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5460r ORDINANCE NO. 5460 AN UNCODIFIED ORDINANCE OF THE CITY OF ANAHEIM EXTENDING FOR TWO YEARS THE NONEXCLUSIVE FRANCHISE PREVIOUSLY GRANTED TO STORER T.V., INC., HERETOFORE ASSIGNED TO M.L. MEDIA PARTNERS, L.P., FOR THE LAYING AND USE OF LINES, WIRES, COAXIAL CABLE AND APPURTENANCES FOR TRANSMITTING, RECEIVING, DISTRIBUTING AND SUPPLYING RADIO, TELEVISION AND OTHER CABLE COMMUNICATION SERVICES ALONG, ACROSS AND UPON THE PUBLIC STREETS, WAYS, ALLEYS, AND PLACES WITHIN THE CITY OF ANAHEIM. THE CITY COUNCIL OF THE CITY OF ANAHEIM HEREBY ORDAINS AS FOLLOWS: SECTION 1. LEGISLATIVE FINDINGS The City Council finds and declares as follows: 1. The City Council of the City of Anaheim did adopt Uncodified Ordinance No. 4087 setting forth the terms and conditions of a cable television franchise and awarding said cable television franchise to Storer Cable TV, Inc. ("Storer"). 2. Said Ordinance No. 4087 has been amended by Ordinances Nos. 4214, 4268 and 4353 (which four ordinances are collectively referred to herein as the "Franchise"). 3. Said Franchise has been transferred to M.L. Media Partners, L.P. (the "Grantee") pursuant to Ordinance No. 4789. 4. The Grantee has submitted to the City a written request for renewal pursuant to Section 626(a) of the Cable Communications Policy Act of 1984, as amended (the "Cable Act"). 5. The City of Anaheim will commence proceedings (the "Ascertainment") for the purposes of (1) identifying the future cable -related community needs and interest and (2) reviewing the performance of the cable operator under the Franchise during the then -current Franchise term. 6. The Grantee has communicated to the City of Anaheim its desire to submit a proposal for renewal of its existing Franchise upon completion of the Ascertainment. 7. The City of Anaheim desires to receive a proposal from the Grantee upon completion of the Ascertainment. 8. The City of Anaheim and the Grantee desire to stay formal renewal proceedings heretofore conducted pursuant to Section 626(a) of the Cable Act. i 9. The City of Anaheim and the Grantee now desire to extend the existing Franchise upon its current terms and conditions, without other modification or amendment, for a term of two (2) years beyond its current expiration date to allow the renewal process to be conducted in a reasonable and orderly manner. 10. Neither the City of Anaheim nor the Grantee intends to waive, relinquish, or in any way relegate any right which it may possess under Section 626(a) or any other section of the Cable Act or under any other provision of law by extending the existing term of the Franchise pursuant to this ordinance. 11. The public interest will be promoted by, and the City Council desires to provide for, an orderly and comprehensive procedure and methodology for the negotiation of a potential renewal of the Franchise held by the Grantee. SECTION 2. The Franchise is hereby extended for two years by amending Ordinance No. 4087, Section 8, Paragraph (b) thereof, entitled "Duration of Grant," to read as follows: " (b) The term of the franchise shall be seventeen (17 ) years commencing on the effective date of the franchise as provided in Paragraph (a) of this section; provided that upon written notice given by City or Grantee to the other not less than one (1) year prior to the seventeenth (17th) anniversary of the effective date, the terms and conditions of this ordinance may be subject to renewal and renegotiation as provided in Sections 1400, 1401, 1402, 1403, 1404, 1405 and 1406 of the City Charter for a succeeding fifteen- (15-) year term. Renegotiations shall be directed toward effecting alterations in the terms and conditions of the franchise in order to reflect those technical and economic changes which have occurred during the interim period. If renegotiation prior to the end of the term of the franchise does not result in agreement between City and Grantee for continuance of the franchise for a succeeding fifteen- (15-) year term, the franchise shall terminate without further action by City at the end of its first, seventeen- (17-) year, term." SECTION 3. Except as amended hereby, the original Franchise and all its terms and conditions, as previously granted and amended by ordinances of the City Council, shall continue in effect through and including January 23, 1997. 2 i SECTION 4. With the exception of the extension of the Franchise described herein, this ordinance will not in any other way amend, modify, increase, or otherwise affect the rights possessed by the Grantee under said Franchise, with the exception of those amendments and modifications expressly contained herein. This ordinance does not grant a new Franchise or a renewed Franchise, nor in any way increases or modifies the ability of the Grantee or any related entity to claim any rights pursuant to Section 626 of the Cable Act, or any other provision thereof. SECTION 5. The formal renewal proceeding previously initiated by the Grantee shall be deemed stayed and brought to a standstill as of September 1, 1994, subject to reactivation upon written notice by the Grantee to the City or by the City to the Grantee. The formal renewal proceeding specified in Sections 626(a) et seq. of the Cable Act shall resume thirty (30) days after the receipt of such written notice. SECTION 6. The City of Anaheim shall deliver to the Grantee the results of the Ascertainment including, but not limited to, copies of any and all subscriber information surveys, community institution surveys, and technical surveys, within fifteen (15) days of completion of the Ascertainment. SECTION 7. Any proposal that the Grantee desires to submit for the renewal of its franchise within the meaning of Section 626 of the _ Cable Act shall be submitted within forty-five (45) days of the Grantee's receipt of the results of the Ascertainment. SECTION 8. As a condition of the Grantee's proposal being considered, the Grantee shall reimburse ANAHEIM for its actual costs of the renewal proceeding since its initiation, as incidental costs including, without limitation, attorney fees; the costs of the Ascertainment including, but not limited to, any technical or engineering or consultant analysis; printing; postage; and other out- of-pocket costs, in an amount not to exceed One Hundred Fifty Thousand Dollars ($150,000.00) ("Reimbursable Costs"). The City shall submit statements to the Grantee at such times as the City determines, and the Grantee shall pay said statements within sixty (60) days of receipt, up to a maximum of Fifty Thousand Dollars ($50,000.00). The Grantee shall pay the City the remaining Reimbursable Costs, up to a maximum (including prior payments) of One i Hundred Fifty Thousand Dollars ($150,000.00), as and when the City Council's grant of a new or renewed Franchise becomes final and is accepted by the Grantee. The Grantee shall not be entitled to dispute any of the Reimbursable Costs up to the agreed aggregate maximum amount described above, and the City is not required to itemize to the Grantee the specific tasks performed for said Reimbursable Costs but shall provide a breakdown and accounting by category indicating the nature or type of Reimbursable Costs incurred. The Grantee may dispute said expenses within the agreed aggregate maximum amount only upon the basis that said Reimbursable Costs were not incurred by the City, and the Grantee is not entitled to dispute said expenses on the basis, among others, that said Reimbursable Costs were unnecessary or unreasonable. Any payments made by the Grantee to the City within the agreed aggregate maximum amount pursuant to the Franchise constitute reimbursement for actual incidental expenses incurred by the City and shall neither constitute franchise fees nor be offset against any franchise fees payable to the City. SECTION 9. Grantee may accept the two-year extension of the Franchise authorized by this ordinance by delivering to the City Clerk a letter, signed by an authorized representative of Grantee, stating that (1) Grantee accepts the two-year extension of the Franchise upon all the terms and conditions of the original Franchise and of this ordinance including, but not limited to, provisions relating to indemnification and insurance, and (2) such indemnification and insurance obligations of Grantee shall extend also to any and all damages, penalties and liabilities for which the City of Anaheim may become obligated to a third party as a result of the adoption of this ordinance, and any and all costs and expenses incurred by the City in defending itself with regard to any and all damages, penalties and liabilities mentioned above. SECTION 10. This ordinance shall become effective thirty days after adoption or upon the City's receipt and the City Attorney's approval of the letter referred to in Section 9 of this ordinance, whichever occurs later. SECTION 11. SEVERABILITY The City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence or word of this ordinance hereby adopted, be declared for any reason to be invalid, it is the intent of the Council that it would have passed all other portions of this ordinance independent of the elimination herefrom of any such portion as may be declared invalid. 4 SECTION 12. SAVINGS CLAUSE Neither the adoption of this ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution for violations of ordinances, which violations were committed prior to the effective date hereof, nor be construed as a waiver of any license or penalty or the penal provisions applicable to any violation thereof. The provisions of this ordinance, insofar as they are substantially the same as ordinance provisions previously adopted by the City relating to the same subject matter, shall be construed as restatements and continuations, and not as new enactments. THE FOREGOING ORDINANCE is approved and adopted by the City Council of the City of Anaheim this 6th da ecember 1994. xy MAYO 15F THE CITY O NAHEIM ATTEST• CITY CLERK OF THE CITY OF ANAHEIM 9365.4\EEGAN\November 7, 1994 5 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Ordinance No. 5460 was introduced at a regular meeting of the City Council of the City of Anaheim, held on the 8th day of November, 1994, and that the same was duly passed and adopted at a regular meeting of said City Council held on the 6th day of December, 1994, by the following vote of the members thereof: AYES: MAYOR/COUNCIL: Lopez, Zemel, Feldhaus, Daly NOES: MAYOR/COUNCIL: None ABSENT: MAYOR/COUNCIL: None COUNCIL VACANCY: COUNCILMEMBER: One AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Ordinance No. 5460 on the 6th day of December, 1994. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 6th day of December, 1994. CITY CLERK OF THE CITY OF ANAHEIM (SEAL) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Ordinance No. 5460 and was published once in the North Orange County News on the 15th day of December, 1994. CITY CLERK OF THE CITY OF ANAHEIM