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CC RES 2000-071 RESOLUTION NO. 2000-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AUTHORIZING THE RENEWAL OF A CABLE TELEVISION FRANCHISE AGREEMENT BETWEEN THE CITY AND COX COM, INC., dba COX COMMUNICATIONS PALOS VERDES, INC. THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES FINDS, DECLARES AND RESOLVES AS FOLLOWS: Section 1: This resolution is adopted in consideration of the following facts and circumstances: A. CoxCom, Inc., dba Cox Communications Palos Verdes, Inc., a Delaware corporation and a wholly-owned subsidiary of Cox Communications, Inc., a Delaware corporation ("Franchisee"), is the duly authorized holder of a franchise ("Franchise") that authorizes the construction, operation, and maintenance of a cable television system within the City of Rancho Palos Verdes ("Franchise Authority"). B. By its terms, the Franchise will terminate in its entirety on December 14, 2000. C. Negotiations between the Franchise Authority and the Franchisee commenced in early 1999. In addition, public meetings were held for the purpose of evaluating the future cable-related community needs and interests and the cable operator's performance under the existing franchise. A new agreement has been negotiated entitled "An Agreement between the City of Rancho Palos Verdes and CoxCom, 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" ("Franchise Renewal Agreement"). A copy of the Franchise Renewal Agreement is attached as Exhibit 1 to this resolution. D. The Franchise Authority has reviewed the present and future cable-related needs of the community and its residents, the Franchisee's record of service and its ability to carry out its obligations under the Franchise Renewal Agreement, and the Franchisee's financial, legal, and technical qualifications to hold and to operate a cable television franchise, and has determined that the public interest would be served by authorizing the Franchise Renewal Agreement. This determination is based upon the following findings: (1) The Franchisee has substantially complied with the material terms of the existing Franchise and with applicable law; (2) The quality of the Franchisee's service, including signal quality, response to consumer complaints, and billing practices, but without regard to the mix, quality, or level of cable services or other services provided over the system, has been reasonable in light of community needs; (3) The Franchisee has the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in the Franchise Renewal Agreement attached as Exhibit 1; and (4) The Franchisee's performance of the obligations set forth in the Franchise Renewal Agreement will reasonably meet the future cable-related community needs and interests, taking into account the cost of meeting those needs and interests. Section 2: The Franchise Authority authorizes the renewal of a nonexclusive franchise with the Franchisee to construct, operate, and maintain a cable television system within the City. This authorization is made in accordance with the applicable provisions of Chapter 13.12 of Title 13 of the Rancho Palos Verdes Municipal Code, the applicable provisions of state and federal law, and the terms and conditions of that certain Franchise Renewal Agreement attached as Exhibit 1 to this resolution. Section 3: Franchisee will reimburse the Franchise Authority for all costs and expenses reasonably incurred by the Franchise Authority's staff in connection with the negotiation, drafting, and processing of the Franchise Renewal Agreement; provided, however, that those costs and expenses will not exceed the sum of $10,000 and will be set forth in an itemized statement transmitted by the City Manager, or the City Manager's designee, within 30 days after the effective date of this resolution. Section 4: That certain Franchise Renewal Agreement attached as Exhibit 1 to this resolution is authorized and approved, and the Mayor is Resolution No. 2000-71 Page 2 of 3 authorized to execute that agreement on behalf of the Franchise Authority following its execution by the Franchisee. Section 5: The City Clerk is directed to certify to the adoption of this resolution and to transmit a certified copy to the following representative of the Franchise: General Manager CoxCom, Inc. 43 Peninsula Center Rolling Hills Estates, California 90274 PASSED, APPROVED, AND ADOPTED this 17t" day of October 2000. • d‘. `A *R ATTEST: 1P4 httt.4 e.47 1 • � 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, hereby certify that the above Resolution No. 2000-71; was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on October 17, 2000. Okyttaj �� clerk Resolution No. 2000-71 Page 3 of 3 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 R6876\0001\98017.5 10/17/00 ,:M1t 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 R6876\0001\98017.5 10/17/00 Lt 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 R6876\0001\98017.5 10/17/00 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 Maj eure. 37 13 . 3. Possessory Interest 38 13 . 4 . Indemnification. 38 13. 5 . Receivership and F;oreclosure. 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 R6876\0001\98017.5 1 10/17/00 'r. 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 R6876\0001\98017.5 2 10/17/00 (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 R6876\0001\98017.5 3 10/17/00 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 R6876\0001\98017.5 4 10/17/00 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 R6876\0001\98017.5 5 10/17/00 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. R6876\0001\98017.5 6 10/17/00 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. R6876\0001\98017.5 7 10/17/00 (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 R6876\0001\98017.5 8 10/17/00 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. R6876\0001\98017.5 9 10/17/00 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. R6876\0001\98017.5 10 10/17/00 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 R6876\0001\98017.5 11 10/17/00 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. R6876\0001\98017.5 12 10/17/00 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: R6876\0001\98017.5 13 10/17/00 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 R6876\0001\98017.5 14 10/17/00 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 : • R6876\0001\98017.5 15 10/17/00 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 . R6876\0001\98017.5 16 10/17/00 (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. R6876\0001\98017.5 17 10/17/00 •S (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. R6876\0001\98017.5 18 10/17/00 } 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 R6876\0001\98017.5 19 10/17/00 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. R6876\0001\98017.5 20 10/17/00 fi F'. 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 R6876\0001\98017.5 21 10/17/00 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. If, 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. R6876\0001\98017.5 22 10/17/00 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. R6876\0001\98017.5 23 10/17/00 (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 R6876\0001\98017.5 24 10/17/00 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. R6876\0001\98017.5 25 10/17/00 (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 provision of 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. R6876\0001\98017.5 26 10/17/00 (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 . R6876\0001\98017.5 27 10/17/00 (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 R6876\0001\98017.5 28 10/17/00 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 R6876\0001\98017.5 29 10/17/00 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 R6876\0001\98017.5 30 10/17/00 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. • R6876\0001\98017.5 31 10/17/00 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 R6876\0001\98017.5 32 10/17/00 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. R6876\0001\98017.5 33 10/17/00 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: R6876\0001\98017.5 34 10/17/00 { (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 . R6876\0001\98017.5 35 10/17/00 (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 R6876\0001\98017.5 36 10/17/00 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 Maj eure. (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 R6876\0001\98017.5 37 10/17/00 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 R6876\0001\98017.5 38 10/17/00 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. p 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 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. R6876\0001\98017.5 41 10/17/00 ;fz "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 "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 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 "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 "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 By: �► City Attorney lay.r Date: « / 100 /OO ATTEST: i Acaj .Af1c / t y Clerk R6876\0001\98017.5 46 10/17/00 COX COM, INC. , a Delaware corporation, dba COX COMMUNICATIONS OF PALOS VERDES, INC. By: itAAA4 Title: )10/4 Date: /9-17 - 'O APPROVED AS TO FORM: Corporate Counsel R6876\0001\98017.5 47 10/17/00 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 R6876\0001\98017.5 A-1 10/17/00 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 p 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 IL 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 2.110 Franchise terms and conditions. nications services and systems to the extent authorized by 13.1 P 2.120 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 M. 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 re .230 A reement uired. 1. To enable the city to discharge its public trust in q 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 g g 13.12.310 0 Video providers—Registration— telecommunications purposes on a competitively neutral Customer service standards. and nondiscriminatory basis. 13.12.32 0 Antennas for telecommunications 3. To obtain fair and reasonable compensation for services. the city and its residents for authorizing the private use 13.12.330 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 13.12.51 0 Severabili tY. 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 Y This chapter is known and may be cited as the"Tele- local needs, deliver enhanced government services, and Regulatory Ordinance" of the city of provide informed consumer choices in an evolving tele- Rancho g ry (Ord. (part), 1998) Ra ncho Palos Verdes. (Ord. 339 § 2 (part), 1998) communications market. Ord. 339 § 2 (p ), 171 (Rancho Palos Verdes 11-98) 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 si nificant benefits for, and substantial within the territorial limits of the city, and within any impacts upon, the residents of the city. Because of the area added to the city during the term of the franchise, complex and rapidly changing technology associated with unless otherwise specified in the ordinance or resolution 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 the city. This article is intended to specify the federal and state laws, and it applies to all franchises means for providing to the public the best possible cable granted or renewed after the effective date of this article, 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 (part), 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 under the provisions 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 of subsection (F)(1) of this i 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 other property in connection with the operation exercised.If grantee is a corporation,prior authorization of the cable system in, on, over, under, upon, along and of the city council is required where ownership or control across streets or other public 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 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 may be authorized by law. foreclosure or judicial sale of all or a substantial part of (Rancho Palos Verdes 11-98) 172 13.12.110 the gr antee'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 P P �' 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 Y 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 a of ownership or control,grantee or the provided that the grantee is able to secure on reasonable proposed transferee,or both,must complete Federal Corn- terms and conditions all rights-of-way necessary to extend prop , 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 notify to right the city that it, or a designee satisfactory law and specific local considerations, such as: g fY 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 P lan for such operation within ninety days after as electrical power, telephone, gas, and sewerage. assumin g 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 vise 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 durin g 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 includin 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 I I-98) 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) cuffed 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 13.12.130 10. Requirements uirements relatin 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 re p g, P 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 g defaults, including fines, penalties, liquidated damages, applicant's technical qualifications,experience,and exper- suspens ion 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. g other transfer or change in control of the franchise. 7. Financial statements prepared in accordance with The grantee's obligation to maintain continuity generally accepted accounting principles that demonstrate 13. gr g of service and to authorize, under certain specified cir- the applicant's financial ability to: cumstances, the P 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. e as may be mutually agreed upon by the b. Comply with the city's public, educational, and and procedures y Y parties to th e franchise agreement and that will, in the governmental access requirements as specified below in judgment ent of city staff and the city council,best serve the Section 13.12.230 (B)(4). � interest and protect the public health,welfare,and c. Comply with the city's requirement that gross public P P safety. revenue fees be paid in the sum of five percent,as speci- B. If there is any conflict or inconsistency between fled below in Section 13.12.230 (B)(2). the provisions of f franchise a gr eement authorized by the 8. An accurate map showing the location of any provisions council and rovisions 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 ifi. Open Video Systems in the city, the following additional information must be provided: 13.12.200 Applicability.licabili 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 p deliver video programming to consumers in the a network map of any new facilities to be constructed in intends to deli p gr g open over an o en video system. (Ord. 339 § 2 (part), the city, in sufficient detail to identify: 1998) i. The location and route requested for the applicant's proposed facilities. 13.12.210 Application required.lication uired. ii. The locations,if any,for interconnection with the q A. Before e commencin the delivery of video pro- facilities of other telecommunications service providers. gramming services 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 y P with the city.That application must include remove or relocate on a temporary or permanent basis. an application Y PP or accompanied by r be accom anied b the following, as applicable: c. The applicant's statement that, in constructing y applicant,The identity of the a licant,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. FCC,Order of the FCC all of which relate to certification of 10. The information and documentation that is re- the open applicant to operate en video system in accor- quired to be submitted to the city by a video provider,as p erate an P dance with Sectio n 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 l 1-98) 13.12.210 12. A nonrefundable filin g fee in an amount estab- cable operator. The term "gross revenues" does not in- lished by resolution of the city council. dude 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),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 osed open video system will be authorized by the CFR Section 76.1505.In this regard,the following stan- city.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 video programming services may be provided b. The open video system operator must ensure that in the city by an open video system operator unless the all subscribers receive all public,educational,and govern- operator 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 authorized by the city. 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. 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 by federal statute or regulations: and the franchised cable operator so desire. 1. The nature,scope,and duration of the agreement, d. If the open video system operator and the city are includin g 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- to P a Y to the city, at specified 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 and P 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 five e ercent, and will be paid in lieu of the fran- gations as the city's franchised cable operator by provid- chise fees P 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, ' open video programming providers; and (ii) all adver- such as cameras or production studios, the p en video tisin g revenues received by the operator or its affiliates system operator may satisfy its statutory obligation by in connection with the provision 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 (Rancho Palos Verdes 11-98) 176 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 Com- 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(f)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(1). 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 tern 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 P rovisions 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 f. 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 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 providers-Registration--- Article 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.) regulatory provisions authorized by federal law,provided B. All video providers that are operating in the city 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("LMDS"), 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 video programming,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 by satellite directly to 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. (Rancho Palos Verdes 11-98) 178 13.12.310 g 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 Notice of the deletion of a programming service, "satellite dish antennas"), which are parabolic or dish- the Noti F �' in of channel assignments, or an increase in shaped antennas or devices that are designed for over-the- rates.Chang g g rates. air reception of radio or television broadcast signals, Complaint procedures and procedures for bill multichannel multipoint distribution service, or direct f. Comp p P dis dispute resolution. broadcast satellite services. P (also known as g The video provider's written commitment to B. Amateur radio station antennas, u annually to the city, and to its employees and "ham radio antennas"), which are typically placed on a distribute y tY customers,a notice otice describin the customer service star- support structure and are used solely for the purpose of lords 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 video provider on its performance in meeting its station in accordance with licenses issued by the FCC. of the id p F 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, Unless a video provider is exempt under federal and communications signals,commonly consisting of an 4. Un p P law from its P a Y ment, a registration fee in an amount antenna array, connection cables, a support structure to by resolution of the city council to cover the achieve the necessary elevation,and an equipment facility established y tY reasonable by city costs incurred b y the ci in reviewing and to house accessory equipment, which may include cabi- processing registration the istration form. nets,pedestals,shelters,and similar protective structures. g 5. In addition to the registration' tration feespecified above D. Television antennas, other than satellite dish subsection(B)(4)of this section, the written commit- antennas, that are used by the occupant of the property in s (B)( ) video provider to pay to the city, when due, where the antenna is located solely to receive television ment of the p P Y 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, dispute which dis ute resolution is mandated by 13.12.330 Telecommunications service Government Code Section 53088.2(o). provided by telephone corporations.• city council may establish by ordinance a A. The city council finds and determines as follows: C. The ty y schedule of mo net ary penalties for the material breach by 1. The Federal Telecommunications Act of 1996 a video provider 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 g h used herein, the term "material breach" means any sub- telephone service. tial and re eated failure to comply with the consumer 2. The California Public Utilities Commission stan p service standards set forth in Government Code Section ("CPUC")is primarily responsible for the implementation 53088.2.Th e provisions of that ordinance must be consis- of local telephone competition, and it issues certificates provisions with the 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 �' P impos e a penalty,enalt as authorized by Government Code exchange services and related telecommunications service, , Section 53 ( ), 056 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 Q Section 53055.1, which penalty may not exceed five Lions. dollars for each year in which the notice is not 3. Section 234(a) of the California Public Utilities hundred Y tributed as required by state statute. (Ord. 339 § 2 Code defines a"telephone corporation"as"every corpo- dis Q Y art 1998) ration or person owning,controlling,operating,or manag- ing{p ), ) 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 regulatory requirements city's re ulato uirements relating demn any property necessary for the construction and Q to the sitin g and construction of the following categories maintenance of its telephone line." 179 (Rancho Palos Verdes 11-98) 13.12.330 5. Section 2902 of the California Public Utilities to provide the telecommunications service for which the Code authorizes municipal corporations to retain their facilities are proposed to be constructed in the city's 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 j"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 13.12.330 excavations in the public rights-of- b. A facility that serves subscribers without using mite the number of P way.In this regard,based upon projected plans for street any public right-of-way; construction or reno vation projects, city'ects, the ci manager is c. A facility of a common carrier that is subject, in authorized to establish a quarterly h uarterl basis one or more whole or in part, to the provisions of Title II of the construction time periods or"windows"for the installa- Telecommunications Act of 1996,except that such facili- tion ' ' ' within the public rights-of-way. Tele- ty will be considered a cable system (other than for tion of facilities within p g phone corporations and other public ublic utilities that submit purposes specified in Section 621(c) of the 1984 Cable applications for ministerial permits to construct facilities Act)to the extent such facility is used in the transmission may re after a predetermined date ma be required to delay such of video programming directly to subscribers,unless the Q until the next quarterly "window" that is extent of such use is solely to provide interactive on- established unti q Y 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's regulatory 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 'c utility that are used city. (Ord. 339 § 2 (part), 1998) e. Any facilities of an elecm y y ( (P solely for operating its electric utility system. Article V. Definitions. "Cable system operator" means any person or group of persons: Defined terms and phrases. a. Who provides cable service over a cable system 13.12.400 P A. Fo r the purposes of this chapter, the words, and directly or through one or more affiliates owns a rp terms, p hrases, and their derivations set forth in this significant interest in that cable system; or article have the meanings 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 , another person 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. Y� with, such person. For purp oses of this definition, the "____CFR Section means the Code of Federal term"own"means toown an a uit interest,or its equiv- Regulations. Thus, the citation of"47 CFR 80.1" refers alent, of ten percent or more. to Title 47, part 80, section 1, of the Code of Federal "Cable service" means the one-way transmission to Regulations. subscribers of video programming,or other programming "Communications Act" means the Communications subscriber interaction, if any, that is re- Act of 1934(47 U.S.C.Sections 153,et seq.),as amend- services, and subscn ion or use of that video programming ed by the Cable Communications Policy Act of 1984,the amend- quired for the selection P 'n service. For the purposes of this Cable Television Consumer Protection and Competition or other programming P "video programming" means programming Act of 1992, and the Telecommunications Act of 1996. definition, video prob g P provided by,o r generally enerall considered comparable to pro- "FCC" or "Federal Communications Commission" gramming provided by,a television broadcast station;and means the federal administrative agency, or any lawful"other programming service" i ice" means information that a successor, that is authorized to regulate telecommunica cable system operator makes available to all subscribers tions services and telecommunications service providers generally.. on a national level. "Cable system,"o " r"cable communications system"or "Franchise" means an initial authorization, or the system,"means a facility,consisting of renewal of an initial authorization, issued by the city "cable television sys Y a set of closed tr paths aths and associated signal council, whether such authorization is designated as a generation, reception, equipment and control a ment 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 gramming and that is provided to multiple subscribers or operation of a cable system. within 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- a. A facility that serves rves onl to retransmit the tele- posed by the city on a grantee as compensation in the vision signals of one or more television broadcast sta- nature of rent for the grantee's use of the public rights-of- bons; way. The term "franchise fee" does not include: 181 (Rancho Palos Verdes 11-98) 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 programming=distribu- "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 or more 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 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-wa are used in the delivery of that video program- vice provider thirty days written notice of that change provider"ming. A "video rovider" includes, without limitation, before requiring compliance with that provision,or such P roviders 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) 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 d/b/a Cox Communications Middle eorgia _ — a o m 01 .. /�� i' to ea a Cox Nevada Telcom,L.L.C. Cox Communications Las Vegas,Inc. - o•: 'fl O rril N tu See page 6 of 6 for addr1 LCox Classic Cable,Inc. ° tr" II: Cox Classic Cable substdlaries l W c w 0 I CoxTrusti Cox Communications Virginia Beach,Inc. 1 r1 V - 'Cox Trust II 1 °a I-- -------- ICox Fibemet Virginia,Inc. Cox RHINOS Trust VI o t A 3 Cox Virginia Telcom,Inc. Cox Communications Hampton Roads,Inc. I Olt O C i News on Cable,LLC Channel,LLC ,,rpm„ (Membership Interest-33.3%) (Membership Interest-33.3%) 0 Mi i o X n X Rt o•d,, Cox Communications E.T.E.,Inc. m c c Si o 0 –1 •aa°' Z r a"o A E -.i 2 m GI in z Cn CCI PCS,Inc. z m cn cn - -z c� z d/b/a Cox Communications , Bakersfield * d/b/a Cox Communications Cleveland Area d/Wa Cox Communications E___ Desert Valley d/b/a Cox Communications Gainesville/Ocala '----- Cablerep Northern Virginia, L d/b/a cox communications o X Inc. Humboldt G cb Cox Communications ( cobra cox Communications j __. = ` N Telecom,Inc. Louisiana n C) o x 3 o x O ca 0 CP Arizona I,LLC drwa Cox Communications ° r" 0 0 C New England 3 <5- "5 co • w di is Cox Communications " =� c 1CP Arizona II,LLC t orihem ago a A d/b/a Cox Communications ( :._ .—. • .' Oklahoma City d/b/a Cox Communications l orange county 1 d/b/a Cox Communications . Palos Verdes l` CWe Cox Communications I C Pensacola �` �xx c d/b/a Cox Communications L Orange County Local 5 z S o 0 ix Content.LLC" a -0 a d/b/a Cox Communications o°a N ( Roanoke Phoenix Local Content, O to ` LLC** o*`,' g. '"'' co C dlbia Cox Communications ( �o , t ( San Diego New England Local a W d/b/a Cox Communications Content,LLC** 1 = CI C Santa Barbara — New Orleans Local tr. ai Cox Communications ( , Content,LLC** Tucson Oklahoma City Local H c d/ble Cox Communications l Content,LLC** West Texas Hampton Roads Local 1H.Cox Communications Hampton San Diego Local Content,LLC+ R o ds L.L.C. 1_,' Content,LLC"' + + ,,;�, a A n° 0 oA x �`'� o .s Cox Communications Kansas, ' x � o m o L.L.C. 3 0 3 r ; y c Omaha Local Content Cox Communications Omaha, o I ° LLC++ L LC o n a o ..a b �O N Z, N m Co� a 3 v iY 3 E2. Cox Communications Pensacola, 2- ;m W .o�m ( .C. f' 70 I i y !Video Service Company r I News Channel 15,LLC 04embershp Interest-50%) l 3 [Arizona Newscf annel,Ll..-"C R (Memb ershi p Interest-50%) Rhode Island News Channel,LLC (Membership Interest-65%) 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_1 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 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 (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) (l) - (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 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 SCHEDULE 1 SAMPLE OF GRANTEE' S NOTIFICATION TO NEW SUBSCRIBERS AND ANNUAL NOTIFICATION TO EXISTING SUBSCRIBERS iv / Communications 2000 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) 377-180A Mon & Sat 8:30am - 5pm TueFri 8:30am - 6pm s; 1 1 NOTIFICATION OF CUSTOMER RIGHTS 11 x: UNDER THE CABLE COMMUNICATIONS POLICY ACT 1984 Dear Cable and/or Internet Customer: -:...: As a customer of Cox Communications ("Cox" or "we") sub- 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- t 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 information and its disclosure. Cox also applies the information poli- cies of this law to Internet access services to which you subscribe. The law and its policies relate only to personally identifiable it 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 So e p Y 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 the Internet. 1. Collection and Use To better provide you with reliable, � p high-caliber service, Cox keeps regular business records that contain g g g the following types of personally identifiable information: name, ser- 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 ordered on p a Y-p er-view channels), and customer correspondence and communications records. We also maintain information concern- ing billin g, payment, security deposits osits and maintenance and repairs, as well as other service-related information. For Internet access ser vice the cable system may automatically collect or. facilitate the col- lection Y Y Y 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 she visits the site We collect, maintain and use this information, generally to con- duct business activities related to gY rovidin you with cable television, p 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 Y ou are being properly billed for the services you receive, to send you gp � Y pertinent information regarding your cable services, to improve the quality of the services we provide to you, and for other service-related 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 gp offer, and to answer questions from you concerning your bill and services provided to you. We take all reasonable precautions to dden- . Y p . tify you or your authorized representative as the inquirer on your a Y account and to otherwise prevent unauthorized access to your account information. Cox will not use any electronic device attached to the cable television wires for the purpose of recording, transmitting, or observ- ing any events or listening, recording, or monitorin g any conversa- tions Y tions which take place within your residence, work place, or place of business without obtainin g your p our ex ress written or electronic consent. 2. Disclosure. Cox considers the ersonall identifiable infor- p y !nation contained in our business records to be confidential and will not disclose it without your prior written or electronic consent except as provided in this notice. We may disclose this information, s however, if the disclosure is necessary for rendering or conducting a • legitimate business activity related to a cable service, Internet access f service or other service Cox provides to you. Consequently, we may, for example,from time to time disclose information to our employees, attorneys, outside auditors and accountants as required, program F: guide distributors, collection agencies, construction and installation contractors, consumer and market research companies, software vendors, and affiliated providers of Internet access services or `r Internet content services. Cox will not make personally identifiable information about p y you available to uire overnment entities unless we are required q d t o do so by if 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 enti ty seeking the : information must offer clear and convincing evidence that the subject if of the information is reasonably suspected of engaging in criminal activity and that the information sought would be material evidence dence en the case. If a government entity is seeking personally identifiable information about you under these circumstances, the court must afford you the opportunity to appear and contest the government entity's claim In the event you are a customer of Cox's High Speed Internet Access Service, you have Yg p expressly granted permission to Cox to p I disclose, without prior notice to you, information relatin g to your account such as the name and address associated with a given IP address or e-mail account in response to a sub oena issued in a civil or criminal investi ation r (a) p g o litigation; (b) a civil investigative demand issued by a government entit • (c) a court order; (d) a law enforcement agency request based on emergency q conditions such as an imminent threat to life and limb or substantial damage or destruction of ro ert . Examples of such emergency p p Y p g Y situations would include bomb threats, kidnappings, extortion threats, identifying the service address of a suicidal art and threats . . party, to critical governmental or private sector computer systems and databases. While we do not currently sell lists containing the 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 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 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 I maybe be •offered b affiliated com aniE• of Cox Ii existing or new services y . by .p , 1 yet this information will not be disclosed to third parties outside of t.I Cox, except as otherwise required by law. If you prefer that Cox not I p access such information you may either call or write Cox at the num- ress listed above. Otherwise, your consent will enable n ber and address Y Cox to use our information and your decision will remain in effect v l until you notify Cox that you wish to either revoke or change your I Y s; existing existin consent.Your decision on whether to provide consent to Cox will in no way affect the services you currently receive. 1 TELEVISION EQUIPMENT COMPATIBILITY NOTICE :.1 . Q: can I get one? 'if C�. Do need a cable converter and where g A: Some models of TVs and VCRs especially older TV sets that are l not "cable read may not be able to receive all of the channels offered by the cable system when connected directly to the cable system. If your TV or VCR is not able to receive all of the channels offered by the cable system when connected directly to the cable y system, you can obtain a set-top channel converter or other equip- ment from Cox or a retail store at a nominal charge to enable your TV I 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, ou should know that receivers with descrambling v units are illegal to.sell or use unless authorized by Cox. Qv Will I need additional equipment? A: Where service is received through a set-top channel converter, y you may note be able to use special features and functions of your TV and VCR, including, but not limited to,features that allow you to: view ram on one channel while simultaneously recording a program •, : . program F a ro on another channel; record two or more consecutive programs that appear on different channels; and, use advanced picture generation i : 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. j: Q: Where can I .get a remote control? A. Remote control units that are compatible with set-top channel or other terminal equipment ma be obtained from Cox or converters o .Y , from sources other than Cox Communications, such as retail outlets. A list of compa tible 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 y our equipment.ment. Please note that customer owned remote control units may not be functional if Cox Communications changes the Y • set-top channel converter or other terminal devices. COMPATIBLE TELEVISION REMOTE CONTROL MODELS Manufacturer Model Numbers Fox 200EX Fox 400EX Gemini 040 One for Al 3 URC2060 One for Al 4 URC2086 One for Al 5 URC2001 One for Al 6 URC4050 One for Al 8 URC5050 One for Al VCR Pro URC6885 RCA 3 RDU-300 RCA 4 RDU-400 RCA 5 RDU-100 US Electronics K86-0 Sony RMV 10A Sony RMV 11 Radio Shack VCR Pro 15-1907 Radio Shack 6 in 1 15-1905 Radio Shack 5 in 1 15-1908 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 1 have a poor quality picture on my TV? 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- tourer 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 ta satisfaction, we will continue nfo m r be unable to resolve the problem to your you of our determination, and the reasons we cannot solve the problem. 0: What if Cox cannot resolve my problem? A: Cox Communications serves multiple areas. t believe Cox has not properly resolved y our issue, please contact the applicable franchise authority at the address and telephone number listed on your monthly cable bill. L251 SCHEDULE 2 PROVISIONS OF SECTION 76. 309 (c) OF TITLE 47 OF THE CODE OF FEDERAL REGULATIONS "CONSUMER SERVICE OBLIGATIONS" . • ti •• • • CONSUMER SERVICE STANDARDS • ENDORSED BY NATIONAL CABLE TELEVISION ASSOCIATION • AS SET FORTH IN - SECTION 76.309 (0) OF TITLE 47 OF THE CODE OF FEDERAL REGULATIONS de rat Communications Commission - §76.309 fo . tains for the ordinary colleotion of sit 1302 Required s�eoc►rdk p�: scriber, charges,:=resolution• of •= • • 'm�t��'purposes... scriber.oc�•plaints4 and other b•. •... . a)Effective June 17,1993. the ope or at any accessible plaoo in the •m- -of every cable television. Ms = I X11 maintain for public inspeatio• a munity served by the..system. • ••t(8)a containing a list of all broad': =t {such as a public registry..for,* •ocu- . stations carried by its ys- ments or an attorney's.office . The evasion sta public inspection file shall be a•: :ble n in fulfillment of the mus •': nts pursuant to ;76.56. 'uch for public inspection.at any t •e dur- �uireme p • _ ins regular business hours. t shall include the call sign.c u (0)The records specified in •,= : • .=ph y of license,broadcast ohanne in the (a) of this section shall be = : *ed for ., cable channel number.edu•�=tional the period specified in 1176.i t ,'76.2?1(fl. se of a noncommercial uudcast station,whether tha, station respectively. 76.225(c). 76.601(0). , -d ?6.601(e). • s carried by the cable s.=tern on arch 29,1990. (d) Reproduction of reco • . Copies of b) The operator of every •:ble tele- any material in the pu•• o inspection ion system shall maintal• for public file shall be available fir machine re- pection the designation : •d location production upon rogue, made in per- Its principal headend. son, provided the =questing party c) Such records must •: maintained shall pay the reasona•le cost of repro- accordance with the •'rovisions of duction. F..equests Jr. 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. ,agraph(a) of this se tion in writing The system ope : or is not required to thin 30 days of rec apt of such re- honor requests : •e by mail but may 3st. do so if it choos a. . FR 17364,Apr.2,1993 (Secs.2.3,4,5. 11.303. 307.-308.309,315.317, 48 Stat., as ,nded, 1064,.1065, 1066, 1068, L305 •Records to be maintained 10- 1081,1082,1083, 084,1085,1088,1089;(47 U.S.C. calkp b cable = stem operators for 152.153.154.1• ,301,303.307.308.809.816.317))• public ti• • 29186 .14.1974.as amended at 40 P ug to be •intained.The oper- FR 25024,J •e 12,1976;42 FR 19349,A .13, �,)Records 66 FR 1961?. •r of every ca• e television system 1977; 61 FR 1, July 22,.1986;' 29.1 57 FR 11001,Apr.1,1992;58 FR ring 1,000 or •ore subscribers shall Apr. Feb. ,1,1993;b9 FR 6'?10a.Dec.'28.1994) lntain for.p •lac inspection a file •. . .; . .. staining a co•y of all records which 76.307 System Inspection.• . • required to •- kept by §76.207 (po- .cal file); 76 ��' (0 (sponsorship idea- T A;,rps m*ar f- a cable .television .cations); 7;.79 (EEO•records avail- syste shall make the syitteth,its Aub- e for pu• 0,inspection); 76.225(0) lie nspection file (if required by m merical :cords for children's pro- 176. ), and its records of subscribers arming); 6.601(0) (proof-of-perform- av lable for inspection upon request :e test ••ta); 76.601(e) (signal leak- by any authorized representative of the •I logs : •d repair 'records) and C mmission at any reasonable hour= : .701(h)(r•cords for leased access).test FR ice•Apr.13,19771 `. l)A re •rd shall be kept of eac to .. Alert 1 activ tion'of the Emergency 1 76,309 .Customer service obligations. item .r • 8) procedures pursuant'to .•• • I req ;meat of part 11 of this chap- (a) A cable franchise authority may I and he EAS Operating Handbook. enforce the customer service standards ecords shall be kept for three set-forth in paragraph (c) of-.this seo,- • • tion against cable operators.The:fran- -served] '°• • . chile authority must.provide affected 'cation 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 e: which the system operator main- standards. . • 611 -• . 4 - §76.304 47 CFR Ch.1 00-196 Edition) • -•_ - in this rule should be (iii)The operator will not be required . (b) Nothing re equipment or perform sur- to acquire construed to prevent or prohibit: measure compliance with the • . (1) A franchising authority and a veys to measure eing to cus- • cable operator from afire telephone answering standards above an historical record of coin- - . tourer service requirements that ex-coed the standards set forth in pared- plai pints indicates a clear failure to corn- graph(c)of this section; (iv) Under normal operating condi® . .. • (2) A franchising authority from ®n°bran- tions, the customer will receive a busy • forcing, through the end of the s;final 1 aez than three(3)percent of the �=- = - chase tears,p t n oustomer se v- -� ��- time- . ice requirements that exceed the stand® (v) Customer service center and bill ards set forth in paragraph (c) 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 r thorny 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 ands will be met no leas 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 (1)Standard installations will be per- that within seven (7) business days that imposes customer service require- f . i _. 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 (c) Effective July 1, 1993, a cable oh° distribution system. • erator shall be subject to the following (ii) Excluding conditions beyond the • customer service standards: control of the operator, the cable oper- - ::' i (1) Cable system office hours and at or 7:1-111 �-y ___..�,,. a � ,,,,gin -working cn `°�:.�°-e I telephone availability— interruptions" promptly and in no I (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 S. its subscribers 24 hours a day, seven other service problems the next busi- days a week. new day after notification of the serv- representatives ice problem. . :. • . (A)Trained company «a will be available to respond to c�+ (iii) The "appointment window" al- : S 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 may, access line ma be answered by a sere- maximum, a four-hour time block dur- • I 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 • 1 hours must be responded to by• a normal business hours for the express • trained company representative on the convenience of the customer.) next business day. • (iv) An operator may not cannc,.el an ' ?s• (ii) Under normal. operating :: di- - - answer time.by a cue- close of business on the business day A Lions, telephone a tomer representative, including.wait prior to the scheduled appointment. tune, shall not exceed thirty (30) sec- (v)If a cable operator representative - . • onds when the connection is made. If is running late for an appointment •' the call needs to be transferred, trans- with a customer and will not be able to fer time shall not exceed thirty (30) keep the appointment as scheduled,the ' seconds. These standards shall be met customer will be contacted. The ap • no less than ninety (90) percent of the pointment will be rescheduled,.as nec- t under der normal operating condi- essary, at a time which is convenient I tions,measured on a quarterly basis. for the customer. . 512 • • • Federal Communications Commission §76.400 • (3) Communications between cable (iii) Refunds—Refund checks will be ri perators and cable subscribers— issued promptly, but no later than ei- ther— (A) The cable operator shall provide (A)The customer's.next billing cycle tten information on each of the fol- following resolution of the request or owing 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-program-. -(iv) 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; •• . urination that a creditis warranted. . 0)• Installation and service maims- (4)Definitions--- - . nance 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 bust- (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" • means those service conditions which changes in rates, programming services are within the control of the cable op- or channel positions as soon as possible erator. Those conditions which are not in writing. Notice must be given to within the control of the cable opera- ubscribers a minimum of thirty (30) tor include,but are not limited to,nat- ys in advance.of such changes if the '- ange is within the control of the ural disasters, civil disturbances, ble operator. In addition, the cable power outages, telephone network out- operator shall notify subscribers thirty ages, and severe or unusual weather conditions. Those conditions which are (30) days in advance of any significant es in the other information re- ordinarily within the control of the c hang cable operator include,but are not lim- quired by paragraph (c)(3)(i)(A) of this iced .to, special promotions, pay-per- section. Notwithstanding any other view events, rate increases, regular provision of Part 76, *a cable operator peak or seasonal demand periods, and shall not be required to provide prior maintenance or upgrade of the cable notice•of any•rate change that is the system. result of a regulatory fee,franchise fee, (iii) Service interruption The term - or any other fee, tax, assessment, or "service interruption" means the loss chargé of any kind imposed by any of picture or sound on one or more Federal agency, State, or franchising cable channels. authority on the transaction between the operator and the subscriber. [68•FR 21109,"Apr. 19, 1993, as amended at 61 (ii)Billing- FR 18977,Apr.30,1996] • (A) Bills will be clear; concise and understandable. Bills must be fully • Subpart 1—Forms and Repo itemized, with itemizations including, but not limited to, basic and premium 1176.400 Operator, mail ad•. -, and .service charges and equipment charges. operational status ch: • :ea. Bills will also clearly delineate all ac- Within 30 days foil• ng a change of F y during the billing period,includ- Cable Television S : =m Operator,and/ optional charges, rebates and cred- or change of • operator's mail ad- dress,•and/o - •:e in the operational) In case of a billing dispute, the status of • cabletelevision system, the • •le operator must respond to a writ- Opera .. shall inform the Commission complaint from a subscriber within in• icing of the following, as appro- 30 days. • ate • • ... di . . 513 .i•..,,,..... ;� - •. •... .. SCHEDULE 3 PROVISIONS OF SECTION 76. 630 OF TITLE 47 OF THE CODE OF FEDERAL REGULATIONS "COMPATIBILITY WITH CONSUMER ELECTRONICS EQUIPMENT" y t - � 47 CFR Ch.I (l 0®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 t posed extension of the system radius in the cable system operator is.ref;-on- hibiting acramblini these bands. Notification shall include Bible for eliminating such co, a et 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 tilled geographical coordinates, the tween the nominal carrier fr uency of waiver is the file bi. new system radius and the maximum an aeronautical radio se e qualify- bussine �f the cabl• 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 carrier vw ,_ the Ff:��1 i_a; 12-_:,-.,.:_�.., ., = _ tea, component ca, bands without prior Commission au- gable of delivering pe= = power equal to no later than 30 dad thorization. or greater than 10- watts shall be fication was math comments should 1 (c) The operator of the cable system maintained or exc:-ded at all times. eras Communicati • shall maintain at its local office a cur- The minimum ire ency offsets are as Services Bureau 1�t rent listing of all signals carried in follows: should include the these bands, noting carrier and subcar- • for to whom the t rier frequencies, types of modulation, Mink=ire- Individuals should • and maximum peak power which oc- • ���" wormy comments to(the c curs at'any location within the cable 108-113 MHz.. ._„N•»_N-,.,- -• .—•N (50+1)kHz. place of business). distribution system. 328.6-335.4 M. wM............._.-.......•......_. Cable operators (d) The operator of the system shall 108-136 M ....-...............................-........ reply no later I • • provide for regular monitoring of the 225-328.6 Hz•---...-•--......•----.._YNN-_.-.M._ (100+1)kHz. date subscriber cable system for signal leakage cover- •'4``w'M --••••••••••••••••••••••••�•--...---... filed. ing all portions of the cable system at In r table,T is the absolute value caof ble (b) Cable syste least once each calendar year.Monitor- th frequency tolerance of the cable vide their subsc ing equipment and procedures shall be tem terminal d( •adequate to detect leakage sources levision signal. The actual frequency tomer premises which produce field strengths in these olerance will depend on the equipment porates remote c bands of 20 microvolts per meter at a and operating procedures of the cable ,,, t, �, o �,�,,,,, • system, but in no case shall the ire- `-°i '`t` • distance of 3 meters.The operator sha devices with cc maintain a log showing the date = i d quency tolerance T exceed ±25 kHz in remote control u i location of each.leakage source id ti- the bands 108-136 and 225-400 MHz, no action that . feed, the date on which the leak A was [50 FR 29401,July 19,1985] vices from being 4 eliminated, and the probable c use of mercially avail: • • the leakage. The log shall be ept on §76.630 Compatibility with consumer unit. Cable syst file for a:period of two (2) ars, and electronics equipment. wised that this shall be made to authorized epresenta- (a) Cable-system operators shall not them to activel • tives of the Commission on equest. scramble or otherwise encrypt signals control functionf (e) All carrier signals o signal com- ponents capable of d: ivering peak carried on the basic service tier. Re- � equipment wher • power equal to or gr-ater than 10-s quests for waivers of this prohibition I not operate wit] �•� watts must be opera =d at frequencies must demonstrate either a substantial tion procedure. C offset from aeronau cal radio services problem with theft of basic tier service may, however, d or a strong need to scramble basic sig trol functions c • operated by Co •ssion licensees or nals for other reasons. As part of this tomer premises • by the United S:ates Government or showing, cable operators are required quested by the sr its agencies wit'. n 111 km (60 nautical to notify subscribers by mail of waiver (c) Cable systc miles) of any rtion of.the cable sys- requests. The notice to subscribers scrambling,ever; :, tern as give in paragraph (f) of this !IMP. �1Q =flee. w+w ' L thirty r�ww•��►/ti �w ww+� .1 ;�,,` ( limit of 111 km may be _--- • _� fle.. nc :a►�er than hi n.;.. _ _ `�, ' section. ,• -- terminal_ eased 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 Corn- §15.3(e)of this c1; mission, and cable operators must in- ! subscribers' rece ; fined by he Federal Aviation Ad/flints- form the Commission in Writing, as offer to supply tratio• or other federal government g agen• for low altitude radio naviga- soon as possible, of that notification special equipmer date. The notification .to subscribers simultaneous rec tia or communication services). If an must state: nals. The equips • op-rator. of a cable system is.notified elude a single • • the.Commission that a change in On (date of waiver request was filed"with dual descrambler ': o peration of an aeronautical radio the Commission), (cable operator's name) = f :c•. ers and bypass • 530 • a • L______. ._ __:.___ - . . ---,- . •-,.__ _.,....,..,___ _________. . •,. ., _. ._ ,,....--- ., .. , •.- _. , -._.,, ------- -:- -_-..-_ .. . . _.•, .•.,,__ , ._..,.._„. _„ .. . • 0-1-96 Edition) Federal Communications Commission able system in filed with the Federal Communications Com- meat,-such as two independent set-top offset criteria, mission a request for waiver of the rule pro- terminal devices may be offered at the "tor is res n- hibiting scrambling of channels on the basic time time that the single terminal de i , tier of service.47 CFR§76.630(a).The request vice with dual tuners/descraxnblers is '• such conflict for waiver states (a brief a of the . Won. of the request for offered. For.purposes of this rule,two waiver request). A copy set-top devices linked by a control sya- ency offset be- waiver is on file for public inspection at(the operator's local place of teen that provides functionality equiva- ler frequency of address of the cable ope lent tj�_Yj�., that y/��,.,rw�_�jt_device �- �• .-1_-_ -4'22'. _ . se:..�.i. ,s. F of W. i triAl y d.•aL.ra i- .1` !: �e:-�-ice qualify- busiu:��r, - of this Section Individuals who wish to comment on this descramblers is considered to be.the ._ request for waiver should mail.comments to same as a terminal device with dual icy of any cable :' • .component ca- the Federal Communications Commission by descramblers/deeoders. no later than 30 days from(the date the noti- (1) The offer of special equipment power equal to fication was mailed to subscribers). Those shwa be rna,de to new subscribers at the watts shall be o comments should be addressed to the: Fed- d at all times. Cable time they subscribe and to all subscrib- oral Communications Commission, y offsets are as Services Bureau, Washington, DC 20554, and ers at least once each year. of the cable opera- Such special equipment shall,at a 1 should include the name (2) pe tor to whom the comments are applicable. minimum,have the capability: Minimun ire- Individuals should also send a copy of their (i) To allow simultaneous reception 4u offsets comments to(the cable operator at its local of any two scrambled or encrypted.sig- .......N- sow k . place of business). nals and to provide for tuning to alter- Cable operators may file comments in native channels on a pre-programed ...... i reply no later than 7 days from the schedule;and ------•-• (1004)kHz. date subscriber comments must be (ii) To allow direct reception of all -�-�- filed. , • other signals that do not need to be value of (b) Cable system operators that pro- processed through descrambling or :e olf the vide their subscribers with cable sys- _ :e of the cable other cus- decryption circuitry (this capability tem terminal devices and -,� 0 a a i - -Yded. ap,b a . ; �tual frequency cs,�:: ��s_a���_, :.� p�::: _-_._i tomer premises equipment that rxxcor- separate by-pass switch or through in- a the equipment porates remote control capability shall terns)by-pass circuitry in a cab)® sys- ea the cable permit the remote operation of such e shall the in s with commercially available tern terminal device). -� teed ±25 kHz in device (3) Cable system operators shall de- remote control units or otherwise take termine the specific equipment needed 5-400�'�• no action that would prevent the de- bei operated by a corn- by individual subscribers on a case-by- vices from being pe case basis, in consultation with. the • mercially available remote control J subscriber. Cable system operators are with consumer unit® Cable system operators are ad- :nt that this requirement obliges required to make a good faith effort to wised provide subscribers with the amount rators shall not them to actively enable the remote and types of special equipment needed .' encrypt signals control functions of customer premises s • equipment where those functions do to resolve their individual compatibil- �ervice tier. Re- equip I not operate without a special activa- ity problems. this prohibition " tion procedure. Cable system operators) (4)Cable operators shall provide such per a substantial equipment at the request of individual Basic tier service may, however, disable the remote con- equscribers and may charge for pur- 'amble basic sig- trot functions of a subscriber's cus-� sub a or lease of the equipment and its . As part of this tomer premises equipment where re-1 char installation in accordance with the crs are required � quested by the subscriber. _ V� � •` �' (c) Cable system ^perm :,teat c p _vize, a o. .,....e r e acioz = e•� _ - y to of waiver ion or similar tech- for customer premises equipment used 4 to subscribers scrambling,encrypt nologies in conjunction with cable sys- to receive the basic service tier, as set,ter than thirty he date the re- tern terminal devices, as defined in forth in §76.923. Notwithstanding the i with the Com- §15.3(e)of this chapter, that may affect required annual offering,in- cable operaa- erators must rep- .- subscribers' reception of signals shall tors shall respond to subscriber offer to supply each subscriber with quests for special equipment for, i t writing, special equipment that will enable the tion of multiple signals that are that notification made•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 nest was filed with dual descrarnblersidecoders and/or tire- compatibility matters to their sub- operator's name) ers and bypass switches. Other equip- scribers in writing,as follows: 531 • At- • ,,_., .......,,. _ , , , ,.,„,,.''',..21',2:.-;,.---,'' '-,-,-7...,,.-'' II §76•/01 47 CFR Ch. I (10-1-96 Edition) F deral Communications Coma (1) The consumer information pro- (iii) In cases gram shall be where cable system op- .•x• etory activities or organs ir. provided to subscribers erators offer remote control capability i.�'n Y offensive manner as me at the time they first subscribe and at with cable w— least once a year thereafter. a system terminal devices and :+Y ontemporary community erators may choose the time Cable op- other customer premises equipment ��•ds. means by which they comply with the that is provided to subscribers, they (b) ' cable operator that do+ annual consumer information require- shall advise their subscribers that re- pningb't the distribution of prc ment. mote control units that are compatible J Minh sj accordance with a paragra any This requirement may be sans- with that equipment +�f this section shall fled by a once-a-year mailing to all from other sour may be obtained place any subscribers. The information may all lets. Cables stem ' such as retail out- ;.ram o deers a indecent identified b included in one of the cable system's provide Y operators shall also f;ram pr eiders as indecent on 4 regular subscriber billings. p e a representative list of the regular ch noels that are avails models of remote control units cur- subscribe only with their prior (2) The consumer information pro- rently available fr gram shall include the following infor- compatible om retailers that are t.en copse I t as provided in pars matron: p le with the customer premises cc)of this s-coon. (i) Cable system operators shall in- equipment they employ. Cable system (c) A cabl- operator shall mak+ form their subscribers that some mod- faith effort required to make a good within available to a subs ell of their receivers and videocassette will not be liable f compiling this list and eithin 30 d. s of receipt of a w recorders may not be able to receive all lions. This list or inadvertent orris- request for a cess to the prograr recorders the channels offered by the cable more than s e shall be current as of no Lhat includes statement that t of system when connected directly to the the consumer education before the date questing subs*,fiber is at least ei€ cable system. In conjunction with this the c cation program is des- .year's old; a ca+le operator shall 1 information, cable system operators are also to subscribers. Cable operators nate a subscri a-is access to suc shall briefly explain, the types required to encourage sub- of with n 30 days from r nel compatibility Ypes of chan- scribers to contact the cable operator of a subscriber's request. p y problems that could to inquire about occur if subscribers connected their remote cooler t whether a particular (d)A program •rovider request.. equipment directly to the cable system re °l unit the subscriber cess on a leases access channel and offer suggestions might be considering for purchase identify for a ca,le operator an ggestions for resolving would be compatible wi rammin that i indecent those problems. Such suggestions with the subscrib- g g e as di ggestions could er's customer premises equipment. in paragraph (g) I this section. include, for example, the use of a cable writin terminal device such as a set- N0�'E TO §76.630: The provisions of identification steal be in address top channel converter. Cable system para- include the full ame, address Y graphs(a)and(b)of this section are applica- telephone number �f the program operators shall also indicate that chan- ble July 31, 1994, and June 30, 1994, respec- opl ators s ibll tively. The provisions of paragraphs (c) and gr gram and a state sent that the with compatibility of problems associated (d) of this section are applicable October gram provider is r�sponsible fo programming that is 1994, except for the requirement under para- content of the not scrambled or encrypted pro! �amming. A Yp program- graph(c)of this section for cable system op- operator may requir- that such if ming could be resolved through use of erators to supply cable system terminal ' converter devices without al the r on be provided p to 30 da vices with dual tuners (as needed), which is the requested date fo carriage. i descrambling or decryption capabili- applicable October 31, 1995. The initial offer ties that can be obtained from either of special equipment to all subscribers,as re- gram provider reques ing carria the cable system or a third party retail quired under paragraph (c) of this section, cent muss"live programming" o t exercise re--eonabl a leased s vendor. shall be made by October 31,1994. channel hat is not id nnab as (ii) In cases where service is received C59 FR 25342, le e May 16, 1994, as amended at 61 to insure that indecen program. through a cable system terminal de_ FR 18510,Apr.26,1996] vice, cable system operators shall indi- cate will not be presented. A cable ope will not be in violation 9 o paragrai that subscribers may not be able i •art L--Cable Television of this section if it fails to to use special features and functions of block their TV receivers and Access cent programming that is not is recorders,including feat videocassette fied era a program prove r as req g ures that allow §76.701 Leased cess channels, in ar ca h d of tf�is se tion. the subscriber to: view a p �' p ( ) one channel while simultaneously rogram on (a) Notwithstan g 47 U.S. (e) A cable operator ay requ lta re- 532(b)(2) (Communicate s Act of 1934, program provider to cer ify that cording a program on another channel; as amended, section ' record two or more consecutive 612), cable opera- programming intended f• leases grams that appear pro- tor, in accordance with 47 .C. 532(h) cess is not gramme • g subj ming c ppear on different chan- (Cable Consumer Protection a d Com- decent programming subje,t toter nels; and, use advanced picture genera- petition Act of 1992 lion and display features such as "Pic- adopt and enforce 1992, section 10(a) may quirement of paragraph (b) of the: ture-in-Picture," channel review and ten and a prospectively a 't_ lion. A cable operator ma requ. other functions that necessitate chan- published policy of prohibiting program provider of "live prog nel selection by the consumer device. programming mming which, it reasonably be- forts to certify that real s nabl describes or depicts sexual or forts will be made to ensure that 532 4 r 's SCHEDULE 4 PROVISIONS OF SECTION 76. 630 OF TITLE 47 OF THE CODE OF FEDERAL REGULATIONS " PROTECTION OF SUBSCRIBER PRIVACY" t 1� • • . PART IV-MISCELLANEOUS PROVISIONS . X :• 1. Protection of subscriber privacy M :, ' _. ' '' :daf nitions ` • personally identifiable information; (a) Notice to subscriber regral'dtng�p .... -: • - - • an agreement to provide any cable :,•� �r 1) At the time of entering into a �' once a year' ' • or other service to a subscriber and at least y . E.) o operator shall provide notice in the form of a . �, er, a cable opera p ate, written statement to such subscriber w hich clearly and j .: ., S icuously informs the subscriber of- `' ersonall identifiable information collect- -a�� ._ (A) the nature of personally er and the 7 ?. to be collected with respect to the subscriber�. ed or t nature of the use of such information; " ;.�.{:• the nature, frequency, and purpose of any disclosure r�.,,; (B) th � q including an identif i- } which may be made of such information, g of persons to whom the disclosure may be f . -.� cation o the typ es o p ' - ` - made; ::.�: . (C) the period during which such information will be main- y'�ctained by the cable operator; ''.:.j��.�:l'. . (D)D the times and place at which the subscriber may have . : `access to such information in accordanc e with subsection(d) of ,`-this section; and ;, (E) the limitations provided by this section with respect to s . the collection and disclosure of information by a cable operator _-,`. an' of the subscriber under subsections (f) and (h) of 41,:this the right :.,:t=this section to enforce such limitations. . .•e case of subscribers who have entered into such an agreement ore date of this section, such notice shall be provid- �� • the effective •=-'.With days of such date and at least once a year thereafter. - . n 180 day _..- ,,,. � � ' ��. • �: ••' subsection )of this section— •••. (2) For purposes.of this section,other than. (h (A) the term'4`•personally identifiable information"-does not include any'record of aggregate data which 4oes•tiotidentify pa'an.ticular'persons; .(B).the term"other service":-includes y 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 ad&tion•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 commonbwnership or control with,a.cable operator,and(ii) provides any wire or radio communications service. . .•• • • % of personally identifiable information using cable system . .. '�Exce t provided in paragraph (2), a cable operator shall ;',�•' - p as p identifiable of orma- - _ the cable system to collect personally • subscriber without •the prior written or elec- tion concerning any s ! tronic consent of the subscriber concerned. (2) A cable operator cabl erator may use the cable system to collect such information in order to— obtain information necessary to render a cable service or ' • (A) erator to the subscriber; other service provided by the cable op or • •' (B) detect unauthorized reception of cable communications. i (c) Disclosure of personally id`eiitifiable information ' ' (1) Except as.providedi in paragraph_(2),a cable operator.shall not disclose identifiable information Concerining�any subscriber without the prior written or personally P electronic consent of the subscriber concerned and shall take such actions.as are new to• prevent unauthorized access.ta .stich information by.a person other than the subscriber or cable operator: .," .': . . . :, y• .. (2) A cable operator may disclose such information if the di' sure is--. sclo- (A) necessary to render, or conduct a legitimate business activity related to, a cable service or other service rovided b p by .. the cable operator to the subscriber; (B) subject to subsection (h) of this section, made pursuant ursua to " – a court order authorizing such 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 t any cable service or other service, if— to (1) the cable operator has provided the subscriber the opportunity to prohibit or limit such disclosure, and (11) the disclosure does not reveal, directly or i ndirectly, (I) extent of any viewing or other use by the sub- scriber of a cable service or other service provided b the cable operator, or by (II) the nature of any transaction made by the sub- scriber over the cable system Y y em of the cable operator. (d) Subscriber access to information A cable subscriber shall be provided access to all personally information regarding that subscriber which is collect- ed and maintained by a cable operator. Such information ll be made available to t shall the subscriber at reasonable times and at a convenient place designated by such cable operator. A cable sub-,U.$. scriber shall be provided reasonable opportunity to correct any .::1 error in such information. Y y' rat:- •Destruction of information 1:' *cable operator shall destroy personally identifiable information •-'�"- matron r' '•,e information is no longer necessary for the purpose f A •';' collected and p p for which ; -was there are no pending requests or orders for . ess to such information under subsection (d) of this section or =pursuant-pursuant to a court order. In-civil action In United States district court; damages; attorney's fees :; and costs; nonexclusive nature of remedy c-(1) Any person aggrieved by any act of a cable operator in Y bring civil action in a United States violation of this section ma brin a civ' p district court. - (2) The court may award- , (A) actual damages but not less than liquidated d • computed at the rate of$100 q damages • $ a day for each day of violation or $1,000, whichever is higher; (B) punitive damages; and �` (C) reasonable attorneys' fees and other litigation rea- sonably incurred, g costs rea- (3) The remedy provided by this section shall be in ' any other lawful remedy available in addition to y ilable to a cable subscriber. . ! _ (9) 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) 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. SCHEDULE 5 CALIFORNIA GOVERNMENT CODE SECTION 53054 "CABLE TELEVISION AND VIDEO PROVIDER CUSTOMER SERVICE AND INFORMATION ACT" I s+ • 4 3051 CITIES, COUNTIES, & OTHER AGENCIES GENERA] 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 late claim or a petition to court agency fails to file such information. Tubbs v. 53054.2. I for an or•er relieving him from the claim-filing Southern California Rapid Transit Dist. (1967) 53055. C requireme t. Wilson v.San Francisco Redevel- 63 Cal.Rptr. 377, 67 Ca1.2d 671, 433 P.2d 169. 53055.1. 1■ opment Age cy (1977) 138 Cal.Rptr. 720, 19 - 53055.2. C Ca1.3d 555,5k4 P.2d 872. 2. Purpose of law . un- Purpose of this section was to provide means 53055.3. C One of the �robable legislat ive purposes rP derI in 9464 excusing failure to present for identifying public agencies and names and . 53056.• F y g § it has not supplied correct addresses 'of designated officers needed to en- and if public e�ti y PP 53057. R and complete information to the roster of public able or assist person to comply with applicable . agencies is to assurit 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, t ment Agency (1977) 138 Cal.Rptr. 720, 19 67 Cal.2d 671,433 P.2d 169. Ca1.3d 555,564 P.2d 8 •. g 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 Ct 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 confused 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 y 53054.: with claims statute and circumvent special 'x- clerk, since it was a subdivision of a district. Th( month statute of limitations contained Hovd v. Hayward Unified School Dist. (App. 1 t § 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. shout , r ensure this § 53052. Repealed by Stats.1965,c. 653, .. 2020, § 33 . that custom Historical and Statuto% Notes (b) Cable The repealed section, added by Stats.1 963, c. 4121, § relating to time of filing and form of ,.. P quality sery re 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. See Government developmer declared the roster to be a public record. Code §§ 905, •11.2. For applicability of Stats- (c) It is Former§ 53052, added by Stats.1949, c. 81, 1963,c. 1681, • 3267,see Historical and Statu- 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 Notes (Added by Sty Historical and Statutory The repealed section, added by Stats.1949, c. ti § 53054.2 81,p.285,§ 1,related to contents of a claim for damages. See Government Code§ 910. = As used in (a) "CablE Article 3.5 television se CABLE TELEVISION AND VIDEO PROVIDER CUSTOMER (b) "Cablh SERVICE AND INFORMATION ACT under comrr contiguous c Section (c) "Vide( 53054. Short title. one or 53054.1. Findings and declarations. • . 12 .. • • ,•.: .. o GENERAL POWERS & DUTIES § 53054.2 IES OEI�tE . 1e 5 Div. 2 ablic 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. of failure to distribute _ leans 53056.• Failure to distribute annual notice; penalties; notice ; and prior to imp'sition of penalty. en- cable 53057. Repealed. _ lifor- - 377, Article 3.5 was added by Stats.1992, c. 262 (S.B.1010), § 1. § 53054. Short title • igen- ryof 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.) emis- Dist. Historical and Statutory Notes Cal. Former§ 53054, added by Stats.1949, c. 81, by Stats.1963, c. 1681, § 18. See Government g en- § 1, relating to defense counsel, was repealed Code§§ 995,996. ment ntn uY § 53054.1. Findings and declarations tric The Legislature finds and declares all of the following: 3 (a) In an unregulated environment, customers of cable and video providers should g et 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- in of quality uali service to their customers. Cable television and video providers should tats. continue to establish standards for customer service so as to further the meet development of high-quality customer service. 3tats. ►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 rovider" means any person, company, or service which provides P - one or more channels of video programming to a residence, including a home, 4110 . . 13 1 CITIES, COUNTIES, & OTHER AGENCIES .i • z § 53054.2 �S, � � G Title 5 Div. condominium, apartment, or mobilehome, where some fee is paid, whether (3) A directly or as included in dues or rental charges, for that service, whether or 1 operator II not public rights-of-way are utilized in the delivery of the video programming. R television A "video provider" shall include, but not be limited to, providers of cable service st television, master antenna television, satellite master antenna television, direct (Added by broadcast satellite,.multipoint distribution service, and other providers of video programming, whatever their-technology. 305`. § 5 (Added by Sta. tats.1992,c.262(S.B.1010),§ 1.) After ti i i' z � have bee § 53055. Customer service standards 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`v. • refunds, and credits. No pro Y (c) Procedures for termination of service. city, cow (d) Notice of the deletion of a programming service, the changing of channel are conta •assignments, or an increase in rates. video prc law for o e Complaint procedures and procedures for bill dispute resolution. (Added by Stats.1992, c.262(S.B.1010),§ 1.) (A 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) ThE cable tek § 53055.1. Notice of customer service standards . by ord • m (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 which th, customers, a notice describing these customer service standards. New custom- • b Tin ers shall also be provided with this notice when service is initiated. _ : O, p or video (b) The notice given to new customers pursuant to this section shall include, customer in addition to all of the information described in subdivisions (a) to (e), . inclusive, of Section 53055, all of the following: penalty F provider , (1) A listing of the services offered by the cable television operator or video provider which clearly describes all levels of service, and including the rates for the notice - no penal each level of service, provided that, if the information concerning levels of provider service and rates is otherwise distributed to new customers upon installation by p er le-cable television operator or video provider, the information need not be I (Added by included in the notice to new customers required by this section. (2) The telephone number or numbers through which customers may sub- j Former§ . scribe to, change, or terminate service, request customer service, or seek i p.285,§ 1 g � general or billing information. I 5275,§ 4,i 14 , j . . . . . • .▪ , _,..._7.... . .G.- . ...,• . • • -yr GENERAL POWERS & DUTIES . § 53056 Div. 2 the rights and remedies which the cable television (3) A description of t g customers if the cable operator or video provider may make available to its c oper • operator or video provider does not materially meet its customer television opera Service standards. (Added by Stats.1992,c. 262(S.B.1010),§ 1.) -- Compliance with customer service standards; annual report § 53055.2. Comp After the customer service standards established pursuant to Section 53055 in one year, each cable television operator and video have been in effect for on y � that cable television er shall report ort annually on the performance of P p operator or video vid provider with regard to meeting its customer service stan- 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 No provision of this article shall be construed to preempt the prerogative of a county to enforce customer protection standards that city, county, or city and Y television o erator or are contained in a franchise or license granted to a cable p • • to Section 53066.1 or that are otherwise authorized by video provider pursuant -- law for other cable television operators or video providers: (Added by Stats.1992, c.262 (S.B.1010),§ 1.) • § 53056. 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 servic e to customers may, • schedule of penalties for the failure of the cable by ordinance, provide a P television operator or video provider to distribute the annual notice required uired by Section 53055.1 not to exceed five hundred dollars ($500) for each year in , which the notice is not distributed to all customers. y (b) The city, county, or city and county shall give a cable television operator Y n notice of any alleged failure to distribute to all or video provider written . Y before imposing any = _ customers the annual notice required by Section 53055.1 p subdivision (a). If the cable television operator or video penalty pursuant to su provider distributes this notice to all customers within 60 days after receipt of the city, county, or city and county pursuant to this subdivision, the notice from t ty, coun tY osed u on the cable television operator or video no penalty shall be imp P provider pursuant to subdivision(a). • (Added by Stats.1992,c. 262(S.B.1010),§ 1.) Historical.and Statutory Notes F ormer§ 53056, added by Stats.1949, C. 81, was repealed by Stats.1963,C. 1681,§ 18. See a e Y p. 285,§ 1, amended by Stats.1959,c. 2167,p. Government Code§ 990. 5275,§ 4,'relating to insurance against liability, 15 •. . . SCHEDULE 6 CALIFORNIA GOVERNMENTS CODE SECTION 53088 "VIDEO CUSTOMER SERVICE ACT" 6.--:...-. .:T i .,.. . , . . _ .. ..,. _. ,..,_ :, . : . ,, ,,, > . • . . :., ,, . : • ,• OTHER:AGENCIES CITIES, COUNTIES, O _a t. f. '---; 3�� Title aSbie 5 '' �~' � .special�tax levied prior:to tl�e:.effective },� .. section shall not apply'to any.sp b (d). is se � date of section. I. Added b St= . .1996,c. 1125.(A.B.188),§ 1.) 's`' C Y . '. '', •I. seismic safety improvements;.public financ® -:: . '*A § 53087.51; ivate property; seas tY } $:-. . i •; notice to lienholders :t b a local ublic entity, including a charter A loan or expendit`, �e of funds by public .. - • • owned roe for purposes of seismic �•-x* . to upgrade or im ove privately o property rtY r • city, Pgr . . • - vision of funds creates or can create a lien: t- safety or retrofitting, whe .. the pro • • not, en combined with existing liens on the property, on the property, shall as determined �� :�� exceed 80 percent of the curre,t appraised value of the propQrty, , _, = ex P • existing lienholders consent `=r, certified a aiser, unless,the' ,s7-' - P -�-?� �..).. by an independent, to rovide '� �����: writing to a hi her loan-to-vat ratio. Notice of the intention provide ,.: in car g g ..: �s:- • the ro e Ns shall be given to existing lienholders of financing to the owner of P P agency authorizing '� �~'�! not less than 30 days prior to a vote of the local age y g .•. t record � ��� the provision of financing to the owner o e property. „-. P �ti: C(Added by Stats.1995,c.385(S.B.1010),§ 1.) • ��.t Historical and Statuto otes I ,{,,f Section 4 of S tats.1995, c. 385 (S.B.1010), title and lie s in order to make economic deci- • , ~:R: sions affectin: their investment. Government ,,, provides: agencies,like p vase parties,should not be per- The Legislature hereby finds and declares as mated to create -ns that would jeopardize the follows: security of existin •lienholders merely to im- " he creation and priority of liens on proper- prove for seismic r rofit purposes privately . T P -j• i of statewide concern. Property owners, owned property withou e consent of the prior :• . ..• ty is I purchasers,and lenders must know the status of lien holders. Article 4.5 - .!,,i :. CUSTOMER SERVICE ACT VIDEO . 1 Section • . 53088. Short title. i . 53088.1. Definitions. :,-...,er information; dispute resolu- ; ` 53088.2. Duties of video providers; disclosure of customer Lion p rocedures; authority to schedule penalties. .• Article 4.5 was added by Stats.1992, c. 1198 (A.B.2388), § 1. s: • Compensation of Elective and Appointive Officers . Former Article 4.5, Compensa f ;•.� During War, added as Article 4 by Stats.1951, c. 1370, p. 3282, 1, _ renumbered Article 4.5 and amended by Stats.1961, c. 84, p. 1086, § 35, _ 'n o ormer §§ 53070, 53071, was repealed by Stats.1970, c. __ - - . COYISISt1 g f f _ - � 3014 § 62.5. ' �`�- �' § 53088.1513,p. • Short title This article shall be known and may be cited"as the Video Customer Service ` , 'rhi v- Act. .• (Added by Stats.1992,c. 1198(A.B.2388),§ 1.) 1. b8 • • • . . . . 0 ..,.. . • . • - 1 1 1:: . : - . . . : • ,--.- ! ' _ it AI .i-=::GENERAI, POWERS & DUTIES § 53088.2 ... • • :` ''';‘..!Div. 2 i I. I : • 1 ,• , ._r § 53088.1. Definitions • ' I. : 1: •:."-?:. p r. .'1.-.-ki (a) "Video provider" means any person, company, or Service which provides ! i•'? : 4- . '1 I ..;t: one or more channels of video programming to a residence, including a home, . t t ,.: : ' •-r condominium, or apartment where some fee is paid, whether directly or as 1 f.i.--. - - f ..- i :-.. included in dues or rental charges, for that service, whether-or not public .... . : , • t• • i• - , rights-of-way are utilized in the delivery of the video programming© A "video .■ t. - i provider" shall include, but not be limited to, providers of cable television, — f.• li ;:- .... - ,.. :. ,... n.atter antenna television, satellite master antenna television, direct broadcast -- .: k . j _ 4 satellite, multipoint distribution services, and other providers of video program- ; --:?.-. ._ _::. *.--:- 7.:_-- -----...,..,..,• . .. . - •.-•if 1 . m ,ing, whatever their technology. A video provider shall not include a landlord ir - providing only broadcast video programming to a single-family home or other • .: .0 residential dwelling consisting of four units or less. . :. .. . • i . _ . . • (b) "Material 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.) -i • ' 1.1 , § 53088.2. Duties of video providers; disclosure of customer information; 1 dispute resolution procedures; authority to schedule penal- .. 1•': - : :.• . '.., ties . . (a) Every video provider shall render reasonably efficient service, make .: . ... , repairs promptly, and interrupt service only as necessary. _.: - li-1-- — - -- ---• (b) All video provider personnel contacting subscribers or potential subscrib- I''' ers outside the office of the provider shall be clearly identified as associated I, ..i .. IC-1 if with the video provider. 1, :.!.•i...1 •• . (c) At the time of installation, and annually thereafter, all video providers :.•,. .- ":;::.: .i. t I shall Provide to all customers a written notice ofthe programming offered, the P.-.- :•. L. . ‘ ::::.... prices for that programming, the provider's installation and customer service .J.. • 1 1...1. policies, and the name, address, and telephone number of the local franchising 1 :I- -: ... .-. :::.-- authority. .;.-.,•• :..;' .... 1 • .: - (d) All video providers shall have knowledgeable, qualified company repre- ,. .... sentatives available to respond to customer telephone inquiries Monday 4.-1-4 f-'•'-':.: through Friday, excluding holidays, during normal business hours. •IP '.:1:::•. (e) All video providers shall provide to customers a toll-free or local tele- ti; „Ott i ...1 ' ..•"1:rp: phone number for installation, and service, and complaint calls. These calls -!11-1: 2. • -.a.t.• ; ii..1 ...t.,, .,1z14-:.shall be answered promptly by the*video providers. The city, county, or city !Jail. ...-•=,_-__:,, ..,.._....j. .,_,...._,. , • — , . .y4.---:-.----------. .--,----,--- ;.-t......._;;-,.:..And county may establish standards for what constitutes promptness. 1411 ,, • •- - •"--! 7-."-:=-1•; .(0. All video providers shall render bills which are accurate and understanda- ir,..$., , -•-_,-,.:', tlii ._4• ..---1.:-_,-7.-_-.-ble. -,..,-lc. - -------rill-' . 5:1{ 1!, • ... ..., • . -'-`.-;.-4(g) All video providers shall respond to a complete outage in a. customer's , ..i.1._..- ,••• to -1 ,• -, -. ,f1"---:.-'''''.,service promptly. The response shall occur within 24 hours of the reporting of illi 1 , 1 i!Lii sucn. outage to the•provider, except in those situations beyond the reasonable -.•-• • ,-.4.`- ---..-.control of the video provider® A video provider shall be deemed to respond to a . . 1; .•11. 66 1 nip ete outage when a company representative arrives at the outage location 1,1 11 , •..„. .•:• _ .-... Arithin 24 hours and begins to resolve the problem® I'll ',i1 • , .•,... • i 1 'ill " - 1- ...,:-... . 69 _,. • - -,.. .:,. - ' riil -, ...,• . ......,.... - : •. • -...4.•:. . • •.--, .... . :•:. ‘...' .::::4...;. 1 111 . - - - • .... ... . ., •:ii:..': • 'i - - • . ,.:.;,4;; 1 !t:--,-'-:, ---_--:./.'47'1--::-•-•7 -,--...-7: . • 1:-,t;`-,-._ -_!.- .'.--,' --I:7'-'--- -, • ,,. ., _ _ -.. , ::i,'1,..**. . • 1;. . liLi.,,....... . . .. . .. . _ ,....... ik,!,.. .,..• - • ...,., - w.-,:,.,• 1 - . . . ..;• :, .4'4: i ' ' - - • _ -.:, W'.7` . t CITIES, COUNTIES, & OTHER AGENCIES -• -. •: Title 5:, •=' ��l ' l video roviders shall provide a minimum of 30 days' written notice » .- (h) Al p --'' • . increasin rates or deleting channels° All video providers shall make before increasing �}- • • eve reaso, able effort to submit the notice to the city, county, or city and .- i. every � . - county in advance •of the distribution to customers. The 30-day notice is • • of channels were outside the control ' .• waived if the increases in rates or deletion • of the video provider. In those cases the video provider shall make reasonable. - ; � c P• much notice as ossible. • efforts to provide customers with as possible. • i - Every video provider shall allow every residential customer who pays his •: /r15 . directly to the video provider at least 15 days from the' date the bill or her bill du-e y P for services is Mailed to the customer, to pay the listed charges unless otherwise I agreed to pursuant to a residential rental agreement establishing tenancy. . _=;: Customer payments shall•be posted promptly. No video provider may termi- •:. �`` PY nate residential service for nonpayment of a delinquent account unless the ... : . ' • notice of the delinquency and impending termination .:s video provider furnishes 9 Y ' at least 15 days prior to the proposed termination. The notice shall be mailed, • postage prepaid,osta a aid, to the customer to whom the service is billed. Notice shall P not be mailed until the 16th day after the date the bill for services was mailed to 1 . the customer. The notice of delinquency and impending termination may be - art of a billing statement. No video provider may assess a late fee any earlier P g than the 22nd day after the bill for service has been mailed. tie of termination of service pursuant to subdivision (i) shall (j) Every notice _ - 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 termin?ti^n of .'' service. (4) The telephone e 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. .-:• 4•Service may only be terminated on days in which the customer can reach a .y representative of the video provider either in person or by telephone. (k) Any service terminated without good cause shall be restored without •- _. charge a for the service restoration. Good cause includes, but is not limited to, ' g failure to pay, payment by.check for which there are insufficient funds, theft of - P Y P Y •-� service, abuse of equipment or system personnel, or other similar subscriber `:. actions. .: p (1) video All vid providers shall issue requested refund checks promptly, but no - later than 45 days following the resolution of any dispute, and following the _.: _• -_ return of the equipment supplied by the video provider, if service is terminated. -,:i(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, Y ., any deductions permitted by law. -• (n) Video providers shall not disclose the name and address of a subscriber - .. • for commercial g ain to be used in mailing lists or for other commercial :1. purposes Y not t reasonabl related to the conduct of the businesses of the video • . 70 . • Y • �• •;'• 1 ) . . :,..- ...,...?? ..- • ..- ..".- L a1 ,; 411 . • •. _ .. . . _ 411111 • • . . ..., . .. ._• . . . •_...• ._ . • : . , ..... . • • . . • • . . . • • _ . . .._ . _. . . _, _•.,,.:: ,.,...•.. . - 1, -,.., .,S,:.1.. • ,...‘,i_ • ..••• • . I. j ",..,:::. c.•,..1• -7. . ' i ENTERAL POWERS & DUTIES § 53088.2 I" • • •,..01.:.2. • . ,!: . -.••••yi:‘,.4..-. ' 1.- • ' -",-:- --iitoviders or their affiliates, unless the video providers have provided to the ' 1. -.---•. -;,'•--, ' • ., .._ . . ...''''.i. 'thscnber a notice, separate or included in any other customer notice, that ,-.:-, . '''' clearly and conspicuously describes the subscriber's ability to prohibit the 4i - - "..-:disclosure. Video providers shall provide an address and telephone number for - .,;.li• , , ..... . . , . • •r•,-.:.:,....--, .. ..-...1= - • ,!.. .i - -' •-4A:t•a local subscriber to use without toll charge to prevent disclosure of the • .:!..,*: :- .='•.._.-•,--i.-.7.14S.subscriber's name and address -..... A-•.•': .- (o) Disputes concerning the provisions of this article sliall be resolved by the - -,:--x.':.:..- • :. 7-'7 city,-county, or city and 'county in which the customer resides. For video -:.• 41, =:.. providers under Section 53066, the franchising authority shall resolve disputes. : •• All other video providers shall register with the city in which they provide i .- :• : r..Z. _ _ .2 service or where the customers.reside in an unincorporated area, in the county i i '. . , I. in which they provide service. The registration shall include the name of the ' *1 company, its address, its officers, telephone numbers, and customer service and ..! .1 il 1 : .1 complaint procedures. Counties and cities may charge these other video -F1 .i -• , • .‘ providers operating in the state a fee to cover the reasonable cost of administer- 1 iii ,..) ing this division. . t.,..• .;, . _4 . . :, -1 (p) Nothing in this division limits any power of a city, county, or city and .1.'4 :‘ -‘, . .--1 county or video provider to adopt and enforce service standards and consumer . lilt ..: protection standards which exceed those established in this division. .-.. .., - ..- •,. :• , . _ . ' ' .: •. ••.(q) The legislative body of the city, county,. 07 city and county: may, by .i51:•.1.;.„,..,•;...„ .-_,,,.-___..,..- -.-...ordinance, provide a schedule of penalties for the material breach by a video . i...1 -,-:: ,:...:.• provider of subdivisions (a) to (n),1 inclusive. No rrionetary penalties shall be ,..f i; -. ,,, ,,.,* assessed for a material breach where the breach is out of the reasonable control -.. , :••-,i1. •t ---1.?5*.'.:-: iy.of the video provider. Further, no monetary penalties may be imposed prior to : ;,[;•,'I :- • .',, :, the effective date of this section. Any schedule of monetary penalties adopted :4.-..sc . : ,, ....:.: ,..:40,:pursuant to this section shall in no event exceed two hundred dollars ($200) for ! _1 ....:', :',-4R,--it•each day of each material breach, not to exceed six hundred dollars ($600) for .. ,.,,• 1 I•i ,. ....4, ,-;16,t-:: • each occurrence of material breach. However, where a material breach of any • •11 il . . ! I •'." -Ix -:, of subdivisions (a) to (n),,' inclusive, has occurred and the city, county, or city i •; ; -.ft= .4, i , 'rl 0 • 1 1, ,., ana county has provided notice and a fine or penalty has been assessed, in a •:-: ....,-. %; IlLii .: 1:k•fOsequent material breach of the same nature occurring within 12 months, the , -. ., . • ". , • . f■Fiaities may be increased by the city, county, or city and county to a ......, Ii maximum of four hundred dollars ($400) for each day of each material breach, . 1 L -.':•-_-:i.i ;;?,- .1,2,cA to exceed twelve hundred dollars ($1,200) for each occurrence of the ,_,., ,. ....;'::;-: -.-•=iThaiirial breach. Where a third or further material breach of the same nature ri •-!-- .-- ---;- , •- .:. ..-----. ,:c;,!,--,:, ...,.., :.. -;,...:-..k-4;f::f,:,octurs within those same 12 months, and the city, cotinty„ or city and county .-: ?..,,--.-•.-.-••:;,..,-. '.- •:..,.;.44as,provided notice and a.fine or penalty has been assessed, the penalties may ::. .,-.-3-.=.!•:f..it'f,...::,A-iincreased to a maximum of one thousand dollars ($1,000) for each day of it •i I • ol,ii: '. 0-,7--- t.eLch material'breach, not to exceed three thousand dollars ($3,000) for each , ‘...,',•.,,Currence of the material breach. With respect to video providers subject to a 11,,';!1. 4-. .'• ..4-richise or license, any monetary penalties assessed under this section shall be .:.,,..,, ... .--,w••• ....: 1;...duced dollar for dollar to the extent any liquidated damage• or penalty . .,...•4• 9 0 .... .,';'•:. F.pyision of a current cable television ordinance, franchise contract, or license fln'ipil 1L...-.- ..•:•Papement imposes a monetary obligation upon a video provider for the same (11! 1,' ::-:,•-• ‘;-'-•••• •• %. -..-:',Y.....,..prner service failures, and no other. monetary damages may be assessed. ,ii, -. 7'--- it%*ver, this section shall in no way affect the right of franchising authorities . -..,- . -•,..5.-. •...-v.,,,,..,:::.. ,;!,;:, --... :.•- :.:,4,..-..,. • i;' .Iii -,:.-.. ;.. - ---!,..5..,•;;:.:: 71 • - . :,.,_-' :. • .:4 ..:..k-i., : - . •14:i....____ _.--_. ... -.:- , - • , _ . -,-.:-. . , -,i - - • __ • - - ,_ _ .. -...-:. ,4.4: .'-_.",,.a III'I i i —,4. , !.. • 14...:i. • :,.. • '::‘:N;;°■ ° ■1.'1 --::.: ..;,..,:f.,..T.:. . - . • !,'i ;1 • I• • • �.�♦a i� k . i . - 011 _ § 53088.2 CITIES, COUNTIES, 0 ER AGENCY S). €..�'%. Title 51' �- .• concerning assessment or renewal of a cable television franchise under thef \% i; provisions of the Cable Communications Policy Act of 1984.2 '=j •i eve (r) If the -legislative bod of a ci county,- • body city, ty,� or city and county adopts a-ii: � � •).,-C of monetary penalties runt to 'subdivision o ,) _ •;z-+.(c -• . : � schedule o ry pe aloes pu s a _ .( ), the following.• procedures shall be followed: . • - • , • T• • brlde s (1) The city,•county, or city and county shall give the video provider written"` -.',„1.(d). ;: notice of any alleged•material breaches of the consumer service standards . . y g tandards of .; m • - this division and allow the video provider at least 30 days from rece' tmof they;: �f�- r L e I I _ notice to remedy the specified breach. . - i ::: C•, . �.�,�� the I (2) A material breach for the purposes of assessing penalties shall"be-deemed=•: _._:�,r.. g- -- 1 - 9tXency . to have occurred for each day, following the expiration of the period specified:., ==. t-•-•:• in paragraph (1), that any material breach has not been remedied by the video : (Ai dded provider-, irrespective of the number of customers affected. • - • : , .•:;§•530 (s) Notwithstanding subdivision (m),4 or any other provision of law, this•-; s::: _ section shall not preclude a party affected by this section from•utilizing any Y4 = ' -:- t:Motu judicial remedy available to that party without regard to this section. Actions "; :':,'F...,:-.. for any taken by a local legislative body, including a franchising authority, pursuant to r ',..Pc-**_-4.:- followi) 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. • • . time th: (t) If any provision of this act or the application thereof to any person or is rov circumstances is Held invalid that invalidity shall not affect other provisions or iP.21:. p •. y p :, � � - on deli: applications of the act which can be given effect without the invalid provision = ', ~E or application, and to this end the provisions of this act are severable. -,..r _,•,,`:t_ -• - - warnec (u) This section shall become operative on September 1, 1993. :.r ' - `•, ;� • . , if a cor. (Added by Stats.1992, c. 1198 (A.B°2388), § 1, operative Sept. 1, 1993° Amended by .4`-.4 :�'z,: ft-- Stats.1 994, c. 384(S.B.1941),§ 1.) .i s. . . ti:: (c) 1 So in enrolled bill. See subdivisions(a)to(p). •1 . . 10th d • 2,47 U.S.C.A.§ 521 et seq. `- ••3 So in enrolled bill. See subdivision(q). r: r:.. 4 So in enrolled bill. See subdivision(o). • a the iriv • "= (e) T Article 4.6 • , 1 -• (Added 4 C I - UMER CONTRACTS: CABLE TELEVISION - '_ Section . § 530 53088.5. Legislative findin: d declaration. :{ �_..� _: Notv 53088.6. Fee for delinquent pay :It of cable TV services; conditions. telev° 53088.7. Maximum amount of fees; requirements. . , • isi • 53088.8. Application of article. f..>, :,k;;.- cents ( • Article 4.6 was added by Stats°1996, c. •6 (S.B 610), § 1° L r •. ° ~v y ifr'_,_:; dollars • ' � Comm. § 5 3 0 8 8.5. Legislative findings and declaration `_ : benchr The Legislature hereby finds and declares as follows: . Y=`_ Is irn(a) It is a common practice in.the sale or lease of cable television servic or q a fee to be imposed upon make full and timely paymen - � d p pon a consumer's failure to y p yme �, �r of periodic charges for those services. '_ _are 72 ' i ,. // i- S• • SCHEDULE 7 CALIFORNIA CIVIL CODE SECTION 172200) (1) - (6) SERVICE OR REPAIR TRANSACTIONS BETWEEN CABLE TELEVISION COMPANIES AND THEIR SUBSCRIBERS t f Cal. 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 thefour-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 is 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 (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 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 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_^ 10/17/00 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