HomeMy WebLinkAboutOrdinances_2299_CCv0001.pdf ORDINANCE NO. 2299
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER
5.76 OF THE REDLANDS MUNICIPAL CODE RELATING TO THE
GRANTING AND REGULATION OF FRANCHISES FOR CABLE
COMMUNICATIONS SYSTEMS
THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN' AS
FOLLOWS:
Sogtion 1. The teat of Chapter 5.76 of the Redlands Municipal Cade is hereby deleted
in its entirety and rewritten to read as follows:
"Chapter 5.76
Regulation of Cable Television Systems
5.76. 10 Title
5.76. 20 Definitions
5.76.030Grant of Franchise
5.76.040 Rights Reserved to Grantor
5,76-050 Rights of Subscribers
5.76.016 ' Finance and Insurance
5.76.01701 Services
5.76.0801 Design n and Construction
5.76.090 Operations ns d Maintenance
5.76.10 0 Violations
5.76.110 Termination and Receivership
5.76.170 Franchise Applications
5.76.130 Records
5.76.1 0l Enforcement Mechanism
5.76.150 Interconnection
5.76.1601 Miscellaneous Provisions
5.76:0?10 'title. This Chapter shall be known and may be cited as the "Cable
Television Regulations Chapter." This Chapter establishes enabling and anther regulations for
granting or renewing a Cable System Franchise,, and operating and Subscriber service
requirements for all Cable Operators.;
-7-6_Q2 Definitions.
For the purpose of this Chapter, the following words, terms, phrases and their
derivations shall have the meanings given herein, When not inconsistent with the context,
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June 26.199 1
words used in the present `tense> include the future tense, and words in singular number
include the plural number. The word "shall" is always mandatory and not merely directory,
"Affiliated Person" or "Affiliates" means each Person who falls into one or more of
the following categories: (i)each Person having, directly or indirectly, a Controlling Interest
in Grantee; (ii) each Person in which Grantee has, directly or indirectly, a Controlling
Interest; (iii) each officer, director, general partner and limited partner holding an 'interest of
five percent (5%) or more, joint venturer orjoint venture partner, of Grantee, and (iv) each
Person, directly or indirectly, controlling, controlled by, or under common Control with
Grantee, provided that "Affiliated Person" shall in no event mean Grantor, any limited partner
holding an interest of less than five percent (5%) of Grantee, or any creditor of Grantee
solely by virtue of its status as a creditor and which is not otherwise an Affiliated Person
by reason of owning a Controlling Interest in, being owned by,
, or being under common
ownership, common managementor common Control with, Grantee.
"Attachment Point" means the point at which Grantee's drop attaches to Subscriber-owned
equipment.
"Basic Service" means any Service Tier which includes the retransmission of local
television broadcast signals.
"Broadcast Signal" means a signal transmitted over the air to a wide public
geographic audience and received by a Cable System.
"Cable Act" collectively means the Cable Communications Policy Act of 1984 and the Cable
Television Consumer Protection and Competition Act of 1992 and the Telecommunications Act of
1996, as amended,
"Cable Channel"means a portion of the electromagnetic frequency spectrum which is used
in a Cable System and which is capable of delivering a television channel (as television channel is
defined by the Federal Communications Commission).
"Cable Operator" means any Person or group of Persons (i) '.N,'ho provides Cable
Service over a Cable System and directly or through one or more Affiliates owns a
significant interest in such, Cable System, or (ii) who otherwise controls or is responsible for,
through any arrangement, the management and operation of a Cable System.
"Cable Service" means (i) the, one-way transmission to Subscribers of Video
prograinining, or Other Programming Services, and/or (ii) Subscriber interaction which is
required for the selection or use of such Video Programming or Other Programming Services.
"Cable System"or"System" means, a facility, consisting of a set of closed transmission
paths and associated signal generation, reception, and control equipment that is designed to
DJM624LF 2
junt 2&1996
provide Cable Service which includes Video Programming and which is provided to multiple,
Subscribers within a community, but such term 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 server, only Subscribers in one or more multiple unit dwellings under common
ownership, control or management, unless such facility uses any Streets or Public Ways; (iii)
a facility of a common carrier which is subject, in whole or in part, to the provisions of
Title 11 of the Cable Act, except that such facility shall be considered a Cable System (other
than for purposes of section 62 1(c)) to the extent such facility is used in the transmission
of Video Programming directly to Subscribers; or (iv) any facilities of any electric utility
used solely for operating its electric utility systems. I
"Channel" means a frequency band capable of carrying a standard video signal or
some combination of video signals, or a frequency band assigned to carry a non-standard
video signal or some combination of such video signals.
"Commercial Subscriber" means a Subscriber who receives Cable Service in a place
of business.
"Complaint" means a billing dispute or service call in which a Subscriber is notifying
Grantee of an outage and/or degradation in picture quality.
"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, the Franchise or Grantee. A
rebuttable presumption of the existence of Control or a Controlling Interest shall arise from
the beneficial, ownership, directly;or indirectly, by any Person or group of Persons acting in
concert (other than underwriters during the period in which they are offering securities to
the public) of five percent( % or more, of any Person (which Person or group of Persons
is hereinafter referred to as "Controlling Person") or being party to a management contract.
"Control" or "Controlling Interest" as used herein may be held simultaneously by more thy;
one Person or group of Persons.
"Converter" or "Te nal" means a device which converts signals from one frequency
to another or otherwise processes signals for use by, Subscribers,
"Drop" means the cable and related equipment connecting the, system's plant to the,
Attachment Point at the Subscriber's premises.
"Education Channel" means any channel where non-profit educational institutions are
the primary designated programmers.
"FCC" means the Federal Communications Co fission or its designated representativcls),
DJM, 624LE
June 26,1996 —1
"Franchise" is the initial authorization, or renewal thereof, (including a renewal of an
authorization which has been granted subject to Section 626 of the Cable Act), issued by Grantor,
whether such authorization is designated as a franchise, permit, license, resolution, contract,
certificate. agreement or otherwise, which authorizes the construction and operation of a Cable
System within the, City.
"Government Channel" means any channel where local governmental agencies are the
primary designated programmers and programming is regarding government activities and
programs.
"Grantee" means the Personto which a Franchise is granted for the construction,
operation, maintenance and reconstruction, if applicable, of a Cable System and its lawful
successors,transferees or assignees.
"Grantor" means the City of Redlands, a municipal corporation, including the territory
within its present and future jurisdiction, its elected governing body, and/or such
representative persons or entities as it may designate to act on Cable System matters in its
behalf.
"Gross Annual Revenue" means all revenue,as determined in accordance with generally
accepted accounting principles, which is received, directly or indirectly, by Grantee or any other
Person or Affiliate of Grantee that would constitute a Cable Operator of the Cable System under the
Cable Act,derived from the operation of the Cable System insofar as such operation in any manner
requires use of the Streets and Public Ways of Grantor. Gross Revenues shall include,but not be
limited to,Basic Service,and Pay Service revenues,revenues from installation and equipment rental
and sale,the applicable percentage of local and regional advertising revenues and any leased access
revenues.
Gross Revenues shall not include any taxes on services famished by Grantee, which.taxes are
imposed directly on a Subscriber or user by a city, county, state or other governmental it, and
collected by Grantee for such entity. Gross Revenues shall not include franchise fees or amounts
which cannot be collected by Grantee and are identified as bad debt; provided, however, that if
amounts previously representing bad debt are collected, then those amounts shall be included in
Gross Revenues for the period in which they are collected.
Amounts included in Gross Revenues shall not be counted more, than once; therefore, amounts
included once in Grantee's Gross Revenues shall not be added to Gross Revenues again if they are
received by an Affiliate,of Grantee in payment for programming or other goods or services supplied
to Grantee. Furthermore,Gross Revenues shall not include revenues received by Affiliated entities
of Grantee to the extent that such,revenues derive from activities beyond the power of Grantor to
license for revenue. Revenues of Affiliated Persons are included in this definition in order that
Grantee shall not escape nor limit its obligation to pay franchise fees through the creation or use of
said revenue which is received directly or indirectly by Grantee, any Affiliated Person or any
DA1624LE
June,26,1996 4
other Person from or in connection with the distribution of any Service over the System or
the provision of any Service related activity in connection with the System, Gross Annual
Revenue shall not include: (i) the revenue of any Person, including,, without limitation, a
supplier of programming to Grantee to the extent that said revenue is also included in Gross
Annual Revenue of Grantee, and (ii) taxes imposed by law on Subscribers which Grantee
is obligated to collect,
"Headend" means that central portion(s) of the System where television, and FMradio
signals are introduced into and received from the balance of the Cable System.
I
"Institutional Network" or "Institutional System" means a System, or portion of a
System, intended primarily to service non-residential Subscribers.
"Local Origination Channel" means any channel which is utilized for local programming
and for which advertising fees may be charged by the Cable Operator.
"Monitoring" or "Tapping" means observing or receiving a signal, or the absence of
a signal, where the observer is neither the sending nor receiving part), and is not authorized
by the, sending and/or receiving party to observe the signal, whether the signal is observed
or received by visual, electronic or any other means whatsoever.
"Other Programming Service" means information that a Cable Operator makes available to
all Subscribers generally.
"Pay Service," means signals for which there is a fee or charge to Subscribers over
and above the charge for Basic Service including any Tiers of Cable Service; provided,
however, the sale or lease, of studio facilities, equipment and/or tapes shall not be deemed
Pay Services.
"PEG Channel" means a Public, Education or Government channel.
"Person" means any corporation, partnership, proprietorship, individual or organization
authorized to do business in the State of California or any natural Person.
"Plant" means the transmitting medium and, related equipment which t,=, , smits signals
between the Headend and Subscribers, including Drops.
"Programmer" means any Person who provides Video Programming or Other
Programming Services for transmission by means of a Cable System,
"Property of Grantee" means all property owned or leased within the Franchise area
by Grantee in the conduct of Grantee's business under a Franchise granted pursuant to this
Chapter.
DJM624Lr
It=26,1996 -5
"Public Access Channel" means any channel for which members of the public or any
community organi zation may provide non-advertiser supported programming-, provided,
however, sponsorship identification fees may be paid and accepted to further community
programming.
"Resident" means any Person residing in the franchised area or as otherwise defined
by applicable law.
"Residential Dwelling Unit" means a home, duplex, triplex, mobile home, condominium,
apartment, co-operative unit or any other individual dwelling unit.
"Service Area" means the City of Redlands,or a designated portion thereof as described with
a franchise granted pursuant to this Chapter.
"Service Interruption" means the loss> of picture or sound on one or more, cable
channels.
"Service Tier" or "Tier" means a category or level of Cable Service or Other
Programming Service 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 legitimate
packages of per channel or per event programming.
"Streets and/or Public Ways" means the surface and the space above and below any
public street, sidewalk, alley or other public way or right of way of any type whatsoever
within the Service Area.
"Subscriber" means any Person electing to subscribe to, for any purpose, a Cable
Service provided by Grantee by means of or in connection with Grantee's Cable System.
"User(s)" means any Person who either receives Services from a Cable System or
who accomplishes any purpose by, in part or in whole, transmitting or receiving information
via a Cable System, or who creates programming for that purpose, or who receives and uses
programming.
"Video Programming"means prograituning provided by,or generally considered comparable
to programming provided by, a television broadcast station.
Words, terms, or phrases not defined herein shall first mean their definition in the Cable Act,
as amended, then their special meanings or connotations in any industry. business, trade or
profession where they commonly carry such special meanings. In the event such special
meanings are not common, they shall mean their standard definitions as set forth in
commonly used and accepted dictionaries of the English language.
DJM624LE
Junp 26,191>6 6
.733 Currant of Franchise
A. Authority to Grant Franchises. Grantor may grant a Franchise to provide Cable
Service, or any Other Programming Service specifically authorized in any Franchise, to any
Person who offers to provide a Cable System under and pursuant to this Chapter;
B. Form. A Franchise may, atGrantor's scab option, take the form of an ordinance,
license, permit, contract, agreement, resolution or any other form elected by Grantor.
C. Grant Not Required Consistent with applicable state and federal, law, no
provision of this Chapter shall require the granting of a Franchise when, in the sole
discretion of Grantor, it is not in the public interest to do so.
D. Purpose. The purpose of a. Franchise shall be to identify and authorize its
specific Grantee and to identify and specify those terms, conditions, definitions, specifications
and other particulars of the agreement between Grantor and Grantee which it represents. In
so doing, a Franchise may clarify', extend and interpret- the provisions of this 'Chapter.
Where a Franchise and this Chapter conflict, both shall be liberally interpreted to achieve
a common meaning or requirement. In the event such an interpretation is not possible within
reasonable limits, the Franchise shall prevail.
E. Mutual Consideration. The award of a Franchise authorizing the use of public
property or public rights of way for private purpose shall be deemed consideration by, Grantee
in the farm of agreement to provide the System and services offered in accordance with the
provisions 'hereof and of the Franchise,
F. Compliance with. Law. ]Neither this Chapter nor a'Franchise granted under it
relieves Grantee of any requirement of Grantor or of any ordinance, rule, regulation, or
specification of Grantor of general applicability to the public or to Cable Operators, generally,now
or hereafter in effect, including, but not limited to, the payment of all normal permit and
inspection fees.
G. franchise Non-Exclusive. Grantor may, at its option, grant one or more
Franchiser to construct, operate, maintain andreconstruct a Cable System. Such Franchises
shall constitute both a privilegeand an obligation to provide the Cable System and services
required by this Chapter and the Franchise.
H. Limitation. No privilege shall be granted or conferred by a Franchise except
those specifically= prescribed herein or in the Franchise.
1. Duration. The term of any Franchise, and all rights, privileges, obligations and
restrictions pertaining thereto shall be specified in the Franchise. The effective date of any
Franchise shall be as specified in the Franchise.
Junsc 26,1996 7
J. Use of Streets and Public Ways, For the purposes of operating and maintaining
a System in the franchised area, a Grantee may place and maintain within the Streets and
Public Ways such property and equipment as are necessary and appurtenant to the operation
of the Cable System. Prior to construction or alteration of the Plant in Streets and Public
Ways, Grantee shall apply for. pay all applicable fees and receive all necessar-
y permits.
K. Use of Other Utilities. Any Person who provides a Cable System or Cable
Services as defined herein shall be deemed a Grantee and shall not o so except in
accordance with a Franchise granted hereunder. If such Grantee uses distribution channels
finished by a telephone company or other public utility, said Grantee shall be required to
comply with all of the provisions hereof as a "Licensee," and the term "Grantee" herein shall
include "Licensee" in its meaning.
L. Non-transferable. Except for transfers between and on wholly-owned
subsidiaries of Grantee, or Affiliates of Grantee which are wholly-owned by the same parent,
the Franchise shall not be sublet or assigned, nor shall any of the rights or privileges therein
granted or authorized beleased, assigned, sold or transferred, either in whole or inpart, nor
shall title thereto, either legal or equitable, or any right, interest or property therein, pass to
or vest in any Person, except Grantee, either by act of Grantee or by operation of law,
without the prior written consent of Grantor, which consent shall not be unreasonably
withheld. Notwithstanding the foregoing, no consent shall be required for a transfer in trust, by
mortgage, by other hypothecation or by assignment of any rights, title or interest of the Grantee in
the Franchise or System in order to secure indebtedness. The, granting of such consent shall not
render unnecessany any subsequent consent. Grantor shall approve, disapprove, or conditionally
approve said request within a reasonable period of time upon the receipt of all.reasonably
necessary requested information.
M. Change in Control. Any change in Control of Grantee shall be approved in advance
by Grantor. which consent shall not be unreasonably withheld. Grantor may condition said
transfer upon reasonable terms and conditions subject to applicable federal law,
N. Reimbursement of Transfer Costs. If Grantor approves a transfer pursuant to
Subsections "L" and/or "M" above, Grantee shall reimburse Grantor for Grantor's reasonable
processing and review expenses in connection with a, transfer of the Franchise or of Control
of the Franchise,including without limitation,the cost of administrative review, financial, legal
and technical evaluation of the proposed.transferee, consultants (including technical and legal
experts and all costs incurred by such experts), notice and publication costs and document
preparation expenses, Grantor shall send Grantee an itemized description of such charges and
Grantee shall pay such amount within twenty (20) days of the receipt of such description.
G. Sales Notice. Grantee shall provide,Grantor with notice of any Franchise transfer or
change in Control as heretofore described as required by federal law.
DPM6241-F,
June 26,1996 8
P. Violation. If Grantee violates any or all of Subsections "L," "M," or "0," of this
Section, Grantor may pursue any and all penalties for violation of the Franchise, including
revocation of the Franchise, subject to all applicable due process safeguards,
�5�.76Rig_htsa,Fesgrved to Grgo—togr,
A. Reservation. There is hereby reserved to Grantor every right it may have in
relation to its power of eminent domain over Grantee's Franchise and property.
B, Non-waiver or Bar. Neither the granting of any Franchise, nor any provisions
of this Chapter, shall constitute a,waiver or bar to the exercise of any governmental right or
power by Grantor.
C. Delegation of Administration. Any administrative duty retained by or imposed
upon, Grantor, or any commission, officer, employee. department, or board of Grantor, may
be assigned or transferred by Grantor to any officer, employee, department or board of
Grantor.
D, Right of Inspection of Construction. Grantor shall have the night to inspect all
construction, installation or other physical work performed by Grantee in connection with
the Franchise, and to make such tests as it may find reasonable or necessary to ensure
compliance with the terms of the Franchise and other pertinent provisions of law, so long
as said inspection and testing does not unreasonably interfere with Grantee's operations.
E. Right to Require. Removal of Property, Consistent with applicable law, at the
expiration of the, term or any renewal term or extension for which the Franchise is granted,
or upon its lawful revocation, expiration, or termination, Grantor shall have the right to
require Grantee to remove, at Grantee's expense, all portions of its System and any other
property from all streets and public ways within the Franchise area within a reasonable
period of time.
F. Right of Intervention. Subject to applicable law, Grantor shall have the right of
intervention in any suit, proceeding or other judicial or administrative proceeding in which
Grantor has any material interest, to which Grantee is party.
G, Place of Inspection. Grantor shall have the right to inspect and request copies
of all relevant information that is reasonably necessary for the exercise of Grantor's, regulatory
authority -upon reasonable notice on Grantee's local premises at any time during normal
business hours, and any Grantee records kept at another place shall, within ten (10) days of
Grantofs request, be, made available at Grantee's premises within the City of Redlands for
Grantor's inspection and or copying, so long as said inspection does not unreasonably
interfere with Grantee's operations. Grantor shall pay all reasonable costs for copying any
relevant information needed, unless otherwise provided for in this Chapter or the Franchise.
D,�N%24LE
hint 26.1996 9
Grantor agrees to treat any information disclosed by Grantee as confidential and only to disclose
such infortnation to employees,elected,officials,officers,representatives and agents of Grantor that
Grantor believes have a reason to know, or in order to enforce the provisions hereof, or of any
Franchise. Grantee shall not be, required to provide Grantor with any Subscriber information in
violation of Section 631 of the Cable Act
5—M-,Q-50 Right-5 of Subacribers.
A. Discriminatory Practices Prohibited. Grantee shall not deny Cable Service or
otherwise discriminate against Subscribers or others oh the basis of race, color, religion,
national origin, sex, age, handicap or other protected class(es). Grantee shall strictly adhere
to the equal employment oppornmity requirements of federal, state or local governments and
shall comply with all applicable laws and executive and administrative orders relating to
nondiscrimination.
B. Tapping and Monitoring. Grantee shall, not tap or monitor or permit any other
Person controlled by Grantee to tap or monitor any cable, line, signal input device or
Subscriber outlet or receiver for any purpose whatsoever without the express written consent
of the, Subscriber or a court order therefor provided; however, that Grantee shall be entitled
to monitor Subscriber service calls for quality control purposes and to conduct system--wide
or individually addressed "sweeps" for the purpose of verifying system integrity, controlling
return path transmission or checking for unauthorized connections to the Cable System or
Service levels or billing for Pay Services.
C. Data Collection.
1. Except for its own use or in connection,with the provision of Cable Services or
for release to Grantor, Grantee shall not permit its System to be used for data collection
purposes, nor shall it otherwise collect data which would reveal the commercial product or
other preferences or opinions of individual Subscribers, members of their families, or their
guests, licensees or employees unless Grantee shall have received the prior written consent
of such Subscriber.
2. Grantee shall not reveal or permit the release or sale of data on individual
Subscribers, orgroups thereof., but may reveal or permit the release or sale of aggregate data
only,
D. Revealing Subscriber Preference.
1. Grantee shall not reveal individual Subscriber preferences, viewing habits,
beliefs, philosophy,creeds or religious beliefs to any Person., firm, agency, governmental unit
or investigating agency without co authority, or prior written consent of the Subscriber.
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Juu 26,1996 10
2. Such written consent, if given, shall be for a period of time not to exceed
one (1) year or a lesser term agreed upon by Grantee and Subscriber.
3, Grantee shall not condition the delivery or receipt of Cable Services to any
Subscriber on any such consent.
4. A Subscriber may revoke without penalty or cost any consent previously
made by delivering Grantee in writing a substantial indication of the Subscriber's intent to so
revoke,
E. Revealing Subscriber Lists. Grantee shall not reveal, sell, or permit the release or sale
of its Subscriber list without prior written consent of each Subscriber, provided that Grantee may
use its Subscriber list as necessary for the construction, marketing, and maintenance of Grantee's
services and facilities authorized by a Franchise, and the billing of Subscribers for said Cable
Services; and further, provided that consistent with applicable law, Grantor may use Grantee's
Subscriber list for the purpose of communication with Subscribers in connection with matters
relating to operation,management and maintenance of the Cable System.
F. Other Persons Affected, The prohibitions contained in Subsections "A" to T"
inclusive of this Section shall extend and apply to all of the foregoing as well as to
Grantee-
I. Officers, directors. employees and agents of Grantee;
2. General and Limited Partners of Grantee;
3. Any Person or combination of Persons o"ming, holding or controlling five
percent (5%) or more of any corporate stock or other ownership interest of Grantee,
4. Any affiliated or subsidiary entity ov�,med or controlled by Grantee, or in
which any officer, director, stockholder, general or limited partner or Person or9 roup of
Persons owning, holding or controlling any ownership interest in Grantee, shall own, hold
or control five percent (5%) or more of any corporate stock or other ownership interest; and
5 Any Person, firm or corporation acting or serving in the capacity of holding
or controlling company of Grantee.
G. Subscriber Bill of Rights. Grantee shall provide, at the time of initial connection
andannualiv thereafter to all Subscribers, a publication, in a form prior approved by Grantor,
W
delineating and describing,, in clear and understandable language, the consumer rights granted
herein.
H. Complaint Advice. Grantee shall advise each Subscriber as may he set forth in
DJM624LI-',
June 26,1996
the Franchise that Grantor's representative is the official to whom complaints of poor service
should be made if such complaints of poor service are not resolved by Grantee to the,
satisfaction of each Subscriber.
5_7_6_0__6 Q_ finance and Insuran!;Le—.
A. Payments to Grantor.
1. As compensation for any Franchise to be granted, and in consideration of
permission to use the Streets and Public Ways of Grantor for the construction, operation,
maintenance, and reconstruction of a System, Grantee shall pay to Grantor such amounts as
specified in the Franchise.
2. Payments due Grantor under this Section shall be computed quarterly for the
preceding quarter, and shall be paid within forty-five (45) days of the close of each calendar
quarter. The payment shall be accompanied by a report showing the basis for the
computation and such other relevant facts as may be required by Grantor to determine the
accuracy of said payment.
3. Failure to Make Required Payment. In the event that any Franchise payment
or recomputed amount is not made on or before the dates specified herein, Grantee shall pay
as additional compensation the greater of the following:
i, An interest charge, computed from such due date, at the annual rate equal
to the prevailing commercial prime interest rate in effect upon the due date plus,one percent
ii. A sum of money equal to $4,000 for each month or part thereof of
delay which sum shall also bear interest from the due date at an annual rate equal to the
prevailing commercial prime interest rate in effect at the time of the due date plus, one percent
(I%
4. In addition to any late payment made pursuant to Subsection 3(i) above, if
a payment is late by sixty days or more, Grantee shall pay a sum of money equal to five
percent (5%) of the amount due in order to defray additional expenses, such as legal or
collection costs, incurred by Grantor by such delinquent payment.
5. Grantee shall pass through to the Subscribers the amount of any decrease in a
Franchise fee.
6No acceptance of any payment shall be construed as a release of, or an accord, or
satisfaction of, any claim that Grantor might have for further or additional sums payable under the,
terms of this Chapter, or for any other performance or obligation of a Grantee hereunder,
DJM624Lr
June 26,1996 12
B. Security Fund,
1, Within thirty (30) days after the effective date of the Franchise, Grantee shall
deposit into a bank account established by Grantor, and maintain on depositthrougb the, term
of the Franchise, a sum specified in the Franchise as security for the faithful performance
by it of all of the provisions of the Franchise, compliance with this Chapter, and compliance
with all orders, permits and directions of any agency of Grantor having jurisdiction over its
acts or defaults, and the payment by Grantee of any claims, fees, liens, taxes due Grantor
-which arise by reason of the construction, operation of maintenance of the System and to
satisfy any actual or liquidated damages arising out of a Franchise breach.
2. Except as, provided in the Franchise, ifGrantee fails, after twenty (20) days
written notice, to pay to Grantor any fees due and unpaid, or fails to repay within such
twenty (20) days, any damages, costs or expenses which Grantor shall be compelled to pay
by reason of any act car default of Grantee in connection with its Franchise; car fails, without
Just cause, after thirty (30) days notice cif such failure, to comply with any provision of the
Franchise and after full hearing and a determination by cantor that such failure was without
just cause which Grantor reasonably determines can be remedied by an expenditure of the
security, or is nevertheless subject to liquidated damages, Grantor may immediately withdraw
the amount thereof`, with interest and/or any liquidated damages, from the security fund.
Upon such withdrawal;.. Grantor shall notify Grantee of the amount and the date thereof.
3. Within thirty. (30) days after notice to it that any amount has been withdrawn
by Grantor from, the security fund, Grantee shall deposit a sum of money sufficient to
restore such security fund to the original amount.
4. Grantee shall be entitled to the return of such security fand, or portion
thereof with interest, if any, as remains on deposit at the expiration of the Franchise, or its
termination, once all amounts due to Grantor have been paid.
5. The rights reserved to Grantor with respect to the security fund arein
addition to all other rights of Grantor and no action, proceeding or exercise of a right with
respect to such security fund shall affect any other right Grantor may have.
C. Faithful Performance Bond. Within thiroy (30) days after the effective date of the
Franchise, Grantee shall furnish proof of the posting of a faithful Performance bond in favor
of Grantor, with surety approved by Grantor, which approval shall not be unreasonably
withheld, in the surn specified in the Franchise, conditioned that Grantee shall well and truly
observe, fulfill, and perform each term and condition of the Franchise; provided, however,
that such bond shall not be required upon certification by Grantor of completion of
construction of Grantee's Cable System. As defined in the Franchise, during the course of
construction, the amount of the bond may from time, to time be, reduced as provided in the
DA 1624U,
hate 2Vis.1996 13
Franchise. Written evidence of payment of premiums shall be filed and maintained with
Grantor.
D. Letter of Credit. At the option of Grantor, Grantee may provide Grantor in lieu
of a Security Fund and/or Faithful Performance Bond, an irrevocable letter of credit, issued
by a bank approved by Grantor, in the amount specified in the Franchise. Said letter of
credit shall incorporate wording approved by the Grantor enabling it to draw such sums from
time to time as Grantor may find necessary to satisf�, any defaults of Grantee or to meet any
payments due,Grantor under or in connection with this Chapter or Grantee's Franchise upon
ten (10) days prior written notice. If Grantor shall require such a letter of credit, Grantee
shall pay all fees or other charges required to keep it in force and shall, within thirty (30)
days of any draw by Grantor, restore its face value. All provisions herein applying to bonds
or security funds shall also apply to letters of credit,
5.76,070 SenLic . A Cable System shall provide, as a minimum, the broad
S,5_
programming categories listed in the Franchise.
A, Changes in services. Grantee shall inform Grantor in writing at least ninety (9 0)
days, and Subscribers at least forty-five(45) days, in advance of making any change in the
Cable Service or in the rates charged therefor, unless Grantor agrees to waive this
requirement in writing.
B. Non-discrimination, Grantee shall not discriminate between or among Subscribers
within one type or class in the availability of Cable Services at either standard or differential
rates according to published rate schedules. No charges may be made for Cable Services
except as listed in published schedules which are available for inspection by anyone at
Grantee's office, quoted by Grantee on the telephone, and displayed, or communicated to all
potential Subscribers.
C. Prepayment. Upon completion of System construction and/or System reconstruction,
Grantee may, at its option, charge Subscribers for Services no more than one (1) month in
advance unless an individual Subscriber requests a longer period. Prior to completion of
System reconstruction, Grantee may continue any existing advance billing practices which
provide for up to a maximum of two (2) months ofadvance billing. Bills may be due and
payable upon mailing but shall not be delinquent, and no late, charge penalties shall be
assessed, until the later of. (1 thirty (30) days from postmark, or (2) service has actually
been provided fear the billed period. All bills and billing statements shall ail early indicate the
billing period, the actual due date, and the delinquent or late, remedy or assessment.
D. Disconnect for Cause. Grantee may disconnect a Subscriber only for cause, which
shall include, without limitation, the following:
1. Payment delinquency in excess of forty-five (45) days.
DJM624Lr
lane ftp,1996 14
2. Willful or negligent damage to or misappropriation of Grantee property.
3. Monitoring, Tapping, or tampering 'with Grantee's system, sip
nals, or service.
4. Threats of violence to Grantee's employees orproperty.
E. Reconnection. Grantee shall, upon Subscriber's written request, reconnect service
which has been disconnected for payment delinquency when payment has removed the
delinquency. If authorized by applicable law, a published standard charge may be made for
reconnection. Grantee shall not be required to make more than three (3) reconnections for
the same Subscriber if the disconnections involved were caused by payment delinquency
within the past twenty-four(24) months. Reconnection for disconnects covered by Subsection
11132," "D3," or "D4" shall be at Grantee's sole discretion.
F. Installation.
1. Grantee shall promptly provide and maintain service to the residential,
commercial and industrial structures as provided in the Franchise, in the Service area as
defined in the Franchise, upon request of the lawful occupant or owner.
2. In the case of a new Drop, Grantee shall advise each Subscriber that the
Subscriber has the right to require that installation be done over any route on the Subscriber's
property, and in any manner the Subscriber may elect which is technically feasible and consistent
with proper construction and safety practices. Grantee may require that any such request be made
in Nwiting. If the Subscriber requests installation other than a standard installation, then the
Subscriber may be required to pay a reasonable fee for the time and materials occasioned by the
installation.
3. For purposes of this Sectiort, a standard installation shall include installation
of Drop cable with fittings up to one hundred and twenty-five (125) feet from the Cable
distribution system, measured along the cable from the center line of the street or utility
easement through the house wall or at the Subscriber's option through the floor from a house
vent or crawl space directly to the Subscriber's television set with five feet of cable from the wall
or floor entry to the television set. Also included as part of a standard installation is the grounding
cable, fine tuning of the television set and the provision of the appropriate literature.
4After service has been established by activating trunk and/or distribution
cables for any area, Grantee shall provide service to any Person requesting service in that
area, xvithin three (33)days from the date of request, provided that Grantee is able to secure
all rights-of-way necessary to extend service to such potential Subscriber within such three(3) day
period on reasonable terms and conditions.
G. Non-Standard Installations. For each non-standard Drop installed, Grantee may
WIN1624LE
June 26.1 IM 15
charge the Subscriber for the cost of material and labor in excess of that for a standard
Drop. Grantee shall provide each Subscriber a written estimate of all charges prior to
installation and obtain Subscriber's written authorization in advance for all non-standard Drop
charges.
H. Converters/Terminals. At such time as a converter or terminal becomes necessary
for Subscribers to have access to all Cable Services on its Cable System, Grantee shall make
them available to Subscribers. Grantee may require each Subscriber who elects to take a
Converter or Terminal to furnish a refundable security deposit therefor.
1. Each device shall be and remain the property of Grantee unless Grantor
approves or requires its sale to the Subscriber. Grantee shall be responsible for maintenance
and repair of all equipment owned by Grantee and may replace it as Grantee may from
time-to-time elect, except that the Subscriber shall be responsible for loss of or damage to
any such device while in the Subscriber's possession. Grantee shall make available to
Subscribers suitable insurance which the Subscribers may purchase to insure against any loss of or
damage to such devices while in the possession of the Subscribers.
2. Upon termination or cancellation of a Subscriber's service, the Subscriber
shall promptly return Grantee's property to Grantee in the same condition as received,
reasonable wear and tear excepted.
3. Grantee may apply the security deposit against any sum due fTorn the
Subscriber for loss of or damage to such Converter exceeding reasonable wear and tear. In
the event that no security deposit has been required, Grantee may charge the Subscriber for
any such damage exceeding reasonable wear and tear.
4. If Grantee has no claim against the deposit, Grantee shall return it, or the
balance, to the Subscriber within twenty (20)days of return of the Converter.
f,2_6.080. Desi an and!Lonscoon The System and all construction components and
techniques shall be constructed in accordance with the provisions of the Franchise and all
applicable laws.
A. Technical and Performance Standards. Grantee shall construct, install, operate and
maintain its System in a manner consistent with all applicable laws, ordinances, construction
standards, construction specifications,governmental requirements, FCC technical standards and
any standards set forth in the Franchise.
B. Construction Codes, Grantee shall strictly adhere to all building and zoning codes
currently or hereafter in force and obtain all necessary permits, Grantee shall arrange its
lilies, cables, and other appurtenances, on both public and private property, in such a manner
as to cause no unreasonable interference with the use of said property by any Person. In the
DIM6214LE
June 16.3996 16
event of such interference, Grantor may require, the removal of Grantee's cables, and
appurtenances from the property in question. Grantee shall give at least forty-eight (48) hours
advance written notice to all property owners and Grantor prior to installing any above-ground
and underground structures upon easements located on private property, however, such notice
requirement is waived for any Grantor acknowledged emergency repair to Grantee's facilities.
Grantee shall be a member of Underground Service Alert. Grantor shall 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.
C. System Construction Schedule. Grantee shall begin to offer Cable Service and
any service authorized by the Franchise no later than the schedule contained in the
Franchise. Grantee shall also provide a detailed construction plan indicating progress
schedule, area construction or reconstruction maps, test plan and projected dates for offering
service,
D. Geographical Coverage. Grantee shall constructthe Cable System to service even!
Residential Dwelling Unit and other structures specified in the Franchise within the Service
Area of the Franchise and any annexations thereto, as defined and provided by the Franchise.
Service shall be provided to Subscribers in accordance with the schedules specified in the
Franchise. The route of separate cables serving Institutional System Subscribers shall be as
approved by Grantor and specified in the Franchise or amendment thereto.
E. Construction Default. Upon the failure,refusal or neglect of Grantee to cause any
construction,repair or other necessary work to comply with the terms of the Franchise to be
properly completed in, on, over, or under any Streets and Public Ways within a time prescribed in
the FraLhise or the construction permit, Grantor may (but shall not be required to)cause such work
to be completed in whole or in part',and upon so doing shall submit to Grantee an itemized statement
of costs thereof. Grantee shall be given reasonable notice of Grantor's intent to exercise this power
and fifteen (15) days thereafter to cure. Grantee shall, within thirty (30) days of billing, pay to
Grantor the actual costs thereof
F. Vacation or Abandonment. In the event any Street or Public Way, or portion
thereof, used by Grantee shall be vacated by grantor, or the use thereof discontinued by
Grantee, upon reasonable notice, Grantee shall forthwith remove its facilities therefrom unless
specifically permitted to continue the same, and on the removal thereof restore., repair or
reconstruct the area where such removal has occurred to such condition as may be required
by Grantornot in excess of the original condition. In the event of failure. neglect or refusal
of Grantee after thirty (30) days' written notice by Grantor to do such work, Grantor may
cause the work to be done, and the cost thereof shall be paid by Grantee in thirty (30) days
and collection may be made by Grantor,
G, Abandonment in Place, Grantor may, upon written application by Grantee,
approve the abandonment of any property in place by Grantee, under such terms and
DJ,N16241_1_'-
June 26.1996 17
conditions as Grantor may approve. Upon Grantor-approved abandonment of any property in
place, Grantee shall cause to be executed, acknowledged, and delivered to Grantor such
instruments as Grantor shall prescribe and approve, transferring and conveying the ownership
of such property to Grantor or such other person or entity, designated by, Grantor.
H. Removal of System Facilities. In the event that Grantee's Plant is deactivated for
a continuous period of thirty (30) days, except for reasons outside Grantee's control, without
prior written notice to and approval by Grantor, then Grantee shall, at Grantor's option and
at the expense of Grantee and at no expense to Grantor, and upon demand of Grantor,
promptly remove from any Street or Public Way or other area all property of Grantee, and
Grantee shall promptly restore the street or other area from which such property has been
removed to its condition prior to Grantee's use thereof, provided that Grantee shall not be
required to remove conduit from underground where Grantor may determine no damage to
the surface of any structures may result from such nonremoval.
L Movement of Facilities, In the event it is necessary to temporarily move or
remove an), of Grantee's property at Grantor's direction for a public purpose, Grantee-, upon
reasonable notice, shall move, at the expense of Grantee, its property as may be required
to facilitate such public purpose. No such movement shall be deemed a taking of Grantee's
property. Nothing herein shall limit the right of Grantee to seek reimbursement from any
party other than Grantor.
J. - Undergrounding of Cable. Cables shall be installed underground at Grantee's cost
where all existing utilities are already underground. Previously installed aerial cable shall be
installed underground at Grantee's pro-rata cost in concert with other utilities when all such
other utilities may convert from aerial to underground construction.
K. Facility Agreements. No Franchise shall relieve Grantee of any obligations
involved in obtaining pole or conduit space from Grantor, utility company or from others
maintaining utilities in Street or Public Ways.
L. Extension of Franchise Area. If Grantor elects to grant one or more Franchises
hereunder, and if thereafter one or more of the Franchises expires or is otherwise terminated,Grantor
may, if it so elects, require a remaining Grantee, or more than one, to extend its System to provide
Service to the area served by the terminated Franchise unless Grantee demonstrates to Grantor's
reasonable satisfaction that it is not commercially practical to do so; provided, however, Grantee
shall not be required to overbuild, as the to is used in the industry, any existing System. 'The
terms and requirements of such extension shall not exceed those contained herein or in Grantee's
Franchise.
M. Repair of Streets and Public Ways. Any and all Streets and Public Ways
disturbed or damaged by Grantee or its contractors, during the construction, operation,
maintenance or reconstruction of the System shall be within the timeframe and limits
DIM624LE
Jane 26�1996 18
specified by Grantor or agent of Grantor and at Grantee's expense,to their original condition unless
otherwise authorized in writing by Grantor;
N. Erection of Voles Prohibited. Grantee shall not erect any pole on or along any
Street or Public Way in an existing aerial utility system. If additional pales in an existing
aerial route are required, Grantee shall negotiate with the appropriate public utility for their
installation: Any such installation shall require the advance written approval of the Grantor.
Subject to applicable federal and state lag, Grantee shall negotiate the lease of pole space
d facilities from the existing pale owners for all aerial construction, under mutually
acceptable terms and conditions.
O� Trimming of `frees. Grantee shall not cut or trim any Grantor street trees or any
trees in any Street or Public Way except pursuant to a prior agreement with Grantor and with
the owner of the property on which they stand.
P. Reservations of Street and Public Way Rights. Nothing in a Franchise shall prevent
Grantor from constructing, repairing and/or altering any public work. All such work, shall
be done insofar as practicable, in such manner as not to unnecessarily obstruct, injure or prevent the
free use and operation of any property of Grantee. However, if any such property of Grantee shall
interfere with the construction, maintenance or repair of any public improvement, all such property}
:shall be removed or replaced in such manner as directed by Grantor so that the same shall not
interfere with the said public work,, and such removal or replacement shall be at the expense o
Grantee.
5,26-090. t, Aerations and Maintemnce
A. Maintenance and Complaints.
1. Grantee shall maintain an office in the Service Area, or such other location
approved by Grantor in writing, open. during all usual business hours, but in no case less
than forty eight ( ) hours per week, including at least one weekend day per week. Grantor
shall have a publicly listed nor-hall-charge telephone number, operated as to receive
Subscriber complaints and requests on a -hour basis. Current information shall be
maintained of all complaints and their disposition and a summary thereof shall be submitted
o Grantor upon request, but not more often than monthly:
2. Grantee shall respond within four(4) hours after receipt of request for repairs
relating to a Service Interruption affecting at least ten. (l ) percent ofthe Subscribers of the
Systema, and witIrin twenty-four ( hours after receipt of requests for service related to all
other Service Interruptions and eager Complaints and requests for repair, All Cable
System-related problems shall be resolved within two (2) business days unless technically
infeasible. No charge h ll be made to the Subscriber for such service or repair except!'that
Grantee may charge for service calls not related to its table System.
3. Grantee shall provide a telephone system to receive all construction and
service Complaints. A sufficient number of Subscriber service representatives shall be
provided so that callers are not required to wait beyond thirty (30) seconds before being
connected to a Subscriber service representative or receive busy signals more than three (3)
percent of the time measured quarterly. The telephone number of the local office shall be
listed in the telephone directory serving the City of Redlands. The telephone service shall
accept complaints twenty-four (24) hours a day, seven (7) days a week. The telephone
system shall be capable of self-generating reports relating to answer times, -response times,
hold times and abandoned calls.
4. Subscriber service personnel shall identify themselves by their fall names
immediately.
5. Subscribers shall have the right to speak with asupervisor, and if none is
available, a supervisor shall ret the Subscriber'scall within four(4) working hours.
6. All officers, agents or employees of Grantee; its contractors or subcontractors
who come into contact with members of the public shall wear on their outer clothing a
photo-identification card in a form reasonably acceptable to Grantor. Grantee shall account
for all identification cards at all times. Every vehicle of Grantee and its major subcontractors
shall be clearly identifiable as working for Grantee.
7. Grantee shall provide and guarantee Subscribers a time, with the option of
scheduling a four (4) hour period or less, in which a service call will be made.
8. If a Grantee representative is running late for an appointment with a Subscriber
and will not be able to keep the appointment as scheduled, the Subscriber shall be contacted and the
appointment shall be rescheduled, as necessary, at a time which is convenient for the
Subscriber.
B. Procedures for Handling of Complaints. Grantee's complaint handling procedures
shall be designed to accomplish the following:
I. Receipt and acknowledgement of any Complaint made in person or by
telephone within four(4) business hours.
1)
., Acknowledgement of any Complaint received by mail at Grantee's office within
two (2) business days of the date such complaint is received.
3. Maintain information, available to Grantor upon Grantor's request, of all
Complaints. including the Subscriber's name, address and telephone number, the date of its
acknowledgement, information given as to how the complaint would be resolved and the action
taken.
DJM6241_1_ 20
June 26,M6
4. Provide complete information to the Subscriber regarding the Subscriber's
ability to take the complaint to Grantor's representative if it is not resolved by Grantee.
5. Grantee shall respond as soon as practicable, but in no event more than four(4)
business hours to Complaints made or referred by Grantor.
C, Remedies for Inadequate Performance. Except for rebuild or planned Service
Interruptions for 'which Grantee receives prior approval of Grantor, in the event that one third
or more of its Cable Service(s) to any Subscriber is interrupted for six (6) consecutive hours,
or for a total of twelve (12) nonconsecutive hours within any thirty (30) day period, and
Subscriber notifies Grantee of said Service Interruption within twenty-four (24) hours of
Subscriber's discovery thereof, Grantee shall provide a twenty percent (20%) rebate of the
monthly fees to affected Subscribers for each such consecutive six hour and/or
nonconsecutive twelve hour Service Interruption period, In no case shall such rebate exceed
the monthly fee charged to the Subscriber.
D. Biennial Audit of Performance.
1. Grantor may require, at its option, that performance audits of the System be
conducted even, two (2)years by an independent technical consultant, selected and employed
by Grantor and at Grantee's sole expense, to verify compliance of the System to all technical
standards and other specifications of the Franchise, as provided in the Franchise.
2. Upon completion of a performance audit, Grantor and Grantee shall meet
to review the performance of the Cable System. The reports required herein regarding
Subscriber Complaints, the records of performance audits, tests and the opinion survey report
shall be utilized as the basis for review. In addition, any Subscriber may submit Complaints
during the review meetings, either orally or in writing, and these shall be considered.
3, Within thirty (30) days after the conclusion of the System performance
review meetings, Grantor shall issue findings with respect to the adequacy of System
performance and quality of service. If inadequacies are found, Grantor may direct Grantee
to correct the inadequacies within such period of time as Grantor determines is reasonable.
4. Grantor's and Grantee's participation in this process shall not waive any rights
they may possess under applicable federal and/or state law,
5. In addition to the Biennial Audit described above, Grantor may conduct an
,annual audit of the same orale ser magnitude, at its sole expense, when and if determined
necessary or appropriate by Grantor.
E. System Technical Data. Grantee shall maintain in its local office a complete and
up-to-date set of as-built system maps and drawings upon completion of construction or
DJN4624LL
Joke 26,1996 21
reconstruction. Equipment specifications and maintenance publications and signal level
diagrams for each active electronic piece of equipment in the System shall also be available
for review by Grantor. As-built drawings shall show all lines and installed equipment, and tap
values and spigots. The scale of maps and drawings shall be sufficient to show the required
details in easily readable form and size. Technical data at the local office shall also include
approved pole applications, details and documentation of satellite and microwave equipment,
mobile radio units, heavy construction vehicles and equipment, and video and audio
equipment normally used in the operation of the System. If Grantor requires use of technical
data in its own office, it may make copies of any items at Grantor's expense.
F, Availability of Technical Data. For the sole purpose of ensuring compliance with this
Chapter and any Franchise granted hereunder, all technical data shall be available for Grantor's
inspection during normal business hours, upon reasonable notice, and, in the event of System
failure or other operating emergency, at any time, so long as the provision of said data does not
unreasonably interfere with Grantee's operations.
G. Emergency Repair Capability. Grantee shall ensure that personnel qualified to make
repairs are available at all reasonable times and that they are supplied with keys, equipment
location instructions, and technical infortnation necessary to begin repairs upon notification
of the need to maintain or restore continuous service to the System.
H. Subscriber Service Standards and Procedures.
1. Information to Subscribers. Grantee shall, at the time service is initiated,
provide each new Subscriber written information covering:
(i) The time allowed to pay outstanding bills.
(ii) Grounds for to nation of service,
(iii) The steps Grantee must take before terminating service.
(iv) How the Subscriber may resolve billing disputes and complaints.
(v) 'Me steps necessary to have service reconnected after involuntary termination.
(vi) The fact that Subscriber service personnel shall identify themselves by full
names immediately.
(vii) The fact that Subscribers shall have the right to speak, with a supervisor, and
if none are available, supervisor shall return Subscriber calls within four(4)working hours.
(viii) The appropriate regulatory authority with whom to register a Complaint and
DJM624LE
June 26,1996 22
how to contact such authority.
In addition, at least once each calendar year, Grantee shall notify each Subscriber that
information is available upon request concerning items (i)through.(viii)above.
2. Written Notices.
Written notice of all terms of the Subscriber agreement, the name, address and
telephone number of company, all equipment and fee options, the availabiliq of A/B
sw,itches, the availability of parental control devices, any reduced rates for seniors or other
Subscribers, company billing and credit practices, company practices with, respect to privacy
of Subscriber, the telephone numbers for Subscriber complaints of the company and Grantor
and other relevant information shall be made by Grantee to Subscribers before service is
begun, at least once each calendar year, or at any time upon the request of a Subscriber, and
whenever substantial changes regarding the Subscriber agreement are made.
3. Advanced Notice of Changes.
Except as provided in applicable law, advance notices of changes, including
increases in fees or charges and changes in channel lineup of stations or services, shall be
sent to Grantor and to Subscribers promptly, that is, at least forty-five (45) days to Grantor
and fomr-five (45) days to Subscribers before the changes are made, except for changes not
known sufficiently in advance by Grantee and not under Grantee's control or where Grantor's
waiver is obtained.Notices should be clearly identified and in print large enough to be easily
readable.
4. Billing, Except as provided in Subsection 5.76.070C. bills for service shall
be Tendered monthly, unless otherwise authorized by the Subscriber and Grantee or unless
service is rendered for a period less than one (1) month.All bills shall contain a telephone
number and a mailing address for billing inquiries or disputes and shall clearly delineate all
charges and the basis for those charges.
(a) Disputed Bills. In the event of a dispute between a Subscriber and
Grantee regarding the bill, Grantee shall promptly make such investigation as is required by
the particular case and report the results to the Subscriber. In the event the dispute is not
resolved to the satisfaction of both parties, Grantee shall remind the Subscriber of the
Complaint procedures of Grantee, If a SubscribCTAishes to obtain the benefits of paragraphs
of this subsection, notification of the disputed bill must be given to the Grantee in writing
within thirty (30) days after the bill date,
(i) A Subscriber shall not be required to pay the disputed portion of
the bill until the earlier of the resolution of the dispute, or the expiration. of the forty-five (45)
day
period beginning on the date of issuance, provided that the procedures established above
OJ,%46241X
June 26,199f, 23
have been followed.
(ii) Pending resolution of the bill dispute, Grantee shall exercise
reasonable care to ensure that no termination notices shall be issued for the disputed portions
of the bill nor shall any other collection procedures be initiated for said amount. Any such
activity may be interpreted as an attempt to avoid the provisions ofthese rules and shall
constitute violation of this Chapter and/or the Franchise.
5. Referral of accounts to Collection agencies. Uncollected accounts may be
referred to private collection agencies, for appropriate action if the bill has not been paid by
the earlier of ) thirty 0 days following date of involuntary termination or (b) the six ,-
first ( 1 st) day following the date of issuance of the original uncollected amount, provided
no notification; of billing dispute has been trade or if procedures for resolution of billing
disputes have not been followed as required above. If the account was voluntarily
terminated, for any reason, the account may not be referred to a private collection agency
until at least thirty (30)days following rendering of the final bill. If notification of a billing
dispute is made, all collection procedures shall be delayed as required in paragraph (ii) of
subsection 4(a) of this section, "Disputed Bills," Referral to collection agent shall then occur
no sooner than the sixty-first (61st) day following issuance of the original uncollected
amount;_
Termination for Non-Payment._ Bills shall not be delinquent earlier than thirty=
(3 days from the date of postmark of the bill, which must be mailed to Subscribers within
five (5) working days prier to its dated due date. Subscribers must be notified in writing,
of a proposed disconnection for non-payment at least fifteen (l days prior to disconnection.
Grantee may not assess late charges of any amount, earlier than: the thirtieth (30th)day from
the postmark of the bill=
L Refund, When a Subscriber voluntarily discontinues service, Grantee shall refund
the unused portion of any advance payments after deducting any chanes currently clue
through the end of the present billing periodwithin forty-five (4 ) days of discontinuance
of service. Unused payment portions shall be the percentage oftime for which;Subscriber
has paid for service and will not receive it because of the Subscriber's discontinuation of
service.
J. duality of Serviced The quality of Grantee's service refers to the services,
associated with clay-to-dad{operations (e. ., response to Subscriber Complaints, billing, Service
Interruptions, disconnection, rebates and credits, signal quality, and the provision. to
Subscribers or potential Subscribers of information on billing or services), In order to assess
the quality of >service, at Grantor's request: Grantee shall survey at Grantee's cost, a
statistically representative telephonic sample of Subscribers at least once every other calendar
year. The form, content, and methodology of the telephonic survey shall be prior approved'
in writing by Grantor prior to use by Grantee, The results of said survey, including the ray
DJM6 4L
June 26,1946 24
data and conclusions, shall be provided to Grantor within twenty, (20)days of completion and
tabulation of results.
L 2L 10-0. Viglations.
A. Use of Streets and Public Ways. It shall be, unlawful for any Person to construct,
install or maintain in any public place within Grantor's territory, or upon any easement
owned or controlled by a public, utility, or within any other public property of Grantor, or
within any privately-owned area within Grantor's jurisdiction which is not yet,but is designated
as, a proposed public place on a tentative subdivision map approved by Grantor, any
equipment. facilities, or system for distributing signals or services through a Cable Television
System unless a Franchise has first been obtained hereunder, and is in full force and,effect,
B. Unauthorized Connections. It shall be unlawful for any Person to make or use
any unauthorized connection to, or to monitor, tap, receive or send any signal or service via
a Franchised System, or to enable anyone to receive or use any service, television or radio
signal, picture, program, or sound or any other signal without payment to the owner of said
System.
C. Tampering With Facilities. It shall be unlawful, without the consent of the,
owner, to willfully attach to, tamper with, modify, remove or injure any physical part, of a
Franchised Cable System.
5,276k,_110. Termination ud Receivership,
A. Revocation. Consistent with applicable law, in addition to any rights set out
elsewhere in this Chapter, Grantor reserves the right to revoke a Franchise, subject to notice
to Grantee and the provision of a hearing, consistent with due process requirements, in the
event that Grantee willfully and/or negligently on a continuous basis violates any material
provision of its franchise, or Grantee's construction schedule is materially delayed as set forth
in the, Franchise and such delays were within the control, of Grantee.
B. Forfeiture. Consistent with applicable law, upon failure of Grantee to comply
with the material terms, of its Franchise, Grantor may by resolution after a full hearing
affording Grantee due, process, declare a forfeiture, and Grantee may be required to remove
its structures or property, from the Streets and Public Ways and restore, the Streets and Public
Ways to their prior condition within a reasonable period of time and upon failure to do so,
Grantor may perform the work and collect all actual costs, including all direct and indirect
costs, thereof from Grantee. At Grantor's discretion, the cost thereof may be, a lien upon all
Plant, property, or other assets of Grantee.
5 2_6�11?O Franchise-Applications, Applicants for a Franchise shall be submitted to
Grantor on a written application in a format provided by Grantor, at the time and place
RIMONLE
hi no 26 3996 25
designated by Grantor for accepting applications and including the designated application fee.
A, nonrefundable application fee established by Grantor shall accompany the initial application
or renewal application to cover all costs associated with processing and renewing the
application, including without limitation, costs of administrative review, financial, legal and
technical evaluation of the applicant, consultants (including technical and legal experts and
all costs incurred by such experts), notice and publication requirements with respect to the
consideration of the application and document preparation expenses. In the, event such costs
exceed the application fee, an applicant shall pay the difference to Grantor within twenty
(20) days following receipt of an itemized statement of such costs. This provision is deemed
procedural and shall not constitute the grant of any right to Grantee.
5 2 .ALI3 0 Record&
A. Grantee shall provide Records. All reports or records required under this Chapter
shall be furnished at the, sole expense of Grantee, except as otherwise provided in this
Chapter or the Franchise.
B. Records. There shall be kept in Grantor's local offices, and available during
normal business hours, a separate record for the Franchise, which record shall show the
things hereafter set forth in Subparagraph I below. Grantee shall provide such info tion
in such form as may be required by Grantor for said records, as well as copies of any
records of Grantee upon Grantor's request, so long as the provision of said documents does
not unreasonably interfere with Grantee's operations and said information is reasonably related
to the scope of Grantor's rights under this Chapter, the Franchise and/or Grantor's regulatory
functions. Grantee shall keep true and accurate books and records in conformity with
generally accepted accounting principles, consistently applied, showing all income, expenses,
and expense transfers,, borrowing, payments, investments of capital, and all other transactions
relating to the System. Grantor shall, upon reasonable notice, have the right to inspect said
records and receive copies thereof to the extent said information is reasonably related to the
scope of the Grantor's rights under this Chapter, the Franchise and/or Grantof s regulatory
functions.
C. Reports of Financial and Operating Activity. No later than ninety (90) days after
the close of Grantee's fiscal years, Grantee shall present an audited written report to Grantor
,which shall include:
1. The amount collected annually from other users of service and the character
and extent of the service rendered therefor to them.
2. A financial report verified by the Chief Financial Officer of Grantee for all
Cable System activity during the previous fiscal year including Gross Receipts from all
sources and Gross Subscriber revenues from each Service, and set out separately, Gross
Receipts from all sources in the City and Gross Subscriber Revenues from each Service in
DJM624LE 26
June 26a 116
the City.
3. A summary of the previous year's activities, including, but not limited to,
Subscriber totals and new services.
4 A list of Grantee's officers, members of its board of directors and the
principals of Grantee.
5. A list of stockholders or other equityinvestors holding five (5%) or more
of the voting interest in Grantee
6. A summary of Complaints received andremedial actions taken.
D. Performance Tests and Compliance Reports. No later than April 15th of each
year, Grantee shall provide upon written request from Grantor, a written report of any FCC
or other performance tests required or conducted. In addition, Grantee shall provide reports
of the Test and Compliance procedures established by its Franchise, or herein, no later than
thirty(30) days after the completion of such tests.
E. Examination of Facilities. Upon reasonable notice, and during normal business
hours., Grantee shall permit examination by any duly authorized representative of Grantor, of
all Franchise property and facilities, together with any appurtenant property and facilities of
Grantee situated within the City.
F. Additional Reports. Grantee shall prepare and furnish to Grantor in writing at the
times and in the form prescribed by Grantor,, such additional reports with respect to Grantee's
operation, affairs, transactions, or property, as may be reasonably necessary and appropriate
to the performance of any of the rights, functions or duties of Grantor, as specified by
Grantor, so long as the provision of said reports does not unreasonably interfere with
Grantee's operations.
G, Communications with Regulatory Agencies. Copies of all communications between
Grantee and the Federal Communications Commission or any other agency having jurisdiction
in respect to any matters affecting cable communications operations authorized pursuant to
a Franchise shall be submitted promptly to Grantor upon receipt of a-written request therefor,
K Right to Audit. In addition to any inspection rights under this Chapter or the
Franchise, Grantor shall have the right to inspect, examine, or audit, during normal business
hours and upon reasonable notice to Grantee, all documents which pertain to Gran,tee or any
Affiliated Person with respect to the System, each en ice distributed over the 'System and
each Service related activity and which are reasonably necessary to Grantor's performance of
its obligations and/or Grantor's enforcement of its fights under the terms of this Chapter or
the Franchise,: provided, however, that Grantor may not exercise said right, more frequently
DIM6241,r
Julie 26 19%, 27
than once in any twelve (12) month period. All such documents shall be made available
at the local office of Grantee. All such documents which pertain to financial matters which
may be the subject of an audit by Grantor shall be retained by Grantee for a minimum of
five (5) years following termination of any Franchise. Access by Grantor to any of the
documents covered by this section shall not be denied by Grantee on grounds that such
documents are alleged by Grantee to contain proprietary information. To the extent allowed
by applicable law. Grantor shall maintain the confidentiality of said documents.
Grantor may require written certification of the accuracy by Grantee's appropriate
directors, officers or other employees with respect to' all documents referred to in this
section.
Any audit conducted by Grantor pursuant to this section shall be conducted at the
sole expense of Grantor and Grantor shall prepare a written report containing its findings,
a copy of which shall be mailed to Grantee; provided, however, that Grantee shall reimburse
Grantor for the expense of any such audit if, as the result of said audit, it is determined
that there is a shortfall of more than two percent (2%) in the amount of Franchise fees or
other payments which have been made or will be made, by Grantee to Grantor pursuant to
the terms of any Franchise.
1. Retention of Experts. In the exercise of its rights under this Chapter, Grantor
shall have the right to retain technical experts and other consultants on a periodic basis for
the purpose of monitoring, testing and inspecting any construction, and operation and
maintenance of the System, and all parts thereof, to ensure compliance with and enforcement
of the provisions of this Chapter and any Franchise. Grantor shall bear the cost of retaining
such experts, provided that Grantee shall reimburse Grantor for all expenses related to the
retention of such experts where this Chapter or the Franchise so provide or under either of
the following circumstances:
1. Grantee has initiated proceedings which would normally require Grantor to
retain such experts, such as the filing of a request for approval of transfer, renewal.,
expansion of the Service Area or modification or amendment of any Franchise,
2. The reports of such experts to Grantor reveal that Grantee has failed to
substantially comply with the terms and conditions of this Chapter or any Franchise.
If Grantee is required to reimburse Grantor pursuant to this section, Grantor shall send
Grantee an itemized description of such charges and Grantee shall pay such amount within
twenty (20) days of the receipt of such description.
1-7�6�14 - Enfimemo—t h4echanim
A. Notice of Franchise Default. Except as provided in the Franchise, prior to formal
DJC 624LE 28
June 26,1 q96
consideration by Grantor of termination of Grantee's Franchise because of willful or
continuous negligent failure to correct a default attributed to Grantee, Grantor shall make
L
written demand on Grantee to correct the alleged default. Grantor and Grantee shall
expeditiously meet to discuss the alleged problem, at which time Grantee shall indicate, in
writing, the amount of time necessary to resolve the alleged problem. During this time
period, but in no event fewer than ten (10) days before the final date for correction, Grantee
may request additional time to correct the problem and Grantor shall grant said request if
it determines, in the exercise of its discretion, that such time is necessary due to delays
beyond Grantee's control. If the default continues for a period of thirty (30)days following
such deadline for correions,
ct
I , plus any extension thereof, Franchise termination may be
placed on the next available regular Grantor's meeting agenda or any meeting agenda
thereafter. Grantee shall be served a written notice of such termination at least ten(10) days
in advance giving the time and place of Grantor's meeting. At its meeting, Grantor shall hear
Grantee and any Person interested in the matter and shall determine, at that or subsequent
meetings, an appropriate course of action for enforcement or termination of Grantee's
Franchise.
B. Delegation of Enforcement Mechanisms. Such liquidated damages as Grantor may
assess against Grantee which do not include loss of a Franchise may, at Grantor's option, be
determined by an officer or agency of Grantor to which it may delegate such administrative
considerations and decisions subject to due process and the criteria contained in this Chapter
and the Franchise, subject to appeal to the City Council.
5,Z6-1 Interconnection.
A. Interconnection With Systems Under Grantor's Jurisdiction. Upon direction of
Grantor, Grantee shall interconnect the PEG Channels of its Cable Television System with
those other Cable Television Systems under Grantor's jurisdiction within no more than six
(6) months from the date of order. If Grantee has not negotiated a mutually agreeable cost
allocation formula with those Systems with which it is ordered to interconnect within three
(3) months of Grantor's interconnection order, Grantor may establish said cost allocation
formula and require all Grantees under its jurisdiction to so comply.
B. Interconnection With Systems Outside of Grantor's Jurisdiction. Grantee shall
interconnect PEG access, and such other PEG< channels of the Cable System as designated
by Grantor with any or all other Cable Systems in contiguous areas as may be reasonably
directed by the Grantor and agreed to by the other Cable Television Systems (so long as
such systems agree to pay their pro-rata share of such interconnection costs) and applicable
Jurisdiction(s). Interconnection of Systems may be done by direct cable connection, microwave
link, satellite, or other appropriate method subject to Grantor's approval and generally accepted
industry standards. Such interconnection shall not increase the number of channels Grantee
must dedicate to such uses, nor influence any useable formula for triggering additional PEG
channels.
DA4624LE 29
Junc 26,19%
C. Initial Technical Requirements to Assure Future InterConnection Capability.
Grantee shall provide equipment that is compatible with industry standards so that Video
Programming may be shared throughout the regional Cable Systems.
76,1.oQ_: Miscellaneous Provisions.
A. Captions. The section and subsection numbers and captions throughout this
Chapter are intended to facilitate reading and reference. Such numbers; and captions shall not
affect the meaning or interpretation of any part of this Chapter.
B. Franchise References. A Franchise which cites,refers to, or Botherwise incorporates
this entire Chapter or portions thereof shall be deemed to be a Franchise issued under and
subject to this Chapter. Such a Franchise may employ, assufficient for citation, reference,
or incorporation the section or subsection number and caption thereof, followed by a statement
of the detail specification, or requirement of the Franchise pursuant to such reference.
C. Filing. When not otherwise prescribed herein, all matters herein required to be
filed with Grantor shall be filed with Grantor's official or agency as designated by Grantor.
D. Non-enforcement by Grantor, Grantee shall not be relieved of its obligation to
comply with any of the provisionsof this Chapter, or of its Franchise or any law or
regulation, by reason of failure of Grantor to force prompt compliance.
E. Continuity of Service. It shall be the right of all Subscribers to receive all
available services within the obligations of the Franchise insofar as their financial and other
obligations to Grantee are honored. In the event that Grantee elects to rebuild, modify, or
sell the System, Grantee shall use due diligence and reasonable care to ensure that all
Subscribers receive continuous, uninterrupted service. In the event of purchase by Grantor,
or a change of Grantee, the current Grantee shall cooperate with Grantor or new Grantee
to operate the System for a temporary period, to maintain continuity of service to all
Subscribers. In the event that Grantee, through its own fault, discontinues System-wide
service for seventy-two (72) continuous hours and Grantee is in, material default of its
Franchise or said Franchise is revoked by Grantor, but not if Grantor fails to renew said
Franchise, Grantor may, by resolution when it deems reasonable cause exists, assume
operation of a System for the purpose of maintaining continuity of service until any
circumstances which may, in the judgment of Grantor threaten the continuity of service, are
resolved to Grantor's satisfaction, Grantor shall be entitled to the revenues for any period
during which it operates the Cable System.
F. Operation By Grantor. During any period when the System is being operated
by Grantor pursuant to Subsection E,above, Grantot shall attempt to cause as little disruption
of operations as is consistent with the maintenance of continuing service to Subscribers.
Notwithstanding the foregoing, Grantor shall, as it may deem necessary, make any changes
DJM624LE 30
June 26,19%
in any aspect of operations desirable, in Grantor's sole judgment, for the preservation of
quality of service and its continuity. Grantor shall further, during any such period, maintain
to the best of its ability the System's records, physical plant, financial integrity and fands,
and other details and activities normally involved in operations.
G. Management by Grantor. Grantor may, upon assuming operation of a System
franchised hereunder, appoint a manager to act for it in the overall as well as detailed
direction and conduct of the System's affairs. Such manager shall have the authority
delegated by Grantor and shall be solely responsible to Grantor for management of the
System. Grantee shall reimburse Grantor for all its reasonable costs or damages in excess of
Systern revenues during Grantor operation if the Franchise is in full force and effect during
the period of Grantor operation.
H. Notices. All notices and other communications to Grantee shall be addressed to
it at the address at which Grantee conducts its business. All notices and other
communications to Grantor shall be addressed to it at its published address for receipt of
public communications.
I. Force Majeure, Grantee!s Inability to Perform. In the event Grantee's performance
of any of the terms, conditions, obligations, or requirements of this Chapter or anyFranchise
granted hereunder, is prevented or impaired due to any cause beyond its reasonable control
and not reasonably foreseeable, such inability to perform shall be deemed to be excused, and
no penalties or sanctions shall be imposed as aresult thereof. Such causes beyond Grantee's
reasonable control and not reasonably foreseeable shall include,, but not be limited to, any
acts of God, civil emergencies, labor unrest, strikes, inability to obtain gratis access to an
individual's property, and any inability of Grantee to secure all necessary permissions or
permits to utilize necessary poles or conduits so long as Grantee utilizes due diligence to
timely obtain said permissions or permits.
J. Application, All of the provisions of this Chapter shall be applicable to all Cable
Operators and Cable Systems to the greatest extent permissible under applicable law."
Sectioal If any provision of this ordinance is determined to be void or invalid
by any administrative, or judicial tribunal, said provision, shall be deemed severable and such
invalidation shall not invalidate the remaining provisions of this ordinance or any other
provision thereof.
DW624LE 31
June 26,3596
Section 3, The Mayor shall sign this ordinance and the City Clerk shall certify to the
adoption of this ordinance and shall cause it, or a summary of it, to be published once in the
Redlands Daily Facts, a newspaper of general circulation within the City and thereafter, this
ordinance shall take effect as provided by law.
City of Redlands, Mayor Pro Tem
ATTEST:
City�Ierk
1, Morrie Poyzer, City Clerk of the City of Redlands, hereby certify that the foregoing ordinance was
duly adopted by the City Council at a regular meeting thereof held on the 16th day of July
1996, by the following vote:
AYES: Councilmembers Gilbreath, Cunningham, Gil, Banda; Mayor Larson
NOES: None
ABSTAIN: None
ABSENT. None
City
ci Cl of the(6"Redlands
I)IM6241X 32
Junt 26,1996