Loading...
HomeMy Public PortalAboutORD09777 r , BILL NO. INTRODUCED BY COUNCILMAN , ORDINANCE NO. 91 r r ,:AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI TO REPEAL ;, ORDINANCE NO. 9760 PROVIDING FOR THE ESTABLISHMENT AND GRANTING ' OF FRANCHISES OR PRIVILEGES FOR THE CONSTRUCTION, MAINTENANCE, : AND OPERATION OF CABLE COMMUNICATION, OR CABLE TELEVISION ;; SYSTEMS AND FURTHER PROVIDING FOR THE CONTINUING REGULATION AND !1ADMINISTRATION OF THESE FRANCHISES AND THE ACTIVITIES RELATIVE 'iTO THEM, AND ENACTING IN LIEU THEREOF A NEW ORDINANCE DEALING ';WITH THE SAME SUBJECT MATTER. i ': BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON, iMISSOURI, AS FOLLOWS: , SECTION A. Ordinance No. 9760 is hereby repealed. ,! SECTION B. This ordinance shall be known and may be cited as ;' the "Jefferson City Cable Television Franchise Ordinance" , Am and shall read as follows: SECTION 1. INTENT. The City of Jefferson City finds that the development of cable television and communications ;, systems has the potential of having great benefit and impact upon 11 its citizens. It is not the intent and purpose of this ordinance `: or any franchise agreement entered into pursuant to the provisions ; ,, of this ordinance to in any degree limit or abridge the constitu- tional or statutory rights or obligations of any cable television company, and any ordinance provision or contract provision of :; this City to the contrary shall he deemed null and void by any court of competent jurisdiction. SECTION 2. DEFINITIONS. For the purpose of this i' ordinance a _o owing erms, p rases, words and their deriva- tions shall have the meaning given herein. When not inconsistent :; with the context, words used in the present tense include the ! future, words in the singular number include the plural number. '; The word "shall" is mandatory and "may" is permissive. Words not ildefined shall be given their common and ordinary meaning. 2.1 "Agency Subscriber" means a subscriber who receives, ] ijservice in a government or public agency, school, or non-profit t '! corporation. f' 2.2 "Cable Communications System" or "System, " also Ireferred to as "Cable Television System, " , "CATV System, " or "Broadband Communications Network, " means a system of antennas, cables, amplifiers, towers, microwave links, cable-casting ;; studios, and any other conductors, converters, equipment or :! facilities, designed and constructed for the primary purpose of ;! distributing video programming to home subscribers, and the j! secondary purpose of producing, receiving, amplifying, storing, ;; processing, or distributing audio, video, digital, or other 1 ,! forms of electronic or electrical signals. it 2. 3 "Cablecast Signal" means a nonbroadcast signal that j originates within the facilities of the Cable Communication !f System. �! 2. 4 "Cable-mile" means a linear mile of strandbearing '; cable as measured on the street or easement from pole to pole ' or pedestal, to pedestal. ,, j 2 . 5 "Channel" means a six Megahertz (MHz) frequency i ; band, which is capable of carrying either one standard video : signal, a number of audio, digital or other nonvideo signals , or some combination of such signals, or otherwise as established : by the FCC. 2. 6 "City" means the City of Jefferson City, and shall have the same meaning as "Grantor" defined herein. 2. 7 "Commencement of Construction or (reference there- to) " means that time and date when construction of the Cable Communications System is considered to have commenced, which shall be when the preliminary engineering (strand mapping) or network '' design is initiated, and after all necessary permits and authorizations have been obtained. 2. 8 "Commencement of Operation (or reference thereto) " means that time and date when operation of the Cable Communica- tions System is considered to have commenced, which shall be when sufficient distribution facilities have been installed so as to ( permit the offering of full service to at least twenty percent ; (20%) of the dwelling units located within the service area. i 2 .3 "Commercial Subscriber" means a subscriber who (; receives a service in a place of business, where the service may Abe utilized in connection with a business, trade or profession. j� 2. 10 "Converter" means an electronic device which � j: converts signal carriers from one form to another. 2.11 "Council" means the City Council of the City of Jefferson. I 2. 12 "Educational Channel, " or "Educational Access Channel" means any channel where educational institutions are the :: only designated programmers. j; 2. 13 "FCC" means the Federal Communications Commission ` ; and any legally appointed or elected successor. j 2. 14 "Franchise" means the non-exclusive rights granted ;; pursuant to this ordinance to construct and operate a Cable j; Coramunications System along the public ways within all or a !, specified area in the City. Any such authorizations, in whatever ilform granted, shall not mean or include any license or permit re- quired for the privilege of transacting acid carrying on a business ; within the City as required by other ordinances and laws of this � 1, City. i 'i � 2. 15 "Franchise .Agreement" means a franchise award lordinance, accepted on the part of the Grantee, containing the { specific provisions of the franchise granted, including referenced, 1, specifications, franchise applications, and other related materials; ( The franchise agreement may modify terms of this ordinance by {' 1: appropriate ro riate ordinance amendment. j 2. 16 "Franchise Payment" means all charges imposed for I i a franchise. �i 2. 17 "Governmental Channel" or "Government Access jiChannel" means any channel where local government agencies are j .i the only designated programmers. it 2 . 18 "Grantee" means any person receiving a franchise j pursuant to this ordinance and under the granting franchise I! ordinance, and its lawful successor, trustee, receiver, transfereel jI or assignee. i 'i 2. 19 "Grantor" means the City of Jefferson, as repre- C ii sented by its governing body acting within the scope of its j 1 authority. i i ! I -2- i; I I i 2. 20 "Gross Annual Revenues" means the annual gross ` revenues received by the Grantee from all sources of operations iof the Cable Communications System, except that any sales, excise `ior other taxes collected for direct pasathrough to local, state 1Ior federal government shall not be included. ?i ! i, 2. 21 "Initial Service Area" means the area of the City which will receive service initially, as set forth in the ; franchise agreement. 2. 22 "Installation" means the connection of the system ;! from feeder cable to subscribers' terminals, and the provision '; of service. `} 2, 23 "LACME" means LOCAL Access Channel Management :; Entity, i.e. , that person selected by Grantor to operate, manage, '; and produce local origination programming and public access programming. � a+ 2.24 "Local Origination Channel" means any channel that ,iprovides local non-broadcast programming to subscribers. H 2. 25 "Monitoring" means observing a communication i ' signal, or the absence of a signal, where the observer is neither i Ithe subscriber nor the programmer, whether the signal is observed l ! (Provided visual or electronic means, for any purpose whatsoever. ! (Provided monitoring shall not include system-wide, nonindivid- N ually addressed sweeps of the system for purposes of verif in g ;; system integrity, controlling return paths transmissions, or 4 billing for pay services. ) jl 2. 26 "Non-Broadcast Signal" means a signal that is j !; transmitted by a Cable Communications System and that is not j ;! involved in an over-the-air braodcast transmission path. } i! 1 I' 2.27 "Obscenity/Pornography" means that which, when 1 iic:onsidered as a whole, by the average adult person, applying ! ;! contemporary community standards: } i (a) predominantly appeals to the prurient i interest in sex; and I� !� (b) depicts, describes or portrays in a patently I; offensive manner human sexual intercourse, j sodomy, bestiality, oral copulation, } masturbations, urinary and defecatory } functions, sadism, masochism, sad.o-maso- �� chistic abuse, lewd exhibition of the genitals or any touching of the genitals, pubic areas or buttocks of the human male or female, or the breasts of the female, 'j whether alone or between members of the Isame or opposite sex, or between humans and animals in an act of apparent sexual stimulation or gratification; and r (� (c) when taken as a whole lacks serious social, j !} literary, artistic, political or scientific i value. 2. 28 "Open Channel" means any channel that can be ! I� received by all subscribers, without the necessity for special } equipment, other than a converter. i j' 2. 29 "Ordinance" means any lawfully enacted order of Sa political subdivision of the State of Missouri. j f, j1 2. 30 "Pay-Cable" or "Pay-Television" means the delivery ?; to subscribers, over the Cable Communications System, of tele- ;; vision signals for a fee or charge over and above the charge for !, Basic Subscriber Service, on a per program, per channel or other I Ilsubscription basis. j -3- I+ 2. 31 "Person" means an individual, partnership, asso- ciation, organization, corporation, other entity or any lawful successor, transferee or assignee thereof. 2. 32 "Pornography" . See 2 . 27 "Obscenity/Pornography" . 2. 33 "Public Access Channel, " "Community Access Channel, " , or "Community Channel" means any channel where any member of the general public or any non-commercial organization may be a programmer, without charge, on a first-come, first-served, non- .: discriminatory basis, in accordance with FCC regulations, and regulations established by the local access channel management entity (LACME) designated by the City. 2. 34 "Reasonable Notice" shall be a written notice , addressed to the Grantee at its principal office or such other office as the Grantee has designated to the City as the address to which notice should be transmitted, which notice shall be either sent by certified mail (or its equivalent) and postmarked not less than four (4) days prior to that day, or delivered ;. personally by Grantor by and through its representative. In computing said four (4) days, Saturday, Sundays and Holidays recognized by the City shall be excluded. Actual notice shall :' be an absolute defense by the Grantor in any future action of any kind by Grantee where proper notice shall be an issue. i 2. 35 "Reasonable Order" shall be a written order not excessive or extreme as to costs or time to comply. AM 2. 36 "Resident" means any person residing in the City ;' or as otherwise defined by applicable law. i 2. 37 "Residential Subscriber" means a subscriber who ' receives a service in an individual dwelling unit, where the service is not to be utilized in connection with a business, trade or profession. 2. 38 "Sale" shall include any sale, exchange, barter or offer for sale. 2. 39 "School" means any educational institution includ- ing primary and secondary schools, colleges and universities, i both public and private. 2. 40 "Section" means any section, subsection, or provision of this ordinance. i ii 2. 41 "Service Area" means the entire geographic area within the franchise territory. 2. 42 "State" means the State of Missouri. j !i 2. 43 "Street" shall include each of the following which have been dedicated to the public or hereafter dedicated to the !ipublic and maintained under public authority or by others and { located within the City limits: streets, roadways, highways, ' avenues, lanes, alleys, sidewalks , easements, rights-of-way and ' similar public ways and extensions and additions thereto, i together with such other public property and areas that the City I' shall permit to be included within the definition of street from i time to time. i'; 2. 44 "Subscriber" means any person, firm, corporation, j �', or other entity who or which elects to subscribe to, for any j !; purpose, a service provided by the Grantee by means of or in connection with the Cable Communications System. 2. 45 "Substantially Completed" means that sufficient I :i distribution facilities have been installed by the Grantee so as to permit the offering of full network service to at least ninety percent (90%) of the potential subscribers in the service ' area, i i -4- i i' i 2.46 "Tapping" means observing a two-way communications ; signal exchange, where the observer is neither of the communicat- ing parties, whether the exchange is observed by visual or ;:electronic means, for any purpose whatsoever. 2. 47 "Year" means the remaining portion of 1982. Thereafter, "year" means a full calendar year. SECTION 3. GRANT OF FRANCHISE. 3.1 Grant. In the event that Grantor shall grant to a . Grantee a non-exclusive, revocable franchise to construct, ,,operate, maintain and reconstruct a Cable Communications System within the City, said franchise shall constitute both a right and an obligation to provide the services of a Cable Communications System as required by the provisions of this ordinance and the 'franchise agreement. 3. 2 Use of Public Streets and Ways. For the purpose i:of operating and maintaining a Cable Communications System in ''the City, the Grantee may erect, install, construct, repair, ,;replace, reconstruct, and retain in, on, over, under, upon, 'across, and along the public streets and ways within the City ,'such wires, cables, conductors, ducts, conduits, vaults, manholes, ! ;;amplifiers, appliances, pedestals, attachments, and other property ; and equipment as are necessary and appurtenant to the operation ' of the Cable Communications System. Prior to construction or :alteration, however, the Grantee shall in each case file plans ; showing plant location with the appropriate City agencies, ;officers or departments, as designated by the City, and utility i !companies, and receive written approval before proceeding. 3. 3 Franchise Non-exclusive. Any franchise granted shall 'be non-exclusive. The Grantor specifically reserves the right to grant, at any time, such additional franchises for a Cable ;Communications System as it deems appropriate. Transfer ransfer of Ownership or Control. i _ i (a) Transfer of Franchise. Said franchise cannot in any event be sold, transferred, Leased, assigned or otherwise disposed �j of in any manner, including but not limited to, forced or voluntary sales, !! merger, consolidation, receivership, or other means, without the prior written consent of the City, and then j' only upon full disclosure of all i material facts by the Grantee. Such (; consent as required by the City shall, however, not be unreasonably withheld. j The transferee, upon transfer as here- tofore described, shall within sixty I ' (60) days thereafter file with the City a copy of the deed, agreement, mortgage, lease or other written instrument I evidencing such sale, transfer or lease, certified and sworn to as correct by the i transferee. Every such transfer as heretofore described, whether voluntary or invol- untary, shall be deemed void and of no !� effect unless transferee shall within ii sixty (60) days after the same shall have been made, file such certified copy as is required. 41 {j (b) Ownership or Control. The Grantee shall promptly notify the City of any actual i� l ,j -5- i i' or proposed change in, or transfer of, or acquisition by any other party in control of the Grantee. The word "control" as used herein is not limited to major stockholders, but includes actual working i control in whatever manner exercised. f; For the purpose of determining whether it shall consent to such change, transfer, or acquisition of control, the City may inquire into the qualifications of the prospective controlling party, and the Grantee shall assist the City in any such inquiry. ii Upon the event of any transfer of any ownership interest in Grantee, Grantee shall notify the City and shall provide City with all contracts, agreements or documents dealing with or affecting said transfer. The Grantee shall also Ii pay all reasonable costs incurred by If the City. Payment shall be a prerequisite .; to the approval of a transfer. (c) Consent Not Waiver. The consent or approval ' of the City to any transfer by the Grantee shall not constitute a waiver or release of the rights of the City in and to the streets, and any transfer shall by its terms, be expressly subordinate to the ! terms and conditions of said franchise provided, however, that upon approval and transfer, grantee-transferor shall have no further obligation pursuant to said franchise. I (d) Successor Must Be Signatory. In no event shall a transfer of ownership or control be approved without the successor in j; interest becoming a signatory to said franchise agreement. l; ;1 3. 5 Police Powers. In accepting this franchise, the Grantee acknowledges that its rights hereunder are subject to j .; the police power of the City to adopt and enforce general ordi- ! nances necessary to the safety and welfare of the public; and =lit agrees to comply with all applicable general laws and ;, ordinances enacted by the City pursuant to such power. j 3. 6 Non-Interr-u tion of Service. The Grantor seeks to 1prevent interruption in service. In the event that the Grantor .! decides that for any reason, Grantee is no longer authorized to 1; operate its cable television system in Jefferson City, and in the .; event that either party elects to have the issue judicially !! determined, it is agreed -that Grantee will continue to operate the system pending resolution of the issue. +' In any other situation where Grantee has decided to ; either voluntarily or involuntarily leave the Jefferson City 1 market, Grantee shall continue to operate its system for a ' reasonable period of time until a new Grantee is selected and begins operation. r 3. 7 Forfeiture or Revocation. (a) Grounds for Revocation. The City reserves the right to revoke any franchise granted +j hereunder and rescind all rights and i� privileges associated with the franchise if the Grantee shall default in the !' performance of any of its material ! -6- f' kl f' obligations under this ordinance or under such documents, contracts and other terms and provisions entered into by and between the City and the Grantee. (b) The Grantee shall not be declared at fault or be subject to any sanction under any provision of this ordinance in any case in which performance of any such provision i is prevented for reasons beyond the Grantee's control. A fault shall not be deemed to be beyond -the Grantee' s control if committed by a corporation or other business entity in which the Grantee holds a controlling interest or which holds, alone or with �! others, a controlling interest in Grantee, whether held directly or indirectly. (c) Procedure Prior to Revocation. (1) The City may make written demand that the Grantee do so comply with any i such requirement, limitation, term, f condition, rule or regulation or r: correct any action deemed cause ! for revocation. If the failure, refusal or neglect of the Grantee i AML ! continues for a period of thirty (30) days following such written demand, the City may place its request for termination of the �t franchise upon a Council meeting E agenda. The City shall cause to be ! served upon such Grantee, at least y ten (10) business days prior to the date of such Council meeting, a written notice of this intent to request such termination, and the !i time and place of the meeting, notice of which shall be published by the City Clerk at least once ten I! (10) business days before such meeting in a newspaper of general circulation within the City. � I !� (2) The Council shall hear any persons j 1 interested therein, and shall deter- mine, in its discretion, whether or not any failure, refusal or neglect by the Grantee was I material, and if so, whether with I� just cause. i i� (3) The Council shall direct the Grantee �i to comply within such time and �i manner and upon such terms and conditions as are reasonable. i �j (4) If -the Council shall determine that {I Grantee failed to correct a breach i is deemed by the council to be material, i the Council may then pursue all ii appropriate legal remedies for breach of the franchise agreement, i! Grantee having reserved its rights j in the premises. iI l' (d) Restoration of Property. In removing its plant, structures, and equipment, the Grantee shall refill, at its own expense, I! any excavation that shall be made by it and shall leave all public ways and places ! i -7- in as good condition as that prevailing prior to the Grantee' s removal of its equipment and appliances without affecting the electrical or telephone cable wires or attachments. The City may inspect and approve the condition of the public ways and public places; and cables, wires, attachments and poles after removal. The liability, indemnity and insurance as provided herein shall continue in full force and effect during the period of removal and until full compliance by the Grantee with the terms and conditions i; of this paragraph and this ordinance. (e) Restoration by City, Reimbursements of Costs . In the event of a failure by the Grantee to complete any work required by subsection (d) above, or any other work required by City law or ordinance within a reasonable i time as may be established and to the i� reasonable satisfaction of the City, the ! City may cause such work to be done and j the Grantee shall reimburse the City the 11 cost thereof within thirty (30) days after �I. receipt of an itemized list of such costs. 3. 8 Franchise Fee. I' I i' (a) Annual Franchise Fee. Grantee shall pay to the Grantor an annual fee in an amount equal to 5% of the gross revenues Grantee derives from its operations in Jefferson I' City, payment to be in the form of monthly installments of $5,000 each, to be received no later than the last day of each month. i In any year that the franchise fee exceeds j $60,000, Grantee shall compute the additional amount due and pay that amount in full by February 15 of the year next following. i (b) Failure to Make Required Payments. In the i j; event that any franchise payment or recom- puted amount is not made on or before the i dates specified herein, Grantee shall pay { �j as additional compensation: ii (1) an interest charge, computed from due jj date on such amount due, at the annual rate equal to the commercial prime ij interest rate in effect from time to time during such period until such i amounts due are fully paid, and !i (2) a sum of money equal to expenses, costs, and attorneys ' fees incurred by the !i City by reason of delinquent payment. (c) Set-Off. Grantee agrees that no part of any franchise fee shall be set-off against any i claim it may have against the Grantor. i 1 (d) Acceptance by City. No acceptance of any i II payment by the City shall be construed as a ! release or as an accord and satisfaction of any; claim the City may have for further or additional sums payable as a franchise fee ji under this ordinance or for the performance of any other obligation of the Grantee. i (e) Verification of Revenues. Pursuant to the i provisions regarding access to financial ii records set forth in Section 4. 1 (f ) , the -8- i Grantee shall provide upon request an audited statement disclosing the gross revenue in the Jefferson City franchise area for the i applicable year. I' SECTION 4. REGULATION OF FRANCHISE. i� j! I 4.1 Rate Regulation. (a) Initial Rates. The Grantee's rates must be I I' app ilea a rly and uniformly to all subscribers in the City for its services in accordance with the rates contained ! in the franchise agreement. (b) Rate Modification Authority. The Grantee i may request a rate change only once in any ! twelve (12) month period, after the t' guaranteed period shall expire. (c) Rate Regulation. The City shall have the power to approve or disapprove any and all j; basic subscription rates and installation charges. Such rates and charges shall be I{ fair and reasonable and no higher than necessary to meet all costs of service with efficient and economical management, including a fair return on the original cost plus } fi improvements, less depreciation, of the properties devoted to such service, without }! .regard to any subsequent sale or transfer price or cost of such properties, provided, however, that rates shall be compensatory and sufficient to allow proper maintenance of plant and service, and to attract capital investment. The City shall not Ii consider any valuation based upon this i i! franchise or the Grantee' s goodwill and these items of value shall neither be ii amortized as an expense nor shall a return i (� be paid on them. t (d) Procedure. Upon the filing of a petition for a rate change, the City shall have ninety i (90) days to do all things necessary to !, render a written decision on Grantee' s petition, either accepting, rejecting, modifying or deferring the same and reciting the basis of its decision. (e) Rates Effective Upon Failure of Written , Decision To Be Rendered. If the City fails to f render a written decision either accepting, rejecting, modifying or deferring Grantee's }! petition within ninety (90) days of the aj Grantee' s petition pursuant to subsection (b) above, the Grantee shall thereafter be entitled to put its proposed new rates (I into effect. (f) Financial Reports Re uired. The Grantee' s �1 et tion for a rate increase shall include P r but not be limited to, the following financial reports, which shall reflect the operation of the system. i I,! I I� (1) Balance Sheet iI i (2) Income Statement ij (3) Statement of Sources and j jj Application of Funds 1 -9- I (4) Detailed Supporting Schedules of Expenses, Income, Assets and ' other items as may be required it,r (5) Statement of Current and Projected ?! Subscribers and Penetration. The Grantee' s accounting records applicable to the system shall be available for inspection It by the City at all reasonable times. The City shall have access to records of financial transactions for the purpose of verifying rates, direct or indirect costs prorated to the operation. The documents listed above shall jinclude sufficient detail and/or footnotes as t may be necessary to provide the City with the information needed to make accurate deter- minations as to the financial condition and operating results of the system. All finan- cial statements shall be certified, if i requested by the City, as accurate by a cer- tified public accountant or an executive j officer of Grantee. The City shall have access! i to as many prior years of financial informa- l' tion as is reasonable. li ; (g) Schedule of Rates. A Grantee shall maintain and file with the City a complete schedule of all rates including all fees and charges, if i any, for services not subject to approval by the City. (h) Disconnections. There shall be no charge for ' disconnection from the network. However, if f' a subscriber has failed to pay monthly fees due or if a subscriber disconnects for seasonal' periods, the Grantee may require, in addition I; to full payment of any delinquent 'fees, a reasonable fee for reconnection. Refunds to Subscribers. If the Grantee fails j! to provide any service requests by a subscriber`, the Grantee shall, after adequate notification i and being afforded the opportunity to provide the service, promptly refund all deposits or it P Y P advance charges paid for the service in question by said subscriber. �I �i (j) Costs of Rate Regulation to Grantee. All costs to the City arising out of a petition for rate �I change shall be borne by Grantee up to $7,000 , and all additional costs shall be shared I equally by Grantor and Grantee. Costs i shall include, but not be limited to consul- j tant' s fees, attorney' s fees, and administra- tive expenses. The payment of said costs �+ shall be a condition precedent before any rate change shall become effective. Costs shall be reasonable. ! (k) Annual Review. Notwithstanding anything to , the contrary herein, an inflationary increase ,? of up to eight percent (8%) shall be allowed annually. To obtain the increase Grantee !; shall file written notice and explanation I. which shall be no longer than five (5) i typewritten pages to the City within thirty (30) days of the anniversary date of the', award of franchise. The written notice shall state the increase in per cent and real dollars. The increase shall go into effect automatically on the thirtieth (30) day after `i filing. it it -10- i' i i (1) Automatic Pass-Through of CO2yright and LACME Costs. For purposes of establishing rates, copyright expenses and amounts allocated to the local access channel management entity (LACME) shall be an add-on to rates and shall �i be automatically passed through to subscribers. . Amounts allocated to copyright and LACME costs shall be shown separately on the monthly bill to subscribers. (This provision may be limite in the franchise grant) . j 4. 2 Local Access Channel Management. (a) LACME Channel. The Grantee shall provide one !j channel for the use of the Grantor, at no i charge to the Grantor, which shall be used for local education needs, public access needs, governmental needs, or needs whatsoever ±i as determined by Grantor. The channel can be ` used by the Grantor or by a local access channel management entity (LACME) selected by Grantor. At any time the channel is not j' being used by Grantor or the LACME, the Grantee may use it for other programming. (b) Survey, When. If the Grantor decides that a survey is desirable, the Grantee shall fund lr and cooperate with the conduct of one I i; survey of public opinion to determine the I attitude of subscribers with regard to the provision of a local access channel, and to determine whether subscribers wish to incur j 'j the cost of such a service. The survey will ?' be conducted by the Grantor or someone j selected by Grantor. j! (c) LACME Established, Initial Grant. If Grantor concludes that the local access channel is in i the public interest, it shall then notify the i is Grantee of its intent and begin the selection process to designate a local access management i entity. Within thirty (30) days of the �Z selection of the LACME, the Grantee shall i make a one-time payment of $200,000 for use i by the LACME. (d) Payment Equal to 2% of Gross Receipts. Grantee shall pay a sum equal to two percent (2%) ) of its gross receipts , except that the 2% to j the LACME and franchise fees to the Grantor i i shall not be included as gross receipts, to the LACME. Grantee shall make the payments in the amount of $2 ,000 per month. If the amount due the LACME exceeds $24,000 in one I� year., then Grantee shall pay the balance to i' the LACME by February 15 of the following year. Grantee shall make the monthly payments to the LACME no later than the 20th of each month. The amounts charged each subscriber i shall be in addition to all other rates and charges. The amount per subscriber for LACME f; charges shall be separately set out on the li monthly subscriber billing and shall be �i clearly and logically designated as "local access and origination charges. " The 2% LACME I charge shall not be assessed to the subscribers, nor paid to the LACME until the LACME has been selected by Grantor. l (e) Ownership of Equipment and Equipment i Improvements. Any equipment purchased with contribution funds (and/or according to the j! plan) and any subsequent equipment improve- j I; ments shall be in the ownership of the Grantor,) I and managed and controlled by the LACME in trust and to the benefit of Grantor. i; " (f) Functions. The local access channel manage- ment entity (LACME) shall have the following functions: j (1) Responsibility for program production for it and management of the Public Access ! Channel and all other channels as may in the franchise agreement be designated for community-based programming. ( Community channels may include Government and Educational Access channels, as designated in the franchise agreement. !3 j! (2) To assure that the Public Access and Community channels are made available to all residents of the City on a non- discriminatory, first-come, first- served basis. (3) To assure that no censorship or control ;j over program content of the Public Access I� and Community channel (s) exist, except I as is necessary to comply with the !! prohibition of material that is obscene, I! or material that conducts a lottery. (4) To devise, establish and administer all !; rules, regulations and procedures pertaining to the use and scheduling of ` the Public Access and Community channels ,i not in conflict with this ordinance. I I (5) To prepare, in conjunction with the � ! Grantee, such regular or special reports as may be required or desirable. �I (6) To hire and supervise staff. (7) To make all purchases of materials and equipment that may be required. (8) To develop additional sources of funding, II such as foundation or federal or state (; grants, to further community programming. (9) To perform such other functions relevant fa to the Public and Community channel (s) 11, as may be appropriate. (g) Access Rules. The LACME shall complete it set i of rules for the use of the Access and i Community channels which shall be promptly forwarded to the Grantor. The rules shall �i be prepared in consultation with the Grantor, and confirmed by a contractual agreement between the LACME and the Grantor. The rules II shall, at a minimum, provide for: !! (1) Access on a first-come, first-served, non-discriminatory basis for all residents of the City; f (2) Prohibition of advertising for political purposes, as defined by the �i FCC; �1 (3) Prohibition of any presentation of ]lottery information, or obscene or ' indecent material; ! 1 1! -12- 1 I� i I (4) Public inspection of the log of producers, which shall be retained by i the LACME for a period of two (2) i years; (5) Procedures by which individuals or groups ' i who violate any rule may be prevented i from further access to the channel; ' and (S) Free use of such reasonable amounts of channel time, cable-casting facilities, �! and technical support as are provided for in the agreement between the LACME and the Grantor. i 4.3 Other Business Activities of Grantee. During the period of the franchise, neither the Grantee nor any of its i, affiliates, subsidiaries, or parent organizations, officers or j; directors or stockholders holding two percent (2%) or more of i; outstanding stock of the Grantee shall, within the corporate limits of the City or within ten (10) miles in any direction, directly or indirectly engage in the retail sale, renting or repairing of radio or television receivers, nor require any I` subscriber to purchase, rent or lease radios or televisions at any specific business renting, leasing or selling radios or televisions or to utilize the services of any specific TV or radio; service business for the repair or maintenance of the subscriber' si AM receivers, either radio or TV, wheresoever located. This provision does not prohibit the sale or servicing of converters i or addressable devices used to provide cable TV service by Grantees. j j The purpose of this provision is to encourage competition! by discouraging market forces that would tend to place the television repair and sales business with Grantee. i SECTION 5. GENERAL FINANCIAL AND INSURANCE PROVISIONS. 5. 1 Indemnification. (a) Grantee shall, at its sole cost and expense, j fully indemnify, defend and hold harmless the City, its officers, boards, commissions, employees and volunteer workers against any and all claims, suits, actions, liabilities. and judgments for damages (including but not limited to expenses for reasonable legal fees j and disbursements and liabilities assumed by the City in connection therewith) : (1) To persons or property, in any way arising, jout of or through the acts or omissions of ii Grantee, its servants, agents or j! employees, or to which Grantee' s negli- j gence shall in any way contribute; i (2) Arising out of any claim for invasion of the right of privacy, for defamation f of any person, firm or corporation, or l the violation or infringement of any ` copyright, trademark, trade name, ji service mark or patent, or of any other i; right of any person, firm or corpora- tion (excluding claims arising out of or relating to City programming) ; and 1 (3) Failure to comply with any ! ordinance or Federal or State Statute. (b) The foregoing indemnity is conditioned upon the following: The City shall give Grantee 1 prompt notice of the making of any claim or -13- i� i ,i the commencement of any action, suit or other proceeding covered by the provisions of this section. Nothing herein shall be deemed to prevent the City from cooperating with Grantee and participating in the defense of any liti- gation by its own counsel at its sole cost and expense. (c) Grantee shall secure indemnity coverage from an insurance carrier licensed to transact business in the State of Missouri in an amount not less than $1,000, 000. 00. (d) Nothing in these indemnity provisions is intended to apply to any claim brought by any competitor of Grantee in relation to franchise issues. 5. 2 Insurances. (a) Kinds, Amounts. The Grantee shall maintain, , ! throughout the term of the franchise, insur- i ante in amounts at least as follows: t I; (1) Workman' s Compensation Insurance. In j such coverage as may be required by the Ii workman' s compensation insurance and j it safety laws of the State of Missouri and i amendments thereto. j j; (2) Grantee' s Liability. Each occurrence: 500,000. 00; aggregate $1, 000, 000. 00. j; (3) Com rehensive General Liability. Bodily injury each person $500,000. 00 and each occurrence $1, 000,000. 00; property damage each accident $500, 000. 00. i(�4) Comprehensive Automobile Liability. In- cluding cluding non-ownership and hired car coverage as well as owned vehicles with minimum limits as follows: bodily �! injury for each person $300,000. 00 and I; +; each occurrence $1, 000, 000. 00; property damage for each occurrence $100,000. 00. i (b) Copies Furnished. The Grantee shall furnish l the City with copies of such insurance policies( and certificates of insurance. J �i (c) Endorsement. Such insurance policies provided for herein shall name the City, its officers , I! boards, commissions, agents and employees as II additional insureds and shall contain the following endorsement: I; ,! "It is hereby understood and agreed that this insurance policy may not be cancelled by the surety or the intention not to I �( renew be stated by the surety until thirty (30) days after receipt by the City by registered mail of written notice of such J intention to cancel or not renew. " I (d) No Limitation of Liability. The minimum J, amounts set forth herein for such insurance shall not be construed to limit the liability of the Grantee to the City under the franchise issued hereunder to the amounts of such i insurance. !s 5. 3 Franchise Pracessin��C�osts. Grantee shall pay Grantor all reason�e ccosts incu-urre -may Grantor in the ;i -1.4- i i I issuance of the franchise. Costs shall include but not be limited to, all costs of publication of notices, publication of this ordinance, consultant' s and attorneys' fees (excluding any litigation-related expenses) , allocable staff time, and all incidental costs. These costs are separate and in addition to all other costs or expenses set out elsewhere in this ordinance. 5. 4 Adjustment of Established Amounts. The City shall have the power rom t me to time to review the adequacy of the insurance coverage amounts. If because of changed circumstances, such as, but not limited to, inflation, and/or the record of performance of the Grantee, the City determines that any or all of the amounts set are inadequate, the City shall notify the Grantee by sending Grantee a document detailing the proposed changes. Grantee shall have thirty (30) days to reply. After consideration of Grantee's reply, if any, the City shall establish new amounts as it deems reasonable to protect the public welfare and provide for the common good. SECTION 6. DESIGN AND CONSTRUCTION PROVISIONS. 6. 1 Provision of Service. After service hats been established by activating trunk cables for any area, neighborhood or group of homes meeting the criteria of the initial service area and the line extension policy thereof, the Grantee shall provide service to any requesting subscriber or resident thereof within ninety (90) days from the date of request. 6. 2 Undergrounding of Cable. The undergrounding of cables is encouraged. In any event, cables shall be installed underground at Grantee' s cost where existing utilities are already underground. Previously installed aerial cable shall be undergrounded in concert, and on a cost-sharing basis, with other utilities, when such other utilities may convert from aerial' to underground construction. 6. 3 New Development Undergrounding. In cases of new construction or property development where utilities are to be placed underground, the developer or property owner shall give Grantee reasonable notice of such construction or development, and; of the particular date on which open trenching will be available for Grantee' s installation of conduit, pedestals and/or vaults, and laterals to be provided at Grantee' s expense. Grantee shall also provide specifications as needed for trenching. Costs of trenching and easements required to bring service to the development shall be borne by the developer or property owner; except that if Grantee fails to install its conduit, Pedestals and/or vaults, and laterals within five (5) working days; of the date the trenches are available, as designated in the notice given by the developer or property owner, then should the trenches be closed after the five (5) day period, the cost of new trenching is to be borne by Grantee. Notice provided to Grantee by City of a preliminary plat request shall satisfy the require- ment of reasonable notice if sent to the local general manager or i system engineer of Grantee prior to approval of the preliminary plat request. 6. 4 Street Occupancy. (a) Utilization of Existing Poles. Grantee shall utilize existing poles, conduits and other facilities whenever possible, and shall not construct or install any new, different, or additional poles, conduits, or other facilities, whether on public property or on privately- owned property unless necessary. (b) Minimum Interference. All transmission lines, equipment and structures shall be so installed and located as to cause minimum interference with the rights and reasonable convenience of property owners and at all times shall be -15- kept and maintained in a safe, adequate and substantial condition and in good order and repair. The Grantee shall, at all times, employ ordinary care and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injuries, or nuisances to the public. Suitable barricades, flags or other devices shall be used at such times and places as are reasonably required for the safety of all members of the public. Any poles or other fixtures placed in any public way by the Grantee shall be placed in such a manner as not to interfere with the usual travel on such public way. (c) Restoration of Streets. Whenever the Grantee shall disturb the surface of any street, alley, ' (i public highway, or ground for any purpose mentioned herein, it shall restore the same to j! the condition in which it was prior to the opening thereof, and when any opening is made by the Grantee in any hard surface pavement in any street, alley or public highway the (� Grantee shall promptly refill the opening and restore the pavement. The Grantor may refill t and/or repave in case of neglect of the Granteei The cost thereof, including the cost of in- ;1 spection and supervision, shall be paid by the Grantee. All excavations made by the Grantee in the streets, alleys and public highways shall be properly safeguarded for the preven- tion of accidents. The work hereby required shall be done in strict compliance with the rules, regulations and ordinances of the Grantor as now or hereafter provided. i (d) Removal of Facilities. Whenever, in case of j fire or other disaster, it becomes necessary in the judgment of the Chief of the Police or Fire Department to remove any of the Grantee 's j facilities, no charge shall be made by the t. I Grantee against the City for restoration and repair, unless such acts amount to gross { i� negligence by the City. H (e) Tree Trimming. Grantee shall have the authority to trim trees on public property at Alh its own expense as may be necessary to protect its wire and facilities, subject to the super- (! vision and direction of the City. Trimming (� of trees on private property shall require written consent of the property owner. (f_) Improvements by City. The Grantee at its i expense shall protect, support, temporarily disconnect, relocate, or remove any property of Grantee when, in the opinion of the City, the same is required by reason of traffic �i conditions; public safety; street vacation; , freeway or street construction; change or establishment of street grade; installation of �! sewers, drains, waterpipes, power lines, signal ?i line, transportation facilities, tracks or any other types of structures; improvements j' by governmental agencies, whether acting in a j governmental or proprietary capacity or any other structure or public improvement, including but not limited to movement of buildings, urban renewal and redevelopment, and any general program under which the City I shall undertake to cause all such properties i -16- f: � to be located beneath the surface of the ground. The Grantee shall in all cases have the privilege, subject to the corresponding obligations, to abandon any property of Grantee jin place. Nothing hereunder shall be deemed a taking of the property of Grantee and Grantee i' shall be entitled to no surcharge by reason i� of anything hereunder. j (g) Payment Upon Grantee' s Failure. Upon failure of Grantee to commence, pursue or complete any work required by law or by the provisions i of this ordinance to be done in any street, within the time prescribed and to the satis- faction of the City, the City may, at its option, cause such work to be done and the �I Grantee shall pay to the City the cost thereof in the itemized amounts reported by the City to Grantee within thirty (30) days after ii receipt of such itemized report. (h) Paving Cuts. The Grantee shall make no paving i� cuts or curb cuts unless absolutely necessary, i �! and only after written permission has been given by the City. ! I� (i) Installation In Conduit. The Grantee shall ! !� install in conduit all cable passing under i any public roadway. (j) Reservations of Street Rights. Nothing in the �{ franchise shall be construed to prevent the j !; Grantor from constructing sewers, grading, paving, repairing and/or altering any street, alley or public highway, or laying down, repairing or removing water mains or construct-1 fj ing or establishing any other public work. All such work shall be done, insofar as practicable, in such manner as not to obstruct, injure or prevent the free use and operation of the poles, wires, conduits, conductors , pipes or �I appurtenances of the Grantee. If any such property of the Grantee herein shall interfere (i with the construction or repair of any street or public improvement, whether it be construc- tion, repair or removal of a sewer or water ' main, the improvement of a street or any other public improvement, all such poles, wires, �? conduits or other appliances and facilities i !� shall be removed or replaced in such manner as shall be directed by the Grantor so that the j same shall not interfere with the said public �{ work of the Grantor, and such removal or II replacement shall be at the expense of the � Grantee herein. 1� (k) Street Vacation or Abandonment. In the event ! any street, alley, public highway or portion j thereof used by the Grantee shall be vacated 4 by the Grantor, or the use thereof discontinued by the Grantee, during the term of this franchise, the Grantee shall forthwith remove his facilities therefrom unless specifically i permitted to continue the same, and on the removal thereof restore, repair or reconstruct { the street area where such removal has occurred!, and place the street area where such removal {) has occurred in such condition as may be required by the Grantor. Grantor will exert best efforts to minimize relocation of facilities upon vacation or abandonment of streets. -17- f is I I it (1) Movement of Facilities. In the event it is j necessary temporarily to move or remove any of the Grantee's wires, cables, poles, or other r? facilities placed pursuant to the franchise, i in order lawfully to move a large object, i vehicle, building or other structure over the j� streets, alleys or highways of the Grantor, Grantee upon reasonable notice shall move, at the expense of the person, except for the City, {� requesting the temporary removal, such facili- ties as may be required to facilitate such movement. i 6. 5 Construction and Technical Standards. (a) Construction Standards. (1) Compliance with Electrical Codes. All installation of electronic equipment shall I be of a permanent nature, durable and installed in accordance with the provisions of the National Electrical Code as amended. I� (2) Construction Standards and Requirements. All of the Grantee' s plant and equipment, including but not limited to the antenna ! site, head-end and distribution system, towers, house connections, structures, poles, wire, cable, coaxial cable, i� fixtures and appurtenances shall be installed, located, erected, constructed, reconstructed, replaced, removed, repaired; maintained and operated in accordance with good engineering practices, performed by i experienced maintenance and construction i1 personnel so as not to endanger or inter- fere with improvements the municipality may deem proper to make, or to interfere iI in any manner with the rights of any II property owner, or to unnecessarily hinder] or obstruct pedestrian or vehicular �+ traffic on municipal properties. (3) Safety, Nuisance Requirements. The Grantee shall at all times employ ordinary i care and shall install and maintain in use commonly accepted methods and devices preventing failures and accidents which are likely to cause damage, injury or nuisance to the public. ! (b) Connection to System. In addition to existing conn ons to government and educational i+ buildings, Grantee shall provide one cable drop to any government or school building !� which the Grantor requests, for the purpose of providing basic service. No installation or monthly charge will be made for this service. If more than one drop is requested, it shall be provided at the cost of materials, and at no monthly charge. The system shall be capable of providing live broadcasts from any City Hall of Grantor, as designated by Grantor, at the time the LACME, if established,! becomes operative. i I, f' z � -18- I j i! i 6. 6 Line Extension Policy. (a) Newly Annexed Areas. Service to occupied bu ngs n platted subdivisions containing thirty (30) or more occupied non-commercial buildings per cable plant mile in newly annexed areas shall be provided within six (6) months of annexation. (b) Areas Not Meeting Line Extension Policy. In areas not meeting the line extension policy of thirty (30) homes per cable mile, service shall be provided according to the following formula: Base cost of construction per mile divided by the number of subscribers per mile, minus ;i a sum equal to base construction costs divided by 30 homes per mile equals the cost to individual subscribers for the extension of service. For Example: j' $7500 (presumed base cost of j construction) 500 250 sum equal to base construction cost divided by 30 homes per mile equals 250 cost to subscribers i, 6. 7 Emergency Override. Grantee shall provide an ' emergency audio override capability to permit Grantor to interrupt, " and cablecast an audio message on all channels (technically ' feasible at time of installation) , simultaneously in the event ', of disaster or public emergency. 6. 8 standby Power. Grantee shall provide standby ;; power for emergency operation of the cable television system for ; a period of at least four (4) hours in the event primary commercial power is interrupted. ' SECTION 7. SERVICE PROVISIONS. 7. 1 Local Ori gination/Government Access/Education ` , Access/Communit Access. The Grantee shall provide one channel. ;Ifor t e use of the Grantor at no charge to the Grantor, which i i; channel shall be used for local education needs, public access '! needs, governmental needs, or needs whatsoever as determined by .; Grantor. The channel so provided may be utilized by Grantee in any manner it deems appropriate until such time as the channel is '; needed by Grantor or Grantor' s designee. However, at such time ;! Grantee may continue to utilize this channel at all such times as there is no programming by Grantor or its designee. 7. 2 New Develo ments Amendment of Franchise. It shall !; be the policy of the City to liberally amend a r� a`nc'hise, upon ;! application of the Grantee, when necessary to enable the Grantee ' to take advantage of any developments in the field of transmission. ' of, television and radio signals which will afford it an oppor- ; tunity more effectively, efficiently or economically to serve its ,' customers. This section shall not be construed to require the ' City to make any amendment or to prohibit it from authorizing improvement or redesign on a system without application. 7. 3 Protection of Subscriber' s Privacy. (a) Use of Data from Subscriber. A Grantee shall not initiate or use any form, procedure or -19- i device for procuring information or data from subscribers' terminals by use of the network, without prior notification to and approval from i; each subscriber so affected, other than to determine whether connections are functioning properly, whether there are unauthorized connections to the system, and other similar and normal business purposes. The purpose of this provision is to prohibit electronic spying and subscriber monitoring. (b) Subscriber Lists. The Grantee shall not, with- , out prior valid authorization from each sub- scriber so affected, provide any list desig- nating subscribers' names and addresses to any party unrelated to Grantee except as an i incident of normal business operations such as j bill collection. The purpose of this provisions is to prevent Grantee from commercially exploiting its customers. (c) Subscriber Transmissions. Grantee shall not �! permit the installation of any special terminal ii equipment in any subscriber's premises that ! will permit transmission from subscriber's f; premises of two-way services utilizing audio, visual or digital signals without first obtaining written permission of the subscriber. ! (d) Audit Unimpeded. No provision of this Section shall be construed to impede or prevent any audit authorized or required by this Chapter. I 7. 4 obscenity/Pornography. No Grantee when en a ed in lorigination cablecasting as defined by 47 CFR 5 (2) , and this i; ordinance in its basic services, in its premium services or in ;! any other service, shall transmit or permit the transmission of ! material that is obscene. i SECTION 8. OPERATION AND MAINTENANCE. ! 8. 1 Open Hooks and Records. The Grantee shall maintain Ilan office within the franchise territory. The Grantor shall !Ihave the right to inspect at any time during normal business ; hours, all books, records, maps, plans, income tax returns , ' financial statements, service complaint logs, performance test 11results and other like materials of the Grantee which relate to !! the operation of the franchise. Access to the aforementioned irecords shall not be denied by the Grantee on the basis that said j ! records contain "proprietary" information, although information ! 1; which is "proprietary" shall be treated as confidential by Grantor if Grantee specifically requests. 1 8. 2 Reports Required. The Grantee shall file with the 1 �lCity, on request and within fifteen (15) days, any of the ,I following: �j (a) FCC Form 325. An "Annual Report of Cable `! Television Systems" (FCC Form 325, Schedules ! 1, 2, 3 and 4) . (b) Facilities Report. An annual total facilities report setting forth the physical miles of �i plant constructed, rebuilt or in operation during the fiscal year. Such report shall also contain any revisions to the system "as ? i; built" maps filed with the City. j� (c) Insurance Policies. All policies of insurance or a certified copy thereof and written notice of payment of required premium. (d) Conduct of Business Rules. All written rules, �f -20- �i � 1 i i ,i I; regulations, terms and conditions relating to consumers which it has adopted for the conduct i of its business. (e) Financial Report. An annual and certified (by j an officer of the corporation) financial report for the previous calendar year, includ- ing gross revenues from all sources, gross subscriber revenues from each category of service and net income for the Jefferson City 1 franchise area and a copy of the annual report for the parent company. An audited report shall be provided upon request. 8. 3 Information Required. ' 1� (a) Maintenance of Information. The Grantee shall at all times maintain a record of all (f complaints received and interruptions or degradation of service experienced for the preceding three (3) years. (b) Filing. When not otherwise prescribed herein, !; all matters required to be filed with the City shall be filed with the City Clerk. !i (c) Other Records. The City may impose reasonable jt requests for additional information, records }! and documents from time to time. i; i 8. 4 Maintenance and Complaints. 1 Ii (a) Business Offices. The Grantee shall maintain appropriate business offices in the franchise f territory which shall be open during all usual business hours, have a publicly listed local telephone and be so operated to receive i� subscriber complaints and requests for repairs i or adjustments on a twenty-four (24) hour basis. A written log shall be maintained listing all complaints and their disposition. (b) Interruptions. The Grantee shall render effi- �; cient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions ji insofar as possible, shall be preceded by a i notice and shall occur during periods of minimum use of the system. A written log ! shall be maintained for all service interrup- tions. (c) Repair Force. The Grantee shall maintain a i repair force of technicians which shall respond to subscriber complaints or requests I� for service within twenty-four (24) hours (` after receipt of the complaint or request. No charge shall be made to the subscriber for this service. i� (d) Information to Subscribers. The Grantee shall ii furnish each subscriber at the time service is f' installed, written instructions that clearly �! set forth procedures, furnish information i concerning the procedures for making inquiries j or complaints, including the name, address and local telephone number of the employee or employees or agent to whom such inquiries or complaints are to be addressed. The City Administrator shall designate one member of the City' s staff to be responsible for i� +i receivin g and communicating complaints to 1 j -21- !� I f �1 1 Grantee. If a subscriber wishes to contact a representative of the Grantor about cable television, the Grantee will refer the subscriber to the designated member of the staff. Grantee shall work cooperatively with the City staff member and shall take all reasonable steps to promptly respond to complaints. The Grantee shall promptly advise ® the City staff member as to the disposition of each complaint referred to Grantee. 8. 5 Rights of Individuals. (a) Equal Rights. Grantee shall not deny service, deny access, or otherwise discriminate against subscribers, channel users, or citizens , on the basis of race, color, religion, national origin, age or sex. Grantee shall comply at all times with all other applicable federal, state and local laws and regulations, and all executive and administrative orders relating to non-discrimination which are hereby incorporated and made part of this ordinance j by reference. { (b) Equal Employment. Grantee shall strictly adhere to the equal employment opportunity requirements of the FCC, and other federal, ?' state and local laws and regulations, as Aft amended from time to time. (c) Right of Privacy in Transmission. No signals of a Class IV cable communications channel �i shall be transmitted from a subscriber terminal] for purposes of monitoring individual viewing patterns or practices without the express written permission of the subscriber. The request for such permission shall be contained ji in a separate document with a prominent statement that the subscriber is authorizing the permission in full knowledge of its provision. Such written permission shall be 'i for a limited period of time not to exceed one (1) year, which shall be renewable at the option of the subscriber. No penalty shall be invoked for a subscriber' s failure to provide or renew such an authorization. The authori- zation shall be revocable at any time by the �! subscriber without penalty of any kind what- soever. Such authorization is required for {! each type of classification of Class IV cable E television activity planned; provided, however, ! that the Grantee shall be entitled to conduct systemwide or individually addressed "sweeps" for the purpose of verifying system integrity, controlling return-path transmission, or !� billing for pay services. jj (d) Right of Privacy in Subscription. The Grantee, or any of its agents or employees, shall n ot without the specific written authorization of the subscriber involved, sell or otherwise make available to any party: I { (1) Lists of the names and addresses of such subscribers, or (2) Any lists which identify the viewing �i habits of individual subscribers. 8. 6 Grantee Rules and Regulations. The Grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be -22- ij reasonably necessary to enable the Grantee to exercise its rights and perform its obligations under said franchise, and to : assure an uninterrupted service to each and all of its customers. Provided, however, that such rules, regulations, terms and ' conditions shall not be in conflict with the provisions hereof or applicable local, state and federal laws, rules and regula- tions. Such rules, regulations, terms and conditions shall be ' submitted to the City for its review and City approval is required prior to their becoming effective. SECTION 9. MISCELLANEOUS PROVISIONS. 9.1 Compliance with City, State and Federal Laws. Not- withstanding any other provisions of this ordinance to the contrary, the Grantee shall at all times comply with all laws and regulations of the City, state and federal government or any administrative agencies thereof. Provided, however, if any such state or federal law or regulation shall require the Grantee to ' perform any service, or shall permit the Grantee to perform any service, or shall prohibit the Grantee from performing any ; service in conflict with the terms of this .franchise or of any law or regulation of the City, then within a reasonable time follow- :' ing knowledge thereof, the Grantee shall notify the City of the . point of conflict believed to exist between such regulation or Flaw and the laws or regulations of the City or this franchise. i 9.2 Notices. All notices from Grantee to the City pursuant to this franchise shall be to the City Clerk. Grantee ; shall maintain with the City, throughout the term of this franchise, an address for service of notices by mail. 9. 3 Captions. The captions to sections throughout this ordinance are intended solely to facilitate reading and ; reference to the sections and provisions of this ordinance. Such captions shall not affect the meaning or interpretation of this ' ordinance. 9. 4 Non-enforcement by the Grantor. The Grantee shall ; not be relieved of its obligation to comply with any of the ; provisions of this ordinance or said franchise by reason of any single or repeated failure of the Grantor to enforce compliance. �i 9. 5 Liquidated Damages Chargeable Against Grantee. ;! Upon a finding by the City, after reasonable notice to the ,: Grantee, that the Grantee has failed to timely comply with any :Irequirernents concerning electronic rebuild to at least twenty- ;' one (21) channels, and that such failure was not due to conditions '' beyond Grantee' s control, the City shall charge Grantee Five Hundred Dollars ($500. 00) per day for each day o�, part thereof, the deficiency continues. Liquidated damages so charged are not din lieu of other damages that might be recoverable from Grantee. ;; Any liquidated damages shall not begin to accrue until sixty ;x (60) days after written demand for compliance with requirements. !; SECTION 10. GUARANTEE OF PARENT (S) . .i 10. 1 Obligation. Any franchise given to a subsidiary of; " a corporation., either wholly owned or controlled, shall be '! guaranteed by the parent or controlling corporation. Said .: guarantee by the parent or controlling corporation shall ;; guarantee faithful performance of all the terms of said ;, franchise, and the payment of all damages, costs and expenses which by virtue of the franchise might become recoverable by the City from the Grantee. 10. 2 Term of Guarantee. This guarantee shall continue throughout the term of the franchise; and the Grantee (the said parent or controlling corporation) shall not be released of its '- obligation so long as any claim of the City against the Grantee arising out of the foregoing franchise is not settled or discharged, in .full. 0 -23- A • • 10. 3 Benefit. The guarantee shall inure to the benefit of the City or .its assigns, and shall be binding upon the ' Grantee and its successor; or assigns. SECTION 11. ACCEPTANCE. Any ordinance awarding a '' franchise to a specific company and this ordinance shall be ,; accepted by the Grantee by written instrument, executed and ; acknowledged by it as a deed is required to be, and .filed with the' ; City Clerk within fifteen (15) days after notification of the ; passage of the ordinance awarding a franchise. Such written ' instrument shall state and express the acceptance of this 'iordinance and the ordinance awarding a franchise and their terms, i ; conditions and provisions; and said Grantee shall agree in said ' ';' instrument to abide by, to observe and perform same, and declare ithat statements and recitals therein are correct and that it has Ijmade and does make the agreements, statements and admissions in !: the ordinances recited to have been or to be made. �; SECTION C. SEVERABILITY. If any section, subsection, sentence, 'iclause, phrase or portion of this ordinance is for any reason i ,iiheld invalid or unconstitutional by any court of competent i! jurisdiction, such portion shall be deemed a separate, distinct ;; and independent provision and such holding shall not affect the Il, validit.y of the remaining portions hereof. ± D. EFFECTIVE DATE. This ordinance shall be in full j 1Iforce and effect after its passage and approval. .r fif � I O Passed p 2 Approved c/k_�,a l- Ii f i� P idero of CounckA or iIATTEST: Ij i I I II I I� City A lerk i I I f; II� � I I ii �I 1 i -24- j; �