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HomeMy Public PortalAboutCable TV franchise agreement Received: 4/29/04 8.14; - >US Cable Corp.; #936; Page 2 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22 :13 #049 P.002/039 CABLE TELEVISION FRANCHISE ORDINANCE FOR THE CITY OF TYBEE ISLAND, GEORGIA AND US CABLE OF COASTAL-TEXAS, L., . Received: 4/29/04 8:14; - >US Cable Corp.; #936; Page 3 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:13 #049 P.003/039 - I TABLE OF CONTENTS SECTION 1. SHORT TITLE AND DEFINITIONS 1 1. Short Title 1 2. Definitions 1 SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS 5 1. Grant of Franchise 5 2. Grant of Nonexclusive Authority 5 3. Lease or Assignment Prohibited 5 4. Franchise Term - 5 5. Previous Franchises. 6 6. Compliance with Applicable Laws, Resolutions and Ordinances 6 7. Rules of Grantee 6 8. Territorial Area Involved 6 9. Written Notice 7 10. Ownership of Grantee 7 SECTION 3. CONSTRUCTION STANDARDS 7 1. Registration, Permits Construction Codes and Cooperation 7 2. Use of existing poles or conduits 8 3. Minimum Interference 8 4. Disturbance or damage 8 5. Temporary Relocation 9 6. Emergency 9 7. Tree Trimming 9' 8. Protection of facilities 9. Installation records 10 10. Locating facilities 10 11. City's rights 10 12. Facilities in conflict 10 13. Relocation delays 11 14. Interference with City Facilities 11 15. Interference with Utility Facilities 11 16. Collocation 11 17. Safety Requirements 11 SECTION 4. DESIGN PROVISIONS 12 1. System Upgrade: Minimum Channel Capacity 12 2. Construction 12 3. Interruption of Service 12 4. Emergency Alert Capability 12 5. Technical Standards 12 6. Special Testing 12 7. FCC Reports 13 8. Interconnection 13 9. Annexation 13 " Received: 4/29/04 8:14; -›-US Cable Corp_; #936; Page 4 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:13 4049 P.004/039 10. Line Extension 13 11. Lockout Device 14 SECTION 5. SERVICE PROVISIONS 14 1. Regulation of Service Rates 14 2. Non - Standard Installations 14 3. Sales Procedures 15 4. Consumer Protection and Service Standards 15 5. Subscriber Contracts 18 6. Refund Policy 18. 7. Late Fees '. 18 SECTION 6. ACCESS CHANNELS(S) PROVISIONS 18 1. Grantee Support for Access Channels 18 2. Compliance with Federal Law 18 SECTION 7. OPERATION AND ADMINISTRATION PROVISIONS 19 1. Administration of Franchise 19 2. Delegated- Authority 19 3. Franchise Fee 19 4. Not Franchise Fees 19 5. Access to Records 20 7. Periodic Evaluation 20 SECTION 8. GENERAL FINANCIAL AND INSURANCE PROVISIONS 21 1. Letter of Credit 21 2. Procedure for Remedying Franchise Violations 22 3. Liability Insurance 23 4. Indemnification 24 5. Grantee's Insurance 25 SECTION 9. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE25 • 1. City's Right to Revoke 25 2. Procedures for Revocation 25 3. Abandonment of Service 26 4. Removal After Abandonment, Termination or Forfeiture 26 5. Sale or Transfer of Franchise 26 SECTION 10. PROTECTION OF INDIVIDUAL RIGHTS 27 1. Discriminatory Practices Prohibited 27 2. Subscriber Privacy 27 SECTION 11. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS 27 1. Unauthorized Connections or Modifications Prohibited 27 2. Removal or Destruction Prohibited 27 3. Penalty 28 SECTION 12. MISCELLANEOUS PROVISIONS 28 ii Received: 4/29/04 8:14; -US Cable Corp.; #936; Page 5 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:14 #049 P.005/039 1. Franchise Renewal 28 2. Work Performed by Others 28. 3. Amendment of Franchise Ordinance 28 4. Compliance with Federal, State and Local Laws 28 5. Nonenforcement by City 29 6. Rights Cumulative 29 7. Grantee Acknowledgment of Validity of Franchise 29 8. Force Majeure 29 SECTION 13. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS 29 1. Publication, Effective Date 29 2. Acceptance 29 EXHIBIT A OWNERSHIP A-1 EXHIBIT B GRANTEE COMMITMENT TO GOVERNMENT ACCESS FACILITIES AND EQUIPMENT B-1 EXHIBIT C SERVICE TO PUBLIC BUILDINGS C-1 EXHIBIT D FRANCHISE FEE PAYMENT WORKSHEET E-1 Received: 4/29/04 8:15; - >US Cable Corp.; #936; Page 6 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:14 #049 P.006/039 ORDINANCE NO. AN ORDINANCE GRANTING A FRANCHISE TO US CABLE OF COASTAL - 'TEXAS; L.P., TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE SYSTEM N THE CITY OF TYBEE ISLAND, GEORGIA SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM AND THE PUBLIC RIGHTS -OF -WAY AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN; The City Council of the City of Tybee Island, Georgia ordains: STATEMENT OF INTENT AND PURPOSE City intends, by the adoption of this Franchise, to bring about the continued operation and further development of a Cable System. Such development can contribute significantly to the coirununication needs and desires of the residents and citizens of City and the public generally. Further, City may achieve better utilization and improvement of public services and enhanced economic development with the development and operation of a Cable System. Adoption of this Franchise is, in the judgment of the City Council, in the best interests of City and its residents. FINDINGS In the review of the request for renewal by Grantee and negotiations related thereto, and as a result of a public hearing, the City Council makes the following findings: 1. Grantee's technical ability, financial condition, legal qualifications, and character were considered and approved in a full public proceeding after due notice and a reasonable opportunity to be heard; 2. Grantee's plans for constructing and operating the Cable System were considered and found adequate and feasible in a full public proceeding after due notice and a reasonable opportunity to be heard; 3. The Franchise granted to Grantee by City complies with the existing applicable state statutes, federal Iaws and regulations; and 4. The Franchise granted to Grantee is nonexclusive. SECTION 1. SHORT TITLE AND DEFINITIONS 1. Short Title. This Franchise Ordinance shall be known and cited as the Cable Television Franchise Ordinance. 2. Definitions. For the purposes of this Franchise, the following terms, phrases, words, and their derivations shall have the meaning given herein. When not inconsistent with the context, words in the singular number include the plural number, and words in the plural number include the singular number. The word "shall" is always mandatory and not merely directory. The word "may" is directory and discretionary and not mandatory. Words not defined shall be given their common and ordinary meaning. 1 Received: 4/29/04 8:15; -SUS Cable Corp.; #936; Page 7 From CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22 :14 #049 P.007/039 a. "Applicable Laws" means state, local or federal law. b. "Basic Cable Service" means any Service tier which includes the lawful retransmission of local television broadcast signals and any public, educational, and governmental access programming required by the Franchise to be carried on the basic tier. Basic Cable Service as defined herein shall not be inconsistent with 47 U.S.C. § 543(b)(7). c. "Cable Service" or "Service" means (A) the one -way transmission to Subscribers of (i) Video Programming or (ii) Other Programming Service, and (B) Subscriber interaction, if any, which is required for the selection or use of such Video Programming or Other Programming Service. Cable. Service as defined herein shall not be inconsistent with the definition set forth in 47 U.S.C. § 522(6). d. "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 provide Cable Service which includes Video Programming and which is provided to multiple Subscribers within a community, but such term does not include: (1) a facility that serves only to retransmit the television signals of one (1) or more television broadcast stations; (2) a facility that serves Subscribers without using any public Right -of -Way; (3) a facility of common carrier which is subject, in whole or in part, to the provisions of 47 U.S.C. § 201 et seq., except that such facility shall be considered a Cable System (other than for purposes of 47 U.S.C. § 541(c) to the extent such facility is used in the transmission of Video Programming directly to Subscribers, unless the extent of such use is solely to provide interactive on -demand services; (4) an open video system that complies with 47 U.S.C. § 573; or (5) any facilities of any electric utility used solely for operating its electric utility systems. e. "Channel" or "Cable Channel" means portion of the electromagnetic frequency spectrum which is used in a Cable System and which is capable of delivering a television channel. f. "City" means City of Tybee Island, a municipal corporation, in the State of Georgia, acting by and through its City Council, or its lawfully appointed designee. 2 Received: 4/29/04 8:15; ->US Cable Corp.; #936; Page 8 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:14 #049 P.008/039 g. "City Council" means the governing body of the City of Tybee Island, Georgia. h. "Converter" means an electronic device which converts signals to a frequency acceptable to a television receiver of a Subscriber and by an appropriate selector permits a Subscriber to view all Subscriber signals included in the Service. i. "Drop" means the cable that connects the ground block on the Subscriber's residence or institution to the nearest feeder cable of the System. j. "FCC" means the Federal Communications Commission and any legally appointed, designated or elected agent or successor. k. "Franchise" or "Cable Franchise" means this franchise ordinance and the regulatory and contractual relationship established hereby. R. "Franchise Fee" includes any tax, fee, or assessment of any kind imposed by the City or other governmental entity on Grantee or Subscriber, or both, solely because of their status as such. It does not include any tax, fee, or assessment of general applicability (including any such tax, fee, or assessment imposed on both utilities and cable operators or their services but not including a tax, fee, or assessment which is unduly discriminatory against cable operators or cable Subscribers); capital costs which are required by the Franchise to be incurred by Grantee for public, educational, or governmental access facilities; requirements or charges incidental to the awarding or enforcing of the Franchise, including payments for bonds, security funds, letters of credit, insurance, indemnification, penalties, or liquidated damages; or any fee imposed under Title 17. in. "Grantee" is US Cable of Coastal-Texas, L.P., its lawful successors, transferees or assignees. n. "Gross Revenue" means all revenue derived directly or indirectly by Grantee, its affiliates, subsidiaries, or parent from the operation of its Cable System to provide Cable Service within City including, but not limited to, all Cable Service fees, , Franchise Fees, late fees, Installation and reconnection fees, upgrade and downgrade fees, advertising revenue (consistent with GAAP), Converter rental fees and Lockout Device fees. The term Gross Revenue shall not include any taxes on services furnished by Grantee imposed by any municipality, state, or other governmental unit and collected by Grantee for such governmental unit. o. "Installation" means the connection of the Cable System from feeder cable to the point of connection including Standard Installations and custom Installations with the Subscriber Converter or other terminal equipment. p. "Lockout Device" means an optional mechanical or electrical accessory to a Subscriber's terminal which inhibits the viewing of a certain program, certain Channel, or certain Channels provided by way of the Cable System. 3 Recexved: 4/29/04 8:16; ->US Cable Corp.; #936; Page 9 • From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:15 #049 P.009/039" q. "Normal Business Hours" means those hours during which most similar businesses in City are open to serve customers. In all cases, "No !Anal Business Hours" must include some evening hours, at least one (1) night per week and/or some weekend hours. r. "Nomial Operating Conditions" means those Service conditions which are within the control of Grantee. Those conditions which are not within the control of Grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the control of Grantee include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the Cable System. s. "Other Programming Service" means information that a cable operator makes available to all Subscribers generally. t. "Pay Television" means the delivery over the System of pay-per-channel or pay- per-program audio-visual signals to Subscribers for a fee or charge, in addition to the charge for Basic Cable Service or Cable Programming Services. u. "Person" is any Person, firm, partnership, association, corporation, company, limited liability entity or other legal entity. v. "Right-of-Way" or "Rights-of-Way" means the area on, below, or above any real property in City in which the City has an interest including, but not limited to any street, road, highway, alley, sidewalk, parkway, park, skyway, or any other place, area, or real property owned by or under the control of City, including other dedicated Rights-of-Way for travel purposes and utility easements. w. "Right-of-Way Ordinance" means any ordinance codifying requirements regarding regulation, management and use of Rights-of-Way in City, including registration and permitting requirements. x. "Service Area" or "Franchise Area" means the entire geographic area within the City as it is now constituted or may in the future be constituted. y. "Service Interruption" means the loss of picture or sound on one or more Cable Channels. z. "Standard Installation" means any residential Installation which can be completed using a Drop of one hundred fifty (150) feet or less. aa. "Subscriber" means any Person who law receives Cable Service via the System. In the case of multiple office buildings or multiple dwelling units, the "Subscriber" means the lessee, tenant or occupant. 4 Received: 4/29/04 8:16; ->U$ Cable Corp.; #936; Page 10 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:15 #049 P.010/039 bb. "Video Programming" means programming provided by, or generally considered comparable to programming provided by, a television broadcast station. SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS 1. Grant of Franchise. This Franchise is granted pursuant to the terms and conditions contained herein. 2. Grant of Nonexclusive Authority. a. The Grantee shall have the right and privilege, subject to the permitting and other lawf.: requirements of City to operate, construct, erect, and maintin, in, upon, along, across, above, over and under the Rights-of-Way in City a Cable System. The System constructed and maintained by Grantee or its agents shall not interfere with other uses of the Rights-of-Way. Grantee shall make use of existing poles and other above and below ground facilities available to Grantee to the extent it is technically and economically feasible to do so. b. Notwithstanding the above grant to use Rights-of-Way, no Right-of-Way shall be used by Grantee if City determines that such use is inconsistent with the terms, conditions, or provisions by which such Right-of-Way was created or dedicated, or with the present use of the Right-of-Way. c. This Franchise shall be nonexclusive, and City reserves the right to grant use of said Rights-of-Way to any Person at any time during the period of this Franchise for the provision of Cable Service. After the effective date hereof and so long as applicable law allows, the City will not grant a franchise to an operator of a cable system required by law to obtain a franchise, or amend the franchises existing on the date hereof, if such franchise or amendment contains material terms that, when taken in their entirety, are more favorable or less burdensome than the material terms set forth in this Agreement. 3. Lease or Assignment Prohibited. No Person may lease Grantee's System for the purpose of providing Cable Service until and unless such Person shall have first obtained and shall currently hold a valid franchise or other lawful authorization from the City containing substantially similar burdens and obligations to this Franchise. Any assignment of rights under this Franchise shall be subject to and in accordance with the requirements of Section 9.5 of this Franchise. This provision shall not prevent Grantee from complying with any commercial leased access requirements or any other provisions of Applicable Law. 4. Franchise Term. This Franchise shall be in effect for a period of seven (7) years from the Effective Date, unless sooner extended, renewed, revoked or terminated as herein provided. The Franchise shall be extended an additional three (3) years if the Grantee upgrades to a 550 MHz System capable of providing a minimum of eighty (80) activated 5 Received: 4/29/04 8:16; - >US Cable Corp.; #936; Page 11 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22 :16 #049 P.011/039 video Channels or its equivalent in a combination of analog and digital Video Programming Services on the Cable System by December 31, 2005. 5. Previous Franchises. Upon acceptance by Grantee as required by Section 13 herein, this Franchise shall supersede and replace any previous ordinance or other authorization granting a franchise to Grantee. 6. Compliance with Applicable Laws, Resolutions and Ordinances. a. The teiuis of this Franchise shall define the contractual rights and obligations of Grantee with respect to the provision of Cable Service and operation of the System in their entirety. However, Grantee shall at all times during the term of this Franchise be subject to all lawful exercise of the police power of City. This Franchise may also be modified or amended with the written consent of City and Grantee as provided in Section 12.3 herein: b. Grantee shall be subject to the terms of any City ordinance or regulation of general applicability which addresses usage of the Rights -of -Way within City adopted pursuant to a valid exercise of City's police powers. c. In the event Grantee cannot determine how to comply with any Right -of -Way requirement of City, whether pursuant to this Franchise or other requirement, Grantee shall immediately provide written notice of such question, including Grantee's proposed interpretation, to City, in accordance with Section 2.9. City shall provide a written response within five (5) days of receipt indicating how the requirements cited by Grantee apply or requesting additional time for review not to exceed fourteen (14) days from receipt. Grantee may proceed in accordance with its proposed interpretation in the event a written response or request for additional time is not received within seven (7) days of mailing or delivering such written question. City will use all reasonable best efforts to ensure that no Right - of -Way ordinance provisions unduly slow Grantee's System rebuild unless necessary to address health safety and welfare concerns. 7. Rules of Grantee. Grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable said Grantee to exercise its rights and perform its obligations under this Franchise and to assure uninterrupted Service to each and all of its Subscribers; provided that such rules, regulations, terms and conditions shall not be in conflict with applicable laws. . 8. Territorial Area Involved. This Franchise is granted for the corporate boundaries of City, as they exist from time to time. Access to Cable Service shall not be denied to any group of potential residential cable Subscribers because of the income of the residents of the area in which such group resides. 6 Received: 4/29/04 8:17; -SUS Cable Corp.; #936; Page 12 ' From CITY OF TYBEE / ZONING 912 786 9539 _ 04/29/2004 22:16 #049 P.012/039 9. Written Notice. All notices, reports, or demands required to be given in writing under this Franchise shall be deemed to be given when delivered personally to any officer of Grantee or City's manager of this Franchise or forty -eight (48) hours after it is deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon, addressed to the party to whom notice is being given, as follows: If to City: City Manager 403 Butler Street Tybee Island, GA 31328 -2749 If to Grantee: US Cable of Coastal- Texas, L.P. Attn: Vice President Operations 28 West Grand Avenue Montvale, NJ 07645 Such addresses may be changed by either party upon notice to the other party given as provided in this section. 10. Ownership of Grantee. Grantee represents and warrants to City that the corporate structure as set forth in Exhibit A hereto is true and accurate. SECTION 3. CONSTRUCTION STANDARDS 1. Registration, Permits, Construction Codes, and Cooperation. a. Grantee shall comply with the construction requirements of local, state and federal laws. b. Grantee agrees to obtain a permit as required by City prior to removing, abandoning, relocating or reconstructing, if necessary, any portion of its facilities, other than for the normal routine installation of Drop(s) and maintenance activities. Notwithstanding the foregoing, City understands and acknowledges there may be instances when Grantee is required to make significant repairs -that • are of an emergency nature. Permits for emergency work, if necessary, shall_ be applied for as soon as possible, but in no event later than (5) business days after the emergency work has commenced. c. The fees paid to obtain permits are separate, and in addition to, any other fees included in the Franchise. d. City may issue reasonable policy guidelines to all grantees to establish procedures for determining how to control issuance of construction peunits to multiple users of the same Rights -of -Way. Grantee shall cooperate with City in establishing such policy and comply with the procedures established by the City Administrator or his or her designee to coordinate the issuance of multiple construction permits. 7 Rece3_ved: 4/29/04 8:17; -›-1.18 Cable Corp.; #938; Page 13 From:CITY OF TYBCE / ZONING 3i2 9539 04/29/2004 22:T5 #049 P e. Upon reasonable prior written notice, Grantee shall meet with developers and be present at pre-construction meetings to ensure that Cable System facilities are installed in new developments within City in a timely manner. 2. Use of existing poles or conduits. a. Grantee shall use its best efforts to utilize existing poles, conduits and other facilities belonging to either Grantee or other utility providers whenever commercially reasonable and shall not construct or install any new, different or additional poles, conduits or other facilities on public property without the written approval of City. No location or any pole or wire-holding structure of Grantee shall be a vested interest, and such poles or structures shall be removed or modified by Grantee at its own expense whenever City determines that such a move is a public necessity. The Grantee shall not be responsible for the cost associated with relocating the Cable System to accommodate other providers, including the City, or private development projects or to satisfy a zoning condition imposed upon a developer by the City. b. The facilities of Grantee shall be installed underground in those areas of City where all other public or private utilities are underground at the time of construction by Grantee. In areas where the facilities of all other public or private utilities are installed aerially at the time of System construction, Grantee may install its facilities aerially; however, at such time as the existing aerial facilities of all other public or private utilities are placed underground, Grantee shall likewise place its facilities underground at its sole cost. If City requires utilities to bury lines which are currently overhead, and the City financially participates in said under grounding, then the City shall provide the same cost sharing to the Grantee. 3. Minimum Interference. a. Grantee shall use its best efforts to give reasonable prior notice to any adjacent private property owners who will be negatively affected or impacted by Grantee's significant construction work in the Rights-of-Way. b. All transmission and distribution structures, lines and equipment erected by Grantee shall be located so as to cause minimum interference with the unencumbered use of Rights-of-Way and other public places and minimum - interference with the rights and reasonable convenience of property owners who adjoin any of the Rights-of-Way and public places. 4. Disturbance or damage. Any and all Rights-of-Way, or public or private property, which are disturbed or damaged during the construction, repair, replacement, relocation, operation, maintenance, expansion, extension or reconstruction of the System shall be promptly and fully restored by Grantee, at its expense, to a condition as good as that prevailing prior to Grantee's work. If Grantee fails to promptly perform the restoration required herein, after written request of City and reasonable opportunity to satisfy that 8 Received: 4/29/04 8:17; ->US Cable Corp.; #936; Page 14 From:CITY OF TYBEE /ZONING 912 786 9539 04/29/2004 22:17 #049 P.014/039 request, City shall have the right to put the Rights-of-Way back into condition as good as that prevailing prior to Grantee's work. In the event City determines that Grantee is responsible for such disturbance or damage, Grantee shall be obligated to fully reimburse City for such reasonable cost of restoration within thirty (30) days after its receipt of City's invoice therefor0. 5. Temporary Relocation. a. At any time during the Term of the Franchise, Grantee shall, at its own expense, protect, support, temporarily disconnect, relocate or remove any of its property when, in the opinion of City, (i) the same is required by reason of traffic conditions, public safety, Rights-of-Way vacation, freeway or Rights-of-Way construction, alteration to or establishment of any Rights-of-Way or any facility . within the Rights-of-Way, sidewalk, or other public place, including but not limited to, installation of sewers, drains, waterlines, power lines, traffic signal lines or transportation facilities; or (ii) a City project or activity makes disconnection, removal, or relocation necessary or less expensive for City. If the City requests the relocation, removal or reinstallation of any of Grantee's facilities in any of the Rights-of-Way for the sole purpose of installing or providing its own cable television or telecommunications services or those of a second cable television or telecommunications service provider in competition with Grantee, then such cost shall not be borne by Grantee but by the City or requesting entity. b. Grantee shall, on prior written request of any Person holding a permit to move a building, temporarily raise or lower its wires to permit the movement of such buildings. The expense of such temporary removal or raising or lowering of wires shall be paid by the Person requesting the same, and Grantee shall have the authority to require such payment in advance. Grantee shall be given not less than five (5) days advance notice to arrange such temporary wire alterations. 6. Emergency. Whenever, in case of fire or other emergency, it becomes necessary in the judgment of the City Administrator, police chief, fire chief, or their delegates, to remove or damage any of Grantee's facilities, no charge shall be made by Grantee against City , . for restoration, repair or damages. . 7. Tree Trimming, Grantee shall have the authority to trim trees on public Rights-of-Way at its own expense as may be necessary to protect its wires and facilities. Trimming of trees on private property shall require consent of the property ev‘rner. Any trimming of trees by the Grantee in the Rights-of-Way and public ways shall be subject to such regulation or supervision as the City Administrator or other authorized official may establish to protect the public health, safety and convenience. 8. Protection of facilities. Nothing contained in this section shall relieve any Person from liability arising out of the failure to exercise reasonable care to avoid damaging Grantee's facilities while perfoLuling any work connected with grading, regrading or changing the line of any Rights-of-Way or public place or the construction or reconstruction of any sewer or water system. 9 Received: 4/29/04 8.28; - >US Cable Corp.; #936; Page 25 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:17 #049 P.015I039 9. installation records. Grantee shall keep accurate Installation records of the location of all facilities in the Rights -of -Way and public ways and furnish strand maps to City upon prior written request. Grantee shall cooperate with City to furnish such information in an electronic mapping format, if possible compatible with the then - current City electronic mapping format. Upon completion of new or relocation construction of underground facilities in the Rights -of -Way and public ways, Grantee shall provide City with Installation records in an electronic format, if possible compatible with the then - current City electronic mapping format showing the location of the underground and above ground facilities. 10. Locating facilities. . a. If, during the design process for public improvements, City discovers a potential . .. . conflict with proposed construction, Grantee shall either: (a) locate and, if . necessary, expose its facilities in conflict or (b) use a location service to locate or expose its facilities. Grantee is obligated to furnish the location information in a timely manner, but in no case longer than thirty (30) days. . b. City reserves the prior and superior right to lay, construct, erect, install; use, operate, repair, replace, remove, relocate, regrade, widen, realign, or maintain any Rights -of -Way and public ways, aerial, surface, or subsurface improvement, including but not limited to water mains, traffic control conduits, cable and devices, sanitary or storm sewers, subways, tunnels, bridges, viaducts, or any other public construction within the Rights -of -Way of City limits. 11. City's rights. a. Nothing in this Franchise shall be construed to prevent City from constructing, maintaining, repairing or relocating sewers; grading, paving, maintaining, repairing, relocating and/or altering any Right -of -Way; constructing, laying down, repairing, maintaining or relocating any water mains; or constructing, . maintaining, relocating, or repairing any sidewalk or other public work. 12. Facilities in conflict. If, during the course of a project, City determines Grantee's facilities are in conflict, the following shall apply: a. Prior to City Notice to Proceed to Contractor: Grantee shall, within a reasonable time, but in no event exceeding three (3) months, remove or relocate the conflicting facility. This time period shall begin running upon receipt by Grantee of written notice from City. However, if both City and Grantee agree, the time frame may be extended based on the requirements of the project. b. Subsequent to City Notice to Proceed to Contractor: City and Grantee will immediately begin the coordination necessary to remove or relocate the facility. Removal or relocation is to begin no later than seventy -two (72) hours, if practicable, after written notification from City of the conflict. 10 Received: 4/29/04 8:18; - >US Cable Corp.; #936; Page 16 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:17 #049 P.016/039 13. Relocation delays. a. In the event City becomes aware of a potential delay involving Grantee's facilities, City shall promptly notify Grantee of this potential delay. 14. Interference with City Facilities. The Installation, use and maintenance of the Grantee's facilities within the Rights -of -Way and public ways authorized herein shall be in such a manner as not to interfere with City's placement, construction, use and maintenance of its Rights -of -Way and public ways, Rights -of-Way lighting, water pipes, drains, sewers, traffic signal systems or other City systems that have been, or may be, installed, maintained, used or authorized by City. 15. Interference with Utility Facilities. Grantee agrees not to install, maintain or use any of its facilities in such a manner as to damage or interfere with any existing facilities of another utility located within the Rights -of -Way and public ways of City and agrees to relocate its facilities, if necessary, to accommodate another facility relocation. Nothing in this - section is meant to Iimit any rights Grantee may have under Applicable Laws to be compensated for the cost of relocating its facilities from the utility that is requesting the relocation. 16. Co- location. To maximize public and employee safety, to minimize visual clutter of aerial plant, and to minimize the amount of trenching and excavation in and along City Rights -of -Way and sidewalks for underground plant, Grantee shall make every commercially reasonable effort to co- locate compatible facilities within the Rights -of- Way subject to the engineering requirements of the owners of utility poles and other facilities. 17. Safety Requirements. a. Grantee shall at all times employ ordinary and reasonable care and shall install and maintain in use nothing less than commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage or injuries. b. Grantee shall install and maintain its System and other equipment in accordance with City's codes and the requirements of the National Electric Safety Code and`:.. all other applicable FCC, state and local regulations, and in such manner that they will not interfere with City communications technology related to health, safety and welfare of the residents. c. Cable System structures, and lines, equipment and connections in, over, under and upon the Rights -of -Way of City, wherever situated or Located, shall at all times be kept and maintained in good condition, order, and repair so that the same shall not menace or endanger the health, safety or property of City or any Person. 11 Received: .4/29/04 8:19; ->US Cable Corp.; #936; Page 17 From:OITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:18 #049 P.0177039 SECTION 4. DESIGN PROVISIONS System Upgrade/Construction: Minimum Channel Capacity. a. Grantee shall at a minimum operate for the Term of this Franchise a 450 MI-Iz • • . . System capable providing a minimum of eighty (80) video Channels or its equivalent in a combination of analog and digital Video Programming Services on the Cable System. b. Programming decisions remain the discretion of Grantee in accordance with federal law, provided that Grantee notifies City and Subscribers in writing thirty (30) days prior to any Channel additions, deletions, or realignments, and further subject to Grantee's signal carriage obligations hereunder and pursuant to 47 U.S.C. § 531-536, and further subject to City's rights pursuant to 47 U.S.C. § 545. 2. Construction. During periods of upgrade or rebuild, on or about thirty (30) days prior to any scheduled construction, affected subscribers, if any will receive a notice, which shall include Grantee's telephone number that Subscribers can use to contact Grantee with any questions or concerns they may have. 3. Interruption of Service. Grantee shall endeavor to interrupt Service only for good cause and for the shortest time possible. If Service is interrupted for a total period of more than twenty-four (24) continuous hours in any thirty (30) day period, Subscribers shall, upon request, be credited pro rata for such interruption. 4. Emergency Alert Capability. Grantee shall provide within One Hundred Twenty (120) • days from the date this Franchise is adopted the System capability to allow the City to transmit from City Hall or other said location at City's discretion, an emergency alert signal to all participating Subscribers, in the form of an audio message on all Channels simultaneously in the event of disaster or public emergency. In addition, Grantee shall at all times comply with the Emergency Alert System standards pursuant to Title 47, Section 11, Subparts A-E of the Code of Federal Regulations, as may be amended or modified from time to time. 5. Technical Standards. The technical standards used in the operation of the System shall comply, at minimum, with the technical standards promulgated by the FCC relating to Cable Systems pursuant to Title 47, Section 76, Subpart K of the Code of Federal Regulations, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. 6. Special Testing. a. City shall have the right to inspect and test all construction or Installation work performed pursuant to the provisions of the Franchise. In addition, City may require special testing of a location or locations within the System as desired at any time during the term of this Franchise. Demand for such special tests may be . 12 Received: 4/29/04 8:19; ->US Cable Corp.; #936; Page 18 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 2218 4049 P.018/039 made on the basis of complaints received or other evidence indicating an unresolved controversy or noncompliance with FCC technical standards. City shall endeavor to so arrange its request for such special testing so as to minimize hardship or inconvenience to Grantee or to the Subscribers caused by such testing b. : efore ordering such tests, Grantee shall be afforded thirty (30) days advance written notice. City shall meet with Grantee prior to tests to discuss the need for such and, if possible, visually inspect those locations which may be the focus of concern. If, after such meetings and inspections, City wishes to commence special tests and the thirty (30) days have elapsed, the tests shall be conducted by a qualified engineer selected by City. Grantee shall participate and Cooperate in such testing and shall not assess City or Subscribers any fees or costs associated with time or labor Grantee may incur as a result of its participation in such testing. If such special testing establishes that the System meets all required FCC technical standards as set forth in Section 5 above, the City shall bear the expense for such special testing. If such special testing establishes that the System does not meet all required FCC technical standards set forth in Section 5 above, Grantee shall bear the expense for such special testing. 7. FCC Retorts. Any reports filed by Grantee with the FCC shall upon written request, be filed with City or its designee within Thirty (30) days of the date when report is filed with the FCC. 8. Interconnection. At the written request of the City, Grantee shall enter into negotiations with adjacent Cable Systems regarding interconnecting PEG Access Channels. The interconnect shall be designed and built to the extent the transmission of signals between , the Grantee's System and other Cable Systems does not result in any deterioration in the signal quality_ 9. Annexation. Upon the annexation of any additional land area by the City, if the annexed area is not currently served by a cable operator it will be subject to the other provisions of this Section 4. If the annexed area is served by a cable operator, Grantee has the option to extend its Cable System to the newly annexed area if Grantee determines that it is economically feasible to do so. Upon the annexation of any additional land area by the City, the annexed area shall be subject to all the terms of this Franchise upon ninety (90) days of written notification by the City to Grantee. A cable operator other than Grantee whose Cable System already passes homes in an annexed area shall not extend its Cable System beyond those homes which it passes at the time the annexation occurs unless it otherwise obtains a franchise from the City. 10. Line Extension. a. Grantee shall construct and operate its Cable System so as to provide Service to all parts of its Franchise area as provided in this Franchise and having a density equivalent of seven (7) residential units per one-quarter (1/4) mile of System, as measured from the Cable System. 13 Received: 4/29/04 8:19; -SUS CabZe Corp.; #936; Page 19 From :CITY OF TYKE / ZONING 912 786 953 04/29/2004 22 :19 #049 P:019 b. Where the density is less than that specified above, Grantee shall inform Persons requesting Service of the possibility of paying for Installation or a line extension and shall offer to provide them with a free written estimate of the cost, which shall be provided within fifteen (15) working days of such a request. The charge for Installation or extension for each Person requesting Service shall not exceed a pro rata share of the actual cost of extending the Service. c. Any residential and/or commercial unit located within one hundred fifty (150) feet of the Grantee's System shall be connected to the System at no charge other than the Standard Installation charge. Grantee shall, upon request by any potential Subscriber residing in City beyond the one hundred fifty (150) foot limit, extend Service to such Subscriber provided that the Subscriber may be required to pay the net additional Drop costs. d. Under Normal Operating Conditions, if Grantee cannot perform Installations within the times specified in applicable customer standards, the Subscriber may request and is entitled to receive a credit equal to the charge for a Standard Installation. For any Installation that is not a free Installation or a Standard Installation, Grantee shall provide the Subscriber with a written estimate of all charges within seven (7) days of a request by the Subscriber. Failure to comply will subject Grantee to appropriate enforcement actions. This section does not apply to the introduction of new products and services when Grantee is utilizing a phased introduction. 11. Lockout Device. Upon the request of a Subscriber, Grantee shall under normal operating conditions, provide by sale or lease to each Subscriber, one of the following devices by . which the Subscriber can block completely the video and audio signals of a particular Cable Service: (i) a parental control device; or (ii) a converter with a parental control feature; or (iii) a filter, trap or other method or device. The Grantee shall provide the device in a timely manner not to exceed thirty (30) days after the request is received. SECTION 5. SERVICE PROVISIONS 1. Regulation of Service. Rates. City may regulate rates for the provision of Cable Service, equipment, or any other communications service provided over the System to the extent allowed under federal or state law(s). City reserves the right to regulate rates for any future Services to the extent permitted by law. 2. Non - Standard Installations_ Grantee shall install and provide Cable Service to any Person requesting other than a Standard Installation provided that said Cable Service can meet FCC technical specifications and all payment and policy obligations are met. In . such case, Grantee may charge for the incremental increase in material and labor costs incurred beyond the Standard Installation. . 14 Received: 4/29/04 8:20; -SUS Cable Corp_; #936; Page 20 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:19 #049 P.020/039 3. Sales Procedures. At the time of installation, Grantee shall inform the non- Subscriber of all levels of Service available, including the Lowest priced and free Service tiers. Grantee shall have the right to market door -to -door during reasonable hours consistent with local ordinances and regulation. 4. Consumer Protection and Service Standards. Grantee shall maintain a convenient bill payment location City for receiving Subscriber payments. If there is no local business office located in the City, equipment exchanges requiring a truck roll shall be at no charge to the subscriber. Grantee shall also provide the necessary facilities, equipment and personnel to comply with the following consumer protection standards under Normal Operating Conditions: a. Cable System office hours and telephone availability: i. Grantee will maintain a local or toll -free telephone access line which will be available to its Subscribers twenty -four (24) hours a day, seven (7) days a week. I. Trained Grantee representatives will be available to respond to customer telephone inquiries during Normal Business Hours. 2. After Normal Business Hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after Normal Business Hours must be responded to by a trained Grantee representative on the next business day. • ii. Under Normal Operating Conditions, telephone answer time by a customer representative, including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met no less then ninety percent (90 %) of the time under Normal Operating Conditions, measured on a quarterly basis. iii. The Grantee will not be required to acquire equipment or perform surveys to measure compliance with the telephone answering standards above unless a historical record of complaints indicates a clear failure to comply. iv. Under Normal Operating Conditions, the customer will receive a busy signal less than three percent (3 %) of the time_ v. Customer service center and bill payment locations will be open at least during normal business hours. b. Installations, Outages and Service Calls. Under Normal Operating Conditions, each of the following four (4) standards will be met no less than ninety -five percent (95 %) of the time measured on a quarterly basis: 15 4' Received: 4/29/04 8:20; - >.US Cable Corp.; #936; Page 21 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:19 #049 P..021/039 Standard Installations will be performed within seven (7) business days after an order has been placed. "Standard" Installations are those that are located up to one hundred fifty (150) feet from the existing distribution system. ii. Excluding conditions beyond the control of Grantee, Grantee will begin working on "Service Interruptions" promptly and in no event later than twenty -four (24) hours after the interruption becomes known. Grantee must begin actions to correct other Service problems the next business day • after notification of the Service problem. iii. The "appointment window" alternatives for Installations, Service calls, and other Installation activities will be either a specific time or, at maximum, a four (4) hour time block during Normal Business Hours. (Grantee may schedule Service calls and other Installation activities outside of Normal Business Hours for the express convenience of the customer.) iv. Grantee may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. v. If Grantee's representative is running late for an appointment with a customer and will not be able to keep the appointment as scheduled, the customer will be contacted prior to the time of the scheduled appointment. The appointment will be rescheduled, as necessary, at a time which is convenient for the customer. c. Communications between Grantee and Subscribers: • Notifications to Subscribers: 1. Grantee shall provide written information on each of the following areas at the time of Installation of Service, at least annually to all Subscribers, and at any time upon request: a. Products and Services offered; b. Prices and options for programming services and conditions of subscription to programming and other services; c. Installation and Service maintenance policies; d. Instructions on how to use the Cable Service; e. Channel positions of the programming carried on the System; and 16 Recoxved: 4/28/04 8:20; -US Cable Corp.; #836; Page 22 60M:.01TY OF TYBEE / ZONING 912 786 9539 04729/2004 22:20 4049 P.022/039 f. • Billing and complaint procedures, including the address and telephone number of the City. 2. Subscribers will be notified of any changes in rates, programming services or Channel positions as soon as possible in writing. Notice must be given to Subscribers a minimum of thirty (30) days in advance of such changes if the changes are within the control of the Grantee. In addition, the Grantee shall notify Subscribers thirty (30) days in advance of any significant changes in the other information required by this Section 5.4(c)(i)(1). Grantee shall not be required to provide prior notice of any rate changes as a result of a regulatory fee, Franchise Fee, or other fees, tax, assessment or charge of any kind imposed by any federal agency, state or City on the transaction between the operator and the Subscriber. ii. Billing: 1. Bills will be clear, concise and understandable. Bills must be fully itemized, with itemizations including, but not limited to, basic and premium Service charges and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. 2. In case of a billing dispute, the Grantee must respond to a written complaint from a Subscriber within thirty (30) days. iii. Refunds: Refund checks will be issued promptly, but no later than either: 1. The Subscriber's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier, or 2. Thirty (30) days from the return of the equipment supplied by Grantee if Service is terminated. iv. Credits: Credits for Service will be issued no later than the Subscriber's next billing cycle following the determination that a credit is warranted. Upon 30 days written request, Grantee shall provide City with a quarterly compliance report which report shall, at a minimum, describe in detail Grantee's compliance with each and every term and provision of this section. Grantee shall comply with the cable industry's on-time guaranty as endorsed by the National Cable Television Association. This on-time guaranty generally provides that if Installation is not commenced within the "appointment window" specified. by the operator, Installation shall be free for the Subscriber. Moreover, Grantee shall provide Subscribers with a Twenty and No/100 Dollars ($20.00) credit for any missed service appointments. 17 . . Received: 4/29/04 8:21; -US Cable Corp.; #936; Page 23 From:CITY OF TYBEE / ZONING 912786 9539 04/29/2004 22:20 #049 P.0237039 5. Subscriber Contracts. Upon request, Grantee shall file with City any standard form residential Subscriber contract utilized by Grantee. If no such written contract exists, Grantee shall file with the City a document completely and concisely stating the length and terms of the Subscriber contract offered to customers. The length and terms of any Subscriber contract(s) shall be available for public inspection during normal business hours. A list of Grantee's current Subscriber rates and charges for Cable Service shall be maintained on file with City and shall be available for public inspection. 6. Refund Policy. a. If a Grantee's Cable Service is interrupted due to a System outage for twenty-four (24) or more consecutive hours, Subscribers, upon request, shall be credited pro rata for such interruption. Credits must be issued no later than the Subscriber's next billing cycle following the determination that a credit is warranted. For this purpose, every month will be assumed to have thirty (30) days b. In the event a Subscriber establishes or terminates Service and receives less than 1 one (I) full month of Service, Grantee shall prorate the monthly rate on the basis of the number of days in the period for which Service was rendered to the number of days in the billing. Refund checks will be issued promptly, but no later than thirty (30) days from the date of return of the equipment supplied by the Grantee if Cable Service is terminated. 7. Late Fees. Fees for the late payment of bills shall be assessed in accordance with applicable law. SEC 6. ACCESS CHANNELS(S) PROVIISIIONS 1. Grantee Support for Access Channels. Grantee shall provide the following support for access Channel usage within the Service Area. a. Provision of the Channel designated in Exhibit B of this Agreement for government access use at no charge in accordance with the requirements of Exhibit B. b. Support of Governmental programming to the extent specified in Exhibit B of this Agreement. c. Provision of free public building Installation and Cable Service as more clearly specified in Exhibit B. 2. Compliance with Federal Law. Grantee and City agree that the access support fee referenced in Exhibit B will not be deemed to be "Franchise Fees" within the meaning of Section 622 of the Cable Act (47 U.S.C. §542), and such obligations shall not be deemed to be (i) "payments in kind" or any involuntary payments chargeable against the 18 4' Received: 4/29/.04 8:21; - >US Cable Corp.; #936; Page 24 From:CITY OF TYKE / ZONING 912 786 04/29/2004 22 :20 4049 P.024/039 Franchise Fees to be paid to the City by Grantee pursuant to Section 7 hereof or (ii) part of the Franchise Fees to be paid to City by Grantee pursuant to Section 7 hereof. SECTION 7. OPERATION AND ADMINISTRATION PROVISIONS 1. Administration of Franchise. The City Administrator or other lawful designee of the City shall administer and represent the City's interest under this Franchise; provided, however, that the City Council shall retain the sole authority to take enforcement action pursuant to this Franchise. 2. Delegated- Authority. The City may appoint a citizen advisory body or may delegate to any other body or Person authority to monitor the performance of Grantee pursuant to the Franchise. Grantee shall cooperate with any such delegates of City. 3. Franchise Fee. a. During the term of the Franchise, Grantee shall pay to City a Franchise Fee in an amount equal to five percent (5%) of its annual Gross Revenues or such other amount allowable by federal law; provided, however that the five percent (5 %) shall not take effect until the first full monthly billing cycle following a period not to exceed forty five (45) days from the Effective Date of this Franchise Agreement and the Grantee shall not be compelled to pay any higher percentage of franchise fees than any other cable operator providing service in the Franchise Area.. Any change in the franchise fee assessed shall be considered an amendment of the Franchise. Calculation, collection and pass - through of , franchise fees shall be in accordance with Applicable Laws. b. Any payments due under this provision shall be made on a quarterly basis. Each quarterly payment shall be made within forty -five (45) days of the end of each of Grantee's fiscal quarters together with a report showing the basis for the computation in form and substance substantially the same as Exhibit E attached hereto. In the event that a Franchise Fee payment or other sum due is not received by the City on or before the date due, after notice and opportunity to cure, interest shall accrue on the outstanding amount at rates published by the Internal Revenue Service for tax refunds and additional tax payments for the period of delinquency. c. All amounts paid shall be subject to audit and re- computation by City and acceptance of any payment shall not be construed, as an accord that the amount paid is in fact the correct amount. If any audit reveals an error by Grantee of 10% or more during any audit period, Grantee shall be responsible for City's reasonable out of pocket costs associated with the audit. 4. Not Franchise Fees. 19 Received: 4/29/04 8:21; ->US Cable Corp.; #936; Page 25 From:CITYOF TYBE / ZONINO 912 786 9539 04/29/2004 22:21 4049 P.025/039 a. Grantee acknowledges and agrees that the Franchisee Fees payable by Grantee to City pursuant to this section shall take precedence over all other payments, contributions, services, equipment, facilities, support, resources or other activities to be provided or performed by Grantee pursuant to this Franchise and that the Franchise Fees provided for in this section of this Franchise shall not be deemed to be in the nature of a tax, and shall be in addition to any and all taxes of general applicability and other fees and charges which Grantee, shall be required to pay to City and/or to any other governmental authority, all of which shall be separate and distinct obligations of Grantee. - b. Grantee shall not apply or seek to apply or make any claim that all or any part of the Franchisee Fees or other payments or contributions to be made by Grantee to City pursuant to this Franchise shall be deducted from or credited or offset against any taxes, fees or assessments or general applicability levied or imposed by City or any other governmental authority, including any such tax, fee or assessment imposed on both utilities and cable operators or their services. c. Grantee shall not apply or seek to apply all or any part of any taxes, fees or assessments or general applicability levied or imposed by the City or any other governmental authority (including any such tax, fee or assessment imposed on both utilities and cable operators or their services) as a deduction or other credit from or against any of the Franchise Fees or other payments or contributions to be paid or made pursuant by Grantee to City to this Franchisee which shall be deemed to be separate and distinct obligations of Grantee. 5. Access to Records. The City shall have the right to inspect, upon reasonable notice and during normal business hours, or require Grantee to provide within a reasonable time copies of any records maintained by Grantee which relate to System operations including • specifically Grantee's accounting and financial records. City acknowledges that some of the records which may be provided by Grantee may be classified as confidential and therefore may subject Grantee to competitive disadvantage if made public. City shall therefore maintain the confidentiality of any and all records provided to it by Grantee which are not required to be made public pursuant to Applicable Laws. Grantee shall produce such books and records for City's inspection at Grantee's local office within the Service Area or at such other mutually agreed upon location within the City. To the extent it is necessary for City to send representatives to a location outside of Georgia to inspect Grantee's books and records, Grantee shall be responsible for all reasonable travel costs incurred by City representatives. 6. Periodic Evaluation. a. City may require evaluation sessions at any time during the term of this Franchise, upon thirty (30) days prior written notice to Grantee beginning no sooner than twelve (12) months from the Effective Date of this Agreement and no more often than annually thereafter. 20 Received: 4/29/04 8:22; ->US Cable Corp.; #936; Page 26 From:CITY OF TYKE / ZONING 92 786 9539 04/29/2004 22:21 #049 P026/039 b. Topics which may be discussed at any evaluation session may include, but are not limited to, application of new technologies, System performance, programming offered, access Channels, facilities and support, municipal uses of cable, Subscriber rates, customer complaints, amendments to this Franchise, judicial rulings, FCC rulings, line extension policies and any other topics City deems_ relevant. SECTION 8. GENERAL FINANCIAL AND INSURANCE PROVISIONS 1. Letter of Credit. a. Within 30 days of acceptance of this Franchise, Grantee shall deliver to City a letter of credit, in form and substance acceptable to City, from a National or State bank or financial institution, in the amount of Five Thousand and No/100 Dollars ($5,000). b. The letter of credit shall provide that funds will be paid to City, upon written demand of City, and in an amount determined in accordance with this Section 8 in payment for penalties charged pursuant to this Section 8. c. The City and the Grantee agree that there are certain violations for which damages cannot be readily determined. Accordingly, The City may charge to Grantee and collect from the letter of credit only the following amounts as liquidated damages up to a maximum of $1,000 per month: i. For failure to provide data, documents, reports or information or to cooperate with City during an application process or system review or as otherwise provided herein, the penalty shall be One Hundred and No/100, Dollars ($100.00) per day for each day, or part thereof, such failure occurs or continues. ii. For failure of Grantee to comply with construction, operation or maintenance standards, the penalty shall be One Hundred Fifty and No/100 Dollars ($150.00) per day for each day, or part thereof, such failure occurs or continues. iii. For failure to provide the Services Grantee has proposed, including, but not limited to, the implementation and the utilization of the access Channels and the maintenance and/or replacement of the equipment and other facilities, the penalty shall be One Hundred Fifty and No/100 Dollars ($150.00) per day for each day, or part thereof, such failure occurs or continues. iv. For failure to comply with any of the material provisions of this Franchise, for which damages are not readily determined and are not otherwise specifically provided pursuant to this subparagraph (c), the amount shall 21 Received: 4/29/04 8:22; - >US Cable Corp.; #936; Page 27 From:CITY OF TYBEE / ZONING 912 786 9539 04/29/2004 22:21 #049 P.027/039 be One Hundred and No /100 Dollars ($100.00) per day for each day, or part thereof, such failure occurs or continues. d. Each violation of any provision of this Franchise shall be considered a separate violation for which a separate penalty can be imposed. e. Whenever City finds that Grantee has violated one or more terms, conditions or provisions of this Franchise, or for any other violation contemplated in subparagraph (c) above, a written notice shall be given to Grantee informing it of such violation. Subject to section 8.2 below, at any time after thirty (30) days (or such longer reasonable time which, in the sole determination of City, is necessary to cure the alleged violation) following Grantee's receipt of notice, provided Grantee remains in violation of one or more terns, conditions or provisions of this Franchise, The City may draw from the letter of credit all liquidated damages due City from the date of the Grantee's receipt of notice. f. if said letter of credit or any subsequent letter of credit delivered pursuant thereto expires prior to twelve (12) months after the expiration of the term of this Franchise, it shall be renewed or replaced during the term of this Franchise to provide that it will not expire earlier than twelve (12) months after the expiration of this Franchise. The renewed or replaced letter of credit shall be of the sarne faun and with a bank authorized herein and for the full amount stated in subparagraph (a) of this section. g. If City draws upon the letter of credit or any subsequent letter of credit delivered pursuant hereto, in whole or in part, upon written request, Grantee shall replace or replenish to its full arnount the same within thirty (30) days and shall deliver to City a like replacement letter of credit or certification of replenishment for the full amount stated in Section 8.1 (a). This shall be a continuing obligation for any draws upon the letter of credit. h. arnount The drawing on the letter of credit by City, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default. 2. Procedure for Remedying Franchise Violations. a. Whenever the City believes that the Grantee is in violation of one or more of the material terms, conditions, or provisions of this Franchise, a written notice shall be given to the Grantee. The written notice shall describe in reasonable detail the alleged violation so as to afford the Grantee the opportunity to remedy the violation. Grantee shall have thirty (30) days subsequent receipt of written notice in which to correct the violation. Grantee shall, within ten (10) business days of receipt of written notice, notify the City if there is a dispute as to whether a violation has, in fact, occurred. Such notice by the Grantee shall specify with reasonable particularity the matters disputed and shall stay the running of the 22 Received: 4/29/04 8:23; - >US Cable Corp.; #936; Page 28 From:CITY OF TYBEE / ZONING 912 - 786 9539_ 04/29/ 2004 22:22 - #049 - P ;028/039 above- described time for cure. b. The City shall hold a hearing regarding the alleged violation(s) at a regularly scheduled or specially scheduled City Council meeting with at least ten (10) days prior written notice to Grantee. The Grantee shall be afforded an opportunity to be heard and present evidence at such hearing. The City shall make a deter nination as to the alleged violation(s) and shall make written fmdings of fact relative to its determination. Grantee may appeal decision of City to court of competent jurisdiction. c. If after hearing the dispute, the City Council finds that a violation exists, then the Grantee shall have the remainder of the initial thirty (30) day cure period within - which to remedy the violation or appeal the decision. d. The time for Grantee to correct any alleged violation shall be extended by the City if the necessary action to correct the alleged violation is of such a nature or character as to require more than thirty (30) days and provided Grantee commences corrective action within thirty (30) days and thereafter exercises due diligence to correct the violation. e. If the City elects to draw down against the Letter of Credit, then such election shall constitute City's exclusive remedy for a period of ninety (90) days. Thereafter, if the Grantee remains in non - compliance, the City may pursue any other available remedy. 3. Liability Insurance. a. Upon the effective date, Grantee shall, at its sole expense take out and maintain during the term of this Franchise public liability insurance with a company licensed to do business in the state of Georgia with a rating by A.M. Best & Co. of not less than "A minus" listing the City as additional insured that shall protect the Grantee, City and its officials, officers, directors, employees and agents from claims which may arise from operations under this Franchise, whether such I operations be by the Grantee, its officials, officers, directors, employees and agents or any subcontractors of Grantee. This liability insurance shall include, but shall not be limited to; protection against claims arising from bodily and personal injury and damage to property, resulting from Grantee's vehicles, products and operations. The amount of insurance for single limit coverage applying to bodily and personal injury and property damage shall not be less than Two Million and No /100 Dollars ($2,000,000.00). i. The policy shall not be canceled without thirty (30) days notice of such cancellation given to City. b. City reserves the right to adjust the insurance limit coverage requirements of this Franchise no more than once every three- (3) years. Any such adjustment by City will be no greater than the increase in the State of Georgia Consumer Price Index 23 4 Received: 4/29/04 8:23; ->US Cable Corp.; #936; Page 29 From:CITY OF TY8EE / ZONING -- - 912 786 9539 04/29/2004 22:22 #049 P.029/039 ( all consumers) for such three- (3) year period. In the event the City elects to increase the insurance requirement in accordance with this Section 8.3.b., the Grantee shall have ninety (90) days from a written notice from City to effect the increase in insurance coverage. c. Within 30 days of Grantee's acceptance the Grantee shall submit to City documentation of the required insurance, including a certificate of insurance signed by the insurance agent and companies named, as well as all properly executed endorsements. 4. Indemnification a. Grantee shall indemnify, defend and hold City, its officers, boards, commissions, agents and employees (collectively the "Indemnified Parties") harmless from and against any and all lawsuits, claims, causes or action, actions, liabilities, demands, damages, judarnents, settlements, disability, losses, expenses (including attorney's fees and disbursements of counsel) and costs of any nature that any of the Indemnified Parties may at any time suffer, sustain or incur arising out of, based upon or in any way connected with the Grantee's operations, the exercise of the Franchise, the breach of Grantee of its obligations under this Franchise and/or the activities of Grantee, it subcontractor, employees and agents hereunder. Grantee shall not be required to provide indemnification to City for programming cablecast over the public, educational and governmental access Channels administered by City. b. The indemnification obligations of Grantee set forth in this Franchise not limited in any way by the amount or type of damages or compensation payable by or for Grantee under Workers' Compensation, disability or other employee benefit acts, acceptance of insurance certificates required under this Franchise or the terms, applicability or limitations of any insurance held by Grantee. c. City does not, and shall not, waive any rights against Grantee which it may have by reason of the indemnification provided for in this Franchise, because of the acceptance by City, or the deposit with City by Grantee, of any of the insurance policies described in this Franchise. d. The indemnification. of City by Grantee provided for in this Franchise shall apply to all damages and claims for damages of any kind suffered by reason of any of the Grantee's operations referred to in this Franchise, regardless of whether or not such insurance policies shall have been determined to be applicable to any such damages or claims for damages. e. Grantee shall not be required to indemnify City for negligence or misconduct on the part of City or its officials, boards, commissions, agents, or employees. City shall hold Grantee harmless, subject to the limitations in state statutes for any damage resulting from the negligence or misconduct of the City or its officials, boards, commissions, agents, or employees in utilizing any E&G access Channels, 24 Received: 4/29/04 8:23; - >US Cable Corp., #936; Page 30 From:CITY OF TYBEE / ZONING 912 786 9539 - - -- 04/29/ 2004 22:23 # 049 P030/039 equipment, or facilities and for any such negligence or misconduct by City in connection with work performed by City and permitted by this Agreement, on or adjacent to the Cable System. 5. Grantee's Insurance. Grantee shall not commence any Cable System reconstruction work or permit any subcontractor to commence work until all insurance required under this Franchise has been obtained. Said insurance shall be maintained in full force and effect until the expiration of this Franchise. a. In order for City to assert is rights to be indemnified, defended, and held harmless, City must with respect to each claim: i. Promptly notify Grantee in writing within ten (1 0) business days of any • claim or legal proceeding which gives rise to such right; ii. Afford Grantee the opportunity to participate in and fully control any compromise, settlement or other resolution or disposition of any claim or proceeding; and iii. Fully cooperate with reasonable requests of Grantee, at Grantee's expense, in its participation in, and control, compromise, settlement or resolution or other disposition of such claim or proceeding subject to paragraph 2 above. SECTi 1ON 9. SA1IE, ABANDONMENT, TRANSIFTR AND REVOCATION Og: FRANCHISE City's Right to Revoke. a. In addition to all other rights which City has pursuant to law or equity, City reserves the right to commence proceedings to revoke, terminate or cancel this Franchise, and all rights and privileges pertaining thereto, if it is determined by City that after notice and an opportunity to cure as reordered herein; i. Grantee has violated material provisions(s) of this Franchise and has not cured; or ii. Grantee has practiced fraud or deceit upon City. 2. Procedures for Revocation. a. City shall provide Grantee with written notice of a cause for revocation and the intent to revoke and shall allow Grantee thirty (30) days subsequent to receipt of the notice in which to correct the violation or to provide adequate assurance of 25 Receved: 4/29/04 8:24; -SUS Cable Corp.; #936; Page 31 From:CITY OF TYBEE / ZONING 9I2 786 9539 04/29/2004 22 :23 #049 P:031/039 performance in compliance with the Franchise. In the notice required therein, City shall provide Grantee with the basis of the revocation. b. Grantee shall, on at least ten day written notice, be provided the right to a public hearing affording due process before the City Council prior to the effective date of revocation, which public hearing shall follow the thirty (30) day notice provided in subparagraph (a) above. City shall provide Grantee with written notice of its decision together with written findings of fact supplementing said decision. c. Only after the public hearing and upon written notice of the determination by City to revoke the Franchise may Grantee appeal said decision with an appropriate state or federal court or agency. d. During the appeal period, the Franchise shall remain in full force and effect unless the terrn thereof sooner expires or unless continuation of the Franchise would endanger the health, safety and welfare of any Person or the public. 3. Abandonment of Service. Grantee may not abandon the System or any portion thereof without having first given three (3) months written notice to City. Grantee may not abandon the System or any portion thereof without compensating City for damages resulting from the abandonment, including all costs incident to removal of the System. 4. Removal After Abandonment Termination or Forfeiture. a. In the event of a lawful termination or abandonment of the System, City shall have the right to require Grantee to remove all or any portion of the System from all Rights -of -Way and public property within City. b. If Grantee has failed to commence removal of System, or such part thereof as was designated by City, within thirty (30) days after written notice of City's demand for removal is given, or if Grantee has failed to complete such removal within twelve (12) months after written notice of City's demand for removal is given, . City shall have the right to remove the System, apply funds secured by the letter of credit and toward removal and/or declare all right, title, and interest to the System to be in City with all rights of ownership including, but not limited to, the right to operate the System or transfer the System to another for operation by it. 5. Sale or Transfer of Franchise. a Neither the Grantee nor any other Person may sell, transfer or assign the Franchise or any of the Grantee's rights or obligations in or regarding the System or the Franchise without the prior written consent of the Franchising Authority which consent shall not be unreasonably withheld. b. No change in Control of the Grantee, the System or the Franchise, including actual working control shall occur after the Effective Date, by operation of law, or otherwise, without the prior written consent of the Franchising Authority. Such 26 Received: 4/29/04 8:24; ->US Cable Corp.; #936; Page 32 From:CITY OF TYBEE / ZONING 912 9539 04/29/2004 22:23 4049 P.032/039 consent shall not be unreasonably withheld. No consent shall be required, however, for (i) a transfer in trust, by mortgage, hypothecation, or by assignment of any rights, title or interest of the Grantee in this Franchise or the Cable System in order to secure indebtedness, or (ii) intracorporate reorganizations between or among entities wholly owned and wholly controlled by GT parent company to the extent such transaction does not involve a change in the management, day to day operations, or financial condition of the Grantee; provided the Franchising Authority shall be notified by the Grantee in the event of such intracorporate reorganization. c. Any request for consent to a transfer shall be handled by the Franchising Authority in accordance with its rules and procedures as such are consistent with • federal and state law, with Section 617 of the Cable Act and with regulations of • the FCC d. Any proposed transfer must accept in writing the Franchise rights and obligations. SECTION 10. PROTECTION OF INDIVIDUAL RIGHTS 1. Discriminatory Practices Prohibited. Grantee shall not deny Service, deny access, or otherwise discriminate against Subscribers or general citizens on the basis of economic status, race, color, religion, national origin, sex, age, or disability. Grantee shall comply at all times with all other applicable federal, state, and City laws, relating to nondiscrimination. It shall be the right of all Persons to continuously receive all available services provided on the Cable System so long as such Person's financial or other obligations to the Grantee are satisfied. 2. Subscriber Privacy. The Grantee shall comply with Section 631 of the Cable Act and regulations adopted pursuant thereto. SECTION 11. UNAUTHORIZED CONNECTIONS Al' - 7 MOD77 1. Unauthorized Connections or Modifications Prohibited. It shall be unlav for any farm, Person, group, company, corporation, or governmental body or agency, without the express consent of the Grantee, to make or possess, or assist anybody in making or possessing, any unauthorized connection, extension, or division, whether physically, acoustically, inductively, electronically or otherwise, with or to any segment of the System or receive Services of the System without Grantee's authorization. 2. emoyal or Destruction Prohibited. It shall be unlawful for any final, Person, group, company, or corporation to willfully interfere, tamper, remove, obstruct, or damage, or assist thereof, any part or segment of the System for any purpose whatsoever. 27 Received: 4/29/04 8:24; -US Cable Corp.; #936; Page 33 rOM:C I TY OF V8EE [ZONING 912 786 9539 - 04/29/2004 - 22:24 049 P.033/039 3. Penalty. Any firm Person, group, company, or corporation found guilty of violating this section may be prosecuted and fined according to applicable law. . . SECTION 12. MISCELLANEOUS P ()VISIONS 1. Franchise Renewal. Any renewal of this Franchise shall be performed in accordance with Section 626 of the Cable Act. 2. Work Performed by Others. All applicable obligations of this Franchise shall apply to any contractor or others performing any work or services pursuant to the provisions of this Franchise, however, in no event shall any such contractor or others performing work obtain any rights to maintain and operate a System or provide Cable Service. Upon written request by City, Grantee shall provide notice to City of the name(s) and address(es) of any entity, other than Grantee, which performs substantial services pursuant to this Franchise. 3. Amendment of Franchise Ordinance. Grantee and City may agree, from time to time, to amend this Franchise. Such written amendments if City and Grantee agree that such an amendment will be in the public interest or if such an amendment is required due to changes in federal, state or local laws; provided, however, nothing herein shall restrict City's exercise of its police powers. However, no provision of this Franchise shall be amended or otherwise modified, in whole or in part, except by an instrument, in writing, duly executed by the City and the Grantee, which amendment shall be authorized on behalf of the City through the adoption of an appropriate resolution or order by the City. 4. Compliance with Federal, State and Local Laws. a. If any federal or state law or regulation shall require or permit City or Grantee to perfoiiii any service or act or shall prohibit City or Grantee from performing any service or act which may be in conflict with the terms of this Franchise, then as soon as possible following knowledge thereof, either party shall notify the other of the point in conflict believed to exist between such law or regulation. Grantee and City shall conform to state and federal laws and regulations and rules regarding cable communications, as they become effective. b. If any term, condition or provision of this Franchise or the application thereof to any Person or circumstance shall, to any extent, be held to be invalid or unenforceable in whole or in part, by any court, agency, legislative body, or other authority of competent jurisdiction, such portion shall be deemed a separate, distinct and independent portion. Such declaration shall not affect the validity of the remaining portions hereof, which other provisions shall continue in full force and effect. In the event such law, rule or regulation is subsequently repealed, 28 Received: 4/28/04 8:25; ->US Cable Corp.; #836; Page 34 Prom:CITY OF TYBEE / - - 912 786 9539 04/29/2004 22:24 #049 P.034/039 rescinded, amended or otherwise changed so that the provision which had been held invalid or modified is no longer in conflict with the law, rules and regulations then in effect, said provision shall thereupon return to full force and effect and shall thereafter be binding on Grantee and City. • 5. Nonenforcement by City. Grantee shall not be relieved of its obligations to comply with any of the provisions of this Franchise by reason of any failure or delay of City to enforce prompt compliance. City may only waive its rights hereunder by expressly so stating in writing. Any such written waiver by City of a breach or violation of any provision of this Franchise shall not operate as or be construed to be a waiver of any subsequent breach or violation. 6. Rights Cumulative. All rights and given to City by this Franchise or retained by City herein shall be in addition to and cumulative with any and all other rights existing or implied, now or hereafter available to City, at law or in equity, and such rights and shall not be exclusive, but each and every right specifically given by this Franchise or otherwise existing or given may be exercised from time to time and as often and in such order as may be deemed expedient by City and the exercise of one or more rights shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or . 7. Grantee Acknowledgment of Validity of Franchise. Grantee acknowledges that it has had an opportunity to review the terms and conditions of this Franchise and that under current law Grantee believes that said terms and conditions are not unreasonable or arbitrary, and that Grantee believes City has the power to make the terms and conditions contained in this Franchise. 8. Force Majeure. Neither party shall be liable for any failure of performance hereunder due to causes beyond its reasonable control including but not limited to; acts of God, fire, explosion, vandalism, storm or other similar catastrophes; national emergencies; insurrection; riots; wars; or strikes, lockouts or work stoppages. SECTION 13. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS 1. Publication, Effective Date. This Franchise shall be published in accordance with applicable local and state law. The effective date of this Franchise shall be the date of acceptance by Grantee in accordance with the provisions of Section 13.2. 2. Acceptance. a. Grantee shall accept this Franchise within thirty (30) days of its enactment by the City Council, unless the time for acceptance is extended by City. Such acceptance by the Grantee shall be deemed the grant of this Franchise for all purposes; provided, however, this Franchise shall not be effective until all City ordinance adoption procedures are complied with and all applicable timelines 29 A _- APR -29 -2004 THU 02:33 PM US CABLE FAX NO. 401 P. 02/05 ant by: US Cable Corp. 1 201 930 9704 ; 04/29/04 8:56; #939; Page 2/2 R ao®4.vadi 4/29/cs 0 :25; --UE Caltao Corp -i #98; rag* 36 From :CITY OF TYBEE / ZONING 912 786 9538 04/29/2004 22:24 #049 P.035/039 have run for the adoption of a City ordinance. In the event acceptance does not take place, or should all ordinance adoption procedures and timelines not be completed, this Franchise and any and ail rights granted hereunder to Grantee shall be null and void. b. Upon acceptance of this Franchise, Grantee and City shall be bound by all the terms and conditions contained herein. C. Grantee shall accept this Franchise in the following manner: i. This Franchise will be properly executed and acknowledged by Grantee • and delivered to City. ii, With its acceptance, Grantee shall also deliver any grant payments, and insurance certificates as required herein, that have not previously been delivered Passed and adopted by the City Council thist day of 20_ A'I-1'ES _ CITY OF :EE IS : • e • (3 'IA By; - - S - B y : `., ... Y.. .►vOi . Its; City Clerk / Its; Mayor ACCEPTED; This Franchise is accepted, and we agree to be bound by its terms and conditions, •• . dor Date: ,e- Y 20 d ( By: or" l ` /e..r `-,-� 1 Its : S W RN y AT: BEFORE ME this 0 Gt S c -i 4 `_ C_ .�-fn- L — 7 e. ,4. L L. 14- day of ;.Y.,, , y -- 21 - T/ -7 7 0111111 , . - '•- - '' l'..• . PUBLIC r 30 „ i 4' Received: 4/29/04 B:25; --US Cable Corp.; #936; Page 36 From:CITY OF TYBEE /ZONING 912 786 9539 04/29/2004 22:25 4049 P.036/039 EXHIBIT A OWNERSHIP [Grantee must maintain on file with City an accurate chart outlining its complete ownership structure] . , • A-1 From:CI TY Or MEE / ZONING - 912 786 9539 04/29/2004 22:25 #049 P .037/039 EXHIBIT B GRANTEE COMMITMENT TO GOVERNMENT ACCESS FACILITIES AND EQUIPMENT 1. GOVERNMENTAL ACCESS CHANNELS Grantee shall malce one (1) video Channel available exclusively for Government use. City and Grantee shall establish rules and procedures for such scheduling in accordance with Section 611 of the Cable Act (47 U.S.C. § 531). The City may, in its sole discretion, negotiate agreements with neighboring jurisdictions served by the same Cable System, educational institutions or others to share the expenses of supporting the Government Access Channel. 3. GOVERNMENT ACCESS SUPPORT Grantee shall provide City with a capital grant of Twenty Five Thousand and No/100 Dollars ($25,000), to fund Government access equipment purchase. The Grantee shall pay the City Twenty Five Thousand Dollars ($25,000) within thirty (30) days following acceptance of the Franchise. The City and Grantee agree that the Twenty Five Thousand Dollars ($25,000) will not be deducted from Franchise Fees. 4. ACCESS PROGRAiMMING TRANSMISSION LINK Within ninety (90) days following acceptance of the Franchise, the Grantee shall provide One (1) transmission link from City Hall to the Grantee's Headend. The City will provide Grantee base band video and audio signals at City Hall. Equiprnent at the Grantee's Headend will be capable of providing the signal received from City Hall and transmitted to subscribers to not be noticeably degraded compared to other programming provided - over the Subscriber network. Grantee shall ensure the City that the Government Access Channel is of comparable quality, which includes the level of ingress interference, as with other Channel on the System. 5. PRODUCTION FACILITIES AND PERSONNEL The Grantee, shall within sixty (60) days of the Effective date of this Franchise provide the personnel to televise and cablecast City Council meetings for a period of six months. During the six-month period the Grantee shall provide camera training for City access volunteers or employees. Such assistance will be provided at no cost to the City. 6. DROPS TO DESIGNATED BUILDINGS B-1 Received: 4/29/04 8:26; ->US Cable Corp.; #936; Page 38 From:CITY OF TYBEE / ZONING 912 786 9539 04/28/200422:25 #049 P.038/039 a. Upon written request, Grantee shall provide free of charge throughout the term of this Franchise, Standard Installation of one (1) network Drop, one (1) cable outlet, 1, and one (1) Converter, if necessary, and the expanded basic Cable Service offered by Grantee, without charge to the institutions identified on Exhibit C attached hereto and made a part hereof, and such other City buildings subsequently designated by City as determined in City's sole discretion. Grantee shall be responsible for the costs of extension to designated institutions for the first one hundred fifty (150) feet as measured from Grantee's System. The institution may pay up to the cost of labor and material for the any Drop or extension beyond one hundred fifty (150) feet. • . . • B-2 4' Received: 4/29/04 8:26; -›.US Cagle Corp_; #936; Page 39 From:CITY OF TYBEE / ZONING --- - 912 786 9539 04/29/2004 22:25 # 049 P.039/039 EXHIBIT C SERVICE TO PUBLIC BUILDINGS 1. City Hall 2. Police Department 3. Tybee Island Fire Department 4. Public Library 5. K -12 state accredited schools C.- I