Loading...
O1407 . . C~:RHM:rmcable4/ca CIty CouncIl MeetIng 4-28-87 Santa MonIca, California ORDINANCE NUMBER 1407 (CCS) (City CouncIl Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF S~NTA MONICA ADDING CHAPTER 13 TO ARTICLE VI OF THE SANTA MONICA MUNICIPAL CODE TO PROVIDE FOR THE ESTABLISHMENT AND GRANTING OF FRANCHISES OR PRIVILEGES FOR THE CONSTRUCTION, MAINTENANCE, AND OPERATION OF CABLE COMMUNICATIONS OR CABLE TELEVISION SYSTEMS AND FURTHER PROVIDING FOR THE CONTINUING REGULATION AND ADMINISTRATION OF THESE FRANCHISES AND THE ACTIVITIES RELATIVE TO THEM THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 13 is hereby added to ArtIcle VI of the Santa Monlca MunIcIpal Code to read as follows: CHAPTER 13 - CABLE ORDINANCE Subchapter 13A. General PrOVIsions and ResponsibilIties. SECTION 63000. Intent. The CIty of Santa MonIca fInds: ( a ) The development of cable television and communications systems has the potential of having great public benefit and Impact upon the reSIdents of Santa Monica. (b) Because of the complex and rapidly changlng technology associated wIth cable teleVlSlon, the public convenience, safety, and general welfare can best be served by 1 . . establIshIng regulatory powers in the CIty or in such persons as the City shall deSIgnate. (c) This Chapter provides for and specifies the means to attaIn the best possIble public interest and publIC purpose In these matters and any franchise issued pursuant to this Chapter shall be deemed to Include this finding as an Integral part thereof. SECTION 63001. DEFINITIONS. For purposes of this Chapter, the following words and phrases shall have the follOWIng meanings: ~aencv SubscrIber. - - A government or publIC agency, school, or deSIgnated non-prOfit organIzation Wh1Ch receives a serVIce from a cable communications system. Basic Cable SerV1ce. Any service tier which includes the retransmission of local telev1sion broadcast signals. Basic Radio Serv1ce. The prOVIsion of audio programs to all subscrIbers at a monthly rate. Broadc~st Siqn~l. A television or radIO slgnal that is transmitted over the air to a wide geographic audience and 1S recelved by a cable communIcatIons system and retransmitted to subscribers. Cable Communications Svstem. A facility, consistIng of a set of closed transmIssion paths and associated signal generation, receptIon, and control eqUIpment, that IS designed to prOVIde cable service WhlCh Includes video programming and 2 . . which is provided to multiple subscribers wIthin a community, but such term does not include: (1) A facility that serves only to retransmit the teleVIsion sIgnals of one or more television broadcast statIons. (2) A facility that serves only subscribers in one or more multIple unIt dwellIngs under common ownership, control, or management, unless such facility uses any public right-ot-way. (3) A facilIty of a common carrIer, except that such facilIty shall be consIdered a cable system to the extent such faCIlity is used 1n the transmission of vIdeo programming dIrectly to SUbscribers. (4) Any facilities of any electrIc utIlIty used solely for operatIng Its electrIC utility system. Cablecast Slonal. ^ nonbroadcast signal that originates within the faCIlities of the cable communications system. Cable-mll~. A lInear mile of strand-bearIng cable as measured on the street or easement from pole to pole or pedestal to pedestal. Cable Service. The total of the follOWIng: (1) The one-way transmission to subscribers of vIdeo programming or other telecommunIcatIons service. (2) SubscrIber interactIon, if any, which IS requIred for the selection of such video programmIng or other programming service. 3 e e Channel or Cable Channel. 1\ portion of the electromagnetlc frequency spectrum WhlCh is used in a cable system and WhlCh lS capable of dellverlng a television channel as defined by the Federal Communlcations CommiSSlon. CIty. The City of Santa Monica. Citv Counc~l. The governlng body of the City of Santa Monica. Commenceme~t 9f Construct~on. The tIme and date when constructlon of the cable communIcations system is considered to have commenced, WhICh shall be when the fIrst connection IS physically made to a utIlIty pole, or undergrounding of cables is InitIated, after prellmlnary engineering (strand mapping) and after all necessary permlts and authorizatlons have been obtalned. Commencement Qf OoeratiQn. The tIme and date when operatIon of the cable communIcations system is considered to have commenced WhICh shall be when sufficient distributlon facilitles have been Installed so as to permit the offerIng of full serVlce to a dwellIng unit located within the franchise area and such services are actually subscribed to by a reSIdent of the franchise area. CommerCIal S~b~~rlber. A subscriber who receives a serVIce In a place of business, where the serVIce may be utilized in connectIon with a bUSIness, trade, or profession. Commercial Use Channel(s). The channel capacity designated for commercial use as defIned and required by federal law. " e . Comoletion of Construction. The point in tlme when all distrlbution facilltles have been installed by the Grantee so as to permIt the offering of cable serVlce to all of the potential subscribers 1n the franchise area, as well as the proVlSlon, 1n an operat1onal state, of any facilities required by the franchise agreement. Co~verter. An electronic deVIce which converts slgnal carriers from one form to another. Dedlcate. To make avaIlable channel space or equipment for exclusive use of the designated area, subject to the authority of the City Council to authorize reassignments of channels. Dwellln9 Unit. This shall have the same meaning as provided in California Code of Civil Procedure SectIon 704.710. FCC. The Federal Commun1cations Commission and any legally appointed or elected successor. Franch1se. An Initial authorization, or renewal thereof issued by a franchising authority, whether such authorization 1S designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, wh1ch authorizes the construction or operatlon of a cable system. Franchise Aareement. A franch1se award ordinance, or a contractual agreement] containing the speCIfIC prOVISions of the franchise granted, Including referenced specifications, franchise applications] franchIse requirements, ordinances, and other related materials. 5 -""'-- e e 'r~n~~~se fee. Any tax, fee, or assessment of any klnd imposed by a franchIsing authority or other governmental entity on a Grantee or cable subscriber, or both, solely because of thelr status as such. The term "franchise fee" does not lnclude: (1) Any tax, fee, or assessment of general applicabilIty (includIng any such tax} fee, or assessment lmposed on both utllitles and cable operators or thelr services but not Including a tax, fee, or aSsessment which is unduly dIscrlmlnatory agaInst Grantee or cable subscribers). (2) Capital costs whlch are required by the franchise to be lncurred by Grantee for public, educatIonal, or governmental access faCIlIties. (3) Requlrements or charges incidental to the awarding or enforcIng of the franchlse, includlng payments for bonds, securIty funds, letters of credIt, lnsurance, indemnIficatIon, penaltIes, or lIquidated damages. (4) Any fee imposed under Title 17, UnIted states Code. Grantee. Any person receiving a franchise pursuant to this ordInance and under the grantlng franchIse ordinance, and Its lawful successor, transferee, or aSSIgnee. Gross Revenues. ~ll revenues receIved by the Grantee from all sources of operations of the cable communications system, except that any sales, eXCIse or other taxes collected for direct pass-through to local, state, or federal government shall not be Included. 6 e . InItIal Service Area. The area of the City WhICh will receIve service initiallYJ as set forth In the franchise agreement. If not stated otherwise in the franchise agreement, the initial service area shall consist of the entIre CIty. Installation. The connection of the system from feeder cable to subscrIbers' termInals, and the provls1on of service. Local OrlqlnatiQP Channel. Any channel where the Grantee is the prImary designated programmer, and provIdes video programs to subscribers. MonItoring. Observing a communication signal, or the absence of a signal, where the observer is neither the subscriber nor the programmer, whether the signal IS observed by vIsual or electronIC means, for any purpose whatsoever. MonitorIng shall not Include systemwide, non-indiVIdually addressed sweeps of the system for purposes of verifying system integrity, controlling return paths, transmiSSIons, or bIlling. Nonbroadc~st Signal. A signal that IS provided by a cable communIcations system and that is not Involved in an over-the-alr broadcast transmIssion path. Ooen Ch~nnel. Any channel that can be received by all subscribers, wIthout the necessity for special equipment. Pay-Cable or P~y-TeleVlsIon. The delivery to subscribers, over the cable communications system, of televisIon sIgnals for a fee or charge to subscrIbers over and 7 e . above the charge for basic cable servlce, on a per program, per channel, or other subscrlption basls. Penetration. The result expressed in the percentage obtained by dividing the total number of dwelling units in the franchise area into the number of subscrlbers receiving service. Person. Any indIVIdual, partnership, association, JOInt stock company, trust, corporation} or organizatlonal entity. Private Channel or Closed Circu~t ~hannel. ~ny channel which is available only to subscrIbers who are prOVIded wlth speclal converter or terminal equipment to receive signals on that channel. Proqramme~. A person or entity who or WhICh produces or otherwise provldes program materlal or informatlon for transmlssion by video, audlo, digital, or other signals, either lIve or from recorded tapes or other storage media, to subscribers, by means of the cable communications system. Public. Educatlonal or Government Access Facillties or PEG ~ccess FaCilities. The total of the following: (1) Channel capaclty deSignated for public, educatlonal, or governmental use. (2) Facilities and equipment for the use of such channel capaclty. ~~G. Public, educatlonal, or government. ReSldent. Any person reslding in the City as otherwise deflned by applicable law. 8 e e Residential Aubacrlbar. A subscriber who receives a serVIce In an IndIVIdual dwellIng unIt, where the serVIce IS not to be utIlIzed In connectIon with a busIness, trade, or profess1.on. Sale. Any sale, exchange, barter, or offer for sale. School. 1o.ny accredited non-prOfIt educational InstItutIon Including primary and secondary schools, colleges, and universities, both publIC and private. SerVIce Area or Franchise Area. The entIre geographIC area WIthin the CIty deSIgnated in a franchIse agreement to receIve cable serVIce. SerVIce Tier. A category of cable service or other serVIces provIded by a Grantee and for WhICh a separate rate IS charged by the Grantee. Street. Each of the following WhICh have been dedicated to the public or hereafter dedicated to the publIC and maintained under public authority or by others and located WIthin the CIty lImits: streets, roadways, highways, avenues, lanes, alleys, sidewalks, easements, rightS-Of-way, and similar public property and areas that the city shall permit to be included WIthIn the definitIon of street from time to tIme. SubsCf1.ber. Any person, fIrm, corporation, or other entity who or WhICh elects to subscrIbe to, for any purpose, a serVIce prOVIded by the Grantee by means of or in connection with the cable communicatIons system. 9 e e Tapping. Observing a two-way communications Signal exchange, where the observer 1S neither of the communicating parties, whether the exchange is observed by Visual or electronIC means, for any purpose whatsoever. Two Wav CommunicatIons. The transmlSSlon of telecommunIcations SIgnals from subscriber locations or other pOInts throughout the system back to the system's control center as well as transmISS10n of signals from the cont~ol center to subscrIber locations. Subchapter 13B. Grant of Franchise. SECTION 63002. Franchise Reaulrements. (a) Franchlse Reaulred. No cable communications system shall be allowed to occupy or use the streets In the franchise area or be allowed to operate without a franchise in accordance with the proviSIons of thIS ordinance. (b) Franchise NonexclUSIve. ~ny franchise granted shall be nonexclusive. CIty speCifically reserVes the right to grant, at any tIme, such addItIonal franchises for a cable communications system as it deems appropriate. (c) EstablIshment of FranchIse Reaulrements. The City may establish appropriate reqUIrements for new franchIses or franchIse renewals, and may modify these requirements from time to time to reflect changing condltlons and state of art in the cable Industry. Such reqUirements shall not be 10 . . retroactive to tr~nchlse8 then in effect, but shall become applicable when the franchlse is renewed, or when Grantee's service area 1S expanded. (d) Franchise Area. The City may grant a franchise for all or any defIned portlon of the CIty. The serVlce area shall be the entire area defIned in the franchise agreement. The inItial serVIce area shall be that portion of the franchise area scheduled to receive Initial service, as stated in the franchise agreement. SECTION 63003. AODl1catIons for Franchise. Each applIcatIon for a franchise to construct, operate, or maIntaIn any cable system In this City shall be filed with the City Clerk. An applicatIon shall Include, but shall not be limited to, the fOllOWIng InformatIon: (a) The name, address, and telephone number of the applIcant. (b) A detailed statement of the corporate or business entity organIzatIon of the applIcant, including, but not limited to, the following and to whatever extent required by the City: (1) The names, resldence and business addresses of all officers, directors, and aSSOCIates of the applicant. (2) The names, reSIdence and bUSIness addresses of all officers, persons, and entitles having any share of the ownership of the applicant of one percent or more and the respective ownership share of each such person or ent1ty. 11 e It (3) The names and addresses of any parent or subsidiary of the appllcant, namely, any other business entlty own1ng or controll1ng appl1cant 1n whole or 1n part or owned or controlled in whole or in part by the applicant, and a statement describIng the nature of any such parent or subsid1ary buslness entity includ1ng, but not lim1ted to, cable systems owned or controlled by the applicant, its parent, and subsidiary and the areas served thereby. (4- ) ~ detailed descr1ption of all previous experience of the applIcant in providlng cable teleV1sion system serVIce and 1n related or simllar fields. (5) A detailed and complete financial statement of the applIcant, certified by an Independent certifIed public accountant, for the fIscal year next preceding the date of the applicatlon hereunder, or a letter or other acceptable evidence in writing from a recognized lendlng inst1tution or fund1ng source, addressed to both the applicant and the Council, setting forth the basis for a study performed by such lendIng InstItutlon or fundIng source, and a clear statement of its intent as a lending lnstltution or fundIng source to provIde whatever capltal shall be required by the applicant to construct and operate the proposed system in the CIty, or a statement from an Independent certifled publIC accountant, certIfYIng that the applicant has avallable sufficlent free, net, and uncommitted cash resources to construct and operate the proposed system In thiS CIty. 12 . A e ( 6 ) detailed flnancial plan (pro forma) descrIbing for each year of the franchise, projected number of subscribers, rates, all revenues, operating expenses, capital expendltures, deprecIation schedules, Income statements, and a sources and uses of funds statement. All Informatlon 1s to be presented In the format required by City. (7) A statement identifYing, by place and date, any other cable system franchises awarded to the applicant, and any parent, or Subsldlary corporation; the status of sald franchlses wlth respect to completlon thereof; the total cost of completlon of such franchised systems; and the amount of applicant's and its parent's or subsidiary's resources commltted to the completlon thereof. (8) A statement ldentlfying franchises owned or operated by applicant, its parent or Subsidiary corporation, that have been revoked or licenses terminated by the Federal CommunIcatIon CommIssion or franchising entIty. (c) A detailed descriptlon of the proposed plan of operatlon of the applicant WhlCh shall include, but not be limited to, the followlng: (1) A detalled map Indicatlng all areas proposed to be served, and a proposed time schedule for the installation of all equipment necessary to become operational throughout the entire area to be served. (2) A statement or schedule setting forth all proposed classlflcatlons of rates and charges to be made against subscribers and all rates and charges as to each of 13 e e said claSSIfications, IncludIng installation charges and service charges. ( 3 ) A detailed, informative, and referenced statement descrIbing the actual eqUIpment and operational standards proposed by the applIcant. ( 4 ) A. copy of the form of any agreement, undertaking, or other instrument proposed to be entered into between the applIcant and any subscriber. (5) A detaIled statement settIng forth In its entirety any and all agreements and undertakings, whether formal or Informal, wrItten, oral, or implied, existing or proposed to exist, between the applicant and any person, flrm, or corporatIon WhICh materIally relate or pertain to or depend upon the applIcatIon and the granting of the franchIse. (d) A copy of any agreement covering the franchise area, If eXIstIng, between the applicant and any munICIpal utility or public utIlIty subject to regulation by the California Public UtIlItIes Commission providIng for the use of any facilItIes of the public utility including, but not lImIted to, poles, lines, or condUIts. (e) Any other detaIls, statements, information, or references pertInent to the subject matter of such applIcation WhICh shall be required or requested by the CIty, or by any other provIsion of law. 14 e e SECTION 63004. ~ppllcatlon Fee. (a) ~mount. NotwIthstanding any other requu"ement of this Chapter, each applIcant must furnish wIth its proposal a non-refundable fIling fee In the form of a certified or cashler's check made payable to the City ot Santa Monica, in an amount as may be establIshed by the Clty at the time of appllcation. No proposal for a franchIse shall be considered wIthout receIpt of said check. (b) DeposIt an9 Use. All checks receIved will be deposIted to an account of the CIty and will serve to recover all expenses Incurred by the CIty In the preparation and grantIng of a franchIse, the execution of a franchise, and regulatIon of a franchIse pursuant to this Chapter. Said expenses shall lnclude, but not be limited to, any and all administratIve, engineerIng, publIcatIon, or legal costs, and consultant's expenses, incurred In connectIon with the proceSSIng, evaluatIon, and preparatIon of documents relating to the franchIse. (c) AddItional Fee. In the event that expenses exceed the total amount of fIling fees collected from the applicants, an applIcant awarded a franchIse shall pay to the City the excess amount. SECTION 63005. SelectIon of Grantee. (a) SolICItation of Proposals. The City may, by advertIsement or any other means, SOllClt and call for applIcations for cable system franchIses1 and may determine and fix any date upon or after WhICh the same shall be 15 e - receIved by the CIty, or the date before which the same must be receIved, or the date after which the same shall not be receIved, and may make any other determInations and specify any other times, terms, condItIons, or limItatIons respectIng the SOlIcItIng, call1ng for, makIng, and receiVIng of such applications. The terms and conditions for applicatIon shall be described in a document called "Request for Proposals." (b) ComDliance with CItV ReaUIrements. Any person submittIng a proposal for a cable system in response to the CIty'S Request for Proposals shall provide all information requIred by this Chapter and all other information requested by City's Request for Proposals or otherwise required by City. Each proposal shall be responSIve to the questIons solICIting the lnformat1on, and shall completely, accurately, and materially supply all of the lnformatlon so soliCIted. Any misrepresentatIon, failure, neglect, or refusal to prOVIde any of such Information may, at the discretIon of City, render a proposal Invalid. The requested InformatIon must be complete and verIfied as true by the applicant. (c) Property of CIty. All proposals received by the City from an applIcant shall become the sole property of City and shall become public documents. Cd) Aoollcant ResoonsibilltV. - - Before submItting a proposal, each applicant shall be solely responsible for and must: (1) Be familiar with local conditIons that may in any manner affect performance under the franchise, including, 16 e tit but in no event lImIted to, commun~ty and inst~tut~onal telecommunIcation needs, relevant demograph1cs, topographics, pole attachment pOlIcies of appropriate utilIty authorIties, undergrounding, and subscriber desires. (2) Be famIlIar WIth federal, state, and local laws, ordInances, rules, and regulations affectIng performance under the franchIse. (3) Carefully correlate and relate all information and observatIons WIth the reqUIrements of thIS Chapter and the Request for Proposal documents. (e) Referral to Citv Manaaer. Upon receipt of any applIcatIon for franchIse, the City Manager shall prepare and submIt a report to the City CounCIl which includes recommendatIons respectIng such applIcation. The C1.ty WIll evaluate all proposals that have complied with Its reqUIrements. All applIcants that have met the City's qualIfIcations In the Request for Proposals and have submitted proposals on the required forms will be offered the opportunity to make a formal presentation to the CIty Council in support of their applicatIons. (f) Investioatlons. The CIty may make such InvestIgatIons as It deems necessary to determIne the ability of the applicant to perform under the franChIse, and the applIcant shall furnIsh to the CIty all such information and data for thIS purpose as the CIty may request. The City reserves the rIght to reJect any proposal if the evidence submItted by, or InvestIgatIon of such applIcant falls to 17 e e satisfy the City that such applicant 1S properly qualified to carry out the oblIgations of the franchise agreement, comply with the provisions of thlS Chapter, or to satisfactorily construct and operate the system. Proposals that modify or place condltlons upon requirements stated In the City's Request for Proposals may be reJected by the CIty. (g) Re]ectlon, The City may reJect any and all applIcations from whatever source and whenever receIved and the CIty also reserves the rlght to waive any or all reqUIrements where the best lnterests of the CIty may be served, and may, if 1t so desires, request new or addItional proposals. (h) PubliC Comment. If, upon receiv1ng the City Manager's report, the CIty Council shall determlne to further consider the applIcatIon, it shall pass a resolutlon setting a public hearing for the consIderation of applIcations, flxing and setting forth a day, hour, and place certaIn when and where any persons having any interest thereIn or objections may fIle wrItten comments and appear before the CIty CounCIl and be heard, and directing the City Clerk to pUblISh said resolutIon at least once Within ten (10) days of the passage thereof in a newspaper of general circulatIon wlth1n the City. (i) Con~i~erat~on. In making any determination hereunder as to any applIcation for a new franchise, the City CounCIl may consider factors Includ1ng, but not limIted to, the quality of the serVIce proposed, Income to the City, experIence, character, background, and finanClal 18 e e responsibility ot any applicant, and its management and owners, techn~cal and performance quality of equ1pment, wil11ngness and abi11ty to meet construction and physical requirements, to meet all requirements set forth 1n this Chapter, and to abide by all purpose and policy conditions, franchise 11m1tat10ns and requ1rements, and any other considerat1ons deemed pert1nent by the City Council for safeguardIng the interests of the C1ty and the public. (J) Determination. At the tIme set for the hearing, or at any adJournment thereof, the City Council shall proceed to hear all protests. The CIty Council shall then make one of the follow1ng determinations; (1) That such app11cation be denied, whIch determ~nat1on shall be final and conclUSIve. (2) That such franchIse be granted upon such terms and condItIons as the City CounCIl may establish. (k) AddItional InformatIon. The C1ty Council may at any time demand, and applicants shall provIde, such supplementary, addItional, or other Information as the City CounCIl may deem reasonably necessary to determ1ne whether the requested franch1se should be granted. (1) Awards ~ased on Herit. It 1S the intention of the CIty to award any cable franchIse on the basis of merit of proposals. To this end, any commun1catlons WIth CIty Councllmembers by those WishIng to submIt proposals for a cable franchise should be 11mited to public sessions. 19 . . Requests for information should be dIrected to the City Manager. (m) CItv Council DeCISIons Final. ~ny decision of the CIty CouncIl concerning selection of a franchIse pursuant to this Chapter shall be fInal. SECTION 63006. Grant of ~uthoritv. (a) Successful applIcants chosen by the City CounCIl will be granted the rIght and prIVIlege to construct, erect, operate, and maintaIn 1n, upon, along, across, above, over, and under the streets, alleys, publIC ways, and publIC places now laid out or dedicated and all extenSIons thereof, and additions thereto, In the CIty poles, WIres, cables, underground condUIts, manholes, and other cable conductors and fIxtures necessary for the maIntenance and operatIon in the City of Santa Monica of a cable system, to be used for the sale and distrIbution of cable serVIces to the residents of the CIty. (b) ~ny prIvilege claImed under any such franchise by the Grantee In any street or other public property shall be subordInate to any prior lawful occupancy of the streets or other public property. (c) Insofar as it is not InconSIstent with or otherwise preempted by Federal or State regulations, the City Council retains all authorIty to regulate all telecommunications serVIces provided by a Grantee to the extent necessary to assure the delivery of proposed services, If any, and that 20 e e such services are 1n compliance with all regulatory provis10ns of this Chapter and other applicable la~s. SECTION 63007. Renewal. The renewal of any franchise granted pursuant to this Chapter shall be subJect to the terms of applIcable law and to such terms and conditIons as may be establIshed by the CIty. SECTION 63008. Use of PublIC Streets anp Wavs. For the purpose of operating and maintaIning a cable communIcations system In the franchIse area, and subJect to the provisions of SectIon 63037 hereln, the Grantee may erect, Install, construct, repaIr, replace, reconstruct, and retain in, on, over, under, upon, across, and along the publIC streets and ways WIthin the franchIse area such WIres, cables, conductors, ducts, condUIts, vaults, manholes, amplIfIers, appliances, pedestals, attachments, and other property and equipment as are necessary and appurtenant to the operation of the cable communIcations system. PrIor to construction or alteration, however, Grantee shall In each case file plans with the approprIate City agencies and local utility companIes, and receIve wrItten approval before proceeding. Grantee shall in any event comply WIth all applIcable City constructIon codes and procedures. SECTION 63009. DuratIon. The term of any franchise and all rights, prIvlleges, obligations, and restrIctions pertainlng thereto shall be as speCIfied in the franchise agreement unless termloated sooner as hereInafter provided. 21 - -. e e The effectIve date of the franchIse shall be the date of execution of the franchIse agreement by CIty, subject to prIor execution by Grantee. In no event shall the term of any franchlse exceed twenty (20) years. SECTION 63010. Transfer of OWnershlD or Control. (a) Transfer of FranchIse. Any franchise granted hereunder shall be a privilege to be held for the benefit of the pUblIC. SaId franchise cannot in any event be sold, transferred, leased, assigned, or disposed of, including, but not limited to, by forced or voluntary sale, merger, consolidation, receIvershIp, change of management, or other means without the prIor wrItten consent of City, expressed by CIty CounCIl resolution, and then only under such condItIons as CIty may establish. CIty consent shall not be unreasonably withheld. (b) OWnershlo and Control. Grantee shall promptly notIfy In wrItIng CIty of any proposed change in, or transfer of, or acquiSItion by any other party of, control of Grantee. The word <<control<< as used herein is not limited to maJor stockholders, but includes actual workIng control In whatever manner exerCIsed. A rebuttable presumption that a transfer of control has occurred shall arIse upon the acqUIsition or transfer by any person or group of persons of ten percent (10\) or more of the benefiCIal ownerShIp interest of Grantee. Every change, transfer, or acqulsltlon of control of Grantee shall make the franchise SUbJect to cancellation unless and until City shall have consented thereto. For the purpose of 22 -----~-------- -----------------------------------_._---~----------~------ - . determInIng whether it shall consent to such change, transfer, or acquIsItion of control, City retains the right to request such InformatIon as It deems appropriate to determ1ne the prospectIve party's qualificatIons, and Grantee shall ass 1St CIty in any such lnqulry. (c) Grantee ResponsIbility. In seekIng CIty'S consent to any change 1n ownershlp or control, Grantee shall have the responsibility: (1) To show to the satisfaction of City whether the proposed purchaser, transferee, or aSSIgnee which shall Include all offIcers, dIrectors, and all persons haVIng a legal or equitable interest In flve percent (5%) or more of its votIng stock: (1) Has ever been convIcted or held liable for acts InvolVIng moral turpItude IncludIng, but not limIted to, any violatIon of Federal, State, or local law or regulatIons, or is presently under an indictment, lnvestIgatIon, or complaInt chargIng such acts. (Ii) Has ever had a Judgment in an actIon for fraud, deceit, or mIsrepresentatIon entered against It, her, hIm, or them by any court of competent jurIsdictIon. (Iii) Has pending any legal claim, lawsuit, or adminIstratIve proceedIng arISIng out of or Involving a cable system. (2) To establIsh, to the satIsfaction of City, the financial capablllty of the proposed transferee to operate the franchised system, based on the proposed transferee's 23 . e aggregate flnanClal commItments and resources. city may request} and Grantee shall provide} all reasonable financial data relative to the transfer. (3) To establish to the satIsfaction of City that the capablllty of the proposed transferee IS such as shall enable It to maIntaIn and operate the cable system for the remainIng term of the franchise under the existing franchise term, and, upon City request, to provlde adequate security for thIS purpose. (d) The Grantor agrees that any flnancial institutIon havlng a pledge of the franchise or lts assets for the advancement of money for the constructIon and/or operation of the franchise shall have the rIght to notlfy the Grantor that it or lts designee satlsfactory to the Grantor will take control and operate the cable communicatIons system, in the event of a Grantee default 1n Its finanCial obligations. In such event, the fInancial InstitutIon shall submIt a plan for operatIon that Will insure continued serVIce and compliance WIth all franchIse requIrements durIng the term the financial InstitutIon exerCIses control over the system. The fInancial institution shall not exerCIse control over the system for a period exceeding one year unless extended by the Grantor in ItS discretion and durIng saId perIod of time it shall have the rlght to petItIon the Grantor to transfer the franchise to another Grantee. If the Grantor finds that such transfer} after consIdering the legal, finanCIal, character, technical, and other publIC Interest qualifIcations of the applIcant are 24 -- - satisfactory, the Grantor shall transfer and assign the rights and obl1gations of such franchIse as 1n the public 1nterest. The consent of the Grantor to such transfer shall not be unreasonably wlthheld. (e) CQnsent to Transfer Subordinate to Cltv's Other Riahts. The consent or approval of city to any transfer of the franchlse shall not constltute a waiver or release of the rights of City in and to the streets, and any transfer shall by lts terms, be expressly subordinate to the terms and condltlons of the franchlse. (f) Necessltv for Comoletlon of Construction. In the absence of extraordinary circumstances, City shall not approve any transfer or assignment of the franchise prlor to completion of constructlon of the proposed system. (g) RI0ht to Purchase Cable ~yste~. The franchIse agreement shall provlde the terms and condltlons under which the City has the right to purchase the cable system, if and when It is placed on the market for sale. (1) Successor in Interest. In no event shall a transfer of ownership or control be approved without the successor In lnterest becomlng a slgnatory to the eXlsting franchlse agreement, or a modlfied franchise agreement approved by City. SECTION 63011. Police Powers. In accepting a franchlse, Grantee acknowledges that its rights hereunder are subject to the pollce powers of CIty to adopt and enforce general ordinances necessary to the safety and welfare of the 25 - - public; and it agrees to comply w1th all applicable general laws and ord1nances enacted by City pursuant to such power. Any conflict between the provis1ons of thIS ordinance and any other present or future lawful exerCIse of C1ty'S pollce powers shall be resolved in favor of the latter, except that any such exercise that IS not of general application 1n the jur1sdIction or applies exclus1vely to any cable commun1cat1ons system franchise which conta1ns provisions inconSistent with this ordinance shall prevail only if upon such exerCIse City finds any emergency eXists constltut1ng a danger to health, safety, property, or general welfare of such exerCIse if mandated by law. SECTION 63012. Franchise Fee. (a) Annual Franch1se Pavment. A Grantee of a franchise hereunder shall pay to CIty an annual fee in an amount as designated 1n the franch1se agreement. Such payment shall be in addItIon to any other prescrIbed fees, 1ncluding, but not limIted to, bUSiness l1cense and permIt fees, and shall commence as of the effective date of the franch1se. City, upon request, shall be furnIshed a statement, eIther audIted and certIfIed by an independent CertIfied Public Accountant or certifIed by a fInanCIal offIcer of Grantee, reflecting the total amounts of gross revenues and all payments, deductions, and computations for the perIod covered by the payment. City shall have the rIght to conduct an independent audit of Grantee's records, and If such audit indIcates a franchise fee 26 . e underpayment of two percent (2\) or more, Grantee shall assume all reasonable costs of such an audlt. (b) Acceotance bv Citv. - - No acceptance of any payment by Grantee shall be construed as a release or as an accord and satisfaction of any claim CIty may have for further or addltlonal sums payable as a franchise fee under this ordInance or for the performance of any other obllgation of the Grantee. All amounts paid shall be subject to audlt and recomputation by City. (c) Pavment Schedule. Franchise fee payments shall be made in accordance wlth the schedule 1ndicated in the franchise agreement. (d) Franchise F~~ Ite~l~atlon. Any Grantee <<pass through<< or ltemIzation of franchlse fee costs on subscriber's bills shall be 1n accordance with Federal law. (e) Fa1lure to Make R~~ulred r~yment. In the event that any franchise payment or recomputed amount 1S not made on or before the dates specIfIed In the franchise agreement, Grantee shall pay as additIonal compensatlon~ (1) An Interest charge, computed from such due date, at an annual rate equal to the maximum Interest rate WhIch could lawfully be charged by a private lender in effect upon the due date. (2) A sum of money equal to five percent (5%) of the amount due in order to defray those additional expenses and costs incurred by CIty by reason of delinquent payment. 27 e . Subchapter 13C. Reaulatlon of ~ranchlse. SECTION 63013. Reaulatorv Authorltv. - - Clty shall exercise approprlate regulatory authority under the provlslons of this Chapter and applicable law, If the franchlse area served by the cable communications system also serves other contiguous or neighborIng communItIes} CIty may, at its sole option, particIpate In a JOInt regulatory agency, with delegated responsIbility in the area of cable and related communIcatIons. SECTION 63014. Reaulatorv ReSDonsibllltV. - - - - City may exerCIse regulatory responsibilIty, including} but not lImited to} the followIng areas: (a) AdminIsterIng and enforcing the provislons of the cable communIcations system franchisees). (b) Coordination of the operatIon of public} educatIonal} and government access channels and faCIlities. (c) PrOVIdIng technical, programming, and operational support to public agency users, such as government departments, schools, and SOCIal service providers. Cd) Establishing procedures and standards for use of channels and facllltles dedicated to PEG access use, if prOVIded for In any franchise agreement. (e) PlannIng expanslon and growth of public benefIt cable services. 28 - e (f) Analyzing the pOSSIbilIty of integrating cable communications with other local, state, or nat~onal telecommunIcations networks. (g) Formulat~ng and recommending long-range telecommunications POlICY, SECTION 63015. Public Usaae of the Svstem. As specifIed In the franchIse agreement, CIty shall utIlIze a portion of the cable communicatIons system capacity, and assocIated facilitIes and resources, to develop and provide cable serVIces that will be In the public interest. It IS the intent of City to Insure that public, educational or government access faCIlItIes prOVIded for in any franchise agreement shall be managed In the best publIC interest so that programming using such faCIlIties wIll be open to all residents, and avaIlable for all forms of publIC expression, community InformatIon, and debate of publIC Issues. ( a) Deleaatlon of Public Usaae Faci1itv Hanaaement. - - CIty may delegate or assign all or a portion of the responSIbilIty for management of publIC, educatIon or government access faCIlities to an entity or entIties WhICh may Include, but not be lImited to, any of the follOWIng: (1) ~ nonprofIt publIC corporatIon. (2) An access faCIlIty management commission or committee, appOInted by City, or elected, and representing a broad spectrum of the communIty. 29 e . (3) ~n establIshed nonprofit entIty with specIal cablecasting capabIlIty, such as a local or regional communIty college. (4) A grantee of a cable franchIse, (5) A City department or d1viSlon wIth special cablecastlng capabIlity. (b) Functions. Any entIty or entlties desIgnated to manage all or a portIon of the PEG access facilItIes and public usage of the system shall share responsIbilIty with CIty for such of the following functIons as may be specified by City: (1) Manaaement Of Facilities. To assume responsibilIty for and management of the public access facillties as may in the franchlse agreement be deSIgnated for communIty-based programming. Community channels may Include public, educatIonal, and government access channels, as designated In the franchIse agreement. (2) P~G UtIlIzatIon. Receive and utilIze or reallocate for utilizatlon on a perIodIC baSIS, channel capaCIty, faCIlIties, fundlng, and other support provided specifically for public usage of the cable communIcations system to conform WIth changIng priorities and public needs. (3) AdminIstratIon and Reaulation. To devise, establIsh, and admInIster rules, regulatIons, and procedures pertainIng to the use and scheduling of the PEG access faCIlItIes. 30 e - (4) ~e~orts on Vtllizatton. Report to CIty annually, or upon request, on the utl11zation of resources, about the new public services developed and the benef1ts achIeved for City and its resIdents. (5) Non-DlscrimInatorv ~ccess. To assure that the PEG access facilities are made available to all resIdents of the franchIse area on a nondIscrimInatory, fIrst-come, fIrst-served basis. (6) Non-CensorshIQ. To assure that no censorshIp or control over program content of the PEG access faCIlities exists except as necessary to comply with Federal prohIbition of material that IS obscene. (7) HirIna of Staff. To hIre and supervise staff. (8) Purchase of MaterIals. To make all purchases of materials and eqUIpment that may be reqUIred. (9) DeveloDment of FundIna Sources. To develop sources of fundIng, such as foundation or Federal or state grants, to further communIty programming. (10) Performance of Relevant Functions. To perform such other functIons faCIlities as may be approprIate. (11) Esta~llshmen~ relevant to the PEG access of B~dget. To establIsh budgets on an annual basis, and utIlIze funds and resources receIved from CIty or the publIC usage entity deSIgnated in SectIon 63015(a), for the purpose of PEG access programming. 31 at -- (c) Access Rules. Any entity or ent1ties to whom City delegates or ass1gns access facility management respons1b1l1tles shall complete a set of rules for the use of all or a port1on of the access facIlities which shall be promptly forwarded to CIty. The rules shall be prepared 1n cooperation with Grantee, and confirmed by agreement between the PEG access facility management entlty and Grantee. The rules shall, at a mln1mum, provlde for: (1) Access on a flrst-come, flrst-served, nondiscrlmlnatory basis for all residents of the franchlse area. (2) Prohibitlon of commercial use. (3) Prohlbitlon of any presentation of obscene material. (4) Public lnspectlon of the log of producers, WhlCh shall be retained by the Grantee for a period of four years. (5) Procedures by which lndividuals or groups who violate any rule may be prevented from further access to the facilities. (6) Free use of such reasonable amounts of channel tlme, cablecastIng facilities, and technical support as are prOVIded for in the agreement between any PEG access faCIllty management entlty and Grantee. 32 a . SECTION 63016. Rates. (a) UnIform A~~lle~t~o~. Grantee shall establish rates for Its serVIces that shall be appl~ed fairly and unIformly to all subscrIbers 1n the franchise area. (b) Schedule of Rates. Grantee shall maintain and file with CIty, a complete schedule of subscrIber rates Including all fees and charges for services. Grantee shall notify CIty and cable subscribers at least thIrty (30) days prior to any change 1n rates. (e) DisconneC~IQn. There shall be no charge for disconnectIon from the system. (d) Reconnection. If a subscriber has failed to pay properly due monthly fees or If a subscriber disconnects for seasonal perlods, Grantee may reqUIre, in addition to full payment of any delInquent fees, a reasonable fee for reconnection. (e) No Consideration Beyond Sc~~~~le. Grantee shall receive no consideration whatsoever for or In connection with its provIsion of serVIce to Its subscrIbers other than as flIed with Clty. SECTION 63017. Rate Chanae Procedure. To the extent permitted by law, the franchise agreement may provide a procedure for the reVIew and approval of rate changes by the City. SECTION 63018. Annual Review of Oualltv of Service. At CIty'S sole option, WIthln nInety (90) days of the fIrst 33 . . annIversary of the effectIve date of each franchise, and each year thereafter throughout the term of the franch~se, c~ty and Grantee shall meet publICly to review the performance and quality of serVIce of the cable communicatIons system. The reports requIred 1n Section 63063 regarding subscrIber complaInts, the records of performance tests and the opinion survey report shall be utIlized as the basis for reVlew. In addItIon, any subscrIber may submit comments during the review meetings, eIther orally or in wrItIng, and these shall be considered. (a) WIthIn thirty (30) days after the conclUSIon of the qualIty of service reVIew meetIngs, City shall issue a report with respect to the adequacy of system performance and quallty of serVIce. If InadequaCIes are found, City may dIrect Grantee to correct the inadequacies WIthin a reasonable period of time. (b) FaIlure of Grantee, after due notice, to correct the inadequac~es shall be conSIdered a material breach of the franchIse, and Clty may} at lts sole dlscretion, exercise any remedy within the scope of this ordinance cons~dered appropriate. SECTION 63019. System and SerVICeS ReVIew. To provide for technologIcal, economIC, and regulatory changes in the state of the art of cable communlcatlons, to fac~litate renewal procedures, to promote the maXImum degree of fleXlbllity In the cable system, and to achleve a continuing, 34 . e advanced modern system, the following system and serVIces reVIew procedures are hereby established: (a) At City's sole optIon, City and Grantee shall hold a system and serVIces reVIew session on or about the second annlversary date of the franchise agreement. Subsequent system review sessions shall be scheduled by City approxlmately each two (2) years thereafter. (b) SlXty (60) days prior to the scheduled system and services reVlew session, Grantee shall submit a report to City lndlcating the folloWIng: (i) All cable system services that are belng provlded on an operational basls, excluding tests Unlted States and demonstrations, to cities In the with populations comparable to that in the franchise area, that are not provided to City. (2) A plan for provlsion of such servlces, or a justification Indicating why such services are not feasible for the franchise area. (c) TOpICS for discussion and review at the system and services reVlew sessions shall include, but not be limited to, services provided, application of new technologies, system performance, programming, subscriber complaints, user complalnts, rights of privacy, amendments to the franchise, undergrounding processes, developments in the law, and regulatory constralnts, and technIcal and economlC feasibility of system expansion or upgrading. 35 e - (d) Either CIty or Grantee may select addItional topics for dIScussion at any review session. (e) ~ll system and services review sessions shall be open to the publIC and Grantee shall provide notice of such session at least ten (10) days preceding each session in a newspaper of general circulation in CIty. Grantee shall notify its subscribers of all system and serVlces review sessions by announcement on at least two (2) channels of its system between the hours of 7:00 p.m. and 9:00 p.m., for ten (10) consecutive days precedIng each session. (f) Not later than sixty (60) days after the conclusion of each system and services review sesslon, city shall Issue a report, includIng specifIcally a llstlng of any cable services not then beIng provided to City that are considered technIcally and economically feaSIble. SECTION 63020. New DeveloDments. (a) A FranchIse ~greement may provIde that subsequent to each System and SerVIces ReVIew Session and City Issuance of a report thereon, as set forth In SectIon 63019, the City CounCIl shall have the authorIty to order a public hearing on the provlslon of additional channel capaCIty by Grantee or on the Inclusion in Grantee's cable system of "state of the art" technology or upgraded faCIlitIes. Notice of such hearing shall be provided to Grantee and the public not later than thirty (30) days prIor to such hearlng. (b) The City Council may order proviSIon of addlt10nal channel capacity or upgradlng of faCllltles if, after the 36 . e hearing provided In subd1vlsion (a), it makes each of the followIng findIngs: (1) There exists a reasonable need and demand for addItIonal channel capacIty and/or state of the art technology or upgraded faCIlIties. (2) ProvIsIon has been made or will be made for adequate rates which wIll allow Grantee a faIr rate of return on Its investment (includIng the investment requlred to provIde the additional channels and/or the state-of-the-art technology or upgraded faCIlitIes). ( 3 ) WIll not result In economic waste for Grantee. In consIderIng the economIC feaSIbIlIty of requIred system Improvements, the CIty CouncIl may consIder the extensIon of the term of the franchIse to permIt the recovery of the cost of saId improvements. ~ny proposed extension of franchIse is sUbJect to the procedures for franchIse renewal found In SectIon 63007 of thIS Chapter. WIthout implying any lImItations as to other proviSIons of this Chapter, this SectIon IS deemed a materIal prOVISIon WIthin the meanIng of Sections 63078 and 63093 of thIS Chapter. Non-complIance WIth this SectIon shall constItute a breach of thIS Chapter, and City may, at Its sole discretIon, exercise any remedy It deems approprIate pursuant to thIS Chapter. 37 . e Subchapter 13D. General FInanCIal and Insurance Provlsions. SECTION 63021. Construction Bond. (a) Withln thirty (30) days after the grantIng of a franchise and pr10r to the commencement of any construct1on work by Grantee! Grantee shall flle with CIty a construction bond 1n the amount specif1ed 1n the franchise agreement 1n favor of Clty and any other person who may cla1m damages as a result of the breach of any duty by Grantee assured by such bond. (b) Such bond shall be in the form approved by City and shall, among other matters, cover the cost of removal of any properties Installed by Grantee in the event sald Grantee shall default in the performance of its franchlse oblIgation. (c) In no event shall the amount of said bond be construed to limit the liabllity of Grantee for damages. (d) City, at its sole option, may waive this requ1rement, or permit consolIdatlon of the construction bond with the performance bond and security fund specified, respect1vely, In Sections 63022 and 63023. SECTION 63022, CQmpletlon and P~rformance Bond. (a) Wlthln thIrty (30) days after the award or renewal of a franchIse, a Grantee shall obtain and maintain at Its cost and expense, and fIle with the City Clerk, a completion and performance bond approved by the City Attorney and issued by a corporate surety authorized to do business in the State 38 e . of California, 1n an amount equal to the antic~pated costs of the proposed construct~on or reconstructlon, includIng the cost of all system equlpment, to guarantee the tlmely construction, or reconstructIon and full activation of the cable communications system and the safeguardIng of damage to prlvate property and restoratIon of damages Incurred by utillties. The bond shall provide, but not be limited to, the followlng condItIon: There shall be recoverable by City, jointly and severally from the prIncipal and surety, any and all damages, loss or costs suffered by CIty resulting from the failure of a Grantee to satisfactorily complete and fully actIvate the cable communIcatIons system throughout the franchlse area pursuant to the terms and condltlons of thIS Chapter and the Franchlse ~greement. (b) Any extenSIon to the prescribed construction or reconstructIon tIme lImIt must be authorIzed by the CIty Council. Such extenSIon shall be authorized only when the City CounCIl flnds that such extenslon is necessary and appropriate due to causes beyond the control of a Grantee. ( c ) The completion and performance bond shall be termInated only after the Clty CounCIl flnds that a Grantee has satisfactorily completed lnitlal constructIon and activatIon or reconstructIon of the cable communIcatIons system pursuant to the terms and conditIons of this Chapter and the FranchIse Agreement. The prInCIpal sum of the bond 39 . e may be reduced upon appl~cation of Grantee and approval by City CouncIl. (d) The rights reserved to City with respect to the completlon and performance bond are ~n add1tIon to all other r1ghts of City, whether reserved by thIS Chapter or authorized by law, and no act~on, proceedlng, or exerCIse of a right with respect to such completion and performance bond shall affect any other r~ghts which may be held by City. (e) The completion and performance bond shall conta~n the follow1ng endorsement: It 1S hereby understood and agreed that th1S bond may not be cancelled by the surety nor the intent10n not to renew be stated by the surety until sixty (60) days after receipt by City, by registered mail, of wr~tten notice of such intent to cancel or not to renew. (f) Upon any fallure of a Grantee to satisfactorily complete construct~on or reconstruction and fully actIvate the cable communications system throughout the franchise area pursuant to the terms and condItions of thIS Chapter and the Franchise Agreement, or in the event of Grantee's abandonment or materIal delay of the constructIon, reconstruction, or act1vatlon of the system, City, after gIving Grantee ten (10) days wrItten notice and an additional ten (10) days to cure the fa~lureJ abandonment, or delay, shall become empowered 40 . e thereby to enter the site of and take possession of the construction, reconstruction, or activation work for purposes of completing the work itself or emploYIng some other person to complete the work, and for such purposes to allow and use Grantee's equipment provided that the entire expense of the completion of the work, whether done by CIty Itself or by the employment of another person, shall be charged to Grantee and provided further, that the dOing of such work by City itself or by the employment of other persons shall in no way relieve Grantee from any covenants, undertakIngs, duties, and obligations under this Chapter or franchIse, nor limIt the rights and remedies of City hereunder In any manner whatsoever. SECTION 63023. Securltv Fund. (a) Within thirty (30) days after the effective date of the franchIse, Grantee shall depOSit into a bank account, establIshed by City and maintain on depOSit through the term of this franchise, the sum speCIfIed 1n the franchise as securIty for the faithful performance by it of agreement, all the prOVIsions of the franchise, and compliance with all orders, permits, and directions of any agency of CIty having jurisdictIon over Its acts or defaults under thIS ordinance, and the payment by the Grantee of any claims, lIens, and taxes due City which arIse by reason of the construction, operation, or maintenance of the system. The security fund may be assessed by City for purposes Including, but not limited to, the following: 41 . . (1) Fa1lure of Grantee to pay City sums due under the terms of the franch1se. (2) Re1mbursement of costs borne by Clty to correct franchIse vlolatlons not corrected by Grantee, after due notice. (3) Monetary remedies or damages assessed against Grantee due to default or violatIon of franchise requirements. (b) At City's sole option, some portion of the security fund may be prOVIded 1n the acceptable form of an irrevocable letter of credit or other security acceptable to the CIty. (c) If Grantee falls, after ten (10) days notice, to pay to CIty any franchise fee or taxes due and unpaid; or, falls to pay to CIty within such ten (10) days, any damages, costs, or expenses, which City shall be compelled to pay by reason of any act or default of Grantee in connection with the franchise; or, falls, after thirty (30) days notIce of such faIlure by Clty, to comply WIth any proviSion of the franchise which City reasonably determines can be remedied by an expend1ture of the securIty fund, city may immediately withdraw the amount thereof, with interest, from the securIty fund. Upon such WIthdrawal, City shall notIfy Grantee of the amount and date thereof. (d) WIthin thIrty (30) days after notice to It that any amount has been WIthdrawn by CIty from the securIty fund pursuant to subsection (a) of thIS Section, Grantee shall depOSIt a sum of money suffICIent to restore such securIty fund to the original amount, 42 e e (e) The securIty fund deposIted pursuant to this SectIon shall become the property of the City in the event that the franchIse IS revoked for cause by reason of the default of the Grantee. The Grantee, however, shall be entItled to the return of such security fund, or portion thereof, as remaIns on deposIt no later than ninety (90) days after the eXpIratIon of the term of the franchise, provided that there 1S then no outstandIng default on the part of the Grantee. (f) The rights reserved to CIty w1th respect to the securlty fund are In addItion to all other rIghts of City whether reserved by th1S ordInance or author1zed by law, and no actlon, proceeding, or exerCIse of a rIght WIth respect to such security fund shall constItute an electIon of remedIes or a waIver of any other rIght City may have. SECTION 63024. LIOuIdated Damaaes. - - By acceptance of the franchise granted by City, Grantee understands and shall agree that fa11ure to comply WIth any time and performance reqUIrements as stIpulated in this Chapter and the FranchIse Agreement, WIll result In damage to CIty, and that It is and will be impractIcable to determine the actual amount of such damage In the event of delay or non-performance,; the Franchise Agreement shall include proviS10ns for lIquidated damages to be paId by Grantee} in amounts set forth in the FranchIse Agreement and chargeable to 43 . . the security fund for the occurrence of any of the following events: (a) FaIlure reconstructIon in to complete accordance wIth system construction or SectIons 63030 ~ se~., unless the CIty CouncIl specIfically approves the delay by motion or resolution, due to the occurrence of conditions beyond Grantee's control. (b) Failure to provide upon written request, data, documents, reports, information, or to cooperate wIth CIty durIng a franchIse renewal or transfer process or cable communicatIons system reVIew. (cl Failure to test, analyze, and report on the performance of the system followIng a written request pursuant to thIS Chapter. (d) For failure to provide in a continuing manner the types of serVIces proposed In the accepted application, unless the City CounCIl speCIfIcally approves Grantee a delay or change, or Grantee has obtaIned modificatIon of its oblIgatIon under SectIon 625 of the Cable CommunIcations POlICY ~ct of 1984. (el Failure of Grantee to comply with operational, maIntenance, or technIcal standards. (f) ~ny other action or nonaction by Grantee, as agreed upon between City and Grantee, and set forth in the FranchIse Agreement. Nothing In this Section shall preclude further liquidated damages as agreed upon by the parties in the Franchise Agreement. 44 ~ . . (g) If the City Hanager concludes that a Grantee 1S lIable for liqUIdated damages pursuant to thiS Section, he or she shall lssue to Grantee by certIfIed mall a notIce of Intention to assess lIqUIdated damages. The notice shall set forth the bas1S for the assessment, and shall inform Grantee that liquidated damages w1ll be assessed from the date of the notice unless the assessment notice is appealed for hearIng before the City Council and the City Council rules: (1) that the VIolatIon has been corrected, or (2) that an extenSIon of time or other relief should be granted. A Grantee desir~ng a hearing before the CIty Council shall send a written notIce of appeal by certified mail to the City Manager WithIn 10 days of the date on which the CIty sent the notice of IntentIon to assess lIqUIdated damages. The hearing on the Grantee's appeal shall be Within thIrty (30) days of the date on which CIty sent the notIce of intentIon to assess liquidated damages. At any time after the expiration of the appeal period or after a hearing, if the City Council sustains In whole or in part the City Manager's assessment of liquidated damages, the City Manager may at any time thereafter draw upon the security fund or letter of credIt required by Section 63023. Unless the CIty CounCil Indicates to the contrary, said llquidated damages shall be assessed beginning wlth the date on WhlCh City sent the notice of the intention to assess the l~quldated damages and continuing thereafter until such tlme as the v10lat~on ceases, as determlned by the City Manager. 45 . . SECTION 63025. (a) Grantee granted Indemnify, Indemnificatlon. shall by acceptance of any franch1se defend, and hold harmless City, its C1ty Council, boards and comm1ssions, officers, agents, servants, and employees from any and all claims, SUIts, Judgments for damages or other relief, costs, and attorneys' fees 1n any way ar1sing out of or through: (1) The act of CIty 1n granting the franchise. (2) The acts or omissions of Grantee, its servants, employees, or agents Including, but not llmited to, any failure or refusal by Grantee, 1ts servants, employees, or agents to comply with any obl1gatIon or duty Imposed on Grantee by thIS ord1nance or the franchIse agreement. (3) The exerC1se of any rIght or privilege granted or permItted by thiS ordinance or the franchise agreement. Such IndemnIficatIon shall include, but not be limited to, all claims arISing 1n tort, contracts, 1nfringements of copyright, v1olatlons of statutes, ordinances, regulat10ns or otherw1se. (b) In the event any such cla1ms shall arise, the City or any other 1ndemn1fied party shall tender the defense thereof to Grantee. Prov1ded, however, that City in Its sole dIscretion may part1cipate in the defense of such cla1ms at Its expense, and in such event, Grantee shall not agree to any settlement of cla1ms wIthout CIty approval. 46 ~> . . SECTION 63026. Insurance. (a) Reaulred Insurance. Grantee shall maintain throughout the term of the franchise insurance in amounts at least as follows: (1) Worker's Compensation In~urance. As required by the California Labor Code and Employee Liability Insurance. (2) Broad Form Comorehenslve General~iability. Comprehenslve general llablllty insurance, including, but not limIted to, coverage for bodily Injury, personal inJury, and property damage, and broadcaster's liability, shall be malntalned at the surn(s) specified in the franchise agreement. (3) Comorehenslve Automoblle Llabilitv. Comprehensive automobile liability Including, but not limited to, non-ownershlp and hIred car coverage as well as owned vehlcles with coverage for bodily InJury and property damage shall be malntalned at the sum(s) specified in the franchise agreement. (4) Qubcontractor Gover~ge. (a) Grantee shall include any of Its subcontractors as insureds under the poliCies of insurance requIred herein, or alternatlvely, shall provide to City certificates of lnsurance and binding endorsements evidencing satisfactory compliance by each subcontractor with the Insurance requlrements stated hereIn. (bl VerificatIon o~ Insurance. Grantee shall furnish to City satisfactory certiflcates of lnsurance, caples of each Insurance policy, and orIgInal endorsements 47 e e affecting coverage required and fully complying with all Insurance spec1.f1.CatIons stated herein. Each such orlginal endorsement shall be signed by a person authorlzed by that particular Insurer to bind coverage on its behalf. (c) AcceDtabll~ty of Insurers. Each requIred Insurance POlICY shall be procured from insurance companIes with a mInimum rating of B ~ X or better by A.M. Best's rating service. (d) Deductibles and Self-Insured Retentlon. Any deductibles or self-insured retention on the insurance polic1es required hereln shall be declared to City and be subject to CIty's wrltten approval, At the sole discretIon of CIty, eIther (1) the Insurer may be requlred to reduce or elImInate such deductibles or self-insured retentions as respects City, its officlals, and employees; ~ (2) Grantee may be required to procure a bond guaranteeing payment of losses, related lnvestigatlon, clalm admlnistratlon, and defense expenses. (e) Notlces Pertaininq to Insurance PollCles. Each policy of Insurance shall requIre thirty (30) days prlor written notice of cancellations, non-renewalJ or material changes 1n the terms of such pollcy. Notice thereof shall be gIven to city by regIstered mail, return receipt requested, for all of the above-stated insurance pOllcles. 48 e e (f) Additional Reauirements for Insurance PolICIes. (1) This Insurance shall not be cancelled, lImited In scope of coverage or limIts, or non-renewed until thirty (30) days written notice has been gIven to City. (2) The CIty of Santa Monica, members of Its CIty CouncIl, boards and commIssions, offIcers, agents, volunteers, and employees are Included as addItIonal Insureds with regard to damages and defense of claims arIsing from (1) actIvitIes performed by or on behalf of Grantee, (Ii) products and completed operations of Grantee, or (Ill) premIses owned, leased, or used by Grantee. The coverage shall contaIn no special lImitatIons on the scope of protection afforded to the City, its offIcers, agents, volunteers, or employees. (3) Grantee's Insurance coverage shall be primary with respect to the CIty, its officers, agents, volunteers, and employees. It IS agreed that any insurance or self-insurance maIntained by CIty shall apply In excess of and not contrIbutory WIth, insurance prOVIded by the POlICY. (4) Insurers shall have no rIght of recovery or subrogatIon against CIty (including Its offIcers, employees, volunteers, and other agents and agencies), it being the IntentIon of the parties that the insurance poliCIes so effected shall protect both parties and be primary coverage for any and all losses covered by the above-described insurance. 49 e e (5) The above-descrIbed policies shall apply separately to each lnsurance company against whom claim is made or suit 15 brought except with respect to the lImits of the insurance company's Ilablllty. (6) The lnsurance company issuing the policy or policIes shall have no recourse against the City for payment of any premiums or for assessments under any form of pollcy. (7) Any and all deductibles in the above-descrIbed Insurance polICIes shall be assumed by and be for the account of, and at the sole rIsk of, Grantee. (8) A.ny faIlure to comply WIth reportIng prOVISIons of the policies shall not affect coverage provided to the City, Its officers, employees, agents, or volunteers. (g) The m1n1mum amounts set forth in the franchlse agreement for such Insurance shall not be construed to lImit the liability of Grantee to C1ty under the franchIse issued hereunder to the amounts of such insurance. Subchapter 13E. Deslon and Construction PrOVISIons, SECTION 63027. System DesIon. The cable communlcatlons - - system shall be constructed in accordance wlth the des1gn} constructIon, or reconstructIon reqUIrements contained in the franchise agreement. 50 . e SECTION 63028. Geoqra~nlcal CQverage. Grantee shall des~gn and construct the cable system in such a manner as to have the capabIlity to pass by every dwellIng unIt, includIng mobllehomes and trailers, school, publIC or nonprofit corporation, busIness, or agency within the franchIse area. ServIce shall be provided to subscrIbers in accordance WIth the schedules and lIne extenSIon policies specified in the franchIse agreement. Cable system construction and provision of service shall be non-dIscrIminatory, and Grantee shall not delay or defer serVIce to any sectIon of the franchise area on the grounds of economic preference. SECTION 63029. Cablecastlna FacilIt~es. Grantee shall provIde cablecastlng faCllltles in accordance wlth the requirements of the franchIse agreement. SECTION 63030. ~vstem Construction Schedule. (a) Grantee shall comply WIth the requirements of the system constructIon or reconstruction schedule contained In the franchIse agreement. (b) Grantee shall provIde a detaIled construction plan indIcatIng progress schedule, area constructIon maps, test plan, and projected dates for offering serVIce. In additIon, Grantee shall update this InformatIon on a monthly baSIS, shOWIng speCIfIcally whether schedules are beIng met and the reasons for any delay. 51 e e SECTION 63031. Delav 1n ConstructIon. Grantee shall make a good faIth and d1l1gent effort to obtaIn all necessary permits and clearances. Wlth1n two (2) months after the effectIve date of a franchIse, Grantee shall report to CIty its estimate of the inItial constructIon or reconstruction date. The initial date estImated after two (2) months may be used by City as the presumptIve construction or reconstruction startIng date, WIth all construction requirements based on that date, provided} however} that Grantee may adJust Its estimated InItIal date upon a showing of delays WhICh are beyond Its reasonable control or WhICh are not reasonably foreseeable. SECTION 63032. PrOVIsIon of SerVIce. After serVIce has been established by actIvating trunk cables for any area, Grantee shall provlde service to any requesting subscrIber WIthin that area WIthIn thlrty (30) days from the date of request. SECTION 63033. Underoroundlnc - - of Cable. The undergroundlng of cable is encouraged. Cables shall be installed underground at Grantee's cost where utilitIes are already underground. Previously installed aerial cable shall be undergrounded and relocated In concert, and on a cost-sharIng basls, WIth other utIlitIes, when such other ut11Itles may convert from aer1al to underground constructIon. 52 e e SECTION 63034. New Develonment Underaroundlna. - - In cases of new constructIon or property development where util1tles are to be placed underground, upon request by Grantee, the developer or property owner shall give Grantee reasonable notIce of the particular date on which open trenching will be available for Grantee's Installation of conduIt, pedestals and/or vaults, and laterals to be provided at Grantee's expense. Grantee shall also provIde specIfIcations as needed for trenchIng. Costs of trenching and easements required to bring service to the development shall be borne by the developer or property owner; except that If Grantee falls to install its condUIt, pedestals and/or vaultsJ and laterals within five (5) working days of the date the trenches are avaIlable, as designated in the notIce gIven by the developer or property owner, then should the trenches be closed after the fIve (5) day period, the cost of new trenchIng shall be borne by Grantee. SECTION 63035. Undercroundlna at Multiole Dwellinc - - UnIts. In cases of multiple dwellIng unIts servIced by aerial utIlItIes, Grantee shall make very effort to minimIze the number of IndIVIdual aerIal drop cables gIving preference to undergrounding of multiple drop cables between the pole and the dwellIng unit. The burden of proof shall be upon Grantee to demonstrate why undergrounding of drop cables is technIcally or economically unfeaSIble. 53 e e SECTION 63036. Location of PrODertv of Grantee. - - (a) Any Wlres, cable lInes, conduIts, or other properties of the Grantee to be constructed or installed in streets shall be so constructed or Installed only at such locations and in such manner as shall be approved by the General Serv1ces Director and sUbJect to all provls1ons of this subchapter. (b) Grantee shall not install any facilities or apparatus In or on other publIC property, places, easements, or rights-af-way, or within any prlvately-owned area within the CIty WhIch has not yet become a publIC street but 1s deslgnated or delineated as a proposed public street on any tentatIve subdivision map approved by the Clty, except those installed in or on public utIlIty faCIlities now existing, without obtaIning the prIor wrItten approval of the General SerVIces Director and WIthout paying for the use of such property. (c) Grantee shall cause a key map and detailed plat maps of the entIre system, ShOWIng materIals of construction and horizontal and vertical locatIons with respect to property lines and grade lInes, to be prepared by a registered professlonal CIVIL engIneer or a licensed land surveyor and flIed in the office of the General Servlces Director prior to the issuance of a permIt for constructIon, or withIn ninety (90) days after the grantIng of a franchise to operate and maintain facilities existIng prlor to the adoptIon of this SectIon. Prior to requestIng the Issuance of a permIt for the 54 e e lnstallatlon of any facility or apparatus in accordance with the provisions of thIS Section, Grantee shall file such key map and detalled plat maps with all utIlity companies and public agenCIes whose facilltles are affected by such Installation and obtain a statement signed by a respons~ble official thereof that such utllity or publlC agency has no objectIon to the proposed location of such faci11ty. Such utility companies and public agencies shall act upon a request made to them by a Grantee in accordance wlth the foregOIng provisions WIthIn thirty (30) days after such request has been made to such uttlity or publIC agency. (d) Grantee, upon the request of any person or agency who has contracted to perform work on a public right-of-way, shall prOVIde accurate detaIled InformatIon to such person or agency regarding the locatIon of any of the Grantee's facilIties In such rIght-of-way. Such information, if requested, shall lnclude sending a representative familIar With the Installatlon of cable facilities to the site of the work to mark or deSIgnate the locatIon of the faCIlities of Grantee. (el In order that the proviSIons of thIS Section may be reasonably applied, in instances where extreme or unnecessary hardship would result from carrying out the proviSions of this Section, the City Council shall have the power to vary the mandatory prOVisions of thIS Sectlon in any specifIC case in such a manner that substantial Justice is done upon a showing by Grantee of good cause therefor. 55 e e SECTION 63037. Standards for Use of st~eets. ( a ) All transmission and distribution structures, lInes, and equipment erected by the Grantee wlthin the CIty shall be so located as to cause mlnimum interference with the rIghts and reasonable convenlenC& of property owners who adJOln any of the said streets. (b) In case of disturbance of any street, easement, or paved area or other property the Grantee shall, at its own cost and expense and In a manner and time perIod approved by the City, replace and restore such street, easement or paved area, or other property in as good a conditIon as before the work lnvolvlng such disturbance was done. ( c ) The Grantee, at Lts expense, shall protect, support, temporarIly dIsconnect, relocate in the same street or other public place, or remove from the street or other public place any property of the Grantee when required by the General Services Director by reason of traffic conditions] public safety, street vacatIon, freeway and street construction, change or establishment of street grades, or the installatIon of sewers, drains, water pipes, power lines, signal lInes, tracks, or any other type of structures or Improvements by public agenCIes; provided, however, that Grantee 1n all such cases shall have the prIvileges, and be subject to the oblIgations, to abandon any property of the Grantee In place. Upon the failure of the Grantee to commence, pursue, or complete any work required by law, or by the provisions of 56 e . this Chapter, or by lts franchIse, to be done in any street or other publlC place wlthin the tIme prescribed, and to the satisfactIon of the General SerVIces DIrector, the General Services DIrector} at his optIon, may cause such work to be done, and the Grantee shall pay to the City the cost thereof in the ItemIzed amounts reported by the General SerVIces Director to the Grantee WIthIn thIrty (30) days after receIpt of such itemized report. Clty shall be permItted to seek legal and equitable relief to enforce the provisions of this Section. (d) Any poles or other fixtures places In or adjacent to any street by the Grantee shall be placed In such manner as to comply WIth all requirements of the City. (e) Grantee shall, at the request of any person holding a mOVIng permit issued by the CIty, temporarily raise or lower its wires to permit the mOVIng of buildings. The expense of such temporary removal or raIsing or lowerIng of WIres shall be paId by the person requestIng the same, and Grantee shall have the authority to require such payment In advance. Grantee shall be gIven not less than forty-eIght (48) hours notIce to arrange for such temporary WIre changes. (f) Grantee shall notify CIty regardIng the need to trim trees upon and overhanging streets of City so as to prevent the branches of such trees from coming In contact wlth the WIres and cables of Grantee; at the optIon of CIty, such trImmIng may be done by City at the expense of Grantee, or by Grantee under CIty'S supervIsion and dIrection of the expense 57 e e of Grantee. When authorIzed, trimming shall be limited to the area required for clear cable passage and shall not 1nclude maJor structural branches WhICh materially alter the appearance and natural growth habits of the tree. SECTION 63038. Construction and TechnIcal Standards. (8) ConstructIon Standards. (1) Grantor Codes and Perm~ts. Grantee shall comply WIth all applicable CIty construction codes and permIts procedures. City shall be entItled to charge reasonable permit and inspectIon fees to recover the speCIal nonrecurrIng InspectIon costs Imposed by the construction or reconstruction of the cable system, or by the constructIon, remodelIng, or maIntenance of bUIldIngs, structures, or grounds withIn the City and under control of Grantee. (2) Comollance WIth S~~ety Codes. ~ll constructIon practices shall be in accordance WIth all applicable sections of federal and state occupational and safety acts and any amendments thereto as well as all state and local codes where applicable. (3) Comoliance with Pole ~ttachment Standards. ~ll aerial construction shall comply WIth the practices included In the Bell System Code of Pole LIne ConstructIon. (4) Comollance Wlt~ Electrical Codes. All InstallatIon of electronic equipment shall be of a permanent nature, durable and Installed in accordance with the prOVISions of the National Electrical Code (NatIonal Fire ProtectIon ASSOCIatIon) and the National Electrical Safety 58 " It Code (National Bureau of Standards), as amended, and all appllcable state and local codes. (5) 1\ntennas and Towers. Antenna supportlng structure (towers) shall be designed for the proper loading as specIfied In Electronics Industry ~ssoclation's R.S. 222-~ specifications. (6) Comollance With AVIation ReauIrements. Antenna supporting structures (towers) shall be paInted, lIghted, erected, and malntalned In accordance WIth all applicable rules and regulations of the Federal AviatIon AdmInistration and all other applIcable state or local codes and regulatlons. (7) ConstructIon Standar~~ ~nd ReqUirements. All of Grantee's plant and equipment including, but not limited to, the antenna slte, headend and dlstributIon system towers, house connections, structures, poles, WIre, cable, coaxIal cable, fixtures and appurtenances shall be installed, located, erected, constructed, reconstructed, replaced, removed, repaired, maIntaIned, and operated In accordance WIth good englneer1ng practIces, performed by experIenced maintenance and constructIon personnel so as not to endanger or interfere with improvements CIty may deem proper to make, or to interfere In any manner WIth the rights of any property owner, or to hinder or obstruct pedestrIan or vehIcular trafflc. (8) Safety, NUIsance Reculrements. Grantee shall at all tImes employ ordInary care and shall install and maintaIn In use commonly accepted methods and devices 59 .-= i!II.-_ - e preventing failures and 8cc~dents whIch are likely to cause damage, InJury, or nUIsance to the publlC. (b) Technical Standard~. The Cable Communications System shall meet all technIcal gUIdelines of the FCC, and all standards contained In the franchIse agreement. (c) 1~~t and CQmpllan~~ Pro~~dure. Grantee shall submit, withIn sixty (60) days after the effective date of the franchise agreement, a detailed test plan describIng the methods and schedules for test~ng the cable communIcatIons system on an ong01ng baSIS to determine compliance with the provisions of the franchise agreement. The tests shall be In general conformance w~th the prOVIsions of the Standards of Good EngineerIng PractIces for Measurements on Cable TeleVISIon Systems, Issued by the National Cable Television Associatlon, and performed at intervals no greater than twelve (12) months. The tests may be wltnessed by representatIves of City, and wr~tten test reports shall be submitted to CIty. If more than ten percent (10%) of the locatIons tested fall to meet the performance standards, Grantee shall be required to indicate what correctIve measures have been taken, and the entire test shall be repeated. A second failure of more than ten percent (10%) may result, at City's option, in approprlate remedies. (d) SpeCIal Tests. At any tIme after commencement of serVIce to subscrIbers, CIty may reqUIre add~tional tests, full or partlal repeat tests, dIfferent test procedures, or tests involVIng a specific subscriber's termInal. Requests 60 e e for such additional tests will be made on the basis of complaInts received or other eVIdence IndIcatIng an unresolved controversy or sIgnIfIcant noncompliance, and such tests shall be lImIted to the partIcular matter In controversy. City shall endeavor to so arrange Its requests for such special tests so as to mInImIze hardsh~p or inconvenience to Grantee or to the subscriber. SECTION 63039. Areawide InterconnectIon. (a) InterconnectIon ReqUIred. Grantee shall Interconnect public usage channels of the cable communications system with any or all other cable systems in adjacent areas, upon the directIve of City. InterconnectIon of systems shall permIt Interactive transmission and reception of program material, and may be done by dIrect cable connection, mIcrowave lInk, satellIte, or other approprIate method. (b) InterconnectIon Procedure. upon receiving the directive of City to interconnect} Grantee shall immedIately Initiate negotIations WIth the other affected system or systems, and shall report to city the results of such negotiations no later than sixty (60) days after initiation. (c) RelIef. Grantee may be granted reasonable extenSIons of time to Interconnect or CIty may rescind Its order to interconnect upon petItIon by Grantee to City. City may grant said request If it fInds that Grantee has negotIated In good faIth and has faIled to obtain an approval from the system or systems of the proposed interconnectIon, or that the 61 e e cost of the interconnection would cause an unreasonable or unacceptable increase in subscrIber rates. (d) CooDeratIon Reculred. Grantee shall cooperate wIth any InterconnectIon corporatlon, regional Interconnection authorIty or CIty, County, State, or federal regulatory agency which may be hereafter establIshed for the purpose of regulatIng, flnanclng, or otherWlse provIding for the InterconnectIon of cable systems beyond the boundaries of the franchlse area. (e) Inltlal Technical ReCUlrements to ~ssure Future InterconnectIon Gapabtlity. (1) Every Grantee receIving a franchIse to operate a cable communIcations system wlthin the franchlse area shall use the same frequency allocations for commonly provIded televisIon sIgnals so far as IS technIcally and economIcally feasible. (2) Grantee shall prOVIde local origInatIon and access equipment that is compatIble throughout the area so that VIdeocassettes or VIdeotapes can be shared by varIOUS systems. 62 e e subchapter 13F. SerVIce ProvIsions. SECTION provIde the 63040. SerVIces to be ProvIded. Grantee shall initIal serVices lIsted in the franchise agreement. Services shall not be reduced without thIrty (30) days prior notIfication to City. (a) A franchIse applIcation or proposal for renewal shall include a descriptIon of Grantee's system deSIgn and a descrIption of programming and services being offered, includIng optional premIum serVices, a description of facilities being proposed for local origInation programmIng} and facilItIes beIng offered to various communIty lnstItutlons. The offer of programming and serVIces contaIned withIn a Grantee's applIcatIon shall be deemed a binding offer of such Grantee for and to the benefit of City and the subscrIbers of Grantee. In the event a program originator ceases to provide a servlce, or in the event Grantee determines that other programming or cable serVIces may be of greater benefIt to subscribers, Grantee may} SUbJect to to subsections (a) and (b) of this Section, and upon thIrty (30) days prIor wrItten notice to CIty, substitute serVIces. CIty may Include categories of VIdeo programming or other serVIces as franchIse requirements as provided by the Cable CommunIcations PoliCY Act of 1984. (b) The system, after the substItute services, shall satisfy IncorporatIon of such the warranties made by 63 . - Grantee to subscrIbers and potentIal subscribers In its applIcation for a franchIse. The CIty CouncIl shall have the right to reVIew any actual or proposed substItution of service that Grantee has made or may make and may order a change thereIn if It determInes, after a hearIng, that any warranty has been violated, or that certaIn broad categorIes of vIdeo or other informatIon programs that were committed by Grantee In Its Proposal are not beIng dellvered. ~ny such order shall issue only after a publIC hearIng has been scheduled and held; and wrItten notice of such hearIng shall have been prOVided to Grantee and to the public at least thirty (30) days prior to such hearlng. Any such order may be enforced by an approprIate actIon In the courts of CalifornIa or the United States. A Grantee shall not, In relatIon to this SectIon, be deemed to have waived any rIght accorded to a franchIsed cable teleVISIon operator ariSIng under the First Amendment to the ConstItutIon of the UnIted States or Article I, SectIon 2 of the CalifornIa ConstitutIon. (c) NotWIthstanding subsectIons (al and (bl, Grantee may, in accordance wlth the Cable CommunicatIons Policy Act of 1984, upon thIrty (30) days prior written notice to CIty, rearrange, replace, or remove a partIcular cable service reqUIred by the franchise if: (1) Such serVIce 1S no longer avaIlable to Granteej or 64 e e (2) Such service is ava~lable to Grantee only upon the payment of a royalty required under Section 801(b)(2) of TItle 17, United States Code, WhlCh Grantee can document: (i) Is substantially in excess of the amount of such payment required on the date of Grantee's offer to provIde such service, and (il) Has not been specifIcally compensated for through a rate Increase or other adjustment. Notwithstanding subsectlons (a) and (b), Grantee may take such actIons to rearrange a particular serVIce from one service tIer to another, or otherwise offer the service, if the rates for all of the serVIce tIers involved in such actions are not subject to regulatIon. SECTION 63041. ~asIc Cable Servl~e. The ~BaSIC Cable SerVIce" shall lnclude any service tIer which includes the retransmiSSIon of local television signals and shall lnclude at least one channel for public access, one channel for educatIonal access, and one for government access. This serVIce shall be provIded to all subscribers at the establIshed monthly subscription rates. SECTION 63042. BaSIC Radlo Serv~ce. The "Basic RadIO Service" shall Include the prOVISIon of all audio services designated in the franchise agreement, includlng retransmiSSIon of local broadcast FM radio slgnals, and cable cast FM signals. ThIS serVIce shall be provIded to all subscrlbers at establIshed monthly subscriptlon rates. 65 .. e SECTION 63043. Xpstltut~onal ServIce. If specified in the franchIse agreement, the "InstItutional SerVIce" shall include the provision of transmission and/or receptIon servIces to InstItutIonal users, on a commercIal use basIs at established rates. SerVIces may include the distr1bution of video or non-VIdeo SIgnals. SECTION 63044. ~dditlonal Subsc r iber _ Services. "AdditIonal Subscriber SerVIces," not included 1n the services speclfled above, may be prOVIded eIther withIn the basIc cable service rates or on a premIum basis, subJect to applIcable law. SECTION 63045. Local OrIcination Channel(s). Grantee shall operate any cablecastlng studIOS on a h1gh-quality, profeSSIonal baSIS for the purpose of providIng cablecast programming responsive to local needs and Interests. The prImary emphaSIS for the local orIgInatIon channel(s) shall be on prOVIdIng communIty-focused programmIng that IS unavailable to vIewers on broadcast teleVISIon channels. SECTION 63046. fVblic, E9ucatl9nal: and Government (PEG) Access FacllitleS. Grantee shall provide the PEG access faCIlities, Including channel capaclty, necessary Interface eqUIpment, and cabling, to permit operatIon as speCIfied in the franchise agreement. 66 e . SECTION 63047. Cable Channels for Commercial Use. Grantee shall designate channel capacIty for commercial use as requlred by applIcable law. SECTION 63048. Leased Use of PEG Access FaCIlities. If Clty determ~nes that a new service would be In the public Interest and receIves a bona flde offer from a third party to provide such a service, Grantee shall be offered the first right of refusal to provide the serVIce on the same terms. If Grantee declines to provIde the serVice, City may utilize appropriate PEG access fac111tIes to accommodate that service. SECTION 63049. Universal Connection. City may require that all dwelllng units Within the franchise area shall be connected phYSIcally to the cable system by Grantee by means of drop cables terminating at each dwelling unit, whether or not the dwelling unit's occupants deSire to subscrlbe to cable serVIce. The cost and charges shall be determined at the time such connectIon is required. Grantee shall be entitled to recover the incremental cost of providing a universal connectIon. Subchapter 13G. Operation and Maintenance. SECTION 63050. Ooen Book~ and Records. City shall have the right to Inspect at any tIme durlng normal business hours all books, records, maps, plans, service complaInt logs, performance test results and other like 67 e e materIals of Grantee which relate to the operatIon of the franchIse. Grantee shall keep a separate record for the franchlse at an office wIthIn the franchise area, WhICh record shall show the items set forth hereIn. Grantee shall provide such lnformation In such form as may be reasonably requIred by city for said records. If any of such books or records are not kept In the local office, or upon reasonable request made available to City, and If City shall determIne that an examinatIon of such records 1S necessary or approprlate to the performance of any of CIty'S duties, then all travel and maIntenance expense necessarIly Incurred In making such examinatIon shall be paid by Grantee. SECTION 63051. Records ReqUIred. (a) In any event Grantee shall at all tImes maintain; (1) The complaInt fIle required by SectIon 63063 herein. (2) A full and complete set of plans, records, and uas-builtU maps shOWIng the exact locatIon of all cable communicatIons system equipment installed or In use in the franchIse area, exclusive of subscrlber serVIce drops. SECTION 63052. RIchts of Individuals. (a) Non-DIscrImInatIon. GranteE! shall not deny serVIce, deny access, or otherWIse dIscrImInate against subscrIbers, channel users, or general CItIzens on the basis of sex, race, color, religion, ancestry, natIonal origIn, age, 68 e - handicap, pregnancy, marItal status, family compositIon, or the potentlal or actual occupancy of mInor children. Grantee shall comply at all tImes with all other applIcable federal, state, and local laws and regulatIons, and all executIve and admInIstrative orders relatIng to nondIscrImInation WhICh are hereby lncorporated and made part of thIS ordInance by reference. (b) Fairness ~nd ~cces~lb~llty. The entire system of Grantee shall be operated 1n a manner consistent with the prInCIple of fairness and equal accessibIlity of its faCllit1es, eqUIpment, channels, stUdIOS, and other serVIces to all CItIzens, bUSInesses, publIC agenCIes, and other entItles haVIng a legitimate use for the system, and no one shall be arbItrarIly excluded from ItS use. ~llocatlon of use of saId facilities shall be made according to the rules or deCIsions of Grantee, City In its lawful exercise of regulatory authorlty, and any state or federal regulatory agencies affecting the same. SECTION 63053. Continuitv of Service Mandatorv. - - (a) It shall be the right of all subscrIbers to contlnue receIVIng serVIce lnsofar as theIr fInancial and other oblIgations to Grantee are honored. In the event that Grantee elects to overbulld, rebuild, modify, or sell the system, or CIty gIves notice of Intent to termInate or falls to renew this franchIse, Grantee shall act so as to ensure that all subscribers receIve continuous, uninterrupted serVIce. 69 e e In the event of a change of franchisee, or in the event a new operator acquires the system, Grantee shall cooperate wIth City, new franchIsee, or operator in ma~ntalning continulty of service to all subscribers. DurIng such period, Grantee shall be entItled to the revenues for any period during wh1ch it operates the system, and shall be entitled to reasonable costs for Its services when It no longer operates the system. (b) In the event Grantee fails to operate the system for seven (7) consecutIve days wIthout prIor approval of City or wIthout just cause, CIty may, at its optIon, operate the system Or deSIgnate an operator untIl such t1me as Grantee restores serVIce under condItIons acceptable to City or a permanent operator 1S selected. If CIty IS requIred to fulfill th1s oblIgatIon for Grantee, then during such period as CIty fulfIlls such oblIgatIon, City shall be entItled to collect all revenues from the system, and Grantee shall reImburse CIty for all reasonable costs or damages in excess of the revenues collected by City that are the result of Grantee's faIlure to perform. SECTION 63054. Grantee Rules and Reaulatlons. Grantee shall have the authority to promulgate such rules, regulatIons, terms, and condItIons governing the conduct of its bUSIness as shall be reasonably necessary to enable Grantee to exerCIse ItS rIghts and perform Its oblIgations under the franchise, and to assure an uninterrupted service to each and all of ItS customers. Such rules, regulations, 70 e . terms, and conditIons shall not be In conflIct wIth the provisions hereof or applicable state and federal laws, rules, and regulations. Such rules, regulations, terms and conditions shall be flIed wIth CIty. SECTION 63055. Uniform and Vehicle Identiflc~tion. Every employee of Grantee or its constructIon contractors or subcontractors shall be clearly identlfied wIth the name of Grantee visible to the publlc as a representatIve of Grantee. Every serVIce vehicle of Grantee or its construction contractors or subcontractors shall also be clearly marked. All letters and numbers on such vehicles shall be at least three (3) inches high. Grantee employees and agents shall also wear an IdentlfIcatlon badge wIth the agent's name and photograph. SECTION 63056. Equal OpportunIty froQrams. Throughout the term of the franchIse, Grantee shall conduct its business as an Equal Opportunity Employer. In additIon, throughout the term of the franchIse, Grantee shall maIntain a policy that all employment declsions, practIces, and procedures are conducted wIthout discrimInatIon in VIolatIon of state or federal law on the basIs of an Individual's race, color, religIon, age, sex, natIonal orIgin, or phYSIcal or mental handIcap. Grantee's POlICY shall apply to all employment actions lncluding advertiSIng} recruiting, hIrIng, promotion} transfer, renumeratlon, selectIon for traIning, company benefits} diSCIplinary action} lay-off, and termination. 71 e e carry out thIS policy through continued dedication to a determlned and sustained effort to provide Grantee shall equal employment opportunit1es. Subchapter 13H. Consumer ProtectIon. SECTION 63057. Reauests for Cable SerVIce and ReDairs. - - (a) Grantee shall maintaIn an offIce In the serVIce area WhICh shall be open not less than fifty hours per week, with a mInImum eight hour day on weekdays and four hour day on Saturdays. Grantee shall maintain a publicly 11sted toll-free telephone with suffIcient communication lines and staff so as to receIve requests for Inltlsting cable serVIce and requests for repa1rs, bIllIng, or adJustments on a twenty-four (24) hour a day basis. (b) Grantee shall render efficient serVIce, make repairs promptly} and Interrupt service only for good cause and for the shortest time possIble. Such interruptions, insofar as possIble, shall be preceded by notice and shall occur during a period of minimum use of the system. A written log or an equIvalent stored In computer memory and capable of access and reproductIon, shall be maintaIned for all service Interruptions and requests for cable serVIce as reqUIred by Section 63063. (c) Grantee shall maintain suffiCIent repair and malntenance crews capable of responding to subscriber complaInts or requests for serVIce withIn the follOWIng time 72 e e periods after receipt or notlfication of the complaint or request, including weekends. No charge shall be made to the subscrIber for this service unless the serVIce request can be demonstrated to be both repeated and non-cable system in orlgln, or as a result of damage caused by subscrIber. (1) Svstem Outaae. WIthln two hours of receiving subscriber calls WhICh by number identify a system outage of sound or plcture of one or more channels, affecting all subscribers of the system or a consIderable number thereof. (2) Isolated Outace. Wlthin 24 hours of receIVIng a request for serVIce identlfYlng an isolated outage of sound or pIcture for one or more channels. (3) InferIor Receotion Oualltv. Wlthln 48 hours - - - of receiving a request for serVlce identIfYIng a problem concerning pIcture or sound qualIty. Grantee shall be deemed to have responded to a request for serVlce under the prOVISIons of this Sectlon when a technlclan arrives at the service location, and in the case of (1)} (2), and (3) above, leaves wfltten notificatIon of such arrival after makIng reasonable efforts to notify the subscriber of the technIcian's presence. SubscrIbers not satisfled that services have been provlded as outlIned In Chapter 13, ArtIcle VI of the Santa Monica MunIcipal Code and the FranchIse Agreement may notIfy the System Manager. Upon notlflcatIon by SUbscflber, the Grantee shall work WIth the subscriber to cure the failure of service WIthin 48 hours. If the failure is not cured within 73 e e that tIme period, Grantee shall credIt the subscrIber's account on a pro rata baSIS for loss of serv~ce commenCIng from the time of notIfIcatIon by subscriber to Grantee. Grantee shall at the t~me of initial subscrIption to the system, and annually thereafter, furnlsh a notIce to subscribers of their right to a refund for any loss or interruption of serVIce for 48 hours or more. SECTION 63058. Comolalnt Procedure. (a) Procedure~. Grantee shall establIsh procedures for receIVIng, actIng upon, and resolving subscriber complaInts to the satIsfaction of the Clty Manager. Such procedures shall include a method for resolVIng subscrIber complaInts without interventIon by CIty and shall prescrIbe the manner In WhICh a subscrIber may submit in wrItIng a complaint that Grantee has violated any provision of thIS Chapter, or the terms and conditions of the subscriber's contract WIth Grantee and the manner In WhICh the Grantee WIll promptly resolve such complaInt. Grantee shall furnish a notice of such procedures to each subscrIber at the tIme of InItial subscriptIon to the system, and annually thereafter. (b) ComplaInts to Grantee. Any subscrIber who cannot resolve a dIspute with the Grantee may fIle a complaint with the Grantee on a form approved by the CIty Manager. ImmedIately upon receIpt of a complaint from a subscriber, Grantee shall assign a case number to such complaInt and send to the complaIning subscrIber written acknowledgment of 74 e e recelpt of the complaint as well as a descr1ption of the complaInt resolutlon process. (c) Grantee Invest1oation. Upon receipt of a Subscr1ber Statement of Complaint, Grantee shall conduct an Investigation of the subscrIber complaInt. Grantee, withIn ten (10) days of receIVIng the complaint, shall not1fy the subscrlber In writIng of the results of the Investigation, Its proposed action or reSOlutIon, If any and the reason for ItS dec1sion. Grantee shall also notify the subscriber of the subscriber's right to file a request for hear1ng wIth C1ty in the event the subscriber is dIssatisfIed wIth Grantee's deCIsion. SECTION 63059. Recuest for Hearina. (a) ~ subscriber who is dlssatlsfled wIth Grantee's decision or who was not sent a wrItten deCIsion wlthln the ten (10) day period can file a request for a hearing with the City Clerk withIn ten (10) days of receipt of Grantee's deCIsion or if Grantee has faIled to issue a decision as reqUIred by SectIon 63058(b), WIthin thIrty (30) days of filing of the subscrIber's complaInt. (b) The Clty shall notIfy the Grantee of the request for a hearIng and the Grantee shall immedIately forward to the CIty copies of all materIals, includlng the complaint, investigation reports, and deciSIons, related to the dispute. The CIty shall set the matter for hearIng as prOVIded in SectIon 63060 unless It Informally resolves the complaint to the subscriber's satisfactIon WIthIn ten (10) days. 75 e e SECTION 63060. Comolalnt Hearlncs Conducted bv Hearinc - - Of~lcer. ~ hearlng shall be conducted by a hearing officer appoInted by City folloWIng notice 1n writIng speClfy~ng the time and place for such hearing. The hearing shall be conducted in accordance with procedures established by the City pursuant to Municipal Code Section 6126C-E and w111 be scheduled within twenty (20) days of receipt of the request. The hearing shall be conducted Informally, and the parties may offer any eVIdence relevant to the dispute, which the hearing officer may deem necessary to an understanding and determinatlon of the dispute. The decision of the hearing officer shall be flnal and there shall be no right of appeal. Grantee shall defray the full cost of the hearIng officer proceedings. In the event Grantee fails or refuses to advance fees or costs as required by the hearIng officer, such fees or costs shall be obtained from the securIty fund. The procedures provided in thiS Section shall not limit any common law or statutory rIghts of subscribers. 76 e . SECTION 63061. ComDlaint NotIficatIon. Grantee shall provIde written notIce to each subscrIber at least once every calendar year describIng the procedure establlshed by Grantee for resolv1ng subscriber complaInts and of the subscriber's right to have Grantee's response to a subscriber complaInt revlewed by the C1ty 1n accordance with the proviSIons of this ordinance. The notIce shall Include the name, business address, and bUSIness telephone numbers of Grantee's office and of City offlce designated to receIve complaints. The form of the notice shall be subJect to the approval of Clty. SECTION 63062. RemedIes for Vlolatlons. A hearIng offlcer may, as a part of a subscrIber complaint decision Issued under the provislons of this Chapter, impose a penalty on Grantee as specified In the franchIse agreement. A penalty may be lmposed only if the hearlng offIcer finds that Grantee has arbitrarily refused or failed without justification to comply WIth the provisions of this Chapter} including, but not limlted to, fallIng to prOVIde a wrItten response to a subscriber complaInt. SECTION 63063. Comolalnt FIle and Reoorts. An accurate and comprehenslve file shall be kept by Grantee of any and all complaints regarding the cable system. All service complaint records shall be retaIned on file for a period of three (3) years. Complete records of Grantee's actIons in response to all complaInts shall be kept. These flIes and records shall include: 77 e e (a) A summary of complaints, identIfying the number and nature of complaInts} the date and time complaInts were received, and theIr disposltlon, In a form approved by CIty. A copy of the summary shall be completed for each month and submitted to CIty by the tenth day of the succeeding month. (b) A wrItten or computer-stored log and summary of all serVlce InterruptIons. (c) A wrItten or computer-stored log and summary of all requests for cable service and theIr dlSposltlon. (d) The results of an annual opinion survey report WhICh IdentIfIes satIsfaction or dissatisfaction among subscrIbers WIth cable communIcatIons serVIces offered by Grantee. A copy shall be submItted to CIty no later than two (2) months after the end of Grantee's fiscal year. The survey requIred to make saId report shall be In a format approved by CIty and may be In a form that can be transmitted to subscribers WIth one or more bIlls for service, such as postage-pald self-addressed postcards. SECTION 63064. Tenant RightliS. Grantee shall be requIred to provide service to tenants in indlvldual units of a multiple hOUSIng faCIlIty with all services offered to other dwellIng unIts within the franchIse area, so long as the owner of the facilIty consents in writing, if requested by Grantee, to the follOWIng: (a) Grantee's prOVIdIng of the service to units of the faCIlity. 78 e a (b) Reasonable condltlons and times for installation, maintenance, and InspectIon of the system on the facility premises. (c) Payment to owner by Grantee of reasonable fees for access to property. (d) Reasonable conditions promulgated by Grantee to protect Grantee's equipment and to encourage widespread use of the system. (e) ~bsence of additIonal rental charges for tenants who receIve cable service. SECTION 63065. CIty Riqhts. When there have been similar complaints made or when there exists other evidence WhICh, in the Judgment of the City Manager, casts doubt on the relIabilIty or quality of cable service, the City Manager may require Grantee to test, analyze, and report on the performance of the system. Such report shall be delIvered to the City Manager no later than fourteen (14) days after the CIty Manager notIfies Grantee of the required report and shall Include the following InformatIon: the nature of the complaints which precIpitated the special tests; what system component was tested, the eqUIpment used, and procedures employed in saId testIng; the results of such test; and the method in WhICh sald complaints were resolved. If requested, the CIty Manager may allow Grantee additional tIme to complete the report for good cause. The City Manager may reqUIre that tests and analyses shall be superVIsed by a professional engIneer not on the 79 e e permanent staff of Grantee. ~fter the engineer has sIgned all records of the speCIal tests they shall be forwarded to the CIty Manager with a report interpreting the results of the tests and recommending actIons to be taken by Grantee and CIty. The City Manager may require tests, analyses, and reports coverIng specIfIC subjects and characteristics based on complaInts or other evidence when and under such CIrcumstances as the City has reasonable grounds to believe that the complaInts or other eVIdence requires that tests be performed to protect the public agaInst substandard cable service. Grantee shall be responsIble for the costs of any and all tests, analyses, and reports reqUIred under thIS Section. SECTION 63066. Privacv. (a) Each Grantee shall strlctly observe and protect the rights of privacy and of property of subscrIbers and users at all times. Information on indIVIdual subscrIbers, IndiVIdual subscriber preferences of any kind Including, but not lImited to, VIewing habits, politIcal, social, or economic philosophIes, beliefs, creeds, religions, shopping choices, Interests, opInions, energy uses, medIcal information, banking data or information, or names, addresses, or telephone numbers, or any other personal or prIvate information, shall not be maIntaIned or revealed to any person, mailing serVIce, lnvestigatlng agency or department, company, other agency, or entity unless upon the authority of a court of law or upon 80 - e prlor wrItten permission of the subscrlber. The request for permiSSIon must be contained In a separate document wIth a promlnent statement that the subscrIber IS authorIZIng the permlssion In full knowledge of its proviSIon. Such authorizatIon shall not in any event be required as a conditlon of recelving serVIce. (b) Grantee may release the number of its subscrIbers but only as a total number and as a percentage of the potentlal subscrIbers throughout the CIty. When indicatIng the number of subscribers vIewlng a particular channel at a partIcular tlme, Grantee shall indicate only the total number of subscrIbers viewing durIng the relevant tIme and the percentage of all subscribers which they represent, but never the IdentIty of a particular subscrIber. provide such lnformation to City upon request. (c) ~t the time of entering into an agreement to Grantee shall provIde any cable serVIce or other service to a subscriber and at least once a year thereafter, a cable operator shall provide notice in the form of a separate, written statement to such subscrIber which clearly and conspIcuously Informs the subscrIber of: (1) The nature of personally ldentlflable InformatIon collected or to be collected wlth respect to the subscrlber and the nature of the use of such information. (2) The perIod during which such information Will be maIntaIned by the cable operator. 81 e e (3) The times and place at which the subscriber may have access to such Information In accordance with subsection (f). (4) The limitations provIded by thIS Section with respect to the collectlon and disclosure of information by a cable operator and the right of the subscriber under state and federal law to enforce such limitations. In the case of subscribers who have entered Into such an agreement before the effective date of thIS Section, such notice shall be provided wlthln 180 days of such date and at least once a year thereafter. (d) Information collected on individual subscrIbers shall be limited to Informatlon that IS relevant and necessary to provislon of the services requested by subscribers. (e) Grantee shall be responsible for the accuracy, relevance, and completeness of any information collected, maintained, and revealed about indiVidual subscribers. (f) ~ cable subscriber shall be provided access to all personally Identifiable informatIon regarding that subscriber which is collected and maintained by a cable operator. Such information shall be made avaIlable to the subscriber at reasonable tImes and at a convenIent place deSIgnated by such cable operator. ~ cable subscriber shall be prOVIded reasonable opportunIty to correct any error In such information. (g) Grantee may malntaln such informatIon as IS necessary to bill subscribers for the purchase of any system 82 e . service. Grantee may contract for billing servIces, With the wrItten consent of the City provided that such contractor agrees to be bound by the_ prOVISIons of this Section and the penalties thereto pertaIning. (h) Neither Grantee nor any other person shall inltlate In any form, the discovery of any information on or about a subscriber's premlses wIthout prIor valId authorizatIon from the SUbscrIber potentIally affected. (i) A subscriber may at any tIme revoke any authorizat10n previously made, by delIvering to Grantee in wrIting by mail or otherWIse, hIs/her deCISIon to so revoke. Any such revocation shall be effective upon receipt by franchisee. (J) No monitoring of any subscrIber terminal shall take place without speciflc prior valId wrItten authorization by the user of the termInal In question; provided, however, that Grantee may conduct systemWide or IndIvidually addressed "sweeps" for the sole purpose of verifYIng system integrity. Grantee shall not InItIate a subscriber response mechanism without a finding by the City Manager that the response mechanlsm can operate effectIvely and yet gIve absolute protection agalnst any invaSion of privacy. (k) Grantee shall not tabulate any test results, nor permit the use 01 the system for such tabulation, which would reveal the commercIal product preferences or opInIons of indIvidual subscrlbers, members of their familIes or theIr 83 - . invltees, lIcensees, or employees without prior valid wrItten authorizatIon of the subscrIber. (1) Each compilation, publIcation, tabulatIon, or other disseminatIon of each piece of informatIon made or permitted to be made In vIolation of thIS Section shall be consIdered a separate vIolation. Subchapter 131. RIghts Reserved to CIty. SECTION 63067. Right of Eminent Domain. NothIng contaIned In thIS Chapter shall be deemed or construed to impair or affect, in any way, to any extent, the right of city to acquire the property of Grantee, either by purchase or through the exercise of the right of eminent domain, at a fair and just value, which shall not include any amount for the franchise itself or for any of the rights or priVIleges granted, and nothing contaIned in this Chapter shall be construed to contract away or to modify or abridge, eIther for a term or in perpetuity, the CIty'S rIght of emInent domain. SECTION 63068. RIchts AuthorIzed bv Citv Charter or Ordinanc~. There IS hereby reserved to CIty every right and power WhICh is required to be reserved by the proviSIons of this Chapter or by any law of the CIty, and Grantee, by its acceptance of any franchIse, agrees to be bound thereby and to comply WIth any actIon or reqUIrements of the CIty in Its 84 . - exerClse of such Skllls or power heretofore or hereafter enacted or established. SECTION 63069. Rlaht to Amend Chapter. There IS hereby reserved to the CIty the power to amend any Section of thls Chapter so as to reqUIre addItIonal or greater standards of constructIon, operatIon, maIntenance, or otherWise on the part of Grantee. SECTION 63070. Rlaht to Exer~~s~ Other Governmental Powers. NeIther the grantIng of any franchIse under the prOVIsions of thIS Chapter nor any proviSIon of thIS Chapter shall constitute a waIver or bar to the exerCIse of any governmental rIght of power of City. SECTION 63071. RIght to Bring an ~ctlon. The Clty Council may take such actions as are necessary and convenIent in the exercise of its JurISdIctIon under the prOVIsions of thIS Chapter. SECTION 63072. RICht of Insoection of ConstructIon. City shall have the rIght to inspect all constructIon or InstallatIon work performed subJect to the proviSIons of the franchise and to make such tests as lt shall find necessary to ensure complIance with the terms of this franchise and other pertInent proviSlons of law. SECTION 63073. Ri9~t to Inspect FacilitIes. Grantee shall allow City to make InspectIons of any of Grantee's faci11ties and eqUIpment at any tlme upon reasonable notIce, 85 - . or, in the case of emergency, upon demand without prior notice. SECTION 63074. R1Cht of InterventIon. CIty shall have the rIght of Intervention in any SUIt or proceeding to which Grantee is party, and Grantee shall not oppose such Intervention by City. Subchapter 13J. FranchIse Violations and Termination. SECTION 63075. Remedies for Franchise VIolatIons. If Grantee faIls to perform any obligation under the franchise, or fails to do so in a timely manner, City may at its option, and In its sole discretIon: (a) Assess against Grantee monetary damages up to the limits established In the franchise agreement for material franchise vIolations, said assessment to be levied agaInst the securIty fund, hereInabove provided, and collected by City immediately upon said assessment. The amount of such assessment shall be deemed, without proof, to represent lIqUIdation of damages actually sustained by City by reason of Grantee's failure to perform. Such assessment shall not constitute a waIver by CIty of any other right or remedy it may have under the franchise or under applicable law including, wIthout lImitation, Its right to recover from Grantee such additional damages, losses, costs and expenses, IncludIng actual attorneys' fees, as may have been suffered or 86 - . incurred by CIty by reason of or arIsing out of such breach of the franchise. ThIS provls1on for assessment of damages is intended by the partIes to be separate and apart from CIty'S right to enforce the provlsions of the constructIon and performance bonds provIded for In Sections 63021 and 63022, and is Intended to provide compensation to CIty for actual damages. (b) TermInate the franchise, for any of the causes stated in SectIon 63078, below, or other materIal breach of the franchIse. CIty may, In lts sole Judgment and dIscretion, impose any or all of the above-enumerated measures against Grantee, which shall be In additlon to any and all other legal or equitable remed1es it has under the franchise or under any applicable law. No remedy shall be imposed by CIty against Grantee for any vlolat1on of the franchise wIthout Grantee beIng afforded due process of law, as provided for In Section 63079 below. SECTION 63076. Remedies for Qelay in ConstructIon. CIty may Impose the followlng remedies with regard to delays in new system constructIon, or maJor system reconstruction or expansion: (a) Reduction In the duration of the franchise on a month-far-month baSIS for each month of delay exceedIng SIX (6) months. (b) ForfeIture of constructIon bonds and/or assessment of monetary damages up to the maXImum per day and per incident 87 e . limIts specIfied In the franchIse agreement, levied against the securIty fund, for delays exceedIng one year. (c) TermInation of the franchIse withln one year after award of the franchIse If Grantee has faIled to InItIate scheduled system constructIon or reconstructIon. (d) TermInatIon of the franchise for delays exceeding eIghteen (18) months. ~ny remedIes applied shall be in accordance wIth the procedures contained In Section 63079 herein. SECTION 63077. rrQcedure for Remedvino Franchise VIolations. In the event that CIty determInes that Grantee has Violated any prOVISIon of the franchise, any rule or regulatIon promulgated pursuant hereto or any applIcable federal, state, or local law, City may make a written demand on Grantee that It remedy such VIolatIon. If the VIolation, breach, failure, refusal, or neglect IS not remedied to the satisfaction of City WithIn thIrty (30) days follOWing such demand, City shall determIne whether or not such VIolatIon, breach, failure, refusal, or neglect by Grantee was excusable or inexcusable, In accordance with the following procedure: (a) A public hearIng shall be held and Grantee shall be prOVIded With an opportunIty to be heard upon thirty (30) days written notIce to Grantee of the time and the place of the hearing prOVIded and the allegatIons of franchIse violations. (b) If, after notIce IS gIven and, at Grantee's option, a full public proceeding is held, city determInes that such VIolatIon, breach, failure, refusal, or neglect by Grantee was 88 . - excusable as provided In Section 63081 below, CIty shall direct Grantee to correct or remedy the same w~thIn such addItIonal tIme, in such manner, and upon such terms and conditIons as City may dIrect. (c) If, after notIce IS given and, at Grantee's optIon, a full publIc proceeding is held, City determines that such violatIon, breach, faIlure, refusal, or neglect was Inexcusable, then City may Impose a remedy In accordance with SectIon 63075 above. SECTION 63078. ForfeIture or RevocatIon. (a) Ground~ for ~evocatlon. City reserves the right to revoKe any franchise granted hereunder and rescind all rIghts and priVIleges associated wIth the franchise In the event of a material breach of thIS ordinance or the franchise agreement. A material breach of the franchise shall Include, but not be limIted to: (1) If Grantee should default in the performance of any of its materIal oblIgatIons under this ordinance or under such documents, agreements, and other terms and proviSIons entered Into by and between CIty and Grantee, subJect to the prOVIsions of SectIon 63077. (2) If Grantee should fail to provIde or maIntain In full force and effect, the liabilIty and indemnificatIon coverages or the securIty fund and bonds as required herein. (3) If any court of competent jurisdIctIon, or any Federal or State regulatory body by rules, decisions, or other actIon determInes that any materIal prOVISIon of the 89 e e franchIse documents, Including this ordinance, the franchise agreement, and Grantee's appl1catlon 15 invalId or unenforceable prior to the commencement of system construction. (4) If Grantee should WIllfully violate any orders or rulings of any regulatory body having jurIsdIction over Grantee relat1ve to the franchise. (5) If Grantee ceases to prOVIde serVIces of the cable communicatIons system for any reason wIthin the Control of Grantee. (6) If Grantee attempts to evade any of the proviSIons of thIS ordInance or the franchIse agreement or attempts to practIce any fraud or deceIt upon CIty. (7) If Grantee's constructIon} reconstructIon, or system extension schedule IS delayed for more than eighteen (18) months later than the schedule contained In the franchIse agreement and City fInds that the delay was not excusable under the prOViSIons of SectIon 63081. (8) If Grantee becomes Insolvent, unable, or unWillIng to pay Its debts} or upon listIng of an order for relief In favor of Grantee in a bankruptcy proceedlng. (b) Procedure Prior to RevocatIon. (1) CIty may make wrltten demand that Grantee comply with any such requirement, limItatIon, term, conditIon, rule, or regulatIon or correct any actIon deemed cause for revocatIon. If the failure, refusal, or neglect of the Grantee contInues for a perIod of thIrty (30) days following 90 it . such written demand, City may place the Issue of termInatIon of the franchlse upon a regular City Council meet~ng agenda. C~ty shall cause a wrltten notlce of intent to request termInation, includIng the t~me and place of the meeting, to be served upon such Grantee at least ten (10) days prIor to the date of such meetIng. Such notice shall be published In a newspaper of general cIrculation within the franchise area at least once, ten (10) days before such meetIng. (2) City shall hear any persons Interested thereIn, and shall determIne whether Grantee has committed a material breach of th~s ordInance or the franchise agreement, and, if so, whether such breach was Willful. (3) If City determInes that Grantee has committed a materIal breach, City may, by resolution, declare that the franchise of such Grantee shall be termInated and security fund and bonds forfeited, or the CIty may, at its option and if the materIal breach is capable of being cured by Grantee, direct Grantee to take appropriate remedial action WIthIn such tIme and manner and upon such terms and conditions as City shall determine are reasonable under the CIrcumstances. The CIty may place conditlons on any Grantee forfeiture, including, but not limIted to, establIshing the date on which such forfeIture shall become effective. SECTION 63079. Procedures in the Event Qf Termination or EXpiratIon. (a) DlSposltlQn of FacJ.litles. In the event a franchise expIres, is revoked, or otherwise terminated, City 91 . . may order the removal of the system facilitIes from the franchIse area wIthIn a reasonable period of time as determined by the CIty or require the orIginal Grantee to maIntaIn and operate its cable system untIl a subsequent Grantee is selected and a s~bsequent or modIfied cable system becomes operatIonal. Grantee shall promptly, upon being given ten (10) days notIce, remove from the streets or publIC places all such property of such system other than any WhICh the General SerVIces DIrector may permit to be abandoned In place. In the event of such removal, Grantee shall promptly restore the street or other area from which such property has been removed to a condItIon satisfactory to the General SerVIces DIrector. Any property of Grantee remaIning in place thirty (30) days after the termInatIon or expIration of the franchise shall be conSIdered permanently abandoned. The General SerVIces DIrector may extend such tIme not to exceed a reasonable period. (b) Abandonment of Pro~erty. Any property of Grantee to be abandoned In place shall be abandoned in such manner as the General SerVIces DIrector shall prescrIbe. SubJect to the prOVISIons of any utIlity JOInt use attachment agreement, upon permanent abandonment of the property of Grantee in place, the property shall become that of City, and Grantee shall submIt to the General SerVIces Director an Instrument In wrItIng to be approved by the CIty Attorney, transferrIng to City the ownershIp of such property. 92 -- . (e) RestoratIon of Pro~erty. In removIng its plant, structures, and eq~lpment, Grantee shall refIll, at Its own expense, any excavation that shall be made by it and shall leave all public ways and places In as good condition as that prevailIng prIor to Grantee's removal of its equipment and appliances WIthout affectIng the electrical or telephone cable WIres, or attachments. The lIability, indemnity and insurance, and the security fund and bonds provided shall contInue In full force and effect durIng the period of removal and until full compliance by Grantee WIth the terms and conditions of this Section. (d) Extended OperatIon. Upon either the expiration or revocation of a franchise, CIty may require Grantee to continue to operate the cable communicatIons system for a defined period of tIme not to exceed twenty-four (24) months from the date of such expIratIon or revocatIon. Grantee shall, as trustee for Its successor In interest, contInue to operate the cable communIcatIons system under the terms and conditions of thIS ordinance and the franchise agreement and to prOVIde the regular cable service and any and all of the other serVIces that may be provlded at that tIme. CIty shall be permitted to seek legal and eqUItable relief to enforce the provlslons of thIS SectIon. (e) Gran~or<s RIght ~ot ~ffected. The termination and forfeiture of any franchise shall In no way affect any of the rIghts of CIty under the franchise or any provision of law. 93 e e SECTION 63080. ReceivershiD and Foreclosure. (a) ~ny franchlse granted shall, at the option of City, cease and termInate one hundred twenty (120) days after the appOIntment of a rece~ver or receivers or trustee or trustees to take over and conduct the business of Grantee whether in a recelvershlp, reorganIzation, bankruptcy, or other action or proceedIng unless such receivership or trusteeship shall have been vacated prior to the explration of saId one hundred twenty (120) days, or unless: (1) Such receIvers or trustees shall have wlthin one hundred twenty (120) days after their election or appointment, fully complied wlth all the terms and provislons of thIS ordinance and the franchIse granted pursuant hereto, and the receIvers or trustees wlthln saId one hundred twenty (120) days shall have remedied all defaults under the franchIse; and, (2) Such receivers or trustees shall, within saId one hundred twenty (120) days, execute an agreement duly approved by the Court haVIng JurIsdictIon on the premises, whereby such receIvers or trustees assume and agree to be bound by each and every term, provlsion, and lImitation of the franchise agreement. (b) In the case of a foreclosure or other involuntary sale of the plant, property, and equipment of Grantee, or any part thereof, CIty may serve notice of termInatIon upon Grantee and to the purchaser at such sale, in which event the franchise and rIghts and prIVIleges of Grantee hereunder shall 94 e - cease and terminate thIrty (30) days after service of such notice unless: (1) CIty has approved the transfer of the franchIse, as and In the manner In thIS ordInance provided; and (2) Such successful purchaser shall have covenanted and agreed with CIty to assume and be bound by all the terms and condItions of the franchise agreement. SECTION 63081. Grantee's InabIlity to Perform. In the event Grantee's performance of any of the terms, conditions, obl~gations, or reqUIrements of the franch~se IS prevented or ImpaIred due to any cause beyond Its reasonable control or not reasonably foreseeable, such Inability to perform shall be deemed to be excused and no penalties or sanctIons shall be imposed as a result thereof, provided Grantee has notified City in wrltIng WIthIn thirty (30) days of its discovery of the occurrence of such an event. Such causes beyond Grantee's reasonable control or not reasonably foreseeable shall Include, but shall not be lImIted to, civil emergenCIes. 95 e - Subchapter 13K. Re!,Qrt~. SECTION 63082. Annual Reoorts. At CIty's sole opt1on, wIthIn Slxty (60) days after the close of Grantee's fIscal year, Grantee shall submit a written annual report, in a form approved by C1ty, inelud1ng, but not limIted to, the following informatIon: (a) A summary of the previous year's (or, in the case of the 1nltlal report year, the inItIal year's) actIvitIes In development of the cable system1 Including, but not 11m1ted to, serVlces begun or dIscontInued during the reportlng year, and the number of subscribers for each class of service. (b) A revenue statement, audited by an Independent Certified Public Accountant1 or certIfied by an officer of the Grantee. (el A current statement of costs of construction by component categorIes. (d) A statement of prOJected constructlon for the next two years. (e) A list of Grantee's offIcers, members of Its board of dIrectors, and other princlpals of Grantee. (f) A list of stockholders or other equity Investors holding fIve percent (5\) or more of the votlng Interest in Grantee and its parent, SubSIdIary and affIlIated corporatIons and other entItles, If any. 96 - - (g) To the extent that money, other than profIts, is paId to a parent, subsidiary, or other person affiliated wIth Grantee, the amounts of such payments and the basis for computatIon of such amounts (e.g., the basis for computing any management fees or share of "home office" overhead). SECTION 63083. Plant Survey Report. At city's sole optIon, Grantee shall submIt to CIty an annual plant survey report WhICh shall be a complete survey of Grantee's plant and a full report thereon. SaId report shall include, but not be lImIted to, a descrIptIon and "as-bUIlt" maps of the portions of the franch~se area that have been cabled and have all services available, an approprIate englneerlng evaluatIon includIng sUitable electronlc measurements conducted In conformIty wlth FCC gUIdelInes and franchIse technical standards. Said report shall be In suffiCIent detail to enable City to ascertain that the serVIce requirements and technical standards of the FCC and/or the franchise were achIeved and maintained. If CIty has reason to believe that portions or all of the systeM do not meet either the FCC technIcal guidelInes, or those incorporated into the franchIse agreement, at CIty'S request, but not more often than once per three years, Grantee and CIty shall agree upon the appolntment of a qualified independent engIneer to evaluate and verify the technIcal performance of the cable system. The cost of such evaluatlon shall be borne equally by Grantee and City. 97 ~- -..- e . SECTION 63084. Cop~es of ~eQer~1 ~nd Stqte ~eDorts. Grantee shall subm~t to City copIes of all pleadings, appl~cationsl reports, communIcations and documents of any kind, submItted by Grantee to, as well as copIes of all decisions, correspondence and actIons by, any federal} state, and local courts, regulatory agenCIes and other government bodies relatIng to its cable teleVIsion operations within the franchise area. Grantee shall submit such documents to City sImultaneously w1th their submission to such courts, agenc1es, and bodies; and w1thin ten (10) days after theIr receipt from such courts} agencies and bodies. Grantee hereby waIves any right to claim confidential, privileged, or proprIetary rIghts to such documents unless such confidential rIghts are determined to be confidentIal by law or by the practices of federal or state agencies. Such confidential data exempt from publIC dIsclosure shall be retaIned 1n confIdence by City and its authorIzed agents and shall not be made available for public Inspection. SECTION 63085. Public ~eports. A copy of each of Grantee's annual and other periodiC public reports and those of Its parent, SUbSIdIary, and affiliated corporations and other entities, as City requests, shall be submitted to CIty wlthin ten (10) days of ltS Issuance. SECTION 63086. MIscellaneous Reoorts. Grantee shall submIt to CIty such other 1nformatlon or reports In such forms and at such tImes as CIty may reasonably request or reqUIre. 98 - . SECTION 63087. PublIC Insoection. All reports subject to publIC dlsclosure shall be available for publiC InspectIon at a designated CIty office durlng normal bUSIness hours. SECTION 63088. FaIlure to ReDort. The refusal, fallure, or neglect of Grantee to flle any of the reports requIred, or such other reports as City reasonably may request, shall be deemed a materIal breach of the franchIse, and shall subJect Grantee to all remedIes, legal or eqUItable, WhICh are avaIlable to Clty under the franchlse or otherwise. SECTION 63089. False Statements. Any materially false or mIsleading statement or representatIon made knowingly by Grantee In any report requIred under the franchIse shall be deemed a material breach of the franchIse and shall subject Grantee to all remedies, legal or eqUItable, which are avaIlable to CIty under the franchIse or otherWIse. SECTION 63090. Cost of Report~. All reports and records required under thIS or any other section shall be furnished at the sole expense of Grantee. 99 e . Subchapter 13L. Hiscellaneou~ ~roVlsions. SECTION 63091. ComDliance wIth State and Federal Laws. NotWIthstandIng any other provisIons of the franchIse to the contrary, Grantee shall at all times comply with all laws and regulatIons of the state and federal government or any administrative agenCIes thereof. PrOVIded, however, If any such state or federal law or regulatIon shall require Grantee to perform any serVIce, or shall permIt Grantee to perform any serVIce, or shall prohibit Grantee from performIng any serVIce, In conflIct w~th the terms of the franchise or any law or regulatIon of City, then as soon as pOSSIble following knowledge thereof, Grantee shall notIfy City of the point of conflIct believed to eXIst between such regulatIon or law and the laws or regulations of City or the franchise. SECTION 63092. SeverabilIty: Non-Material ProviSIons. If any prOVISIon of this ordInance or any related agreements is held by any court or by any federal, state, or local agency of competent JurISdiction to be Invalid as conflIctIng with any federal, state, or local law, rule, or regulatIon now or hereafter in effect, or is held by such court or agency to be modified In any way in order to conform to the reqUIrements of any such law, rule, or regulatIon, and If said provision is considered nonmaterial by City, saId prOVIsion shall be considered a separate, dIstInct, and Independent part of this ordInance, and such holding shall not affect the validIty and 100 e . enforceability of all other provisIons hereof. In the event that such law, rule, or regulatIon is subsequently repealed, rescinded, amended, or otherw~se changed, so that the proVls~on WhICh has been held invalid or modifIed is no longer In conflIct wIth the law, rules, and regulat~ons then in effect, said provision shall thereupon return to full force and effect, and shall thereafter be binding on the parties hereto, provided that C1ty shall gIve Grantee th1rty (30) days written notIce of such change before requiring complIance with said prOVIsIon. SECTION 63093. Severabilltv: Material ProviSIons. If any materIal sectIon of this ordinance, as determIned by CIty, IS held to be InvalId or preempted by federal, state, or county regulatIons or laws, any franchise affected by such decisIon shall be deemed termInated. Upon such termination, CIty shall, in Its discretion, negotiate wIth Grantee approprIate modifications to the franchIse to provide reasonable relief to City from such Invalidity or preemption, Including the payment of damages. SECTION 63094. NotIces. Grantee shall maintain WIthIn the franchIse area throughout the term of the franchise, an address for service of notices by mail. SECTION 63095. No Recourse ^cainst the Citv. Grantee shall have no recourse whatsoever against City or its offIcials, boards, comm1ss1ons, agents, or employees for any loss, costs, expenses, or damage arISIng out of any prOVISIon 101 . e or reqUIrement of the franchIse or because of the enforcement of the franchlse. SECTION 63096. Nonenforcement bv CltV. Grantee shall not be relieved of its obllgatlon to comply wIth any of the prOVISIons of thIS ordInance by reason of any failure of the CIty to enforce prompt complIance. SECTION 63097. Waivers. Any provision of thIS ordInance may be waived by City, at City's sole discretion, by CIty Council resolutIon. Grantee may submIt a written request for waIver at any tIme, and the request shall be placed on the agenda for a public hearIng and decision. City shall reach ltS deCIsion no later than one hundred twenty (120) days followlng the receipt of any waiver request. SECTION 63098. Evaluation of Walvers. The CIty Council may authorIze the economic, technical, or legal evaluation of such waiver request and Grantee shall be requlred to reimburse the City for any expendItures Incurred by City in connection with such evaluatlon. Any expenditure and/or reimbursement pursuant to thiS Section shall be exclUSIve of the franchise fee. SECTION 2. Any prOVision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of thiS Chapter, to the extent of such inconSIstencies and no further, are hereby repealed or modIfied to that extent necessary to affect the provlsIons of thIS Chapter. 102 e It SECTION 3. If any section, subsection, sentence, clause, or phrase of th1s Chapter 1S for any reason held to be invalId or unconstitutional by a decision of any court of any competent jurISdIction, such deC1Slon shall not affect the valIdIty of the remaining portIons of the ordInance. The CIty Council hereby declares that it would have passed thIS OrdInance and each and every section, subsectIon, sentence, clause, or phrase not declared Invalid or unconstitutIonal WIthout regard to whether any portion of the ordinance would be subsequently declared invalid or unconstItutional. The Mayor shall sign and the City Clerk shall attest to the passage of thIS OrdInance. The City Clerk SECTION 4. shall cause the same to be publlshed once in the official newspaper withIn 15 days after its adoption. ThIS OrdInance shall become effective 30 days after Its adoptIon. APPROVED ~S TO FORM: ~ '-w. ~_l_ ROBERT H. MYERS CIty Attorney ~ 103 -- . . Adopted and approved this 28th day of April, 1987. Q lA^r ~ _ C -- , Mayor I hereby certify that the foregoing Ordinance No. -- 1407(CCS) was duly and regularly introduced at a meeting of the City Council on the 24th day of March 1987; that the said Ordinance was thereafter duly adopted at a meeting of the city council on the 28th day of April 1987 by the following Council vote: Ayes: Councilmembers: Finkel, Jennings, A. Katz, H. Katz, Reed, Zane and Mayor Conn Noes: Councilmembers: None Abstain: councilmembers: None Absent: Counci1members: None _...__.......... PO'" ....;;;'" . ~ _4. . .:.... '-.;i' __ ~~... __ '.r-:-.r-..~...."--"". ....~.1 - ATTEST: -"'--- ...--::: _..- ~ ,,/ - ..- . - "-... .. '-" -...... - - .- -' /l : -~ ~;..:-p-.;:__ _.~-:., ~ ~- ~/k~.~_ ci toy C:~J"l~.:. _.:.:' -- ~ .-- - _-' "- . . ~ ...., -~- ~ ..-:..;-:-:......