ORD 191 ORDINANCE NO. 191
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
GOVERNING CABLE TELEVISION FRANCHISES HEREINAFTER
GRANTED BY THE CITY OF RANCHO PALOS VERDES AND
AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE
THE CITY OF RANCHO PALOS VERDES DOES ORDAIN AS FOLLOWS:
Ordinance No. 100 is repealed in its entirety.
SECTION 13.12.010 INTENT
A. The City of Rancho Palos Verdes, pursuant to Government Code
Section 53066, is authorized to grant one or more non-exclusive
revocable franchises to construct, operate, maintain and
reconstruct cable television systems within the city limits.
B. The City Council further finds that the development of cable
television and communications systems has the potential of
having great benefit and impact upon the people of the City of
Rancho Palos Verdes. Because of the complex and rapidly changing
technology associated with cable television, the City Council
further finds that the public convenience, safety and general
welfare can best be served by establishing regulatory powers
which should be vested in the City or such persons as the city
shall designate. It is the intent of this Ordinance and subsequent
amendments to provide for and specify the means to attain the best
possible public interest and public purpose in these matters and
any franchises issued by this Ordinance shall be deemed to include
this finding as an integral part thereof.
SECTION 13.12.020 DEFINITIONS
1. "Access Channel" means any program or signal channel available
for non-profit use by government agencies, educational institu-
tions, community groups, and individual members of the public,
under terms established by the franchise.
2. "Additional Subscriber Service" means any service not included
in "basic Subscriber Service," or "Institutional Service," in-
cluding, but not limited to, pay-cable.
3. "Agency Subscriber" means a subscriber who receives a service in
a government or public agency, school of non-profit corporation.
4. "Basic Subscriber Service" means as a minimum the total of all
of the following:
(a) The retransmission to all subscribers of all broadcast
television channel signals required by the FCC to be
carried by a community antenna television system;
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(b) The cable casting to all subscribers of programming on
any local origination channel, or on the public, educational
and government access channels; and
5. "Broadcast Signal" means a television or a radio signal
that is transmitted over the air to a wide geographic audience
and is received by a cable communications system off the air or
by microwave or satellite link.
6. "Cable Television System" not exempted by Government Code
Section 53066.1 or Community Antenna Television System (CATV),
means a system of antennas, cables, wires, lines, towers,
waveguides, or other conductors, converters, equipment or
facilities, designed and constructed for the purpose of producing,
receiving, transmitting, amplifying and distributing, audio, video
and other forms of electronic or electrical signals, located in
the City. Said definition shall not include any such facility
that serves or will serve only subscribers in one or more
multiple unit dwellings under common ownership, control or
management, which does not use the City's rights-of-way.
7. "Cable Usage Corporation" means a non-profit corporation as
defined in Section 13.12.340 herein.
8. "Cablecast Signal" means a non-broadcast signal that originates
within the facilities of the cable communications system.
9. "Channel" means a six-Megahertz (MHz) frequency band, which is
capable of carrying either one standard video signal, a number
of audio, digital or other non-video signals, or some combination
of such signals. The frequencies of these signals shall be on
EIA standard frequencies. All basic subscriber services must be
on standard frequency assignment that can be received by any
standard television receiver for Channels 2-13 or any standard
"Cable Ready" television receiver for channels other than 2-13
without any adapter or converter.
10. "City" or "Grantor" means the City of Rancho Palos Verdes as it
is presently, or may be in the future, constituted.
11. "Completed System" means that Grantee has provided connections or
made service available to all dwelling units and institutional and
commercial facilities in the franchise area to the satisfaction of
Grantor. Exceptions may be considered by the Grantor when a private
property owner denies access to the Grantee.
12. "Converter" means an electronic device which converts signal
characters from one form to another.
13. "Educational Channel" or "Educational Access Channel" means any
channel where education institutions are the only designated
programmers.
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14. "FCC" means the Federal Communications Commission and any
legally appointed or elected successor.
15. "Franchise" shall mean a franchise agreement granted hereunder to
a cable operator and shall include and be deemed to incorporate by
reference all the provisions of this ordinance.
16. "Franchise Fee" means the charges imposed as consideration for the
granting of any franchise under this ordinance, the regulation and
administration of the franchise and the continuing use of the public
streets and rights-of-way of the City of Rancho Palos VERDES by the
Grantee.
17. "Government Channel" or "Government Access Channel" means any
channel where local government agencies are the only designated
programmers.
18. "Grantee" means a cable operator granted a franchise hereunder, and
its lawful successor, transferee or assignee.
19. "Gross Receipts" or "Gross Revenues"
means any and all income, compensation or other consideration
received by Grantee each year from all sources of operation of
the cable television system within the franchise area, except
that any sales, excise or other taxes, or other payments
collected for direct pass-through to local, state or federal
governmental entities, shall not be included.
20. "Guarantor" means the parent company of which shall guarantee
all obligations imposed on the Grantee by the granting of this
franchise.
21. "Head-end" means large master antennae and electronic equipment
used to pick up direct signals from broadcasting facilities, micro-
wave links, satellite programming services, etc., and supplies
these signals into the cable system.
22. "Institutional Service" means such video, audio, data and other
services provided to institutional users on an individual
application, private channel basis. These may include, but are
not limited to, two-way video, audio or digital signals among
institutions, or from institutions to or from residential sub-
scribers.
23. "Leased Channel" or "Leased Access Channel" means any channel
available for leasing and programming by persons or entities
other than Grantee.
24. "Local Origination Channel" means any channel where the Grantee
is the only designated programmer, and provides video programs
to subscribers.
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25. "Monitoring" means observing a one-way communication signal, or
the absence of a signal, where the observer is neither the
subscriber nor the programmer, whether the signal is observed by
visual or electronic means, for any purpose whatsoever.
26. "Pay-Cable" or "Pay-Television" means the delivery to subscribers
over the cable television system of television signals for a fee
or charge over and above the charge for the Basic Subscriber
Television Service, on a per program, per channel, or other
subscription basis.
27. "Person" means an individual, partnership, association, organiza-
tion, corporation or any lawful successor, transferee or assignee
of an individual, partnership, association, organization or
corporation.
28. "Programmer" means any person or entity who or which produces or
otherwise provides program material or information for transmission
by video, audio, digital or other signals, either live or from
recorded tapes or other storage media, to subscribers by means
of the cable television system.
29. "Public Access Channel," "Community Access Channel," or "Community
Channel" means any channel where any member of the general public
or any non-commercial organization may be a programmer, without
charge, on a non-discriminatory basis.
30. "Public Easement" includes, but is not limited to, any easement
created by dedication to the City for public utility use or any
other purpose whatsoever.
31. "Resident" means any person residing in the City of Rancho
Palos Verdes or as otherwise defined by applicable law.
32. "School" means any public educational institution including
primary and secondary schools, colleges and universities and all
other similarly situated public institutions which have received
appropriate accreditation from the State of California, and
where required, from other authorized accrediting agencies.
33. "Service Area" means the entire geographic area within the
franchise territory.
34. "Street" shall include each of the following which have been
dedicated to the public or hereafter dedicated to the public
and maintained under public authority by others and located
within the city limits: streets, roadways, highways, avenues,
lanes, alleys, sidewalks, easements, rights-of-way and similar
public ways and extensions and additions thereto.
35. "Subscriber" means any person, firm, corporation or any entity
who or which elects to subscribe to, for any purpose, a service
provided by Grantee by means of or in connection with the cable
television system.
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36. "Subscriber Revenues" or "Gross Subscriber Revenues" means
those revenues derived from the monthly service charges paid by
subscribers located within the authorized franchise service
area. Subscriber revenues shall include revenues received as
installation charges and fee for reconnections, connections,
inspections, repairs or modifications of any installations or
services. Subscriber revenues shall also include the following:
(a) "Gross annual basic subscriber receipts" means any and all
compensation and other consideration received directly or
indirectly by grantee from subscribers in payment for the
basic service of the cable television system.
(b) "Gross annual additional subscriber service receipts"
means any and all compensation and other consideration received
directly or indirectly by the grantee from subscribers or users
in payment for the receipt of additional subscriber services.
(c) "Gross annual advertising receipts" means any income,
compensation and other consideration received by the
grantee derived from any form of advertising.
(d) "Gross annual lease receipts" means any fees or income
received by the grantee for the lease or rental and compensa-
tion for any service in connection therewith, including but
not limited to studio and equipment rental and projection
costs of any channel permitted or designated by the FCC to
be so leased or rented.
37. "Tapping" means observing a communications signal exchange,
where the observer is neither of the communicating parties,
whether the exchange is observed by visual or electronic means,
for any purpose whatsoever.
SECTION 13.12.030 TERM OF THE FRANCHISE
A. Term
A franchise granted hereunder shall be for a term established by
the Grantor for a period commencing on the date of the Grantor's
adoption of an ordinance authorizing the franchise.
B. Renewal
1. A franchise granted hereunder may be renewed upon application by
by Grantee pursuant to the provisions of this Section and
applicable State and Federal law.
2. A written application for renewal shall be filed at least twenty-
four (24) months prior to the expiration of a franchise.
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3. A renewal application shall be considered at a duly noticed public
hearing which shall be held no later than four months after the
application is filed. Mailed notice of the hearing shall be
given to the Grantee at least twenty (20) days prior to the hear-
ing. Grantor shall make its determination at least twelve (12)
months prior to the expiration of the franchise. The determina-
tion granting or denying renewal shall be in writing and shall
include findings as to the reason for the determination.
4. Grantor may condition renewal upon compliance with any amendments
to this Chapter and applicable State and Federal law. Renewal
may be denied upon any of the following grounds provided that the
Grantee has first been given notice and opportunity to cure any
deficiency in operation or violation of the Grantee's obligations
under this Chapter or the franchise.
A. The Grantee lacks the financial, legal or technical ability
to provide the services set forth in its proposal.
B. The Grantee' s proposal is not adequate or reasonable to meet
the future cable-related needs of the community, taking into
account the technical and financial feasibility of meeting
such needs and interests.
C. The Grantee has not complied with the terms and conditions
of the existing franchise, this Chapter or applicable State
and Federal law.
D. The quality of the service provided by the Grantee, including
signal quality, billing practices and responses to subscriber
complaints, has not been satisfactory or reasonable in light
of community needs.
5. If the Grantee does not accept a renewal granted pursuant to this
Section within ninety (90) days of the determination granting the
renewal, the franchise shall terminate on the date of expiration
set forth in the existing franchise.
6. Failure of a Grantee to apply for renewal of a franchise pursuant
to this Section shall mean that the Grantee intends to dispose
of its franchise property at the expiration of the existing
franchise in accordance with the provisions of this Chapter.
SECTION 13.12.040 FRANCHISE TERRITORY
Any franchise shall be within the territorial limits of the City of
Rancho Palos Verdes, California, and within any area henceforth added
thereto during the term of the franchise.
A. In the event any new territory shall become annexed to the
City then the Grantor shall determine at a public hearing,
which Grantee or Grantees, if any, shall serve such new territory.
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B. In the event any portion of unincorporated territory covered by
an existing franchise or license granted by the County of
Los Angeles is annexed to the City after the grantee thereof
has commenced or completed construction and installation of a
CATV system within said territory, the rights reserved under
such franchise or license to the County of Los Angeles or to
any officer thereof, shall inure to the benefit of the Grantor
and all regulatory provisions of this Chapter and any other
rules and regulations applicable to CATV systems operating
within the City, whether then in effector subsequently
adopted, shall be applicable to and binding upon said Grantee.
In addition, the Grantee shall be obligated to pay annually to
the Grantor, the percentage of the gross receipts established
by the County of Los Angeles in said franchise or license.
C. In the event any portion of the unincorporated territory covered
by an existing franchise or license granted by the County of
Los Angeles is annexed to the City prior to the time that the
Grantee of such County franchise or license has commenced
installation of a CATV system within said territory, all rights
acquired by said Grantee under its County franchise or license
shall terminate by operation of law as of the date on which the
annexation to the City becomes effective.
SECTION 13.12.050 FRANCHISE TO INSTALL AND OPERATE
A franchise granted by the City under the provisions of this
Chapter 13.12 shall encompass the following purposes:
A. To engage in the business of cable television service and the
distribution and sale of such service to subscribers within the
designated service area.
B. To erect, install, construct, replace, and retain poles,
coaxial cable, conductors, amplifiers, television antenna,
supporting structures, and appurtenances in, along and across
street or other public places within the designated service area
provided, however, that any such poles, or attachments, may not be
erected or maintained in any public highway and/or private easement
in which there then exists or is being erected a pole line of any
public or private corporation or person engaged in service to the
public as an electric or telephone public utility, and which pole
line is reasonably available to the grantee for use pursuant to a
pole contract rental agreement.
C. To maintain and operate said franchise properties for the origina-
tion, collection, transmission, amplification, distribution and
reception of television and radio signals.
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SECTION 13.12.060 FCC or CALIFORNIA PUBLIC UTILITIES COMMISSION (PUC)
JURISDICTION
This Ordinance shall be construed in a manner consistent with all
applicable Federal and State laws. Whenever the Federal Communications
Commission or Public Utilities Commission of the State of California
or any other federal or state agency shall now or hereafter exercise any
paramount jurisdiction over any specific provisions of this Ordinance,
such paramount jurisdiction shall preempt or preclude the exercise of
like jurisdiction by the City. Any modification of such Federal or
State law shall to the extent applicable be considered a part of this
Ordinance as of the effective date of such modification.
SECTION 13.12.070 APPLICATION - REQUIRED
Any person desiring a franchise or license for a cable television
system or renewal shall file an application with the City. An application
fee established by the City shall accompany the application or renewal
to cover costs associated with the application.
SECTION 13.12.080 APPLICATION CONTENTS
An application for a franchise or license or transfer for a cable
television system shall contain, where applicable:
A. Designation of specific area to be served by franchise;
B. Resume of prior history of applicant, including the expertise
of applicant in the cable television field;
C. List of the partners, general and limited, if the applicant is
a partnership and a list of the persons and/or entities involved
if the applicant is a joint venture;
D. List of stockholders of applicant and percentage of stock owned
or controlled by each shareholder. List shall include all
principals, officers, directors, managing employees and all
persons having a legal or equitable interest in five percent
(5%) or more of its voting stock;
E. List of officers of applicant, together with a description of
education and business background of each officer;
F. A current financial statement of applicant verified by a CPA
audit. If statement is unavailable, then the following will be
required:
1. Letters of credit,
2. Letters from person verifying or having knowledge of
applicant's business experience, technical expertise
and financial status,
3. Itemized business bank accounts, if any, together with
name, and location of banks handling accounts.
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Applicant will be required to authorize release of
financial information to Grantor from financial
institutions relating to information supplied by
applicant in support of the application;
G. Proposed construction schedule, providing for at least 33-1/3
percent construction per year for three years;
H. Street map of area to be served including the location of
proposed or existing head-end site (antenna site) and business
office;
I. Legal description of area to be served;
J. Proposed rates and charges to be charged subscribers;
K. Itemized electronic equipment to be used, channels to be
provided, pay T.V. or additional services and type of converter;
L. Technical market survey of area and economic analysis including
number of homes, population, income bracket and percent of
those requesting service, if available;
M. The names and addresses of any parent or subsidiary of applicant
or any other business entity owning or controlling applicant in
whole or in part, or owned or controlled in whole or in part by
applicant;
N. A signed statement by an officer that no principal, officer, Director
or managing employee:
1. Has ever been convicted or held liable for acts involving
moral turpitude (including, but not limited to, charges
sustained before any federal or state agency, or violation
of any tax or securities law), or is presently under any
indictment, investigation or complaint charging such
acts;
2. Has ever had a judgment in an action for fraud, deceit or
misrepresentation entered against it, her, him, or them by
any court of competent jurisdiction; or
3. Has pending any legal claim, lawsuit or administrative
proceeding arising out of or involving a cable television
system.
0. Any reasonable additional requirements that the City deems to be
applicable.
SECTION 13.12.090 SETTING FOR PUBLIC HEARING
The City Clerk shall set applications for hearing at a time and
date approved by the Grantor.
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SECTION 13.12.100 NOTICE OF HEARING
Not less than fifteen (15) days before the hearing, the City clerk shall
give notice in writing of the time, date and place of hearing to the
applicant. The City Clerk shall serve such notice upon the applicant
either by first-class mail, postage prepaid, or by personal delivery
thereof to applicant.
SECTION 13.12.110 POSTING NOTICE
The City Clerk shall cause a notice to be posted in four places within
the area to be served stating the time, date and place of a hearing not
less than fifteen (15) days prior to the hearing.
SECTION 13.12.120 CONTENTS OF POSTED NOTICE
The posted notice of hearing shall state the applicant's statement
of prices to be charged and also shall state:
Persons in favor of or having objections to the granting of the
franchise or license for which application is made, or wishing
to suggest any other terms and conditions which should be
included in such franchise or license, at any time prior to the
date above named may file with the City Clerk in writing
objections or suggestions, or both, giving reasons therefor, and
they may appear at the time and place of the hearing to be heard
relative thereto.
SECTION 13.12.130 PUBLICATION
The City Clerk shall publish in a newspaper of general circulation
circulated within the area to be served and pursuant to Section 6063
of the Government Code the same notice as is required to be posted.
SECTION 13.12.140 COMMENTS BY INTERESTED PERSONS
Any person interested, at any time after the filing of an application
as provided in this Chapter, and prior to the hearing thereon, may
file with the City Clerk written comments, protests, and/or suggestions,
either for or against the granting of the franchise or license or to
suggest any terms and conditions which should be included in the
franchise or license. The Grantor in considering the applications,
shall give consideration to all such protests and suggestions.
SECTION 13.12.150 CONDUCT OF HEARING
At the time and place set for the hearing or at the time and place
to which the hearing may be continued by the Council, the Council
shall hear the applicant, who may present any relevant evidence to
show why the franchise or license should be granted, why certain
terms or conditions should be imposed or not imposed on such
franchise or license if granted, and also shall hear testimony or
statement of other persons who may attend the hearing and present
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reasons why the application should be denied or granted, or why, if
granted, the franchise or license should or should not be subject to
certain conditions.
SECTION 13.12.160 DECISION AFTER HEARING
Within thirty (30) days after the close of the hearing, and based
upon the evidence received at the hearing the Council shall make a
decision as to whether or not the application should be granted,
and, if granted, subject to what conditions. The Council shall send
a copy of its decision to the applicant.
SECTION 13.12.170 FRANCHISE NON-TRANSFERABLE
In addition to the restrictions set forth in Section 53066 of the
Government Code, the franchise shall not be sublet or assigned, nor
shall any of the rights, privileges therein granted or authorized be
leased, assigned, sold or transferred, either in whole or in part,
nor shall title thereto, either legal or equitable, or any right,
interest or property therein, pass to or vest in any person, except
Grantee, either by act of Grantee or by operation of law, without
the prior consent of the Grantor expressed by ordinance, such
consent not to be unreasonably withheld or delayed. Grantee, upon
transfer as heretofore provided, shall within sixty (60) days
thereafter, file with Grantor a copy of the deed, agreement,
mortgage, lease, or other written instrument evidencing the sale,
transfer, lease, or assignment, certified and sworn as correct by the
Grantees. No rights or privileges granted under the franchise shall
inure to the benefit of the transferee, assignee, vendee or lessee until
all the provisions of this Section and Sections 13.12.180 and 13.12.190
have been satisfied.
SECTION 13.12.180 CHANGE IN CONTROL
Grantee shall promptly notify Grantor of any actual or proposed
change in, or transfer of, or acquisition by any other party of,
control of the Grantee. The word "control" as used herein is not
limited to major stockholders or partnership interests, but includes
actual working control in whatever manner exercised. A rebuttable
presumption that a transfer of control has occurred shall arise
upon the acquisition or accumulation by any person or group of
persons of ten percent (10%) of the voting shares of Grantee.
Every change, transfer, or acquisition of control of the Grantee
shall make the franchise subject to cancellation unless or until
Grantor shall have consented thereto, which consent shall not be
unreasonably withheld or delayed.
SECTION 13.12.190 GRANTEE TO SHOW QUALIFICATIONS OF TRANSFEREE
For the purpose of determining whether it shall consent to such
change, transfer, or acquisition of control, Grantor may inquire
into the qualifications of the prospective transferee or controlling
party, and Grantee shall assist Grantor in any such inquiry. In
seeking Grantor's consent to any change of ownership or control,
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Grantee shall have the responsibility of insuring that transferee
completes an application as required of initial franchise applicant
described herein. Application shall be submitted to Grantor not
less than ninety (90) days prior to date of transfer.
SECTION 13.12.200 GEOGRAPHICAL COVERAGE
A. Grantee shall, except as provided in paragraph B of this Section,
design, construct and maintain the cable television system to pass
every single-family dwelling unit, multiple-family dwelling unit,
hospital, rest-home, boarding house, school, commercial facility,
institutional and governmental building within the area of the
franchise.
After service has been established by activating trunk cables for any
area, Grantee shall provide service to any requesting subscriber
within that area thirty (30) days from the date of request.
B. Upon approval from the Grantor, Grantee may take exception to the above
based on a line extension formula, approved by the Grantor, that requires
the applicant requesting service in these areas to either pay a propor-
tionate share of the excessive cost of extending service to these
areas and/or a higher monthly fee as determined by the Grantee
with approval by the Grantor, if and only if it can be shown that the
cost for line installation is higher than that of similar installations
in the Grantee's existing service areas of Rancho Palos Verdes after
adjustment for inflation.
In no case can an exception be granted for the infill of areas within
an existing franchise boundaries, except as approved by Grantor.
SECTION 13.12.210 RESPONSIBILITY FOR SIGNAL QUALITY
Grantee shall retain full responsibility for the quality of cable
television service as provided in Section 13.12.240 to all recipients
of redistributed service (i.e., through microwave, master antennae or
satellite redistribution). Grantee shall be presumed to have retained
such responsibility together with all obligations arising from the
franchise, including but not limited to charges to the ultimate recipient
for service.
SECTION 13.12.220 FCC COMPLIANCE
A. Grantee shall, at all times, comply with the rules and regula-
tions governing CATV operations promulgated by the FCC specifi-
cally but not limited to those set out in Section 76.31 of Title 47
of the Code of Federal Regulations. This shall include adherence by
the Grantee to FCC rules regarding technical and engineering speci-
fications involved in the construction of the CATV system and signal
carriage therein.
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B. Consistent with the requirements of Section 76.3 (a) (6) of
the FCC, any modification(s) of Section 76.31 resulting from
amendment thereto by the FCC shall to the extent applicable to
be considered as a part of the franchise as of the effective
date of the amendment made by the FCC.
C. In recognition of extensive use of the Palos Verdes Peninsula
as a point of origin of numerous radio communication services
the Grantee shall use all necessary measures to solve any inter-
ference problems pursuant to FCC Rule Section 76.613(b) and
76.605. A continous and vigilant maintenance program is required
of the Grantee in order to prevent any CATV interference. The
Grantee shall take all steps necessary to prevent signal leakage
as specified in FCC Rule Section 76.613.
If such steps are not taken the Grantor shall request the FCC
to enforce the rules and levy fines for violations.
D. Remedies for failure to meet FCC rules and regulations are provided
for in Section 13.12.700.
SECTION 13.12.230 MINIMUM SERVICE STANDARDS
A. Grantee shall distribute in color those television signals which
it receives in color.
B. Grantee shall render such service to subscriber as will meet or
exceed FCC technical and performance requirements.
C. The Grantee shall designate a channel which will be used for
emergency broadcasts of both audio and video. The Grantee
shall cooperate with the City in the use and operation of the
emergency alert system. Such channel may include government,
public and educational access channels.
D. The Grantee shall render efficient and continuous service, making
repairs promptly and interrupting service only for good cause and
for the shortest time possible; such planned interruptions insofar
as possible shall be preceded by notice given to subscribers and
Grantor twenty-four (24) hours in advance and shall occur during
the periods of minimum use of the system when feasible. No charge
shall be made to the subscriber for this service unless failure
is caused by subscriber's own negligence.
E. The Grantee may petition the City to authorize the suspension or
abandonment of service upon such reasonable terms and conditions as
may be prescribed by the City.
SECTION 13.12.240 SUBSCRIBER COMPLAINTS
A. The Grantee shall limit system failures to minimum time duration
by locating and correcting malfunctioning promptly, but in no
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event longer than twenty-four (24) hours after occurrence,
irrespective of holidays or other nonbusiness hours.
B. Upon complaint by any subscriber, the Grantee shall have the
burden to satisfy the City that a signal is being delivered
which is of sufficient strength and quality to meet standards
contained in the FCC rules and regulations.
C. The Grantee shall maintain a written complaint record containing the
following information:
1. Date and time of subscriber complaint;
2. Identification of the complaintant by name and address;
3. A record of when and what action was taken by the Grantee
to resolve the complaint.
D. Said record shall be kept at the Grantee's local office for a
period of two (2) years after receipt of any such complaint. A
copy of said complaint record shall be submitted by the Grantee
to City within ten (10) days following receipt of a written
request therefor by City.
E. The Grantee shall provide each subscriber in the authorized
franchise area with a notice identifying City as the franchising
authority, indicating the local business headquarters office of
the Grantee to handle subscriber complaints, and identifying
the City as the referral agency if any problem regarding the
CATV service or rates is not resolved by the Grantee to the
reasonable satisfaction of the subscriber.
The Grantor may assist in the resolution of any consumer complaints.
Subscribers and Grantee may call upon this service.
F. The Grantee shall maintain a local business headquarters office near
the franchise area and provide the title, address, and phone number
of a person who will act as the Grantee's agent to receive complaints
regarding quality of service, equipment malfunctions and similar
matters. The local office shall be open to receive inquiries or
complaints from subscribers during normal business hours.
A toll free telephone number shall be available to all sub-
scribers located within the franchised area for the reporting of
service problems on a twenty-four (24) hours per day, seven (7) days
per week, three hundred sixty-five (365) days per year basis.
G. Grantee shall furnish each subscriber at the time service is
installed written information that clearly sets forth: (1) the
method of requesting general information about the cable system,
service, and correction of billing problems, (2) the method of
registering a complaint about Grantee' s service. Such information
shall include the title, address and local telephone number of the
employee or employees to whom such requests or complaints are to
be addressed, and the name, address and local telephone number of
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Grantee's regional manager. Grantee shall also furnish information
concerning the City office responsible for administration of the
franchise with the address and telephone number of the office.
SECTION 13.12.250 PROHIBITED ACTIVITIES
The Grantee, or any of its agents or employees, shall not sell,
or otherwise make available to any party;
A. Lists of the names and addresses of subscribers, and
B. Any list which identifies the viewing habits of individual
subscribers. This does not prohibit the Grantee from providing
composite ratings of subscriber viewing to any party.
SECTION 13.12.300 FRANCHISE FEE
1. Following the issuance and acceptance of the franchise, the Grantee
shall pay to the Grantor a franchise fee of five percent (5%) of
annual gross revenues. The first three (3) quarterly payments shall
be estimated and payment due no later than thirty (30) days following
the end of each calendar quarter. The fourth and final quarterly
payment shall be computed on actual year end revenues and payment
shall be due no later than ninety (90) days following the end of the
calendar year. The fourth quarter payment shall be adjusted to
reflect previous estimated payments. If, at any time in the future,
federal and state limitations on franchise fees are no longer in
force, the Grantor shall have the right to negotiate for such higher
franchise fees as Grantor deems appropriate. The Grantee shall pay
to the Grantor an amount equal to the total of the following derived
from its operations within the authorized franchise service area:
(a) Five percent (5%) of its gross annual basic subscriber
receipts;
(b) Five percent (5%) of its gross annual additional subscriber
service receipts;
(c) Five percent (5%) of its gross annual advertising receipts;
(d) Five percent (5%) of its gross annual lease receipts;
2. Checks for all such payments shall be made payable to the City
of Rancho Palos Verdes and shall be submitted to the Finance Director.
Franchise fees remitted by mail shall be deemed timely filed only if
the envelope enclosing the franchise fee is addressed to the City
and bears a postmark on or prior to the due date.
3. Each payment shall be accompanied by statement of the Manager, or
other Grantee officer of equal authority, showing in detail the
facts material to the determination of the amount due.
4. In the event the Grantee fails to make the payments for the franchise
on or before the dates due as provided in this Section, Grantee shall
pay interest on the amount due at the rate of eighteen percent (18%)
per year or the maximum allowed by law from the date due until paid.
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5. The Grantee shall keep and preserve, for a period of three (3) years
subsequent to the date of the most recent franchise fee determination,
all the records necessary to determine the amount of such Grantee fee,
including but not limited to all business records and bank statements.
SECTION 13.12.310 SECURITY FUND
Within thirty (30) days of the effective date of a franchise, Grantor may
require Grantee to deposit into an interest bearing bank account, established
by Grantor, a sum established by Grantor as a security fund. This sum shall
be maintained on deposit throughout the term of the franchise in an account
bearing the maximum interest permitted by law, which interest shall be
payable to Grantee.
The security fund shall be available to Grantor to satisfy any and all
claims, liens and/or taxes due Grantor from Grantee which arise by reason
of construction, operations, or maintenance of system.
Grantee may withdraw the interest on the security fund at any time. However,
during the existence of the security fund, Grantee agrees not to withdraw
any part of the principal amount. Subject to Grantor approval, the security
fund requirements may be satisfied by conveyance of an irrevocable letter
of credit to the Grantor, in a form approved by Grantor.
SECTION 13.12.320 ABANDONMENT OR REMOVAL OF FRANCHISE PROPERTY
A. In the event that the use of any franchise property or a portion there-
of is discontinued for a continuous period of twelve (12) months,
Grantee shall be deemed to have abandoned the franchise property.
B. In addition, the Grantor, upon such terms as Grantor may impose,
may give Grantee permission to abandon, without removing, any system
facility or equipment laid, directly constructed, operated or
maintained under the franchise. Unless such permission is granted,
the Grantee shall remove all abandoned facilities and equipment upon
receipt of written notice from Grantor and shall restore the highway
to its former state at the time such facilities and equipment were
removed, as near as may be, so as not to impair its usefulness.
C. Upon abandonment of any franchise property in place, the Grantee, if
required by the Grantor, shall submit to the Grantor an instrument,
satisfactory in form to the City Attorney, transferring to the
Grantor the ownership of the franchise property as abandoned.
SECTION 13.12.330 CABLE USAGE CORPORATION
Grantor may establish, and Grantor shall have the right to establish as a
term of any franchise granted hereunder, a public benefit, non-profit
corporation to receive and allocate support funds and other consideration
for the purpose of promoting and developing local usage of the cable
television system.
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SECTION 13.12.340 DESIGN AND CONSTRUCTION REQUIREMENTS
A. All franchise property to be constructed and operated under the
franchise shall be built and constructed of first class materials
in a good and workmanlike manner and shall be maintained in good
working condition.
B. Grantee shall not construct or install any poles, conduits or
other system facilities within City highways until the Grantee has
secured the necessary permits from the City or obtained any other
necessary authorization from City, and obtained permission from the
Federal Aviation Authority to erect and maintain antennas suitable
to the needs of the system and its subscribers.
C. In those areas of the City where transmission or distribution
facilities of the public utility providing telephone or electric
power service are underground, the Grantee likewise shall construct,
operate and maintain all of its transmission and distribution
facilities therein underground.
D. In those areas of the City where Grantee's cables are located on
the above-ground transmission or distribution facilities of the
public utility providing telephone or electric power service, and
in the event that such public utility facilities or any part
thereof subsequently are placed underground, then the Grantee
likewise shall reconstruct, operate and maintain its transmission
and distribution facilities underground.
E. Amplifiers and other electrical facilities to service underground
cables may be pad-mounted.
F. If any portion of any street is damaged by reason of installation
or existence of any facility constructed under this franchise, the
Grantee thereof shall, at its own expense, immediately following
written or oral notification thereof, repair any such damage and
put such street in as good condition as it was before such damage,
to the satisfaction of the City Manager, or such person as designated
by the City Manager. Verbal notification will be confirmed in
writing within forty-eight (48) hours.
Grantee shall maintain and upgrade the system and services to
reflect those technical and economic developments occurring
during the term of the franchise which will benefit the public in
terms of new and more: effective and efficient service, when such
services prove to be cost-effective.
SECTION 13.12.400 ESTABLISHMENT OF SERVICE
A. Within thirty (30) days after acceptance of a franchise, a
Grantee shall proceed with due diligence to obtain all necessary
permits and authorizations which are required in the conduct to
its_ :business. In connection therewith, copies of all petitions,
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applications and communications submitted by a Grantee to the FCC,
or any Federal or State regulatory body having jurisdiction in
respect to any matter affecting Grantee's cable television operation
in Rancho Palos Verdes shall also be submitted concurrently to the
City Clerk.
B. Grantee shall, within eighteen (18) months after acceptance of
franchise, obtain all necessary permits and authorizations as
indicated in subsection "A" of this Section. Grantee shall notify
Grantor in writing when all such permits and authorizations have
been obtained, should a Grantee be unable to comply with the
requirements of this subsection within the time specified herein,
the franchise granted in this Chapter shall become null and void and
the Grantee shall have no rights thereunder, provided however, that
the Grantor may for good cause shown by the Grantee grant extensions
of time to comply with this requirement.
C. Within ninety (90) days after obtaining the necessary permits
and authorizations, Grantee shall have commenced construction and
installation of the cable television system. Grantee shall notify
City in writing, within ten (10) days thereof of the date of commence-
ment of construction and installation work.
SECTION 13.12.410 INTERCONNECTION
A. The Grantee shall make all reasonable efforts to electrically inter-
connect with CATV Systems in other franchise areas of the City and
adjacent communities for the purpose of sharing locally originated
public and educational programming. Such an interconnect shall be
effected by coaxial cable, fiber optic cable, microwave or other bi-
directional signal transportation means as appropriate to permit
programming interchange in compliance with the technical provisions
of this Ordinance. Within six (6) months of the effective date of a
franchise, the Grantee shall contact all franchised operators in
communities and other franchised areas immediately adjacent to the
franchised area for the purposes of exploring and securing a mutually
acceptable system interconnect agreement and report the results of
said activity to the City Manager.
Said report shall state each contacted operator's name, city and
response, list all programming activity available to Rancho Palos
Verdes residents via such an interconnect agreement as well as list
programming to similarly be transmitted from Rancho Palos Verdes to
the adjacent community and explain the substance of the government
business agreement entered with the other operators.
B. If an adjacent operator(s) is not responsive to the Grantee's inquire,
a letter report, stating that all reasonable attempts to gain an inter-
connect agreement were made but unsuccessfully, shall be filed with the
City.
C. In the case of adjacent new CATV systems constructed in adjacent
communities after the Rancho Palos Verdes system, the Grantee shall have
a period of six (6) months after the new system becomes operational to
make the required inquiries and attempt at an interconnect agreement.
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SECTION 13.12.420 TECHNICAL STANDARDS
A. The Grantee shall construct, install, operate and maintain its
system in such a manner consistent with all laws, ordinances,
construction standards, governmental requirement, FCC technical
standards, and detailed standards submitted by the Grantee as part
of its application. It addition, the Grantee shall provide the
Grantor, upon request, with a written report of the results of the
Grantee annual proof of performance tests conducted pursuant to FCC
standards and requirements.
B. The Grantee shall continue, through the term of the franchise,
to maintain FCC technical standards and quality of service set
forth in this ordinance. Should the Grantor find that the Grantee
has failed to maintain FCC technical standards and quality of
service, and should the Grantor specifically enumerate improvements
to be made, the Grantee shall make such improvements. Failure to
make such improvements within three (3) months of such notification
will constitute a breach.
C. When the Grantee fails to meet technical standards of the FCC, the
Grantor shall request enforcement of the rules by the FCC and for
the levy of fines as provided for in the rules.
D. All basic subscriber services must be on standard channel assignments
that can be received by any standard television receiver for channels
2-13 and any standard "cable ready" television receivers for channels
other than 2-13 without any adapter or convertor, unless otherwise
approved by Grantor.
SECTION 13.1.2.430 REGULATORY AUTHORITY
Grantor shall exercise appropriate regulatory authority under the
provisions of this Ordinance and applicable law. Grantor may, at its
sole option, participate in a joint regulatory agency, with delegated
responsibility in the area of cable related communications.
SECTION 13.12.440 REGULATORY RESPONSIBILITY
Grantor may exercise or delegate the following regulatory responsibilities:
A. Administering and enforcing the provisions of this franchise.
B. Coordination of the operation of facilities and access channels.
C. Providing for technical, programming and operational support to
public agency users, such as city departments, schools and health
care institutions.
D. Establishing procedures and standards for institutional operations
and services, use of dedicated channels, and sharing of public
facilities.
E. Planning expansion and growth of public cable service.
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F. Analyzing the possibility of integrating cable communications
with other city, state or regional telecommunications networks.
G. Formulating and recommending long-range telecommunications plans.
SECTION 13.12.450 ANNUAL REVIEW OF SYSTEM PERFORMANCE
Each year throughout the term of the franchise, if requested by the
Grantor, Grantor and Grantee shall meet publicly to review system
performance and quality of service.
The various reports required pursuant to this ordinance shall be utilized
as the basis for review. In addition, any subscriber may submit complaints
during the review meetings, either orally or in writing, and these
shall be considered. Within thirty (30) days after the conclusion of
a system performance review meeting, Grantor shall issue findings with
respect to the adequacy of system performance and quality of service.
If inadequacies are found, Grantor may direct Grantee to correct the
inadequacies within a reasonable period of time. Failure of Grantee,
after due notice, to correct the inadequacies shall be considered a
material breach of the franchise, and Grantor may levy any penalty within
the scope of this Ordinance considered appropriate.
SECTION 13.12.460 CITY REVIEW OF SYSTEM PERFORMANCE
A. When there have been similar complaints made or where there exists
other evidence which, in the judgment of the Grantor, casts reasonable
doubt on the reliability or quality of cable service, the Grantor
shall have the right to compel the Grantee to test, analyze and
report on the performance of the system in order to protect the
public against substandard cable service. Such test or tests shall
be made and the report thereof shall be delivered to the Grantor no
later than fourteen (14) days after the Grantor notifies the Grantee
that he is exercising such right. Such report shall include the
following information:
The nature of the complaints which precipitated the special
tests; what system component was tested; the equipment used and
procedures employed in said testing; the results of such tests;
and, the method in which such complaints were resolved. Any
other information pertinent to the special test shall be recorded.
B. Said tests and analyses shall be supervised at the expense of the
Grantee, if so requested by the Grantor, by a professional
engineer who is not on the permanent staff of the Grantee. The
engineer shall sign all records of such special tests and forward
such records to the Grantor with a report interpreting the
result of the tests and recommending actions to be taken.
C. In the event that the Grantee shall fail to make the improvements,
repairs or adjustments to the system necessary to restore the
reliability or quality of cable service within sixty (60) days
after the Grantor has given notice to the Grantee that Grantor is
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exercising the right to compel the Grantee to test, analyze and
report on the performance of the system as set forth in paragraph A
of this Section, the Grantee shall pay to the Grantor the sum of
five hundred dollars ($500.00) per day for each day that the
Grantee has failed to remedy such deficiency, unless the Grantee
proves to the reasonable satisfaction of the Grantor that the delay
was caused by factors beyond the control of the Grantee, or is
otherwise waived by the Grantor for good cause shown.
SECTION 13.12.500 RATES
A. Any franchise granted hereunder shall specify all rates and charges
for services to subscribers, including but not limited to, basic
service, additional service, installation, additional hookups and
charges for specialized classes for service.
B. Rates for subscriber service shall not be increased at any time after
the granting of a franchise except as provided in Section 13.12.510.
This provision and the provisions of Section 13.12.510 shall apply to
the extent permitted by State and Federal law.
C. Grantee shall notify the Grantor of its intent to revise any rates
not subject to regulation hereunder in writing at least thirty (30)
days prior to the effective date of such revised rate.
SECTION 13.12.510 RATE CHANGE PROCEDURE
A. In the event that Grantee desires to change- any rate or rates
subject to regulation pursuant to this Chapter, Grantee shall file a
petition with the Grantor at least ninety (90) days prior to the
proposed date of rate change. Said petition shall set forth the
proposed changes and the reason as upon which said changes are
based. Upon receipt of said petition for rate change the Grantor
may conduct a study and make recommendations concerning said rate
change request. Following completion of said report and recommenda-
tion, Grantor shall hold a public hearing on the rate change request.
Notice of any such hearing shall describe any rates or charges to be
fixed or changed, the reasons therefor, and setting forth the time
and place when and where any persons having any interest therein may
appear before the Grantor and be heard. The City Clerk shall publish
the notice at least fifteen (15) days before the hearing in a newspaper
of general circulation within the City. The City Clerk shall also
cause a copy of such notice to be mailed to the Grantee at least
fifteen (15) days prior to the date specified for the hearing.
B. Grantee's application for a rate increase shall include, at a
minimum, the following financial reports, which shall reflect
the operations of the system;
1. Balance Sheet.
2. Income Statement.
3. Statement of Sources and Application of Funds.
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4. Detailed supporting schedules of expenses, income, assets and
other items as may be reasonably required.
5. Statement of current and projected subscribers and penetration.
C. Following said public hearing, Grantor may establish and fix rates or
charges so as to provide a rate of return reasonable and fair to the
Grantee and the public.
D. The Grantor shall consider, but shall not be limited to, the
following factors in approving or disapproving the application:
1. Grantee's substantial fulfillment of all material requirements
of the franchise.
2. The quality of service, as indicated by the number and type
of service complaints, Grantee's response to complaints, and
the result of periodic system performance tests.
3. Prevailing rates for comparable services in other cable
systems of similar size and complexity.
4. Changes in the Consumer Price Index (CPI) for the Long Beach -
Los Angeles area.
5. Changes in Grantee's operating expenses.
E. Grantor shall adopt a resolution approving, disapproving or modifying
the proposed rates change request which resolution shall establish
and fix any new rates or charges therein. Such resolution shall
thereupon be part of any franchise granted under this Ordinance. In
addition, said resolution shall set forth findings of fact and
conclusions to support said determination of Grantor in connection
with said rate change request.
F. Grantor shall render its decision within sixty (60) days after
receipt of the petition for change of rate except that said period
may be extended for an additional thirty (30) days upon the consent
of the Grantee. In the event that the Grantor does not make a
decision within the time periods heretofore mentioned, Grantee may
institute the proposed rate changes on an interim basis. Rates
charged on an interim basis shall be conformed to the decision of
Grantor when rendered. Upon request by Grantor, Grantee shall post
a security bond on an acceptable surety company to guarantee any
adjustments or refunds that may be required pursuant to the decision
of Grantor.
G. Grantee's accounting records applicable to the system shall be
available for inspection by the Grantor at all reasonable time
and upon prior notice. Grantor shall have access to records of
financial transactions for the purpose of verifying burden rates or
other indirect costs prorated to the operation. The documents
listed above in subsection (b) shall include sufficient detail
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and/or footnotes as may be necessary to provide Grantor with the
information needed to make accurate determinations as to financial
condition of the system. All financial statements shall be certified
as accurate by an officer of Grantee, and if requested by Grantor,
by a Certified Public Accountant.
H. Grantee shall maintain and file with Grantor, a complete schedule of
subscriber rates including all fees and charges for services.
I. Grantee shall receive no consideration whatsoever for or in connection
with its provision of services to its subscribers other than as set
forth in this section or as filed with and/or approved by Grantor.
SECTION 13.12.520 EQUALITY OF RATES
Grantee shall not grant any preference or advantage to any person or
group, nor subject any person or group to prejudice or disadvantage as
to rates, services, service facilities, rules and regulations or in any
other respect relative to the rights granted under the franchise except
as may be granted by the City Council for limited promotional activities.
SECTION 13.12.530 DISCONNECTIONS
There shall be no charge for disconnection from the system. However, if
a subscriber has failed to pay properly due monthly fees or has not
returned Grantee-furnished equipment or a subscriber disconnects for
seasonal periods, Grantee may require, in addition to full payment of
any delinquent fees, a reasonable fee for reconnection.
SECTION 13.12.540 HOLD HARMLESS
Grantee shall indemnify, defend and hold Grantor, its officers, agents
and employees harmless from any liability, claims, damages, costs or
expenses, including reasonable attorney's fees, arising from injury to
persons or damages to property proximately caused by any conduct
undertaken by the Grantee, its agents or employees, by reason of the
franchise; Grantee shall at his sole cost and expense, upon demand of
Grantor, appear in and defend any and all suits, actions or other
legal proceedings, whether judicial, quasi-judicial, administrative,
legislative or otherwise brought or instituted or had 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.
SECTION 13.12.550 INSURANCE
A. On or before commencement of franchise operations, the Grantee shall
obtain policies of liability, worker's compensation and property
insurance from companies authorized to transact business in
California by the Insurance Commissioner of California.
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B. The policy of liability insurance shall:
1. Be issued to Grantee and name Grantor, its officers, agents
and employees as an additional insured;
2. Indemnify for all liability for personal and bodily injury,
death and damage to property arising from activities conducted
and premises used pursuant to this Chapter by providing coverage
therefor, including but not limited to coverage for:
(a) Negligent acts or omission of Grantee and the agents,
servants and employees thereof, committed in the conduct
of franchise operations, and/or
(b) Use of motor vehicles;
3. Provide a combined single limit for comprehensive general
liability and comprehensive automobile liability insurance in
the amount of five million dollars ($5,000,000.00); such insurance
policy shall be subject to the review and approval of Grantor' s
legal counsel.
4. Be noncancellable without thirty (30) days' written notice
thereof directed to Grantor.
C. The policy of Worker' s Compensation Insurance shall:
1. Have been previously approved as to substance and form by the
California Insurance Commissioner;
2. Cover all employees of Grantee who in the course and scope of
their employment are to conduct the franchise operations;
3. Provide for every benefit and payment presently or hereinafter
conferred by Division 4 of the Labor Code of the State upon
an injured employee, including the vocational rehabilitation
and death benefits.
D. The policy of property insurance shall provide fire insurance with
extended coverage, as well as burglary and theft insurance, on
the inventory, trade fixtures, furnishing and equipment to be
used by Grantee in the conduct of franchise operations in the
amount sufficiently adequate to enable grantee to resume franchise
operations following the occurrence of any of the risks covered
by said insurance.
E. Grantee shall file with the City Clerk prior to commencement of the
franchise operations either certified copies of said policies or
a certificate of insurance for each of the required policies
executed by the company issuing the policy, certifying that the
policy is in force and providing the following information with
respect to said policy:
1. The policy number;
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2. The date upon which the policy will become effective and the
date upon which it will expire;
3. The names of the named insured and any additional insured;
4. Subject of the insurance;
5. The type of coverage provided by the insurance;
6. Amount or limit of coverage provided by the insurance;
7. _ A description of all endorsements that form a part of the
policy.
F. Conduct of the franchise operations shall not commence until
Grantee has complied with the aforementioned provisions of this
Section.
G. In the event Grantee fails to maintain any of the above-described
policies in full force and effect, Grantor shall have the right to
procure the required insurance and recover the cost thereof from
Grantee. Grantor shall also have the right to suspend the franchise
during any period that Grantee fails to maintain said policies in
full force and effect.
SECTION 13.12.560 FAITHFUL PERFORMANCE BOND
On or before the effective date of the ordinance granting the franchise,
the Grantee shall file and thereafter at all times during the life of
the franchise keep on file with the City Clerk a corporate surety bond
running to the Grantor, or to its lawful successors in interest by virtue
of future incorporations or annexations, in the penal sum of one hundred
thousand dollars ($100,000.00) with surety to be approved by the Grantor
conditioned that grantee shall well and truly observe, fulfill and perform
each condition of the franchise and that in case of any breach of condition
of the bond the whole amount of the penal sum shall be deemed to be
liquidated damages and shall be recoverable from the principal and sureties
of the bond. If the bond is not filed prior to the effective date of the
ordinance granting the franchise, the award of the franchise may be set
aside and the ordinance granting the franchise repealed at any time prior
to the filing of the bond and any money paid in consideration for the
award of franchise shall be deemed forfeited. In the event that the bond,
after it has been so filed, shall at any time during the life of the
franchise become insufficient, Grantee agrees to renew the bond, with
sureties to be approved by the Grantor, within ten (10) days after written
notice to do so from the Grantor.
SECTION 13.12.570 RECORDS REQUIRED AND GRANTOR'S RIGHT TO INSPECT
A. Grantee shall at all times. maintain:
1. A record of all complaints received and interruptions of
degradation of service experienced for the preceeding
two (2) years.
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2. A full and complete set of plans, records and "as-built"
maps showing the exact location of all cable television
system equipment installed or in use in the City, exclusive
of subscriber service drops and equipment provided in the sub-
scribers home.
B. The Grantor may impose reasonable requests for additional information,
records and documents from time to time.
C. At all reasonable times, Grantee shall permit examination by any duly
authorized representative of the Grantor, of all franchise property,
together with any appurtenant property of Grantee situated within or
without the City.
SECTION 13.12.600 ANNUAL REPORTS
Within ninety (90) days after the close of each year, upon the reasonable
request from Grantor, Grantee shall submit a written annual report to
Grantor in a form approved by Grantor, including, but not limited to,
the following information:
A. A summary of the previous year's (or in the case of the initial
reporting year, the initial year's) activities in development of
the cable system, including but not limited to, services begun or
discontinued during the reporting year, and user participation;
B. A current statement of costs of construction by component
categories;
C. A list of Grantee' s officers, members of its board of directors,
and other principals of Grantee;
D. A list of stockholders or other equity investors holding five
percent (5%) or more of the voting interest in Grantee and its
parent, subsidiary and affiliated corporations and other entities,
if any;
E. An indication on a map of those areas where service is planned and a
schedule describing the planned implementation.
F. Maps or lists indicating where any type of special service is available.
G. The following numbers shall be supplied: single-family homes passed,
single-family subscribers, multiple-dwelling units passed, multiple-
dwelling unit subscribers, commercial subscribers, additional television
outlets, and saturation.
H. A listing of any expansion of the cable system including a measure,
in miles of cable, of such expansion. Designations shall be included
to identify expansions to new developments.
I. Copies of blank subscriber agreement forms shall be furnished to Grantor
for reference.
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SECTION 13.12.610 PLANT SURVEY REPORT
Simultaneously, with the annual report as required herein if requested by
Grantor, Grantee shall also submit to Grantor an annual plant survey
report which shall be a complete survey of Grantee's plant and a full
report thereon. Said report shall include, but not be limited to, an
appropriate engineering evaluation including suitable electronic measure-
ments and shall be conducted in conformity with such requirements, including
supervision, as Grantor may prescribe. Said report shall be in sufficient
detail to enable Grantor to ascertain that the technical standards of the
FCC and/or the franchise are achieved and maintained. Should Grantor
determine that reasonable grounds exist for believing that the technical
performance of the cable television system is inadequate, then, at Grantor's
request, Grantee and Grantor shall agree upon the appointment of a qualified
independent engineer to evaluate the technical performance of the cable
television system. The cost of such evaluation shall be borne by Grantee.
SECTION 13.12.620 COPIES OF FEDERAL AND STATE REPORTS
Grantee shall submit to Grantor copies of all pleadings, applications
and reports submitted by Grantee to, as well as copies of all decisions,
correspondence and actions by any federal, state or local court, regulatory
agency, or other governmental body related to its cable television
operations within the franchise area. Grantee shall submit such documents
to Grantor simultaneously with their submission to such court, agency
and/or body; or within five (5) days after their receipt from such
court, agency and/or body. Information otherwise confidential by law and
so designated by. Grantee, which is submitted to Grantor, shall be retained
in confidence by Grantor and its authorized agents and shall not be made
available for public inspection.
SECTION 13.12.630 PUBLIC REPORTS
A copy of each Grantee's annual and other periodic reports and those of
its parent, shall be submitted to Grantor within five (5) days of its
issuance.
SECTION 13.12.640 COMPLAINT REPORT AND OPINION SURVEY
Grantee annually shall submit the following to Grantor:
A. A summary of complaints, identifying the number and nature of
complaints and their disposition, in a form approved by Grantor,
for each month.
B. An opinion survey report which identifies satisfaction or dissatis-
faction among subscribers with services offered by Grantee, which
shall be submitted to Grantor on or before March 31 of each year for
the proceeding calendar year. The surveys required to make said
report shall be conducted in conformity with such requirements,
including supervision, as Grantor may prescribe.
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#402X-B29
SECTION 13.12.650 PRIVACY REPORT
Upon Grantor's request, Grantee shall submit to Grantor an annual report
indicating the degree of compliance with the privacy provisions contained
herein and all steps taken to assure that the privacy rights of individuals
have been protected.
SECTION 13.12.660 OTHER REPORTS
Grantee shall submit to Grantor such other information or reports in
such forms and at such times as Grantor may request or require.
SECTION 13.12.670 PUBLIC INSPECTION
All reports required under this Section, except as otherwise confidential
by law, shall be available for public inspection in the Grantor's offices
during normal business hours.
SECTION 13.12.680 COST OF REPORTS
All reports and records required under this or any other section shall
be furnished at the sole expense of Grantee.
SECTION 13.12.700 REMEDIES FOR FRANCHISE VIOLATIONS
If Grantee fails to perform in a timely manner any obligation required by
this Chapter or a franchise granted hereunder, Grantor may at its option
and in its sole discretion:
A. Cure the violation and recover the actual cost thereof from the
Corporate Security Bond established herein.
B. Assess against Grantee a penalty of up to five hundred dollars ($500)
per day for any such violation(s). By acceptance of a franchise
hereunder, Grantee hereby agrees to pay said assessment to be levied
against the security fund hereinabove provided, and collected by
Grantor immediately upon such assessment. Such assessment shall
not constitute a waiver by Grantor of any other right or remedy it
may have under the franchise or under applicable law, including
without limitation, its right to recover from Grantee such additional
damages, losses, costs and expenses, including actual attorneys'
fees, as may have been suffered or incurred by Grantor by reason of
or arising out of such breach of the franchise;
C. For violations considered by Grantor to have materially degraded
the quality of service, order and direct Grantee to issue rebates
or temporarily reduce its rates and/or charges to subscribers, in an
amount to be determined by Grantor, to provide monetary relief
substantially equal to the reduced quality of service resulting from
Grantee's failure to perform;
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#402X-B30
D. Require Grantee to cure all defaults and breaches of its obliga-
tions hereunder before Grantee is entitled to increase any rate
or charge to its subscribers;
E. Terminate the franchise, for any of the causes stated herein.
F. Where violations are of a technical nature, or are for non-compliance
with FCC rules and regulation the Grantor shall ask the FCC to enforce
its rules and levy fines for violations as provided in the FCC rules.
SECTION 13.12.710 PROCEDURE FOR REMEDYING FRANCHISE VIOLATIONS
Prior to imposing any remedy specified herein, Grantor shall give Grantee
notice and opportunity to be heard on the matter, in accordance with the
following procedure:
A. The Grantor shall first notify Grantee in writing by certified mail of
the violation, and demand correction within a reasonable time. If
Grantee fails to correct the violation within the time prescribed,
the Grantor shall then give written notice of not less than twenty
(20) days of a public hearing to be held before the Grantor. Said
notice shall specify the violations alleged to have occurred.
B. At the public hearing, the Grantor shall hear and consider all
relevant evidence, and thereafter render findings and its decision.
C. In the event the Grantor finds that Grantee has corrected the viola-
tions, or that no violation has occurred, the proceedings shall
terminate and no penalty shall be imposed.
D. In the event the Grantor finds that the alleged violations
exist and that Grantee has not corrected the same in a satisfactory
manner, the Grantor may impose one or more of the remedies specified
herein as it, in its discretion, deems appropriate under the cir-
cumstances.
SECTION 13.12.720 FORCE MAJEURE; GRANTEE'S INABILITY TO PERFORM
In the event Grantee's performance of any of the terms, conditions or
obligations required by this Chapter or a franchise granted hereunder is
prevented by a cuase or event not within Grantee's control, such inability
to perform shall be deemed excused and no penalties or sanctions shall be
imposed as a result thereof; provided, however, that such inability to
perform shall not relieve a Grantee from the obligations imposed by
Section 13.12.700(C) pertaining to refunds and reduction of rates to
subscribers! for degradation in the quality of service or the obligations
imposed by Section 13.12.840 pertaining to refunds and credits for
interruptions in service. For the purpose of this Section, causes or
events not within the control of Grantee shall include acts of God,
strikes, sabotage, riots or civil disturbances, restraints imposed by
order of a governmental agency or court, explosions, acts of public
enemies, and natural disasters such as floods, earthquakes, landslides
-29- ORDINANCE NO. 191
#403X-A03
and fires, but shall not include financial inability of the Grantee to
perform, failure of the Grantee to obtain any necessary permits or
licenses from other governmental agencies, failure of the Grantee to
obtain the right to use the facilities of any public utility or the
breach of contractual obligations by those from whom Grantee obtains
supplies, services or equipment.
SECTION 13.12.730 GRANTOR'S POWER TO REVOKE
Grantor reserves the right to revoke this franchise and rescind all
rights and privileges associated with it in the following circumstances,
each of which shall represent a default by Grantee and breach under
this Ordinance of the franchise grant:
A. If Grantee shall default in the performance of its obligations
under this Ordinance or under such documents, contracts or other
terms and provisions entered into by and between Grantor and the
Grantee.
B. If Grantee shall fail to provide or maintain in full force and
effect, the insurance coverage, surety bond, or security fund as
required herein.
C. If Grantee shall violate any order or ruling of any regulatory
body having jurisdiction over the Grantee relative to this
franchise, while such order or ruling is being contested by
Grantee in a court of competent jurisdiction.
D. If Grantee attempts to evade any of the provisions of this
Ordinance or practices any fraud or deceit upon Grantor.
E. If Grantee persistently fails to remedy defaults for which
lesser penalties have previously been imposed.
F. If Grantee becomes insolvent, unable or unwilling to pay its
debts, or is adjudged a bankrupt.
G. If Grantee's application or application contents are later
found to be in error.
SECTION 13.12.740 RESTORATION OF PROPERTY
In removing its plant, structures and equipment, Grantee shall refill,
at its own expense, any excavation that shall be made by it and shall
leave all public ways and places in as good condition as that prevailing
prior to such removal without effecting any electrical or telephone
cable wires, poles, or attachments. Grantor shall have the right to
inspect and approve the condition of the public ways, public places,
cables, wires, attachments and poles prior to and after removal. The
liability, indemnity and insurance provisions of this Ordinance and the
completion bond as provided herein shall continue in full force and
effect during the period of removal and until full compliance by Grantee
with the terms and conditions of this Section.
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#402X-A-04
SECTION 13.12.750 RESTORATION BY GRANTOR: REIMBURSEMENT OF COSTS
In the event of a failure by Grantee to complete any work required herein
or by any other law or ordinance, and after prior notice to the Grantee,
Grantor may cause such work to be done and Grantee shall reimburse
Grantor the costs thereof within thirty (30) days after receipt of an
itemized list of such costs, or Grantor may recover_such costs through
the security fund provided by Grantee.
SECTION 13.12.760 EXTENDED OPERATION AND CONTINUITY OF SERVICES
Upon either the expiration or revocation of the franchise, the Grantor
shall have discretion to permit Grantee to continue to operate the cable
television system for an extended period of time not to exceed six (6)
months from the date of such expiration or revocation unless extended by
resolution of Grantor. Grantee shall, as trustee for its successor in
interest, continue to operate the system under the terms and conditions
of this Ordinance and the franchise and to provide the regular subscriber
service and any and all of the services that may be provided at that
time. It shall be the right of all subscribers to continue to receive
all available services provided their financial and other obligations
to Grantee are honored. The Grantee shall use all reasonable efforts to
insure that all subscribers receive continuous, uninterrupted service
regardless of the circumstances, including operation of the system during
transitional periods following franchise expiration or termination.
SECTION 13.12.770 GRANTOR'S RIGHTS NOT AFFECTED
The termination and forfeiture of this franchise shall in no way affect
any of the rights of Grantor to pursue any_ remedy under the franchise
or any provision of law.
SECTION 13.12.780 RECEIVERSHIP AND FORECLOSURE
A. A franchise granted hereunder shall, at the option of Grantor,
cease and terminate one hundred twenty (120) days after the
appointment of the receiver or receivers, or trustee or trustees,
to take over and conduct the business of Grantee, whether in a
receivership, reorganization, bankruptcy or other action or
proceeding, unless such receivership or trusteeship shall have
been vacated prior to the expiration of said one hundred twenty
(120) days, or unless: (1) such receivers or trustees shall
have, within one hundred twenty (120) days after their election
or appointment, fully complied with all the terms and provisions
of this Ordinance and the franchise granted pursuant hereto, and
the receivers or trustees within said one hundred twenty (120)
days shall have remedied all the faults under the franchise; and
(2) such receivers or trustee shall, within said one hundred
twenty (120) days, execute an agreement duly approved by the
court having jurisdiction in the premises, whereby such receivers
or trustees assume and agree to be bound by each and every term,
provision and limitation of the franchise herein granted.
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#402X-A-05
B. In the case of a foreclosure or other judicial sale of the plant,
property and equipment of Grantee, or any part thereof, including
or excluding a franchise, Grantor may serve notice of termina-
tion upon Grantee and the successful bidder at such sale, in
which event the franchise herein granted and all rights and
privileges of the Grantee hereunder shall cease and terminate
thirty (30) days after the service of such notice, unless: (1)
Grantor shall have approved the transfer of this franchise, as
and in the manner that this Ordinance provided; and (2) such
successful bidder shall have covenanted and agreed with Grantor
to assume and be bound by all the terms and conditions of this
franchise.
SECTION 13.12.790 RIGHTS RESERVED TO GRANTOR
A. In addition to any rights specifically reserved to the Grantor by
this Chapter, the Grantor reserves to itself every right and power
which is required to be served by a provision of any City ordinance
or under the franchise, and the Grantee by acceptance of a franchise
hereunder agrees to be bound thereby and to comply with any action or
requirement of the Grantor in its exercise of any such right or
power.
B. The Grantor shall have the right to inspect during normal working
hours the Grantee's facilities and, with reasonable notice, the
records relating to the franchise.
C. The Grantor shall have the right to waive any provision of the
franchise, except those required by Federal or State regulation,
if the Grantor determines (1) that it is in the public interest
to do so, and (2) that the enforcement of such provision will
impose an undue hardship on the Grantee or the subscribers. to
be effective, such waiver shall be evidenced by a statement in
writing signed by a duly authorized representative of the Grantor.
Waiver of any provision in one instance shall not be deemed a
waiver of such provision subsequent to such instance nor be
deemed a waiver of any other provision of the franchise unless
the statement so recites.
SECTION 13.12.800 RIGHT OF INSPECTION OF CONSTRUCTION
Grantor shall have the right to inspect all construction or installation
work performed subject to the provisions of the franchise and to make
such tests as it shall find necessary to insure compliance with the
terms of this franchise and other pertinent provisions of law.
SECTION 13.12.810 RIGHT OF INTERVENTION
Grantor shall have the right of intervention in any suit or proceeding
concerning the franchise to which Grantee is a party, and Grantee
shall not oppose such intervention by Grantor.
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#402X-A-06
SECTION 13.12.820 RIGHT TO REQUIRE REMOVAL OF PROPERTY
At the expiration of the term for which the franchise is granted, or
upon its revocation or expiration, as provided for herein, the Grantor
shall have the right to require Grantee to remove, at its own expense,
all portions of the cable television system from all streets and
public ways within the city.
SECTION 13.12.830 RIGHT TO ORDER INCREASE OF SECURITY FUND AND
INSURANCE COVERAGE
Grantor shall have the right to order Grantee to increase the amounts
of the security fund and the insurance coverage provided herein. Such order
may be made by Grantor after complying with the hearing procedure provided
for herein. Increases may be based upon the Consumer Price Index (Urban
Wage Earners) prepared by the Bureau of Labor Statistics of the United
States Department of Labor, relating to all items, Series A, for the Los
Angeles-Long Beach area (1967 = 100),_ or upon evidence of prudent business
practices of like enterprises involving the same or similar risks.
SECTION 13.12.840 RIGHTS OF INDIVIDUALS
A. Grantee shall not deny service, deny access, or otherwise dis-
criminate against subscribers, channel users, or general citizens
on the basis of race, color, religion, national origin, age or
sex. Grantee shall comply at all times with all other applicable
federal, state and local laws and regulations, and all executive
and administrative orders, relating to non-discrimination.
B. Grantee shall strictly adhere to the equal employment opportunity
requirements of the FCC, state and local regulations, as now
written or as amended from time to time.
C. Neither Grantee, nor any person, agency, or entity shall, without
the subscriber's consent, tap, or arrange for the tapping, of any
cable, line, signal input device, or subscriber outlet or receiver
for any purpose except routine maintenance of the system, polling
with audience participation, or audience viewing surveys to
support advertising research regarding viewers where individual
view behavior cannot be identified.
D. In the conduct of providing its services or pursuit of any collateral
commercial enterprise resulting therefrom, Grantee shall take any
and all necessary steps to prevent the invasion of a subscriber's
or general citizen's right of privacy or other personal rights as
such rights are delineated or defined by applicable law. Grantee
shall not without lawful court order or other applicable valid
legal authority utilize the system's interactive two-way equipment
or capability for unauthorized personal surveillence of any
subscriber or general citizen.
E. No cable line, wire, amplifier, convertor, or other piece of
equipment owned by Grantee shall be installed by Grantee without
first securing the permission of the owner of any property involved.
-33- ORDINANCE NO. 191
#402X-A-7
If a subscriber requests service, then permission to install upon
subscriber's property shall be presumed unless it is a multiple
dwelling unit of five (5) or more units. If permission is later
revoked, whether by the original or subsequent owner, Grantee shall
remove in a reasonable time any of its equipment which is visable
and moveable and promptly restore the property to its original
condition.
F. The Grantee shall credit or refund to the subscriber, for interruptions
in service of twenty-four (24) hours or more not due to conduct of
the subscriber, an amount equal to the subscriber's monthly charges
for service multiplied by the ratio of the days of interrupted service
to thirty days. When interruptions continue beyond 24 hours, credit
allowance will be given in successive 24-hour multiples.
G. A subscriber bill of rights approved by the Grantor shall be provided
to each subscriber by the Grantee published initially and with
each change in rate and/or charge thereafter.
SECTION 13.12.850 FAIR EMPLOYMENT PRACTICES
A. Grantee shall not make any discrimination, distinction or restric-
tion on account of color, race, religion, ancestry or national
origin contrary to the provisions of Section 51 of the Civil Code
of the State which is incorporated in this Section by reference.
B. All provisions of Section 1410 through 1431 of the Labor Code of
the State (California Fair Employment Practice Act) are incorporated
in this Section by reference.
C. The Grantee shall provide 90 day notice to Grantor prior to operating
under a fictitious name other than that stated in the franchise.
Any fictitious name shall be filed with the City Clerk.
SECTION 13.12.860 NONEXCLUSIVE FRANCHISE
The granting of the franchise shall not be construed to prevent the
Grantor from granting any identical or similar franchise to any person
or persons other than the Grantee.
SECTION 13.12.870 RIGHTS OF GRANTEE
Should Grantee become dissatisfied with any material decision or ruling
of Grantor pertaining to this franchise, Grantee may pursue such
remedies as are available to it, including bringing an action in any
court of competent jurisdiction.
SECTION 13.12.880 TENANT RIGHTS
Grantee shall be required to provide service to tenants and individual
units of a multiple housing facility with all services offered to
other dwelling units within the city, so long as the owner of the
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#402X-A-8
facility consents in writing, if requested by Grantee, to the following:
A. To Grantee's providing of the service to units of the facility;
B. To reasonable conditions and times for installation, maintenance,
and inspection of the system on the facility premises,
C. To reasonable conditions promulgated by Grantee to protect
Grantee's equipment and to encourage wide-spread use of the cable
television system; and
D. To -not demand or accept unreasonable payment from Grantee for
permitting Grantee to provide service to the facility and to not
discriminate in rental charges, or otherwise, between tenants
who receive cable television service and those who do not.
SECTION 13.12.890 TREE TRIMMING
Grantee shall not remove any tree or trim any portion, either above,
at or below ground level, of any tree on public property without the
prior consent of Grantor. Grantor shall have the right to do such
tree trimming requested by Grantee at the reasonable cost of Grantee.
SECTION 13.12.900 SEVERABILITY
If any provision of this Ordinance or Municipal Code is held by any
court or by any federal, state, or county agency of competent jurisdic-
tion, to be invalid as conflicting with any federal, state, or county
law, rule or regulation now or hereafter in effect, or is held by such
court or agency to be modified in any way in order to conform to the
requirements of any such law, rule or regulation, such provision shall be
considered a separate, distinct, and independent part of this Ordinance,
and such holding shall not affect the vaidity and enforceability of all
other provisions hereof. In the event that such law, rule or regulation
is subsequently repealed, rescinded, amended or otherwise changed, so
that the provision hereof which had been held invalid or modified is
no longer in conflict with such law, rule or regulation, said provision
shall thereupon return to full force and effect and shall thereafter
be binding on Grantor and Grantee, provided that Grantor shall give
Grantee thirty (30) days written notice of such change before requiring
compliance with said provision.
SECTION 13.12.910 NOTICES
All notices from Grantee to Grantor pursuant to the franchise shall
be addressed to the City Clerk. Grantee shall maintain with Grantor,
throughout the term of the franchise an address for service of notices by
mail.
-35- ORDINANCE NO. 191
#402X-A-9
SECTION 13.12.920 SPECIAL EVALUATION SESSIONS
The Grantor may hold special evaluation sessions at any time during the
term of a franchise. The Grantee shall be notified of the place,
time and date thereof and the topics to be discussed. Such sessions
shall be open to the public and advertised in a newspaper of general
circulation at least thirty (30) days before each session.
PASSED, APPROVED, and ADOPTED December 18, 1984.
C / g / - *PP 11
f , / /Al i _
40( Mayor "r je(
ATTEST:
11111,elit
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes, do
hereby certify that the whole number of members of the City Council of said
City is five; that the foregoing ordinance, was duly and regularly adopted by
the City Council of said City at a regular meeting thereof held on December 18,
1984, and that the same was passed and adopted by the following roll call vote:
AYES: COUNCILMEMBERS: McTAGGART, HUGHES, HINCHLIFFE, & MAYOR BACHARACH
NOES: COUNC ILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: RYAN
City Clerk, C' of Rancho Palos Verdes
-36- ORDINANCE NO. 191
#402X-A-10
L,
RANCHO PALOS VERDES
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES)
The undersigned, being first duly sworn, desposes and says :
That at all times herein mentioned, she was and now is the
duly Qualified City Clerk of the City of Rancho Palos Verdes ,
California:
That on the2Oth day of December , 1984, she caused to
be posed in three conspicuous places , as required by law the
following :
ORDINANCE NO. 191 - GOVERNING TELEVISION FRANCHISES HEREINA= GRT NT D
BY THE CITY OF RANCHO PALOS VERDES AND AMENDING THE RANCHO PALOS VERDES
MIINTCTPAT, CCOT)1 .
a copy of which is attached hereto, in the following public places
in the City:
CITY HALL
RANCHO PALOS VERDES
30940 HAWTHORNE BOULEVARD, CALIFORNIA 90274
LOS ANGELES COUNTY FIRE STATION
MIRALESTE STATION
4000 MIRALESTE PLAZA
RANCHO PALOS VERDES, CALIFORNIA 90274
U. S. POST OFFICE
28649 SOUTH WESTERN AVENUE
RANCHO PALOS VERDES, CALIFORNIA 90732
I certify under penalty of perjury that the foregoing is a true and
correct affidavit of posting . `
41 _ ,
" .Prime i '��
J r PURCELL, CMC
TY CLERK x
30940 HAWTHORNE BOULEVARD / RANCHO PALOS VERDES, CA 90274-5391 / (213) 377-0380