CoxCom Inc Renewing NonExclusive Cable TV Franchise Agreement .c. , . _,
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AN AGREEMENT BETWEEN THE CITY OF RANCHO PALOS
VERDES AND COX COM, INC. RENEWING A
NONEXCLUSIVE FRANCHISE TO OPERATE A CABLE
TELEVISION SYSTEM IN THE CITY OF RANCHO PALOS
VERDES AND SETTING FORTH TERMS AND CONDITIONS
RELATING TO THE RENEWAL OF THE FRANCHISE.
OCTOBER 17, 2000
3
S
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III III
TABLE OF CONTENTS
Page
1 . RENEWAL OF FRANCHISE. 2
1 . 1 . Parties to the Agreement. 2
1 . 2 . Representatives of the Parties and Service of
Notices . 3
1 . 3 . Definitions . 3
1 . 4 . Conflicts . 3
1 . 5 . Grant . 3
1 . 6. Right of Grantor to Issue and Renew Franchise. 4
1 . 7 . Effective Date of Renewal . 4
1 . 8 . Duration. 4
1 . 9 . Franchise Not Exclusive. 5
1 . 10 . Scope of the Franchise. 5
2 . GENERAL REQUIREMENTS. 7
2 . 1 . Governing Requirements . 7
2 . 2 . Franchise Fee. 7
2 . 3 . Payment to Grantor. 8
2 . 4 . Insurance Requirements . 8
2 . 5 . Performance Bonds . 10
2 . 6. Periodic Adjustments . 11
3 . RIGHTS RESERVED TO THE GRANTOR. 12
3 . 1 . Reservation. 12
3 . 2 . Delegation of Powers . 12
3 . 3. Right to Inspect Construction. 12
3 . 4 . Right to Require Removal of Property. 12
3 . 5. Right of Intervention. 12
4 . SYSTEM UPGRADE AND SPECIAL SERVICES . 13
4 . 1 . Upgrade. 13
4 . 2 . Notices Relating to Cable Television System
Upgrades . 13
4 . 3 . Outlets for Public Buildings . 13
4 . 4 . Emergency Alert Capability. 14
4 . 5 . Parental Control Devices. 15
4 . 6. Technical Standards . 15
4 . 7 . No Offset Against Franchise Fees . 16
5. SERVICES, PROGRAMMING, AND CONSUMER PROTECTION STANDARDS. 16
5. 1 . Rates and Charges for Cable Services and
Equipment. 16
5. 2 . Discounts for Senior Citizens . 17
5 . 3 . Leased Channel Service. 17
5 . 4 . Nondiscrimination. 17
5 . 5 . Billings to Subscribers . 17
5 . 6. Termination of Residential Service. 17
5. 7 . Annual Subscriber Notice. 18
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5. 8 . Consumer Protection Standards . 18
5 . 9. Service Interruptions . 18
5 . 10 . Entry on Private Property. 18
5 . 11 . Privacy Rights of Subscribers. 18
6. SUPPORT OF LOCAL CABLE USAGE. 18
7 . DESIGN AND CONSTRUCTION. 19
7 . 1 . System Construction and Extension. 19
7 . 2 . Construction Components and Techniques . 20
7 . 3 . Technical and Performance Standards . 20
7 . 4 . Construction Codes. 20
7 . 5 . Construction Default. 20
7 . 6. Vacation or Abandonment. 21
7 . 7 . Abandonment in Place. 21
7 . 8 . Removal of System Facilities . 21
7 . 9 . Movement of Facilities . 21
7 . 10 . Undergrounding of Cable. 21
7 . 11 . Facility Agreements . 22
7 . 12 . Repair of Streets and Public Ways. 22
7 . 13 . Erection of Poles Prohibited. 22
7 . 14 . Reservation of Street Rights . 22
7 . 15 . Miscellaneous Design and Construction
Requirements . . 23
8 . PERFORMANCE AUDITS AND TECHNICAL DATA. 24
8 . 1 . Performance Audits. 24
8 . 2 . System Testing and Technical Data. 26
8 . 3 . Emergency Repair Capability. 27
9 . REVOCATION, TERMINATION, OR FORFEITURE. 27
9. 1 . Revocation. 27
9. 2 . Grounds for Revocation, Termination, or
Forfeiture. 27
9. 3. Removal of Property. 28
10 . RECORDS; REPORTS; RIGHT TO INSPECT AND AUDIT; EXPERTS. 29
10 . 1 . Grantee to Provide Records . 29
10 . 2 . Records. 29
10 . 3 . Maintenance and Inspection of Records . 29
10 . 4 . Reports of Financial and Operating Activity. 29
10 . 5. Performance Tests and Compliance Reports . 30
10 . 6. Additional Reports . 30
10 . 7 . Communications with Regulatory Agencies . 31
10 . 8 . Inspection of Facilities . 31
10 . 9. Right to Audit . 31
10 . 10 . Retention of Experts . 32
11 . ENFORCEMENT PROCEDURES. 32
11 . 1 . Notice and Hearing upon Grantee ' s Default . 33
11 . 2 . Delegation. 33
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11 . 3 . Stop Work Notice. 33
11 . 4 . Authorized Fines, Penalties, and Other Sanctions . 34
12 . CONTINUITY OF CABLE TELEVISION SYSTEM SERVICES. 35
12 . 1 . Continuity of Service. 35
12 . 2 . Operation and Management By Grantor. 35
13 . MISCELLANEOUS PROVISIONS 36
13 . 1 . Assignment, Transfer, Sale, and Change of
Control . 36
13 . 2 . Force Majeure. 37
13 . 3 . Possessory Interest 38
13 . 4 . Indemnification. 38
13 . 5. Receivership and Foreclosure. 39
13 . 6. Conflict of Interest. 39
13 . 7 . Resolution of Disputes . 40
13 . 8 . Waiver by Grantor. 40
13 . 9 . Severability. 40
13 . 10 . Amendments . 40
13 . 11 . Binding Upon Successors. 40
13 . 12 . Counterpart Execution. 40
13. 13 . Applicable Law. 41
14 . DEFINITIONS . 41
15 . AUTHORITY AND EFFECTIVE DATE. 46
15 . 1 . Authority. 46
15 . 2 . Effective Date. 46
EXHIBIT A CHAPTER 13. 12 OF TITLE 13 OF THE RANCHO PALOS VERDES
MUNICIPAL CODE AS ADOPTED AND IN EFFECT ON THE
EFFECTIVE DATE OF FRANCHISE RENEWAL A-1
EXHIBIT B OWNERSHIP B-1
EXHIBIT C GRANTEE ' S TECHNOLOGY IMPLEMENTATION PLAN C-1
EXHIBIT D CONSUMER PROTECTION STANDARDS D-1
EXHIBIT E SUPPORT OF LOCAL CABLE USAGE E-1
R6876\0001\98017.5 10/17/00
FRANCHISE AGREEMENT
THIS FRANCHISE AGREEMENT ("Agreement") is entered into
this 17TH day of October, 2000, at Rancho Palos Verdes,
California, by the City of Rancho Palos Verdes, a municipal
corporation of the State of California ("Grantor" ) , and CoxCom,
Inc. , dba Cox Communications Palos Verdes, Inc. , a Delaware
corporation and a wholly-owned subsidiary of Cox Communications,
Inc. , a Delaware corporation ("Grantee") .
RECITALS
A. In accordance with Chapter 13 . 12 of Title 13 of
the Rancho Palos Verdes Municipal Code, California Government
Code Section 53066, and the Cable Communications Policy Act of
1984, as amended (47 United States Code Sections 521 et seq. ) ,
Grantor is authorized to grant or renew a franchise for the
construction, operation, and maintenance of a cable television
system within the City of Rancho Palos Verdes .
B. Grantee currently operates and maintains a cable
television system in the City of Rancho Palos Verdes under the
authority of a franchise previously granted by the Grantor by
Ordinance No. 196, which was adopted on December 3, 1985, and
later amended by Ordinance No. 238, as adopted on December 20,
1988 . That franchise was later transferred to Grantee. Grantee
has requested a renewal of its cable television franchise within
the currently existing franchise service area.
C. In connection with Grantee ' s request for franchise
renewal, Grantee has offered to upgrade its cable television
system by installing fiber optic lines and has offered to provide
improved services to the Grantor and to Grantee ' s customers .
D. Grantor and Grantee have negotiated the terms of
the franchise renewal, which are set forth below, in accordance
with applicable law, and Grantee has agreed to comply with the
provisions of this Agreement and Chapter 13 . 12 of Title 13 of the
Rancho Palos Verdes Municipal Code ("Chapter 13 . 12") , as it now
exists and as it may be amended in the future. A copy of Chapter
13 . 12 is attached as Exhibit A and incorporated by this
reference.
E. The Grantor' s City Council has reviewed the
present and future cable-related needs of the Grantor and its
residents, the Grantee ' s record of service and its ability to
carry out its obligations under this Agreement, and the Grantee ' s
financial, legal, and technical qualifications to hold a cable
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television franchise, and has determined that the public interest
would be served by renewing Grantee ' s franchise subject to the
terms and conditions of this Agreement and the provisions of
Chapter 13 . 12 .
NOW, THEREFORE, in accordance with the provisions of
Chapter 13 . 12 and this Agreement, Grantor grants to the Grantee,
and Grantee accepts from the Grantor, a renewal of a cable
television franchise.
1 . RENEWAL OF FRANCHISE.
1 . 1 . Parties to the Agreement . The parties to this
Agreement are:
(a) Grantor: The City of Rancho Palos Verdes, a
municipal corporation, having its principal office at 30940
Hawthorne Boulevard, Rancho Palos Verdes, California 90274 .
(b) Grantee: CoxCom, Inc. , which is a Delaware
corporation and a wholly-owned subsidiary of Cox Communications,
Inc. , with ownership as set forth in the attached Exhibit B that
is incorporated by this reference, and having a local office at
43 Peninsula Center, Rolling Hills Estates, California 90274 .
1 . 2 . Representatives of the Parties and Service of Notices .
The representatives of the parties who are primarily
responsible for the administration of this Agreement, and to whom
notices, requests, demands, and other communications must be
given, are as follows :
(a) The principal representative of the Grantor is :
City Manager
Rancho Palos Verdes City Hall
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90274
(b) The principal representative of the Grantee is :
General Manager
CoxCom, Inc.
43 Peninsula Center
Rolling Hills Estates, California 90274
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(c) Notices, requests, demands, and other
communications to be given by either party must be in writing and
may be effected by personal delivery, by overnight courier, by
first class mail, or by certified mail, return receipt requested.
(d) If the name of the principal representative
designated to receive the notices, requests, demands, and other
communications, or the address of that person, is changed,
written notice must be given at least five working days before
the effective date of that change.
1 . 3 . Definitions. Unless otherwise defined, or if the use
or context clearly requires a different definition, certain
words, terms, and phrases and their derivations, as used in this
Agreement, have the meanings set forth below in Section 14 .
1 . 4 . Conflicts . In the event of any conflict or
inconsistency between the provisions of this Agreement and the
provisions of Chapter 13 . 12, the provisions of this Agreement
will control .
1 . 5 . Grant .
(a) The renewal authorized by this Agreement relates
to the cable television franchise previously granted by the
Grantor to Times Mirror Cable Television of Palos Verdes
Peninsula, Inc. by Ordinance No. 196, which was adopted on
December 3, 1985 . The name of the franchised cable operator was
later changed to "Dimension Cable Services . " Dimension Cable
Services conducted business as a wholly owned subsidiary of Times
Mirror Cable Television, Inc. , which in turn was a wholly owned
subsidiary of the Times Mirror Company. On October 18, 1994, the
Grantor approved the transfer of control of the cable television
franchise from Times Mirror to Cox Communications Palos Verdes,
Inc. , a subsidiary of Cox Cable Communications, Inc. In mid-
1997, the parent company, Cox Communications, Inc. , merged the
franchisee, and all other subsidiaries then operating cable
television systems in Southern California, into a new corporation
known as CoxCom, Inc. , a Delaware corporation. CoxCom, Inc. , a
wholly owned subsidiary of Cox Communications, Inc. , is the
current franchisee and has requested a renewal of the cable
television franchise.
(b) This renewal extends the franchise, authority,
right, and privilege to construct, reconstruct, operate, and
maintain a cable television system in the "franchise service
area, " which is here defined as the territorial limits of the
City of Rancho Palos Verdes as they exist on the effective date
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of this Agreement, and any additional territory that may be
annexed during the term of this Agreement .
1 . 6 . Right of Grantor to Issue and Renew Franchise.
Grantee expressly acknowledges the right and authority of Grantor
to issue and renew the franchise. Similarly, Grantee
acknowledges its obligation to pay the annual franchise fee
specified in Subsection 2 . 2 (a) , which is the maximum percentage
amount authorized by the Cable Communications Policy Act of 1984
("Cable Act") on the effective date of this Agreement. If
Congress, the FCC, or a court of competent jurisdiction alters
this franchise fee requirement in a manner that materially
changes the benefits or obligations of either party, then the
parties agree to comply with applicable law.
1 . 7 . Effective Date of Renewal. This franchise renewal
will commence on the effective date of the ordinance or
resolution authorizing that renewal, or on the date specified in
that ordinance or resolution as the effective date of renewal .
On or prior to its effective date, Grantee must file with the
City Clerk a written acceptance of the ordinance or resolution
renewing the franchise. That acceptance may be in the form of
Grantee ' s signature on the face of the ordinance or resolution.
On or prior to its effective date, Grantee must also file with
the City Clerk any required performance bonds and insurance
policies or insurance certificates; provided, however, that if
the filing of these documents does not occur on or prior to the
effective date of the ordinance or resolution, or within any
authorized extension of that date, the Grantor may declare this
franchise renewal null and void.
1 . 8 . Duration. The initial term of the franchise renewal
is 10 years from the effective date as specified in Section 1 . 7;
provided, however, that the initial 10-year term of this
franchise will be extended for an additional term of not to
exceed five years under the following circumstances :
(a) Grantor and Grantee will review the performance
of the cable television system following the sixth anniversary
date of this Agreement, as provided for in Subsection 8 . 1 (b) .
(b) Following Grantor' s review of the performance
factors specified in subsections (1) through (7) of Subsection
8 . 1 (b) , if Grantor reasonably determines that Grantee is in
compliance with the performance standards specified in this
Agreement, then Grantor, acting by and through its governing
body, will place on the governing body' s agenda, for
consideration and action, a motion, resolution, or ordinance that
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extends the term of this Agreement for an additional period not
to exceed five years beyond the initial 10-year term.
1 . 9 . Franchise Not Exclusive.
The cable television franchise granted by this
Agreement may not be construed to limit in any manner the right
of Grantor, through its authorized officers and in accordance
with applicable law, to grant to other individuals or entities,
by franchise, permit, license, or otherwise, any rights,
privileges or authority similar to or different from the rights,
privileges and authority herein set forth, in the same or other
streets, public ways, public places, or other property that the
Grantee is entitled to occupy; provided, however, that those
additional grants will not operate to revoke, terminate, or
materially and adversely affect any rights granted to Grantee by
this Agreement. If the Grantee determines that the cumulative
benefits and burdens of an additional franchise awarded to
another cable operator are not comparable to those existing under
this Agreement, and the Grantee is thereby placed at a
competitive disadvantage, then Grantee may request the Grantor to
modify one or more provisions of this Agreement in order to
eliminate that competitive disadvantage. The parties will meet
and confer for the purpose of reviewing Grantee ' s request . Any
proposed modifications will be subject to the approval of the
Grantor ' s City Council.
1 . 10 . Scope of the Franchise.
(a) Subject to Grantee ' s compliance with Grantor' s
permit procedures applicable to construction, encroachments, and
pole attachments, Grantee is authorized and obligated to
construct, reconstruct, operate, and maintain the cable
television system within the public streets and rights-of-way.
Grantee is obligated to undertake and to complete the upgrade of
the cable television system in the manner and within the time
period specified in the attached Exhibit C that is incorporated
by this reference.
(b) The authority granted under this Agreement
includes the privilege to use the Grantee ' s cable television
system in the franchise service area for the provision of both
cable television service and for the provision of such other
services as may be authorized by applicable law.
(c) Grantor reserves all rights it now has or
subsequently acquires with respect to the future authorization
and regulation of non-cable services, including, but not limited
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to, the right to impose reasonable terms and conditions in
addition to or different from those set forth in this Agreement
with respect to the provision of any non-cable services, and to
charge a franchise fee or other form of consideration or
compensation in excess of that specified herein; provided that
such terms and conditions and such franchise fee or other form of
consideration or compensation must not be in conflict with
federal and state law applicable to non-cable services; and
provided further that the Grantor and Grantee will negotiate in
good faith as to those terms and conditions and that franchise
fee or other form of consideration or compensation prior to their
implementation by the Grantor.
(d) Grantor reserves all rights that it may have to
impose conditions regarding access by third parties to Grantee ' s
cable system for the delivery of Internet access service, and the
Grantor' s approval of this Agreement will not be deemed to be a
waiver of any rights that it may now or later possess to impose
such conditions at a future date, whether in connection with a
proposed amendment, a proposed assignment, a proposed transfer of
control, or a proposed renewal . Similarly, Grantee does not
waive any rights it may have with respect to the imposition of
such a condition. Prior to the enactment or enforcement of any
such requirement, the Grantee will be provided with reasonable
notice, an opportunity to be heard, and an opportunity to present
evidence on any findings made or required to be made with respect
to such a requirement .
(e) At least 30 days before commencing to offer or
distribute any non-cable services, Grantee must provide written
notice to the Grantor of its intent to offer or distribute such
services and a description of those services .
(f) After the effective date of this Agreement, if
Grantor proposes to award an additional franchise within the
Grantee ' s franchise service area, a noticed public hearing will
first be held if required under the provisions of Government Code
Section 53066. 3 .
(g) Grantor and Grantee expressly reserve the right
to seek a judicial determination as to whether any particular
service offered by Grantee on its system constitutes cable
service for purposes of this franchise.
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2 . GENERAL REQUIREMENTS.
2 . 1 . Governing Requirements. Grantee must comply with all
provisions of this Agreement, the provisions of Chapter 13 . 12,
and all other applicable laws, ordinances, and regulations .
2 . 2 . Franchise Fee.
(a) As compensation for the franchise granted by
Grantor, and in consideration for authorization to use the
streets and public ways of Grantor for the construction,
reconstruction, operation, and maintenance of Grantee ' s cable
television system, the Grantee will pay to the Grantor an annual
franchise fee of five percent (5%) of the Annual Gross Receipts,
as defined in Section 14 of this Agreement, received by Grantee
from the operation of the cable television system in the
Grantee ' s franchise service area.
(b) The franchise fee specified above in
paragraph (a) must be computed and paid by Grantee to Grantor ' s
Finance Department for each calendar quarter, not later than
30 days after the end of each calendar quarter. The payment for
each calendar quarter must be accompanied by a report that
contains the following information relating to that calendar
quarter:
1 . The total gross receipts collected by
Grantee, and an itemization of the various categories of revenues
collected monthly during that calendar quarter.
2 . The total number of subscribers to each tier
of service that is offered in the franchise service area.
3 . The total number of subscribers in the
regional cluster that includes the Grantee ' s franchise service
area, and such related information concerning those subscribers
as may be required by Grantor to verify and validate Grantee ' s
calculations as to the proration of revenues, such as those
derived from advertising sales and home shopping commissions,
among Grantor and other local franchising authorities that
constitute the regional cluster.
4 . The methodology used by Grantee in
determining any proration of revenues, such as those derived from
advertising sales and home shopping commissions, among Grantor
and other local franchising authorities that constitute the
regional cluster.
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(c) If any franchise fee payment, or recomputed
amount, is not made on or before the dates specified in
Subsections 2 . 2 or 2 . 3, Grantee must pay to Grantor as additional
compensation an interest charge, computed from the applicable due
date, at an annual rate of 10 percent .
(d) In addition to any late payment made in
accordance with paragraph (c) above, if a payment is overdue by
45 days or more, Grantor may treat that delay as a material
breach of this Agreement .
(e) Any itemization or pass-through of franchise fees
by Grantee on subscribers ' bills must be in compliance with
federal and state law. Any surcharge billed to Grantee ' s
subscribers that is not required by the Grantor or by any other
governmental agency to be imposed upon subscribers must be
identified as a surcharge levied solely by the Grantee. Any such
surcharge will be subject to the Grantor' s franchise fee unless
prohibited by federal law.
2 . 3 . Payment to Grantor.
(a) No acceptance of any payment by Grantor may be
construed as an accord that the amount is in fact the correct
amount, nor may acceptance of payment be construed as a release
of any claim the Grantor may have against Grantee for any
additional sums payable under the provisions of this Agreement.
(b) All amounts paid are subject to independent audit
and recomputation by Grantor, as provided for in Subsection 10 . 9.
2 . 4 . Insurance Requirements .
(a) Upon the effective date of this Agreement,
Grantee, at its sole cost and expense, must obtain, and
thereafter maintain for the full term of this Agreement, all of
the following insurance coverages :
1 . Types of Insurance and Minimum Limits . The
coverages required below may be satisfied by any combination of
primary liability and excess liability policies .
A. Workers ' Compensation and Employer ' s
Liability Insurance in conformance with the laws of the State of
California.
B. Grantee ' s vehicles, including owned,
leased, or hired vehicles that are used by Grantee ' s employees in
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the course and scope of employment, must each be covered with
Automobile Liability Insurance in the minimum amount of
$2, 000, 000 combined single limit per accident for bodily injury
and property damage.
C. Grantee must obtain and maintain
Comprehensive or Commercial General Liability Insurance coverage
in the aggregate annual amount of $2, 000, 000 combined single
limit, including bodily injury, personal injury, and broad form
property damage. This insurance coverage must include, without
limitation, contractual liability coverage adequate to meet the
Grantee ' s indemnification obligations under this Agreement.
2 . All required Automobile Liability Insurance
and Comprehensive or Commercial General Liability Insurance
policies must contain the following endorsement :
"The City of Rancho Palos Verdes is added as an
additional insured as respects the operations of
the named insured under the cable television
franchise granted by the City. "
3 . The insurance required of Grantee under this
franchise is primary, and no insurance held by Grantor may be
called upon to contribute to a loss under this coverage.
4 . All insurance policies must provide that, in
the event of material change, reduction, cancellation, or non-
renewal by the insurance carrier for any reason, not less than
30 days ' written notice will be given to Grantor by registered
mail of such intent to cancel, materially change, reduce, or not
renew the coverage. An authorized agent of the insurance carrier
must provide to the Grantor, on such schedule as is requested by
the Grantor, a certification that all insurance premiums have
been paid and all coverages are in force. If for any reason
Grantee fails to obtain or keep any of the insurance in force,
Grantor may (but is not required to) obtain that insurance. In
that event, Grantee must promptly reimburse Grantor its premium
costs, plus one and one-half percent (1-1/2%) monthly interest
thereon until paid.
5 . All insurance must be obtained from
companies that are licensed to transact business in California
and that have a rating of A-VII or better in Best ' s Insurance
Guide.
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6. The deductibles or self-insured retentions
are subject to the Grantor' s prior approval, which approval will
not be unreasonably withheld.
(b) Before the effective date of this Agreement,
Grantee must provide to Grantor written insurance binders,
statements of property coverage, certificates of insurance, or
certified copies of policies evidencing the required coverage.
(c) Grantor reserves the right to require Grantee to
increase the amount or limits of insurance coverage specified
above no more often than every three years during the term of the
franchise. Any such increase will be determined in accordance
with the procedures set forth in Subsection 2 . 6 of this
Agreement.
2 . 5 . Performance Bonds .
(a) Performance Bond. During the term of this
Agreement, Grantee may be required to provide to Grantor a
performance bond if Grantor determines that any construction,
reconstruction, or upgrade of the cable television system is of
sufficient magnitude to warrant a performance bond. The
performance bond, which may be a corporate surety bond, must be
in a principal sum as specified by Grantor and in a form approved
by Grantor' s City Attorney; provided, however, that the principal
sum of the performance bond may not exceed $100, 000 . The
performance bond may be reduced during the course of Grantee ' s
construction, reconstruction, or upgrade of the cable television
system, provided that Grantee is not then in material default
under any provision of this Agreement .
(b) Performance Bond for Other Obligations . Prior to
the effective date of this Agreement, Grantee must provide to
Grantor a performance bond to guarantee the Grantee ' s performance
of its obligations under this Agreement, excluding those
obligations relating to construction referenced above in
paragraph (a) . The performance bond will be in the sum of not
less than $50, 000 and will be subject to and in compliance with
the following requirements :
1 . The performance bond will be available to
Grantor to secure and to satisfy any and all claims, penalties,
fines, liens, fees, payments, costs, damages, or taxes due
Grantor from Grantee that arise by reason of the operation or
maintenance of the cable television system.
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2 . After notice and hearing requirements
specified in Section 11 of this Agreement have been satisfied, if
the Grantee fails or refuses to pay to the Grantor any amounts
due under the terms and provisions of this Agreement, the Grantor
may thereafter claim against the performance bond the unpaid
amount, plus accrued interest and penalties .
3 . Within 30 days after Grantee ' s receipt of
written notice from the Grantor that any amount has been claimed
and received by the Grantor under the performance bond in
satisfaction of any of Grantee' s obligations specified above in
subsection (1) , the Grantee must restore the performance bond to
the amount required by this Agreement.
4 . The rights reserved to the Grantor with
respect to this performance bond are in addition to all other
rights of the Grantor under this Agreement, including Grantor' s
rights under the performance bond for construction referenced
above in paragraph (a) .
(c) Adjustments . Grantor reserves the right to
require Grantee to increase the principal amount of the
performance bond specified above in paragraph (b) , and the
insurance coverage specified above in Section 2 . 4, no more often
than every three years during the term of the franchise. Any
such increase will be determined in accordance with the
procedures set forth in Section 2 . 6.
2 . 6. Periodic Adjustments. If the amount of the
performance bond or insurance coverage required of Grantee under
this Agreement is proposed to be increased at specified intervals
during the term of the franchise, any such increase will be
determined in accordance with the following procedures :
The increase in any amount subject to periodic
adjustment under this Agreement will be determined by
Grantor' s Director of Finance as of the applicable
anniversary date of this Agreement, based upon the
Consumer Price Index, All Urban Consumers, for the Los
Angeles-Anaheim-Riverside Area ("CPI") , as published by
the United States Department of Labor, Bureau of Labor
Statistics, or its successor. The Director of Finance
will compute the percentage difference between the CPI
as it existed on the effective date of this Agreement
and the CPI as it exists on the applicable anniversary
date. The Director of Finance will then increase by
such percentage the amount subject to periodic
adjustment. The adjusted amount will be rounded off to
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the nearest dollar. If the Bureau of Labor Statistics
revises that index or discontinues the preparation of
that index, the Director of Finance must use the
revised index or a comparable system as approved by the
Grantor' s City Council for determining fluctuations in
the cost of living; provided, however, that Grantee
will be given reasonable notice and an opportunity to
be heard prior to the City Council ' s approval of a
revised index or a comparable system.
3 . RIGHTS RESERVED TO THE GRANTOR.
3 . 1 . Reservation. Grantor reserves every right it may have
in relation to its power of eminent domain over Grantee ' s
franchise and property.
3 . 2 . Delegation of Powers . Any right or power in, or duty
retained by or imposed upon Grantor, or any officer, employee,
department, commission, or board of Grantor, may be delegated by
Grantor to any officer, employee, department or board of Grantor,
or to such other person or entity as Grantor may designate to act
on its behalf.
3 . 3 . Right to Inspect Construction. The Grantor has the
right to inspect all construction, installation, or other work
performed by Grantee in connection with the franchise, and to
make such tests as may be necessary to ensure compliance with the
terms of this Agreement, so long as that inspection and testing
does not unreasonably interfere with Grantee ' s operations .
3 . 4 . Right to Require Removal of Property. Consistent with
applicable law, at the expiration of the term for which the
franchise renewal is granted, or upon its lawful revocation,
expiration, or termination, the Grantor has the right to require
the Grantee to remove, within a reasonable period of time that
will not be less than 180 days, and at Grantee' s expense, all
portions of its system and any other property from all streets
and public rights-of-way within the franchise service area.
3 . 5 . Right of Intervention. Grantor has the right to
intervene in any suit, proceeding, or other judicial or
administrative proceeding in which the Grantor has any material
interest, and to which the Grantee is made a party.
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4 . SYSTEM UPGRADE AND SPECIAL SERVICES .
4 . 1 . Upgrade. The upgrade of the cable television system
to be undertaken and completed by the Grantee is more fully
described in Exhibit C.
4 . 2 . Notices Relating to Cable Television System Upgrades .
(a) Notices to Local Newspaper. If requested by
Grantor, Grantee must publish two notices in a newspaper of
general circulation before commencing the cable television system
upgrade. The first notice must be published not less than
60 days prior to construction, and the second notice must be
published not less than 30 days prior to construction. Each
notice must provide a general summary of the proposed upgrade,
and a telephone number that the public may call for additional
information.
(b) Other Notices .
1 . Grantee will provide to Grantor at least
30 days prior written notice of any major upgrade or rebuild of
the cable television system. Upon Grantor' s request, Grantee
will provide information concerning the proposed locations and
types of equipment or facilities to be installed, such as
amplifiers, pedestals, and power supplies .
2 . At least 48 hours prior to the scheduled
construction date, Grantee must provide additional notice to
residents within the proposed construction area by the use of
door hangers that set forth a general description of the
construction project, the anticipated dates of construction, and
a telephone number for the Grantee that a resident may call with
any questions or concerns .
4 . 3 . Outlets for Public Buildings .
(a) Upon Grantor' s written request, Grantee will
install, maintain, and repair, without charge, one cable drop,
one cable modem for high-speed Internet access, and basic cable
service at each of the following facilities that is located
within the franchise service area:
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Civic Center
30940 Hawthorne Blvd.
Point Vicente Interpretive Center
31501 Palos Verdes Drive South
(To be deferred until after construction of this
facility again commences . )
Fred Hesse Jr. Community Park
29301 Hawthorne Blvd.
Robert E. Ryan Park
30359 Hawthorne Blvd.
(The need for this connection shall be reassessed
during the second performance audit as described
in Section 8 . 1 of this Agreement. )
Ladera Linda Community Center
32201 Forrestal Drive
(b) Grantee will provide, without charge, basic cable
service to one outlet at each public school that is located
within the franchise service area.
(c) Upon Grantor' s written request, Grantee will also
install, at Grantee ' s cost for labor and materials, additional
drops and outlets at specified public facilities and public
school buildings .
(d) All new drops and outlets requested by Grantor
under this Section 4 . 3 must be installed as Grantee ' s cable
system upgrade passes each public facility and public school
building, which upgrade must occur within the period of time set
forth in Exhibit C.
(e) Grantor will inform Grantee of the construction
of new public facilities so that exterior and interior
connections can be installed by Grantee at the time of
construction in order to minimize costs . These connections will
be made by Grantee without cost to Grantor.
4 . 4 . Emergency Alert Capability.
(a) In upgrading the cable television system, Grantee
must comply with all FCC rules and regulations relating to the
national Emergency Alert System ("EAS") . In this regard, Grantee
must provide the system with emergency override capability so as
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to enable Grantor' s public safety personnel and designated public
officials to cablecast emergency messages by interrupting and
overriding the audio and video signals of all cable channels
using remote coded access activation devices at one site to be
mutually agreed upon by the parties . Equipment providing for
this emergency override capability will be installed by Grantee
at this site, at no expense to Grantor.
(b) In the event of any conflict between the
federally mandated EAS and the City' s emergency override system,
the federally mandated EAS will have priority.
4 . 5 . Parental Control Devices .
(a) Upon request during any initial installation of
service, and without change to the subscriber, Grantee must
provide to a subscriber a "trap, " "lockbox, " digital code, or
similar parental control device that enables a subscriber to
block the reception of video and audio signals from selected
channels on the cable television system, including any premium or
pay-per-view channel that is scrambled.
(b) No continuing charge for the use of a parental
control device may be imposed by Grantee if that device is
incorporated into equipment, such as a decoder, for which a
subscriber is already paying a charge.
(c) Grantee must provide to subscribers written
instructions on the methods by which selected channels on the
cable television system may be restricted or blocked.
4 . 6. Technical Standards .
(a) The FCC Rules and Regulations, including Part 76,
Subpart K (Technical Standards) , and any amendments or
supplements thereto, will apply to the Grantee ' s operations to
the extent permitted by applicable law.
(b) The headend of the cable system, satellite earth
stations, and any hubs must be equipped with an emergency power
system that is capable of providing emergency power for a minimum
of three hours .
(c) The cable system must be designed, installed, and
operated so as to comply with the following general requirements :
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1 . Twenty-four-hour daily operation.
2 . Avoid causing interference with the
reception of off-the-air signals by non-subscribers .
3 . Operate in a wide range of outdoor
temperatures that typically occur within the franchise service
area.
4 . Assure that all subscribers will receive
standard color and monochrome signals on the FCC-designated
Class 1 channels without noticeable picture degradation or
visible evidence of color distortion, or other forms of
interference that may be attributable to deficiencies in the
cable system.
4 . 7 . No Offset Against Franchise Fees . In accepting this
franchise, Grantee acknowledges that the commitments specified in
this Section 4 are voluntarily assumed, and their costs will not
be offset against any franchise fees payable by Grantee to
Grantor during the term of the franchise.
5 . SERVICES, PROGRAMMING, AND CONSUMER PROTECTION STANDARDS.
5 . 1 . Rates and Charges for Cable Services and Equipment.
(a) The Grantor may regulate Grantee ' s rates and
charges for cable television services and equipment in the manner
and to the extent authorized by federal law.
(b) Grantee must establish and bill its rates and
charges for cable television services and equipment in a manner
consistent with all applicable laws and regulations .
(c) Grantee must at all times have on file with
Grantor its current schedule of all rates and charges that will
be billed to subscribers in the franchise service area.
(d) All increases in Grantee ' s schedule of rates and
charges for cable television services and equipment must be made
in compliance with all applicable federal and state laws and
regulations . Not less than 10 days prior to notifying its
subscribers, Grantee must notify the Grantor' s City Manager of
any proposed increase in its schedule of rates and charges or any
changes in its programming tiers . Grantee must provide written
notice to its subscribers at least 30 days prior to any change in
its schedule of rates and charges or any changes in its
programming tiers .
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(e) Within 45 days after the effective date of this
Agreement, Grantee must submit to the Grantor' s City Manager a
complete list of each cable television programming package
offered by Grantee, including the expanded basic tier and any new
or reconfigured tiers . Grantee must compare that list with the
most current preceding list, and identify all programming that
has been added or deleted, previous and existing rates and
charges for cable television services and equipment, and all new
services or items of equipment that are being offered and the
applicable rates and charges .
5 . 2 . Discounts for Senior Citizens. Grantee may offer to
senior citizens a percentage discount on subscriptions to the
basic service tier.
5 . 3 . Leased Channel Service. If Grantee offers leased
channel service, that service must be offered at
nondiscriminatory rates, on reasonable terms and conditions, and
in accordance with applicable law.
5 . 4 . Nondiscrimination. Grantee may not discriminate
between or among subscribers within one type or class in the
availability of services, at either standard or differential
rates set forth in published rate schedules, except as otherwise
authorized by law or by this Agreement. No charges may be made
for services except as set forth in published schedules that are
available for inspection at Grantee ' s office, quoted by Grantee
on the telephone, or displayed or communicated to existing or
prospective subscribers. This paragraph does not apply to offers
or promotions of limited duration.
5 . 5 . Billings to Subscribers .
Grantee ' s billings to its subscribers within the
franchise service area will be in compliance with the
requirements set forth in Exhibit D ("Consumer Protection
Standards") .
5. 6. Termination of Residential Service.
(a) Grantee may terminate service to a residential
subscriber only in compliance with the applicable provisions of
California Government Code Section 53088 . 2 . In addition to the
required written notice, Grantee must make a good faith attempt
to notify the affected residential subscriber by telephone of its
intent to terminate service. If Grantee improperly terminates
service to a residential subscriber, free reconnection must be
provided to that subscriber.
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III III
(b) Grantee must issue security or subscriber deposit
refund checks promptly, but no later than 45 days following the
termination of service, less any deductions permitted by law.
5 . 7 . Annual Subscriber Notice. Grantee will provide to all
new subscribers and annually to existing subscribers, a notice to
customers that is substantially similar to the notice referenced
in paragraph (1) of Exhibit D.
5 . 8 . Consumer Protection Standards . Grantee must comply
with all applicable FCC and state statutory standards and
regulations relating to consumer protection, including those
referenced in Exhibit D.
5. 9. Service Interruptions . Grantee must provide to its
subscribers a minimum of 24 hours advance notice when cable
service to six or more subscribers will be subject to a planned
interruption of more than two hours . This notice may be given by
means of character-generated messages on both the governmental
access channel and, with the concurrence of the operator, on the
public access channel. Notice must also be given, by telephone
or by facsimile, to all operators of public, educational, and
governmental access channels, and to the Grantor' s City Manager.
Whenever possible, planned interruptions should occur during
periods of minimum use of the cable system, preferably between
midnight and 6: 00 a.m.
5 . 10 . Entry on Private Property. Whenever possible, Grantee
will provide verbal and written notice to affected property
owners a minimum of 48 hours before entering upon their property
and before undertaking construction work in public rights-of-way
adjacent to their property. The notice must include Grantee ' s
telephone number that property owners may call with regard to any
matters related to the proposed entry or the proposed
construction.
5 . 11 . Privacy Rights of Subscribers. Grantee must at all
times protect the privacy of all subscribers in accordance with
the provisions of the Cable Act, including 47 U. S.C. ' 551 .
6. SUPPORT OF LOCAL CABLE USAGE.
The obligations of the Grantee that relate to the
support of local cable usage, including the provision of adequate
channel capacity for local origination, educational, and
governmental access programming, facilities, and financial
support, are set forth in the attached Exhibit E.
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7 . DESIGN AND CONSTRUCTION.
7 . 1 . System Construction and Extension.
(a) The cable television system must be upgraded in
accordance with Exhibit C and all other applicable provisions of
this Agreement.
(b) Throughout the franchise service area, Grantee is
required to extend its cable television system in accordance with
the following provisions:
1 . Grantee must make its cable television
system available to residential dwelling units in all currently
unserved or developing areas that have at least 30 dwelling units
per cable mile in areas passed by overhead cable, and at least
50 dwelling units per cable mile in areas passed by underground
cable. Subject to the foregoing density standards, Grantee must
extend the cable television system simultaneously with the
installation of utility lines . Where residential dwelling units
are located in unserved or developing areas that do not meet
these standards for mandatory extension of service, Grantee must
provide, upon the written request of a prospective subscriber
desiring service, an estimate of the costs of extending service.
Grantee may require an advance payment of those costs or an
assurance of payment satisfactory to Grantee. The amount paid by
the prospective subscriber is nonrefundable. If the unserved or
developing area later achieves the density required for mandatory
extensions of service, the amounts paid will be deemed to be
consideration for early extension.
2 . Grantee must extend and make its cable
television system available to any resident requesting
connection, at the standard connection charge, if that connection
requires no more than a standard 125-foot aerial drop line from
the main feeder line. If a connection requires more than a
standard 125-foot aerial drop line, or an underground service
connection, a resident must be given the option of paying the
incremental cost for that installation.
3. Grantee may extend and make cable television
services available to isolated residential dwelling units, and to
commercial and industrial zones of the franchise service area,
based upon demonstrated need of the prospective subscriber and
the economic feasibility of that extension.
4 . Service to prospective subscribers residing
in multiple-dwelling units need only be provided if, after
evaluating the terms and conditions for access that may be
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imposed by an owner or manager of such multiple-dwelling units,
the Grantee determines that those terms and conditions are
reasonably acceptable.
7 . 2 . Construction Components and Techniques . Construction
components and techniques must comply with the terms of this
Agreement and all applicable statutes, ordinances, regulations,
and pole attachment agreements .
7 . 3 . Technical and Performance Standards . Grantee must
construct, reconstruct, install, operate, and maintain its system
in a manner consistent with all applicable federal, state, and
local laws and ordinances, construction standards, construction
specifications, FCC technical standards, and any additional
standards set forth in this Agreement. Without limiting the
foregoing, Grantee ' s system must comply with all FCC regulations
that apply to compatibility as between cable service and consumer
equipment for receiving and recording cable programming.
7 . 4 . Construction Codes . The Grantee must strictly adhere
to all building and zoning codes now or hereafter in force and
must obtain all necessary permits, which permits will not be
unreasonably denied. The Grantee will make every reasonable
effort to arrange its lines, cables, and other appurtenances, on
both public and private property, in such a manner as to cause no
unreasonable interference with the use of that property by any
person. In the event of such interference, the Grantor may
require the removal or relocation of the Grantee ' s lines, cables,
and appurtenances from the property in question. Grantee must
give at least 48 hours advance notice to all property owners, and
to the Grantor, prior to installing any aboveground or
underground structures upon easements located on private
property. Grantor will not modify its construction requirements
subsequent to the completion of construction so as to require
reconstruction or retrofit unless the public health and safety so
requires .
7 . 5 . Construction Default . Upon the failure, refusal or
neglect of Grantee to undertake or complete any construction,
reconstruction, repair, relocation or other necessary work as
required by this Agreement, thereby creating an adverse impact
upon the public health, welfare or safety, Grantor may (but is
not required to) cause that work to be completed, in whole or in
part, and upon so doing will submit to Grantee an itemized
statement of costs . Grantee will be given reasonable advance
notice of Grantor' s intent to exercise this power, and 15 days to
cure the default. Grantee must, within 30 days of billing, pay
to Grantor the actual costs incurred.
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7 . 6. Vacation or Abandonment. If any street, alley, public
highway, or portion thereof used by the Grantee is vacated by the
Grantor, or its use is discontinued by the Grantee, then upon
reasonable notice the Grantee may be required to remove its
facilities, unless otherwise specifically authorized, or unless
easements for cable television facilities have previously been
reserved. Following that removal, Grantee must restore, repair,
or reconstruct the area where that removal has occurred to the
condition that existed prior to removal. Upon any failure,
neglect, or refusal of the Grantee, after 30 days ' notice by the
Grantor, to do such work, Grantor may cause it to be done, and
within 30 days of billing, Grantee must pay to Grantor the actual
costs incurred.
7 . 7 . Abandonment in Place. Grantor may, upon written
application by Grantee, approve the abandonment in place by
Grantee of any underground property or structure, under such
terms and conditions as Grantor may approve. Upon
Grantor-approved abandonment in place of any underground property
or structure, Grantee must cause to be executed, acknowledged,
and delivered to Grantor such instruments as Grantor may
prescribe and approve in order to transfer and convey ownership
of that property or structure to Grantor.
7 . 8 . Removal of System Facilities . If Grantee ' s plant is
intentionally deactivated for a continuous period of 30 days,
(except for reasons beyond Grantee ' s control) and without prior
written notice to and approval by Grantor, then Grantee must, at
Grantor' s option and demand, and at the sole expense of Grantee,
promptly remove all of Grantee ' s property from any streets or
other public rights-of-way. Grantee must promptly restore the
streets or other public areas from which its property, including
aerial trunk and feeder lines, has been removed to the condition
existing prior to Grantee ' s use thereof.
7 . 9 . Movement of Facilities . If Grantor determines it is
necessary to move or to relocate any of the Grantee ' s property
because of a conflict with a public project, Grantee, upon
reasonable notice, must move, at the expense of Grantee, its
property in order to facilitate that public project. No such
movement or relocation may be deemed a taking of Grantee ' s
property. If the public project involves Grantor' s exercise of
its statutory authority to construct and to operate its own cable
system, the reasonable expenses incurred by Grantee in moving or
relocating its property will be reimbursed by the Grantor.
7 . 10 . Undergrounding of Cable. Cables must be installed
underground at Grantee ' s cost where all existing utilities are
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already underground within the public right-of-way or public
utility easements, or all new utilities are being installed
underground in the area. Previously installed aerial cable will
be installed underground within the public right-of-way or public
utility easements at Grantee ' s sole cost in concert with all
utilities whenever all of those utilities convert from aerial to
underground construction.
7 . 11 . Facility Agreements . This Agreement does not relieve
Grantee of any obligations to obtain pole or conduit space from
any department of Grantor, from any utility company, or from
others maintaining utilities in Grantor' s streets .
7 . 12 . Repair of Streets and Public Ways. All streets and
public ways, and improvements located within those streets and
public ways, that are disturbed or damaged by the Grantee or its
contractors during the construction, reconstruction, operation,
or maintenance of the System, must be restored at Grantee ' s
expense, and within the reasonable time frame and limits
specified by Grantor.
7 . 13 . Erection of Poles Prohibited. Grantee may not erect
any pole on or along any street or public way where there is an
existing aerial utility system. If additional poles in an
existing aerial route are required, Grantee must negotiate with
the appropriate public utility for their installation. Any such
installation requires the advance written approval of the
Grantor. Subject to applicable federal and state law, the
Grantee must negotiate the lease of pole space and facilities
from the existing pole owners for all aerial construction, under
mutually acceptable terms and conditions . No pole line may be
extended solely for the purpose of accommodating Grantee ' s
facilities . Line extensions beyond any existing pole line must
be underground.
7 . 14 . Reservation of Street Rights . Nothing in this
Agreement precludes the Grantor from constructing, repairing, or
altering any public work or improvement. That work will be done,
insofar as practicable, in such manner as not to unnecessarily
obstruct, injure or prevent the use and operation of any property
of Grantee. I f, however, any property of Grantee interferes with
the construction, maintenance, or repair of any public
improvement, that property must be removed or replaced in such
manner as may be reasonably directed by Grantor so as not to
interfere with the public work or improvement, and that removal
or replacement will be at the expense of the Grantee.
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7 . 15 . Miscellaneous Design and Construction Requirements .
(a) New Development-Underground Utility Areas . Where
new construction or property development occurs, and utilities
are to be placed underground, Grantor will use its best efforts
to require the developer or property owner to give reasonable
notice to Grantee of that new construction or development .
Grantee may be involved in all design aspects of the new
construction or development that relate to the infrastructure
required for cable service, including the provision of
specifications and engineering assistance prior to construction.
The costs of easements, trenching, and construction of the
conduits required to bring cable service to the new construction
or development will be borne by the Grantee, the developer, or
the property owner, as may be agreed upon between them. Grantee
will be notified by Grantor or by Grantor' s designee of any date
on which the installation of conduit, pedestals, vaults, or
laterals will be available for Grantee' s inspection. Grantee
will bear all costs of installing cable, amplifiers, and other
equipment required to construct and operate the cable system.
(b) Antennas and Towers. Antenna supporting
structures, including towers, that are owned by or operated for
Grantee must comply with all applicable electrical codes and FCC
specifications, and must be erected, illuminated, painted, and
maintained in accordance with all applicable rules and
regulations of the Federal Aviation Administration, as well as
local ordinances and regulations that require the Grantor' s
approval of the siting of towers or other support structures
within the City.
(c) Tree Trimming. Grantee is authorized to engage a
licensed tree service contractor to trim trees on public
property, at its own expense, as may be necessary to protect its
wires, facilities, and cable equipment, subject to the direction
and supervision of the Grantor. Trimming trees on private
property requires the written consent of the property owner or
occupant, and such owner or occupant must be advised by Grantee
of the right to have the tree trimming undertaken by a licensed
tree service contractor. On a project-by-project basis, Grantee
will provide Grantor with a list of licensed tree service
contractors that the Grantee proposes to use for tree trimming on
both public and private property. Each licensed tree service
contractor proposed to be engaged by Grantee must be in
possession of a valid City business license.
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(d) Installation in Roadways and Rights-of-Way.
Grantee must install in conduit all cable that passes under any
roadway or other public right-of-way.
(e) Mitigation of Adverse Visual Impacts . Grantee
must take all reasonable measures, at its expense, to mitigate
the adverse visual impacts of all aboveground equipment in
accordance with the same standards and regulations that are
imposed by the Grantor upon other franchised cable operators and
upon public utilities . These measures may include, without
limitation, (i) the installation of landscaping and barriers to
conceal the equipment from public view; (ii) the maintenance of
the equipment in good condition, including compliance with
Grantor' s ordinances requiring graffiti removal; and (iii) the
placement of overhead drops as close as possible to other utility
drops, consistent with all applicable electrical codes . Ongoing
maintenance of any landscaping required to mitigate visual
impacts is the responsibility of the property owner or the
Grantee under Grantee ' s easement agreements .
(f) Use of Chalk-Based Paints . Grantee must use only
chalk-based paints to mark public rights-of-way in connection
with the construction or maintenance of the cable television
system.
(g) Vehicle Access to Private Property. In no event
may an owner' s vehicle access to private property be precluded
for more than three hours during any construction, operation, or
maintenance of the Grantee' s cable system. If such preclusion is
reasonably anticipated, Grantee must give 48-hours prior written
notice to the owner.
(h) Location of Utilities. Grantee must verify the
location of all existing utilities to ensure that they are not
damaged during construction or maintenance of the cable system.
Grantee must be a member of Underground Service Alert and must
contact that entity 48 hours in advance of any underground
construction in order to ensure that utilities are not damaged.
Grantee is solely responsible for the replacement or repair of
any utilities that are damaged during construction or maintenance
activities .
8 . PERFORMANCE AUDITS AND TECHNICAL DATA.
8 . 1 . Performance Audits .
(a) At its option, Grantor may require that
performance audits of the cable television system be conducted
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annually by an independent technical consultant selected and
employed by Grantor, and at Grantor' s expense, to verify that the
system complies with all technical standards and other
specifications of this Agreement . Grantee must be provided an
opportunity to be present during any performance audit, and the
Grantor must deliver a copy of the test results to Grantee. If
the test results demonstrate that Grantee has materially failed
to comply with required technical standards, the cost of the
performance audit will be borne by Grantee.
(b) Within 90 days after the second, fourth, and
sixth anniversary dates of this Agreement, and at any other time
upon Grantor' s request, Grantor and Grantee will meet to review
the performance of the cable television system. This review may
include consideration of the following:
1 . The test results relating to Grantee ' s
compliance with technical standards and specifications .
2 . The reports required by this Agreement that
relate to subscriber complaints received by the Grantee
concerning technical problems or service-related issues .
3. The types and quality of services provided
by Grantee, and the extent to which the Grantee' s 750 MHz
bandwidth is adequate to accommodate those services without
degradation or loss of quality.
4 . The results of any subscriber surveys that
may be conducted by Grantor or Grantee.
5 . Reports submitted by Grantee or any other
person that address Grantee ' s compliance with the terms of this
Agreement granting the franchise.
6. Changes in cable television system
technology and services, including but not limited to an
evaluation of established, operating state-of-the-art technology
in comparable communities within the greater Los Angeles
metropolitan area, and the economic and technical feasibility of
providing interactive, addressable, and security-monitoring
services .
7 . Changes in state and federal laws and
regulations that affect the operation of the cable television
system.
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(c) Within 30 days after the conclusion of a system
performance review meeting, Grantor may issue findings with
respect to system compliance as required under this Agreement .
If noncompliance with required performance standards is
identified, Grantor may direct Grantee to correct the
noncompliance within a reasonable period of time. In addition,
if a determination is made that the services provided by the
Grantee ' s 750 MHz cable system are then consuming at least 700
MHz of bandwidth, and that additional or more advanced services
cannot be provided due to bandwidth limitations, then the parties
will meet and confer concerning the feasibility of an upgrade or
rebuild of the Grantee ' s cable system.
(d) Participation by Grantor and Grantee in this
system performance and compliance review process does not impose
upon Grantee any obligation not imposed by federal or state law,
and neither Grantor nor Grantee waive any rights they may have
under applicable federal or state law.
(e) In addition to the meetings provided for under
paragraph (b) above, and upon Grantor' s reasonable request,
Grantee will meet with Grantor' s representatives to discuss the
extent to which the technology and services of the cable
television system are comparable to established, operating state-
of-the-art technology in cable television systems serving a
majority of comparable communities in the greater Los Angeles
metropolitan area, it being understood by the parties that
Grantor will have and maintain parity with those communities
having the most advanced cable and telecommunications services
that are provided by the Grantee. Topics for discussion at these
meetings may also include, without limitation, the future use of
interactive services, the sharing of local production facilities
with other jurisdictions, and the provisionof new or additional
capacity for educational or governmental access channels .
8 . 2 . System Testing and Technical Data.
(a) During the upgrade of the system and thereafter,
Grantee must conduct periodic performance testing of its cable
television system, including its signal quality, in accordance
with FCC rules and regulations. Upon Grantor' s request, those
test results will be provided to Grantor by Grantee.
(b) During the upgrade of the cable television
system, Grantee will incorporate test equipment wherever feasible
in order to continuously monitor the system for outages and
signal quality.
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(c) Upon Grantor' s request, Grantee will provide "as-
built" system drawings and technical documentation in a printed
or, if readily available, an electronic data format . Grantor may
not disclose this information to third parties without the
Grantee ' s prior written approval .
(d) Grantee must maintain at its local office a file
of all documents that are required by the FCC or other
governmental agencies to be made available for public inspection
during normal business hours and upon reasonable advance notice .
Grantee may charge a reasonable fee for any copies of documents
that may be requested.
8 . 3 . Emergency Repair Capability. It is Grantee ' s
responsibility to ensure that its personnel are qualified to make
repairs, that they are available at all reasonable times, and
that they are supplied with keys, equipment location
instructions, and technical information necessary to begin
repairs upon notification of the need to maintain or restore
service to the system.
9 . REVOCATION, TERMINATION, OR FORFEITURE.
9. 1 . Revocation. Consistent with applicable law, and in
addition to all rights set out elsewhere in this Agreement,
Grantor reserves the right to revoke, terminate, or declare a
forfeiture of the franchise, subject to the procedural guidelines
set forth in Section 11 of this Agreement, if the Grantee,
whether willfully or negligently, violates any material provision
of this Agreement and thereafter fails to correct or remedy that
violation in accordance with the terms of this Agreement.
9 . 2 . Grounds for Revocation, Termination, or Forfeiture.
Where the Grantee ' s violation is determined to involve any of the
following, each of which is deemed to constitute a material
provision of this Agreement, the Grantor may revoke, terminate,
or declare a forfeiture of this franchise and all rights and
privileges associated with it :
(a) Grantee ' s failure to make any payment of
franchise fees within 45 days after that payment is due, as
provided for in Subsections 2 . 2 (b) and (c) , unless Grantee is in
good faith contesting that payment in a court or governmental
agency of competent jurisdiction.
(b) Grantee ' s failure to provide or to maintain the
insurance coverage in the amounts specified in Subsection 2 . 4 .
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(c) Grantee ' s failure to provide or to maintain the
performance bonds specified in Subsection 2 . 5 .
(d) Grantee' s failure to honor its indemnification
obligations as specified in Subsection 13. 4 .
(e) Grantee ' s failure to receive and maintain all
required approvals from the Federal Communications Commission in
connection with its operation of the cable television system.
(f) Grantee ' s material violation of any final order
or ruling of any regulatory body having jurisdiction over the
Grantee relative to the cable television services authorized by
the franchise, unless that order or ruling is being contested by
the Grantee before the regulatory body or in a court of competent
jurisdiction.
(g) Grantee ' s willful attempt to evade compliance
with any provisions of this Agreement or Chapter 13 . 12, or to
practice any fraud or deceit upon the Grantor or upon existing or
prospective subscribers .
(h) Grantee ' s wrongful cessation of cable television
services to its subscribers for reasons within Grantee ' s control;
provided that Grantee will not be determined to be at fault under
any provision of this Agreement in any case where the performance
of that provision is excused or excusable under Section 13 . 2 .
(i) Grantee ' s persistent failure or refusal to remedy
one or more violations, defaults, breaches, or incidents of
noncompliance for which lesser penalties have previously been
imposed, unless Grantee is then contesting the same in good faith
in a court or governmental agency of competent jurisdiction.
(j ) Grantee ' s insolvency, inability to pay its debts,
or adjudication as a bankrupt.
(k) Grantee ' s falsification of information set forth
in any report required to be submitted to Grantor under this
Agreement .
(1) Grantee ' s failure or refusal to complete
construction of the cable system upgrade within the period of
time specified in the attached Exhibit C.
9 . 3 . Removal of Property. Upon any termination,
revocation, or forfeiture of the franchise, Grantee may be
required to remove its structures and property from the Grantor' s
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410 110
streets and to restore those streets to their prior condition
within a reasonable period of time specified by Grantor, but not
less than 180 days . Upon Grantee ' s failure to do so, the Grantor
may perform the work and collect all costs, including direct and
indirect costs, from the Grantee. At Grantor' s discretion, the
cost of that work may be placed as a lien upon all plant,
property, or other assets of the Grantee or a claim may be
asserted against the performance bond referenced in
Subsection 2 . 5 (b) .
10 . RECORDS; REPORTS; RIGHT TO INSPECT AND AUDIT; EXPERTS.
10 . 1 . Grantee to Provide Records. All reports and records
required under this Section 10 must be furnished at the sole
expense of Grantee.
10 . 2 . Records . Grantee must maintain at its local office,
and make available for inspection and copying during normal
business hours, and upon not less than 24-hours notice, a
separate and complete set of the Grantee ' s business records that
are reasonably related to the scope of Grantor' s rights under
this Agreement, or Grantor' s regulatory functions .
10 . 3 . Maintenance and Inspection of Records . Grantee must
maintain accurate books and records, in conformity with generally
accepted accounting principles, showing all receipts, expenses,
loans, payments, investments of capital, and other transactions
relating to the cable television franchise. Grantor, upon
reasonable notice, has the right to inspect those records and to
receive copies to the extent that information is reasonably
related to the scope of the Grantor' s rights under this
Agreement, or Grantor' s regulatory functions . To the extent
authorized by law, Grantor will protect the confidentiality of
information contained in Grantee ' s business records that are
deemed by Grantee to be proprietary.
10 . 4 . Reports of Financial and Operating Activity.
(a) Not later than 90 days after the close of each
fiscal year of Grantee during the term of this Agreement, Grantee
must submit to the Grantor a financial report, certified by a
designated financial officer of Grantee, that sets forth the
annual gross receipts from all sources within the franchise
service area, the annual gross subscriber revenues derived from
each tier of service in the franchise service area, the total
amount and basis for the computation of annual franchise fees
paid to Grantor, and such other relevant facts as may reasonably
be required by Grantor to verify the accuracy of the payment of
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annual franchise fees .
(b) During the term of this Agreement, and upon
Grantor' s request, Grantee must submit reports concerning any or
all of the following operational matters:
1 . A summary of Grantee ' s activities within the
franchise service area including, but not limited to, services
added or discontinued, changes in technology, and the number of
new installations .
2 . A current list of Grantee ' s officers,
directors, and other principals.
3 . A summary of outage records and routine
service-related calls received from subscribers for installation
and service. If Grantee ' s collection and tabulation of
subscribers ' service calls and complaints covers a geographic
area that is more extensive than the franchise service area, then
Grantee must use its best efforts to estimate the number of such
service calls and complaints originating in the franchise service
area and must inform the Grantor of the methodology used in
making those estimates .
4 . A summary of subscriber complaints that were
referred to Grantee by the Grantor, including the subscriber' s
name, date of referral, nature of the complaint, and the
corrective action taken.
5 . A description of the nature and purpose of
any new construction that is anticipated to commence within the
following two years .
6. A summary of Grantee ' s compliance with the
Consumer Protection Standards set forth in Exhibit D.
10 . 5 . Performance Tests and Compliance Reports . Not later
than April 15 of each year, Grantee must provide a written report
of any FCC or other performance tests required or conducted. In
addition, Grantee must provide reports of any tests and
compliance procedures required by this Agreement not later than
30 days after the completion of those tests and compliance
procedures .
10 . 6. Additional Reports . The Grantee must prepare and
submit to the Grantor in writing, at the times and in the form
reasonably prescribed by Grantor, all additional reports that may
reasonably be required with respect to Grantee ' s compliance with
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the provisions of this Agreement .
10 . 7 . Communications with Regulatory Agencies . Copies of
all non-routine and material communications between the Grantee
and the Federal Communications Commission, or any other agency
having jurisdiction in respect to any matters affecting the cable
communications operations authorized by this Agreement, must be
submitted to the Grantor within 10 days after their receipt or
submittal by Grantee.
10 . 8 . Inspection of Facilities . Upon reasonable notice, and
during normal business hours, Grantee must permit inspection, by
any duly authorized representative of Grantor, of all franchise
property and facilities of Grantee situated within the franchise
service area.
10 . 9 . Right to Audit.
(a) In addition to all other inspection rights under
this Agreement, upon 10 days prior written notice, Grantor has
the right to inspect and audit, during normal business hours, all
documents pertaining to the Grantee that are related to the
Grantor' s enforcement of its rights under this Agreement . Those
documents will be made available at the Grantee ' s local office.
All documents pertaining to financial matters that may be the
subject of an audit by the Grantor, as set forth herein, must be
retained by the Grantee for a minimum of three years . Access by
the Grantor to any documents covered by this subsection may not
be denied by the Grantee on grounds that those documents are
alleged to contain proprietary information. To the extent
authorized by law, information derived from any records
identified by Grantee as being proprietary will be held in
confidence by Grantor, except as may be necessary to administer
and enforce the franchise.
(b) Any audit conducted by Grantor under this
subsection will be conducted at the sole expense of Grantor, not
more frequently than once in any 12-month period. Grantor will
prepare a written report containing its findings, a copy of which
will be mailed to the Grantee for its review. Grantee must
reimburse Grantor for the expense of any such audit if, as the
result of that audit, it is determined that there is a shortfall
of more than three percent (3%) in the amount of franchise fees
or other payments that have been made or will be made by Grantee
to Grantor under the terms of this Agreement . Such reimbursement
must be made by Grantee within 20 days of written notice from the
Grantor.
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10 . 10 . Retention of Experts . When deemed to be necessary
for the exercise of its rights under this Agreement, Grantor has
the further right to retain technical experts and other
consultants to ensure compliance with and enforcement of the
provisions of this Agreement . The Grantor will bear the cost of
retaining those experts unless either of the following
circumstances is applicable:
(a) The Grantee has initiated proceedings that would
normally require the Grantor to retain experts or
consultants, such as the filing of a request for approval of
a transfer or a change in control, renewal of the franchise
(to the extent allowed by law) , expansion of the franchise
service area, or the modification or amendment of this
Agreement; or
(b) The reports of those experts or consultants as
submitted to the Grantor reveal that the Grantee has failed
to substantially comply with the terms and conditions of
this Agreement.
If either paragraph (a) or (b) is applicable, Grantor and Grantee
will meet and confer for the purpose of determining whether all
or some portion of the costs incurred by Grantor will be
reimbursed by Grantee.
11 . ENFORCEMENT PROCEDURES.
11 . 1 . Notice and Hearing upon Grantee ' s Default .
(a) Unless otherwise provided in this Agreement,
prior to formal consideration by Grantor of any termination,
revocation, or forfeiture of Grantee ' s franchise, or the .
imposition of any fine, penalty or administrative remedy
available to Grantor, including liquidated damages, attributable
to Grantee ' s failure, whether willful, negligent, or otherwise,
to comply with the terms and conditions of this Agreement,
Grantor must make written demand on Grantee to correct the
alleged default . Grantor and Grantee will expeditiously meet to
discuss the alleged default, at which time Grantee must indicate,
in writing, the period of time reasonably required to cure the
default . Giving due consideration to Grantee ' s request, Grantor
will at that meeting, or within three days thereafter, state in
writing the period of time Grantor will allow Grantee to resolve
the problem. During this time period for cure, but in no event
less than 20 days before the final date for correction, Grantee
may request additional time to correct the problem, and Grantor
will grant that request if Grantor reasonably determines that
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such additional time is necessary due to delays beyond Grantee ' s
control . If the default continues for a period of 20 days after
the deadline for correction, including any authorized extension
of time, a hearing before the City Council will be scheduled by
Grantor with regard to franchise termination, revocation,
forfeiture, or the imposition of any other appropriate fine,
penalty, or administrative remedy.
(b) The City Manager will provide to Grantee written
notice of the hearing, including the grounds for the proposed
action, not less than 10 days before the hearing. That written
notice will also describe the procedures to be followed by the
City Council to determine whether cause exists for termination,
revocation, forfeiture, or the imposition of fines, penalties, or
remedies . At a minimum, those procedures will afford the Grantee
adequate notice and a fair opportunity for full participation,
including the right to introduce evidence, to require the
production of evidence, to question and to cross-examine
witnesses, and to obtain a transcript of the proceeding at
Grantee ' s expense. At the hearing, the City Council will hear
Grantee, and any other person interested in the matter, and will
determine, at that or at any continued hearing, an appropriate
course of action for enforcement of the franchise. All decisions
of the City Council will be in writing and will include findings
of fact and conclusions . A copy of the decision will be
transmitted to the Grantee. The decision of the City Council
will be final and dispositive but without prejudice to Grantee ' s
right to pursue any remedies provided by state or federal law.
11 . 2 . Delegation. The proposed imposition of remedies,
such as liquidated damages or monetary penalties, that do not
involve termination, revocation, or forfeiture of the franchise
may, at Grantor' s option, be determined by an officer, employee,
or agency of the Grantor to which it may delegate these
administrative decisions, subject to due process and the criteria
contained in this section, and subject to Grantee ' s right to
appeal to the City Council.
11 . 3 . Stop Work Notice. If any construction is performed
by or on behalf of Grantee in a manner that does not comply with
the material provisions of this Agreement, the Grantor' s Public
Works Director, or any other designee of the Grantor ' s City
Manager, may order the work to be stopped. That order to stop
work may be made by written notice and served upon any person
engaged in or responsible for the construction. No work that is
stopped may be resumed until authorized by the Public Works
Director or other designated representative of the Grantor.
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11 . 4 . Authorized Fines, Penalties, and Other Sanctions .
(a) Grantor may impose fines, penalties, and other
sanctions as set forth in this Subsection 11 . 4 for defaults
under, or incidents of noncompliance with, the provisions of this
Agreement. Grantor must first give Grantee written notice of the
alleged default or incident of noncompliance in accordance with
Subsection 11 . 1 (a) and an opportunity to correct the problem.
(b) Following the expiration of any specified period
within which Grantee is directed to cure a default or an incident
of noncompliance, the following fines, penalties, and other
sanctions may be imposed by Grantor after the hearing required
under either Subsections 11 . 1 or 11 . 2 :
1 . For Grantee' s failure to comply in any
material respect with any of the design and construction
standards set forth in Section 7 of this Agreement, a penalty not
to exceed $250 may be imposed for each day that the incident of
noncompliance has not been remedied by the Grantee.
2 . For Grantee ' s failure to comply in any
material respect with the periodic performance testing
requirements set forth in paragraph (a) of Subsection 8 . 2 of this
Agreement, a penalty not to exceed $250 may be imposed for each
day that the incident of noncompliance has not been remedied by
the Grantee.
3 . For Grantee ' s failure, in any material
respect, to maintain or to provide any books, records, reports,
or other documents in the manner required and at the time
specified in this Agreement, a penalty not to exceed $250 may be
imposed for each day that the incident of noncompliance has not
been remedied by the Grantee.
4 . For Grantee ' s failure to comply in any
material respect with any of the Consumer Protection Standards as
specified in Exhibit D to this Agreement, excluding violations of
the four-hour scheduling requirement for service connections or
repairs, a penalty not to exceed $250 may be imposed for each day
that the incident of noncompliance has not been remedied by the
Grantee.
5 . Subject to the limitations imposed by
Section 1722 (b) of the California Civil Code, if Grantee fails to
commence a service connection or repair within a specified or
agreed-upon four-hour period, the Grantee must provide to the
subscriber one of the following, at the subscriber' s option:
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(i) free service connection or repair; or (ii) a credit to the
subscriber ' s account in the sum of $20 .
6. For any other default or incident of
noncompliance that is material and that is not specified in this
Subsection 11 . 4, a maximum penalty not to exceed $250 may be
imposed upon Grantee by Grantor for each day that the default or
incident of noncompliance has not been remedied by the Grantee.
12 . CONTINUITY OF CABLE TELEVISION SYSTEM SERVICES .
12 . 1 . Continuity of Service. The parties acknowledge that
it is the right of all subscribers to receive all services
authorized by this Agreement so long as they honor their
financial and other obligations to the Grantee. During Grantee ' s
upgrade of the system, and upon any future sale of the system,
Grantee must use commercially reasonable efforts to provide
continuous service to subscribers . In the event of purchase by
Grantor, or a change of franchisee, Grantee will cooperate with
Grantor or the new franchisee to operate the system for an
interim period in order to maintain continuity of service to all
subscribers . If Grantee intentionally abandons all cable
services on a system-wide basis for 72 continuous hours, and
Grantee is in material default of this Agreement, or if the
franchise is revoked by Grantor, then Grantor may, by resolution,
when reasonable cause is deemed to exist, assume operation of the
system on an interim basis for the purpose of maintaining
continuity of service. Grantor' s operation of the system may
continue until the circumstances that, in the judgment of the
Grantor, resulted in the cessation of cable services are resolved
to Grantor' s satisfaction. Grantor is entitled to receive all
revenues and is responsible for all obligations and liabilities
during any period in which it operates the system.
12 . 2 . Operation and Management By Grantor.
(a) During any period when the system is being
operated by Grantor under Subsection 12 . 1 above, Grantor will
attempt to minimize the disruption of operations in a manner
consistent with the maintenance of continuing service to
subscribers . Notwithstanding the foregoing, Grantor may, as it
deems necessary, make any changes in any aspect of operations
that, in Grantor' s sole judgment, are required for the
preservation of quality and continuity of service. During that
period, Grantor will also maintain to the best of its ability the
system' s records, physical plant, financial integrity, funds, and
other elements normally involved in operations .
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III 40
(b) Grantor may, upon assuming operation of the
system, appoint a manager to act for it in conducting the
system' s affairs. That manager will have such authority as may
be delegated by Grantor and will be solely responsible to Grantor
for management of the system. Grantee must reimburse Grantor for
all reasonable costs, in excess of system revenues retained by
Grantor, that are incurred during Grantor' s operation if the
franchise remains in effect during the period of Grantor' s
operation.
13 . MISCELLANEOUS PROVISIONS .
13 . 1 . Assignment, Transfer, Sale, and Change of Control .
(a) As specified in paragraph (F) of
Subsection 13 . 12 . 110 of Chapter 13 . 12, consummation of the
following transactions related to this franchise, or involving
the Grantee of this franchise, requires the prior written consent
of the Grantor' s City Council expressed by resolution, which
consent will not be unreasonably withheld, and then only under
such conditions as may be prescribed:
(1) The sale, transfer, lease, assignment, or
other disposition of the franchise, in whole or in part, whether
voluntary or involuntary; provided, however, that such consent is
not required for a transfer in trust, mortgage, or other
hypothecation for the purpose of securing an indebtedness of the
Grantee relating to the construction, reconstruction, operation,
or maintenance of the cable television system. A transfer,
assignment, or other disposition of the franchise may be made
only by an instrument in writing, a duly executed copy of which
must be filed in the office of the City Clerk within 10 days
after the consummation of that transfer, assignment, or other
disposition.
(2) Any merger, consolidation, reorganization,
business combination, or other transaction wherein or whereby 20
percent or more of the ownership interests in the Grantee, or in
any parent company of the Grantee, will be affected and control
of the Grantee will change or be subject to change. As used
herein, "control" means the possession, direct or indirect, of
the power to direct or cause the direction of the management and
policies of the Grantee. A duly executed copy of any written
instrument evidencing the closing and consummation of any such
transaction must be filed in the office of the City Clerk within
10 days after the closing and consummation of that transaction.
(b) In determining whether it will consent to any
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lil III
transfer, assignment, or other disposition of the franchise, or
to any transaction affecting the control of the Grantee, the
Grantor may evaluate the financial, technical, and legal
qualifications of the proposed transferee or controlling person.
Grantee must ensure that the proposed transferee or controlling
person submits an application, in the form required by Chapter
13 . 12, or by any applicable federal law, prior to the closing
date of the proposed transaction. After considering the
financial, technical, and legal qualifications of the proposed
transferee or controlling person, the City Council may, by
ordinance or resolution, authorize the proposed transaction,
subject to such conditions as may be in the public interest .
Grantor' s consent to any such transaction may not be unreasonably
denied or delayed.
(c) Grantee and its proposed transferee or
controlling person are jointly and severally responsible for
reimbursement to the Grantor of all costs and expenses reasonably
incurred in evaluating and processing the application related to
the proposed transaction. These costs and expenses may include,
as may be determined by the Grantor to be reasonably necessary,
the following: costs of administrative review; financial, legal
and technical evaluation of the proposed transferee; costs for
technical experts and consultants; notice and publication costs;
and document preparation expenses . Grantor will send Grantee an
itemized statement of those costs and expenses reasonably
incurred, and Grantee will pay that amount within 30 days after
receipt of that statement . Unless otherwise agreed to by the
Grantor and the Grantee, such costs and expenses will not exceed
the sum of $5, 000 .
(d) The requirements of this Subsection 13 . 1 do not
apply to the restructuring of debt or to the transfer of
ownership interests between existing equity owners of any of the
entities identified in the attached Exhibit B; provided, however,
that the Grantee must provide to Grantor not less than 30 days
prior written notice of that proposed transaction and must
represent that such transaction will have no foreseeable effect
on the management and operation of the Grantee' s cable system in
the franchise service area.
13 . 2 . Force Majeure.
(a) If Grantee ' s performance of any of the terms,
conditions, obligations, or requirements of this Agreement is
prevented or impaired by any cause or event beyond its reasonable
control and not reasonably foreseeable, that inability to perform
will be deemed to be excused, and no penalties or sanctions will
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411 411
be imposed. Those causes beyond Grantee ' s reasonable control and
not reasonably foreseeable include, but are not limited to, acts
of God, civil emergencies, labor unrest, strikes, inability to
obtain access to an individual ' s property, and inability of the
Grantee to secure all necessary authorizations or permits to use
necessary poles or conduits so long as Grantee exercises due
diligence to timely obtain those authorizations or permits .
(b) Where any cause or event is beyond Grantee ' s
reasonable control and is not reasonably foreseeable, and that
cause or event only partially affects Grantee ' s ability to
perform, Grantee must perform to the maximum extent possible. In
that event, Grantee must give written notice to the Grantor of
any such cause or event within five business days after Grantee
has learned or should have learned of its occurrence.
(c) Grantee' s compliance with the terms, conditions,
obligations, and requirements of this Agreement will not be
excused on the basis of increases in the cost of performance,
changes in economic circumstances, or nonperformance by an
employee, agent, or contractor of the Grantee.
(d) Nothing contained in this Subsection 13 . 2 will
be deemed to limit Grantee ' s rights under 47 U. S .C. ' 545, as it
now exists or may later be amended, to seek modifications of
franchise requirements based upon "commercial impracticability. "
13 . 3 . Possessory Interest. By accepting the franchise,
Grantee acknowledges notice was given to Grantee, as required by
California Revenue and Taxation Code Section 107 . 6, that use or
occupancy of any public property under the authority set forth in
this Agreement may create a possessory interest that may be
subject to the payment of property taxes levied upon that
interest .
13 . 4 . Indemnification. Grantee will indemnify, defend, and
hold harmless the Grantor, its officers, agents and employees,
from any liability, claims, damages, costs, or expenses,
including reasonable attorney' s fees, arising out of or
attributable to the exercise or enjoyment of the franchise
renewed pursuant to this Agreement . Grantee, at its sole cost
and expense, and upon demand of Grantor, will appear in and
defend all suits, actions, or other legal proceedings, whether
judicial, quasi-judicial, administrative, legislative or
otherwise, instituted by third persons or duly constituted
authorities, against or affecting Grantor, its officers, agents,
or employees, and arising out of or pertaining to the exercise of
rights arising under the franchise within the franchise service
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area, and injury to persons or damages to property proximately
caused by any conduct undertaken by the Grantee, its agents,
employees, or subcontractors, by reason of the franchise.
13 . 5 . Receivership and Foreclosure.
(a) At the option of Grantor, this franchise will
terminate 120 days after the appointment of a receiver, or
trustee, to take over and conduct the business of Grantee,
whether in a receivership, reorganization, bankruptcy or similar
action or proceeding, unless that receivership or trusteeship is
vacated prior to the expiration of that 120-day period, or
unless : (i) the receiver or trustee, within 120 days after that
appointment, fully complies with all the terms and provisions of
this Agreement, and remedies all defaults under this Agreement;
and (ii) the receiver or trustee, within that 120-day period,
executes an agreement duly approved by the court having
jurisdiction in the matter, whereby that receiver or trustee
assumes and agrees to be bound by each and every term, provision,
and limitation of this Agreement.
(b) In the case of a foreclosure or other judicial
sale of the plant, property, or equipment of Grantee, or any part
thereof, including or excluding this franchise, Grantor may serve
notice of termination upon Grantee and the successful bidder at
that sale, in which event this franchise, and all rights and
privileges of the Grantee under it, will terminate 30 days after
the service of that notice, unless : (i) Grantor approves the
transfer of the franchise in the manner provided by this
Agreement; and (ii) the successful bidder covenants and agrees
with Grantor to assume and be bound by all the terms and
conditions of this Agreement .
13. 6. Conflict of Interest. The parties agree that, to
their knowledge, no member of the City Council, nor any other
officer or employee of Grantor, has any interest, whether
contractual, non-contractual, financial or otherwise in this
franchise, or in other business of the Grantee, and that if any
such interest comes to the knowledge of either party at any time,
a full and complete disclosure of that information will be made
in writing to the other party, even if that interest would not be
considered a conflict of interest under applicable laws . Grantee
covenants that it has, at the time of execution of this
Agreement, no interest, and that it will not acquire any interest
in the future that would conflict in any manner with the
performance of its obligations under this Agreement . Grantee
further covenants that, in the performance of its obligations, no
person having any such interest will be engaged or employed.
R6876\0001\98017.5 39 10/17/00
13 . 7 . Resolution of Disputes .
(a) Disputes regarding the interpretation or
application of any provisions of this Agreement will, to the
extent reasonably feasible, be resolved through good faith
negotiations between the parties .
(b) If any action at law or in equity is brought to
enforce or interpret any provisions of this Agreement, that
action must be initiated in the federal or state courts located
within Los Angeles County, State of California, regardless of any
other possible jurisdiction or venue. In addition, the
prevailing party in any such action is entitled to reasonable
attorneys ' fees, costs and necessary disbursements, in addition
to any other relief that may be sought and awarded.
13 . 8 . Waiver by Grantor. The Grantor has the right to
waive any provisions of this Agreement, except those required by
federal or state laws or regulations, if the Grantor determines
(i) that it is in the public interest to do so, and (ii) that the
enforcement of such provision will impose an undue hardship on
the Grantee or its subscribers . To be effective, a waiver must
be in writing and signed by a duly authorized representative of
the Grantor.
13 . 9. Severability. If any provision of this Agreement is
determined by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions will not be affected
unless their enforcement under the circumstances would be
unreasonable, inequitable, or would otherwise frustrate the
purposes of this Agreement .
13 . 10 . Amendments . This Agreement supersedes all prior
proposals, agreements and understandings between the parties and
may not be modified or terminated orally. No modification,
termination or attempted waiver of any of its provisions will be
binding unless in writing and signed by the party against whom
the same is sought to be enforced.
13. 11 . Binding Upon Successors . This Agreement is binding
upon and inures to the benefit of each of the parties and to
their respective transferees, successors and assigns .
13 . 12 . Counterpart Execution. This Agreement may be
executed in multiple counterparts, each of which is deemed to be
an original and all of which constitute one and the same
instrument .
R6876\0001\98017.5 40 10/17/00
411 110
13 . 13 . Applicable Law. This Agreement and the transactions
contemplated by it are to be construed in accordance with and
governed by the applicable laws of the State of California and of
the United States .
14 . DEFINITIONS .
(a) Defined Terms. For the purposes of this
Agreement, the following words, terms, phrases, and their
derivations have the meanings set forth below. When not
inconsistent with the context, words used in the present tense
include the future tense, and words in the singular number
include the plural number.
"Basic Service" or "Basic Cable Service" or "Basic
Service Tier" means the lowest service tier that includes the
retransmission of local television broadcast signals, including
those of public, educational, and governmental access channels.
"1984 Cable Act" means the Cable Communications
Policy Act of 1984 .
"1992 Cable Act" means the Cable Television Consumer
Protection and Competition Act of 1992 .
"Cable Act" means the 1984 Cable Act as amended by
the 1992 Cable Act and by the Telecommunications Act of 1996.
"Cable Operator" means any person or group of persons
(i) who provides cable service over a cable system; or (ii) who
controls or is responsible for, through any arrangement, the
management and operation of a cable system.
"Cable Service" means the one-way transmission to
subscribers of video programming, or other programming services,
and subscriber interaction, if any, that is required for the
selection or use of that video programming or other programming
service. For the purposes of this definition, "video
programming" means programming provided by, or generally
considered comparable to programming provided by, a television
broadcast station; and "other programming service" means
information that a cable system operator makes available to all
subscribers generally. For purposes of this Agreement, and
subject to future changes in federal law, the term "cable
service" includes high-speed data services that are provided to
subscribers within the franchise service area.
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411 410
"Cable System" or "Cable Television System" means 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 that includes video
programming and that is provided to multiple subscribers within a
community. The term "cable system" does not include:
(i) a facility that serves only to retransmit
the television signals of one or more television
broadcast stations;
(ii) a facility that serves subscribers without
using any public right-of-way;
(iii) a facility of a common carrier that is
subject, in whole or in part, to the provisions
of Title II of the Telecommunications Act of
1996, except that such facility will be
considered a cable system (other than for
purposes specified in Section 621 (c) of the 1984
Cable Act) to the extent such facility is used
in the transmission of video programming
directly to subscribers, unless the extent of
such use is solely to provide interactive on-
demand services;
(iv) an open video system that complies with
Section 653 of Title VI of the
Telecommunications Act of 1996; or
(v) any facilities of an electric utility that
are used solely for operating its electric
utility system.
"Complaint" means a billing dispute in which a
subscriber notifies Grantee of an outage or degradation in
picture quality that is not corrected following the initial
telephone or service call.
"Control" or "Controlling Interest" means actual
working control in whatever manner exercised, including, without
limitation, working control through ownership, management, or
debt instruments, as the case may be, of the cable system or the
Grantee.
"Drop" means the cable and related equipment
connecting the cable system' s plant to equipment at the premises
of a subscriber or the facilities of the Grantor.
R6876\0001\98017.5 42 10/17/00
411
"Educational Channel" means any channel where
non-profit educational institutions are the primary designated
programmers .
"FCC" means the Federal Communications Commission or
its designated representatives .
"Franchise" means a written undertaking or action of
the Grantor that authorizes a specific person to use the
Grantor' s streets and public ways for the purpose of installing,
operating and maintaining a cable television system to provide
cable service.
"Governmental Channel" means any channel where a
local government agency is the primary designated programmer, and
the programming is informational programming regarding government
activities and services .
"Grantee" means CoxCom, Inc. , dba Cox Communications
Palos Verdes, Inc. , a Delaware corporation and a wholly-owned
subsidiary of Cox Communications, Inc. , a Delaware corporation,
and its lawful successors, transferees, or assignees .
"Grantor" means the City of Rancho Palos Verdes,
acting by and through its elected governing body, or such
representative as the governing body may designate to act on
cable matters in its behalf.
"Gross Annual Revenue" or "Gross Annual Receipts" or
"Gross Receipts" means all revenue, as determined in accordance
with generally accepted accounting principles, that is received,
directly or indirectly, by Grantee from or in connection with the
distribution of any cable service within the franchise service
area, and any other service provided within the franchise service
area that may, under existing or future federal law, be included
in the Cable Act definition for the purpose of calculating and
collecting the maximum allowable franchise fee for operation of
the system, whether or not authorized by any franchise,
including, without limitation, leased or access channel revenues
received, directly or indirectly, from or in connection with the
distribution of any cable service. It is intended that all
revenue collected by the Grantee from the provision of cable
service over the system, whether or not authorized by the
franchise, be included in this definition. Gross Annual Revenue
also specifically includes any revenue received, as reasonably
determined from time to time by the Grantor, through any means
that is intended to have the effect of avoiding the payment of
compensation that would otherwise be paid to the Grantor for the
R6876\0001\98017.5 43 10/17/00
410 411
franchise granted, including the fair market value of any
nonmonetary (i . e. , barter) transactions between Grantee and any
person, but not less than the customary prices paid in connection
with equivalent transactions . Gross Annual Revenue also includes
any bad debts recovered, payments received for the lease or
license to third parties of excess capacity in fiber optic cables
or similar transmission facilities, and all revenue that is
received by Grantee, or its subsidiaries or affiliated companies,
directly or indirectly, from or in connection with the
distribution of any service over the system or the conduct of any
service-related activity involving the system, including without
limitation revenues derived from advertising sales, the sale of
products or services on home shopping channels, and the sale of
program guides . Gross Annual Revenue does not include: (i) the
revenue of any person to the extent that such revenue is also
included in the Gross Annual Revenue of Grantee; (ii) taxes
imposed by law on Subscribers that Grantee is obligated to
collect; (iii) amounts that must be excluded pursuant to
applicable law; and (iv) bad debt .
"Headend" means that central portion of the system
where signals are introduced into and received from the balance
of the system.
"Leased Channel" or "Leased Access Channel" means any
channel where someone other than Grantor or Grantee is sold the
rights to air programming.
"Monitoring" or "Tapping" means observing or
receiving a signal, where the observer is neither the sending nor
receiving party and is not authorized by the sending or receiving
party to observe that signal, whether the signal is observed or
received by visual, electronic, or any other means .
"Pay Cable, " "Premium-Service" or "Pay Television"
means signals for which there is a fee or charge to users over
and above the charge for basic service, including any tiers of
service; provided, however, the sale or lease of studio
facilities, equipment, or tapes to local users are not deemed to
be pay or premium services .
"Person" means any individual, corporation, limited
liability company, partnership, proprietorship, or organization
authorized to do business in the State of California.
"Plant" means the transmitting medium and related
equipment that transmits signals between the headend and
subscribers, including drops.
R6876\0001\98017.5 44 10/17/00
410 111
"Pole Attachment Agreement" or "Attachment Agreement"
means any agreement with the Grantor, with any other governmental
entity, or with any public utility relating to the Grantee ' s use
of utility poles, ducts, or conduits .
"Program" or "Programming" means the information
content of a signal and the act or process of creating that
content, whether that content is intended to be pictures and
sound, sound only, or any other form of information.
"Programmer" means any person who provides program
material or information for transmission by means of the system.
"Property of Grantee" means all property owned or
leased by Grantee within the franchise service area in the
conduct of its cable system business under a franchise.
"Public Channel, " "Access Channel, " "Community
Service Channel" or "Community Channel" means any channel for
which members of the public, or any community organization, may
provide nonadvertiser supported programming.
"Residential Dwelling Unit" or "Dwelling Unit" means
a home, mobile home, condominium, apartment, cooperative unit,
and any other individual dwelling unit.
"Service" means any kind of service or type of
benefit provided by Grantee, or any group of related benefits
made available to any person, that involves the use of a signal
transmitted via a cable television system, whether the signal and
its content constitute the entire service or comprise only a part
of a service that involves other elements of any number or kind.
"Service Area" or "Franchise Service Area" means that
territory within the City of Rancho Palos Verdes that is
specifically described in the franchise agreement .
"Service Interruption" means the loss of picture or
sound on one or more cable channels .
"Service Tier" or "Tier" means a category of cable
service or other services provided by a cable operator and for
which a separate rate is charged by the cable operator, other
than per-channel or per-event programming or packages of per-
channel or per-event programming.
R6876\0001\98017.5 45 10/17/00
410 410
"Streets" means the surface of, and the space above
and below, any public street, sidewalk, alley, or other public
way or right-of-way of any type.
"Subscriber" means any person electing to subscribe
to, for any purpose, a service provided by Grantee by means of or
in connection with its cable system.
(b) Terms Not Defined. Words, terms, or phrases not
defined above in paragraph (a) will first have the meaning as
defined in the Cable Act, and next in Chapter 13 . 12, and next the
special meanings attributable to their use in any industry,
business, trade, or profession where they commonly carry special
meanings. If those special meanings are not common, they will be
defined as set forth in commonly used and accepted dictionaries
of the English language.
15. AUTHORITY AND EFFECTIVE DATE.
15 . 1 . Authority. The persons signing below represent that
they have the requisite authority to bind the entities on whose
behalf they are signing.
15 . 2 . Effective Date. This Agreement will become effective
as of the date specified in Subsection 1 . 7 . It is the intention
of the parties that the Grantee will first execute this Agreement
and then submit it to the Grantor. The City Clerk will insert
the effective date in all counterparts of this Agreement, attest
to their execution by a duly authorized officer of the Grantor,
and transmit one or more fully executed counterparts to the
Grantee.
TO EFFECTUATE THIS AGREEMENT, each of the parties has
caused this Agreement to be executed by its duly authorized
representative as of the date set forth below the authorized
signature.
APPROVED AS TO FORM: CITY OF RANCHO PALOS VERDES
B
y: ��►
City Attorney ay•r
Date: « /3 /00
ATTEST:
ty Clerk
R6876\0001\98017.5 46 10/17/00
111 111
COX COM, INC. , a Delaware
corporation, dba COX COMMUNICATIONS
OF PALOS VERDES, INC.
By: _AD4/4
Title: VO
Date: /e7- 2?7 'O
APPROVED AS TO FORM:
Corporate Counsel
R6876\0001\98017.5 47 10/17/00
111 41
EXHIBIT A
CHAPTER 13. 12 OF TITLE 13 OF
THE RANCHO PALOS VERDES
MUNICIPAL CODE AS ADOPTED AND
IN EFFECT ON THE EFFECTIVE DATE
OF FRANCHISE RENEWAL
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0 0
13.12.010
Chapter 13.12 13.12.020 Purpose and intent.
A. The city council finds and determines as follows:
TELECOMMUNICATIONS REGULATORY 1. The development of cable television and other
ORDINANCE telecommunications systems may provide significant
benefits for,and have substantial impacts upon,the resi-
Sections: dents of the city.
Article I. General Provisions 2. Because of the complex and rapidly changing
13.12.010 Title. technology associated with telecommunications services
13.12.020 Purpose and intent. and systems,the public convenience,safety,and general
13.12.030 Defined terms and phrases. welfare can best be served by establishing regulatory
powers to be exercised by the city.
Article II. Cable Television Systems 3. This chapter is intended to establish regulatory
13.12.100 Authority and findings. provisions that authorize the city to regulate telecommu-
13.12.110 Franchise terms and conditions. nications services and systems to the extent authorized by
13.12.120 Franchise applications and federal and state law, including but not limited to the
renewal. Federal Cable Communications Policy Act of 1984, the
13.12.130 Contents of cable television Federal Cable Television Consumer and Competition Act
franchise agreements. of 1992, the Federal Telecommunications Act of 1996,
applicable regulations of the Federal Communications
Article III. Open Video Systems Commission,and applicable California statutes and regu-
13.12.200 Applicability. lations.
13.12.210 Application required. B. The purpose and intent of this chapter is to pro-
13.12.220 Review of the application. vide for the attainment of the following objectives:
13.12.230 Agreement required. 1. To enable the city to discharge its public trust in
a manner consistent with rapidly evolving federal and
Article IV. Other Telecommunications state regulatory policies,industry competition, and tech-
Services and Systems nological development.
13.12.300 Other multichannel video 2. To authorize and to manage reasonable access to
programming distributors. the city's public rights-of-way and public property for
13.12.310 Video providers—Registration— telecommunications purposes on a competitively neutral
Customer service standards. and nondiscriminatory basis.
13.12.320 Antennas for telecommunications 3. To obtain fair and reasonable compensation for
services. the city and its residents for authorizing the private use
13.12330 Telecommunications service of the public rights-of-way and public property.
provided by telephone 4. To promote competition in telecommunications
corporations. services, minimize unnecessary local regulation of tele-
communications service providers, and encourage the
Article V. Definitions. delivery of advanced and competitive telecommunications
13.12.400 Defined terms and phrases. services on the broadest possible basis to local govern-
ment and to the businesses, institutions, and residents of
Article VI. Violations—Severability the city.
13.12.500 Violations—Enforcement. 5. To establish clear local guidelines,standards,and
13.12.510 Severability. time frames for the exercise of local authority with re-
spect to the regulation of telecommunications service
Article I. General Provisions providers.
6. To encourage the profitable deployment of ad-
13.12.010 Title. vanced telecommunications infrastructures that satisfy
This chapter is known and may be cited as the"Tele- local needs, deliver enhanced government services, and
communications Regulatory Ordinance" of the city of provide informed consumer choices in an evolving tele-
Rancho Palos Verdes. (Ord. 339 § 2 (part), 1998) communications market. (Ord. 339 § 2 (part), 1998)
171 (Rancho Palos Verdes 11-98)
0 •
13.12.030
13.12.030 Defined terms and phrases. B. Franchise Required.It is unlawful for any person
Various terms and phrases used in this chapter are to construct,install,or operate a cable television system
defined below in Article V,Section 13.12.400.(Ord.339 within any street or public way in the city without first
§ 2 (part), 1998) obtaining a franchise under the provisions of this article.
C. Term of the Franchise.
Article II. Cable Television Systems 1. A franchise granted under this article will be for
the term specified in the franchise agreement,commenc-
13.12.100 Authority and findings. ing upon the effective date of the ordinance or resolution
A. In accordance with applicable federal and state adopted by the city council that authorizes the franchise.
law, the city is authorized to grant one or more nonex- 2. A franchise granted under this article may be
clusive franchises to construct, reconstruct, operate, and renewed upon application by the grantee in accordance
maintain cable television systems within the city limits. with the then-applicable provisions of state and federal
B. The city council finds that the development of law and of this article.
cable television and related telecommunications services D. Franchise Territory. A franchise is effective
may provide significant benefits for, and substantial within the territorial limits of the city, and within any
P
impacts upon, the residents of the city. Because of the area added to the city during the term of the franchise,
P
complex and rapidly changing technology associated with unless otherwise specified in the ordinance or resolution
P P
cable television, the city council further finds that the granting the franchise or in the franchise agreement.
public convenience, safety, and general welfare can best E. Federal or State Jurisdiction.This article will be
be served by establishing regulatory powers to be exer- construed in a manner consistent with all applicable
cised by city.cit . This article is intended to specify the federal and state laws, and it applies to all franchises
means forrovidin to the public the best possible cable granted or renewed after the effective date of this article,
P g
television and related telecommunications services, and to the extent authorized by applicable law.
every franchise issued in accordance with this article is F. Franchise Non-Transferable.
intended to achieve this primary objective. It is the fur- 1. Grantee may not sell,transfer,lease,assign,sub-
ther intent of this article to adopt regulatory provisions let,or dispose of,in whole or in part,either by forced or
that will enable the city to regulate cable television and involuntary sale,or by ordinary sale,contract,consolida-
related telecommunications services to the maximum tion, or otherwise, the franchise or any of the rights or
extent authorized by federal and state law. (Ord. 339 § privileges therein granted,without the prior consent of the
2 (P )art , 1998)
city council and then only upon such terms and condi-
tions as may be prescribed by the city council, which
13.12.110 Franchise terms and conditions. consent may not be unreasonably denied or delayed.Any
A. Franchise Purposes. A franchise granted by the attempt to sell, transfer, lease, assign, or otherwise dis-
city provisions under the of this article may authorize the pose of the franchise without the consent of the city
grantee to do the following: council is null and void.The granting of a security inter-
1. To engage in the business of providing cable est in any assets of the grantee,or any mortgage or other
service and such other telecommunications services as hypothecation, will not be deemed a transfer for the
may be authorized by law and which grantee elects to purposes of this subsection.
provide to its subscribers within the designated franchise 2. The requirements ofsubsection (F)(1) of this
service area. section apply to any change in control of grantee. The
2. To erect,install,construct,repair,rebuild,recon- word"control"as used herein is not limited to the owner-
struct, replace, maintain, and retain, cable lines, related ship of major stockholder or partnership interests, but
electronic equipment,supporting structures,appurtenanc- includes actual working control in whatever manner
es, and otherro ert in connection with the operation exercised.If grantee is a corporation,prior authorization
P P Y
of the cable system in, on, over, under, upon, along and of the city council is required where ownership or control
across streets or otherP ublic places within the designated of more than ten percent of the voting stock of grantee
franchise service area. is acquired by a person or a group of persons acting in
3. To maintain and operate the franchise properties concert, none of whom, singularly or collectively, owns
for the ,origination,reception,transmission,amplification, or controls the voting stock of the grantee as of the
g
and distribution of television and radio signals, and for effective date of the franchise.
the delivery of cable services and such other services as 3. Grantee must notify the city in writing of any
maybe authorized bylaw. foreclosure or judicial sale of all or a substantial part of
(Rancho Palos Verdes 11-98) 172
0 0
13.12.110
the grantee's franchise property, or upon the termination document preparation expenses.No reimbursement may
of any lease or other interest covering all or a substantial be offset against any franchise fee payable to the city
part of that franchise property. That notification will be during the term of the franchise.
considered by the city as notice that a change in control G. Geographical Coverage.
of ownership of the franchise has taken place, and the 1. Grantee must design,construct,and maintain the
provisions of this paragraph that require the prior consent cable television system so as to have the capability to
of the city council to that change in control of ownership pass every dwelling unit in the city, subject to any ser-
will apply.1 vice-area line extension requirements of the franchise
-
4. For the purpose of determining whether it will agreement.
consent to an acquisition, transfer, or change in control, 2. After service has been established by activating
the city may inquire as to the qualifications of the pro- trunk or distribution cables for any service area, grantee
spective transferee or controlling party,and grantee must must provide service to any requesting subscriber in that
assist the city in that inquiry. In seeking the city's con- service area within thirty days from the date of request,
sent to any change of ownership or control,grantee or the provided that the grantee is able to secure on reasonable
proposed transferee,or both,must complete Federal Com- terms and conditions all rights-of-way necessary to extend
munications Commission Form 394 or its equivalent.This service to that subscriber within that thirty-day period.
application must be submitted to the city not less than H. Nonexclusive Franchise.Every franchise granted
one hundred twenty days prior to the proposed date of is nonexclusive. The city specifically reserves the right
transfer. The transferee must establish that it possesses to grant, at any time, such additional franchises for a
the legal, financial, and technical capability to operate cable television system, or any component thereof, as it
and maintain the cable system and to comply with all deems appropriate,subject to applicable state and federal
franchise requirements during the remaining term of the law.If an additional franchise is proposed to be granted
franchise. If the legal, financial, and technical qualifica- to a subsequent grantee, a noticed public hearing must
tions of the applicant are satisfactory, the city will con- first be held in accordance with the provisions of Govern-
sent to the transfer of the franchise. The consent of the ment Code Section 53066.3.
city to that transfer will not be unreasonably denied or I. Multiple Franchises.
delayed. 1. The city may grant any number of franchises,
5. Any financial institution holding a pledge of the subject to applicable state and federal law.The city may
grantee's assets to secure the advance of money for the limit the number of franchises granted, based upon, but
construction or operation of the franchise property has the not necessarily limited to,the requirements of applicable
right to notify the city that it, or a designee satisfactory law and specific local considerations, such as:
to the city, will take control of and operate the cable a. The capacity of the public rights-of-way to ac-
television system upon grantee's default in its financial commodate multiple cables in addition to the cables,
obligations. Further, that financial institution must also conduits, and pipes of the existing utility systems, such
submit a plan for such operation within ninety days after as electrical power, telephone, gas, and sewerage.
assuming control.The plan must insure continued service b. The benefits that may accrue to subscribers as a
and compliance with all franchise requirements during the result of cable system competition, such as lower rates
period that the financial institution will exercise control and improved service.
over the system. The financial institution may not exer- c. The disadvantages that may result from cable
cise control over the system for a period exceeding one system competition,such as the requirement for multiple
year unless authorized by the city, in its sole discretion, pedestals on residents'property,and the disruption arising
and during that period of time it will have the right to from numerous excavations within the public rights-of-
petition the city to transfer the franchise to another grant- way.
ee. 2. The city may require that any new grantee be
6. Grantee must reimburse the city for the city's responsible for its own underground trenching and the
reasonable review and processing expenses incurred in associated costs if,in the city's opinion,the rights-of-way
connection with any transfer or change in control of the in any particular area cannot reasonably accommodate
franchise. These expenses include, without limitation, additional cables. (Ord. 339 § 2 (part), 1998)
costs of administrative review,financial,legal,and tech-
nical evaluation of the proposed transferee, consultants 13.12.120 Franchise applications and renewal.
(including technical and legal experts and all costs in- A. Filing of Applications. Any person desiring an
curred by these experts),notice and publication costs,and
173 (Rancho Palos Verdes 11-98)
0 0
13.12.120
initial franchise for a cable television system must file an the evidence received at the hearing as to whether the
application with the city. A reasonable nonrefundable franchise should be granted, and, if granted, subject to
application fee in an amount established by resolution of what conditions.The city council may grant one or more
the city council must accompany the application. That franchises, or may decline to grant any franchise.
application fee will cover all costs associated with re- D. Franchise Renewal. Franchise renewals will be
viewing and processing the application,including without processed in accordance with then-applicable law. The
limitation costs of administrative review,financial,legal, city and grantee, by mutual consent, may enter into
and technical evaluation of the applicant, consultants renewal negotiations at any time during the term of the
(including technical and legal experts and all costs in- franchise. (Ord. 339 § 2 (part), 1998)
curred by those experts), notice and publication require-
ments,and document preparation expenses.If those costs 13.12.130 Contents of cable television
exceed the application fee, the applicant must pay the franchise agreements.
difference to the city within thirty days following receipt A. The terms and provisions of a franchise agree-
of an itemized statement of those costs. ment for the operation of a cable television or related
B. Applications—Contents. An application for an telecommunications services may relate to or include,
initial franchise for a cable television system must con- without limitation, the following subject matters:
tain, as applicable: 1. The nature, scope, geographical area, and dura-
1. A statement as to the proposed franchise service tion of the franchise.
area. 2. The applicable franchise fee to be paid to the
2. A resume of the applicant's prior history,includ- city, including the amount, the method of computation,
ing the experience and expertise of the applicant in the and the time for payment.
cable television and telecommunications industry. 3. Requirements relating to compliance with and
3. A list of the partners,general and limited,of the implementation of state and federal laws and regulations
applicant, if a partnership, or the percentage of stock pertaining to the operation of the cable television system.
owned or controlled by each stockholder,if a closely-held 4. Requirements relating to the construction, up-
corporation.If the applicant is a publicly-owned corpora- grade, or rebuild of the cable television system, as well
tion,each owner of ten percent or more of the issued and as the provision of special services, such as outlets for
outstanding capital stock must be identified. public buildings,emergency alert capability,and parental
4. A list of officers, directors, and managing em- control devices.
ployees of the applicant, together with a description of 5. Requirements relating to the maintenance of a
the background of each such person. performance bond, a security fund, a letter of credit, or
5. The names and addresses of any parent or sub- similar assurances to secure the performance of the
sidiary of the applicant, or any other business entity grantee's obligations under the franchise agreement.
owning or controlling applicant in whole or in part, or 6. Requirements relating to comprehensive liability
that is owned or controlled in whole or in part by the insurance,workers'compensation insurance,and indem-
applicant. nification.
6. A current financial statement of the applicant 7. Requirements relating to consumer protection and
verified by a certified public accountant or otherwise customer service standards, including the resolution of
certified to be true, complete, and correct to the reason- subscriber complaints and disputes and the protection of
able satisfaction of the city. subscribers' privacy rights.
7. The proposed construction and service schedule. 8. Requirements relating to the grantee's support of
8. Any additional information that the city deems local cable usage, including the provision of public,
to be reasonably necessary. educational,and governmental access channels,the cover-
C. Consideration of Initial Applications. age of public meetings and special events, and financial
1. Upon receipt of an application for an initial fran- support for governmental access channels.
chise, the city manager or the city manager's designee 9. Requirements relating to construction,operation,
must prepare a report and make recommendations to the and maintenance of the cable television system within the
city council concerning that application. public rights-of-way,including compliance with all appli-
2. A public hearing will be noticed prior to any cable building codes and permit requirements of the city,
initial franchise grant,at a time and date approved by the the abandonment,removal,or relocation of facilities,and
city council. Within thirty days after the close of the compliance with FCC technical standards.
hearing,the city council will make a decision based upon
(Rancho Palos Verdes 11-98) 174
0 1
13.12.130
10. Requirements relating to recordkeeping,account- 4. A description of the open video system services
ing procedures, reporting, periodic audits, and perfor- that will be offered by the applicant over its existing or
mance reviews,and the inspection of grantee's books and proposed facilities.
records. 5. A description of the transmission medium that
11. Acts or omissions constituting material breaches will be used by the applicant to deliver the open video
of or defaults under the franchise agreement, and the system services.
applicable penalties or remedies for such breaches or 6. Information in sufficient detail to establish the
defaults, including fines, penalties, liquidated damages, applicant's technical qualifications,experience,and exper-
suspension, revocation, and termination. tise regarding the ownership and operation of the open
12. Requirements relating to the sale,assignment,or video system described in the application.
other transfer or change in control of the franchise. 7. Financial statements prepared in accordance with
13. The grantee's obligation to maintain continuity generally accepted accounting principles that demonstrate
of service and to authorize, under certain specified cir- the applicant's financial ability to:
cumstances, the city's operation and management of the a. Construct,operate,maintain and remove any new
cable system. physical plant that is proposed to be constructed in the
14. Such additional requirements,conditions,policies, city.
andP rocedures as may be mutually agreed upon by the b. Comply with the city's public, educational, and
parties to the franchise agreement and that will, in the governmental access requirements as specified below in
judgment of city staff and the city council,best serve the Section 13.12.230 (B)(4).
public interest and protect the public health,welfare,and c. Comply with the city's requirement that gross
safety. revenue fees be paid in the sum of five percent,as speci-
B. If there is any conflict or inconsistency between feed below in Section 13.12.230 (B)(2).
theP rovisions of a franchise agreement authorized by the 8. An accuratemap showing the location of any
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cit council and provisions of this article,the provisions existing telecommunications facilities in the city that the
of the franchise agreement will control. (Ord. 339 § 2 applicant intends to use, to purchase, or to lease.
(part), 1998) 9. If the applicant's operation of the open video
system will require the construction of new physical plant
Article III. Open Video Systems in the city, the following additional information must be
provided:
13.12.200 Applicability. a. A preliminary construction schedule and comple-
The provisions of this article are applicable to an open tion dates.
video system operator,as defined below in Article V,that b. Preliminary engineering plans,specifications,and
intends to deliver video programming to consumers in the a network map of any new facilities to be constructed in
city over an open video system. (Ord. 339 § 2 (part), thecity, in sufficient detail to identify:
1998) i. The location and route requested for the
applicant's proposed facilities.
13.12.210 Application required. ii. The locations,if any,for interconnection with the
A. Before commencing the delivery of video pro- facilities of other.telecommunications service providers.
grammingservices to consumers in the city over an open iii. The specific structures,improvements,facilities,
video system, the open video system operator must file and obstructions, if any, that the applicant proposes to
an application with the city.That application must include remove or relocate on a temporary or permanent basis.
PP -
or be accompanied by the following, as applicable: c. The applicant's statement that, in constructing
1. The identity of the applicant,including all affili- any new physical plant, the applicant will comply with
ates of the applicant. all applicable ordinances, rules, and regulations of the
2. Copies of FCC Form 1275, all "Notices of In- city, including the payment of all required permit and
tent"filed under 47 CFR Section 76.1503(b)(1),and the processing fees.
Order of the FCC, all of which relate to certification of 10. The information and documentation that is re-
the applicant to operate an open video system in accor- quired to be submitted to the city by a video provider,as
dance with Section 653(a)(1)of the Communications Act specified below in subsection B of Section 13.12.310.
and the FCC's rules. 11. Such additional information as may be requested
3. The area or areas of the city that the applicant by the city manager.
desires to serve.
175 (Rancho Palos Verdes 11-98)
•
13.12.210 III
12.
A nonrefundable filing fee in an amount estab- cable operator. The term "gross revenues" does not in-
lished by resolution of the city council. clude revenues, such as subscriber or advertising reve-
B. If any item of information specified above in nues,collected by unaffiliated video programming provid-
subsection A of this section is determined under para- ers.
mount federal or state law to be unlawful, the city man- 3. The obligation of the open video system operator
ager is authorized to waive the requirement that such to comply with requirements relating to information
information be included in the application. (Ord. 339 § collection and recordkeeping, accounting procedures,
2 (P art), 1998) reporting, periodic audits, and inspection of records in
order to ensure the accuracy of the fees on the gross
13.12.220 Review of the application. revenues that are required to be paid as specified above
Within thirty days after receipt of an application filed in subsection (B)(2) of this section.
under Section 13.12.210 that is deemed to be complete, 4. The obligation of the open video system operator
the city manager will give written notice to the applicant to meet the city's requirements with respect to public,
g
of the city's intent to negotiate an agreement setting forth educational, and governmental access channel capacity,
the terms and conditions under which the operation of the services,facilities, and equipment, as provided for in 47
proposed open video system will be authorized by the CFR Section 76.1505.In this regard,the following stan-
city.P P
The commencement of those negotiations will be on dards and procedures are applicable:
a date that is mutually acceptable to the city and to the a. The open video system operator is subject to the
applicant. (Ord. 339 § 2 (part), 1998) same public, educational, and governmental access re-
quirements that apply within the cable television franchise
13.12.230 Agreement required. service area with which its system overlaps.
A. No videoP rogramming services may be provided b. The open video system operator must ensure that
in the P cityby an open video system operator unless the all subscribers receive all public,educational,and govern-
operator
overn-
P
o erator and the city have executed a written agreement mental access channels within the franchise service area
setting forth the terms and conditions under which the in which the city's subscribers are located.
operation of the proposed open video system will be c. The open video system operator may negotiate
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authorized by city.cit . with the city to establish the operator's obligations with
B. The agreement between the city and the open respect to public, educational, and governmental access
video
system operator may contain terms and conditions channel capacity, services, facilities, and equipment.
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that relate to the following subject matters, to the extent These negotiations may include the city's franchised
that such terms, conditions, and subject matters are not cable operator if the city,the open video system operator,
preempted byfederal statute or regulations: and the franchised cable operator so desire.
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1. The nature,scope,and duration of the agreement, d. If the open video system operator and the city are
including provisions for its renewal or extension. unable to reach an agreement regarding the operator's
2. The obligation of the open video system operator obligations with respect to public, educational, and gov-
toPaY to the city, specified at s ecified times, fees on the gross ernmental access channel capacity,services,facilities,and
revenues received by the operator, as authorized by 47 equipment within the city's jurisdiction,then the follow-
CFR Section 76.1511, in accordance with the following ing obligations will be imposed:
standards andP rocedures: i. The open video system operator must satisfy the
a. The amount of the fees on the gross revenues same public,educational, and governmental access obli-
will be fiveP ercent, and will be paid in lieu of the fran- gations as the city's franchised cable operator by provid-
chise feesP ermitted under Section 622 of the Communi- ing the same amount of channel capacity for public,
cations Act. educational, and governmental access and by matching
b. The term "gross revenues" means (i) all gross the city's franchised cable operator's annual financial
revenues received by an open video system operator or contributions in support of public, educational,and gov-
its affiliates, including all revenues received from sub- ernmental access services, facilities, and equipment that
scribers and all carriage revenues received from unaf- are actually used by the city. For in-kind contributions,
filiated videoro amming providers; and(ii)all adver- such as cameras or production studios, the open video
P �'
tising revenues received by the operator or its affiliates system operator may satisfy its statutory obligation by
in connection with theP rovision of video programming, negotiating mutually agreeable terms with the city's
where such revenues are included in the calculation of the franchised cable operator,so that public,educational,and
cable franchise fee paid to the city by the franchised governmental access services to the city are improved or
r
(Rancho Palos Verdes 11-98) 176
•
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13.12.230
increased.If such terms cannot be agreed upon,the open er additional capacity is or becomes available, whether
video system operator must pay to the city the monetary it is due to increased channel capacity or to decreased
equivalent of the franchised cable operator's depreciated demand for channel capacity.
in-kind contribution, or, in the case of facilities, the 5. If the city and the open video system operator
annual amortization value. Any matching contributions cannot agree as to the application of the FCC's rules
provided by the open video system operator must be used regarding the open video system operator's obligations
to fund activities arising under Section 611 of the Corn- to provide public, educational, and governmental access
munications Act. under the provisions of subsection(B)(4)of this section,
ii. The city will impose upon the open video system then either party may file a complaint with the FCC in
operator the same rules and procedures that it imposes accordance with the dispute resolution procedures set
upon the franchised cable operator with regard to the forth in 47 CFR Section 76.1514. No agreement will be
open video system operator's use of channel capacity executed by the city until the dispute has been finally
designated for public, educational, and governmental resolved.
access use when that capacity is not being used for such 6. If the open video system operator intends to
purposes. maintain an institutional network, as defined in Section
e. The city's franchised cable operator is required 611(0 of the Communications Act, the city will require
under federal law to permit the open video system opera- that educational and governmental access channels be
tor to connect with its public, educational, and govern- designated on that institutional network to the same
mental access channel feeds. The open video system extent that those channels are designated on the institu-
operator and the franchised cable operator may decide tional network of the city's franchised cable operator.
how to accomplish this connection,taking into consider- 7. The authority of an open video system provider
ation the physical and technical characteristics of the to exercise editorial control over any public,educational,
cable and the open video systems involved. If the fran- or governmental use of channel capacity will be restricted
chised cable operator and the open video system operator in accordance with the provisions of 47 CFR Section
cannot agree on how to accomplish the connection, the 76.1505(f).
city has the right to decide.The city may require that the 8. The obligation of the open video system operator
connection occur on city-owned property or on public to comply with all applicable federal and state statutes
rights-of-way. and regulations relating to customer service standards,
f. All costs of connection to the franchised cable including the Cable Television and Video Customer
operator's public, educational, and governmental access Service and Information Act(Government Code Sections
channel feed must be borne by the open video system 53054, et seq.), and the Video Customer Service Act
operator. These costs will be counted towards the open (Government Code Sections 53088, et seq.)
video system operator's matching financial contributions 9. If new physical plant is proposed to be construct-
set forth above in subsection (B)(4)(d)(i) of this section. ed within the city, the obligation of the open video sys-
g. The city will not impose upon the open video tem operator to comply with the following rights-of-way
system operator any public,educational,or governmental use and management responsibilities that are also im-
access obligations that are greater than those imposed posed by the city upon other telecommunications service
upon the franchised cable operator. providers in a nondiscriminatory and competitively neu-
h. If there is no existing franchised cable operator, tral manner:
the provisions of 47 CFR Section 76.1505(d)(6) will be a. Compliance with all applicable city building and
applicable in determining the obligations of the open zoning codes, including applications for excavation,
video system operator. encroachment,and construction permits and the payment
i. The open video system operator must adjust its of all required permit and inspection fees.
system to comply with new public, educational, and b. The coordination of construction requirements.
access obligations imposed on the city's franchised cable c. Compliance with established standards and proce-
operator following a renewal of the cable television dures for constructing lines across private property.
franchise;provided,however,that the open video system d. Compliance with all applicable insurance and
operator will not be required to displace other program- indemnification requirements.
mers using its open video system to accommodate public, e. The repair and resurfacing of construction-dam-
educational,and governmental access channels.The open aged streets.
video system operator must comply with such new public,
educational,and governmental access obligations whenev-
177 (Rancho Palos Verdes 11-98)
•
13.12.230 0
1. Compliance with all public safety requirements cess to the satellite. Local regulation of direct-to-home
that are applicable to telecommunications service provid- satellite services is further proscribed by the following J
ers using public property or public rights-of-way. federal statutory provisions:
10. Acts or omissions constituting breaches or de- 1. 47 U.S.C. Section 303(v)confers upon the FCC
faults of the agreement, and the applicable penalties, exclusive jurisdiction to regulate the provision of direct-
liquidated damages, and other remedies, including fines to-home satellite services.
or the suspension,revocation,or termination of the agree- 2. Section 602 of the Communications Act states
ment. that a provider of direct-to-home satellite service is ex-
11. Requirements relating to the sale,assignment,or empt from the collection or remittance, or both, of any
transfer of the open video system. tax or fee imposed by any local taxing jurisdiction on
12. Requirements relating to the open video system direct-to-home satellite service.The terms"tax"and"fee"
operator's compliance with and implementation of state are defined by federal statute to mean any local sales tax,
and federal laws,rules,and regulations pertaining to the local use tax, local intangible tax, local income tax,
operation of the open video system. business license tax, utility tax, privilege tax, gross re-
13. Such additional requirements,conditions,terms, ceipts tax,excise tax,franchise fees,local telecommuni-
policies,and procedures as may be mutually agreed upon cations tax, or any other tax, license, or fee that is im-
by
the city and the open video system operator and that posed for the privilege of doing business,regulating, or
will, in the judgment of the city council, best serve the raising revenue for a local taxing jurisdiction. (Ord. 339
public interest and protect the public health,welfare,and § 2 (part), 1998)
safety. (Ord. 339 § 2 (part), 1998)
13.12.310 Video provider—Registration—
Artide IV. Other Telecommunications Customer service standards.
Services and Systems A. Unless the customer protection and customer
service obligations of a video provider, as that term is
13.12.300 Other multichannel video defined in Article V,are specified in a franchise,license,
programming distributors. lease,or similar written agreement with the city,a video
The term"cable system,"as defined in federal law and provider must comply with all applicable provisions of
as set forth in Article V below,does not include a facility the following state statutes:
that serves subscribers without using any public rights-of- 1. The Cable Television and Video Customer Ser-
way.Consequently,the categories of multichannel video vice and Information Act (Government Code Sections
programming distributors identified below are not deemed 53054, et seq.)
to be"cable systems"and are therefore exempt from the 2. The Video Customer Service Act (Government
city's franchise requirements and from certain other local Code Sections 53088, et seq.)
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re ulato provisions authorized by federal law,provided B. All video providers that are operating in the city
g
that their distribution or transmission facilities do not on the effective date of the ordinance codified in this
involve the use of the city's public rights-of-way. chapter, or that intend to operate in the city after the
A. Multichannel multipoint distribution service effective date of said ordinance, must register with the
("MMDS"),also known as"wireless cable,"which typi- city.The registration form must include or be accompa-
cally involves the transmission by an FCC-licensed opera- nied by the following:
tor of numerous broadcast stations from a central location 1. The video provider's name, address, and local
using line-of-sight technology. telephone numbers.
B. Local multipoint distribution service("LIDS"), 2. The names of the officers of the video provider.
another form of over-the-air wireless video service for 3. A copy of the video provider's written policies
which licenses are auctioned by the FCC, and which and procedures relating to customer service standards and
offers videoP rogramming,telephony,and data network- the handling of customer complaints, as required by
ing services. Government Code Sections 53054,et seq.These customer
C. Direct broadcast satellite("DBS"),also referred service standards must include, without limitation, stan-
to as"direct-to-home satellite services," which involves dards regarding the following:
the distribution or broadcasting of programming or servic- a. Installation, disconnection, service and repair
es bysatellite directlyto the subscriber's premises with- obligations, employee identification, and service call
out the use of ground receiving or distribution equipment, response time and scheduling.
except at the subscriber's premises or in the uplink pro- b. Customer telephone and office hours.
3
(Rancho Palos Verdes 11-98) 178
•
III
13.12.310
c. Procedures for billing, charges, refunds, and of antennas that are commonly used in providing or
credits. receiving telecommunications services:
d. Procedures for termination of service. A. Satellite earth station antennas, (also known as
e. Notice of the deletion of a programming service, "satellite dish antennas"), which are parabolic or dish-
the changing of channel assignments, or an increase in shaped antennas or devices that are designed for over-the-
rates.
rates. air reception of radio or television broadcast signals,
f. Complaint procedures and procedures for bill multichannel multipoint distribution service, or direct
dispute resolution. broadcast satellite services.
g.
The video provider's written commitment to B. Amateur radio station antennas, (also known as
distribute annually to the city, and to its employees and "ham radio antennas"), which are typically placed on a
customers,a notice describing the customer service stan- support structure and are used solely for the purpose of
dards specified above in subsections(B)(3)(a)through(f) transmitting and receiving radio signals in connection
of this section.This annual notice must include the report with the noncommercial operation of an amateur radio
of the videoP rovider on its performance in meeting its station in accordance with licenses issued by the FCC.
customer service standards, as required by Government C. Commercial antennas,which are unstaffed facili-
Code Section 53055.2. ties for the transmission or reception of radio,television,
4. Unless a video provider is exempt under federal and communications signals,commonly consisting of an
law from its payment, a registration fee in an amount antenna array, connection cables, a support structure to
established by resolution of the city council to cover the achieve the necessary elevation,and an equipment facility
reasonable costs incurred by the city in reviewing and to house accessory equipment, which may include
cabi-
processingthe registration form. nets,pedestals,shelters,and similar protective structures.
5. Ing addition to the registration fee specified above D. Television antennas, other than satellite dish
in subsection(B)(4)of this section, the written commit- antennas, that are used by the occupant of the property
ment of the video provider to pay to the city, when due, where the antenna is located solely to receive television
all costs and expenses reasonably incurred by the city in signals. (Ord. 339 § 2 (part), 1998)
resolving any disputes between the video provider and its
subscribers, which dispute resolution is mandated by 13.12.330 Telecommunications service
Government Code Section 53088.2(o). provided by telephone corporations.
C. The city council may establish by ordinance a A. The city council finds and determines as follows:
schedule of monetaryP enalties for the material breach by 1. The Federal Telecommunications Act of 1996
a videoP rovider of its obligations under subparagraphs preempts and declares invalid all state rules that restrict
(a)through(n)of Government Code Section 53088.2.As entry or limit competition in both local and long-distance
used herein, the term "material breach" means any sub- telephone service.
stantial and repeated failure to comply with the consumer 2. The California Public Utilities Commission
service standards set forth in Government Code Section ("CPUC")is primarily responsible for the implementation
53088.2.TheP rovisions of that ordinance must be consis- of local telephone competition, and it issues certificates
tent with theP rovisions of Government Code Section of public convenience and necessity to new entrants that
53088.2. The schedule of monetary penalties may also are qualified to provide competitive local telephone
a
impose penalty, as authorized by Government Code exchange services and related telecommunications service,
P P Y
Section 53056(a), for the failure of a video provider to whether using their own facilities or the facilities or
distribute the annual notice required by Government Code services provided by other authorized telephone corpora-
Section 53055.1, which penalty may not exceed five tions.
hundred dollars for each year in which the notice is not 3. Section 234(a) of the California Public Utilities
distributed as required by state statute. (Ord. 339 § 2 Code defines a"telephone corporation"as"every corpo-
(part), 1998) ration or person owning,controlling,operating,or manag-
ing any telephone line for compensation within this
13.12.320 Antennas for telecommunications state."
services. 4. Section 616 of the California Public Utilities
Section 17.76.020 of Chapter 17.76 of Title 17 of this Code provides that a telephone corporation "may con-
Code sets forth the city's regulatory requirements relating demn any property necessary for the construction and
to the siting and construction of the following categories maintenance of its telephone line."
179 (Rancho Palos Verdes 11-98)
•
1111
13.12.330
5. Section 2902 of the California Public Utilities to provide the telecommunications service for which the
Code authorizes rP
municipal corporations to retain their facilities are proposed to be constructed in the city's
P
powers of control to supervise and regulate the relation- public rights-of-way.
ships between a public utility and the general public in b. If the applicant has obtained from the CPUC a
matters affecting the health, convenience, and safety of certificate of public convenience to operate as a"compet-
the general public,including matters such as the use and itive local carrier,"the following additional requirements
repair of public streets by any public utility and the are applicable:
location of the poles, wires, mains, or conduits of any i. As required by Decision No. 95-12-057 of the
public utility on, under, or above any public streets. CPUC,the applicant must establish that it has timely filed
6. Section 7901 of the California Public Utilities with the city a quarterly report that describes the type of
Code authorizes telephone and telegraph corporations to construction and the location of each construction project
construct telephone or telegraph lines along and upon any proposed to be undertaken in the city during the calendar
public road or highway,along or across any of the waters quarter in which the application is filed, which informa-
or lands within this state,and to erect poles,posts,piers, tion is sufficient to enable the city to coordinate multiple
or abatements for supporting the insulators, wires, and projects, as may be necessary.
other necessary fixtures of their lines,in such manner and ii. If the applicant's proposed construction project
at such points as not to incommode the public use of the will extend beyond the utility rights-of-way into undis-
road or highway or interrupt the navigation of the waters. turbed areas or other rights-of-way, the applicant must
7. Section 7901.1 of the California Public Utilities establish that it has filed a petition with the CPUC to
Code confirms the right of municipalities to exercise amend its certificate of public convenience and necessity
reasonable control as to the time, place, and manner in and that the proposed construction project has been sub-
which roads, highways, and waterways are accessed, jected to a full-scale environmental analysis by the
which control must be applied to all entities in an equiva- CPUC, as required by Decision No. 95-12-057 of the
lent manner, and may involve the imposition of fees. CPUC.
8. Section 50030 of the California Government iii. The applicant must inform the city whether its
Code provides that any permit fee imposed by a city for proposed construction project will be subject to any of
the placement, installation, repair, or upgrading of tele- the mitigation measures specified in the negative decla-
communications facilities, such as lines,poles,or anten- ration ["Competitive Local Carriers"(CLCs)Projects for
nas, by a telephone corporation that has obtained all Local Exchange Communication Service throughout
required authorizations from the CPUC and the FCC to California] or to the mitigation monitoring plan adopted
provide telecommunications services,must not exceed the in connection with Decision No.95-12-057 of the CPUC.
reasonable costs of providing the service for which the The city's issuance of a ministerial permit will be condi-
fee is charged, and must not be levied for general reve- tioned upon the applicant's compliance with all applicable
nue purposes. mitigation measures and monitoring requirements im-
B. In recognition of and in compliance with the posed by the CPUC upon telephone corporations that are
statutory authorizations and requirements set forth above designated as "competitive local carriers."
in subsection A of this section, the following regulatory C. In recognition of the fact that numerous excava-
provisions are applicable to a telephone corporation that tions in the public rights-of-way diminish the useful life
desires to provide telecommunications service by means of the surface pavement, and for the purpose of mitigat-
of facilities that are proposed to be constructed within the ing the adverse impacts of numerous excavations on the
city's public rights-of-way: quality and longevity of public street maintenance within
1. The telephone corporation must apply for and the city,the following policies and procedures are adopt-
obtain, as may be applicable, an excavation permit, an ed:
encroachment permit, or a building permit ("ministerial 1. The city manager is directed to ensure that all
permit"). public utilities,including telephone corporations,comply
2. In addition to the information required by this with all local design, construction, maintenance and
Code in connection with an application for a ministerial safety standards that are contained within, or are related
permit, a telephone corporation must submit to the city to,a ministerial permit that authorizes the construction of
the following supplemental information: facilities within the public rights-of-way.
a. A copy of the certificate of public convenience 2. The city manager is directed to coordinate the
and necessity issued by the CPUC to the applicant, and construction and installation of facilities by public utili-
a copy of the CPUC decision that authorizes the applicant ties, including telephone corporations, in order to mini-
(Rancho Palos Verdes 11-98) 180
• , 013.12.330
mize the number of excavations in the public rights-of- b. A facility that serves subscribers without using
way.In this regard,based upon projected plans for street any public right-of-way;
construction or renovationP rojects, the city manager is c. A facility of a common carrier that is subject,in
authorized to establish on aq uarterly basis one or more whole or in part, to the provisions of Title II of the
construction timeP eriods or"windows" for the installa- Telecommunications Act of 1996,except that such facili-
tion of facilities within theP ublic rights-of-way. Tele- ty will be considered a cable system (other than for
phone corporations and other public utilities that submit purposes specified in Section 621(c) of the 1984 Cable
rP
applications for ministerialpermits ermits to construct facilities Act)to the extent such facility is used in the transmission
after aP redetermined date may be required to delay such of video programming directly to subscribers,unless the
construction until the next quarterly "window" that is extent of such use is solely to provide interactive on-
established by the city. demand services;
D. Chapter 9.04 of Title 9 of this Code sets forth the d. An open video system that complies with Section
city'sregulatory
re ulato requirements that apply to the installa- 653 of Title VI of the Telecommunications Act of 1996;
tion and operation of burglar alarm devices within the or
(Ord. 339 2 (part), 1998) e. Any facilities of an electric utility that are used
city. §
solely for operating its electric utility system.
Article V. Definitions. "Cable system operator" means any person or group
of persons:
13.12.400 Defined terms and phrases. a. Who provides cable service over a cable system
A. For theP ruP oses of this chapter, the words, and directly or through one or more affiliates owns a
terms, P hrases, and their derivations set forth in this significant interest in that cable system; or
articlemeanings have the meanin s set forth below.Words used in b. Who otherwise controls or is responsible for,
the present tense include the future tense, and words in through any arrangement,the management and operation
the singular include the plural number. of that cable system.
"Affiliate"means,when used in relation to any person, "City" means the city of Rancho Palos Verdes as
anotherperson erson who owns or controls, is owned or con- represented by its city council or by any delegate acting
trolled by, or is under common ownership or control within the scope of its delegated authority.
with, such person. For purposes of this definition, the "i CFR Section_" means the Code of Federal
"own" P � equiv- Regulations. Thus, the citation of"47 CFR 80.1" refers
termmeans to own an equity interest,or its g
alent, of percent or more. to Title 47, part 80, section 1, of the Code of Federal
ten
"Cable service" means the one-way transmission to Regulations.
subscribers of video programming,or other programming "Communications Act" means the Communications
P g
services, and subscriber interaction, if any, that is re- Act of 1934(47 U.S.C.Sections 153,et seq.),as amend-
,
quired
for the selection or use of that video programming ed by the Cable Communications Policy Act of 1984,the
or other programming service. For the purposes of this Cable Television Consumer Protection and Competition
n "videoprogramming" means programming Act of 1992, and the Telecommunications Act of 1996.
definition,
by,orgenerallyconsidered comparable to pro- "FCC" or "Federal.Communications Commission"
provided
gramming provided by,a television broadcast station;and means the federal administrative agency, or any lawful
"other programming service" means information that a successor,that is authorized toregulate telecommunica-
cable system operator
g
erator makes available to all subscribers tions services and telecommunications service providers
generally. on a national level.
"Cable system,""or"cable communications system"or "Franchise" means an initial authorization, or the
ystem
y
"cable
television system,"means a facility,consisting of renewal of an initial authorization, issued by the city
as
set of closed transmission paths and associated signal council, whether such authorization is designated as a
generation, reception,tion and control equipment that is de- franchise,permit,license,resolution,contract,certificate,
signed to provide cable service that includes video pro- agreement,or otherwise,that authorizes the construction
g
gramming and that is provided to multiple subscribers or operation of a cable system.
gramming
a community. The term "cable system" does not "Franchise fee" means any fee or assessment of any
include: kind that is authorized by state or federal law to be im-
facilitythat serves onlyto retransmit the tele- posed by the city on a grantee as compensation in the
a. A
vision signals of one or more television broadcast sta- nature of rent for the grantee's use of the public rights-of-
tions;
way. The term "franchise fee" does not include:
181 (Rancho Palos Verdes 11-98)
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13.12.400
a. Any tax,fee,or assessment of general applicabil- open video system and directly or through one or more
ity (including any such tax, fee, or assessment imposed affiliates, owns a significant interest in that open video
on both utilities and cable operators or their services); system, or otherwise controls or is responsible for the
b. Capital costs that are required by the franchise management and operation of that open video system.
to be incurred by grantee for public, educational, or "Person"means an individual,partnership,association,
governmental access facilities; joint stock company, trust,corporation,or governmental
c. Costs or charges that are incidental to the award entity.
or enforcement of the franchise, including payments for "Public, educational or government access facilities"
bonds,security funds,letters of credit,insurance,indem- or"PEG access facilities,"means the total of the follow-
nification, penalties, or liquidated damages; or ing:
d. Any fee imposed under Title 17, United States a. Channel capacity designated for noncommercial
Code. public, educational, or government use; and
"Franchise service area"or"service area" means the b. Facilities and equipment for the use of that chan-
entire geographic area of the city as it is now constituted, nel capacity.
or may in the future be constituted, unless otherwise "Subscriber"or"customer"or"consumer"means any
specified in the ordinance or resolution granting a fran- person who, for any purpose, subscribes to the services
chise, or in an franchise agreement. provided by a multichannel video programmingzli-stribu-
"Grantee" means any person that is awarded a fran- tor and who pays the charges for those services.
chise in accordance with this chapter, and that person's "Street"or"public way"means each of the following
lawful successor, transferee, or assignee. that has been dedicated to the public and maintained
"Gross annual cable service revenues" means the under public authority or by others and is located within
annual gross revenues received by a grantee from all the city limits: streets, roadways, highways, avenues,
operations of its cable television system within the city, lanes, alleys, sidewalks, easements, rights-of-way, and
excluding uncollected bad debt, refundable deposits, similar public property that the city from time to time
rebates or credits,and further excluding any sales,excise, authorizes to be included within the definition of a street.
or other taxes or charges that are required to be collected "Telecommunications" means the transmission, be-
for direct pass-through to the local, state or federal gov- tween or among points specified by the user,of informa-
ernment.Revenues identified and collected from subscrib- tion of the user's choosing, without change in the form
ers as franchise fees may not be excluded from a or content of the information as sent and received.
grantee's gross annual cable service revenues. "Telecommunications equipment" means equipment,
"Gross annual telecommunications service revenues" other than customer premises equipment,used by a tele-
means the annual revenues received by a grantee from the communications service provider to provide telecommuni-
operation of a cable system to provide telecommunica- cations service,including software that is integral to that
tions services other than video programming services. equipment.
"Multichannel video programming distributor" or "Telecommunications service" means the offering of
"video programming distributor"means a person such as, telecommunications directly to the public for a fee, or to
but not limited to, a cable system operator, a multichan- such classes of users as to be effectively available direct-
nel multipoint distribution service, a direct broadcast ly to the public,regardless of the equipment or facilities
satellite service, or a television receive-only satellite that are used.
program distributor,who makes available multiple chan- "Telecommunications service provider" means any
nels of video programming for purchase by subscribers provider of telecommunications service.
or customers.
"=U.S.C. Section=' means the United States
"Open video system"means a facility consisting of a Code. Thus, the citation of "47 U.S.C. Section 153"
set of transmission paths and associated signal generation, refers to Title 47,section 153,of the United States Code.
reception, and control equipment that is designed to "Video programming provider" means any person or
provide cable service,including video programming,and group of persons who has the right under the federal
that is provided to multiple subscribers within the city, copyright laws to select and to contract for the carriage
provided that the FCC has certified that such system of specific video programming on an open video system.
complies with 47 CFR Section 1500 et seq., entitled "Video provider" means any person, company, or
"Open Video Systems." service that provides
one ormore channels of video
"Open video system operator" means any person or programming to a residence, including a home, condo-
group of persons who provides cable service over an minium, apartment, or mobilehome, where some fee is
(Rancho Palos Verdes 11-98) 182
4110
13.12.400
paid for that service, whether directly or as included in communications service provider;provided,however,that
dues or rental charges,and whether or not public rights- the city must give the affected telecommunications ser-
of-way
of-way are used in the delivery of that video program- vice provider thirty days written notice of that change
ming. A "video provider" includes, without limitation, before requiring compliance with that provision,or such
providers of cable television service, master antenna longer period of time as may be reasonably required for
television, satellite master antenna television, direct the telecommunications service provider to comply with
broadcast satellite, multipoint distribution services, and that provision. (Ord. 339 § 2 (part), 1998)
other providers of video programming, whatever their
technology.
B. Unless otherwise expressly stated,words,terms,
and phrases not defined in this article will be given their
meaning as used in Title 47 of the United States Code,
as amended,and,if not defined in that Code,their mean-
ing as used in Title 47 of the Code of Federal Regula-
tions. (Ord. 339 § 2 (part), 1998)
Article VI.Violations—Severability
13.12.500 Violations—Enforcement.
A. Any person who wilfully violates any provision
of this chapter is guilty of a misdemeanor and is punish-
able as provided for in Chapter 1.08 of Title 1 of this
Code.
B. The misdemeanor penalty specified above in
subsection A of this section is not applicable to a viola-
tion of any provision of this chapter for which another
sanction or penalty may be imposed under any franchise,
license, lease, or similar written agreement between the
city and a multichannel video programming distributor or
other telecommunications service provider.
C. The city may initiate a civil action in any court
of competent jurisdiction to enjoin any violation of this
chapter. (Ord. 339 § 2 (part), 1998)
13.12.510 Severability.
If any provision of this chapter is determined by any
court of competent jurisdiction,or by any federal or state
agency having jurisdiction over its subject matter, to be
invalid and in conflict with any paramount federal or
state law or regulation now or hereafter in effect, or is
determined by that court or agency to require modifica-
tion in order to conform to the requirements of that
paramount law or regulation, then that provision will be
deemed a separate,distinct,and independent part of this
chapter,and such determination will not affect the validi-
ty and enforceability of any other provisions. If that
paramount federal or state law or regulation is subse-
quently repealed or amended so that the provision of this
chapter determined to be invalid or subject to modifica-
tion is no longer in conflict with that law or regulation,
then that provision will again become effective and will
thereafter be binding on the city and any affected tele-
183 (Rancho Palos Verdes 11-98)
411
411
EXHIBIT B
OWNERSHIP
The ownership of CoxCom, Inc. , a Delaware corporation,
is described in the attached schedule.
R6876\0001\98017.5 B_1 10/17/00
1.rux L+omnnunicatiumb, 1116.
Page l of 6
As of 3/30/00
COX ENTERPRISES,INC.
LEGEND
Corporation 1 Cox Investment Company,Inc. * Stock Ownership-
1 Cox Holdings,Inc.-69%(31•)
**Cox Interactive Media•51%Member
HOLDINGS,INC. Cox DNS,Inc.•s%(i/-) CoxCom.Inc.•49%Member
( �iVISiOn COX Public Shareholders-26X(4-)
—..............------.....n.—............—...........
+Cox Interactive Media•St%Member;
partnership> Cox DNS,Inc. Cox Communications Hampton Roads,L.L.C.•49%Member
(formerly Cox Discovery,Inc.)
( ( • ++Cox Interactive Media•51%Member;
d/b/a
COX COMMUNICATIONS,INC. * Cox Communications Omaha,L.L.C.•49%Member
4
CoxCom,Inc.
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(in Virginia only)
411
EXHIBIT C
GRANTEE ' S TECHNOLOGY IMPLEMENTATION PLAN
I . DESCRIPTION OF GRANTEE' S UPGRADE OF THE CABLE SYSTEM
A. Grantee will augment its existing hybrid coaxial
cable and fiber optic infrastructure in the franchise service
area so that, upon completion of the upgrade, every residence
will have available two-way interactive capability that will
provide high-speed Internet access and accommodate other high-
speed, high-bandwidth cable and non-cable services that may be
offered by the Grantee.
B. The fiber optic system designed by Grantee is
referred to in the cable industry as a "Star System. " This
method of fiber optic cable deployment creates small service
areas, referred to as "fiber nodes, " consisting of approximately
650 homes. Approximately 40 fiber nodes will exist on the
Grantee ' s cable system, eliminating a number of amplifiers in
cascade (series) , power supplies, and mechanical connectors,
thereby making the cable system more reliable by reducing the
number of variables that can cause interruptions . When
completed, the cable system serving each fiber node will
typically have no more than five amplifiers and two line-
extenders in cascade, and it will be bi-directional .
C. Grantee will upgrade each of the fiber nodes to
provide for the delivery of activated signals at forward
frequencies up to a minimum bandwidth of 750-megahertz (MHz) .
The upgraded cable system will be engineered to provide for
simultaneous downstream delivery of not less than 78 analog video
channels (occupying the spectrum from 50 MHz to 550 MHz) , plus an
additional 200 MHz of spectrum (550 MHz to 750 MHz) allocated for
the transmission of high-speed digital services . The entire
minimum bandwidth will be activated upon completion of the
upgrade, but programming may not necessarily occur until
warranted by service demand. All passives used in the upgrade
will be one GigaHertz .
D. As part of the upgrade of the cable system, Grantee
will upgrade its existing physical plant to provide two-way
interactive capability that will facilitate high-speed Internet
access and accommodate other high-speed, high-bandwidth cable and
non-cable services that may be offered by the Grantee.
R6876\0001\98017.5 c-i 10/17/00
E. Grantee' s upgrade of the cable system will be in
compliance with all FCC technical standards, as they now exist or
may later be amended or supplemented.
F. Grantee ' s upgrade of the cable system will be in
compliance with all applicable construction standards that are
set forth in this Agreement, including those relating to the
undergrounding of facilities.
G. Upon completion of the system upgrade, all power
supplies within the franchise service area will be upgraded to be
able to sustain system reliability for a minimum of four hours
after the loss of commercial power.
H. Upon completion of the system upgrade, each power
supply will be on centralized status monitoring. The system of
status monitoring will automatically alert Grantee to existing or
pending service interruptions .
I . Upon completion of the upgrade, the cable system is
anticipated to provide the following benefits to subscribers
within the franchise service area: greater system reliability;
expanded channel capacity; enhanced picture quality; and a fiber
optic network capable of supporting new services and future
technologies .
II . CONSTRUCTION OF THE CABLE SYSTEM UPGRADE
A. Grantee has commenced construction of the cable
system upgrade as of the effective date of this Agreement.
Grantee will complete the upgrade in its entirety, throughout the
franchise service area, not later than December 31, 2000 .
B. Grantee ' s upgrade of the cable system will be in
compliance with all FCC technical standards, as they now exist or
may later be amended or supplemented.
C. Grantee' s upgrade of the cable system will be in
compliance with all applicable construction standards that are
set forth in this Agreement, including those relating to the
undergrounding of network facilities.
R6876\0001\98017.5 c_2 10/17/00
411
EXHIBIT D
CONSUMER PROTECTION STANDARDS
1 . Grantee ' s Notifications to Subscribers .
Grantee will provide to all new subscribers and
annually to existing subscribers, notifications that are
substantially similar to those attached as Schedule 1 to this
Exhibit D.
2 . General Standards for Consumer Service and
Protection.
Grantee must meet or exceed all applicable consumer
service standards that are customary in the cable television
industry and that are recommended or required by the following:
(a) Federal statutes, and the rules, regulations,
and orders of the Federal Communications Commission, including
the following:
(i) The provisions of Section 76. 309 (c) of
Title 47 of the Code of Federal Regulations, as
it now exists or may later be amended, a copy of
which is attached as Schedule 2 to this
Exhibit D; provided, however, that strict
compliance with these provisions will not be
required during such time as the upgrade is
under construction, as provided for in
Exhibit C.
(ii) The provisions of Section 76. 630 of Title
47 of the Code of Federal Regulations, as it now
exists or may later be amended, a copy of which
is attached as Schedule 3 to this Exhibit D.
(iii) The provisions of Section 551 of Title 47,
United States Code, as it now exists or may
later be amended, a copy of which is attached as
Schedule 4 to this Exhibit D.
(b) The provisions of California Government Code
Sections 53054, et seq. , entitled the "Cable Television and Video
Provider Customer Service and Information Act, a copy of which is
attached as Schedule 5 to this Exhibit D. "
R6876\0001\98017.5 D-1 10/17/00
410
410
(c) The provisions of California Government Code
Section 53088, et seq. , entitled the "Video Customer Service Act,
a copy of which is attached as Schedule 6 to this Exhibit D. "
(d) The provisions of California Civil Code Section
1722 (b) (1) - (6) relating to service or repair transactions between
cable television companies and their subscribers, a copy of which
is attached as Schedule 7 to this Exhibit D.
(e) Grantor' s additional requirements for the
protection of subscribers that impose the following obligations
on the Grantor:
(i) The posting of information on the reader-
board regarding the procedures for filing a complaint .
(ii) Increased advertising for the "limited
basic" package that is available for senior citizens and low-
income subscribers .
(iii) Providing public education regarding
programming issues and "must carry" stations.
(iv) Ensuring that when a message is taken, or
the Grantee ' s representative is unable to answer the customer' s
questions during the initial contact, the customer will be called
back within 24 hours after the call is received.
(v) Ensuring that changes to the Acceptable Use
Policy for Cox@Home, or any successor high-speed Internet service
provided by Grantee, be included in the subscriber' s bill a
minimum of 30 days in advance of the change, rather than only
being posted on a website.
(vi) Advertising all-inclusive pricing, which
includes the franchise fee.
(vii) Advertising the "privacy flag" option that
is available to subscribers .
(viii) Ensuring that when a request for service
is received, appointments will be made within 24 hours for a
service outage, within three business days for service-related
problems of existing customers and within five business days for
installations . These standards will be met no less than ninety
percent of the time under normal operating conditions, measured
on a quarterly basis .
R6876\0001\98017.5 D-2 10/17/00
4i1
Unless preempted by paramount federal law, the
consumer service standards referenced above that are the most
stringent, and that afford the greatest degree of protection to
consumers, will apply to Grantee ' s operations and activities in
the franchise service area.
R6876\0001\98017.5 D-3 10/17/00
410
46
SCHEDULE 1
SAMPLE OF GRANTEE' S NOTIFICATION TO NEW SUBSCRIBERS AND
ANNUAL NOTIFICATION TO EXISTING SUBSCRIBERS
C�3
„,.,
Communications
` „,
000 _ �': .; a
"v„.
CUSTOMER
INFORMATION
• Notification of Customer Rights
Under the Cable Communications
Policy Act of 1984
• Notification of Privacy Rights of
Telephone Customers
• Television Equipment Compatibility
Notice
• Television Picture Quality
Resolution Notification
Cox Communications
43 Peninsula Center
Rolling Hills Estates, CA 90274
(310) 377-1800
Mon & Sat 8:30am - 5pm
Tue-Fri 8:30am - 6pm
NOTIFICATION OF CUSTOMER RIGHT
UNDER THE CABLE COMMUNICATIONS
POLICY ACT OF 1984
Dear Cable and/or Internet Customer:
As a customer of Cox Communications ("Cox" or "we") sub-
,
e scribing to cable television services, you are entitled under the Cable
Communications Policy Act of 1984 (the "Cable Act") to know the
limitations imposed upon cable operators in the collection and disclo-
sure of personally identifiable customer information, the type of per-
sonally identifiable information collected, how such information is
used, under what conditions it is disclosed,the period during which it
is maintained and the rights of customers concerning access to such
.j information and its disclosure. Cox also applies the information poli-
I. cies of this law to Internet access services to which you subscribe.
The law and its policies relate only to personally identifiable
information. It also applies only to information that you have furnished
to us or certain information that is transmitted over our cable facilities.
Some of our services permit you to direct communications outside of
our system and this law does not apply to these communications. For
example, this law does, not apply to information that you have
directed to third parties over the facilities of on-line providers or over
11 the Internet.
1. Collection and Use. To better provide you with reliable,
high-caliber service, Cox keeps regular business records that contain
the following types of personally identifiable information: name, ser-
'y vice address, billing address, home and/or other telephone num-
ber(s), social security number or driver's license number, premium
service subscription information (including the movies that you have
ii ordered on pay-per-view channels), and customer correspondence
II and communications records. We also maintain information concern-
ing billing, payment, security deposits and maintenance and repairs,
as well as other service-related information. For Internet access ser-
i"
vice, the cable system may automatically collect or facilitate the col-
lection of information on customer use of the service, including infor-
mation on the choices that a customer makes along the range of
services offered, when a customer visits a site, and how long he or
111 she visits the site.
We collect, maintain and use this information, generally to con-
duct business activities related to providing you with cable television,
Internet access service, and other services, and to help us detect theft
of service. Our detailed business records are used, and personal
information contained in them disclosed, generally to help ensure
you are being properly billed for the services you receive,to send you
pertinent information regarding your cable services, to improve the
quality of the services we provide to you, and for other service-related
11 activities. More specifically,this information is used for financial, legal,
tax and accounting purposes, to sell, install, maintain and disconnect
services, to bill and collect charges for the services to which you
subscribe,to gauge customer satisfaction and improve programming
and marketing plans, for customer mailings related to the services we
!, offer, and to answer questions from you concerning your bill and
{.vservices provided to you. We take all reasonable
precautions den-
tify you or your your
on authorized representative as the inquirer q
account and to otherwise prevent unauthorized access to your
account information.
Cox will not use anyelectronic device attached to the cable
television wires for theur ose of recording, transmitting, or observ-
ing p
ing any events or listening, recording, or monitoring any conversa-
tions which take place within your residence, work place, or place of
business without obtaining your express written or electronic
consent.
2. Disclosure. Cox considers the personally identifiable infor-
mation contained in our business records to be confidential and
will not disclose it without your prior written or electronic consent
as
exceptprovided in this notice. We maydisclose d sclose this information,
however, if the disclosure is necessaryfor rendering or conducting a
related
legitimate business activity '
gto a cable service, Internet access
service or other service Cox provides to you. Consequently, we may,
;f. for example, from time to time disclose information to our employees,
p oyees,
attorneys, outside auditors and accountants as required, program
I guide distributors, collection agencies, construction and installation
contractors, consumer and market research companies, software p
vendors, and affiliated providers of Internet access services or
Internet content services.
Cox will not make personallyidentifiable information about you
. .
available to government entities unless we are required to do so by
court order, and we will notify you of the court's order before disclos-
ing the information. Before the court will order us to disclose any
personally identifiable information, the government entity seeking the
information must offer clear and convincing evidence that the subject
11 of the information is reasonably suspected of engagingin criminal
activity and that the information sought would be material evidence in
the case. If a government entity is seeking personally identifiable
information about you under these circumstances, the court must
111 afford you the opportunityto appear and contest the government
II . pp
entity's claim.
In the event you are a customer of Cox's p High Speed Internet
Access Service, you have expressly granted permission to Cox to
disclose, without prior notice toou, information relatingto
y your
111 account such as the name and address associated with a given IP
address or e-mail account in response to:
11 (a) a subpoena issued in a civil or criminal investigation or
11 g
litigation,
(b) a civil investigative demand issued by governmenty,a entit •
(c) a court order;
(d) a law enforcement agency request based on emergency
g Y q 9 Y
conditions such as an imminent threat to life and limb or substantial
11 damage or destruction of property. Exam les of such emergency
p g Y
1.1 situations would include bomb threats, kidnappings, extortion
threats, identifying the service address of a suicidal party, and threats
. . p Y
to critical governmental or private sector computer systems and
databases.
•
While we do not currentlysell lists containingthe names and
addresses of our customers or otherwise release customer lists to
third parties not facilitating our services to you, the law permits Cox to
disclose names and addresses only of its customers to charities,
marketing organizations or other businesses for use in mailing lists,
telephone or mail solicitation, market research or other uses. You
have the right to limit or prevent your name and address from being
included on such a list. If you wish to be excluded from any such list,
you must notify us in writing at the address listed on the front cover of
this notice.
3. Retention. Cox maintains the information in our regular busi-
ness records as long as you are a customer and for a longer time if
necessary for our business purposes. Unless a court has asked us for
access to this information, we will destroy it once it is no longer
necessary for our business purposes.
4. Subscriber Rights. Cox will make available for your examina-
tion any personally identifiable information about you contained in
our business records within a reasonable period of time, and in no
event later than ten (10) days after we receive your written request to
examine the information. You shall be responsible for the cost of
copying any documents you request. We will make this information
available during normal business hours at the Cox office listed on the
front cover of this notice, and will give you an opportunity to correct
any error in the information we maintain. Section 631 of the Cable Act
gives you specific rights if these provisions are violated. If you believe
f that a violation of these provisions of the Cable Act has caused you
harm, you may bring a civil action for damages in United States
District Court.
NOTIFICATION OF PRIVACY RIGHTS
OF TELEPHONE CUSTOMERS
Dear Telephone Customer:
Cox also has a policy to protect our telephone customer's net-
work information as well as their identity if they request to be unlisted,
unpublished or request to have their identity not disclosed. Cox does
F not provide the identity of any customer who requests a
non-published number and does not sell any of its telephone cus-
tomer information. Cox also adheres to the Federal Communications
Commissions rules and provisions as set forth in the 1996 Telecom-
munications Act which pertains to the protection of customer proprie-
tary information, information such as our customer's call patterns,
service features, price plans, spending profiles, call destinations; i.e.
information on how our customer's use our telephone service. Cox
also applies the information policies described above in the notice to
cable and Internet customers, where consistent with the telephone
policy described in this notice.
Cox prides itself on its ability to provide its customers a high-level
advanced telecommunication service, including local calling, long
distance, high-speed data and video service. As such, Cox will
access your telephone service information to identify and notify you
of new service offerings when they become available or when we
determine new pricing plans, which may save you money. These
0
r
existing or new services maybe offered by affiliated compani f Cox
} yet this information will not be disclosed to third parties outside of
Cox, except as otherwise required by law. If you prefer that Cox not
s: p
access such information you may either call or write Cox at the num-
,
address listed above. Otherwise, your consent will enable
ber and Cox to use your information and your decision will remain in effect
until you notify Cox that you wish to either revoke or change your
existingconsent. Your decision on whether to provide consent to Cox
will in no way affect the services you currently receive.
Y.
f_
i{'
r:
TELEVISION EQUIPMENT COMPATIBILITY
{ NOTICE
;r,
f
Q: Do I need a cable converter and where can I get one?
A: Some models of TVs and VCRs especially older TV sets that are
not "cable ready"—may not be able to receive all of the channels
ma
offered by system cable s stem when connected directly to the cable
.
s stemIf your TV or VCR is not able to receive all of the channels
Y
offered by system cable s stem when connected directly to the cable
system, you can obtain a set-top channel converter or other equip-
Y
ment from Cox or a retail store at a nominal charge to enable your TV
and VCR to receive all cable channels. Please note that some Cox
premium or Pay-Per-View channels may not be available with a retail
receiver. Also, Y ou should know that receivers with descrambling
units are illegal to .sell or use unless authorized by Cox.
Q: Will I need additional equipment?
r.
A: Where service is received through a set-top channel converter,
t you may not be e able to use special features and functions of your TV
and VCR, including,in ludin but not limited to, features that allow you to: view
a program on one channel while simultaneously recording a program
on another channel; record two or more consecutive programs that
appear on different channels; and, use advanced picture generation
and display features such as "Picture-in-Picture" and channel review.
Cox may be able to resolve these issues through the use of an
additional converter or other equipment which is available for lease
upon request.
Q: Where can Ig et a remote control?
A. Remote control units are compatible that with set-top channel
otherterminal equipment ma be obtained from Cox or
converters or ,Y .
from sources other than Cox Communications, such as retail outlets.
A list of compatible remote control models is enclosed. You are
encouraged to contact Cox Communications to inquire about
g
whether a particular remote control unit would be compatible with
r
your equipment. Please note that customer owned remote control
h
units maynot be functional if Cox Communications changes the
'p:
set-top channel converter or other terminal devices.
COMPATIBLE TELEVISION •
REMOTE CONTROL MODELS
'
Manufacturer Model Numbers
200EX
Fox Fox 400EX Gemini Q40URC2060
One for Al 3 URC2086
One for Al 4 URC2001
One for Al 5 URC4050
One for Al 6 URC5050
One for Al 8 URC6885
One for Al VCR Pro RDU-300
RCA 3 RDU-400
RCA 4 RCA 5 RDU-100
K86-0
US Electronics RMV-10A
Sony RMV-11
Sony
Radio Shack VCR Pro 15-190715-1905
Radio Shack 6 in 1 15-1908
Radio Shack 5 in 1
Radio Shack 4 in 1 with Light 15-1911
Radio Shack 4 in 1 15-1909
Radio Shack 3 in 1 15-1910
G.E. Universal GEU401
Memorex AV6
Magnavox Lite 3
Easy 3 3 in 1
Easy 4 4 in 1
Easy 5 5 in 1
Easy 6 6 in 1
Control Tower + VCR+
Uniwand Big Easy URC4677
Gemstar Development VCR+
TELEVISION PICTURE QUALITY
RESOLUTION NOTIFICATION
Q: What do I do if I have a poor quality picture on my N?
A: Upon experiencing problems with the quality of television signals
that you receive, you should call the cable company at the telephone
number listed on the front cover of this notice. A fully-trained Cus-
tomer Service Representative will do all possible to resolve your
problem over the telephone. If this cannot be done, an appointment
will be established to have a skilled technician come to your home in
order to resolve your reception problem. If, in your opinion, the ser-
vice technician fails to correct the reception problem, you should call
us again and we will review the actions taken. Should we continue to
be unable to resolve the problem to yoursatisfaction,
wecannot will
the
sft� we
you of our determination, and the reasons
problem.
Q: What if Cox cannot resolve my problem?
A: Cox Communications serves multiple franchised
areas.
contact the
ou
believe Cox has not properly resolved your issue, please
applicable franchise authority at the address and telephone number
listed on your monthly cable bill.
L251
111
411
SCHEDULE 2
PROVISIONS OF SECTION 76. 309 (c) OF TITLE 47
OF THE CODE OF FEDERAL REGULATIONS
"CONSUMER SERVICE OBLIGATIONS"
•
. --. •
_ •
•-•_ ...:
• ..
ill .
CONSUMER SERVICE STANDARDS
• ENDORSED BY
NATIONAL CABLE TELEVISION ASSOCIATION
• AS SET FORTH IN -
SECTION 76.309 (a) OF TITLE 47 OF THE
CODE OF FEDERAL REGULATIONS
deral Communlcdflons Commission §76.309
•
1.302 aquired recordkeeping fo . tains for the ordinary collection of eu
must-cam►p scriber. charges,c.resolution• of •-• •
complaints, and other b•:� •:.:
a) Effective Jrine 17, 1993, the opo scriber complaints,
at any accessible place in the ••m- .
• of every cable television �s� = ' munity served by -the.system. • ••t(s) .
ill maintain for public inspeotio• a (such as a public regi6try.for, •oou- .
s con a list of all broad•_ =t menta or an attorney's.office The
evasion stations carried by its =ys-
n in.fulfillment of the mus •, public inspection file shall be a•= ;ble
uirements pursuant to §76.56. uch for public inspection.at any t •e dur-
ashall include the call sign,'c• u- Ing regular business hours. -
or of license,broadcast ahanne num- (c)The records specified in • : : ph
cable channel number, and in the (a) of this section shall be : a ed for
se of a noncommercial edu••:tional the period specified in§§76. ,76.221(f),
)adcast station,whether tha, station 76.79, 76.225(c), 76.601(0), , -d 76.601(e),
s carried by the cable a•:tern on respectively. of
.rch 29,1990. (d) Reproduction of recoCopies
b) The operator of every •:ble tele- any material in the pu•• 0 inspection
ion system shall maintai• for public file shall be available f r machine re-
pection the designation : •d location production upon rogue; made in per-
Its principal headend. son, provided the 'questing party
0 c) Such records must •; maintained shall pay the reasona•le cost of repro-
accordance with the rovisions of duction. Requests t'• machine copies
;.305(b). shall be fulfilled at : location.specified
d) Upon written req =:t from any by the system ope•:tor, within a rea-
vson, a cable operator is required to sonable period of time, which. in no
wide the list of sign• s specified in event shall be to :er than seven.days.
mgraph(a)of this se tion in writing The system ope : •r is not require'l to
;hin '30 days of rec ipt of such re- honor requests : •e by mail but may •
sat. do so if it choos s. •
FR 17364.Apr.2,p93 (Secs.2.3.4.5. 11,303.307,•308.309.316.817.
• 48 Stat., as Aided, 1064..1065. 1066, 1068.
5.305 •Records to be maintained lo- 1081.1082,1083. 084.1085,1088.1089;(47 U.S.C.
cally b cable - stem operators for 165.163,154.1• .301.303.907.308.809.815.817))
ublic ti• • as amended at 40 P P� 39 FR 29186. ug.14. 1974,
.)Records to be •intained.The oper- FR 25024,J •e 12,1975; 42 FR 19349.Apr.13.
ir of every ca• e television system 1977; 51 FR i y 1. July 22, 1986;16 FR 19617.
ring 1,000 or •ore subscribers shall Apr.29. 1** ;57 FR 11001.Apr.1, 1992;68 FR
Intain for.p 'lie inspection a file 7993.Feb. 1. 1993;69 FR 67103.Deo.28.1994]
staining a co.y of all records which •
' required to •; kept by §76.207 (po- 176.307 System Inspection.
.cal file); 76 •i+ (f) (sponsorship Iden- ^' c:,:paratwr ,;f' a cable television
.cations); 7:.79 (EEO'records avail- orate shall make the system,Its pub-
o for pu• o,inspection); 76.225(c) lio nspection file (if required by
um
nerical :cords for children's pro- 176. ). and its records of subscribers
. mining); 6.601(o) (proof-of-perform- av lable for inspection upon request
se test • ta); 76.601(6) (signal leak- by any authorized representative of the
-s logs : •d repair records) and C mnaission at any reasonable hours .
.701(h)(r-cords for leased access). .
l)A re .rd shall be kept of eFR 19349,Apr.13,1977]
ach test
I actio tion'of the Emeigency Alert ? � Customerservice ob'lig�i'ti° '•
item r ) procedures pursuant 'to � .•
s req =ment of part;11 of this chap- (a) A cable franchise authority may
and he EAS Operating.Handbook. enforce the customer service standards
• .ecoids shall be kept for three set-forth in paragraph (0) of-this seo-
• • - : tion against cable operators.The&an-
. ) • -;ervedj •_• • : - • chile authority must.provide affected
) ••••tion of records. The public in- cable operators•ninety (90) days:Writ-
on file-shall•be maintained at the ten notice of its intent to enforce the
which the system operator main- standards. . •
' i . - • 511
I
- i 0
" §76.309
47 CFR Ch.I(10-1-96 Edition)
. Nothingin this rule should be (iii)The operator will not be required
(b)
construed to prevent or prohibit: to acquire equipment or perform sur-
(1) A franchising authority and a Veys to measure compliance with the
• cable operator
from agreeing to cus- telephone answering standards above tomer service requirements that ex- unless an historical record of oom-
• ceed the standards set forth is pars- plaints indicates a clear failure to com-
ply.
graph(a)of this section; (iv) Under normal operating condi-
(2) A chasing authority from en- tions, the customer will receive a busy
• forcing, through the end of the lran• s:rnal low three(3)percent ofthe
.`_ #� -_ �_ •
abase term. 1.��e��-�of� }amer serv-.:�_::`��_�_ time.
ice requirements that exceed the stand- (v) Customer service center and bill
arils set forth in paragraph (a) of this payment locations will be.open at least
section and are contained in current during normal business hours and will.
franchise agreements; be conveniently located.
(3) Any State or any franchising au- (2)Installations, outages and service
thority from enacting or enforcing any calls. Under normal operating condi-
consumer protection law, to the extent tions,each of the following four stand-
not specifically preempted herein;or ards will be met no less than ninety
(4)The establishment or enforcement five (95) percent of the time measured
of any State or municipal law or regu-
on a quarterly basis:
lation concerning customer service (i)Standard installations will be per-
•• that imposes customer service require- formed within seven (7) business days
ments that exceed, or address matters after an order has been placed."Stand-
not addressed by the standards set ard" installations are those that are
forth in paragraph(c)of this section. located up to 125 feet from the existing
_. . . r (a) Effective July 1, 1993, a cable op- distribution system.
era
for shall be subject to the following (ii) Excluding conditions beyond the
customer service standards: control of the operator, the cable open-
' ator T;.. :-.4--gin perking cn "3erv"'is
,` -�•}-�T; I (1) Cable system office hours and �d is no110
telephone availability— interruptions" prompt'
1 (i)The cable operator will maintain a event later than 24 hours after the
local, toll-free or collect call telephone interruption becomes known.The cable
access line which will be available to operator must begin actions to correct
- its subscribers 24 hours a day, seven other service problems the next busi-
. days a week. ness day after notification of the sere-
(A)Trained company representatives ice problem.
• will be available to respond to cus- (iii) The "appointment window" al-
• tomer telephone inquiries during nor- ternatives for installations, service
. • mal business hours. calls, and other installation activities
(B) After normal business hours, the will be either a specific time or, at
access line may be answered by a serv- maximum, a four-hour time block dur-
1- ice or an automated response system, ing normal business hours. (The opera-
including an answering machine. In- tor may schedule service calls and
quiries received after normal business other installation activities outside of
• hours must be responded to by• a normal business hours for the express
• trained company representative on the convenience of the customer.) 1
•next business day. • (iv) An operator may not the
an
_ ..��.� - �.,�► _ ��,enr nth.a�,ufi u.�t -
ftex��_��..-_- .��. (ii) Under nc..:�a`i operating ....:�af f�pa�,n. business on the business day
tions, telephone answer time.by a cus- close of scheduled appointment.mes -
•
tomer representative, including.wait prior to the sched .
time, shall not exceed thirty (30) sec- (v)If a cable operatorrepresentative
onds
when the connection is made. If is running late for an appointment
the
call IIeeds to be transferred, trans- with a customer and will not be able to
•_ � far time shall not exceed thirty (30) keep the appointment as scheduled,the
• seconds. These standards shall be met customer will be contacted. Then�
•
time •under
less than ninety (90) percent of the •pointment will be rescheduled,.as
normal operating condi- essary, at a time which is convenient
tions,measured on a quarterly basis. for the customer.
• 512
0 -
s•,
�r
.I 410-
•
1 : ?.
• .
Federal Communications Commission §76.400
•
(3) Communications between cable (iii) Refunds—Refund checks will be
operators and cable subscribers— issued promptly, but no later than ei- .
(i)Notifications to subscribers— ther—
(A) The cable operator shall provide (A)The customer's.next billing cycle
written information on each of the fol- following resolution of the request or
lowing areas at the time of installation thirty(30)days,whichever is earlier,or
of service, at least annually to all sub- (B)The return of the equipment sup-
scribers, and at any time upon request: plied by the cable operator if service.is
(1)Products and services offered; terminated:•
(2) Prices and options for•prograzh-. 'ay) Credits—Credits for service will
ming services and conditions of sub- be issued no'later than the customer's
scription to programming and other next billing cycle following the deter-
services; - • mination that a credit.is warranted.
. •(3) Installation and service mainte- (4)Definitions— • .
Hance policies; (i).Normal business hours—The term
(4) Instructions on how to use the "normal business hours" means those
cable service; hours during which most similar busi-
(5) Channel positions programming nesses in the community are open to
carried on the system;and, serve customers. In all cases. "normal
(6) Billing and complaint procedures, business hours" must include some
including the address and telephone evening hours at least one night per
number of the local franchise week and/or some weekend hours. -
authority's cable office. (ii) Normal operating conditions—The •
(B) Customers will be notified of any term "normal operating conditions"
changes in rates, programming services means those service conditions which
or channel positions as soon as possible are within the control of the cable op-
in writing. Notice must be given to erator. Those conditions which are not
ubscribers a minimum of thirty (30) within the control of the cable opera-
ys in advance,of such changes if the
tor include,but are not limited to, nat-
ural disasters, civil disturbances.
cable operator. In addition, the cable power outages, telephone network out-
operator shall notify subscribers thirty ages, and severe or unusual weather
(30) days in advance of any significant conditions. Those conditions which are
changes in the other information re- ordinarily within the control of the
quired by paragraph (c)(3)(i)(A) of this cable operator include, but are not lim-
section. Notwithstanding any other ited .to, special promotions. pay-per-
provision of Part 76, a cable operator view events, rate increases, regular
shall not be required to provide prior peak or seasonal demand periods, and
notice•of any'rate change that is the maintenance or upgrade of the cable
result of a regulatory fee,franchise fee, system.
or any other fee, tax, assessment. or «(iii) Service interruption—The term
chargé of any kind imposed by any service interruption means the loss
Federal agency, State, or franchising of picture or sound on one or more
authority on the transaction between cable channels.
the operator and the subscriber. [58.FR 21109,'Apr.19. 1993. as amended at 61
(ii)Billing- • FR 18977.Apr.30.19961
(A) Bills will be clear, concise and
understandable. Bills must be fully . Subpart I—Forms and Repo. ••
itemized, with itemizations including,
but not limited to, basic and premium 076.400 Operator, mail ad•. ,, and
.service charges and equipment charges.
operational status ch: . :es.
Bills will also clearly delineate all ac- Within 30 days foil. ng a change of
tivity during the billing period, includ- Cable Television S = ;rm Operator,and/
ing optional charges, rebates and cred- or change 'of •- operator's mail ed-
Its. dress,•and/o : ':e in the operational i
(B) In case of.a billing dispute, the status of • cable'television system, the • '
cable operator must respond to a writ- Opera = shall inform the Commission
ten complaint from a subscriber within in ting of the following. as appro-
30 days • ate; . . ...
513
III 111
SCHEDULE 3
PROVISIONS OF SECTION 76. 630 OF TITLE 47
OF THE CODE OF FEDERAL REGULATIONS
"COMPATIBILITY WITH CONSUMER ELECTRONICS EQUIPMENT"
..NdOedla,a.M.MWGIIIIIPUMIIIMMIIIIIIIS .
47 CFR Ch.1 (10-1-96 Edition) Federal Commu
• (b) The operator of the cable system service will place the cable system i, filed with the Fede:
• shall notify the Commission of the pro- conflict with any of the-offset-crite :, mission a request!
posed extension of the system radius in the cable system operator is.res-•n- hibiting scramblini
these bands. Notification shall include Bible for eliminating such co• I ct tier of service.47 C
carrier and subcarrier frequencies, within 30 days of notification. • for waiver states
types of modulation,the previously no- (f) A minimum frequency o• =et be- waiver request). A
tified geographical coordinates, the tween the nominal carrier fr;•uency of waiver is t file b i
address of tnew system radius and the maximum he cab
-•
an aeronautical radio se ' e qualify- business).
peak power occurring at any location ing under paragraph(d)of his Section Individuals who •
in the cable distribution system. No and the nominal frequen ., of any cable request for waiver
system shall extend its radius in these system carri°i or _ - component car t ''=dc_ Cwt=
S r' - bands without prior Commission au- no later than 30 da'
thorization. gable of delivering pe: . power equal to fication was mail(
or greater than 10 watts shall be
(c) The operator of the cable system maintained or exc=-ded at all times. comments should 1
shall maintain at its local office a cur- oral �����
rent listing of all signals carried in The minimum fre• ency offsets are as Services Bureau, V
these bands, noting carrier and subcar- follows: •
should include the
tor to whom the (
rier frequencies, types of modulation, • Frog = .__ Minknun fre- Individuals should
and maximum peak power which oc- • QU°"cy offsets comments to(the c
curs at*any location within the cable 108-118 MHz.. (50+1)IcHz. place of business).
distribution system.
328.6-335.4 M.' 1.461166.166.6•16.60.6.6.6.......................... Cable operators
(d) The operator of the system shall 108-136 M ' ....-....-..
provide for regular monitoring of the 225-328.6 Hz....-----.........- (100+1)kHz. reply uo later I
cable system for signal leakage cover- 335 '' Hz--------- • date subscriber
ingall filed.
portions of the cable system at is table,Tis the absolute (b) Cable syste
least once each calendar year.Monitor- value of vide their subsc
ing equipment and procedures shall be th- frequency tolerance of the cable
adequate to detect leakage sources = evision signal. The actual frequency • tem terminal d`
which produce field strengths in these olerance will depend on the equipment tomer premises
bands of 20 microvolts.per meter at a and operating procedures of the cable porates remote c
.•
•
distance of 3 meters.The operator sha system, but in no case shall the fie-
permitewith c
maintain a log showing the date : •d quency tolerance T exceed ±25 kHz in devices cc
location of each leakage source id:•ti- the bands 108-136 and 225-400 MHz. remote control u
Pied, the date on which the leak: : : wasno action that
eliminated, and the [50 FR 29401,July 19,1985] vices from beim
probable :use of'
mercially avail:
the leakage. The log shall be •ept on §78.630 Compatibility with consumer unit. Cable syst
file for a:period of two (2) ars, and electronics equipment. vised that this
shall be made to authorized epresenta- (a) Cable.system operators shall not them to active]
tives of the Commission on :quest. scramble or otherwise encrypt signals control functionf
(e) All carrier signals o signal com- carried on the basic service tier. Re- equipment wher
ponents capable of d: 'voting peak quests for waivers of this prohibition I not operate wit]
power equal to or gr•star than 10-3 must demonstrate either a substantial tion procedure. C
. I. watts must be opera -d at frequenciesI
offset from aeronau cal radio services problem with theft of basic tier service may, however, d
or a strong need to scramble basic sig- f trol functions c
operated by Co ssion licensees or
nals for other reasons. Aspart of tomer premises
•
by the United S-:tes Government orthis !
its agencies wit n 111 km (60 nautical showing, cable operators are required quested by the sr
- miles) of any ••rtion of.the.cable sys- to notify subscribers by mail of waiver � (c) Cable systE
tern as give• in paragraph (1) of this requests. The notice to subscribers scrambling,encr:
•`t, w.....:..,, s.. ......s.
inn»o!� f..s .r,,.i 1 A
- • section. ( • - limit of 111 km may - �k...d2�. r4 La.ter than thirty _ '
increased the Commission in cases calendar days from the date the re- tern terminal d
of "exte••ed service volumes" as de- quest waiver was filed with the Com- §15.3(e)of this ct
fined by he Federal Aviation Adminis- mission, and cable operators must in- ! subscribers' rete
form the Commission in writing,•as offer to supply
tratio• or other federal government m L
soon as possible, of that notification special equip e
agen• for low altitude radio naviga- The notification to subscribers simultaneous rec
'—tic,• or communication services). If an pals. The a ui t
o•:rotor of a cable system is-notified must state: q p
the Commission. that a eh � dude a single
' ange in On (date of waiver request was filed*with dual descrambler
.. •peration of an aeronautical radio the Commission), (cable operator's name) •
. ars and bypass
530 -
•.
.
10-1-96 Edition) Federal Communications Commission §76.630
;able system in filed with the Federal Communications Com- ment,-such as two independent set-top
1.offset criteria, mission a request for waiver of the rule pro- terminal devices may be offered at the
hibiting scrambling of channels on the basic
ator is�respon- same time that the single terminal de-
such
conflict tier of service.47 CFR 176.630(a).The requestvice with dual tuners/descramblers is i
;anon. for waiver states (a brief s of the offered. For.purposes of this rule,two
waiver request). A copy of the request for set-topdevices linked by a control sys-
tency offset be- waiver is on file for public inspection at(the
ier frequency of address of the cable operator's local place of tem that provides functionality equiva- _ r r
service qualify- busiu4s&) lent t .that cf s-s ie devics wIt ....&1 `_ _._.^:.-
1 of this Section Individuals who wish to comment on this descramblers is considered to be.-the
acY mof any cable request for waiver should mail-coment8 to same as a terminal device with dual
•
l component ca- the Federal Communications Commission by descramblers/decoders.
equal to no later than 90 days from(the date the noti- (1) The offer of special equipment
powerq fication was mailed to subscribers). Those
watts shall be comments should be addressed to the: Fed-
shall be made to new subscribers at the
d at all times. eral Communications Commission, Cable time they subscribe and to all subscrib- �
;y offsets are as Services Bureau,
Washington, DC 20554, and era at least once each year. '
should include the name of the cable opera- (2)Such special equipment shall,at a
tor to whom the comments are applicable. minimum,have the capability:
Minimun he- Individuals should also send a copy of their
quency offsets ants to the cable operator at its local (i) To allow simultaneous reception
comm ( of any two scrambled or encrypted sig-
place of business).
"""""" � � in nals and to provide for tuning to alter-
...-....... Cable operators may file comments native channels on a pre-programmed
- ---- reply no later than 7 days from the schedule;and
---- (100+1) date subscriber comments must be
(ii) To allow direct reception of all
_ filed. other signals that do not need to be
absolute value of (b) Cable system operators that sro-s- processed through descrambling or
3e of the cable vide their subscribers with cableY decryption circuitry (this capability Ti
„� tem terminal devices and other cos- �,_ h1, �. L_ -,-( i
ztual frequencyequipment tiriati lhcus- cSs,u c Vis''rax+als�.} :•:� Fz.:ad�`� ''+ ••'1-�°• a
a the equipment tomer premises separate by-pass switch or through inu-
res remote control capability ahall� ternal by-pass circuitry in a cable sys-
e shallf the cable permit the remote operation of such
e In devices with commercially available tern terminal device).
3 Cable system operators shall de-
15-400
ceed f25 kHz in remote control units or otherwise take ( )
Mme• that would prevent the de- termine the specific equipment needed
no action
. vices from being operated by a tom- by individual subscribers on a case-by-
•
case basis, in consultation with the
martially available remote control 3 subscriber. Cable system operators are
with consumer unit. Cable system operators are ad- required to make a good faith effort to
=nf- vised that this requirement obliges provide subscribers with the amount
•
srators shall not them to actively enable the
premises and types of special equipment needed
encrypt signals � control functions of customer .
Service tier. Re- equipment where those functions do itto resolve their individual compatibil-y problems. ��
this prohibition I not operate without a special activa- (4)Cable operators shall provide such
tion procedure. Cable system operato 1
ier a substantial
basic tier service may, however, disable the remote con- equipment at the request of individual
li
'amble basic sig- trol functions of a subscriber's cus-
tomer
and may charge for pur-
tomer premises equipment where re-i chase or lease of the equipment and its
. As part of this - installation in accordance with the - __
ors are required � quested by the subscriber. _; .ten 4 tne � ,egu;na�a� rules I �-
mail of waiver ; (c) Cable system pe:'ator that ase F -
Y scrambling,
encryption or similar tech- for customer premises equipment used j
to
subscribers nolo es in conjunction with cable sys- to receive the basic service tier, as set
iter than thirty
.he date the re- tem terminal devices, as defined in forth in §76.923. Notwithstanding the
I with the Corn-
§15.3(e)of this chapter, that may affect required annual offering, cable�opea-
subscribers' reception of signals shall tors shall respond to subs for race
i in w must in offer to supply each subscriber with quests for special equipment p-
t in writing, asn special equipment that will enable the tion of multiple signals that are made
that notification
a to subscribers simultaneous reception of multiple sig- at any time. .
nals. The equipment offered shall in- (d) Cable system operators shall pro-
elude a single terminal device with vide a consumer education program on
'lest was filed with dual descramblers/decoders and/or tim- compatibility matters to their sub •
-
1 operator's name) ers and bypass switches. Other equip- scribers in writing,as follows:
531
§76.701
47 CFR Ch. I(10-1-96 Edition) F:deral Communications Comn
(1) The consumer information pro- (iii) In
gram shall be cases where cable system op- ;.:,,c,n, etory activities or organs e
provided to subscribers erators offer remote control ► offensiv
at the time they first subscribe and at with cable capability Y e manner a,s me
least once a year thereafter. Cable o system terminal devices and f y ontemporary community
erators may choose the time and
customer premises equipment
Ards.
means by which they comply with the shall at is provided to subscribers, they cable operator that do
annual consumer information require- 1 mote controladvise their subscribers that re- ii(0nbthglihis
t the distribution of pry
ment. This requirement may be satis- with that units that are compatible accordancewithparagr1
fieri by a once-a-year mailing to all from o quipment may be obtained ection shall place any
subscribers. The information may be lets. her sources, such as retail out- .iccess • ogramming identified x
included �n one of the cable system's Cable system operators shall also ►;1'am pr•eiders as indecent on
provide a representative list of the
regular subscriber billings. more ch:noels that are avails
(2) The consumer information models of remote control units cur- :subscribe : only with their pricy
pro- rently available from retailers that are e) cone.t as provided in pari
gram shall include the following infor- compatible with th the customer premises (c)of this s-ction.
(i) Cable system operatorsequipment they employ. Cable system (c) A cabl operator shall mak
n- operators are required to make r�rohin 30 i:-: available to a subs
shall i
form their subscribers that some mod- faith efforta good
els of TV receivers and videocassette will not piling this list and within 30 d= •s of receipt of a v
in com
recorders may not be able to receive all sions. This liable for inadvertent orris- (hat n for a cess t0 the prograI
of the channels offered by the cable more thanlist shall be current as of no ghat includes - statement that t
system when connected directly to the the consumerlx months before the date questing subs ber is at least ll
cable system. In conjunction with this the d to education program is dis- years old; a ca le operator shall
information, cable system operators subscribers. Cable operators nate a subscri -is access to suc
shall briefly explain, the types are also required to encourage sub- Tramming wit n 30 days from r
nel brie compatibility of chan- scribers to contact the cable operator of a subscriber's request.
Y problems that could to inquire about whether
occur if subscribers connected their remote controla particular (d)A program •rovider requests
equipment directly to the cable system might be unit the subscriber cess on a lease• access channel
and offer suggestions for resolvingconsidering for purchase identify for a ca, le Operator an;
those problems. Such suggestions would be compatible with the subscrib- in para r that i s indecent as d
could er's customer premises equipment. in paragraph (g) • this section.
include, for example, the use of a cable
system terminal device such as a set-
graphs TO §76.630: The identification shat be in writin
top channel converter. Cable system provisions of para- include the full . : e, address
graphs(a)and(b)of this section are applica-
operators shall also indicate that chan- ble July 31, 1994, and June 30, 1994, respec- telephone number f the prograr
nel compatibility problems associated tively. The provisions of paragraphs (c) and
vider and a state ent that the
with reception of programming (d) of this section are applicable October 31, gram provider is sponible fa
p gramming that is 1994, except for the requirement under para- content of the •
not scrambled or encrypted program- graph(c)of this section a pro_ amming. A
ming could be resolved through use of for cable system op- operator may requi that such i
erators to supply cable system terminal de- fication be provided p to 30 ds
simple converter devices without vices with dual tuners (as needed),
descrambling or decryption with li- which is the requested date fo
applicable October 31, 1995. The initial offer carriage.
ties that can be obtained from either of special equipment to all subscribers,as re- ram provider o ing ca,rri i
the cable system or a third party retail quired under paragraph (c) of this section, "live programming" o a'leased �
vendor, shall be made by October 31,1994. channel that is not id.ntified as
(ii)In cases where service is received [59 FR 25342, cent must exercise re: :onable e
through a cable system terminal May 16, 1994, as amended at 61 to insure that indecen
progran
de- FR 18510,Apr.26,1996]
vice, cable system operators shall indi- will not be presented. A cable op(
oftate that subscribers may not be able ' ' *art L—Cable Television
will not be in violation • parlock
to use special features and functions of ce this section if it fails to block
a
their TV receivers and videocassette Access cent programming that is not i4
recorders,including features that allow 76.701 Leased : cess channel fled by a program provi•-r as ret
the subscriber to: view a s• in paragraph(d)of this s- tion.
one channel while simultaneously m r n (a) Notwithstan•' e) A ca.ble operator ay requ
e 532(b)(2) (Communicati g s 47c U.S.C.US
cording a program on another channel; as amended, • Act of 1934, program provider to ter ify tha
record two or more consecutive section 612), cable opera- programming intended f• lease
grams that appearpro- tor, in accordance with 47 .C. 532(h) cess is not obscene Arogra ming
on different chan- (Cable Consumer Protection decent programming sub's
nels; and, use advanced picture genera- a d Com- p g t to t]
tion and display features such as "Pic- petitiondAct of 1992, section 10(a) may quirement of paragraph (b) of this
tore-in-Picture," channel review and tennand enforce prospectively a t- tion. A cable operator ma requ
other functions that necessitate chan- d published policy of prohibiting program provider of "live prof
nel selection by the consumer device, programming which, it reasonably be- ming" to certify that rens nab]
Heves, describes or depicts sexual or forts will be made to ensure that
532
4
410
411
SCHEDULE 4
PROVISIONS OF SECTION 76. 630 OF TITLE 47
OF THE CODE OF FEDERAL REGULATIONS
" PROTECTION OF SUBSCRIBER PRIVACY"
Ill,
0 .
1
• PART IV-MISCELLANEOUS PROVISIONS
.1
0
_ 1. :551. Protection of subscriber privacy
.•.�. .. :.
• definitions
• subscriber d .iugpersonally identifiable information;.
(a) Notice to re•8''m'd •: '
:• time of enteringinto an agreement to provide any cable
•..:= 1) At the
'cc or other service to a subscriber and at 1east year
once a
'i'' ` a cable operator shall provide notice in the form of a
. �,� er, P
:: : written statement to such subscriber which clearly and " --
-•. ate,
. •icuously informs the subscriber of—
I the nature ofpersonally identifiable information col ect-
`.; • (A) and the
1?:!,,,, ed or to be collected with respect to the subscriber
i'`'nature of the use of such information;
: - (B) the nature, frequency, and purpose of any disclosure
p��y� whichmay be made of such information, including an identifi-
y
• cation of the types of persons to whom the disclosure may be
_ •
.• made;
fF,-`:'-',','.i*: (C) the period during
which such information will be main-
:. i.-tained by the cable operator;
''':,;7=,,i:
(D)
the times and placeat which the subscriber may have
:�.s access to such information in accordance with subsection (d) of
`this section; and
�tt t (E) the limitations provided by this section with respect to
7(72-'• • the collection and disclosure of information by a cable operator
-. and the right of the subscriber under subsections (f) and (h) of0
- this section to enforce such limitations.
..e case of subscribers who have entered into such an agreement
`-ore the effective date of this section, such notice shall be provid-
:- v�rithin 180 days of such date and at least once a year thereafter.
(2) For purposes ofhhis section,•other than subsection(h)of this section— • -.•
(A) the term'‘‘personally identifiable information"'does not include any record'of
aggregate data which floes•notY particular persons;iden' � . -., • .
.(B) the term:"oilier service":. dudes any wire.or radio communications service
•
provided using any of the facilities:of a cable operator that are used in the provision ;.
of cable service; and '.. 'f . --.•;•i,::* ' • - - .':
(C) the term"cable operator"includes,in addition a to persons within the defini-
tion of cable operator in section 522 of this title, any person who (i) is owned or
•controlled by,or under common'owaership'or control with,a.cable operator,and(ii)
provides any wire or radio communications service. ,. .
t •
•flection of personally identifiable information using cable system
.:Except asprovided in paragraph (2), a cable operator•shall
_'._ the cable system to collect personally all identifiable inf orma-
an tion
concerningsubscriber without the prior written or elec-
Y
tronic consent of the subscriber concerned.
' (2) A cableoperator may use the cable system to collect such
information in order to—
(A) obtain information necessary to render a cable service or
other service provided by the cable operator to the subscriber;
or -.
—4110
B detect unauthorized reception of cable communications.
•
(c) Disclosure of personally identifiable.information
(1) Except as.provided i in:paragraph(2),a cable operator.shall not disclose rsonall
identifiable information concerning any subscriber without the prior written or electronic
consent of the subscriber concerned and shall take such actions.as are necessary to*
prevent unauthorized access•to.such information by a person other than the subscriiber
or cable : .•: . .:►.. . .
:... operator..�, •
.,.. �� .
(2) A cable operator may disclose such information if the disclo-
sure sure is—
(A) necessary to render, or conduct a legitimate business
activity related to, a cable service or other service provided by
the cable operator to the subscriber;
(B) subject to subsection (h) of this section, made pursuant to - L
a court order authorizingsuch
disclosure, if the subscriber is
notified of such order by the person to whom the order is
directed; or
(C) a disclosure of the names and addresses of subscribers
to
any cable service or other service, if—
(1) the cable operator has provided the subscriber the
opportunity to prohibit or limit such disclosure, and
(11) the disclosure does,not reveal, directlyindirectly,
the—
(I)
or
(I) extent of any viewing or other use by the sub-
scriber-of a cable service or other service provided by
the cable operator, or
(II) the nature of any transaction made by the sub-
scriber over the cable system of the cable operator.
• (d) Subscriber access to information
A cable subscriber shall be provided access to allersonall
identifiable information regarding P y
g ing that subscriber which is collect-
ed 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. A cable sub-43 .
scriber shall be provided reasonable opportunity to correct any ``
?
error in such information. '
!
ipestruction of information
Lj'cable operator shall destroy personally identifiable information
rY for the informationur
e is no longer necessary purpose for which
r
• as collected and there are no pending requests or orders for •
'jocss to such information under subsection (d) of this� section or
pursuant to a court order.
&Civil action in United States district court; damages; attorney's fees
and costs; nonexclusive nature of remedy
(1) Any personaggrieved by any act of a cable operator in
violation of this section may bring a civil action in a United States
district court. •
(2) The court may award— .
(A) actual damages but not less than liquidated damages
computed at the rate of$100 a dayfor g
• each day of violation or
410 $1,000, whichever is higher;
(B) punitive damages; and
(C) reasonable attorneys' fees and other litigation costs rea-
sonably incurred. g
(3) The remedy provided by this section shall be in addition
any other lawful remedyavailable to to
a cable subscriber.
•
(g) Regulation by States or franchising authorities
Nothing in this subchapter shall be construed to prohibit any
State or any franchising authority from enacting or enforcing laws
consistent with this section for the protection of subscriber privacy.
(h) Disclosure of information to governmental entity pursuant to court
order
A governmental entity may obtain personally identifiable infor-
mation concerning a cable subscriber pursuant to a court order
only if, in the court proceeding relevant to such court order-
1 (1) such entity offers clear and convincing evidence that the
subject of the information is reasonably suspected of engaging
in criminal activity and that the information sought would be
material evidence in the case; and
(2) the subject of the information is afforded the opportunity
to appear and contest such entity's claim.
Ali
III 111
SCHEDULE 5
CALIFORNIA GOVERNMENT CODE SECTION 53054
"CABLE TELEVISION AND VIDEO PROVIDER CUSTOMER SERVICE
AND INFORMATION ACT"
/
.
i
-- ..- . 4L-:•- •-• ! 0
33O51
CITIES, COUNTIES, & OTHER AGENCIES ; GENERAL
Not 1 Title 5 Div. 2
ant mi ht base either a request to the agency for ing need for presentation of claim where public Section
leave to Ile a lateclaim or a petition to court agency fails to file such information. Tubbs V. 53054.2. I
for an or r relieving him from the claim-filing Southern California Rapid Transit Dist. (1967) 53055.
requireme . Wilson v.San Francisco Redevel- 63 Cal.Rptr. 377, 67 Ca1.2d 671, 433 P.2d 169. 53055.1. t
opment Age cy (1977) 138 Cal.Rptr. 720, 19
Ca1.3d 555,5k4 P.2d 872. 2. Purpose of law 53055.2. C
One of the /N.robable legislative purposes un- Purpose of this section was to provide means i.. 53055.3. C
denying § 946.i excusing failure to present for identifying public agencies and names and 53056.' F
claim if public etity has not supplied correct addresses of designated officers needed to en-
and complete information to the roster of public able or assist person to comply with applicable 53057. R
. agencies is to assurk compliance by such public claims procedure. Tubbs v. Southern Califor-
entities. Wilson v. .an Francisco Redevelop- nia Rapid Transit Dist.(1967) 63 Cal.Rptr.377, i
ment Agency (1977) 138 Cal.Rptr. 720, 19 67 Ca1.2d 671,433 P.2d 169.
Ca1.3d 555,564 P.2d 8 '.
If redevelopment agen against which plain- 3. Public agency 53054.
tiff brought action for pers,nal injuries failed to Requirement of this section that public agen- This act
comply with this section p :intiff was excused cies file certain information with secretary of
from compliance with § 91 requiring filing state and county clerk do not apply where sub- Provider Ci
claim with appropriate publi agency within division of public agency operates under ficti- (Added by Si
100 days,though he untimely fi d a claim with tious name and conducts business off its premis-
the proper agency at its correct a• ress and did es. Hovd v. Hayward Unified School Dist.
not allege that he was deceived or onfused by (App. 1 Dist. 1977) 141 Cal.Rptr. 527, 74 Cal.
the agency's noncompliance. Wil-•n v. San App.3d 470. Former§ 5
Francisco Redevelopment Agency ( '77) 138 Vocational skills center was not"public agen- • § 1, relating
Cal.Rptr. 720, 19 Ca1.3d 555, 564 P. d 872. cy" within meaning of sections of Government '
•
Claimant who has actually presented c :im to Code requiring public agencies to file certain § 53054.:
proper public entity may not excuse compl nce information with Secretary of State and county •
with claims statute and circumvent special 'x- clerk, since it was a subdivision of a district. The •l
month statute of limitations contained Hovd v. Hayward Unified School Dist. (App. 1
§ 945.6 by invoking this section requiring pub- Dist. 1977) 141 Cal.Rptr. 527, 74 Cal.App.3d (a)
lic entity to file information and§ 946.4 obviat- 470. should get t
r
ensure this
§ 53052. Repealed by Stats.1965, c. 65 .. 2020, § 33 that custom
Historical and Statuto is, Notes (b) Cable
The repealed section, added by Stats.1963, c. 4121,§ relating to time of filing and form of . quality sery
1805,p. 3650,§ 2, related to contents of roster, a claim • damages, was repealed by Stats. continue tc
required the maintenance of a roster index,and 1963, c. 16. , p. 3286, § 18. SeeGovernment . developmer
declared the roster to be a public record. Code §§ 905, '11.2. For applicability of Stats.
Former§ 53052, added by Stats.1949, c. 81, 1963,c. 1681, . 3267,see Historical and Statu- (c) It is
p. 285,§ 1, amended by Stats.1959,c. 1715, p. tory Notes under overnment Code§ 810. service, but
customers
§ 53053. Repealed by Stats.1959, c. 1715, p.4116, § 1 - = these custor
(Added by St
Historical and Statutory Notes
The repealed section, added by Stats.1949, c.
81,p.285,§ 1,related to contents of a claim for § 53054.2
- damages. See Government Code§ 910. i _
As used in
(a) "Cable
Article 3.5 j television se
CABLE TELEVISION AND VIDEO PROVIDER CUSTOMER (b) "Cable
SERVICE AND INFORMATION ACT
under comrr
contiguous(
Section 1 (c) "Vide(
53054. Short title.
53054.1. Findings and declarations. •
one or more
al. 12
w
. 1
,'�:.
•
[ESERAL POWERS & DUTIES § 53054.2
GErI
le 5 Div. 2
sblic Section
bs v. 53054.2. Definitions.
967) 53055. Customer service standards.
169. 53055.1. Notice of customer service standards.
53055.2. Compliance with customer service standards; annual report.
53055.3. Construction of article. failure to distribute
eans 53056.. Failure to distribute annual notice; penalties; notice of
and
en- prior to imp')sition of penalty.
:able 53057. Repealed.
lifor-
377, Article 3.5 was added by Stats.1992, c. 262 (S.B.1010), § 1.
§ 53054. Short title •
-gen-
-y of This act shall be known and may be cited as the Cable Television and Video
sub- Provider Customer Service and Information Act.
ficti- (Added by Stats.1992, c.262(S.B.1010),§ 1.)
Dist. Historical and Statutory Notes
Cal.
Former§ 53054, added by Stats.1949, c. 81, by Stats.1963, c. 1681, § 18. See Government
gen- § 1, relating to defense counsel, was repealed Code§§ 995,996.
nent
rtainy § 53054.1. Findings and declarations
y
tric The Legislature finds and declares all of the following:
(a) In an unregulated environment, customers of cable and video providers
should get their money's worth for the service they subscribe to, and one way to
ensure this is to encourage that customer service standards be established and
that customers be informed to those standards.
(b) Cable television and video providers have made efforts to provide high-
m of
qualityservice to their customers. Cable television and video providers should
,tats. continue to establish standards for customer service so as to further the
anent development of high-quality customer service.
tats.
tatu- (c) It is not the intent of this article to establish standards for customer
service, but to encourage cable television and video providers to inform their
customers about the standards they have established and to work to achieve
these customer service•goals.
(Added by Stats.1992,c.262 (S.B.1010),§ 1.)
§ 53054.2. Definitions
As used in this article:
(a) "Cable television operator" means the person or entity providing cable
television services through the cable television system. •
R (b) "Cable television system" means a community antenna television system,
under common ownership and control, serving a franchise area or two or more
contiguous or electronically connected franchise areas.
(c) "Video provider" means any person, company, or service which provides
one or more channels of video programming to a residence, including a home,
13
1
•
•
I
:. § 53054.2 CITIES, COUNTIES, & OTHER AGENCIESa G
ITitle 5 Div.,
• condominium, apartment, or mobilehome, where some fee is paid, whether I (3) A
I directlyor as included in dues or rental charges, for that service, whether or operator
g
not public rights-of-way are utilized in the delivery of.the video programming. televisior
A "video provider" shall include, but not be limited to, providers of cable r service st
television, master antenna television, satellite master antenna television, direct i (Added b
broadcast satelaite .multi oint distribution service, and other providersvideo y
p of i
• programming, whatever their-technology.
• § 53 •
(Added by Stats.1992,c.262(S.B.1010),§ 1.)
After tl
e.
§ 53055. Customer service standards have bee
provider
Each cable television operator or video provider in the state shall establish operator
customer service standards. These customer service standards shall include, dards. 1
but not be limited to, standards regarding the following: 53055.1.
(a) Installation, disconnection, service and repair obligations, employee iden- (Added by
tification and service call response time and scheduling.
(b) Customer telephone and office hours; procedures for billing, charges, § 5305
refunds, and credits.
No pro
(c) Procedures for termination of service. city, coin
(d) Notice of the deletion of a programming service, the changing of channel `. are conta
assignments, or an increase in rates. i' video prc
law for o(e) Complaint procedures and procedures for bill dispute resolution.
a
(Added by Stats.1992,c. 262(S.B.1010),§ 1.) (A
r
Historical and Statutory Notes § 5305(
Former§ 53055, added by Stats.1949, c. 81, ing to payment of, or compromise of, claims,
§ 1,derived from Stats.1931,c. 1167,§ 4,relat- was repealed by Stats.1963,c. 1681,§ 18.
(a) Thf
§ 53055.1. Notice of customer service standards Y cable telt
••
by ordin
(a) Each cable television operator or video provider shall annually distribute television
to employees, to each customer, and to the city, county, or city and county in Section
which the cable television operator or video provider furnishes service to i which th,
customers, a notice describing these customer service standards. New custom-
ers shall also be provided with this notice when service is initiated. _ (b) Tht
•(b) The noticegiven to new customerspursuant to this section shall include, or video
t customer
in addition to all of the information described in subdivisions (a) to (e),
inclusive, of Section 53055, all of the following: .: penalty r
provider
(1) A listing of the services offered by the cable television operator or video ithen '
provider which clearly describes all levels of service, and including the rates for once
each level of service, provided that, if the information concerninglevels of -- no Penal
provider
service and rates is otherwise distributed to new customers upon installation by
The-cable television operator or video provider, the information need not be (Added by
included in the notice to new customers required by this section.
(2) The telephone number or numbers through which customers maysub- '
• g Former§
scribe to, change, or terminate service, request customer service, or seek . ; p.285,§ 1
general or billing information. 5275,§ 4,;
14
GENERAL POWERS & DUTIES § 53056 •
Div. 2
the rights and remedies which the cable television
(3) A description of g
operator or video provider may make available to its customers if the cable
television operatorits or video provider does not materially meet customer
Service standards. •
(Added by Stats.1992, c. 262 (S.B.1010),§ 1.) .
Compliance with customer service standards; annual report
§ 53055.2.
After the customer service standards established pursuant to Section 53055
inone year, each cable television operator and video
have been effect for
provider shall report annually on the performance of that cable television
pr
operator or video provider with regard to meeting its customer services an-
dards. This report shall be included in the annual notice required by Section
53055.1.
(Added by Stats.1992, c.262(S.B.1010),§ 1.)
§ 53055.3. Construction of article
• shall be construed to preempt the prerogative of a
No provision of this article
city, county, or city and county to enforce customer protection standards that
are contained in a franchise or license granted to a cable television operator or
• Section 53066.1 or that are otherwise authorized by
video provider pursuant to -r-_
law for
other cable television operators or video providers:
(Added by Stats.1992, c. 262 (S.B.1010),§ 1.)
•
§ 5 3 05 6. Failure to distribute annual notice; penalties; notice of failure to
•
distribute prior to imposition of penalty
of the city, county, or city and county in which the
(a) The legislative body �'
cable television operator or video provider furnishes service to customers may,•
• schedule ofpenalties for the failure of the cable
by ordinance, provide a television operator or video provider to distribute the annual notice required by
Section
53055.1, not to exceed five hundred dollars ($500) for each year in
which the notice is not distributed to all customers.
(b) The city, county, or cityand county shall give a cable television operator
or video provider written notice of any alleged failure to distribute to all
imposing - _-
customers the annual notice required by Section 53055.1 before p osing any. If the cable television operator or video
penalty pursuant to subdivision (a) receipt of
' utes this notice to all customers within 60 days after .p
provider distrib
• county, or cityand county pursuant to this subdivision,
the notice from the city, tY operator or video
pena •lty no imposed upon the cable television
shall be
provider pursuant to subdivision(a).
•
(Added by Stats.1992,c.262(S.B.1010),§ 1.)
Historical.and Statutory Notes
Former§ 53056,
added byStats.1949, c. 81, was repealed by Stats.1963,c. 1681,§ 18. See
p. 285, 1, amended byStats.1959, C. 2167,p. Government Code§ 990.
5275, 4,relatin to isurance against liability,
§ g 15
:.s
.
4111 III
SCHEDULE 6
CALIFORNIA GOVERNMENTS CODE SECTION 53088
"VIDEO CUSTOMER SERVICE ACT"
6 .,...-. ,T i
, 4:;.. . , •
.„. . ..,... :,... ! . . . ,
. ,e
CITIES, COUNTIES, & OTHER AGENCIES .i i .. . ti
,, III • •
... .. . ::. . e
. - 3087.4 Tale 5 : �_2
.special tax levied priorrto tl�e:.effective '
ii (d). v�is section shall not apply-to any.sp P `��
• date of '•• section. - •
ed •
b St. .1996,c. 1125,(A.B.188),§ 1.) _; ;.
(Add y
• S
• toproperty; seismic safety improvements;.public financ- �.
i § 53087.5f: iva . -
} i notice
to lienholders �_
• ds b a local ublic entity, including a charter -
• A loan or expendnt� e of fun y P
• • privately owned property for purposes of seismic - .'-=t,
•• city, to upgrade or irri• ove priv y
• - the rovision of funds creates or can create a hen: s :
safety or retrofitting, whe p • • on theproperty, .. .
e shall not, en combined with existing liens • . - �_
on the property,
curre a t appraised value of the property, as determined - :
exceed 80 percent of the PP
"`� ` wiser, unless. existing lienholders comment _}_ yl`
by an independent, certified ap � � -
yK•
in • • loan-to-val - ratio. Notice of the intention to provide
writing to a higher 1 �`
• shall be given to existing lienholders of - _:?`.:*-
record
to the owner of the prope
financing
30 daysprior to • a vote of the local agency authorizing �:;.:,-.
record not less than y .- / ;:��..
provision rovision of financing to the owner o e property. .
r
Added b Stats.1995,c.385(S.B.1010),§ 1.) -}-
i
( y
Historical and Statuto otes • _ -. i �-...
• 385 S.B.1010), title and lie•s in order to make economic deci- ; . ,;,
Section 4 of Stats.1995, c. ( •'
sions affectin: their investment. Government ,._
provides: agencies,like p'vate parties,should not be per- . :.
"The Legislature hereby finds and declares as mined to create ns that would jeopardize the
follows: security of existin: lienholders merely to im-
andpriority of liens on proper- prove for seismic r- •fit purposes privately .•Y
The creationwithou e consent of the prior . � :::.--
purchasers,
-,-
ty is of statewide concern. Property owners, owned propertyi
urchasers,and lenders must know the status of lien holders." i ;.
Pior -
Article 4.5
. :,, :i .::.:
VIDEO CUSTOMER SERVICE ACT • ''' i '.
Section
53088. Short title.
53088.1. Definitions. information; dispute resolu- ;
-i :
53088.2. Duties of video providers; disclosure of customerj.
tion procedures; authority to schedule penalties.
Article 4.5 was added by Stats.1992, c. 1198 (A.B.2388), § 1.
• tion ofElective and Appointive Officers Former Article 4.5, Compensation .:i
• as Article 4 by Stats.1951, c. 1370, P. 3282, § 1,
During War, added
renumbered Article 4.5 and amended by Stats.1961, c. 84, p. 1086, § 35, i
053070, 53071, was repealed by Stats.1970, c. � 1consisting of former
1513,p. 3014,§ 62.5.
§ 53088. Short title
• Video Customer Service ' , -==.,.�t
This article shall be known and may be cited as the _�
-t
Act.
(Added by Stats.1992,c. 1198(A.B.2388),§ 1.) - :
• 68 _
i
i
't
1
d•
•
•
• •
rt 1
3088 2
• POWERS & DUTIES § 5 • ►
GEIIIERAL • ,
, .Div.
-t-• s: 53088.1. Definitions
::.-..Y,:-.;' means erson, company, or service which provides �,(a) "Video provider" any P
. •
' -' or more channels of video programming to a residence, including a home, :
.4.a• one
•
dominium or apartment where some fee is paid, whether directly or as r
.• •'`:= condominium, P
in dues or rental charges, for that service, whether•or not public . • ::
• includeda� , ,
•'`' rights-of-wayare utilized in the delivery of the video programming. A video — ,
r r of cable television, '-
provider' shall include, but not be limited to, providers ,.
P • ' llite master antenna television, direct broadcast ` ~' - 1
master antenna television, sate
distribution services, and other providers of video program- Y'.•_f - , r
satellite, multipoint _. .
whatever their technology. A video provider shall not include a landlord , r:
ming,• • single-family home or other 'I"
• providing only broadcast video programming to a g Y 1 i
residential dwelling consisting of four units or less.
• (b) "Material aterial breach" means any substantial and repeated failure to comply • .•
with
the consumer service standards set forth in Section 53088.2.
(Added by Stats.1992,c. 1198(A.B.2388),§ 1.)
53088.2. Duties of video providers; disclosure of customer information;
§ schedule penal- • : t•
dispute resolution procedures; authority to
ties • -
. , .
(a) Everyvideo
provider shall render reasonably efficient service, make ..• •
repairs promptly, and interrupt service only as necessary. t` :- _
(b) All video provider personnel contacting subscribers or potential subscrib- • .• _
• provider shall be clearly identified as associated 1�,i ,
ers outside the office of the 1 il
3 with the video provider. :.!•1 L:1
installation, and annuallythereafter, all video providers `' 6
(c) At the time of '
- written notice of,the programming offered, the ' : L►
• shall provide to all customers a
- • provider's installation and customer service , €t
• 7 prices for that programming, the prove : i I
4 policies, and the name, address, and telephone number of the local franchising ;. ;.L ii
.1, ,2•-.1,
. authority. •�' ►
- Y re re- :a
(d) All video providers shall have knowledgeable, qualified company p j;. ,; •
' sentatives available to respond to customer telephone inquiries Monday ;..;
i:
'__i through Friday, excludingholidays, during normal business hours. !i�; .i
g y ,
-• (e) All videoproviders shall provide to customers a toll-free or local tele- AO� 1
:1 •'1.'.:1' ,
•
�'i M''== number for installation, and service, and complaint calls. These calls i�•
., phone 'i F.•� > .
�-- the video roviders. The city, county, or city ;i i -. •
. �:-� .shall be answered promptly by P Pt'
.• ,;. •=.and noun establish standards for what constitutes promptness. .- -
tY may r ;
• (f) All video providers shall render bills which are accurate and understan a- a
•_: - 7...---:,_--'- 'bk. ;-.1 .1,1 ,
• . r�, • i▪ ' providers shall respond to a complete outage in a customers c.: ! I.._
-; - ��.- - •��.�.(g) All video p o P tri � �� ,
•--:•- response shall occur within 24 hours of the reporting of El ,• � ervice promptly. The ��,,,,
�` '"such outage to the provider, except in those situations beyond the reasonable ,
- --.Oiitrol of the video provider. A video provider shall be deemed to respond to a � f
• 0.-- .• j�cbm Tete outage when a company representative arrives at the outage location 1 LI il'1
• :- - •- ''thin 24 hours and
begins to resolve the problem.
: �. 1 ' j I'1 I
• . bEdi V.
,
•
: - r: ''t.•
.. . 'Lili i.
t I _ •
•,ttf�.• 1 1
lit f:.• :1.. • •• •. . _
0. . •,
. 0
,--,..:,P.,..7. i - . . . .
. 7,4::,:-If..- , . - ,
'j
•`�. •• 53088.2
CITIES, COUNTIES, & OTHER AGENCIES-
:_ Title 5
(h) All video providers shall provide a minimum of 30 days' written notice .-
r deleting channels. All videoproviders shall make ,:��'��•
before increasing rates or d g •
_ • everyreasonable effort to submit the notice to the city, county, or city and
county in .advance 'of the distribution to customers. The 30-day notice is : ; y
waived if the increases in rates or deletion of channels were outside the control :• `- ••
of the video provider. .In those cases the video provider shall make reasonable. .; 'I"~
i • efforts to provide customers with as much notice as possible. ;.
Every.video provider shall allow every residential customer who pays his - �f
or her bill directly to.the video provider at least 15 days from the-tiate the bill - -.
rj.
for services is mailed to the customer, to pay the listed charges unless otherwise
r,_ _ ' agreed to pursuant to a residential rental agreement establishing tenancy.
shall.beposted promptly. No video provider may termi- L.`'
Customer payments• nate residential service for nonpayment of a delinquent account unless the .
videoP rovider furnishes notice of the delinquency and impending termination .
at least 15 days prior to the proposed termination. The notice shall be mailed, . -..
Pg prepaid,osta a to the customer to whom the service is billed. Notice shall -
. not be mailed until the 16th day after the date the bill for services was mailed to
customer. The notice of delinquency and impending termination may be
the q
part of a billing statement. No video provider may assess a late fee any earlier -• _
than the 22nd day after the bill for service has been mailed.
(j) Every notice of termination of service pursuant to subdivision (i) shall
include all of the following information:
(1) The name and address of the customer whose account is delinquent. =
1
(2) The amount of the delinquency.
. (3) The date by which payment is required in order to avoid termini icn of j
service. •
(4) The telephone The hone number of a representative of the video provider who can
provide additional information and handle complaints or initiate an investiga- .,--
tion concerning the service and charges in question.
Service may only be terminated on days in which the customer can reach a
representative of the video provider either in person or by telephone.
(k) Any service terminated without good cause shall be restored without
charge for the service restoration. Good cause includes, but is not limited to,
failure to pay, payment by.check for which there are insufficient funds, theft of
similar subscriber `.��
service, abuse of equipment or system personnel, or otherf
actions.
(/) All providers video shall issue requested refund checks promptly, but no
__-2:- later than 45 days following the resolution of any dispute, and following the .' _
- - return of the equipment supplied by the video pi ovider, if service is to u nated. - `
-=
(m) All video providers shall issue security or customer deposit refund checks ,
but no later than 45 days following the termination of service, less --
promptly, ,
. any deductions permitted by law. 4
. (n) Video providers shall not disclose the name and address of a subscriber -
• for commercial gain to be used in mailing lists or for other commercial : •.
u oses not reasonablyrelated to the conduct of the businesses of the video • ham::.
PrP ,.:.,.
i 70 r,,
=t3
1 �
) . ,• .. -.
. li ' [ *i.
i
:f DUTIES § 53088.2
their.-.:---
affiliates, unless the video providers have provided to the j • ,
._ _-.�_:�. .dem or ; : ;
vi
..- ''';'1:':.°' included in anyother customer notice, that
=; •� bscriber a notice, separate or • • the
,-...z.:,-,-;- • cons icuousl describes the subscriber's ability to prohibit . ; ; -
andconspicuouslyddress and tele hone number for .,• '
'_: `' �'sclosureVideo providers shall provide an a P -
- •- . . ut toll charge to prevent disclosure of the
:.-:==��:?:a..local subscriber to use witho g _
* bscriber's name and address. _
• .-•,--., •sions of this article shall be •
resolved by the
- --'41v.-
7-1.?":-
:.(o) Disputes concerning t e prove:- or cityand coup in which the customer resides. For video
� -.;�: city,� county, • *county
providers
under Section 53066, the franchising authority shall resolve disputes.
providerscity
with
video shall register the in which they provide .t . , •
All other E Z
e or, where the customers.reside reside in an unincorporated area, in the county
service .i
intheyprovide service. The registration shall include the name of the
which and customer service and s
1 company, its address, its officers, telephone numbers,
z
P
procedures. Counties and cities may charge these other video j.
complaint '' '
operating in the state a fee to cover the reasonable cost of administer- 1
providersp g
ing this division. `
• city, county, or cityand
I li
• i (p) Nothing in this division limits any power of a ty
.• standards and consumer '
.1 . county or video provider to adopt and enforce service
which exceed those established in this division. 11-
-protection
standards .. • :
The legislative bodyof the city, county, r city and county, may, by ::...ii - -x �-
. .(q) T g• of enalties for the material breach by a video ' '
,ordinance, provide a schedule p1.'--1
�•..`= provider of subdivisions (a) to (n),1 inclusive. No monetary penalties shall be
. 1
• lr:: where the breach is out of the reasonable control
.<:�, .: assessed for a material breach
.._ a be im osed rior to • l p ll-,, t
of the video provider. Further, no monetary penalties m y p p
f+'' = effective date of this section. Any schedule of monetary penalties adopted
the ° ° ,� c,
hundred dollars ($200) for ! = '
f��`•• ursuant to this section shall in no event exceed two , F s
•-• .p for r .
• "•:•each dayof each material breach, not to exceed sic hundred dollars ($600
-:-'20:;.3g, of material breach. However, where a material breach of any -.5 A.
each occurrence -�:6.y �
' ' ' (a) to n ` inclusive, has occurred and the city, county, or city •
='' %
• ..s{�.�,=�.of•subdivisions O� sed in a i'
r `� i
'`�-7 and countyhas provided notice and a fine or penalty has been assessed,rr `'�t • ' the ;;. t..; i
.� 4b. material breach of the same nature occurring within 12 months, :Y; ;•
. .e.;: � . sequent �M.,,, ,.
� �`' the city, county, or city and county to a
. may be increased by tyr��penalties
=• ••• for each dayof each material breach, ��:'}� E
u-� •maximum of four hundred dollars ($400)
`t
ti i
• '..'",:!:.1_41
-'•';- of to exceed twelve hundred dollars C$1,200) for each occurrence of e
` • ' ' ' a third or further material breach of the same nature '
;. ��-�=��.'.``-•� atenal breach. Where .'. `
• �_ ;n -r• urs within those same 12 months, and the city, county, or city and county r
' has been assessed, the penalties may 7 ,1
• ' enal
�.� .- =provided notice and a fine or penalty
t • ••' maximum of one thousand dollars ($1,000) for each day of „ ,,,,,.,
e.increased to a ! ��
„..
r i- -ch material'breach, not to exceed three thousand dollars ($3,000) for each 7',�, i
4 -•- .<<# ''” 'al breach. With resect to video providers subsect to a I':_ ,., urience of the maters P
't- - ..-•• penalties assessed under this section shall be
-, �,ti :�Ta�chise or license, any monetary • • penalty' v-�;.: ed damage• or
ig.-.. , �,i,duced dollar for dollar to the extent any liquidat g • 11
- ' . vision of a current cable television ordinance, franchise contract, or license
= 1. ement imposes a monetary obligation upon a video provider for the same
F.• -::-.:-" • .tservice failures, and no other. monetary damages may be assessed.
�, _Amer.
••i never this section shall in no way affect the right of franchising authorities .•- -..w,
•
V '''
C•
, .,,....„. . - . fj:- - •' - - --- -..-:=;. --7:-
1!x•1II
1 § 53088.2. CITIES, COUNTIES, & OTHER''AGEl CIES).P .`•f.
Title 51
concerning assessment or renewal of a cable television franchise under thef ;:;i• , :;It
it - provisions of the Cable Communications Policy Act of 1984. • `,.: .
1vent
- (r) If the 'legislative body of a city, county,- or city and county adopts ai •`; .t•* . ;C
•
• schedule of monetarypenaltiespursuant to subdivision o 3 ,•_ '••;� �c)
� .( ), the following.� �ul _�
procedures shall be followed: . .Y .
_ . bt deh
(1) The city,•county, or city and county shall give the video provider written ;•:,„:7-4.(d), . • C
;• • notice of,any alleged -Material breaches of the consumer service standards of .
•- this division and allow the video provider at least 30 days from receipt.of the.):. .,; •
` (ejIi
• _ notice to remedy the specified breach. -_...
T •',..i , gthe
(2) A material breach for the purposes of assessing penalties shall be deemed ,1
Quency
o- to have occurred for each day, following the expiration of the period sped ed=_:- = 1- =: .:
in paragraph (1), that any material breach has not been remedied by the video -. .-�i (Added 1
provider, irrespective of the number of customers affected. �: ;, '
• (s) Notwithstandingsubdivision m 4 or anyotherprovision of law •-••= .-1-";-'-•§--53u, .
( ). , this
section shall not preclude a partyaffected bythis section from•utilizin any ‘,•:-..-4-,.--' Noty,
g '•
judicial remedyavailable to that partywithout re•and to this section. Actions -t:-,'%-.• -
g for any
. taken by a local legislative body, including a franchising authority, pursuant to •- followii
this section shall not be binding upon a court of law. For this purpose a court " . .%-
• of law may conduct de novo review of any issues presented. j ., time th
: (t) If any provision of this act or the application thereof to any person or ti._ is prov-
circumstances is Held invalid, that invalidity shall not affect other provisions or - ' % `f•r: on deli-
t-.�
applications of the act which can be given effect without the invalid provision =. i '-`":•f:f~-
" ' (b) A
or application, and to this end the provisions of this act are severable. T.. `: •
warnec
(u) This section shall become operative on September 1, 1993. t~ ' 'r : if a cor
(Added by Stats.1992, c. 1198 (A.B.2388), § 1, operative Sept. 1, 1993. Amended by = _. =-T:=_=r`-•. afte_w
at
Stats.1994,c.384(S.B.1941),§ 1.) - .:.'•
• • •' •' ''4 (c) T
I So in enrolled bill. See subdivisions(a)to(p). • _'. elk
�
2.47 U.S.C.A.§ 521 et seq. ;
3 So in enrolled bill. See subdivision(q). ,_:- (d) T
4 So in enrolled bill. See subdivision(o). , - - the illy
(e) T
($10).
Article 4.6 .•i •
-- (Added
C I - UMER CONTRACTS: CABLE TELEVISION `•``
•
Section :- :. § 530
53088.5. Legislative findin: - d declaration. • Notv
53088.6. Fee for delin uent pay a , I t of cable TV services; conditions. •
4
53088.7. Maximum amount of fees; '. requirements. . ; televisi
• 53088.8. Application of article. I
.'C' '4;;;- cents (
'Article 4.6 was added by Stats.1996, •6 (S.B.610), § 1. - =--;--- . dollars
Comm
- - § 53088.5. Legislative findings and declaration `_ _ b ' •.-
.
The Legislature hereby finds and declares as follows: _�� p�
(a) It is a common practice in.the sale or lease of cable television servic- ordelingl
•
--`the de)
a fee.to be imposed upon a consumer's failure to make full and timely paymen -_?r
of periodic charges for those services. =+{ fu1-
72
• -
III III
SCHEDULE 7
CALIFORNIA CIVIL CODE SECTION 1722 (b) (1) - (6)
SERVICE OR REPAIR TRANSACTIONS BETWEEN CABLE TELEVISION
COMPANIES AND THEIR SUBSCRIBERS
• tt
•
la. Cal. CiCal. Civil Code Section 1722.
• •
(b) (1)Cable television companies shall inform their subscribers of their right to service connection or
repair within a four-hour period,if the presence of the subscriber is required,by offering the four-
hour period at the time the subscriber calls for service connection or repair,or by notifying their
subscribers by mail three times a year of this service. Whenever a subscriber contracts with a cable
television company for a service connection or repair which is to take place at a later date,and the
parties have agreed that the presence of the subscriber is required,the cable company shall specify,
prior to the date of service connection or repair,the time for the commencement of the-four-hour
period for the service connection or repair if the subscriber requests.
(2)If the service connection or repair is not commenced within the specified four-hour period,
except for delays caused by unforeseen or unavoidable occurrences beyond the control of the com-
pany,the subscriber may bring an action in small claims court against the company for lost wages,
expenses actually incurred or other actual damages not exceeding a total of five hundred dollars •
($500).
(3)No action shall be considered valid if the subscriber was not present at the time, within the
specified period, that the company attempted to make the service connection or repair.
(4)In any small claims action,logs and other business records maintained by the company or its
agents in the ordinary course of business shall be prima facie evidence of the time period specified
• for the commencement of the service connection or repair and the time that the company or its agents
attempted to make the service connection or repair,or of a diligent attempt by the company to
notify the subscriber of a delay caused by unforeseen or unavoidable occurrences.
(5) It shall be a defense to the action if a diligent attempt was made to notify the subscriber of delay
caused by unforeseen or unavoidable occurrences beyond the control of the company or its agents, or
the company or its agents were unable to notify the subscriber because of the subscriber's absence or
unavailability during the four-hour period,and,in either instance,the cable television company com-
menced service or repairs within a newly agreed upon two-hour period.
(6)No action shall be considered valid against a cable television company pursuant to this section
when the franchise or any local ordinance provides the subscriber with a remedy for a delay in com-
mencement of a service connection or repair and the subscriber has elected to pursue that remedy. If
a subscriber elects to pursue his or her remedies against a cable television company under this section,
the franchising or state or local licensing authority shall be barred from imposing any fine,penalty,or
other sanction against the company,arising out of the same incident.
•
•
Copyright 1997 Jonathan L.Kramer(818)344 5100
011 411
EXHIBIT E
SUPPORT OF LOCAL CABLE USAGE
I . EDUCATIONAL AND GOVERNMENTAL ("EG") ACCESS CHANNELS
A. Governmental Access Channel
(1) Grantee will make available to Grantor, at no
cost to Grantor, one channel (currently Channel 3) for Grantor' s
nonexclusive use for noncommercial governmental programming
purposes .
(2) Grantee will not assume control of the
governmental access channel without Grantor' s prior written
consent, and without compliance with all applicable FCC rules and
regulations .
B. Governmental Access Support
(1) To create high-quality cable programming in
accordance with FCC technical requirements set forth in Part 76,
Subpart K, Grantee will provide, at Grantee' s sole expense, all
equipment necessary to cablecast programming live from Fred Hesse
Jr. Community Park, or other point designated by Grantor, for the
purpose of government-related programming. The equipment will
normally reside at Fred Hesse Jr. Community Park for the
exclusive use of the City programming. All equipment provided to
the Grantor will be newly manufactured equipment of professional
grade. None of the equipment will be consumer-grade, industrial-
grade, remanufactured or used equipment. The equipment will
consist of the following:
(i) Three robotic color television cameras with
memory pre-sets . Cameras will be capable of working
in ambient light with a minor assist from television
lighting
(ii) Three camera control units .
(iii) Three camera remote control devices .
(iv) Low wattage television lighting.
(v) One television switcher/Special Effects Generator
(S. E.G. ) equipped to do fades, wipes and other
standard video mixing.
(vi) Seven color television monitors (3 for cameras,
1 for preview, 1 for program, 1 for electronic still
store and 1 for presentation computer) .
R6876\0001\M:\EXHIBIT E (2) E-1 10/17/00
411 410
(vii) One color television receiver for monitoring
cable system return.
(viii) One combination device for character (text)
generation and electronic still storage with host
computer.
(ix) A complete house/television audio system,
including fourteen microphones with on/off switches
and one handheld microphone.
(x) One audio distribution amplifier.
(xi) One audio patch bay.
(xii) One video patch bay.
(xiii) All necessary cable, wiring, mounting
brackets, and accessories.
(2) Grantee will provide, at Grantee' s sole expense,
all necessary and competent manpower to produce quality
cablecasting of City Council and Planning Commission meetings on
a regular and consistent basis .
(3) Grantee will cablecast live each City Council
meeting. Grantee will cablecast a taped re-play of each City
Council meeting no later than one week after the original live
broadcast . Grantee will cablecast a tape of each Planning
Commission meeting no later than one week after the original
meeting occurred.
(4) Grantee will be responsible for all repairs and
maintenance necessary to guarantee high quality telecasts as
required by FCC technical requirements set forth in Part 76,
Subpart K.
(5) To the extent that cablecasting equipment at
Fred Hesse Jr. Community Park is replaced by Grantee for the
purpose of enhancing governmental programming from that location,
Grantor and Grantee agree that the replaced equipment will be
donated to a school or schools, or other non-profit agencies that
are mutually acceptable to the parties .
(6) Grantee will maintain in good condition all
facilities that are required to transmit live, tape 3/4" delayed
and character generated programming from a central facility for
the benefit of all Rancho Palos Verdes cable customers .
(7) Grantee will continue to cablecast programming
that is designated by Grantor, and Grantor will continue to share
R6876\0001\M:\EXHIBIT E (2) E-2 10/17/00
411
programming time on the government access channel that is also
used by other municipalities on the Palos Verdes Peninsula,
subject to the provisions of Section III below.
(8) At Grantor' s request, Grantee will tape up to
six local events each calendar year. Production will include,
but is not limited to all technical aspects of filming, editing,
mixing, titling, copying and broadcasting the six events . The
six events will be of one-half hour duration. The tapes of local
events will be cablecast no later than four weeks after the
events have occurred. With the exception of the cost of the
Grantor' s staff time to develop concepts, prepare scripts and
select shooting locations and cast, the tapes will be produced at
the Grantee' s sole expense.
(9) At Grantor' s request, Grantee will produce up to
eight public service announcements (PSAs) of approximately 30 to
60 seconds in duration. Production will include, but is not
limited to all technical aspects of filming, editing, mixing,
titling, copying and broadcasting the six events . The tapes will
be cablecast by Grantee no later than four weeks after they have
been produced. With the exception of the cost of the Grantor' s
staff time to develop concepts, prepare scripts and select
shooting locations and cast, the tapes will be produced at the
Grantee' s sole expense.
(10) Grantee will provide to the Grantor, at
Grantee ' s sole expense, one master and one copy of the digitized
videotape of each City Council meeting, public service
announcement, and local events . In the case of City Council
meetings, the tapes will be coded to indicate the start of each
individual item on the agenda. When the technology becomes
available, the digitized videotape medium will be replaced with
digital video disks (DVDs) . The DVDs will be similarly coded to
indicate the start of each item on the agenda.
C. Educational Access Channel
(1) Following a determination by the Grantor' s City
Council that a dedicated educational access channel will provide
a meaningful benefit to the community, taking into consideration
alternative uses for the channel, and that the channel will be
used for a sufficient time to warrant the allocation of a channel
for such use, Grantee will provide to Grantor, at no cost to
Grantor, one channel for noncommercial local educational
programming.
(2) All arrangements to broadcast programming on the
educational channel, whether live, tape-delayed, or direct, will
be subject to the approval of the Grantor, and any material
change in the use of this channel by any person will require the
R6876\0001\M:\EXHIBIT E (2) E-3 10/17/00
Aft
III 111
written approval of the Grantor. The Grantor may require that
any user of the educational access channel give written notice to
the Grantor of any arrangements concerning programming or other
matters related to the use of that channel.
(3) The Grantor reserves the right to delegate the
operation and management of any future educational access channel
to such individuals or entities as it may select, all of whom
must comply with federal, state, and local laws and regulations
relating to the operations of that channel .
(4) Grantee will not assume control of, nor remove
from the Grantor' s control, the educational access channel
without the Grantor' s prior written consent, and without
compliance with all applicable FCC rules and regulations .
II . LOCAL ORIGINATION PROGRAMMING
Grantee will accommodate local origination programming and the
community bulletin board service on the KCOX local channel .
III . FUTURE INCREASE IN CHANNEL CAPACITY FOR "EG" ACCESS
PROGRAMMING
A. Grantee will make available to Grantor, at no cost to
Grantor, an additional channel for Grantor' s exclusive use for
noncommercial governmental or educational programming purposes,
or for both such purposes, within 120 days after receipt of
written notice from the Grantor that the additional access
capacity is required and that the following criteria have been
met :
(1) Governmental Access Channel Use: During any
eight consecutive weeks, the existing governmental access channel
is in use for the cablecasting of locally-scheduled original
programming for 50% of the time during any consecutive five-hour
block from 6: 00 a.m. to 11 : 00 p.m. , Monday through Friday, for
twelve consecutive weeks .
(2) Educational Access Channel Use: During any eight
consecutive weeks, the educational access channel referenced
above in paragraph (C) of Section I is in use for the
cablecasting of locally-scheduled original programming for 50% of
the time during any consecutive five-hour block from 6: 00 a.m. to
11 : 00 p.m. , Monday through Friday, for twelve consecutive weeks .
B. For the purpose of this Section III, the following
terms have the following meanings :
(1) "Locally-scheduled" means that the scheduling,
selection, or playback of original programming on a per-program
R6876\0001\M:\EXHIBIT E (2) E_41 10/17/00
111 110
basis is determined in consultation with, or in accordance with
the operating procedures of, the designated access provider or,
with respect to programming received from an interconnection, the
provider transmitting the programming over the interconnection.
Carriage on any public access channel of all or a substantial
portion of any non-local programming that duplicates programming
carried by Grantee as a part of its basic or expanded basic cable
services will not be considered to be locally scheduled.
(2) "Original programming" means programming in its
initial cablecast on the cable system or in its first or second
repeat .
IV. FUTURE "EG" ACCESS PROGRAMMING NEEDS
Either party to this Agreement may request that the
other party meet and confer to discuss changes in educational or
governmental ("EG" ) access channel requirements, whether
attributable to technological developments, changes in viewership
statistics, unmet demand for additional EG programming, or other
factors . Any modifications to this Exhibit E that are agreed to
by the parties will be memorialized in writing.
R6876\0001\M:\EXHIBIT E E-5 DRAFT 10/3/00