fiscal year of Grantee during the term of this Agreement, Grantee must submit to the Grantor a financial report, certified by a designated financial officer of Grantee, that sets forth the annual gross receipts from all sources wlthin the franchise service area, the annual gross subscriber revenues derived from each tier of service in the franchise service area, the total amount and basis for the computation of annual franchise fees paid to Grantor, and such other relevant facts as may reasonably be required by Grantor to verify the accuracy of the payment of annual franchise fees. (b) During the term of this Agreement, and upon Grantor's request, Grantee must submit reports concerning any or all of the following operational matters: 1. A summary of Grantee's activities within the franchise service area including, but not limited to, services added or discontinued, changes in technology, and the number of new 'installations. 2. A current list of Grantee's officers, directors, and other principals. 3. A summary of outage records and routine service-related calls received from subscribers for installation and service. If Grantee's collection and tabulation Of subscribers' service calls and complaints covers a geographic area that is more extensive than the franchise service area, then Grantee must use its best efforts to estimate the number of such service calls and complaints originating in the franchise service area and must inform the Grantor of the methodology used ih making those estimates. 4. A summary of subscriber complaints that were referred to Grantee by the Grantor, lnciudlng the subscriber's 25 Resolution No. 99-084 Page 34 name, date of referral, nature of the complaint, and the corrective actlon taken. 5. A description of the nature and purpose of any new construction that is anticipated to commence within the following two years. 6. A certificate of compliance stating that Grantee is in full compliance with the Consumer Protection Standards set forth in Exhibit E. 10.5. Performance Tests and Compliance Reports. Not later than April 15 of each year, Grantee must provide a written report of any FCC or other performance tests required or conducted. In addition, Grantee must provide reports of any tests and compliance procedures required by this Agreement not later than 30 days after the completion of those tests and compliance procedures. 10.6. Additional Reports. The Grantee must prepare and submit to the Grantor in writing, at the times and in the form reasonably prescribed by Grantor, all additional reports that may reasonably be required with respect to Grantee's compliance with the provisions of this Agreement. 10.7. Communications with Reculatorv AGencies. Copies of all non-routine and material communications between the Grantee and the Federal Communications Commission, or any other agency havlng 3urisdiction in respect to any matters affecting the cable communications operations authorized by this Agreement, must be submitted to the Grantor within 10 days after their receipt or submittal by Grantee. 10.8. Inspection of Facilities. Upon reasonable notice, and during normal business hours, Grantee must permit inspection, by any duly authorized representative of Grantor, of all franchise propDrty and facilities of Grantee situated within the franchise service area. 10.9. RiGht to Audit. (a) In addition to all other inspection rights under this Agreement, upon 10 days prior written notice, Grantor has the right to inspect and audit, during normal business hours, all documents pertaining to the Grantee that are related to the Grantcr's enforcement of its rights under this Agreement; provided, however, that the Grantor may not exercise this right more frequently than once in any 12-month period, nor may duplicative inspections and audits be conducted for those periods of tlme 5hat have previcusiy been subject to examination. Those documents will be made available at the Grantee's local office. All documents pertaining to financial matters that may be the subject of an audit by the Grantor, as set forth herein, must be re~alned by the Grantee for a minimum of three years. Access by Resolution No. 99-084 Page 35 %he Grantor to any documents covered by this subsection may not be denied by the Grantee on grounds that those documents are alleged to contain proprietary information, but copying may be denied' as provided for in Subsection 10.3. To the extent authorized by law, information derived from any records zden5~fied by Grantee as being proprietary will be held in confidence by Grantor, except as may be necessary to administer and enfcrce the franchise. (b) Any audit conducted by Grantor under this subsection will be conducted at the sole expense of Grantor, not more frequently than once every three years. Grantor will prepare a written report containing its findings, a copy of which will be mailed to the Grantee for its review. Grantee must reimburse Grantor for the expense of any such audit if, as the result of that audlt, it is determined that there is a shortfall of more than three percent (3%) in the amount of franchise fees or other payments that have been made or will be made by Grantee to Grantor under the terms of this Agreement. Such reimbursement must be made by Grantee within 20 days of written notice from the Grantor. 10.10. Retention of Experts. When deemed to be necessary for the exercise of its rights under this Agreement, Grantor has the further right to retain technical experts and other consultants to ensure compliance with and enforcement of the provisions of this Agreement. The Grantor will bear the cost cf retaining those experts unless either cf the following circumstances is applicable: (a) The Grantee has initiated proceedings that would normally require the Grantor to retain experts or consultants, such as the filing of a request for approval of a transfer or a change in control, renewal of the franchise (to the extent allowed by law), expansion of the franchise service area, or the modification or amendment of this Agreement; or (b) 'The reports of those experts or consultants as submitted to the Grantor reveal that the Grantee has failed to substantially comply with the terms and conditions of this Agreement. If either paragraph (a) or (b) is applicable, Grantor and Grantee will meet and confer for the purpose of determining whether all cr some portion of the costs incurred by Grantor will be reimbursed by Grantee. Resolution No. 99-084 Page 36 ii. ENFORCEMENT PROCEDURES. 11.1. Notice and Hearinc upon Grantee's Default. <a) Unless otherwise provided in this Agreement, prior to formal consideration by Grantor of any termination, revocation, or forfeiture of Grantee's franchise, or the imposition of any fine, penalty or administrative remedy available to Grantor, including liquidated damages, attributable to Grantee's failure, whether willful, negligent, or otherwise, to comply wlth the terms and conditions of this Agreement, Grantor must make written demand on Grantee to correct the alleged default. Grantor and Grantee will expeditiously meet to discuss the alleged default, at which time Grantee must indicate, in writing, the period of time reasonably required to cure the default. Giving due consideration to Grantee's request, Grantor will at that meeting, or within three days thereafter, state in writing the period of time Grantor will allow Grantee to resolve the problem. During this time period for cure, but in no event less than 20 days before the final date for correction, Grantee may request'additional time to correct the problem, and Grantor will grant that request if Grantor reasonably determines that such additional time is necessary due to delays beyond Grantee's control. If the default continues for a period of 20 days after the deadline for correction, including any authorized extension of time, a hearing before the City Council will be scheduled by Grantor with regard to franchise termination, revocation, forfeiture, or the imposition of any other appropriate fine, penalty, or administrative remedy. (b) The City Manager will provide to Grantee written notice of the hearing, including the grounds for the proposed action, not less than 10 days before the hearing. That written notice will also describe the procedures to be followed by the City Council to determine whether cause exists for termination, revocation, forfeiture, or the imposition of fines, penalties, or remedies. At a minimum, those procedures will afford the Grantee adeqQate notice and a fair opportunity for full participation, including the right to introduce evidence, to require the production of evidence, to question and to cross-examine witnesses, and to obtain a transcript of the proceeding at Grantee's expense. At the hearing, the City Council will hear Grantee, and any other person interested in the matter, and will determine, at that or at any continued hearing, an appropriate course of action for enforcement of the franchise. All decisions of the City Council will be in writing and will include findings of fact and conclusions. A copy of the decision will be transmitted to the Grantee. The decision of the City Council will be final and dispositive but without prejudice to Grantee's rlght to pursue any remedies provided by state or federal law. 11.2. Delecation. The proposed imposition of remedies, such as liquidated damages or monetary penalties, that do not involve 5ermlnation, revocation, or forfeiture of the franchise 28 Resolution No. 99-084 Page 37 map', at Grantor's option, be determined by an officer, employee, or agency of the Grantor to which it may delegate these administrative decisions, subject to due process and the criteria contained in this section, and subject to Grantee's right to appeal to the City Council. 11.3. Stop Work Notice. If any construction is performed by or on behalf of Grantee in a manner that does not comply with the material provisions of thls Agreement, the Grantor's Public Works Director, or any other designee of the Grantor's City Manager, may order the work to be stopped. That order to stop work may be made by written notice and served upon any person engaged in or responsible for the construction. No work that is stopped may be resumed until authorized by the Public Works Director or other designated representative of the Grantor. 11.4. Authorized Fines, Penalties, and Other Sanctions. (a) Grantor may impose fines, penalties, and other sanctions as set forth in this Subsection 11.4 for defaults under, or incidents of noncompliance with, the provisions of this Agreement. Grantor must first give Grantee written notice of the alleged default or incident of noncompliance in accordance with Subsection 11.!(a) and an opportunity to correct the problem. (b) Following the expiration of any specified period within which Grantee is directed to cure a default or an incident of noncompliance, the following fines, penalties, and other sanctions may be imposed by Grantor after the hearing required under either Subsections 11.1 or 11.2: 1. For Grantee's failure to comply in any material respect with any of the design and construction standards set forth in Section 7 of this Agreement, a penalty not to exceed $250 may be imposed for each day that the incident of noncompliance has not been remedied by the Grantee. 2. For Grantee's failure to comply in any material respect with the periodic per.formance testing requirements set forth in paragraph (a) of Subsection 8.2 of this Agreement, a penalty not to exceed $250 may be lmposed for each day that the incident of noncompliance has not been remedied by the Grantee. 3. For Grantee's failure, in any material respect, to maintain or to provide any books, records, reports, or cther documents in the manner required and at the time specified in this Agreement, a penalty not to exceed $250 may be imposed for each day that the incident of noncompliance has not been remedied by the Grantee. 4. For Grantee's failure to comply in any material respect with any of the Consumer Protection Standards as speclfied in Exhibit E to this Agreement, excluding violations of Resolution No. 99-084 Page 38 zhe fsur-hour schedu!ing requirement for service connections or repalrs, a penalty no~ ~o exceed $250 may be imposed for each day ~hat the inciden~ of noncompliance has not been remedied by the Grantee. 5. Sub]ect to the limitations imposed by Section 1722(b) of the California Civil Code, if Grantee fails to commence a service connection or repair within a specified or agreed-upon four-hour period, the Grantee must provide to the subscriber one of the following, at the subscriber's option: Ii) free service connection or repair; or (ii) a credit to the subscriber's account in ~he sum of $20. 6. For any other default or incident of noncompliance that is material and that is not specified in this Subsection 11.4, a maximum penalty not to exceed $250 may be imposed upon Grantee by Grantor for each day that the default or incident of noncompliance has not been remedied by the Grantee. 12. CONTINUITY OF CABLE TELEVISION SYSTEM SERVICES. 12.1. Continuity of Service. The parties acknowledge that it is the rlght of all subscribers to receive all services authorized by this Agreement so long as they honor their financial and other obligations to the Grantee. During Grantee's upgrade of the system, and upon any future sale of the system, Grantee must use commercially reasonable efforts to provide continuous service to subscribers. In the event of purchase by Grantor, or a change of franchisee, Grantee will cooperate with Grantor or the new franchisee to operate the system for an interim period in order to maintain continuity of service to all subscribers. If Grantee intentionally abandons all cable servlces on a system-wide basis for 72 continuous hours, and Grantee is in material default of this Agreement, or if the franchise is revoked by Grantor, then Grantor may, by resolution, when reasonable cause is deemed to exist, assume operation of the system on an interim basis for the purpose of maintaining continuity of service. Grantor's operation of the system may continue until the circumstances that, in the judgment of the Grantor, resulted in the cessation of cable services are resolved to Grantor's satisfaction. Grantor is entitled to receive all revenues and is responsible for all obligations and liabilities during any period in which it operates the system. 12.2. Operation and Mariacement BV Grantor. (a} During any period when the system is being operated by Grantor under Subsection 12.1 above, Grantor will autemp~ to minimize the disruption of operations in a manner conslsuent wi~h the maintenance of continuing service to subscribers. Notwithstanding the foregoing, Grantor may, as it deems necessary, make any changes in any aspect of operations ~haz, in Grantor's sole 3udgment, are requlred for the preservauion of quality and continuity of service. During that 3O Resolution No. 99-084 Page 39 period, Grantor will also maintain to the best of its ability the system's records, physical plant, financial integrity, funds, and onher elements normally involved in operations. (b) Grantor may, upon assuming operatmon of the system, appoint a manager to act for it in conducting the system's affairs. That manager will have such authority as may be delegated by Grantor and will be solely responsible to Grantor for management of the system. Grantee must reimburse Grantor for all reasonable costs, in excess of system revenues retained by Grantor, that are incurred during Grantor's operation if the franchise remains in effect during the period of Grantor's operation. 13. MISCELLANEOUS PROVISIONS 13.1. Assicnment, Transfer, Sale, and Chan~e of Control. (a) As specified in paragraph (F) of Subsection 7.02.020 of Title 7, consummation of the following transactions related to this franchise, or involving the Grantee of this franchise, requires the prior written consent of the Grantor's City Council expressed by resolution after a public hearing, whlch consent will not be unreasonably withheld, and then only under such conditions as may be prescribed: (1) The sale, transfer, lease, assignment, or other disposition of the franchise, in whole or in part, whether voluntary or involuntary; provided, however, that such consent is not required for a transfer in trust, mortgage, or other ' hypothecation for the purpose of securing an indebtedness of the Grantee relating to the construction, reconstruction, operation, or maintenance of the cable television system. A transfer, assignment, or other disposition of the franchise may be made only by an instrument in writing, a duly executed copy of which must be filed in the office of the City Clerk within 10 days after the consummation of that transfer, assignment, or other disposition. (2) Any merger, consolidation, reorganization, business combination, or other transaction wherein or whereby 25 percent or more of the ownership interests in the Grantee, or in any parent company of the Grantee, will be affected and control of the Grantee will change or be subject to change. As used herein, "control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the Grantee. A duly executed copy of any written instrument evidencing the closing and consummation of any such uransactzon must be filed in the office of the City Clerk within I0 days after the closing and consummation of that transaction. (b) In determining whether it will consent to any uransfer, assignment, or other disposition of the franchise, or any nransactlon affecting the control of the Grantee, the Resolution No. 99-084 Page 40 3rantor may evaluate the financial, technical, legal, and other qua!if!cations of the proposed transferee or controlling person. Grantee must ensure that the proposed transferee or controlling person submits an application, in the form required by Title 7, or by any applicable federal law, prior to the closing date of The proposed transaction. After considering the financial, technical, legal and other qualifications of the proposed transferee or controlling person, the City Council may, by ordinance or resolution, authorize the proposed transaction, sub]oct to such conditions as may be in the public interest. Grantor's consent to any such transaction may not be unreasonably" denied or delayed. (c) Grantee and its proposed transferee or controlling person are jointly and severally responsible for reimbursement to the Grantor of all costs and expenses reasonably incurred in evaluating and processing the application related to the proposed transaction. These costs and expenses may include, as may be determined by the Grantor to be reasonably necessary, the following: costs of administrative review; financial, legal and technical evaluation of the proposed transferee; costs for technical experts and consultants; notice and publication costs; and document preparation expenses. Grantor will send Grantee an itemized statement of those costs and expenses reasonably incurred, and Grantee will pay that amount within 20 days after receipt of that statement. Unless otherwise agreed to by the Grantor and the Grantee, such costs and expenses will not exceed 5he sum cf $15,000. (d) The requirements of this Subsection 13.1 do not apply to the restructuring of debt or to the transfer cf ownership interests between existing equity owners of any of the entities identified in the attached Exhibit B; provided, however, that the Grantee must provide to Grantor not less than 30 days prior written notice of that proposed transaction and must represent that such transaction will have no foreseeable effect on the management and operation of the Grantee's cable system in the franchise service area. 13.2. Force Majeure. (a) If Grantee's performance of any of the terms, conditions, obligations, or requirements of this Agreement is prevented or impaired by any cause or event beyond its reasonable control and not reasonably foreseeable, that inability to perform will be deemed to be excused, and no penalties or sanctions will be imposed. Those causes beyond Grantee's reasonable control and not reasonably foreseeable include, but are not limited to, acts of God, civil emergencies, labor unrest, strikes, inability to obtain access to an individual's property, and inability of the Grantee to secure all necessary authorizations or permits to use necessary poles or conduits so long as Grantee exercises due dlllgence to timely obtain those authorizations or permits. Resolution No. 99-084 Page 41 {b) Where any cause or event is beyond Grantee's reasonable control and is not reasonably foreseeable, and that cause or event only partially affects Grantee's ability to perform, Grantee must perform to the maximum extent possible. In ~hat event, Grantee must give written notice to the Grantor of any such cause or event within five business days after Grantee has learned or should have learned of 1rs occurrence. <c) Grantee's compliance with the terms, conditions, obligations, and requirements of this Agreement will not be excused on the basis of increases in the cost of performance, changes In economic circumstances, or nonperformance by an employee, agent, or contractor of the Grantee. (d) Nothing contained in this Subsection 13.2 will be deemed to limit Grantee's rights under 47 U.S.C. § 545, as it now exists or may later be amended, to seek modifications of franchise requirements based upon "commercial impracticability." 13.3. Possessorv Interest. By accepting the franchise, Grantee acknowledges notice was given to Grantee, as required by California Revenue and Taxation Code Section 107.6, that use or occupancy of any public property under the authority set forth in this Agreement may create a possessory lnterest that may be subject to the payment of property taxes levied upon that Interest. 13.4. Indemnification. Grantee will indemnify, defend, and hold harmless the Grantor, its officers, agents and employees, from any liability, claims, damages, costs, or expenses, including reasonable attorney's fees, arising out of or attributable to the exercise or enjo~rment of the franchise renewed pursuant to this Agreement. Grantee, at its sole cost and expense, and upon demand of Grantor, will appear in and defend all suits, actions, or other legal proceedings, whether judicial, quasi-judicial, administrative, legislative or otherwise, instituted by third persons or duly constituted authorities, against or affecting Grantor, its officers, agents, or employees, and arising out of or pertaining to the exercise of rights arising under the franchise within the franchise service area, and injury to persons or damages to property proximately caused by any conduct undertaken by the Grantee, its agents, employees, or subcontractors, by reason of the franchise. 13.5. Receivership and Foreclosure. (a) At the option of Grantor, this franchise will terminate 120 days after the appointment of a receiver, or %rustee, to take over and conduct the business of Grantee, whether in a receivership, reorganization, bankruptcy or similar ac%lon or proceeding, unless that receivership or trusteeship is ¥acated prior to the expiration of that i20-day perlod, or unless: (i) the receiver or trustee, within 120 days after that appointment, fully complies with all the terms and provisions of Resolution No. 99-084 Page 42 5his Agreement, and remedies all defaults under this Agreement; and ~il} the receiver or trustee, within that 120-day period, executes an agreement duly approved by the court having ~ur!sdiction in the matter, whereby that receiver or trustee assumes and agrees to be bound by each and every term, provision, and !imltat~on of this Agreement. (b) In the case of a foreclosure or other judicial sale of the plant, property, or equipment of Grantee, or any part thereof, including or excluding this franchise, Grantor may serve.. notice cf termination upon Grantee and the successful bidder at 5hat sale, in which event this franchise, and all rights and privileges of the Grantee under it, will terminate 30 days after the service of that notice, unless: (i) Grantor approves the transfer of the franchise in the manner provided by this Agreement; and (ii) the successful bidder covenants and agrees with Grantor to assume and be bound by all the terms and conditions of this Agreement. 13.6. Conflict of Interest. The parties agree that, to their knowledge, no member of the City Council, nor any other officer or employee of Grantor, has any interest, whether contractual, non-contractual, financial or otherwise in this franchise, or in other business of the Grantee, and that if any " such interest comes to the knowledge of either party at any time, a full and complete disclosure of that information will be made in writing to the other party, even if that interest would not be considered a conflict of interest under applicable laws. Grantee covenants that it has, at the time of execution of this Agreement, no interest, and that it will not acquire any interest in the future that would conflict in any manner with the performance of its obligations under this Agreement. Grantee further covenants that, in the performance of its obligations, no person having any such interest will be engaged or employed. 13.7. Resolution of Disputes. (a) Disputes regarding the interpretation or appli- cation of any provisions of this Agreement will, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. (b) If any action at law or in equity is brought to enforce or interpret any provisions of this Agreement, that action must be initiated in the federal or state courts located within Los Angeles County or San Bernardino County, State of California, regardless of any other possible ~urisdiction or venue. In addition, the prevailing party in any such action is en~ztled to reasonable attorneys' fees, costs and necessary disbursements, in addition tc any other relief that may be sought and awarded. 13.8. Waiver bv Grantor. The Grantor has the right tc waive any provisions of this Agreement, except those required by 34 Resolution No. 99-084 Page 43 federal or state laws or regulations, if the Grantor determines ~i,, ~ha~ it is in the public interest to do so, and (ii) that the enforcement of such provision will impose an undue hardship on %he Grantee or its subscribers. To be effective, a waiver must De in .writing and signed by a duly authorized representative of ~he Grantor. 13.9. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions will not be affected unless their enforcement under the circumstances would be unreasonable, inequitable, or would otherwise frustrate the purposes of this Agreement. 13.10. Amendments. This Agreement supersedes all prior proposals, agreements and understandings between the parties and may not be modified or terminated orally. No modification, termination or attempted waiver of any of its provisions will be binding unless in writing and signed by the party against whom the same is sought to be enforced. 13.11. Bindinc Upon Successors. This Agreement is binding upon and inures to the benefit of each of the parties and to their respective transferees, successors and assigns. 13.12. Counterpart Execution. This Agreement may be exe- cuted !n multiple counterparts, each of which is deemed to be an original and all of which constitute one and the same instrument. 13.13. ADDlicable Law. Thls Agreement and the transactions contemplated by it are to be construed in accordance with and governed by the applicable laws of the State of California and of 5he United States. 14. DEFINITIONS. a. Defined Terms. For the purposes of this Agreement, the following words, terms, phrases, and their derivations have the meanings set forth below. When not inconsistent with the context, words used in the present tense include the future tense, and words in the singular number include the plural number. "Basic Service" or "Basic Cable Service" or "Basic Service Tier" means the lowest service tier that includes the retransmission of local television broadcas~ signals, including those of public, educational, and governmental access channels. "1984 Cable Act" means the'Cable Communications Poilcy Act of 1984. "1992 Cable Act" means the Cable Television Consumer Protec5ion and Competition Act of 1992. Resolution No. 99°084 Page 44 "Cable Act" means the 1984 Cable Act as amended by %he !992 Cable Act and by the Telecommunications Act of 1996. "Cable Operator" means any person or group of persons <l! who provides cable service over a cable system; or (ii) who controls or is responsible for, through any arrangement, the management and operation of a cable system. "Cable Service" means the one-way transmission to subscribers of video programming, or other programming services, and subscriber interaction, if any, that is required for the selection or use of that video programming or other programming service. For the purposes of this definltion, "video programming" means programming provided by, or generally considered comparable to programming provided by, a te!evision broadcast station; and "other programming service" means information that a cable system operator makes available to all subscribers generally. For purposes of this Agreement, and subject to future changes in federal law, the term "cable service" includes high-speed data services that are provided to subscribers within the franchise service area. "Cable System" or "Cable Communication System" or "Cable Television System" means a facility, consisting of a set of closed transmission paths and associated signal generatlon, reception, and control equipment that ls designed to provide cable service that includes video programming and that is provided to multiple subscribers wlthin a community. The term "cable system" does not include: (i) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (ii) a facility that serves subscribers without using any public right-of-way; (iii) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Telecommunications Act of 1996, except that such facility will be considered a cable system (other than for purposes specified in Section 621(c) of the 1984 Cable Act) to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent cf such use is solely to. provide interactive on- demand services; (iv) an open video system that complles with Section 653 of Title VI of the Teleccmmunicati©ns Act of 1996; cr 36 Resolution No. 99-084 Page 45 (v) any facilities of an electric utility that are used solely for operating its electric utility system. "Complaint" means a billing dispute in which a subscriber notifies Grantee of an outage or degradation in plczure quality that is not corrected following the initial telephone or service call. "Control" or "Controliinq Interest" means actual working control in whatever manner exercised, including, without limitation, working control through ownership, management, or debt instruments, as the case may be, of the cable system or the Grantee. "Drop" means the cable and related equipment connecting the Cable System's plant to equipment at the premises of a Subscriber or the facilities of the Grantor. "Education Channel" means any channel where non-profit educational institutions are the primary designated programmers. "FCC" means the Federal Communications Commission or its designated representatives. "Franchise" means a written undertaking or action of the Grantor that authorizes a specific person to use the Grantcr's streets and public ways for the purpose of installing, operating and maintaining a Cable Television System to provide Cable Service. '~Government Channel" means any channel where a local government agency is the primary designated programmer, and the programming is informational programming regarding government activities and services. "Grantee" means the person or entity to which a Franchise is granted for the construction, reconstruction, operation, and maintenance of a Cable System, and the lawful successors, transferees, or assignees of that person. "Grantor" means the City of Rancho Cucamonga, acting by and through its elected governing body, or such representative as the governing body may designate to act on cable matters in its behalf. "Gross Annual Revenue" or "Gross Annual Receipts" or "Gross ReceiP~s" means all revenue, as determined in accordance with generally accepted accounting principles, that is received, ilrectly or indirectly, by Grantee from or in connection with the dis~rlbu~ion of any Cable Service within the franchise service area, and any c~her service provided within the franchise service area 5ha[ may, under existing or future federal law, be included Resolution No. 99-084 Page 46 ~n the Cable Act definition for the purpose of calculating and collecting the maximum allowable franchise fee for operation of %he system, whether or not authorized by any franchise, ~nc!uding, without limitation, leased or access channel revenues received, directly or indirectly, from or in connection with the dlstrlbution of any Cable Service. It is intended that all revenue collected by the Grantee from the provision of Cable Servlce over the system, whether or not authorized by the franchise, be included in this definition. Gross Annual Revenue also specifically includes any revenue received, as reasonably determined from time to time by the Grantor, through any means that is intended to have the effect of avoiding the payment of compensation that would otherwise be paid to the Grantor for the franchise granted. Gross Annual Revenue also includes any bad debts recovered, and all advertising revenue that is received directly or indirectly by Grantee, or any other person, from or in connection wlth the distribution of any service over the System or the conduct of any service-related activity involving the System. Gross Annual Revenue does not include: (i) the revenue of any person to the extent that such revenue is also included in. the Gross Annual Revenue of Grantee; (ii) taxes imposed by law on Subscribers that Grantee is obligated to collect; (iii) amounts that must be excluded pursuant to applicable law;and (iv) bad debt. "Headend" means that central portion of the system where signals are introduced into and received from the balance of the system. "Leased Channel" or "Leased Access Channel" means any channel where someone other than Grantor or Grantee is sold the rights to air programming. "Monitorinc" or "TaDpinG" means observing or receiving a signal, where the observer is neither the sending nor receiving party and is not authorized by the sending or receiving party to observe that signal, whether the signal is observed or received by visual, electronic, or any other means. "Pay Cable," "Pay Service," .Premium-Service" or "Pay Television" means signals for which there is a fee or charge to users over and above the charge for Basic Service, including any tiers of service; provided, however, the sale or lease of studio facilities, equipment, or tapes to local users are not deemed to be pay or premium services. "Person" means any individual, corporation, partnership, proprietorship, or organization authorized to do business in the State of California. "Plant" means the transmitting medium and related equipmenu that transmits signals between the Headend and Subscribers, including Drops. 38 Resolution No. 99-084 Page 47 "Pole Attachment Acreement" or "Attachment Acreement" means any agreement with the Grantor, with any other governmental entity, or with any public utility relating to the Grantee's use of utility poles, ducts, or conduits. "Procram" or "Procramminq" means the information ccn~en5 of a signal and the act or process of creating that conrenu, 'whether that content is intended to be pictures and sound, sound only, or any other form of information. "Proqrammer" means any person who provides program material or information for transmission by means of the System. "Property of Grantee" means all property owned or leased by Grantee within the franchise service area in the conduct of its Cable System business under a Franchise. "Public Channel," "Access Channel," "Communitv Servlce Channel" or "Community Channel" means any channel for which members of the public, or any community organization, may provide non&dvertiser supported programming. "Residential Dwellinc Unit" or "Dwellinc Unit" means a home, mobile home, condominium, apartment, cooperative unit, and any other individual dwelling unit. "Service" means any kind of service or type of benefit provided by Grantee, or any group of related benefits made available to any person, that involves the use of a signal transmitted via a Cable Television System, whether the signal and its content constitute the entire service or comprise only a part of a service that involves other elements of any number or kind. "Service Area" or "Franchise Service Area" means that territory within the City of Rancho Cucamonga that is specifically described in Exhibit C to the franchise agreement. "Service Interruption" means the loss of picture or sound on one or more cable channels. "Service Tier" or "Tier" means a category of Cable Service or other services provided by a Cable Operator and for which a separate rate is charged by the Cable Operator, other than per channel or per event programming or packages of per channel or per event programming. "Streets" means the surface of, and the space above and below, any public street, sidewalk, alley, or other public way or right-of-way of any type. "Subscriber" means any person electing to subscribe for any purpose, a service provided by Grantee by means of or connection with its Cable System. Resolution No. 99-084 Page 48 b. Terms Not Defined. Words, terms, or phrases not defined above in paragraph (a) shall first have the meaning as dellned in the Cable Act, and next in Title 7, and next the special meanings attributable to their use in any industry, buslness, trade, or profession where they commonly carry special meanings. If those special meanings are not common, they will be defined as set forth in commonly used and accepted dictionaries cf the English language. 15. AUTHORITY AND EFFECTIVE DATE. 15.1. Authority. The persons signing below represent that they have the requisite authority to bind the entities on whose behalf they are signing. 15.2. Effective Date. This Agreement will become effective as of the date specified in Subsection 1.7. It is the intention cf the parties that the Grantee will first execute this Agreement and then submit it to the Grantor. The City Clerk will insert the effective date in all counterparts of this Agreement, attest tc their execution by a duly authorized officer of the Grantor, and transmit one or more fully executed counterparts to the Grantee. TO EFFECTUATE THIS AGREEMENT, each of the parties has caused this Agreement to be executed by its duly authorized representative as of the date set forth below the authorized signature. APPROVED AS TO FORM: ty AttOrney ATTE~T/~ ~ -- [signatures continued] 40 - Resolution No. 99-084 Page 49 Corporat c~~ COMCAST CABLEVISION OF INLAND VALLEY, INC., a Delaware corporation, dba COMCAST CABLEVI SION ~ Date: ~/~/~ 41 Resolution No. 99-084 Page 50 EXHIBIT A TITLE 7 OF THE RANCHO CUCAMONGA MUNICIPAL CODE AS ADOPTED AND IN EFFECT ON THE EFFECTIVE DATE OF FRA/gCHISE RENEWAL Resolution No. 99-084 Page 51 EXHIBIT B OWNERSHIP The ownership of Comcast Cablevislon of Inland Valle},, inc. is described as follows: ..... Comcast Corporation Comcast Cable Communications, Inc. Comcast Holdings, Inc. Comcast Cablevision Corporation of California, Inc. Comcast Cablevision of Inland Valley, Inc. EXHIBIT Resolution No. 99-084 Page 52 .~ESCR!_T~ON OF THE FRANCHISE SERVICE AREA C-! Resolution No. 99-084 Page 53 EXHIBIT D GRANTEE'S TECHNOLOGY iMPLEMENTATION PLAN _. DESCRIPTION OF GRANTEE'S UPGRADE OF THE CABLE SYSTEM Grantee has submitted its schedule relating to the proposed upgrade cf the cable system within the franchise service area. Grantee will upgrade the cable system in its entirety, throughout: The franchise service area, to 750 MHz bandwidth. This upgrade will incorporate the following features: A. The 750 MHz bandwidth upgrade will provide for not less than 83 analog channels in the 54-550 MHz range and a minimum of 90 channels with digital capacity in the 550-750 MHz range. B. The fiber optic network will be comprised of 51 nodes in Ontario. Each node will have 12 fibers (six in each direction). No more than 1800 homes will be serviced from each node. C. The cable system will be served by two headends, both of which will have a Standard Related Carriers channel allotment plan. A separate hub site, known as an Optical Transition Node, will be served from one of the two headends. The backbone of 5he network, from headend to headend, will have 48 fibers. The Optical Transition Node will have 24 fibers from each headend. The fiber "ring-in-ring" architecture will connect both headends and the Optical Transition Node while providing redundance and a self-correcting mechanism to ensure signal reliability. D. The fiber optic backbone will consist of a Philips Diamond Transport System that includes AM VSB signals to be transmitted and received through various lengths of fiber within a hybrid fiber coaxial network. The Diamond Transport System is a r~ck-mounted shelf that accepts forward transmitters, return receivers, power supply modules, network interface cards, and a fiber optic management system. E. The RF (Radio Frequency) distribution system will include Philips Global Network Amplifiers. When placed in the trunk or feeder line of a broadband network, network amplifiers control, split, and amplify signals. They also accept plug-in, automatic control circuitry. In areas where the multiple outputs cf the network amplifiers are unnecessary, line extenders will be used in 5he distribution plant. These.line extenders have switched-mode power packs to reduce the number of additiona.1 line power supplies. F. High quali~y analog and digital signals will be delivered to subscribers through Grantee's use cf Philips 9000- ser~es tap-off devices and line passives that operate to one GHz Resolution No. 99-084 Page 54 and ensure low insertion loss while maintaining power-passing capability. G. Standby power will be used throughout the cable system to ensure that uninterrupted AC power is provided in the event of a commercial power failure. Each standby power supply unit wz!l have a battery backup that will function up to four hours when commercial power has been interrupted. H. The Grantee's upgraded cable system will meet or exceed the following minimum technical specifications: 1. Optical Link (Node) 83-Channel Loadinq Analoq Carrier-to-Noise Ratio: 51 dB Composite Trlpie Beat: 68 dB Cross-Modulation: 68 dB Composite Second Order: 64 dB 2. RF Svstem, with Two Line-Extenders in Cascade Carrier-to-Noise Ratio: 48 dB Composite Triple Beat: 53 dB Cross-Modulation: 53 dB Composite Second Order: 53 dB I. Following the upgrade described in this Section I, Grantee may substitute equipment that is equivalent to or better than 5hat specified herein in order to maintain or to enhance the performance of the cable television system. II. CONSTRUCTION OF THE CABLE SYSTEM UPGRADE A. Grantee has commenced construction of the cable system upgrade as of the effective date of this Agreement. Grantee will complete the upgrade in its entirety, throughout the franchise service area, not later than December 31, 1999. B. Grantee's upgrade of the cable system will be in compliance with all FCC technical standards, as they now exist or may later be amended or supplemented. C. Grantee's upgrade of the cable system will be in compliance with all applicable construction standards that are set forth in this Agreement, including those relating to the undergrounding of network facilities. III. INCENTIVE FOR TIMELY COMPLETION OF THE CABLE SYSTEM UPGRADE. A. If Grantee completes construction of the cable system .upgrade Dy December 31, 1999, then the term of this cable television franchise awarded by Grantor will be automatically extended for an additional term of five years. If construction of the cable system upgrade has been completed by Grantee by December 31, 1999, then there Resolution No. 99-084 Page 55 tenc extension of the term of this cable television franchise and, in i~s sole dlscretlon, Grantor may impose the penalties or sanc51cns set forth in Sect~cn iV. PENALTIES FOR FAILURE TO COMPLETE CONSTRUCTION OF THE CABLE SYSTEM UPGRADE BY DECEMBER 31, 1999 If Grantee falls to complete construction of the cable system upgrade by December 31, 1999, and that failure is not excused by Grantor, then Grantor may, in its discretion, impose zhe following penalties or sanctions, as may be appropriate under the circumstances and taking into consideration the duration of the unexcused delay: A. Proceed against the surety on the performance bond relating to construction of the upgraded cable system, which performance bond is provided for in Subsection 2.5(a) of this Agreement. B. Impose a monetary penalty upon Grantee in an amount up to $250 for each day beyond December 31, 1999, during which Grantee has failed to complete construction of the cable system upgrade, as provided for in Subsection 11.4 of this Agreement. C. Revoke, terminate, or declare a forfeiture of the cable television franchise in accordance with the procedures specified in Subsection 11.1 of this Agreement. Resolution No. 99-084 Page 56 EXHIBIT E CONSUMER PROTECTION STANDARDS Grantee's Notifications to Subscribers. Grantee will provide to all new subscribers and annually to existing subscribers, notifications that are substantially similar to those attached as Schedule 1 to this Exhibit E. 2. General Standards for Consumer Service and Protection. Grantee must meet or exceed all applicable consumer service standards that are customary in the cable television industry and that are recommended or required by the following: (a) Federal statutes, and the rules, regulations, and orders Of the Federal Communications Commission, including the following: (i) The provisions of Section 76.309(c) of Title 47 of the Code of Federal Regulations, as it now exists or may later be amended, a copy of which is attached as Schedule 2 to this Exhibit E; provided, however, that strict compliance with these provisions will not be required during such time as the upgrade is under construction, as provided for in Exhibit D. (ii) The provisions of Section 76.630 of Title 47 of the Code of Federal Regulations, as it now exists or may later be amended, a copy of which is attached as Schedule 3 to this Exhibit E. (iii) The provisions of Section 551 of Title 47, United States Code, as it now exists or may later be amended, a copy of which is attached as Schedule 4 to this Exhibit E. (b) The provisions of California Government Code Sections 53054, 9_% sea., entitled the "Cable Television and Video Provider Customer Service and Information Act, a copy of which is attached as Schedule 5 to this Exhibit (c) The provisions of California Government Code Section 53088, et seq., entitled the "Video Customer Service Act, a copy of which is attached as Schedule 6 to this Exhibit E." The provisions of California Civil Code Section relating to service or repair transactions between E-I Resolution No. 99-084 Page 57 cable zelev~sicn companies and their suDscribers, a copy of which is attached as Schedule 7 ~o this Exhib~5 E. Unless preempted by paramount federal law, the ccnsumer service standards referenced above that are 5he most stringent, and that afford the greatest degree of protection to consumers, will apply to Grantee's operations and activities in %he franchise service area. Resolution No. 99-084 Page 58 ORIGINAL Poor GUAUTY Resolution No. 99-084 Page 59 ORIGINAL Resolution No. 99-084 Page 60 ome to Comcast to Enioq Ceble 11! Comcast Customer, ,me to Comcast. We are pleased to have you as our valued you grows, we're confident you'll find Comcast to be an uality cable service. :ast is committed to the communities we serve, and we are Jrs. We've invested millions of dollars in the Cable in the Classroom:i :.-area schools with up to 500 hours of top-notch educational, c month. And, of course, we always guarantee the highest quality, most ,'L.which is why the Comcast name has become synonymous with outstandi~ throughout the telecommunications industry. Comcast is also dedicated to offering you a vast array of unique and excitin With entertaining Basic channels, the best premium services, Comcast Home ~ cast networks, and even original programming produced for Comcast viewers always find high caliber cable programming sure to make your viewing ;..:With excellence in service and program choice, and with a commitment to the I service technology has to offer, Comcast promises to be the best possible, now and in the future. We look forward to continuing our relationship w~ ":~'i. Sincerely,. COMCAST' EvIrRYTHINal YOU CONNECT WITH ."':..CUSTOM~ pa~t of/' each ;Jstance :hoices. ,road- you'll one. OmQINAL Resolution No. 99-084 Page 61 ."ableofConlenrs Programming 6. Service Fearores Connecting qour TV and VCR Helpful Hints 6 Troubleshooting Billing In[ormalion Installerion 6 Hmnlenonce Policies Comcosr's 6uoronlee:/,. G CUSTOMEJq H~NDBOOK Resolution No. 99-084 Page 62 ,..~, '~:~ a Comcast customec you ha e access co a wtde vane~ of ouuandtn~ pm[rammt~.Th~ n~ i'~d~ n~m · · "~';.:,;':~hildren s programm,ng, superb spo~ coverage..ducacional prog~mm,n[, blockbuster. lnd clau~,,~ and dram,. No ma~er ;~ . r '~hat your interes~ Comcast offers some~ing ~or eve~one. ' . .~'~. '-; ~".';; ~' ~_'i~ ':-:'i ?.Our ,most popular bundle of channels features all the basic cable channels offered. This Covers Ljl~lted BaiJc; S~11i:~ird B~sic ~'~,-~.~i~e Pak :.' '. channels. Take a moment to look at your area's channe~ line.up for a cornpiece list of all the cab e'channelS"~ivatlable to you. "~' '. ' :.~: ,,.~ · . .,. '.:.:, ~ ~ :' .'[Limited BascServce· · ' , ' :. ~. :-:: .' This service covers local broadcast channels, governmental, public broadcasting and shopping charmels.:l'hi~is'for customers .~e~king better ~ ~'. i. , reception versus an external antenna to receive off-air broadcast channels, but do not want the v~riety"'(~:'programming which;the t~,.. ' Standard Basic Service offers. "-'::.~ ' Premium Channels HBO, Showtime, Cinemax,The Movie Channel, Star'z! and Encore are some of the premium cable channel~',v~hich offer a full line-up of movies, sports and special programs. Premium Channels can be purchased individually and added to your..b~ic service. There are also spe- i;.i.~ cial packages available which will give you greater variety at a discounted rate. Consult your rate card for:the exact premium channel offerings and special packages. ,. J t eater (pay.per-view) f:. :.. Comcast Home Theater is the convenient and easy way to see hit movies and speclat events. Now you can watch the latest blockbuster ' movies simply by dialing a toil free number. just think, no more trips to the video store! No standing in lir~e, no returns, no rewinding fees i.I. ' and our titles are always in stock! Plus Home Theater is a great value for your money. Movies are priced'from $2.99 to $3.95, specials and : .. events are individually priced. i(-" Parental Control Lock · · Comcast's Parental Control Lock feature allows you to "lock out" the reception of selected channels whenever you feel it necessary. This ...... feature is available only to home cable systems equipped with an addressable remote converter. An addressable.converter allows you to · , ;; ,. custom select the channels you feel are appropriate for your household while locking out the others. To program.the Pa.rental Control '.;--. · Lock, follow the simple instructions in your converter-operating booklet, or call us and we'll be glad to help you. If you don't have an .-. addressable converter and would like to access the Parental Control Lock feature. the equipment is available with an additional.monthly ': ,.. charge. Please call our Customer Service department to request this feature or to receive more information. :,; Cable Guard (Available in most areas) · . ;,'.' ~'~: .. Cable Guard is'a service protection program, which covers in-home visits for the diagnosis of video reception problems and the repair of :'.~..' :. in-home cable wiring. You are charged a minimal monthly fee for this service. If you choose to waive this optional service protection you ~.a~*':'~:.-'..will be charged an hourly fee with a minimum charge of one hour should our service technician assess a non-cable related p'(~:~biem. ~'~, . '. Urniced basic service may not be a,ilabl. in all covera!le areas. ~::'. ':" Standard basic service .ay be called"Complete Basic Service" or"Prelerred Basic" in some areas ':':'.... ~, '. .~.:,~.- .. -.. :.. ~_.--"..... ~,.'.. .~ ~.-' · .~ .. -.. -- ORII31NAL POOR GUAUTY Resolution No. 99-084 Page 63 tlOUr TV ond VCR C0mcost H00hs Up for FreeP When we install your cable service. Comcast will take care of your VCR hookups too. It's just part of what we do. And if you would like us to handle it at some later date, we'll be happy to help you for a nominal fee. If you choose to complete the VCR hookup options, choose the one that best suits your viewing needs. 0pli0n I VCR CONVERTER 0pri0n 1: ~etcn 6 Record Simult0ne0uslq With this installation, your"l'V and ¥CR receive the same signal, allowing you co record only the program being watched. make sure your TV andVCR are both tuned to channel 3. (Santa Maria & L.ompoc areas tune to channel 4).As the diagram shows, connect the wires so that the cable signal passes from the main cable into the Comcast converter. then to the ¥CR input, and finall), co your television. 0pli0n e: ~qorch 6 Rec0r(l In(lepen(lenIIq This configuration enables you to record one channel while watching another. This flexibility requires two (2) converter boxes and one A/B switch. There is an additional monthly charge for this option. When connecting for Option 2. be sure to follow the diagram above. If you have questions, please contact your Comcast office. CU$ TO/vlER }-{ANDBOOK Resolution No. 99-084 Page 64 :Helpful Hints and Troublesha 'i'~ Comcast is available :24 hours a day, 7 days a week to help ,'it, ~;~!;;. cable service, However, many situations can be handled qu :kl~ ,.~'>' vice call. Just take a look at our Helpful Hints below for simple ~.'~:...' you may encounter. No Piclure or "Snm" on Screen .,, · Make sure the TV set and converter are plugged in '..".- ' ' · Be sure your'rV set is on and is tuned to channel 3 · Check and, if necessary, tighten all connectors leading into your ." · If the cable is connected to yourVCR, be sure yourVCR is turned to is tuned to the channel enabling it to receive yourVCR's signal Good Picture, Sound Prot)lems · If you are not getting sound, try pressing the "Mute" button on your adjust the volume on your TV to anc. rmal listening level If you are getting the wrong sound, check the S.A.P or M.T.S. button on your.,:. to your TV instruction manual Remole Control Nol Funclionin~ · Check that the batteries are installed properly ~,:,. lirano Channel Appears . Make sure your'IV set is tuned to channel 3 (channel 4 in Santa Maria/Lompoc ar ' · Check the fine tuning on converter · Set converter fine-tuning according to instructions ~.~ · "'i-;..~...?..~ ,_ - Cannot Change Channels Check to see if you've locked out your channels with the Parent Control lack feature. If s~g:all oust. omar service to unlock your channels. ~'~5', ,-~';;~' . k ~ ~- ~' · ~"~v. Resolution No. 99-084 Page 65 In[orm !rion Your Account C=OMCAS'r' ~U for Ser~,ic~ ,s.~,.u,,ov-,~' ~"~' ~'"~ ~ Number ~t ~,, c I How To Reach Us ~' ~ ~';'~ Your Service or .,.hm~,m~,h.m~..l,"~i'h ~ Billin~ Address JOHN ODE t23d MAIN STREET ~ Summ~ry of ONTARIO. CA 91761.15~ charges ~.~2,~, ~ ~ ~.~" is Due Jm~ort~,t Vlcluer ~" ~" ~T~ Addiaonal ~.oE-.x ~ .~.e~s, ~Address - 0ur First CaDre Statement Service & Use Monthly Charges 12/27- 01/26 COnverter-"-"-' 12/27 - 01/26 '°Encham,h.~ e ....... S 287 Date Oescnl~t~on 12/19 FCC Re ulalo Fee ! 2/19 FrellChl$~ Fees 0_~4 Additio,al Details Dudng l this last month ...Will arrive one week from the date your cable was installed. Comcast Cablevision bills one month in advance. So, anytime y. ou make a change. your statement will include charges or credit~ for a partial month plus the new month's charges. One-time charges include: installation and change-of-service transaction fees. These charges must be prepaid at the time of installation. Record of payment will appear on your first statement. Future Statements Your monthly statement will be sent to you at approximately the same time each month and payment is due within IS days. The due date of your payment is noted on your statement, If paymen[ is no[ received by ~e ~me the nex[ roDrich's s~tement is beins prepared, you will.incur ~ la~e fee on thac s~cemen~With continued non-pay-, men~ ~cdvi~ your service is subje~ '~;disconne~on. ~e~se refer ~o the sample s~[ement when. reviewin[ your" fi~s~ s.temenc and refer ~o you rate schedule and channel he-up c~rd for monthly ra:es. Resolution No. 99-084 Page 66 ORIGINAL POOR QUALITY .. ',~, ~'-.': ' ~, ' Comet gua~n~es s~dard insaltaaon of oble service will be perused '7~~ ~ i -'~'~; ~ur ~ order h=s ~en p~c~. S~da~" ins=liaoon a~ ~ose which =~ ~:'" · system, ~cluding condi0on, ~d ~e control of Comost ~ will ~gin ~ .~ ~ ! ;~L~mmPW ' ~;~J~ :. and in any event no lair ~n 24 houri a~r the inter~poon b~omes ~:~ ' o*er service p~lems *e next busings day aker nodfi~on of *e service '~~ ~ ~'~h~ ~'~" alter- ~. naives for insml[aaons, semite ~11s, and o~er insmlla~on ac~vides will ~ eith~;~;~n'~ ~ ~ ~e o~imum, ~..' a four-hour eme block du~n8 normal business hours. (The opentot may sched61e'~ "~ ~ :~er in~alla~on ~.' activi6es ouuide of nodal business hours ~r your convenience.) Comost will ~._ .~ ~ ~.ib.tnt ~ ~u a~er ~ ..~ ~e close of business on ~e business day prior to your scheduled appoin~en: If'~';.: .~ ~ i~' is ~nning ~.' la~e for an ap~in~ent wi~ ~u and ~11 not be a~e to ~ep *e ~in~ent as ~;~ con~.~e ~. appoin~ent ~ll ~ msch~uled as necessary, at a time which is con~nient to ~u .'~. Sign~ Quali~ Compl~nt Pmcedu~ ' :. :. Should you e~pe~ence a pmbl~ with picture quailS, try reviewing your ~ and/or VCR.~n~ls~r proper adjus~en: .. If ~e problem d~s not cl~r up, call our o~ce and describe the problem to a Custome~oU~t'~u~ve. If, in order to correct ~e problem ~ need access to your p~mises, a service call will be scheduled ~t:a O:~:convenient to you. All - . · effo~ wdl be made ~ Comcast to ~solve any complam~ concermng p,cture quah~ pr~,~d.~oendy. If our set- ?.. vice technician is una~e to correct ~e problem to your satisfaction, we will, a~ your requ~c~.~dle a second se~ice ~'. appoin~en~ If we remain unable to cor~ct ~e problem you will be noUfied of this ~ct and"~e ~on w~. If you ~ .,.. believe our response has been deficient in any way, you may conact your local f~nchising au~ri~.'R~e ~fer ~o your , ~ billing satement for the location of your local f~nch~sing authori~.The full address will be found on your mon~iy s~ce- meal The~ of Cable Service ,....;. The Cable Communications Act of 1984 declared unauthorized reception of cable service a fede~l'offense. Mo~ recent- ,.~... ly, ~e Cable Act of 1992 clarified ~e government's s~nd on cable theft, smting,"no person shall inte~ept or ~ceive or :~' assist in intercepdng or r~eiving any communications service offered over a cable system, unless specifiol¥ a~orized ~'-': by law," In addition, punishment of offende~ has ~come harsher, Now, penalties for "any pe~on who ~11fully .~olates ~is · "~L~- law shall pay 6nes up to $ I,~ and/or imprisonment for up to six months." t',"; . We at Comcast share ~e fede~l government's serious view o¢ cable theft, and we're working to contel ~is p~blem for .~ the good of our customen, our communi~ and our or~ni~tion. We ask for your assistance in detecting oftenden of this . law, If you know or susp~t someone is violating this law, please con~ct our Customer Service department ~nd let us ~" ,:'; ' k~ow. ~ ~" FCC Regulations '. '~' -. Customer Semite "~r'- . Under secQon 76.309 (3) of ~e FCC's ~gulations, a subscriber must be notified of the following: (I) produ~ and ser- ~.. vices offered; (2) ~ and op~ons for services (including any conditions of subscription to services); (3) insmllaoon and ~;.. service polioira; (4) ins~cOons on h~ m use services; (5) channel pusloons; and (6) billing and complainant pmcedu~s ~'~'~, ( nc ud ng ~e addis and te ephone numar of ~e oca f~nch se author ~'s ~ble o~ce). Item number 6 abo~ must be [?~? ',~. include~ on a subscri~r's mon~ly bill pursuant to Section 76,952 of the FCC re~ladons. Consequently, a se~te . - '. Cusm~ Ha~o~o~ 6 · ' Resolution No. 99-084 Page 67 'InStallation G, aiotenaoce Policies Subscriber Privacy services, you are entitled under Federal Law to know the following: I~sa subscriber to cable .... In order to provide reliable quality service to you and to make sure you are being billed for the services you receive, we keep regular business records relating to you as a subscriber. These records contain personally identifiable informa- '- auditing, and maintaining our service, and to keep legal, financial, accounting, tax, and propert,/records, as well as spedtic . ,. records required by the terms of our cable television franchise. 2) Unless otherwise noted, all personally identifiable information is used only for normal business purposes of offering aed rendering cable service. to you. It is accessible only as needed (which could be on a day to day basis) to cable system employees, con~ractors, installers and sales agents, to install, market. provide and audit cable service and to measure viewership and subscriber satisfaction; businesses which provide services to us (such as our accountants, attorney, billing and collection services); potential purchasers in connection with system sale, tax professionals and bookkeepers to cam- . pile records and file reports; outside auditors to verify records; program guide providers, where applicable; program ser- vices for marketing audit purposes; and representatives of the franchising authority to demonstrate compliance as may be appropriate subject to applicable law. We may also electronically test the system from time to time to determine whether you are being properly billed for the cable service you are receiving. The frequency of disclosure varies accord- mg to business needs. 3) We will mainain information about you as long as we provide service to you and for a reasonable time thereafter in order to comply with applicable laws, for related personally identifiable information will be destroyed when it is no longer needed for the cable-related activities for which it was collected. 4) We will conuder the information we keep to be confidential and may, under Federal law, disclose it to a third party only if (a) you consent in advance in writing or electronically; or lb) disclosure is necessary to render cable service or other services we provide to you and related business activities (as described in paragraph 2 above); (c) disclosure is required pursuant to a court order and you are ~rst notified of and have an opportunity m contest the order or; (d) in accordance with paragraph f~ve below. 5) From dme to time, we may also disclose your name and address for mailing tists and other purposes if we have given you prior opportunity to prohibit or limit such disclosure and you have not done so. We will not disclose the extent of . . ~.:;~;.your viewing or useof a particular service or the nature of any transaction you make over the cable service. If you wish ~ ..'~.'.to remove yo. ur name from such lists or limit the use of your name at any time, please provide written notice to us at ~ your local cable office. The name, address and phone number of your local cable company are reflected on each monthly '; bill. '~.:.i. (6) You have the right to inspect and:request correction of any error in our records that contain information about you -~i.'~,.a. nd to enforce your .rights'by a civil action under Federal law in addition to other remedies that may be av3ilable to you. "~'!;If~you wish to inspec~'~0ur records, please contact us by mail or telephone giving us a reasonable period of time to ~,~1 "ticate, and if necessary, p.~pare the information for review. And to arrange an appointment during regular business hgurs, ~.is haute ~s pray, deal pursuantlie t~e Cab/e Te~.~ Ce~umer PreSort Ac~ of [ 992. II does hal represenl a signifycam thanfie in company pal~'y. · .~_ ha~e always Ireo[ed subscr/be~ ~.i~~ · ~'~' '" , tion which may include your name, spouse's name, phone number, identification card number (such as a driver license -~."~; "~':' '" and/or a sooal security number), credit card information as required for payment of services, records relating to deposits · '. :~'~ (if any), cable service and inscallations aircements, work orders, bifiing and payment information, service opcions you have chosen, the number of television sets in your household connected to our service, and call records relating to service · repairs, maintenance, and collection purposes, programming, marketing, and other cable related aspects of providing, ','~'.. Resolution No. 99-084 Page 68 Comcast is dedicated to providing the most helpful, r&liabl,e;'-a~d ~courteous customer, s_ service you've ever experienced. If you have a proble~i;We reJ~ere:tofsolvej~?,f_.?~b~'..: . , ~ ' ~-~ :'~;', . ~ ~.'.~-'; -, -~'~...~,~i, ,.:~.'X:'~ " Quickly, It's really that simple. And its why we offer'the f6116~dng. Guarantee: .,.".,':,'. ' -~'~'~:' CouF~eous Your telephone calls will be answered promptly and courteously. Convenient You will have the option of a 4-ho~r time period for scheduling installation and service calls. On Time Installation If we're not on time for your scheduled installation appointment, your installation is FREE! On Time Service Appointment ~::.., ~.?..., .... If we're not on time for your scheduled service appointme? we'll credit your account $20.00. ,.:,~:,., .. WE BELIEVE OUR SERVICE WILL EXCEED YOUR Resolution No. 99-084 Page 69 Nhere Io Reech Us City Office Address Phone Ontario 1205 Dupont St. 909/390-4747 San Bernardino 2090 N."D" St. 9091475-5600 F:ontana 8561 Nuevo 909/350-2344 Lompoc 646 North H St. 805/736-3446 Santa Maria 309 W. Main St. Simi Valley 458 Easy Street Santa Ana J830 E. Warner Ave. Fullerton 1501 W. Commonwealth Buena Park 7465 La Palma Newport Beach 901W. 16th St. Seal Beach 13922 ~.Se~.~ ,?~. ach Bl..~f~ Leisure World 13922' Seal Beach BI. ~ 805/925-9504 805/526-5721 714/542-6222 714t680-4070 714/680-4070 714/542-6222 714/542.6222 56~493-5483 Lobby Hours ... 9am-6pm M-F, 9am-5:30pm Sat. ..-... 9am-6pm M-F, Closed Sat. & Sun. ?';;; 9am-6pm M-F, Closed Sat. & Sun. 8am-5:30pm M,T, Th,F, 9am-I pm W' 9am-Ipm Sat., Closed Sun. 8:30am-5pm M,W, Th,F, 9am-5pm Tue. 9am-I pm Sat., Closed Sun. : 8am-5pm M,T,W,E 8am-7pm Th Closed Sat. & Sun. ~ :~ 9am-6pm M-F, 10am-2pm Sat. '.,.'~r. 9am-6pm M-F, 10am-2pm Sat. 9am-6pm M-F, Closed Sat. & Sun~. 9am-6pm M-F, Closed Sac & Sun;* 9am-6pm M-F, Closed Sat. & Sun.'~*~ 9am-6pm M-F, Closed Sat. & *Closed for Lunch 12pm. lpm " CUSTO/vlER HaNDaOOK >"~;' Resolution No. 99-084 Page 70 Resolution No. 99-084 Page 71 CONSUMER SERVICE STANDARDS ENDORSED BY NATIONAL CABLE TELEVISION ASSOCIATION AS SET FORTH IN SECTION ?6.309 (O) OF TITLE 47 OF THE CODE OF FEDERAL REGULATIONS cleral Communlc:cifiom Commission § 76.309 LS0S RequL-ed reoordkeeptnf rains ~or the ordln~ sorlbor. ~:dd. fes, must,.osr~ putpoem. sortbet comple, ln~. &rid ot~er o.) F~oo~vo June IV, 1099, the or o,t &u~y aooemiblo plies of' ever~ M.Me Mlovffdon mu.uit,.y served b~' the o,ysMm ~ rn&tnbstn for publie con~.tnlnf s list or s,11 (euoh so & publie rot~. for, ev~lon sM.~,ono o&n. lod b~' i~ rnen~ or ~n &t, toruo~'*e. T~e pu'oHo lnspeo~on ~e alLell be In fulfillment or t~o du.r- tulremen~ pursu&ut r,o J?6.M. for public tnepeo~on st inf res'~&r bustneBo hours. shall inolude the o&ll o~'n, (~) The records (&) of this section 8h&11 be the period specified in ~, of 11oen~e :, c~blo channel number, m o/' & noncommercial )~O~ o~tiO~, s c~ed by ~o ~blo ~h ~, I~. b) ~e o~mtor of ion ~ctfon the d~i~A~on I~ ~rlncl~ h~end. c) Such r~o~ m~t &ccordance ;.~(b). d) U~n ~t~n son, & ~vide ~e Ust of ~&ph (~) of ;Mn ~ ~ of est. FR 1~, Apr. ~05 ~r of evs~ d~ 1,~ or ~n~n for e for :e ~lt .701 l &nd stemion on Mle- ~blic .1oc~tion mt~!nt~lned of from &n¥ e required to 8~fied In in of su~ ~- mMntaLued lo- operstore for · he oper- television eyetom subscribers sb~11 in~poo~lon I file or ~ ~ w~ kept ~6.~ (~ ~.~o) ~d ~). , ~ ~ kop~ of ~ Mst of ~o ~o~oncy ~ort p~d~s p~u~t ~ of ~ 11 of t~ ch&~ o~l ~ kopt for t~ee of records..~ae public in- on file s~11.be m~int&ined &t the which the system operator rn~in- 76.75, 76.~25(0), 76.601(o), ?6.~01(e), respectively. (d) Re~roductimt o[ Copies of e~y n~t~rtal in ~e l~o~on file sh~l ~ ~v~l&ble ~ne r~ production u~n ~e in ~n, provided the ~Y 8h~ll ~y the duction. ~quoo~ ~no copies 8h~ll be fulfilled by the sys~m wl~n 8on&ble ~rl~ w~ch in no event shell ~ t~ ~von honor ~quooM by do 8o 1~1, 1~ 1~, 1~, 1~, 1~ (4V U.8.C. ~, Feb. 1~; ~ ~ ~ D~. ~, 1~] ,r~tor of & c~ble t~iemdsion m~ke the o~m, file (K ~d lm ~ of lu~ for t~c~on u~n ' &utho~ ~p~n~ of &t ~ ~o~ble ho~, t~ Cm~mer ~ o~U,~Uo~ (~) A ~ble ~c~se au~o~ty e~or~ ~he c~mer ae~ sac for~ In ~ph (c) of tion ~t ~ble o~m~. ~e.~- cMae ~uthorit~ m~t pro~e ~ec~ c~ble o~ra~ ninety (~) d~ ~n notice of i~ intent s~nd~. Resolution No. 99-084 Page 72 § 76.309 (b) Nothin~ in this rule should be construed ~o prevent or prohibit: (1) A ~ranchising authority ~d cable o~r~r ~om tomer cced ~e ~ph (c) of ~s ~on; (~) A ~c~l~ ~u~o~ ~om en- forcid, ~o~h ice req~n~ ~s ~t for~ in section ~ ~ con~ in o~nt ~c~ ~men~; (~) ~ 8~ or ~ ~c~ ~u- tho~ty ~om co~er p~tion ~w, ~ ~ ex~nt not s~ctfi~l~ ~emp~d herin; or (4) ~e ~bB~ent or e~o~ment of ~ that imPsee o~mer not ~ by the s~ set for~ In ~ph (c) of t~s ~tion. ~' (c) Effective J~Y 1, I~S, e~r s~l ~ subject ~ the fo~owl~ cus~mer ~lce (1) C~ble s~m office ho~ ~d ~lephone av~l~btlity-- (l) ~e ~ble loc~, ~ll-~ce or collet ~1 ~lephone acc~ ~ys · week. (A) ~ned ~m~ repr~n~tiv~ ~11 ~ ~v~l~bls ~ ~nd ~ c~ tomer ~lephone inquires d~ nor- m~l b~ine~ ho~. (B) ~r no~ b~in~ ho~, the ac~ line m~ ~ ~we~ by · ~- ice or inclu~ q~ ~ceiv~ ~r no~ busin~ ho~ traln~ ~m~ ~n~ on next busin~ (ii) Un~ ~ o~ ~ndt- t~e, on~ w~n the ~ n~ fer ~lme s~l not e~ ~ty (~) second. ~ i~n~ i~l ~ met no le~ ~ ~ (~) ~,~nt of the time ~der noel o~ti~ con~- tio~, me~ on a queerly b~ls. 47 CFR Ch. I (10-1-96 Edition) (ill) The operator will not be required to acquire equipment or per~orm sur- veys to me~ure compliance with the ~elephone answerin~ itandazd~ above unless ~n historical record of com- pltinf~ indicttoe a clear failure to corn- (iv) Under normal oper~tln~ cendt- ticns, the customer will receive a busy si~.l leM flure. three (9) percent of the time. (v) Customer service center and bill pe,wnent loc~tlons will be open at !e~t duri~ normal btttinesa hours and will be conveniently located. (2) Installations, outage ~ud service c~lls. Under norn~l operatin~ condi- tions, e~ch of the followin~ four et~nd- ~ will be met no less tbem ninety five (95) percent of the time mce~u~d on a q~rly (i) Standard installations will be per- formed within seven (T) business da~re after ~n or~er h-s been placed. ard" insl:all&tions are those th~ are located up to 125 feet fi-om the distribution system. (il) Excludin~ conditions beyond the control of the operator, the c~ble oper- &tor will be~ln workin~ on "service interruptions" promptly and in no event later ~ 24 hours alter the interruption becomes known. The c~ble openttor must be~ln ~ctions to correct other service problems the next busi- ness d,.y all;er notlfic&tion of the serv- ice problem. (ill) The ,,appointment window" teru~tives for installations, service calla, and other inst~tllation activities will be either a specific time or, &t ms.ximum, a four-hour time block dar- ln~ normal business hour~. (The opera- tor may schedule service calls and other lns~ll&tion activities outside of normal bustne~ hours for the conve~ence of the customer.) (iv) An operator may not c&nesl ~n appointment with a customer after the close of business on the busines~ d~y prior t~0 the scheduled appointment. (v) If a c~ble operator representative is runnin~ late for an appointment with a customer and will not be able to keep the appointment ~a scheduled, the customer will be contacted. The pointment will be rescheduled, se nec- essary, at & time which is convenient for the customer, 512 Resolution No. 99°084 Page 73 Fe<~eral Communications Commission (3) Communications between cable operators and cable subscribers- (t) l~otlfic&tione to subscribers- (A) The cable operator shall provide written information on each of the fol- lowing &tens &t the time of install&Men of ser~tce, &t least annually to all sub- scribere, and &t any time upon request: (l) l~roducte and services offered; (~.) Prices a~ud opttuns for prosT&m- rrdnf services and conditions of sub- scriptton to pro~rammin~ and other services; .(3) Instoil&ties and service m~nte- n&nce policies; (4) Instructions on how to use the cable service; (5) Channel positions pro~r&rnrnin~ carried on the system; and, (6) Blllln~ o~nd complaint procedures. includin~ the address and telephone number of the local franchise authority'$ cable office. (It) Customers will be notified of any ch&n~es tn rates, pro~Tamnaing services or channel positions as soon &8 possible in writing. Hotice must be ~iven to subscribers a mlrfimum of thirty (30) days in advance of such changes if the change is within the control of the c~ble operator. In addition, the cable operator shall notify subscribers thirty (30) days in advance o.f any stSmlfic-,nt ch&r~es in the other information re- quired by pa.re~raph (c)(3)(l)(A) of section. Notw~thstending any other provision of Part ?6, & cable operator shall not be required to provide prior notice of any rate change that is the result of a regulatory fee, franchise fie, or any other fee, tax, seeelement, or oh&rue of any kind imposed by any Federal a~ency., Stele, or franchlsin~ authority on the tr~nsaction between the opectot and the subscriber. (ii) Btllinf-- (A) Bills will be cleo. r; concise and understandable. Bills must be fully lieraised, with lterniuLtlous lnclidinf, but not lin~Jted to, basic f~d premium service ch&r~es and equipment ohoriss. Bills will also clearly delineate all %ivity du~n~ the billing period, includ- ing optional charges, rebates and orsti- tle. (B) In case of a blllin~ dispute, the c~ble operator must respond to a writ- ten complaint [roma subscriber within 30 dayB. § 76,400 (tit) l~efundo--Refund checks will be Issued promptly, but no later than ei- ther-- (A) The customer's next billinf cycle followinf resolution of the request or thirty (30) daryl, whichever Is earlier, or (B) The return of the equipment sup- plied by the cable operator if service is '(iv) Oredits--Crodite for service will be issued no later than the customer's next blllinf ~yole foliowinE the deter- ruination that & credit is warranted. (4) Definitions- (i) No.Ml burness ;tour~-Tbe term "normal business hotire" means those hours during which most sLmllor neeess in the community ors open to serve customer~. In all c&sse, "normal businees hours" must include some evenin~ hours at least one night per week and/or some weekend hours. (ii) Normal oper~ti~tg co~ditioa~-.The term "norroll oper&tin~ conditions" me&ns those service conditions which &re within the control of the cable op- erator. Those conditions which ace not within tbe control of the cable tot include, but &re not limited to, nat- ur&l disasters, civil disturb&noes. power oute~ce, telephone network out- ales, and severe or unusual weather conditions. Those conditions which ure ordinarily within the control of the cable operator include, but ore not lied to, specisJ promotions, pey-per- view events, rate increases, re~ulor peak or seasonal demand periods. and maintenance or uPsTads of the cable system. (lit) So.ice interruption--The term "service interruption" means the loss of picttire or sound on one or more cable channels. [88 Fit ~11GO. Apr. 19, 1990, f~ &roestied tt 61 Fit 180~r, Apr. 30, 1~8.400 O!2erttor, mail ad~lfqss. and oporutl'onal status oh~e~ Within 30 daS, s foiling a change of Cable Televisto. n~ ~__~______ ?_m _P,e,_ra_to_r,,, and/ or change of ~ operator's mail dress,-and/o~hangs in the oper~tionAl status of~r~cable te evl ~slon system, the Oper~prtcshall nil erin the Commission i .re'Its ~ng oFthe following, a~ f~ppro- 513 Resolution No. 99-084 Page 74 Resolution No. 99-084 (b) The operator of the cable system shall notify the Commission of the pro- posed extension of the system re~lus in these bands. Notific~tion shall include carrier and subcarrier frequencies, types of modulation, the previously no- tified geo~raphical coordinates, the new system 'radius and the maximum peak power occurring at any loc~tion in the cable distribution system. No system shall extend its rs~lua in these hands without prior Commission au- thorization. (c) The operator of the cable system shall saints, in at its local office a cur- rent listing of all signals carried in these bands, noting carrier ~nd subcar- rier frequencies, types of modulation, and m~v, lmum peak power which oc- curs at any loc~tion within the cable distribution system. (d) The operator of the system shall provide for rerular monitoring of the cable system for signal leakage cover- ing all portions of the came system at least once each calendar year. Monitor* lng equipment and procedures shall be adequate to detect leakage sources which produce field strenwths in these bands of 20 microvolts per meter at a distance of 3 meters. The operator maintain a log showing the chtte location of e~ch leeka~e source fled, the date on which the was eliminated. and the probable c~tnse of' the leakage. The log shall be/kept on file for a period of two (2) ~are. and shall be nutde to authorized ~epresenta- rives of the Commission on~t~equast. (e) All carrier signals o/signal ponents c~pable of d~!lverin~ peak power equal to or ~r~l~ter than watts must be opent~t at frequencies offset from asron~u~dcal radio services operated by Conlllglzelon licensees or by the United S, tltt~ Government or its a~enctee within 111 km (60 n~utic~l miles) of any pbrtton of the cable sys* tem as Wtven/ln pmr~r~ph (f) of this section. (Tb~ limit of 111 km ma~v be incree~ed ~ the Commlseton in cases of "extended zervice volumes" u de- fined by/the Federal Aviation Adminis- tratio~t~ or other federal government a~en~J, for low altitude radio naviga- --tle~/or communic~tion services). If an 01~ ar tor` of a cable systsm is notified ~ the' Corn_m_ lesion that a change in /~peration of an aeronautical radio 47 CFR Ch, I (10-1-96 service will place the cable system conflict with any of the offset the cable system operator is sible for eliminating such cc within 30 days of notific~tion. (19 A minimum frequency be- tween the nominal c~rrier f r of an aeronautical radio qualify- ing under paragraph (d) el Section and the cable system carrier or ~ ca- i~ble of delivering equal to or ~reatsr than watts shall be maintained or at all times. The minimum offsets are as follows: Mindsun h-e- (50.T) ............................................ (100*'T~ table, T is the absolute value of frequency tolerance of the cable signal. The actual frequency will depend on the equipment operating procedures of the cable system, but in no case shall the fre- quency tolerance T exceed +~5 kHz in the bands 10~-136 and 225-400 MHz. [~0 FR 119401, July 19, 198~} §76.630 Compatibility with consumer electronics equipment. (a) Cable system operators shall not scramble or otherwise encrypt sitmale carried on the basic service tier. Re- quests for waivers of this prohibition must demonstrate either a substantial problem with theft of basic tier service or a strong need to scramble basic sig- nals for other reasons. As i~rt of this showing, cable operators are required to notify subscribers by mail of waiver requests. The notice to subscribers must be mailed no later than thirty calend~r days from the date the re- quest waiver was filed with the Com- mission, and cable operators must in- form the Commission in writing, as soon u possible, of that notification date, The notification to subscribers must state: On (date of waiver request was flied with the Commission), (cable operator's name) Federal Commu filed wtl;b ',,,be Perle. mission & request ! hlblMn~ scr~rnbll~ ~ler of service. 47 C for waiver e~tes waiver request). A w~lver is on file fo~ address of the c~hl busin&am). Individuals who reques~ for w~l~er ~he Federal Comet no later ~han ~0 d~., fica~ion wu n~tl{ comments should ~ eral Communlc~l Services Bureau, V should Include the ~or ~o whom the ~ Individuals should comments ~o (~he ~ place of business). Cable operators reply no later ~ date subscriber filed. (h) Cable syetf vide their subsc tern terminal d, tomer premises perares remote ¢ permit the res, devices with c¢ remote control ~ no action that ' vices from bei~ mercially avail unit. Cable syst vised that this them to acttvei control function: equipment whet not operate wit' tion procedure. ( may, however, d trol functions ~ tomer premises quested by the st (c) Cable systl scrambling, encr nologies in conit tern terminal d § 15,3(e) of this ct subscribers' rec~ Ioffer to supply special equipmet simultaneous rec halS. The equip~ cludea sinKle dual descramble~ ere and bypa~ 530 I (10-1-96 Edition) ~e cable system in the offset criteria. .persist is respen- mg such conflict ,if it&lion. · equency offset · .rrier frequency of Jo service qualify- (d) of this Section luency of any cable real component ca- oak power equal to -s watts shall be eded at all times. ency offsets are as .................... (5~-?) kHz~ ~e absolute value of ~.~-- of the cable al frequency ,~e equipment ,~dures of the cable ca~e shall the fre- exceed +_25 kHz in t 225--4(X} MHz. 851 it-/ with cons,,mer )meat. operators shall not me encrypt signals c service tier. Re- of this prohibition ,~ther a substantial ~f basic tier service scramble basic sig- ins. As part of this rators are required s by mail of waiver ~ce to subscribers , later than thirty : the date the re- iled with the Corn- operators must in- Ion in writing, as ,f that notification ~on to subscribers request was filed with ~ble operator's name) Resolution No. 99-084 Federal Communications CommM~on filed with the Federtl Communications Corn- rnlsf~on a request, for w~ of the rule ~"o- hlbl~Sg iOrsfabliS~ of ~a"'~11 on the besic tier of Mr/ice, 4? OFR ITeJ~l(a). ~ request, for wt~vsr i~&tss (s brief mumritz? of the waiver roqu~t). A coi~ of the request for wslyor is on file for public inolMoUon at (the addres of t~o coblo oport~or'e local place of business). IndividuAls who wish ~o comment, on tide r~tuost for wulver should mall comesuM to the IPedortl Communlca~ons Conunleash by no laMr than M da~ ~r~m (the dam ~ noel. fica~loa was mailed t~ enheoribe~). ~ cornmete shoed be addrseeed u~ ~hs: Fed- eral Commuulco~lou C~n~lon, Cable $ervtce~ Bm~au, W~n. DC ~, and should include the name of the cable ~,or ~0 whom t21e comments are al~ltcable. Individuals should also se~d a coPY of their corerneats ~0 (the cable operator a~ its local placo of business). Cable operators may filo common~ in reply no later than 7 days from the date subscriber comments must be filed. (b) Cable system operates that pro- vide their subscribers with cable eye* tern terminal devices and other cue* loser premises equipment that incor-,~ poretee remote control capability shall~ Permit the remote operation of such devices with commorclally available remote control units or otherwise tike no action that would prevent the de- vices from being operated by a corn~ mercially available remote control~ unit. Cable system operators are ad- vised that this requirement obliges them to actively enable the remo~e control functions of customer promLeos equipment where those functions do not operate without a special activa~ lion procedure. Cable system operators may, howevor, disablo the remo~e con- trol functions of & subscriber'8 cus- tomer promises equipment where re-', quested by tho subscriber. - (c) Cable system operators t,hat use scrambling, encryption or similar tech- nolorios in oonJunctlon with cable sys* tern terminal devices, as doffned § l§.~(e) of this chapter, that may affect subscribers' reception of signals shall Forfor to supply each subscriber with special equipment that will enable the [ 8imultansous reception of multiple 8ig- ~ hals. The equipment offered shall in- clude a single terminal device with dual deetremblers;decoders and/or ers and bypass switches. Other equip- § 76.630 sent, such as two independent ee~op terminal devices may be offered at the ~,me t4_,ne that the 81~ie ~ de- Uce ~ d~ t~~ble~ Is offe~. For ~ of ~8 ~le, tw~ ~p devils link~ by a ~n~ol 8ys- ~m ~t ~o~d~ ~ctio~t~ ~va- lent to ~t of a sl~le de~ ~h d~l d~ble~ fs ~de~d ~ ~ the ~e ~ a ~ de~oe ~th dual de~mbl~de~de~. (1) ~e offer of ~cM eq~pment s~l ~ ~e ~ new subs~ at the ~t~ ~y mu~ ~d ~ ~1 subsc~b- e~ at le~t on~ e~h (~) 8~h s~ct~ ~ut~ent ~1, at a ~mm, ~ve the oa~bility: (i) To ~low simui~eo~ ~ception of ~ two ~bled or enc~t~ ~ls ~d ~ ~vide for toninl to ~r- ~2ve c~nels on a pre-p~ed ~heduie; ~d (ii) To allow ~ct reception of all other sills that do no~ need to be processed thro~h de~r~bli~ or deception circui~y (th~ ~pabllity can ~ene~ly be provided tMo~h a se~ate by-~s swish or t~ough in- ~al by-~ ci~uit~ in a cable sys- tem te~tnal device). (~) Cable system o~rato~ shall de- termine the s~clfic equipment needed by indtvtdu~ su~ri~ on a c~e-by- c~e b~fs, in consulriCh with the sub.fiber. Cable system req~red to eke a Wood ~ith effort to provide sube~t~ wi~ the mount and ty~s of s~cial equipment needed ~o resolve their tndividu~ com~tibil- i~y problems. (4) Cable ow~ sh~l provide such equipmen~ at the requ~t of individual subsc~be~ and may ch~e for pur- ch~e or leos of the equipment and tns~laMon in ~cor~n~ with the provisions of the rate relation rules for cus~mer ~mt~ equipment used to receive the b~tc se~ico tier, ~ set forth tn ~6.9~, Notwl~~ the requl~d ~n~l offeri~, cable o~ra* tots s~tl ~s~nd to sub~riber re- quests for s~c[al equipment for rece~- ~ion of multiple signals that are made at any time, (d) Cable system o~rato~ shall pro- vide a consumer education program on compaMbfiitY matters to their sub- scribe~ in writing, ~ follows: 531 Resolution No, 99-084 § 76.701 (1) The consumer information pro- grazn sh~11 be provided to subscribers at the time they first subscribe and at least once a year thereafter. Cable op- erators may choose the time and means by which they comply with the annuaJ consumer information require- ment. This requirement may be s~tis- fled by a onceca,year rnelling to ell subscribers. The infomellon nmy be included in one of the cable eyeleto's teenier subscriber billing. (2) The consumer infornmtion pro- ~Tarn shell include the following infor- mation: (i) Cable system operators stroll in- form their subscribers that some mod- els of 'IV receivers and videocassette recorders may not be able to receive ~ll of the clmnnels offered by the cable system when connected directly to the cable system. In conjunction with this information, cable system operators sh~11 briefly expledn, the types of chan- nel compatibility problems that could occur if subscribers connected their equipment directly to the cable system and offer su~reetions for resolving those prOblems. Such suggestions could include, for example, the use of a cable system termlnel device such as a set- top channel converter. Cable system operators shell also indicate that chan- nel competibility problems associated with reception of pro,ramming that ts not scrambled or encrypted pro~ram- ming could be resolved through use of simple converter devices without descra~nbling or decryption calmbill- ties that can be obtained from either the cable system or a third party retail vendor. (it) In cases where service is received through a cable system terminal de- vice, cable system operators shall indi- cate that subscribers may not be able to use species features and functions of their TV receivers and videocassette recorders, including features that allow the subscriber to: view a pro~rs.m on one chaa~el while simultaneously re- cording a pro~'~m on another channel; record two or more consecutive pro- ~'ams that appear on different chan- nels; and, use ~dvanced picture genera- lion and display features such as "Pic- ture-in-Plcttu~," channel review and other functions that necessitate chan- nel selection by the consumer device. 532 47 CFR Ch. I (10-1-96 Edition) (fit) In cases where cable system op- erators offer remote control cal~btlity with cable syst~'~ terminal devices and other customer premises equipment that is provided to subscribers, they shall advise their subscribers tlmt re- mote control unite that are compeMble with that equipment may be obtained from other sources, such as retail out,- lets. Cable system operators stroll also provide a representative list of the models of remoto control unite cur- rently available from ret,~ilere that are compatible with the customer premises equipment they employ. Cable system operators are required to make a good faith effort in compiling this list and will not be liable for inadvertent omis- sions. This list shall be cu~-Tent as of no more than six months before the date the consumer education pro~razn is dis- tributed to subscribers. Cable operators are also required to encourage sub- scribers to contact the cable operator to inquire about whether a parMcular remoto control unit the subscriber might be considering for purchase would be comi~tible with the subscrib- er's customer premises equipment. NOTE TO §76.630: The provisions of para- /Taphe (a) and (b) of this section ~re applica- ble July 31, 1994, ~nd June 30, 1994. respec- tively. The provisions of paragraphs (c) and (d) of this section are applicable October 31, 1994, except for the requirement under pars. /Taph (c) of this section for cable system op- erators to supply c~ble system ~ermlna/ de- vices with dual tuners (as needed), which is applicable October 31. 1995. The initial offer of special equipment to all subscribers, as re- quirsd under paf~r~ph (c) of this secttom shall be made by October 31. 1994. [59 FR ~342, May 16, 1994, as amended at 61 FR ISS10, &pr. ~6, 1996] ACCESS / § 76.'/01 ~ access eh/a~nel,,. (a) Notwithstandi.9~ 49 U.S.C. 532(b)(2) (Communt~lons Act of 1934, as amended, sectij:~f/612), a cable opera- tor, in accurd~.~e with 47 U.S.C. 532(h) (C[ble Consist Protection and Com- petition A~g of 1992, section 10(a)), may adopt ~ enforce prospetc lvely a writ- ten j~d pub~ l shed pelti cy of prohibiting priamming which, it re~uionably be- ],i~ves dee, cri ebs or depicts sexual or excretory tently offer by conteml (b) A c~b prohibit ming in acc of this sect access pro~q cram provl~ more ch~ subsc~bem ten cogent (c) of t~s (c) A pro~r within ~ d request for that lnclud~ questtn~ su' ye~ old; a hate & subs ~a~ng of a subsc~' (d) A pro~ ce~ on i~entify fo~ in ~aI iuclude ~der ~d ~ 9ro~ couteu~ of o~rmtor m ~iou ~he requmst "live ~hmnnel th. cent must ~o ~ns~e ' will not be will not be of t~s sec~ cent pro~ fled by & D tn (e) A p~owr~ p~owr~ ce~ ~s not decent pro quiremerit lion. A pro~ mtn~" to for~ will Resolution No. 99-084 Page 78 4 Resolution No. 99-084 Page 79 PART IVyMISCELLaNEOUS PROVISIONS Protection of subscriber privacy (a) Notice to subscriber regarding personaUy identifiable information; definitions At the time of entering into an agreement to provide any cable or other service to a subscriber and at least once a year a cable operator shall provide notice in the form of a written statement to such subscriber which clearly and informs the subscriber of-- (A) the nature of personally identifiable information collect- ed or to be collected with respect to the subscriber and the nature of the use of such information; (B) the nature, frequency, and purpose of any disclosure which may be made of such information, including an identifi- cation of the types of persons to whom the disclosure may be made; (C) the period during which such information will be main- rained by the cable operator; · (D) the times and place at which the subscriber may have [access to such information in accordance with subsection (d) of !this section; and ;~' (E) the limitations provided by this section with respect to ~ the collection and disclosure of information by a cable operator and the right of the subscriber under subsections (f) and (h) of ~his section to enforce such limitations. case of subscribers who have entered into such an agreement the effective date of this section, such notice shall be provid- 180 days of such date and at least once a year thereafter. (2) For purposes of this section, other than subsection (h) of tlds section- (A) the term "personally identll~ble information" does not include any record of aggregate data Which dosz'n?,t,.identify particular persons; (B) the term "other service",. includes any w~re or radio communications service provided using any of the faclh'tise of a cable operator that are used in the provision of cable service; and ..... .. (C) the term "cable operator" includes, i~ addition to persons w~thin the defini- tion of cable operator tn a~tion 622 of this title, any person who (i) is owned or controlled by, or under common ovmer~hip or control w~th, a cable operator, and (i~) provides any wire or radio communications service, .,41., lectlon of personally Identifiable information using cable system [] li, F-,xcept as provided in paragraph (2), a cable operator shall ~kfaae the cable system to collect personally identifiable informa- tion concerning any subscriber without the prior written or elec. tronic consent of the subscriber concerned. (2) A cable operator may use the cable system to collect such information in order to-- (A) obtain information necessary to render a cable service or other service provided by the cable operator to the subsc. riber; or (B) detect unauthorized reception of cable communications. (c) Disclosure of personally.identifiable information ~ 1) Except ss provided,in paragraph (2), a cable opera:or shaU not disclose pemonaUy identifiable Laformat~on concernLag a~ty subscriber without the prior ~vitten or electronic consent of the subscriber concerned and shall take such actions ~ are necessary to prevent tmauthorged ~ce. ss. to s. uch information by a person other tha~ the subscriber or cable operator, . ... . (2) A cable operator may disclose such information if the disclo- sure is- (A) necessary to render, or conduct a legitimate business activity related to, a cable service or other service provided by the cable operator to the subscriber; (B) subject to subsection (h) of this section, made'pursuant to a court order authorizing such disclosure, if the subscriber is notified of such order by the person to whom the order is directed; or (C) a disclosure of the names and addresses of subscribers to any cable service or other service, if- (i) the cable operator has provided the subscriber the opportunity to prohibit or limit such disclosure, and (ll) the disclosure does not reveal, directly or indirectly, tile- (l) extent of any viewing or other use by the sub- scriber of a cable service or other service provided by the cable operator, or (II) the nature of any transaction made by the sub- scriber over the cable system of the cable operator. (d) Subscriber access to information A cable subscriber shall be provided access to all personally identifiable information regarding that subscriber which is collect- ed and maintained by a cable operator. Stich information shall be made available to the subscriber at reasonable times and at a convenient place designated by such cable ope/'ator. A cable sub-./ scriber shall be provided reasonable opportunity to correct any error in such information. Destruction of information .(~,able operator shall destroy personally identifiable information ,,.~lle information is no longer necessary for the purpose for which ~eas collected and there are no pending re uests or orders for ,~! q ':.gcess to such information under subsection (d) of this section or ~.l~rsuant to a court order. ~ Civil action In United States district court; damages; attorney's fees : and costs; nonexclusive nature of remedy (1) Any person aggrieved by any act of a cable operator in ~01ation of this section may bring a civil action in a United States ~'tri c t court. (2) The court may award-- (A) actual damages but not less than liquidated damages computed at the rate of $100 a day for each day of violation or $1,000, whichever is higher; (B) punitive damages; and (C) reasonable attorneys' fees and other litigation costs rea- sonably incurred. (3) The remedy provided by this section shall be in addition to ~ny other lawful remedy available to a cable subscriber. Resolution No. 99-084 Page 80 [g) Regulation by States or franchistng authorities Nothing in this subchapter shall be construed to prohibit any State or aF~y franchising authority from enacting or enforcing laws consistent with this section for the protection of subscriber privacy. {h) Disclosure of information to governmental entity pursuant to court order A governmental entity may obtain personally identifiable infor- mation concerning a cable subscriber pursuant to a court order only if, in the court proceeding relevant to such court order-- (I) such entity offers clear and convincing evidence that the subject of the information is reasonably suspected of engaging in criminal activity and that the information sought would be material evidence in the case; and (2) the subject of the information is afforded the opportunity to appear and contest such entity's claim. Resolution No. 99-084 Page 81 Resolution No. 99-084 Page 82 §~53051 Note 1 ant m~ght base either a request to the agency for k. ave to file a late claim or a petition to court ior an order relievmg him from the claim-filing requirement. Wilson v. San Francisco Redevel- opment Agency (1977) 138 CaI.Rptr. 720, [9 Cal.3d 555, ,564 P.2d 872. One of the probable legislative purposes un- din'lying § 946.4 excusing failure to present claim if public entity has not supplied correct and complete informanon to the roster of public agencies is to assure compliance by such public emilms. Wilson v. San Francisco Redevelop- mere Agency (1977) 138 CaI.Rptr. 720, 19 Cal.3d 555, 56a P.2d 872. If redevelopment agency against which plain- lifl broughl action for personal injuries failed to comply with this section plaintiff was excused h'om compliance with § 911.2 requiring filing claim with appropriate public agency within 100 days, though he untimely filed a claim with ~l~c proper agency at its correct address and did not allege that he was deceived or confused by the agency's noncompliance. Wilson v. San Francisco Redevelopment Agency (1977) 138 CaI.Rptr. 720, 19 Ca].3d 555, 564 P.2d 872~ Clmmant who has actually presented claim to proper pubitc entity may not excuse compliance ~ith clamps ~tatute and circumvem special six. monlh statute of limitations contained m '~ 945 b bv invoking this section requiring pub- hc entity to file information and § 9464 obviat- CITIES, COUNTIES, & OTHER AGENCIES Title 5 ing need for presentation of claim where public agency fails to file such information. Tubbs v. Southern California Rapid Transit Dist. (1967) 63 Ca[.Rptr. 377, 67 Cal.2d 671,433 P.2d 169. 2. Purpose of law Purpose of this section was to provide means for identifying public agencies and names and addresses of designated officers needed to en- able or assist person to comply with applicable claims procedure. Tubbs v. Southern Califor- nia Rapid Transit Dist. (1967) 63 CaI.Rptr. 377, 67 Cal.2d 671,433 P,2d 169, 3. Public agency Requirement of this section that public agen- cies file certain information with secretary. of slate and county clerk do not apply where sub- division of public agency operates under ficti. tious name and conducts business off its premis- es. Hovd v. Hayward Unified School Dist. (App. I Dist. 1977) 141 CaI.Rptr. 527, 74 Cal. App.3d 470. Vocational skills center was not "public agen- cy" within meaning of sections of Government Code requiring public agencies to file certain information w~th Secretary of State and count?. clerk, since il was a subdivision of a district, Hovd v Hayward Unified School Dist (App. 1 Dist. 1977) 141 CaLRptr, 527, 74 CaiApp.3d 470. § 53052. Repealed by Stat$.1965, c. Historical and The repealed section, added by Stats. 1963, c. 1805. p. 3650. § 2. related to contents of roster. ~cquired the maintenance of a roster index. and declared the roster to be a public record. Former § 53052, added by Stats. t949, c~ 81. p. 255, § 1. amended by Stats. 1959, c. 1715, p. 653, p. 2020, § 33 Statutory Notes 4121, § 4, relating to time of filing and (orm of a claim for damages, was repealed by Stats. 1963, c. 1681, p. 3286, § 18. See Government Code ~ 905, 911,2. For applicability of Stats~ 1963, c. 1681, p. 3267, see Historical and Statu- tory. Notes under Government Code § 810. § 53053. Repealed by Stats. 1959, c. Historical and The repealed section, added by Stats. 1949. c. 81, p. 285, § I, related to contents of a claim for damages. See Government Code § 910. 1715, p, 4116, § 1 Statutory Notes - Article 3.5 CABLE TELEVISION AND VIDEO PROVIDER CUSTOMER SERVICE AND INFORMATION ACT Section 53054 Short title. 53054.1. Findings and declarations. 12 i GENERA] Div. 2 Section 53054.2. 53055. 53055.1. 53055.2. 53055.3. .53056. F 53057. § 53054. This act Provider C~ (Added by S: Former § 5 § 1, relating § 53054.' The Legi.. (a) In an should get t ensure this that custom (b) Cable quality se~ continue tc developmet (c) It is service, but customers ~ these custor (Added by St; § 53054.2 As used ir (a) "Cabh television se (b) "Cabh under comn contiguous t (c) "Vide~ one or mort NCIES Title 5 'e pubhc Tubbs ;' (1967) '.2d 169. roes and d to en- :~piicablc Califor- ptr. 377. lic agen- etary of Act ficti- · premis- ,ol Dist 74 Cal Jorm of w Stats crnment of Stats .d Statu- ~0 IER Resolution No. 99-084 GENERAL POWERS & DUTIES DIv. 2 Section 53054.2. 53055. 53055.~. 53055.2 53055.3 53056. 53057. § 53054.2 Definitions. Customer service standards. Notice of customer service standards. Compliance with customer service standards; annual report. Construction of article. Failure to distribute annual notice; penalties; notice of failure to distribute prior to imp'~sition of penalty. Repealed. Article 3.5 was added by Stats.1992, c. 262 (S.B.1010), § 1. § 53054. Short title This act shall be known and may be cited as the Cable Television and Video Provider Customer Service and Information Act. (Added by Stats. 1992, c. 262 (S.B.IOI0), § Historical and Statutory Notes Former § 53054, added by Stats. t949, c. 81. by Stats.1963, c, 1681, § 18. See Government § I, relating to de[ense counsel. wits repeated Code §~ 995,996. § 53054.1. Findings and declarations The Legislature finds and declares all of the following: (a) In an unregulated environment, customers of cable and video providers should get their money's worth for the service they subscribe to, and one way to ensure this is to encourage that customer service standards be established and that customers be informed to those standards. (b) Cable television and video providers have made efforts to provide high- quality service to their customers, Cable television and video providers should continue to establish standards for customer service so as to further the development of high-quality customer service. (c) It is not the intent of this article to establish standards for customer service, but to encourage cable television and video providers to inform their · customers about the standards they have established and to work to achieve these customer service goals. (Added by Stats. 1992, c. 262 (S.B.1010), § ~.) § 53054.2. Definitions As used in this article: (a) "Cable television operator" means the person or entity providing cable television services through the cable television system. (b) "Cable television system" means a community antenna television system, under common ownership and control, serving a franchise area or two or more contiguous or electronically connected franchise areas. (c) "Video provider" means any person, company, or service which provides one or more channels of video programming to a residence, including a home, 13 Resolution No. 99-084 ~.53054.2 CITIES, COUNTIES, & OTHER AGENCIES Title 5 'condominium, apartment, or mobilehome, where some fee is paid, whether directly or as included in dues or rental charges, for that service, whether or not public rights-of-way are utilized in the delivery of the video programming. A "video provider" shall include, but not be limited to, providers of cable television, master antenna television, satellite master antenna television, direct broadcast satelJite, multipoint distribution service, and other providers of video programming, whatever theirnechnolo~,. (Added by Stats. 1992, c. 202 ($.B.1010), § I3 § 53055. Customer service standards Each cable television operator or video provider in the state shah establish customer service standards. These customer service standards shall include, but not be limited to, standards regarding the following: Ca) Installation, disconnection, service and repair obligations, employee iden- tification and service call response time and scheduling. (b) Customer telephone and office hours; procedures for billing, charges, refunds, and credits. (c) Procedures for termination of service. (d) Notice of the deletion of a programming service, the changing of channel assignments, Or an increase in rates. (e) Complaint procedures and procedures for bill dispute reso[ution. (Added by Stats. 1992, c. 262 (S.B.1010), § Historical and Statutory Notes Former § 53055, added by Stats. 1949. c. 81, ing to payment of, or compromise of, claims. § I, derived fromStats. 1931, c. tl67,§ 4. relal- was repealed bySta~s.1963, c. 1~8[, § 18. § 53055.1. Notice of customer service standards (a) Each cable television operator or video provider shall annually distribute to employees, to each customer, and to the city, county, or city and county in which the cable television operator or video provider furnishes service to customers, a notice describing these customer service standards. New custom- ers shah also be provided with this notice when service is initiated. (b) The notice given to new customers pursuant to this section shall include, in addition to all of the information described in subdivisions (a) to (e), inclusive, of Section 53055, all of the following: (1) A listing of the services offered by the cane television operator or video provide_r which clearly describes alt levels of service, and including the rates for each leveI of service, provided that, if the information concerning levels of service and rates is otherwise distributed to new customers upon installation by ~'he'cable television operator or video provider, the information need not be included in the notice to new customers required by this section. (2) The telephone number or numbers through which customers may sub- scribe to, change, or terminate service, request customer service, or seek general or billing information. ]4 GENERA Div. 2 (3) A ~ operator television service st. (Added by § 53055 After tl- have bee provider operator dards. T 53055.1. (Added by § 5305~ No pro' city, cour are conta ~ideo pro law for ot (Added by § 5305{ (a) The cable tele by ordim television Section 5 which tht (b) The or video customer penalty p provider the notict no penal provider i (Added by Former .q p 285. § 1, 5275, § 4. r Resolution No. 99-084 GENERAL POWERS & DUTIES § 53056 Div. 2 (3) A description of the rights and remedies which the cable television operator or video provider may make available to its customers if the cable television operator or video provider does not materially meet its customer service standards. (Added by Stats. 1992, c. 262 (SB.1010), § 1.) § 53055.2. Compliance with customer service standards; annual report After the customer service standards established pursuant to Section 53055 have been in effect for one year, each cable television operator and video provider shall report annually on the performance of that cable television operator or video provider with regard to meeting its customer service stan- dards. This report shall be included in the annual notice required by Section 53055.1. (Added by Stats.1992, c. 262 (S.B.1010), § 1.) § 53055.3. Construction of article No provision of this article shall be construed to preempt the prerogative of a city, county or city and county to enforce customer protection standards that are contained in a franchise or license granted to a cable television operator or video provider pursuant to Section 53066.1 or that are otherwise authorized by law for other cable television operators or video providers. (Added by Stats. 1992. c. 262 (S.B,1010), § 53056. Failure to distribute annual notice; penalties; notice of failure to distribute prior to imposition of penalty (a) The legislative body of the city, county, or city and county in which the cable television operator or video provider furnishes service to customers may. by ordinance, provide a schedule of penalties for the failure of the cable television operator or video provider to distribute the annual notice required by Secti.on 53055. t, not to exceed five hundred dollars ($500) for each year in which the notice is not distributed to all customers. (b) The city, county, or city and county shall give a cable television operator or video provider written notice of any alleged failure to distribute to all customers the annual notice required by Section 53055.1 before imposing an5' penalty pursuant to subdivision (a). If the cane television operator or video provider distributes this notice to all customers within 60 days after receipt of the notice from the city, county, or city and county pursuant to this subdivision, no penalty shall be imposed upon the cable television operator or video provider pursuant to subdivision (a). (Added by Stats1992, c. 262 (S.B.1010), § l.) Historical and Statutory Notes Former § 53056, added by Stats. 1949, c, 81, was repealed by Stats,19o3, c. 1681, ~ 18 See p. 285, § 1, amended by Stats 1959, c. 2[67, p. Government Code§ 990. 5275, § 4, relating to insurance against liability, 15 Resolution No. 99-084 Page 87 Resolution No. 99-084 § 5308?.4 CITIES, COUNTIES, & OTHER.AGENCIES Tide 5 ~ (d) This section shal! not apply to any special tax levied prior.to the. effective ; ~' ', date of this section. ~' (Added by Stats.1996, c. 1125 (A.B.188), § 1.) § 53087. Private property; seismic safety improvements; public finant- :,: lng; notice to lienhoider~ "" A loan or expenditure of funds by a local public entity, including a charter city, to upgrade or improve privately owned property for purposes of seismic safety or retrofitting, where the provision of funds creates or. ca~ create a lien '. on the property, shall not, when combined with existing liens on t~e property, exceed 80 percent of the current appraised value of the property, as determined by an independent, certified appraiser, unless the existing lienholders consent in writing to a higher loan-to-value ratio. Notice of the intention to provide financing to the owner of the property shall be given to existing lienholders of record not less than 30 days prior to any vote of the local agency authorizing the provision of financing to the owner of the property. (Added by Stats. 1995, c. 385 (S.B.1010), § 1.) . ~.r-'!. Historical and Statutory Notes : "~" Section 4 of Stats.1995, c. 385 (S.B.1010), title and liens in order to make economic deci- sions affecting their investment· Government provides: agencies, like private parties, should not be per- "The Legislature hereby finds and declares as mitred to create liens that would jeopardize the follows: security of existing lienholders merely to ira- "The creation and priority of liens on proper- prove for seismic retrofit purposes privately ' L '. · ty is of statewide concern. Property owners, owned property without the consent of the prior purchasers. and lenders must know the status of lien holders." ' Article 4.5 VIDEO CUSTOMER SERVICE ACT Section 53088. Short title· 53088. i. Definitions. . 53088.2. Duties of video providers: disclosure of customer information: dispute resolu- tion procedures; authority to schedule penalties. Article 4.5 was added by Stats.1992, c. I198 (A.B.2388), § 1. Former Article 4.5, Compensation of Elective and Appointive Officers During War, added as Article 4 by Stats.1951, c. 1370, p. 3282. § I, renumbered Article 4,5 and amended by Stats.196I, c. 84, p. I086, § 35, consisting of former §§ 53070, 5307I~ was repealed by Stats.1970, c· 1513, p. 3014, § 62.5. § 53088. Short title This article shall be known and may be cited as the Video Customer Service Act. (Added by Stats. t992, c. 1198 (A.B.2388), § 1.) 68 Resolution No. 99-084 D~ RQ ,~'GENERAL POWERS & DUTIES § 53088.2 § 53088.1. Definitions (a) "Video provider" means any person, company, or service which provides one or more channels of video programming to a residence, including a home, condominium, or apa~ment where some fee is paid, whether directly or as included in dues or rental charges, for that se~ice, whether or not public fights-of-way are utilized in the delive~ of the video programming. A "video provider" shall include, but not be limited to, providem of cable television, master antenna television, satellite master antenna television, direct broadcast satellite, multipoint distribution se~ices, and other providers of video program- ming, whatever their technology. A video provider shall not include a landlord providing only broadcast video programming to a single-family home or other residential dwelling consisting of four units or less. (b) "Material breach" means any substantial and repeated failure to comply with the consumer se~ice standards set forth in Section 53088.2. (Added by Stats. 1992, c. 1198 (A.B.2388), ~ 1.) ~ 53088.2, Duties of video providers; disclosure of customer information; dispute resolution procedures; authority to schedule penal- ties (a) Eve~ video provider shall render reasonably efficient service, make repairs promptly, and interrupt se~ice only as necessao'. (b) All video provider personnel contacting subscribers or potential subscrib- ers outside the office of the provider shall be clearly identified as associated with the video provider. (c) At the time of installation, and annually thereafter, all video providers ~hall provide to all customers a written notice of the programming offered, the prices for that programming, the provider's installation and customer se~ice policies, and the name, address, and telephone number of the local franchising authority. (d) All video providers shall have knowledgeable, qualified company repre- sentatives available to respond to customer telephone inquiries Monday through Friday, excluding holidays, during normal business hours. (e) All video providers shall provide to customers a toll-free or local tete- phone number for installation, and se~ice, and complaint calls. These calls shall be answered promptly by the video providers. The cid, county, or city and coun~ may establish standards for what constitutes promptness. (~ All video providers shall render bills which are accurate and understanda- r (g) All video provide~ shall respond to a complete outage in a customer's promptly. The response shall occur within 24 hours of the reporting of outage to the provider, except in those situations beyond the reasonable of the video provider. A video provider shall be deemed to respond to a ~lete outage when a company representative arrives at the outage location 24 hours and begins to resolve the problem. 69 R¢solutio~ No. 99 Pac § 53088.2 CITIES, COUNTIES, & OTHER AGENCIES Title 5 (h) All video providers shall provide a minimum of 30 days' written notice before increasing rates or deleting channels. All video providers shall make every reasonable effort to submit the notice to the city, county, or city and county in /advance of the distribution to customers. The 30-day notice is waived if the increases in rates or deletion of channels were outside the control of the video provider. In those cases the video provider shall make reasonable efforts to provide customers with as much notice as possible. (i) Every video provider shall allow every residential customer who pays his or her bill directly to the video provider at least 15 days from ~he-date the bill for services is mailed to the customer, to pay the listed charges unless otherwise agreed to pursuant to a residential rental agreement esfablishing tenancy. Customer payments shall be posted promptly. No video provider may termi- nate residential service for nonpayment of a delinquent account unless the video provider furnishes notice of the delinquency and impending termination at least 15 days prior to the proposed termination. The notice shall be mailed, postage prepaid, to the customer to whom the service is billed. Notice shall not be mailed until the 16th day after the date the bill for services was mailed to the customer. The notice of delinquency and impending termination may be part of a billing statement. No video provider may assess a late fee any earlier than the 22nd day after the bill for service has been mailed. (j) Every notice of termination of service pursuant to subdivision (i) shall include all of the following information: (1) The name and address of the customer whose account is delinquent. (2) The amount of the delinquency. (3) The date by which payment is required in order to avoid termination of service. (4) The telephone number of a representative of the video provider who can provide additional information and handle complaints or initiate an investiga- tion concerning the service and charges in question. ,Service may only be terminated on days in which the customer can reach a representative of the video provider either in person or by telephone. (k) Any service terminated without good cause shall be 'restored without charge for the service restoration. Good cause includes, but is not limited to, failure to pay, payment by check for which there are insufficient funds, theft of service, abuse of equipment or system personnel, or other similar subscriber actions. (l) All video providers shall issue requested refund checks promptly, but no later than 45 days following the resolution of any dispute, and following the return of the equipment supplied by the video provider, if service is terminated. (m) All video providers shall issue security or customer deposit refund checks promptly, but no later than 45 days following the termination of service, less any deductions permitted by law. (n) Video providers shall not disclose the name and address of a subscriber for commercial gain to be used in mailing lists or for other commercial purposes not reasonably related to the conduct of the businesses of the video 70 t't,O A ,,, 'I Resolution No. 99-084 ..'~2~!ERAL POWERS & DUTIES § 53088,2 '~roviders or their affiliates, unless the video providers have provided to the ;,,~ab$criber a notice, separate or included in any o~er customer notice, that ~,~learly and conspicuously describes the subscriber s ability to prohibit the ?,, ,~-disclosure. Video providers shall provide an address and telephone number for · ?~i~'a' local subscriber to use without toll charge to prevent disclosure of the '~': subscriber's name and address. ~' . (o) Disputes concerning the provisions of this article shall be resolved by the :""' city, county, or city and county in which the customer resides. For video providers under Section 53066, the franchising authority shall resolve disputes. A|I other video providers shall register with the city in which they provide service or, where the customers reside in an unincorporated area, in the county in which they provide service. The registration shall include the name of the company, its address, its officers, telephone numbers, and customer se~'tce and complaint procedures. Counties and cities may charge these other video providers operating in the state a fee to cover the reasonable cost of administer- ing this division. (p) Nothing in this division limits any power of a city, county, or city anti county or video provider to adopt and enforce service standards and consumer protection standards which exceed those established in this division· (q) The legislative body of the city, county, or city and county, may, by ordinance, provide a schedule of penalties for the material breach by a provider of subdivisions (a) to (n),~ inclusive. No monetary penalties shall be assessed for a material breach where the breach is out of the reasonable control ;.'.'. of the video provider. Further, no monetary penalties may be imposed prior to .'..~71;' the effective date of this section. Any schedule of monetary penalties adopted .~;,. pursuant to this section shall in no event exceed two hundred dollars ($200) for "-~."(; each day of each material breach, not to exceed six hundred dollars ($600) for 't~:. each occurrence of material breach. However, where a material breach of any of subdivisions (a) to (n),~ inclusive, has occurred and the city, county, or city and county has provided notice and a fine or penalty has been assessed, in a ffent material breach of the same nature occurring within 12 months, the may be increased by the city, county, or city and county to a ~aximum of four hundred dollars ($400) for each day of each material breach, ]~ot to exceed twelve hundred dollars ~$1,200) for each occurrence o~ the ~laterial breach. Where a third or further material breach of the same nature within those same 12 months, and the city, county, or city and county notice and a fine or penalty has been assessed, the penalties may increased to a maximum of one thousand dollars ($1,000) for each day of material breach, not to exceed three thousand dollars ($3,000) for each of the material breach. With respect to video providers subject to a or license, any monetary penalties assessed under this section shall be dollar for dollar to the extent any liquidated damage or penalty of a current cable television ordinance, franchise contract, or license imposes a monetary obligation upon a video provider for the same service failures, and no other monetary damages may be assessed. this section shall in no way affect the right of franchising authorities 71 i Resolution No. 99°084 § 53088.2 CITIES, COUNTIES, & OTHER 'AGENCIES~ Title $t; concerning assessment or renewal of a cable television franchise under thel provisions of the Cable Communications Policy Act of 1984.: (r) If the 'legisJative body of a city, county, or city and county adopts a': schedule of monetary penalties pursuant to subdivision (o),a the following,. procedures shall be followed: (1) The city, county, or city and county shall give the video provider written notice of any alleged material breaches of the consumer service standards of this division and allow the video provider at least 30 days from receipt~f the, notice to remedy the specified breach. (2) A material breach for the purposes of assessing penalties shall be deemed' to have occurred for each day, following the expiration of the period specified in paragraph (1), that any material breach has not been remedied by the video provider, irrespective of the number of customers affected. (s) Notwithstanding subdivision (m),4 or any other provision of law, this section shall not preclude a party affected by this section from.utilizing any judicial remedy available to that party without regard to this section. Actions taken by a local legislative body, including a franchising authority, pursuant to this section shall not be binding upon a court of law. For this purpose a court of law may conduct de novo review of any issues presented. (t) If any provision of this act or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. (u) This section shall become operative on September 1, 1993. (Added by Stats.1992, c. 1198 (A.B.2388), § I, operative Sept. 1, 1993. Amended by Stats. 1994, c. 384 (SB.1941), § I.) ~ $o m enrolled bill. See subdivisions (a) to (p). 247 U.S.C.A. § 521 eL seq. 3 So in enrolled bill. See subdivision (q). ,s So in enrolled bill. See subdivision Article 4.6 CONSUMER CONTRACTS: CABLE TELEVISION Legislative findings and declaration. Fee for delinquent payment of cable TV services; conditions. Maximum amount o£ fees; FCC requirements. Application of article. Article 4.6 was added by Stats. 1996, c. 666 (S.B.610), § 1. Section 53088.5. 53088.6. 53088.7. 53088.8. § 53088.5. Legislative findings and declaration The Legislature hereby finds and declares as follows: (a) It is a common practice in the sale or lease of cable television services for a fee to be imposed upon a consumer's failure to make full and timely payment of periodic charges for those services. 72 ~venl .'l~itly .a c "~g ~e .~fiency ' No~ for any followi~ time t~ is prov on dell (b) if a cor after (c) loth (d) the (e) ($10). (Added Resolution No. 99-084 Page 93 Cal. Civil Code Section 1722. Resolution No. 99-084 Page 94 (b) ( 1 ) Cable television companies shall inform their subscribers of their right to service connection or repair within a four-hour period, if the presence of the subscriber is required, by offering the four- hour period at the time the subscriber calls for service connection or repair, or by notifying their subscribers by mail three times a year of this service. Whenever a subscriber contracts with a cable television company for a service connection or repair which is to take place at a later date, and the parties have agreed that the presence of the subscriber is required, the cable company. shall specify, prior to the date of service connection or repair, the time for the commencement of the'four-hour period for the service connection or repair if the subscriber requests. (2) If the service connection or repair is not commenced within the specified four-hour period, except for delays caused by unforeseen or unavoidable occurrences beyond the control of the com- pany, the subscriber may bring an action in small claims court against the company for lost wages, expenses actually incurred or other actual damages not exceeding a total of five hundred dollars ($500). (3) No action shall be considered valid if the subscriber was not present at the time, within the specified period, that the company attempted to make the service connection or repair. (4) In any small claims action, logs a.nd other business records maintained by the company or its agents in the ordinary course of business shall be prima facie evidence of the time period specified for the commencement of the service connection or repair and the time that the company or its agents attempted to make the service connection or repair, or of a diligent attempt by the company to notify the subscriber of a delay caused by unforeseen or unavoidable occurrences. (5) It shall be a defense to the action if a diligent attempt was made to notify the subscriber of delay caused by unforeseen or unavoidable occurrences beyond the control of the company or its agents, or the company or its agents were unable to notify the subscriber because of the subscriber's absence or unavailability during the four-hour period, and, in either instance, the cable television company com- menced service or repairs within a newly agreed upon two-hour period. (6) No action shall be considered valid against a cable television company pursuant to this section when the franchise or any local ordinance provides the subscriber with a remedy for a delay in com- mencement of a service connection or repair and the subscriber has elected to pursue that remedy. If a subscriber elects to pursue his or her remedies against a cable television company under this section, the franchising or state or local licensing authority shall be barred from imposing any fine, penalty, or other sanction against the company, arising out of the same incident. Copyrigh( 1997 Jonathan L Kramer(818) 344 5100 EXHIBIT C Resolution No. 99-084 Page 95 DESCRIPTION OF THE Please... ~ Read ~ Handle ~ Approve And... /~ Forward FRANCHISE SERVICE AREA To.' L ~ p~.,.~ Keep or Recycle ------._ ~ Review with Me 79Ci19 11131-00001 SyC 0593892 0 C-1 Resolution No. 99-084 Page 96 EXHIBIT F SUPPORT OF LOCAL CABLE USAGE I . EDUCATIONAL AND GOVERNMENTAL ( "EG" ) ACCESS CHANNELS A. Channel 3. 1. Upon the effective date of this Agreement, Grantee will make available to Grantor, at no cost to Grantor, one channel (Channel 3) for the exclusive use of the City, or its designee, for noncommercial educational and governmental access purposes. The use of Channel 3 will be under the exclusive control of the Grantor and subject to such rules and regulations as the Grantor may establish. 2. Upon the Grantor's request from time to time, Grantee will provide to Grantor reasonable assistance in connection with the operation and programming of Channel 3. 3. If relinquishment of Channel 3 is mandated under federal law, Grantee must do the following: (i) provide Grantor with advance written notice of such federally mandated relinquishment; (ii) make available to Grantor another access channel on the basic service tier; and (iii) reimburse the Grantor for costs and expenses incurred for the purchase or modification of equipment, for logo changes, and for advertising changes that are necessitated by the change in access channel designation. Additional Access Channel Capacity. 1. Not later than three months after Grantee's receipt of written notice from Grantor that an additional EG channel is required, Grantee will make available to Grantor on its basic service tier, and at no cost to Grantor, one additional channel for local educational and governmental programming. 2. At such time as the two EG access channels are each cablecasting not less than 60 hours of nonduplicative programming per month for a period of three consecutive months, and not later than three months after Grantee's receipt of written notice from Grantor that an additional access channel is required, Grantee will make available to Grantor on its basic service tier, and at no cost to Grantor, one additional channel for public, educational, or governmental programming, as may be determined by the Grantor. 3. Additional access channels will be made available by Grantee to Grantor in accordance with the procedures specified above in paragraph 2; provided, however, that all then- existing access channels are each cablecasting not less than 60 990317 i123i C0001 SyC 0593892 3 - F-i - Resolution No. 99-084 Page 97 hours of nonduplicative programming per month for a period of three consecutive months. 4. If Grantor elects to provide a public access channel, the parties will in good faith negotiate the guidelines and rules that relate to the use of the public access channel for local programming and the use of Grantee's local studio for the production of that local programming. C. Restrictions. 1. All arrangements to broadcast programming on the EG channels, whether live, tape-delayed, or direct, are subject to the approval of the Grantor, and any material change in the use of the EG channels by any person will require the written approval of the Grantor. The Grantor may require that any user of the EG access channels give written notice to the Grantor of any arrangements concerning programming or other matters related to the use of that channel. '2. The Grantor reserves the right to delegate the operation and management of the EG access channels to such individuals or entities as it may select, all of whom must comply . with federal, state, and local laws and regulations. 3. Grantee will not assume control of, nor remove from the Grantor's control, any of the EG access channels without the Grantor's prior written consent, and without compliance with all applicable rules and regulations of the FCC. Grantor's written consent will not be unreasonably withheld or denied. SiGnal Oualit¥ for PEG Access Channel CablecastinG. The signal quality for all PEG access channel cablecasting conducted by Grantee will be in compliance with the FCC's technical standards and will be comparable to, or of higher quality than, other programming carried on the Grantee's cable system. Where a signal carried on a PEG access channel does not originate with the Grantee, the Grantee must not materially degrade that signal as it is broadcast over Grantee's cable system. Grantee SUDDort of PEG Access Channels. Not later than January 31 of each year during the term of this Agreement, commencing in 2000, Grantee will pay to Grantor an amount equal to $1.00 for each subscriber that was connected to the cable television system at the end of the prior calendar year. This grant will be used by Grantee for facilities, equipment, and operating costs relating to the PEG access channel or channels. Resolution No. 99-084 Page 98 Fees. Pavments bV Grantee: No Offset Acainst Franchise The parties acknowledge and agree that the payments, grants, or contributions of Grantee, and the value of the services, equipment, facilities, resources, or other support to be provided or performed by Grantee in connection with the educational and governmental access channels as specified in this Exhibit F, do not constitute, and will not be offset against, franchise fees that are payable by Grantee to Grantor. Interconnection with Other Local Cable Systems. Upon the Grantor's written request, Grantee will make available to other operators of franchised cable systems within the City the PEG access channels of its cable system to ensure that the programming on those channels is available to all subscribers within the City. Grantee will make the Grantor's PEG access channels available for interconnection at a point of presence, such as a fiber node, where no unreasonable signal degradation will occur. Grantee wil! not be responsible for any costs and expenses incurred by another franchised cable operator in making the interconnection with that point of presence. Similarly, upon the Grantor's written request, Grantee will accept PEG access programming from the operators of other franchised cable systems in the City at a mutually acceptable point of presence. II. LOCAL PRODUCTION STUDIO. General Reauirements. 1. Grantee will, at no cost to its subscribers or to Grantor, maintain its fully operational production studio in the City of Ontario, adjacent to the franchise service area, that is available for use, as required, for the purpose of producing programming to be cablecast over the cable television system. That' use will be scheduled and coordinated by Grantee. 2. Access to the local production studio will be provided by Grantee without charge to bona fide users, as defined below, subject to the conditions on its use that may be agreed upon in accordance with paragraph B below. The term "bona fide user" means the following: (a) A "bona fide educational user" means an individual who is an authorized representative of an educational institution located within the City of.Rancho Cucamonga (b) A "bona fide governmental user" means an individual who is an authorized representative of the Grantor. 3. Notwithstanding any provisions of this Agreement to the contrary, the obligation of the Grantee to maintain the 99C31~ ii~31 ©DOO1 s¥c 0593892 3 F-3 Resolution No. 99-084 Page 99 local production studio referenced above in Section 1 will be subject to renegotiation at such time as current cable television franchise agreements expire in the Cities of Ontario, Upland, and Montclair. B. Guidelines and Rules. Grantor and Grantee may mutually agree upon guidelines and rules that relate to (i) the use of PEG access channels; and (ii) the use of the local production studio. When adopted, those guidelines and rules may be attached as Schedule 1 to this Exhibit F. Modifications may be made to these guidelines and rules by mutual consent of the Grantor and the Grantee. III. FUTURE ACCESS CHANNEL NEEDS. Either party to this Agreement may request that the other party meet and confer to discuss actual or potential changes in access channel requirements, whether attributable to technological developments, changes in viewership statistics, or other factors. Any modifications to this Exhibit F that are agreed upon by the parties will be memorialized in writing. 990317 11231-00001 S¥C 0593892 3 - F-4