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50578/07/89 Ordinance No. 5057 AN ORDINANCE OF THE CITY OF ANAHEIM GRANTING TO EMPIRE CABLE TELEVISION, INC. THE NONEXCLUSIVE RIGHT, PRIVILEGE AND FRANCHISE TO LAY AND USE LINES, WIRES, COAXIAL CABLE AND APPURTENANCES FOR TRANSMITTING, RECEIVING, DISTRIBUTING AND SUPPLYING RADIO, TELEVISION AND OTHER CABLE COMMUNICATION SERVICES ALONG, ACROSS AND UPON CERTAIN PORTIONS OF THE PUBLIC STREETS, WAYS, ALLEYS, AND PLACES WITHIN PORTIONS OF THE CITY OF ANAHEIM THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES ORDAIN AS FOLLOWS: SECTION 1. FRANCHISE. A nonexclusive franchise is hereby granted to Empire Cable Television, Inc. ("Grantee") for the transmitting, receiving, distributing and supplying radio, television, and other cable communication services along, across and upon the public streets, ways, alleys and places within those portions of the City of Anaheim described in Exhibit A, which is attached hereto and by this reference incorporated herein. The portions described in Exhibit A are hereafter referred to as the "Franchise Area." SECTION 2. RULES OF CONSTRUCTION. This Ordinance shall be construed liberally in order to effectuate its purposes. Unless otherwise specifically prescribed in this Ordinance, the following provisions shall govern its interpretation and construction: (a) When not inconsistent with the context, words used in the present tense include the future, words in the plural number including the singular number, and words in the singular number include the plural number. (b) Time is of the essence of this Ordinance. Grantee shall not be relieved of its obligation to comply promptly with any provision of this Ordinance by any failure of City to enforce prompt compliance with any of its provisions. . (c) Any right or power conferred, or duty imposed upon any officer, employee, department or board of City is subject to transfer by operation of law to any other officer, employee, department or board of City. (d) Grantee shall have no recourse whatsoever against City for any loss, cost, expense or damage arising out of any -1- 8/07/89 provision or requirement of this Ordinance or the enforcement thereof. (e) This Ordinance does not relieve Grantee of any requirement of the City Charter or of any Ordinance, rule, regulation, or specification of City including, but not limited to, any requirement relating to street work, street excavation permits, undergrounding of utility facilities, including cable system facilities, or the use, removal or relocation of property in streets. (f) Provisions of this Ordinance shall be construed in accordance with Sections 1400, 1401, 1402, 1403, 1404, 1405 and 1406 of the Charter of the City of Anaheim. SECTION 3. PURPOSE OF INTENT. It is the purpose and intent of this Ordinance to grant a franchise to engage in the business of operating a cable communication system in the Franchise Area of the City of Anaheim particularly described in Section 5 of this Ordinance. It is the further purpose and intent of this Ordinance that the Grantee of the franchise granted by this Ordinance provide the citizens of the City of Anaheim the best possible community cable communication services consistent with the state of art and rates reasonable to both Grantee and its subscribers. SECTION 4. DEFINITIONS Whenever in this Ordinance the following words or phrases are used, they shall mean; (a) "City" shall mean the City of Anaheim, a municipal corporation in the State of California. (b) "Council" shall mean the City Council of the City. (c) "Franchise" shall mean the right and authority granted by this Ordinance to Grantee to construct, maintain and operate a cable communication system through use of the public streets, other public rights of way or public places in the City within the Franchise Area. (d) "Franchise Property" shall mean all property owned, installed or used under authority of this Ordinance by Grantee. -2- 8/07/89 (e) "Grantee" shall mean Empire Cable Television, Inc. (f) "Street" shall mean the surface, the air space above the surface and the area below the surface of any public street, other public right of way or public place. (g) "Cable communication System" referred to in this Ordinance as "Cabled System" shall mean the broadcast signal reception, processing, and signal generation facilities and the cable distribution system, as described in the Specifications for construction, operation and maintenance of the Cable Communication System for the City of Anaheim. (h) "Subscriber" shall mean any person or entity receiving for any purpose the cable service of Grantee. (i) "Total Gross Receipts" shall mean any and all compensation and other consideration collected or received or in any manner gained or derived by Grantee from the operation of its cable service within the corporate limits of the City of Anaheim as such corporate limits now exist or may be established hereafter. Total gross receipts shall include regular monthly subscriber fees for both standard and reconnect charges, and changes for use of access, origination or private service channels in either service direction. SECTION 5. NATURE AND EXTENT OF GRANT The franchise granted by this Ordinance to Grantee constitutes authority to use the public streets, other public rights of way or public place in City, to engage in the business of operating a cable communication system, as defined herein, within the Franchise Area subject too all of the terms and conditions contained in this Ordinance. Pursuant to such authority, until lawfully revoked, Grantee may construct, maintain and operate wires, cables, poles, conduits, manholes or any other equipment which is a means of transmitting and receiving signals. Grantee shall not engage in the business of selling at retail, leasing, renting, repairing or servicing television sets or radios nor engage in the sale of parts for such equipment. When requested, Grantee shall receive and distribute access programming signals from and to headend of other (third party) communication service operators who are authorized by the City to offer such services within the City. Signal carriage shall be provided on cable system access channels by Grantee at uniform rates approved by the City. Equipment and installation required to bring the signals to and from the cable system headend and to condition such signals for -3- 8/07/89 application to the cable system shall be provided by the (third party) communication service operator. SECTION G. TERRITORIAL AREA INVOLVED. This franchise relates to the Franchise Area of the City. Construction of Grantee's cable system shall be in accordance with the provisions of Section 9 of this Ordinance. SECTION 7. DURATION OF GRANT. (a) The franchise shall become effective on the thirtieth (30) day after the passage of this Ordinance provided, prior to that date, Grantee has filed with the City Clerk: (1) a written instrument addressed to the Council accepting the franchise and agreeing to comply with all provisions of this Ordinance; (2) a surety bond, cash deposit or deposit in any federal or State of California chartered bank or savings and loan association in accordance with the provisions of Section 19 of this Ordinance. (b) The term of the franchise granted hereunder shall be fifteen (15) years commencing on the effective date of the franchise as provided in Paragraph (a) of this section. The franchise granted hereunder may be renewed upon application by the Grantee pursuant to the provisions of applicable state and federal law. City is under no obligation to grant such renewal and such renewal is subject to the provisions of Section 1400, 1401, 1402, 1404, 1405 and 1406 of the Charter of the City of Anaheim except to the extent those Charter provisions are preempted by federal or state law. (c) In the event of purchase by the Grantor, or a change of Grantee, the current Grantee shall cooperate with the City, or with a representative appointed by the Grantor to operate the System for a temporary period in maintaining continuity of service to all subscribers. RFC_TTON 8. LIMITATIONS UPON GRANT. No privilege or exemption is granted or conferred by this Ordinance except those specifically prescribed in it. The franchise granted by this Ordinance is subordinate to any existing public use or any existing franchise or lawful occupancy or any public highway, street, road or other public property for the purpose of erecting, operating and maintaining poles, lines, conduits, cables, gas pipelines and other necessary fixtures used in connection with the purpose of existing franchises or any extension of them. -4- 8/07/89 The franchise granted by this Ordinance is a privilege personal to the original Grantee. It cannot, in any event, be sold, transferred, leased, assigned, or disposed of as a whole, or in part, or otherwise, without prior consent of City expressed by Ordinance, and then only under such conditions as may be prescribed in the consenting Ordinance; provided, however, that no such consent shall be required for any transfer in trust, mortgage, or other hypothecation, as a whole, to secure an indebtedness. In the event that Grantee is a corporation, prior approval of the City Council, expressed by Ordinance, shall be required where ownership or control of more than thirty percent (30%) of the voting stock of Grantee is acquired by a person or group of thirty percent (30%) or more of the voting stock, singularly or collectively. Any such acquisition occurring without prior approval of the City Council shall constitute a failure to comply with a material provision of this franchise Ordinance. SECTION 9. OPERATION OF SERVICE (a) Within thirty (30) days after acceptance of the franchise granted hereunder, the Grantee shall proceed with due diligence to obtain all necessary permits and authorizations which are required in the conduct of its business including, but not limited to, any utility joint use attachment agreements, microwave carrier licenses, and any other permits, licenses and authorizations to be granted by duly constituted regulatory agencies having jurisdiction over the operation of cable television systems, associated microwave transmission/reception facilities and/or satellite communications facilities. (b) Within ninety (90) days after obtaining all necessary permits, licenses and authorizations, including right of access to poles and conduits, Grantee shall commence construction and installation of its cable television system within the Franchise Area. The City acknowledges and agrees that construction of Grantee's system in the aforesaid Area shall proceed at approximately the same pace as the new residential construction. Grantee, in turn, agrees to make service available to each and every resident of aforesaid Area not more than sixty (60) days from the date each resident moves into his or her unit. subject only to the Force Majeure provisions of Section 32 herein, and in the case of multi -family housing, the Grantee's being able to access the premises under reasonable terms and conditions. (c) Failure on the part of the Grantee to commence and diligently pursue each of the foregoing requirements and to complete each of the matters set forth herein, shall be -5- 8/07/89 grounds for termination of such franchise. By resolution, the Council, in its discretion, may extend the time for the commencement and completion of installation and construction for additional periods in the event the Grantee, acting in good faith, experiences delays by reason of circumstances beyond his control. By acceptance of the franchise granted hereunder, Grantee agrees that failure to comply with any timerequirements referred to in Subsections (a), (b) and (c), or a s extended by the City Council, of this section will result in damage to the City, and that it is and will be impracticable to determine the actual amount of such damage in the event of delay; and Grantee therefore agrees that it will pay to the City the sum of Five Hundred Dollars ($500.00) per day for each and every day's delay beyond the time prescribed, plus authorized extensions thereof, for completion of any of the acts required to be done by this Section. SECTION 10. MINIMUM CABLE SERVICE REQUIREMENTS. (a) As a minimum, the cable television system permitted to be installed and operated hereunder shall: (1) Be operationally capable of relaying to all subscriber terminals those television and radio broadcast signals for the carriage of which the Grantee is hereafter authorized by the Federal, Communications Commission if such authorization is required. (2) Be constructed with the capacity for two-way return communication. The Grantee shall provide return communication within one hundred eighty (180) days of the date City Council so directs and the same is economically feasible. (3) Have a minimum capacity of fifty-four (54) television channels and twenty (20) FM channels to all subscribers expressly providing to all subscribers any required converters, cable selection switch(es) or other devices required for the subscriber to receive all carried standard channels. (4) Grantee shall dedicate up to six (6) channels for public, educational, and governmental use: three of the channels shall be dedicated upon commencement of Grantee's cable television service within the City (hereinafter referred to as Commencement of Service"), and up to three additional channels as needed. Such channels shall be without charge to the City. One of these channels shall employ a colorized alphanumeric character generator with local display to be located at the direction of the City. 8/07/89 (5) If the City's other cable television operator provides an emergency alert system that can provide audio broadcast of emergency announcements or information over local access channels, Grantee shall either interconnect with this system or provide its own emergency alert system, which will enable audio broadcast of emergency announcements and information to all cable subscribers throughout the City at the same time. (6) Within 180 days of the effective date of this franchise, Grantee shall take all reasonable steps to negotiate and enter into an agreement with the City's other cable television operator, on reasonable terms and conditions, to share access programming and allow simultaneous cablecasting of such programming on both systems. Grantee shall offer to pay a proportionate share of the cost of producing such programming, including use of studio facilities and equipment by all Anaheim residents. Grantee shall build, at its own cost, a return line from the closest point of the other cable operator's system to Grantee's microwave hub site. (7) In the event that Grantee is not able to negotiate and enter into an agreement with the City's other cable television operator that permits Grantee's Anaheim system to receive and cablecast the other operator's live and tape delayed access programming, Grantee shall provide the following items: (a) Grantee shall make available to Anaheim residents a local origination and public, educational and governmental access studio comparable to the studio and on terms and conditions required by the other cable operator's franchise with the City (Ordinance No. 4087 as amended by Ordinance 4789) within the City of Anaheim or such other location reasonably acceptable to the City. (b) Within one (1) year of beginning construction of its cable television system, Grantee shall make available, at no cost to the city, a professional quality color video camera, video tape recorder, and other equipment necessary to video tape such events as the City may determine in its discretion. (c) Grantee shall cablecast public, educational, governmental, or other local origination programming produced by any Anaheim resident provided such programming is made available to Grantee. Grantee shall cablecast other access programming shown by the City's other cable television operator provided such programming is made available to Grantee. In addition, Grantee may select and cablecast on its Anaheim cable system access programming from -7- 8/07/89 its cable systems in other cities, which it believes would be of general interest to its Anaheim subscribers. (d) Grantee shall construct a microwave link between its Yorba Linda headend and Anaheim heim civic Center ter that will permit the live cablecasting cabevents, asts provided that the City's other cable r,operator(s)ossesses the live from the Anaheim Civic Center, activated capacity to do so. (b) Grantee shall: (1) Operate the cable system authorized b ysthis Ordinance twenty-four (24) hours per day, seven per week. (2) Maintain an office within five (5) driving miles of the Franchise Area, which office shall be open during all the usual business hours, have a local telephone number listed in the directories of the Pacific Telephone and Telegraph Company for Anaheim extended areas, and be so operated that complaints and requestsfor repairight, seven or adjustments may be received at anyda time, y (7) days a week. (3) offer efficient service, effecting repairs promptly and interrupting service only for good cause and for the shortest time possible; such interruptions insofar as possible shall be preceded by notice given to subscribers twenty-four (24) hours in advance and shall occur during periods of minimum use of the system. (4) Limit system failures to minimum time duration by locating and correcting malfunctions promptly and if possible not longer than twenty-four (24) hours after occurrence, if reasonably possible, irrespective of holidays or other nonbusiness hours. No charge shall be made to the subscriber for this service. The remedies specified in Section 12(d) of this Ordinance shall apply for interruptions of greater than 24 hours. (5) Establish procedures for receiving, acting upon and resolving subscriber complaints to the satisfaction of the City Manager. The Grantee shall furnish a notice of such procedures to each subscriber at the time of initial subscription to the system. (6) Maintain a written record, or "log" listing date and time of customer complaints, identifying the subscriber and describing the nature of the complaints and when and what action was taken by the Grantee in response thereto; such eoperations Grantee's nperiodlocal atfleast reflecting pe at ons to date for a 8/07/89 three (3) years, and shall be available for inspection during regular business hours without further notice or demand by A --h-- City Manager. (c) In the event that a customer complaint is not resolved to the mutual satisfaction of the customer or the Grantee, either the customer or the Grantee may request that the matter be presented to the City Manager for a hearing and resolution. When there have been similar complaints made or where there exists other evidence which, in the judgment of the City Manager casts doubt on the reliability or quality of cable serviced, the City Manager shall have the right and authority to compel the Grantee to test, analyze, and report on the performance of that part of the system involved in the problem. Such test or tests shall be made and the reports of such test or tests shall be delivered to the City no later than fourteen (14) days after the City formally notifies the Grantee. Such report shall include the following information: the nature of the complaint which precipitated the special tests; what system component was tested; the equipment used and procedures employed in said testing; the results of such tests; what system component was tested; the equipment used and procedures employed in said testing; the results of such tests; and the method in which such complaints were resolved. Any other information pertinent to the special test shall also be recorded. The City's right under this provision shall be limited to requiring tests, analyses, and reports covering specific subjects and characteristics based on said complaints or other evidence when and under such circumstances as the City has reasonable grounds to believe that the complaints or other evidence require that tests be performed to protect the public against substandard cable service. (d) The cable television system permitted to be installed and operated hereunder may also engage in the business of: (1) Transmitting original cablecast programming not received through television broadcast signals; (2) Transmitting television pictures, film and videotape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers or subscribers; (3) Transmitting and receiving all other signals: digital, voice and video. 8/07/89 (e) The Grantee shall provide one (1) subscriber connection without cost and, as designated by the Council, when the system passes within five hundred (500) feet of the lot line or boundary of any of the following facilities: (1) Public schools and community colleges within the City. (2) Buildings owned used for public purposes (fire and not solely for residential and controlled by the City and police stations included) use. (f) When service is within five hundred (500) feet of the lot line or boundary of the Anaheim Convention Center, Civic Center, Stadium and such public facilities as designated by the City Manager, the Grantee shall provide both one (1) subscriber connection and an origination connection capability at said facility. Said origination capability shall be limited to: (1) Installation of a television modulator or equivalent device capable of utilizing standard audio and video baseband signals. (2) The necessary cable distribution system upstream or equivalent transmission capacity. (3) The necessary system headend equipment required to distribute Convention Center, Civic Center, Stadium and such public facilities, as designated by the City Manager, upstream to all subscribers. SECTION 11. TECHNICAL PERFORMANCE STANDARDS. The CATV system shall be designed, installed, maintained and tested in accordance with best CATV industry practice and, as a minimum, shall conform with the technical performance standards contained herein. In addition, should the Federal Communications Commission (FCC) or other State or Federal authority having jurisdiction impose CATV system technical performance standards either outside the scope of the technical performance standards contained herein, or requiring a higher level of CATV system performance, those standards are hereby incorporated herein by reference. If, for any reason, the referenced FCC or other technical standards shall become reduced in the regional scope or service level, the more stringent standards herein shall remain in effect. -10- 8/07/89 (a) Performance of the CATV system as measured at any subscriber terminal with matched 75 ohm termination shall be as follows?: (1) The frequency boundaries of cable television channels delivered to subscriber terminals shall conform to those set forth in FCC 73.603(a) or subsequent FCC standard. (2) If no frequency converter is supplied to the subscriber, the visual carrier frequency shall be maintained 1.25 MHz+25 kH2 above the lower frequency boundary of the cable television channel. If a frequency converter is supplied to the subscriber by the cable television system, the following requirement shall be applied at the interface between the converter and the subscriber's terminal equipment: when the visual carrier or the output of the converter has been tuned to a frequency 1.25MHz above the owner frequency boundary of a cable television channel with the converter stabilized at an ambient temperature between 20 and 25 C, the frequency of the visual temperature between 20 C and 25 C, the frequency of the visual carrier shall not vary more than +250 kHz for a period of at least three (3) hours, during which period the ambient temperature may vary +5 C above the initial ambient temperature. (3) The aural center frequency of the aural carrier shall be 4.5 MHz +1 kHz above the frequency of the visual carrier. (4) The visual signal level across a 75 ohm terminating impedance as viewed from subscriber terminals shall not be less than 1500 microvolts (=3.5 deBmV) at each subscribers outlet. (5) The visual signal level on each channel shall be maintained within: (i) 3 decibels of the visual signal level of any visual carrier within 6 MHz nominal frequency separation, and (ii) 12 decibels of the visual signal level on any other channel, and degradation due not occur, and period. (iii) a maximum level such that signal level to overload in the subscriber's receiver does (iv) 12 decibels -11- over any twenty-four (24) 8/07/89 (6) The rms voltage of the aural signal shall be maintained between 13 and 17 decibels below the associated visual signal level. (7) The peak -to -peak variation in visual signal level caused by undesired low frequency disturbances (hum or repetitive transients) generated within the system, or by inadequate low frequency response, shall not exceed five percent (5%) of the visual signal level. (8) The amplitude characteristic shall be within a range of +2 decibels from 0.75 MHz to 5.0 MHz above the lower boundary frequency of the cable television channel, referenced to the average of the highest and lowest amplitudes within these frequency boundaries. (9) The ratio of visual signal level to system noise shall be not less than 42 decibels. (10) The ratio of visual signal level to any undesired co -channel television signal operating on proper offset assignment shall be not less than 36 decibels. (11) The ratio of visual signal level to the rms amplitude of any coherent disturbances such as intermodulation products or discrete -frequency interfering signals not operating on proper offset assignments shall not be less than 46 decibels. (12) The terminal isolation provided each subscriber shall be not less than 18 decibels but, in any event, shall be sufficient to prevent reflections caused by open -circulated or short-circuited subscriber terminals from producing visible picture impairments at any other subscriber terminal. (13) As an exception to the general provision requiring measurements to be made at subscriber terminals, and without regard to the class of cable television channel involved, radiation from a cable television shall be measured in accordance with procedure outlined in FCC regulations, and shall be limited as follows: as follows: Distance Frequencies (feet) Up to and including 54 MHz 100 Over 54 up to and including 216 MHz 10 -12- Radiation Limit (Microvolts/Meter) 15 20 8/07/89 Over 216 MHz 15 100 (14) The CATV system shall be rated for continuous twenty-four hour per day operation. (15) The FM signal level across a 75 ohm terminating impedance as viewed from subscribers' terminals shall be not less than 100 microvolts (-20 dBmV) nor greater than the highest permitted channel 6 aural signal level. (16) The FM signal level on each channel shall be maintained within: (i) 3 decibels of the FM signal level of any FM signal on an adjacent (200 kHz spacing) channel, and (ii) 6 decibels of the FM signal level of any other FM signal carried on the system. (17) Grantee's CATV system shall, as a minimum, be operational in full compliance with the applicable specifications contained herein, over the radio frequency spectrum from 50 to 300 MHz inclusive. Further, the system shall be designed such that thirty-two (32) channel operation is possible from the outset utilizing the 50 to 300 MHz spectrum. (18) The CATV system shall, as a minimum, be capable of operating in full compliance with the applicable specifications herein, a return signal capacity in all portions of the system, over the frequency range of 5 to 30 MHz inclusive. (19) The Grantee shall, at all times during the term of franchise, properly install and maintain adequate shielding, filtering and grounding at affected installations within the CATV system to eliminate system interference from local radio/television broadcast stations, commercial, government and aeronautical radio station sand/or from fundamental frequency overload by radio amateur or citizen's radio service transmissions which are in compliance with Federal Communications Commission regulations. (b) Nonbroadcast signals carried on the CATV system shall meet the following baseband requirements. The RF modulated signals associated with these baseband signals shall meet all requirements of Subsection (a) above. (1) Overall baseband system video frequency response shall be +2 decibels over a DC to 4.2 MHz bandwidth. -13- 8/07/89 (2) Baseband video tilt shall not exceed two percent (2%) as measured at the vertical or horizontal rate. (3) overall baseband system video signal-to-noise ratio shall be not less than 42 decibels over a DC to 4.2 MHz bandwidth. (4) Video synchronizing wave form shall comply with the following applicable standard (latest edition or its equivalent): (i) 2.1 Interlace monochrome - EIA RS -330. (ii) Full Interlace monochrome - IA RS -170. (iii) Color - FCC 73.699 Figure 6. (5) Where applicable, minimum television camera (live and film) performance shall be: (i) Resolution (luminance) - 350 line center (vertical); 600 line center, 400 line corners (horizontal). (ii) Scan linearity - two percent (2%) maximum error (horizontal and vertical). (iii) Registration (color only) - two tenths percent (0.2%) in centered circle of 0.8 picture height; four -tenths percent (0.4% overall. (iv) Video tilt - two percent (2% maximum (horizontal rate). (6) Overall audio system frequency response shall be + 3 decibels over the frequency ranger 30 to 10,000 Hz. (7) Overall audio system signal-to-noise ratio shall be not less than 50 decibels over the frequency range 50 to 10,000 Hz. (8) Overall audio system harmonic distortion shall not exceed two percent (2%) at any frequency from 50 to 10,OOOHz. (c) Any local origination studio provided by the Grantee shall meet the following minimum requirements: -14- 8/07/89 (1) 600 square feet (net) space minimum. (2) 12 -foot ceiling height minimum. (3) 3200 degree K tungsten halogen professional TV production lighting system (200 foot candles minimum capability). (4) Acoustical noise level under normal studio operating conditions not to exceed NO 25 (5) Minimum complement of production equipment to include the following or approved equivalent: Two (2) studio cameras. At lease two (2) color video tape recorders with insert/assemble editor and capstan serve. At least one (1) digital video time base connector for use with the color video tape recorders during both editing and on -cable playback. Video production switching capability with special effects. Video picture and waveform monitoring equipment. Audio mixing and monitoring capability. (d) On the last regular working day of each of the first three (3) operating quarters of each calendar year, the Grantee shall submit to the City Manager system performance data taken within the previous seven (7) days. Measurements of said data shall be taken at the same test points selected to satisfy Subsection (a) below during the last annual system performance test that data has been submitted to the City. Quarterly test data shall be: (1) Visual signal level for all channels carried. (2) Visual signal-to-noise measurements on one active lowband and one active highband VHF channel. (3) Visual hum modulation on one channel or pilot carrier. (4) Measurement locations for system compliance with Subsection (a) above, except those requirements -15- 8/07/89 regarding twenty-four (24) hour visual signal amplitude and channel amplitude characteristics, shall include: (i) End of each system major trunk, and (ii) End of each system trunk branch four (4) or more trunk amplifiers deep. Actual test locations shall be selected to measure performance of the system in the franchise area and shall be (or as closely as possible simulate) actual subscriber locations. (5) Measurements regarding twenty-four (24) hour visual signal level and channel amplitude characteristic shall be made as required by the FCC. (6) Measurement for system compliance with Subsection (b) above shall be made where practical on all origination equipment employed in the system. (7) Measurement techniques shall be either (i) those suggested by the FCC or (ii) those mutually developed by the Grantee and the City and agreed to in writing prior to system testing. If agreement cannot be reached, the City shall prescribe acceptable methods of measurement. Quarterly tests shall be performed on a scheduled basis. A representative of the City shall be permitted to accompany the Grantee during quarterly measurement activities. The Grantee shall not be permitted to make any system adjustments during quarterly measurement activities without noting such adjustments on the test data form. (e) The Grantee shall, during the last month of the fourth operating quarter of each calendar year, perform annual CATV system performance tests. (1) Such tests shall be in full compliance with FCC regulations. (2) Such tests shall be independently witnessed and the resultant data analyzed by a representative of the City if directed by the City Manager. (3) All necessary test instrumentation shall be supplied by the Grantee. A current certificate of calibration by an independent calibration laboratory shall be supplied for each test instrument. All costs for instrumentation and calibration shall be borne by the Grantee. -16- 8/07/89 (4) Concurrent with annual performance tests, the City representative shall inspect all system headend facilities and outside plant for adherence to best industry installation, workmanship and safety practice. (5) Measurement techniques shall be those mutually developed by the Grantee and the City and agreed to in writing prior to system testing. If agreement cannot be reached, the City shall prescribe acceptable methods of measurement. (f) The Grantee shall maintain the system so it consistently operates within the substantial compliance of the technical standards herein; substantial compliance being defined as ninety-five percent (95%) of the channels received shall meet all applicable technical standards simultaneously at the time of measurement. SECTION 12. SPECIAL PROVISIONS. (a) System Maps and Layout. The Grantee shall have at all time up-to-date route maps of suitable scale showing all transmitting and receiving pickup locations and the location of all amplifiers and trunk and distribution lines. Liens to individual home and business outlets within the public right of way shall be shown. Maps shall be annotated so that a failure or malfunction in the transmission lines and assorted equipment can be evaluated in terms of service area receiving less than full service. The scale of the maps shall be sufficient to clearly show details to include horizontal and vertical dimensions and in a size and shall be drawn to a scale approved by the City Engineer. Grantee shall provide City current copies of said maps. At the beginning of construction and every six (6) months after, Grantee shall indicate to the City its plans for installation and engineering during the next six (6) months. (b) System Construction and Equipment Standards. The system shall be installed and maintained in accordance with standard good engineering practices and shall conform when applicable with the National Electrical Safety Code ; Rules for Overhead Line Construction (General Order No. 95) of the California Public Utilities Commission; Rules for Underground Construction of Lines (general Order No. 128); the California Administrative Code, Title 24, Part 3; the City of Anaheim Municipal Code; Federal Communications Commission Rules and Regulations Parts 15, 73, 74, 76 and new parts as they may apply and ANSI standard Y32.21 (latest edition). (c) Preferential or Discriminatory Practices Prohibited. The Grantee shall not, as to rates, charges, service, services, facilities, rules regulations, or in any -17- 8/07/89 other respect, make or grant any undue preference or advantage to any person, nor subject any person to any prejudice or disadvantage. (d) Remedies for Inadequate Service. (1) In the event that its service to any subscriber is interrupted for twenty-four (24) consecutive hours as measured from the time the Subscriber first notifies Grantee of the interruption, except for acts of God, acts beyond the control of Grantee and except in circumstances for which prior approval of the interruption is obtained from the City Manager, Grantee shall provide a ten percent (10%) rebate of the monthly fees to the affected subscriber. (2) In the event that its service to any subscriber is interrupted for forty-eight (48) or more consecutive hours, as measured from the time the Subscriber first notifies Grantee of the interruption, except for acts of God, and except in circumstances for which the prior approval of the interruption is obtained from the City Manager, Grantee shall provide a twenty percent (20%) rebate of the monthly fees to the affected subscriber. (3) In the event that the system fails to meet any performance standards for a full three (3) month period, Grantee shall pay the City a penalty of two hundred fifty dollars ($250.00) per day for every day after the end of the three month period that the standards are not met. The City Manager shall notify the Grantee during the first month of the three (3) month period that the system has failed to meet performance standards. The penalty provided by this Section shall increase automatically at the rate of 5% per annum. (4) In the event that the system fails to meet any performance standards for a full three (3) month period, Grantee shall reduce all subscribers' fees by twenty-five percent (25%) until all performance standards are met. The City Manager shall notify the Grantee during the first month of the three ( 3 ) month period that the system has failed to meet performance standards. (5) For failure to commence construction in accordance with Section 9 of this Ordinance, unless the Council approves the delay because of reasons beyond the control of the franchisee, the franchise term shall be reduced four (4) days for each day of delay. (6) For failure to begin service to subscribers or complete construction and installation of the system as provided for in Section 9 of this Ordinance, unless the Council approves the delay because of reasons beyond the 8/07/89 control of the franchisee, the franchise term shall be reduced (4) days for each day of delay. SECTION 13. LOCATION OF PROPERTY OF GRANTEE. The Grantee shall make such arrangements to install the cable system with the owner of the property or easement where such cable system is to be located as may be appropriate. Grantee shall furnish City with evidence of such arrangements. All street work will require an excavation permit. Any poles, wires, cable lines, conduits or other properties of the Grantee to be constructed or installed in streets, alleys or other rights of way shall be so constructed or installed only at such locations and in such manner as shall be approved by the City acting in the exercise of its reasonable discretion. The Grantee must post a cash bond with the City in an amount to determined by the City Engineer during and until completion satisfactory to the City of said work and restoration of street and alleys including proper barricading, signing and temporary paving if required. The Grantee shall not install or erect any facilities or apparatus in or on other public property, places, or rights- of-way, or within any privately -owned areas within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the City, except those installed or erected upon public utility facilities now existing, without obtaining the prior written approval of the Public Works Executive Director or designated staff. In those areas and portion of the City where the transmission or distribution facilities of either the public utility providing telephone service or those of the utility providing electric service are underground or hereafter may be placed underground, then the Grantee shall likewise construct, operate and maintain all of its transmission and distribution facilities or other means of transmitting signals underground. For the purposes of this subsection, "underground" shall include a partial underground system, e.g. streamlining. The City shall not in any manner be responsible for any costs incurred by the Grantee in placing Grantee's facilities underground. The entire distribution system of the Grantee, including poles, posts, wires, cables, appurtenances and facilities shall be located or relocated and so erected as not to interfere with travel over, in , on or under any public way and with reasonable ingress and egress to abutting property. -19- 8/07/89 SECTION 14. REMOVAL OR ABANDONMENT OF FRANCHISE PROPERTY. In the event that (1) the use of any material part of the franchise property is discontinued for any reason for a Continuous period of twelve (12) months, (2) franchise property has been installed in any street or other dedicated public right of way without complying with the requirements of this Ordinance, or the franchise has been terminated, cancelled or has expired, Grantee, at its expense, shall at the demand of the City remove promptly from the street all franchise property other than any which the Public Works Executive Director may permit to be abandoned in place. In the event of any such removal, Grantee shall promptly restore to a condition satisfactory to the Public Works Executive Director the street or other dedicated public right of way or other public places in City from which the franchise property has been removed. Franchise property to be abandoned in place shall be abandoned in the manner prescribed by the Public Works Executive Director. Upon permanent abandonment of any franchise property in place, Grantee shall submit to the City Manager an instrument, satisfactory in form to the City Attorney, transferring to City the ownership of the franchise property abandoned. SECTION 15. CHARGES REQUIRED BY PUBLIC IMPROVEMENTS. Grantee shall, at its expense, protect, support, temporarily disconnect, relocate in the same street, alley, or public place, or remove from any street, alley or public place, any franchise property when required by the Public Works Executive Directory by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishment of street grade, installation of sewers, drains, and tracks or any other type of structures or improvements including, but not limited to, placing such structures and improvements underground by governmental agencies when acting in a governmental or proprietary capacity, or any other structures or public improvements; provided, however, that Grantee shall in all such cases have the privileges and be subject to the obligations to abandon franchise property in place, as provided in Section 14 herein. SECTION 16. FAILURE TO PERFORM STREET WORK. Upon failure of Grantee to commence, pursue or complete any work required by law or by the provision of this Ordinance to be done in any street, within the time prescribed and to the satisfaction of the Public Works Executive Director, the Director may, at its option, cause such work to be done and -20- 8/07/89 the Grantee shall pay to the City the reasonable costs thereof in the itemized amounts reported by the Director to Grantee, within thirty (30) days after receipt of such itemized report. SECTION 17. Franchise Fee. Any grantee granted a franchise under this Ordinance shall pay to the City, during the life of such franchise, a sum equal to five percent (5%) of the annual total gross receipts and in addition thereto such other sums as may be provided for elsewhere in this Ordinance. If, during any part of the franchise term, there is in effect a federal or state limit regulating the franchise fee percentage to a lesser amount, such limitation shall apply but only for that time period such limit is legally operational. Franchise fee payment by the Grantee to the City shall be made annually by delivery of the same to the City Treasurer. Franchise payments required hereunder shall in lieu of any business license, occupation tax or similar levy. The Grantee shall file with the City Auditor within ninety (90) days after the expiration of the Grantee's fiscal year or portion thereof during which such franchise is in force, statement of profit and loss certified to by a certified public accountant, or person otherwise satisfactory to the City Auditor, showing in detail the gross subscriber receipts, as defined herein, of Grantee during the preceding fiscal year or portion thereof. It shall be the duty of the Grantee to pay to the City, within fifteen (15) days after the time for filing such statements, the sum hereinabove prescribed or any unpaid balance thereof for the fiscal year or portion thereof covered by such statements. The City shall have the right to inspect and audit the Grantee's fiscal records. If any independent audit of the Grantee's records directed by the City shows a franchise fee error resulting in the underpayment of franchise fees by Grantee in excess of two percent (2%) of the amount actually due, the Grantee shall assume all reasonable costs for said audit. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further additional sums payable under this section or for the performance of any other obligation hereunder. Any neglect, omission or refusal by the Grantee to file said verified statement, or to pay said percentage in full, at the time or in the manner hereinbefore provided, which neglect, omission or refusal shall continue for more than fifteen (15) days following notice thereof to the Grantee from the City -21- 8/07/89 shall be grounds for the termination of this franchise as provided for in Section 21 hereof. SECTION 18. FAITHFUL PERFORMANCE BOND. Grantee shall, upon the acceptance of this franchise, file and maintain in full force and effect an acceptable corporate surety bond or such other security acceptable to the City in the amount of One Hundred Thousand Dollars ($100,000.00) or such other amount as is reasonably agreed upon between Grantee and the City, and conditional that in the event Grantee shall fail to comply with any one or more of the provisions of this Ordinance, then there shall be recoverable jointly and several from the principal and surety of such bond or other security any damages, suffered by City as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of property as prescribed by this Ordinance which may be in default, up to the full amount of the bond or other security, the condition to be a continuing obligation for the duration of the franchise granted by this Ordinance and thereafter until Grantee has liquidated all of its obligations with City that may have arisen from the acceptance of the franchise by Grantee or from its exercise of any privilege herein granted. In lieu of said bond or other security, Grantee may deposit cash with the City of Anaheim or in a federal or State of California bank or savings and loan association in the name of the City of Anaheim, but with interest reserved to the Grantee, on terms and conditions approved by the City Attorney. Neither the provisions of this Section, and any bond or other security accepted by the City pursuant thereto nor any damages recovered by City thereunder, nor any withdrawal from any cash deposit shall be construed to excuse faithful performance by Grantee or to limit the liability of Grantee under this Ordinance or for damages, either to the full amount of the bond or other security or otherwise. SECTION 19. LIABILITY AND INDEMNIFICATION. The provisions of this Section 19 are in addition to and amplification of Grantee's duties under Section 1405 of the City Charter. The Grantee shall pay all damages and penalties which the City may legally be required to pay as a result of passage of this Ordinance. These damages or penalties shall include damages arising out of the installation, development, operation, maintenance or expansion of the cable system authorized herein, whether or not any act or omission complained of is authorized, allowed, or prohibited by this Ordinance. -22- 8/07/89 The Grantee shall pay all expenses incurred by the City in defending itself with regard to all damages and penalties mentioned above. The expenses shall include all out-of- pocket expenses, such as attorney fees, and shall also include the reasonable value of any services rendered by the City Attorney or his assistants or by any employees of the City or by any attorney retained by the City for its defense. The Grantee shall maintain and pay for comprehensive auto and general liability insurance insuring the City and the Grantee with regard to damages charged against the City and/or the Grantee resulting from the development, installation, operation, maintenance or expansion of the cable system authorized by this ordinance in the amount of Five Million Dollars ($5,000,000.00) combined single limit per occurrence. Said insurance should contain coverage for: (1) blanket contractual liability (2) explosion (3) underground hazard (4) collapse The Grantee shall, concurrently with the filing of an acceptance of award of any franchise granted under this chapter, file with the City Clerk either a copy of such policy or a certificate of insurance evidencing the same in a form satisfactory to the City Attorney. Such policy of insurance, and any certificate evidencing the same, shall contain a contractual liability endorsement specifically extending the policy to cover the liability assumed by Grantee under this subsection, and shall also contain a provision that such policy may not be cancelled except after thirty (30) days' notice in writing to be given to the City Clerk. City would incur no potential liability to Grantee or Grantee's employees of the negligence of City or City's employees of the condition of City's property, streets or easements of this franchise were not granted. Grantee's hold harmless and indemnification duties arising pursuant to subsection (c) of Section 1405 of the City Charter shall extend to and include all claims, liabilities, and actions of all persons, including Grantee and Grantee's agents and employees, arising from the negligence of City or City's employees or the condition of City's property, streets or easements, including any claims for inverse condemnation based on damage to Grantee's system. -23- 8/07/89 SECTION 20. FILING AND INSPECTION OF PROPERTY AND RECORDS. At all reasonable times Grantee shall permit examination by any duly authorized representative of the City Manager, Public Works Executive Director or the City Auditor of all franchise property, together with any appurtenant property of Grantee situated within or without the City. Grantee shall also permit any duly authorized representative of the City Manager, Public Works Executive Director of the City Auditor to examine and transcribe any and all maps and other records kept or maintained by Grantee or under its control concerning the operations, affairs, transactions or property of Grantee. If any of such maps or records are not kept in the City, or upon reasonable request made available in the City, and if the City Manager, Public Works Executive Director or the City Auditor shall determine that an examination of such maps or records is necessary or appropriate to the performance of any of their duties, then all travel and maintenance expense necessarily incurred in making such examination shall be paid by Grantee. The Grantee shall prepare and furnish to the Public Works Executive Director and the City Auditor at the times and in the form approved by either of said officer, such reports with respect to its operations, affairs, transactions or property, as may be reasonably necessary or appropriate to the performance of any of the rights, functions or duties of the City or any of its offers in connection with the franchise. Such reports shall include a daily log of service requests, customer complaints, customer suggestions and the Grantee's response thereto, including the type, manner and time of response. The Grantee shall at all times maintain at its local office for public inspection, a file containing copies of all reports required by Federal Communications Commission (FCC) Rules and Regulation, Part 76, Subpart H (General Operating Requirements) as the same now exist or may hereafter be changed or amended. The Grantee shall submit copies of all reports required by Federal Communications Commission (FCC) Rules and Regulations Part 76, Subpart 1 (Forms and Reports) as the same now exist or may hereafter be changed or amended including, but not limited to, FCC Form 325, FCC Form 326, FCC Form 326-A and FCC Form 395. Said documentation must be submitted to the FCC, unless said requirement is waived from time to time by the City Manager. The Grantee shall give formal notice to the City that it has filed a signal registration statement or subsequently required equivalent registration or application with the -24- 8/07/89 Federal Communications Commission (FCC). Within ten (10) calendar days after filing such a statement with the FCC, the Grantee shall file two (2) copies of the statement with the City Manager unless said requirement is waived from time to time by the City Manager. SECTION 21. TERMINATION. (a) The City may terminate the franchise granted hereunder in the event of the willful failure, refusal or neglect by Grantee to do or simply with any material requirement or limitation contained in this Ordinance, or any material rule or regulation of the Council or City Manager validly and legally adopted pursuant to this Ordinance. (b) The City Manager may make written demand that the Grantee, do, or comply with, any such requirement, limitation, term, condition, rule or regulation. If the failure, refusal or neglect of the Grantee continues for a period of thirty (30) days following such written demand, the City Manager may place his request for termination of the franchise upon the Council meeting agenda. The City Manager shall cause to be served upon such Grantee, at least ten (10) days prior to the date of such Council meeting, a written notice of his intent to request such termination, and the time and place of the meeting. (c) The Council shall consider the request of the City Manager and shall hear any persons interested therein, and shall determine whether or not any failure, refusal or neglect by the Grantee was with just cause. (d) If such failure, refusal or neglect by the Grantee was with just cause, the Council shall direct the Grantee to comply within such time and manner and upon such terms and conditions as are reasonable. (e) If the Council shall determine such failure, refusal or neglect by the Grantee was without just cause, then the Council may pass its resolution declaring that the franchise of such Grantee shall be terminated and forfeited unless there be compliance by the Grantee within such period as the Council may fix. (f) The termination and forfeiture of any franchise shall in no way affect any of the rights of the City under the franchise or any provision of law. (g) In the event of any unlawful holding over after the expiration or other termination of any franchise granted hereunder, without the prior consent of the City, expressed by resolution, the Grantee shall pay to the City reasonable -25- compensation and damages, of percent (100%) of its total Period. (h) Any and all operation of Grantee's powers, privileges, and establish, or fix any c declared by the City franchise hereunder to x the benefit of the City not less than gross revenues 8/07/89 one hundred during said minimum standards 'governing the gable system and any and all rights, authorities of the City to determine, f the same, are each and all hereby and by any Grantee accepting any e contractual in nature and to be for and all subscribers situated therein. SECTION 22. MISDEMEANORS. (a) It shall be unlawful for any person, firm or corporation to make any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a franchised cable system within the City, for the purpose of taking or receiving television signals, radio signals, pictures, programs or sound. (b) It shall be unlawful for any person, firm or corporation to make any unauthorized connection whether physically,m electrically, acoustically, inductively or otherwise, with any part of a franchised cable system within the City, for the purpose of enabling himself or others to receive any television signals, radio signals, pictures, programs or sound, without payment to the owner of said system. (c) It shall be unlawful for any person, without the consent of the owner, to willfully tamper with, remove or injure any cable wires or equipment used for distribution of television signals, radio signals, pictures, programs or sound. (d) It shall be a misdemeanor punishable by a fine of not to exceed One Thousand Dollars ($1,000.00), or by imprisonment for not to exceed six (6) months, or both, for any person to violate any of the provisions of this Section. Each such person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this Ordinance is committed, continued, or permitted by any such person and shall be punished accordingly. SECTION 23. ACQUISITION. In the event the City wishes to acquire part or all of the cable system either by purchase or through the exercise of the right of eminent domain, City and Grantee will each appoint one appraiser to establish the value of the cable -26- 8/07/89 system to be acquired by City. The two appraisers will select a third appraiser who will be chairman of the appraisal board. The board will, by majority vote, determine the value of the system to be acquired by City. This value, which absent franchise termination pursuant to Section 21, shall reflect the fair market value of the cable system as a going concern, will be final and binding on both City and Grantee and will be used as the purchase price or just compensation in an eminent domain proceeding between City and Grantee. Nothing herein shall be construed to limit City's ability to abandon any eminent domain proceeding at City's sole election. SECTION 24. FILINGS AND COMMUNICATION WITH REGULATORY AGENCIES. In addition to the filing requirements of Section 20, copies of all petitions, applications, reports and communications of all types submitted by Grantee to the Federal Communications Commission, Securities and Exchange Commission, California Public Utilities Commission, or any other federal or state regulatory commission or agency having jurisdiction over any matter affecting operation of Grantee's cable system shall be submitted simultaneously to the City by delivery to the City Clerk who shall advise interested City departments of such filing. A copy of each document filed with the City Clerk in accordance with this Section shall be delivered to the City Attorney. SECTION 25. TECHNOLOGICAL DEVELOPMENTS. The City and Grantee shall hold a system review session upon the sixth and tenth anniversary of the franchise award. City shall conduct a community needs assessment of a representative sampling of system subscribers six (6) months prior to commencing said review. Grantee shall provide City, to the extent permitted by law, a mailing list of subscribers and shall consult with the City on topics to be covered by this assessment. Results of said assessment will be shared with the Grantee at least two (2) weeks prior to commencement of said review session. At the review session the review shall include but not provided, system application of performance, and customer service problems or opportunities created more cable operators in the City. -27- topics for discussion and be limited to, services new technologies, system franchise compliance, and by the presence of two or 8/07/89 No later than ninety (90) days after the conclusion of the review session, City shall issue findings of any deficiencies. A deficiency shall be deemed to exist when the Grantee is not performing consistent with the terms of this franchise or when the community needs assessment has identified one or more needs which are not being met by Grantee and could reasonably be excepted to be met by the Grantee. After reviewing the evidence and good faith negotiations between the parties, the City may require, without Grantee's consent, the Grantee to add to, delete from, or modify the existing system and/or system design so long as the Grantor finds: (1) Said change(s) has been identified as a significant need in the community assessment; (2) The needs) cannot be met at least as well by an alternative business or commercial entity at a reasonable price; (3) The present system cannot meet the specified need either as presently operating or with some alternative modification consistent with the franchise or which imposes a significantly lesser economic burden on Grantee; (4) The Grantor finds that said change will meet the community need as defined in the Community ascertainment; (5) Said change will not impose an unreasonable financial hardship on Grantee taking into account the Grantee's amortized cost of the investment required by this franchise and ordinance and Grantee's total revenues and profits from this cable system and any other cable system of which the Anaheim system is an operational subset. (6) Said change(s) reflects the services, technology, and practices generally provided by other cable operators in the County of Orange. In the event that said change requires a major redesign or engineering or reconstruction of the system throughout the City, the Grantee shall be permitted two (2) years to implement said change, unless mutually agreed otherwise. -28- 8/07/89 Grantee shall be entitled to an automatic franchise extension of three (3) years for all material changes not otherwise required by this ordinance. SECTION 26. OTHER COSTS. The Grantee shall assume the following costs upon the Grantee's filing of acceptance of this franchise associated with granting a franchise and verifying acceptable initial CATV system performance: (a) All costs of publication of this franchise as such publication is required by law. (b) All costs associated with the City employing an independent consultant and/or attorney to assist with development of the franchise ordinance and request for proposal, evaluate proposals received and assist the City in any negotiations related to the grant of a franchise. (c) osts of an independent engineering firm to witness the design, installation and initial proof of performance testing of the system as a verification of the Grantee's adherence to the terms and conditions of the franchise.If said proof of performance tests show that the cable television system is a significantly below the performance standards outlined in Grantee's proposal and elsewhere in this franchise, the City shall give notice thereof to Grantee and Grantee shall have thirty (30) days to correct said deficiency. If Grantee fails to correct said deficiency within this time, the City may request mutually agreed upon independent engineers to demonstrate, at Grantee's cost, the appropriate correction to the Grantee. Grantee shall then have sixty (60) days or other approved reasonable time required, to correct deficiency. If deficiency still has not been corrected, the City shall have the option to terminate this franchise subject to the City's right, requirements, and restrictions regarding the termination of this franchise stated elsewhere within. SECTION 27. PROPOSAL. Grantee has submitted a Cable television Franchise Application and Proposal for the City of Anaheim, on file in the office of the City Clerk. Each and every provision of said Application and Proposal is hereby incorporated by reference in this Ordinance as though the same were set out in full except to those which conflict with its express terms, all provisions of said proposal shall be binding upon Grantee. -29- 8/07/89 SECTION 28. CUSTOMER SERVICE STANDARDS. Grantee agrees to and shall be bound by the specific customer service standards included as Exhibit B to this Ordinance and made a part hereof. SECTION 29. OTHER TAXES AND FEES. Grantee agrees to pay all legally required fees and taxes, including possessory interest taxes, if any shall be levied against it or the City due to the franchise granted herein. SECTION 30. FORCE MAJEURE. In the event Grantee's performance of any of the terms, conditions, or obligations required by this Ordinance is prevented by a cause or event not within Grantee's control or reasonably foreseeable by Grantee, such inability to perform shall be deemed excused and no penalties or sanctions shall be imposed as a result thereof. For the purpose of this Section, imposed as a result thereof. For the purpose of this Section, causes or events not within the control of Grantee shall include, but are not limited to, acts of God, strikes, sabotage, riots or civil disturbances, restraints imposed by order of a governmental agency or court, inability to obtain permits, explosions, acts of public enemies, and natural disasters such as flood, earthquakes, landslides, and fires. SECTION 31. REGULATION OF RATES AND SERVICES. The City Council reserves the power and right at all times for the duration of this franchise to require Grantee to conform to reasonable rules and regulations hereafter lawfully adopted by the City Council including the power to regulate and establish reasonable rates and charges by Grantee for services rendered under this Ordinance. This provision is intended to enable the City to regulate rates and services of Grantee in the event of, and consistent with, changes in state or federal law, which would permit City to regulate such matters. Any rate regulation of City shall not be effective until Grantee has received at least thirty (30) days notice of City's intention to consider such regulations at a public hearing. SECTION 32. CATV INTERCONNECT STANDARDS. The Grantee shall make all reasonable efforts to electrically interconnect the Anaheim CATV system with CATV systems to adjacent communities for the purposes of sharing locally -30- 8/07/89 originated public and educational programming. Such an interconnect shall be effected by coaxial cable, fiber optic cable, microwave or other bi-directional signal transportation means as appropriate to permit programming interchange in compliance with the technical provisions of the City's CATV franchise ordinance. Within the first two (2) years of the life of the Anaheim CATV franchise, the Grantee shall contact all franchised operators in the communities immediately adjacent to Grantee's franchise area in Anaheim for the purposes of exploring and securing a mutually acceptable system interconnect agreement and report the results of said activity to the Anaheim City Manager or other designated City representative. Said report shall state each contacted operator's name, city and response, list all programming available to Anaheim residents via such an interconnect agreement as well as list programming to similarly be transmitted from Anaheim to the adjacent community and explain the substance of the governing business agreement reached with the other operators. If an adjacent operator(s) is not responsive to the Grantee's inquiry, a letter report, stating that all reasonable attempts to gain an interconnect agreement were made but unsuccessful, shall similarly be filed with the City of Anaheim. In the case of adjacent new CATV systems constructed after the Grantee's Anaheim system, the Grantee shall have a period of six (6) months after the new system becomes operational to make the required inquiries and attempt at an interconnect agreement. SECTION 33. ENVIRONMENTAL MITIGATION. (a) If, and to the extent, that Grantee, or any affiliated entity, has received, by way of contract, agreement, or practice, whether or not said is in writing or oral, an exclusive right to construct and operate a cable television system, or any subsidiary acts thereof, within any subdivisions located within the service area, or if Grantee obtains any such exclusive rights by said means in the future, Grantee hereby, pursuant to this Agreement and without any further act of the parties, assigns those exclusive rights to the City for the consideration contained in this Agreement. (b) Upon the assignment of any rights to the City pursuant to Subparagraph (a) above, the City shall assign those rights to all franchised cable operators authorized to service the area in question and all cable operators otherwise allowed to operate pursuant to final order of a court of competent jurisdiction. -31- 8/07/89 (c) Grantee shall, as an express condition of any agreement with a developer subject to assignment pursuant to Subparagraph (a) above, provide in said agreement that said rights may and shall be assigned to the City as provided pursuant to Subparagraph (a) above. Grantee expressly agrees that if, and to the extent, the City is required to bring an action to enforce the provisions of Subparagraph (a) of this Agreement, the City shall have available to it the remedies of injunction relief and specific performance without the prerequisite of making any of the normal showings required for the invocation of such remedies including, but not limited to, the nonavailability of money damages. SECTION 34. APPEAL OF FRANCHISE REQUIREMENTS During the period of franchise in effect, the Grantee may obtain from the City modifications of the requirements in such franchise (1) in the case of any such requirement for facilities or equipment, including public, educational, or governmental access facilities or equipment, if the Grantee demonstrates that (a) it is commercial impracticable for the Grantee to comply with such requirement or said requirement, alone or in conjunction with other requirements, deprives the Grantee of a reasonable return on its investment and (b) the proposal by the Grantee for modification of such requirement is appropriate because of said conditions or (2) in the case of any such requirement for services, if the Grantee demonstrates that the mix, quality, and level of services required by the franchise at the time it was granted will be maintained after such modification. Grantee shall file any request for modification of franchise requirements in writing with the City accompanied by all evidence, including but not limited to economic studies and financial records supporting said claim, in writing with the City Clerk. Grantee shall provide to City all additional documents and information requested by the City which are reasonably related to the Grantee's claims. The burden of proof in this proceeding shall be on the Grantee. Upon receipt of such application, the City shall schedule a public hearing upon the application and render a final decision upon the application within 120 days after receipt of such request by the City unless such 12 day period is extended by mutual agreement of the cable operator and the City. Said proceeding shall extend to the Grantee all due process procedural rights otherwise available under law. For the purposes of this Section, the term "commercial and practicable" means, with respect to any requirement applicable to a cable operator, that it is commercially impracticable for the operator to comply with such requirement as a result of a change in conditions with is -32- 8/07/89 beyond the control of the Grantee and the nonoccurrence of which was a basic assumption on which the requirement was based. Grantee shall comply with all provisions of this franchise unless and until said provision(s) is determined to be commercially impracticable or otherwise modified pursuant to the procedure above. If, and the extent, said modification is granted, or ultimately ordered by a court of competent jurisdiction, the original provision of the franchise shall be deemed repealed, the franchise deemed amended to include the modified provision, and the other provisions of the franchise shall remain in full force and effect. SECTION 35. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is, for any reason, held invalid on unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions hereof. SECTION 36. CERTIFICATION. The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be printed once within fifteen (15) days after its adoption in the Anaheim Bulletin, a newspaper of general circulation, printed, published and circulated in said City, and thirty (30) days from and after its final passage, it shall take effect and being full force. THE FOREGOING Ordinance is approved and adopted by the City Council of the City of Anaheim this 1st day of August , 1989. ATTEST: City Clerk of the City of Anaheim -33- CLERK 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. 5057 was introduced at a regular meeting of the — City Council of the City of Anaheim, held on the 25th day of July, 1989, and that the same was duly passed and adopted at a regular meeting of said City Council held on the 1st day of August, 1989, by the following vote of the members thereof: AYES: COUNCIL MEMBERS: Daly, Ehrle and Pickler NOES: COUNCIL MEMBERS: Kaywood and Hunter ABSENT: COUNCIL MEMBERS: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Ordinance No. 5057 on the 10th day of August, 1989. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 10th day of August, 1989. 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 Ordinance No. 5057 and was published once in the Anaheim Bulletin on the 11th day of August, 1989. CITY CLERK OF THE CITY OF ANAHEIM EXHIBIT "A" FRANCHISE AREA The legal description of the Franchise Area is as follows: A. PARCEL MAP 87-363, RECORDED SEPTEMBER 17, 1988, BOOK 236, PAGE 21, 7. and B. PARCEL MAP 86-215, RECORDED JANUARY 30, 1987, FILED IN BOOK 217 OF PAGES 32 THROUGH 42, INSTRUMENT 87-054941. and C. PARCEL MAP 87-210, RECORDED APRIL 21, 1988, BOOK 231, PAGES 42 THROUGH 97, INSTRUMENT 88-182505. EXHIBIT "A" Page 1 of 1 EXHIBIT "B" SERVICE STANDARDS a. Service Standards: Grantee shall establish subscriber service and grievance standards which shall, at minimum, provide for the following commercially practicable procedures: (1) Grantee shall provide a local, toll-free telephone service number for consumer complaints. (2) Grantee shall connect a weekly average of 98% of all telephone callers within two minutes, and 100% of all telephone callers within 15 minutes, to a live personal representative of the Grantee during Grantee's key service response period, defined as a total of fifty- four (54) hours per week scheduled by Grantee to include not less than eight (8) eight house per day from Monday to Friday and not less than four (4) hours on Saturday. During outages or billing computer errors which directly affect five percent (5%) or more of Grantee's customer based in the cable system, Grantee's service responses shall not be included in such calculation, if Grantee employs reasonable equipment and procedures to provide to telephone callers during such period, pending connection with a live personal representative, a recorded message. Grantee shall not be responsible for nonperformance which it demonstrates is caused by equipment or operating problems and limitations of the telephone public utility system serving the City of Anaheim. (3) Grantee shall respond to complaints promptly and resolve or commence diligent efforts to resolve complaints within twenty-four (24) hours, not including delays requested by the complainant's household. Grantee shall maintain records and reports within two business days to the City regarding any complaint which takes longer than one week to resolve, not including any delay which is occasioned at the request of the complainant, and shall demonstrate to the City continuing diligent efforts until the problem is resolved. EXHIBIT "B" Page 1 of 6 (4) Grantee shall provide at least five (5) days written notice prior to discontinuance of service. If Grantee has improperly discontinued service, it shall provide free reconnection. (5) Grantee shall afford subscribers with a three-day right of rescission for ordering cable services, except that such right of rescission shall end upon initiation of physical installation on the subscriber's premises. (6) All personnel, agents and representatives of the Grantee, including subcontractors, shall carry photo -identification badges when acting in public on behalf of the Grantee. (7) Grantee shall provide significant advance notice, in light of the circumstances, prior to entry whenever desiring to enter any private property within the City of Anaheim other than within its rights under an easement. (8) Grantee shall provide subscribers, and potential subscribers with whom Grantee makes personal contact, with a complete list of service offerings, options, prices, and credit policies. It shall provide Grantee's telephone number for subscriber complaints, prominently displayed in each monthly bill. Grantee shall provide subscriber with monthly schedules of programming on premium channels, and on public, educational and governmental access channels if available. (9) Grantee shall offer subscribers a choice of morning or afternoon service visits and shall make reasonable offers to accommodate a subscriber's stated choice. d. Enforcement and Subscriber Credits. Grantee shall give monetary credit against a subscriber's account or reduce its monthly service fees as provided under the following circumstances: (1) in the event of a 24-hour service outage, 10% of each affected subscriber's monthly service fees shall be credited back to the subscriber. (2) in the event of a 48-hour service outage, 20% of each affected subscriber's monthly service fees shall be credited back to the subscriber. EXHIBIT "B" Page 2 of 6 (3) in the event of a service outage exceeding 48 hours, each affected subscriber's monthly service fees shall be further credited back to the subscriber on a daily prorated basis for the duration of the outage. (4) in the event of a two (2) month period of substantial failure by Grantee to meet the subscriber service standards set forth in this Exhibit B, Grantee shall reduce all subscribers' monthly service fees by 25% until all material performance standards are substantially met. (5) in the event of a service charge credit or reduction pursuant to any of (1) through (4) above, such credit or reduction shall be separately stated and described as such on each affected subscriber's monthly statement. C. Liquidated Damages. (1) The City shall in its sole discretion be entitled to impose upon assignee either the sanctions provided in Section (c) above, or the liquidated damages provided in this Section (d), in the event of any instance of violation of the standards provided in this Exhibit E. (2) For each instance after written notice from the City and failure by Grantee to cure, of breach of any of the construction and service commencement requirements provided in the Ordinance ich are otherwise applicable to Grantee, or for failure to take corrective action with respect to such breach, the City may assess Grantee liquidated damages as follows: $500 (3) For each instance after written notice from the City and failure by Grantee to cure, of breach of any of the Grantee's obligations pursuant to the cable service requirements and standards which are otherwise applicable to Grantee, or for failure to take corrective action with respect to such breach, the City may assess Grantee liquidated damages as follows: $250 (4) For each instance after written notice form the City and failure by Grantee to cure, of breach of any of the Grantee's material obligations with respect tot he technical performance standards and EXHIBIT "B" Page 3 of 6 the operational standards provided by the franchise ordinanceGrantee, or for failure to take corrective action with respect to such breach, the City may assess liquidated damages from Grantee as follows: $150 d. Procedural Safeguards. If the City Manager determines that the Grantee is liable for any sanctions pursuant to Sections (b) or (c) above, he or she shall issue to Grantee by certified mail a Notice of Intention to Impose Sanctions (the "Notice"0. The Notice shall set forth the specific basis for the sanctions, and shall inform the Grantee that sanctions will be assessed as specified in the Notice unless the Notice is appealed for arbitration before an arbitrator chosen by mutual agreement of Grantee and the City, or at either party's election before a panel of those arbitrators (one chosen by Grantee, one chosen by the City and the third chosen by the other two arbitrators), who in either event shall conduct the arbitration pursuant to the rules of the American Arbitration Association and shall render a final, binding decision in writing. If the Grantee desires such Arbitration, it shall send a written Notice of Appeal by certified mail to the City Manager within fifteen (15) days of the date on which the Grantee received the Notice from the City Manager. The arbitration fees and costs shall be paid equally by the City and Grantee, except that the arbitrator(s) may award such fees and costs to a party if it is specifically determined by the arbitrator(s) that such party is the prevailing party in the arbitration. e. City Council Hearings. If Grantee requests arbitration be provided in d, above, the City Council may, by written notice to Grantee prior to the completion of selection of the arbitration panel, nevertheless cancel such arbitration and respond to Grantee's Notice of Appeal by giving public notice followed by public hearings and the City's decision regarding the appeal. The hearing on the Grantee's appeal shall be within thirty (30) days of the date on which the City cancelled arbitration unless mutually extended by the City and Grantee. After hearing, and based on the facts before it, if the City Council finds (a) that an extension of time for cure of violation, or other relief, should be granted, or (b) that there was never a violation justifying the imposition of sanctions, then it shall not aside the City Manager's imposition of sanctions. If the City finds that the facts warrant the imposition of sanctions, such finding shall constitute the City's final determination regarding such sanctions. The City may waive all or any portion of a sanction imposed, and in considering whether or not to do so, the City shall consider, without limitation, the number and frequency of prior breaches, the difficulty of cure and the speed and diligence under the circumstances with which the Grantee cured such breach or EXHIBIT "B" Page 4 of 6 breaches. The City's decision may be contested by arbitration as provided in (d) above, in which event the City shall not be entitled to cancel such arbitration as otherwise provided in this Section (e), and in which event Grantee shall pay 100% of the arbitration fees. f. Force Measure. The subscriber credits and liquidated damages provisions of (b) and (c) above shall not apply in the case of any performance defects caused by intervening circumstances or events beyond Grantee's reasonable control. Such intervening circumstances or events shall include, for example and without limitation, fires, floods, earthquakes, natural disasters, acts of God, wars, riots, strikes, commercial unavailability of parts or equipment, extremely inclement weather, governmental acts or prohibitions, and delays requested by the property owner or manager. g. Subscriber credits and service fee reductions shall not apply, and liquidated damages shall not be assessable, in respect of any standards or requirements otherwise applicable to Grantee which have been preempted by controlling legal authority. 5/124/012377-0034/013 EXHIBIT "B" Page 5 of 6