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HomeMy Public PortalAboutOrd. 1295_.~. T. - -~. ~< .b-. ~. i ORDINANCE NO. 1295 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD (1) GRANTING CONSENT TO THE TRANSFER OF AN EXISTING CABLE TELEVISION FRANCHISE TO AMERICAN CABLESYSTEMS OF CALIFORNIA, INC.; (2) AMENDING CRDINANCE NO. 1134; (3) AMENDING ORDINANCE NO. 1108; AND (4) CONCERNING RELATED MATTERS. f THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES ORDAIN AS FOLLOWS: SECTION 1. Recitals. The City Council finds, deter- mines and declares as follows: A. The City of Lynwood granted a non-exclusive cable television franchise (the "Franchise") to Rogers Cablesystems of California, Inc., now operating as Rogers Cablesystems of the Southwest, Inc. ("Rogers") pursuant to Ordinance No. 1108; and B. The Franchise has been amended by Ordinance Nos. 1253 and 1274; and C. The current holder of the Franchise, Rogers, has requested that the City consent to the transfer of the Franchise to American Cablesystems of California, Inc., a California corporation ("American"); and D. The City has determined that American is a cap- able and financially responsible transferee, that American has agreed to accept and comply with all franchise terms and conditions except as herein modified and that it is in the best interests of the City to consent to the transfer of the franchise to American; and E. As the result of negotiations between City representatives and representatives of Rogers and American, the City has determined that it is appropriate to make certain modifications to the cable television ordinances currently in effect. SECTION 2. CONSENT TO TRANSFER. Pursuant to the provisions of Section 3.5 of Ordinance No. 1108, the transfer to American Cablesystems of California, Inc., a California corporation, of the existing, non-exclusive cable television franchise heretofore held by Rogers Cablesystems of California, Inc. is hereby approved, subject to granting ordinance No. 1134, as amended, and to the terms and conditions provided herein. The transfer to American shall become effective at such time as (i) American shall notify the City, in writing, that it has acquired the assets of Rogers and (ii) American shall have provided City with a written acceptance of the terms and conditions of the franchise, this ordinance and the franchise enabling ordinance No. 1108 and (iii) American shall have provided to City the insurance, performance bond and letter of credit required by the provisions of the franchise ordinance. Upon the execution and filing of the above-referenced documents, and upon the filing of a written consent to the conditions imposed upon the parties as the result of the transfer approval process, Rogers shall be released from all obligations and liabilities under the Franchise. City shall have no further obligations to Rogers Cablesystems of California or any of its affiliate corporations. SECTION 3. Service Provisions. A. Sections 5.1 through 5.10, inclusive, of Ordinance No. 1108 are hereby deleted in their entirety. B. New Sections 5.1 and 5.2 are hereby added to Ordinance No. 1108, to read as follows: Section 5.1 Services to be Provided. The Grantee shall provide the broad categories of video programming services listed in its franchise transfer proposal. These categories of services shall not be reduced without prior notification to Grantor. Section 5.2 Local Access Channels. Grantee shall provide channel capacity on the cable communications system for local origination, government access, educational access, and public access use in accordance with the provisions of the franchise agreement. 2 ,.. .. -' ~'. . C. Sections 8.1 through 8.8, inclusive, of Ordin- ance No. 1134 are hereby deleted in their entirety. D. New Sections 8.1, 8.2, 8.3 and 8.4 are hereby added to Ordinance No. 1134, to read as follows: Section 8.1 Services and Programmina. Grantee shall provide the following broad categories of video programming services: a) local broadcast stations b) certain distant broadcast stations c) news, weather and sports channels d) premium movie and special event channels e) local origination and access programming Section 8.2 Leased Channel Service. Grantee shall offer leased channel service to unaffiliated third parties in accordance with the provisions of the Cable Communications Policy Act of 1984. Section 8.3 Institutional Network Service. In the event that grantee initiates an institutional network service, all non-premium programming services shall be available to institutional network subscribers. Section 8.4 Public-Educational-Government Access ("PEG") Channels. (a) Grantee shall initially dedicate channel capacity on the lowest available subscriber tier of the cable communications system as follows: (i) one full-time public and educational access channel; and (ii) one full-time government access channel (b) Subject to the following, Grantee shall be required to dedicate up to a maximum of three (3) channels for PEG use. If any PEG channel is being utilized for the cablecasting of original (non- repeated) locally produced (in the cities of Bell Gardens, Downey, Lynwood, Paramount, Santa Fe Springs and La Mirada) video access programming more than sixteen (16) hours per day, seven days a week between the hours of 6:00 a.m. and midnight 3 for twelve (12) consecutive weeks, the Grantor may require the Grantee to make additional channels available for PEG purposes. However, nothing in this subsection shall require the grantee to con- struct additional system capacity beyond such system capacity required by the Franchise Ordinance. (c) Whenever any PEG channel is programmed with original (non-repeated) locally produced video access programming for less than four (4) hours per day for six (6) days per week for a continuous period of not less than twelve (12) consecutive weeks, the Grantor may permit the Grantee to utilize unused channel capacity on that channel under the following conditions: (i) Any request from the Grantee to use any fallow capacity designated for public, educational or government access must be submitted in writing to the City Council. (ii) The City Council shall approve the petition from the Grantee to use fallow channel capacity if it finds the utilization of the channel is as represented, the Grantee has not acted in violation of any of the provisions of the Franchise Ordinance to interfere with the utilization of the channel and if there are no special circumstances which would justify the denial or delay of implementation of the use of the channel. After approval, the Grantee may continue to utilize the channel for any other purposes it so chooses, consistent with this Ordinance, until it is required to be designated for PEG purposes pursuant to the provisions hereof. (iii) Notwithstanding any other provisions of this Ordinance, a minimum of one (1) channel on the cable communications system shall be designated for PEG purposes throughout the term of this franchise. (d) The Grantee shall comply with Section 611(e) of the Cable Communications Policy Act of 1984 regarding editorial control over PEG channels provided pursuant to this Ordinance. 4 SECTION 4. Franchise Non-Transferable and Change of Control. A. Section 3.5 of Ordinance No. 1108 is hereby amended by adding the following new paragraph directly after the first paragraph thereof: "Notwithstanding the foregoing paragraph, the accrued and outstanding shares of stock of the Grantee may be hypothecated, the System assets and franchise may be hypothecated, without the prior approval of City, provided that each such assignment, pledge, lease, sublease, mortgage, or other transfer or hypothecation shall be subject to the rights of Grantor pursuant to this Franchise, or applicable law, and such rights of the Grantor shall be recognized in each such hypothecation agreement between the Grantor and any such creditor." B. The second paragraph of Section 3.6 of Ordinance No. 1108 is hereby amended to read as follows: "For purposes of this section, a presumptive change in control will be established upon the sale or transfer of twenty-five per cent (250) or more of the Grantee's ownership stock." SECTION 5. Interconnection. Section 4.4 of Ordinance No. 1108 is hereby deleted in its entirety. SECTION 6. Operation and Maintenance. A. Section 6.1 of Ordinance No. 1108 is hereby amended to read as follows: 6.1 Maintenance of and Inspection of Records. The Grantor shall have the right, upon forty- eight (48) hours advance notice, to inspect all books, records, maps, plans, income tax returns, financial statements, service complaint logs, performance test results and other like materials of the Grantee which Grantor determines relate to Grantee's compliance with the provisions of the Franchise. Grantee shall maintain a written log or an equivalent stored in computer memory and capable of access and reproduction for all service requests and complaints. 5 B. Section 6.2 of Ordinance No. 1108 is hereby amended to read as follows: 6.2 Communications with Regulatory Agencies. Copies of all petitions and applications, concerning the franchise, or any portion thereof, requesting entitlements or amendments thereto, submitted to the Federal Communica- tions Commission or any other Federal or State agency shall be submitted to City within five (5) days of filing with said agencies. Grantee's routine correspondence to said agencies need not be automatically submitted to City, but shall be made available to City upon written request. C. Section 6.4 of Ordinance No. 1108 is hereby amended to read as follows: 6.4 Consumer Service Standards. The Grantee shall maintain an office reasonably accessible to subscribers to provide the necessary facilities, equipment and personnel to comply with the following consumer standards under normal conditions of operation: (a) Sufficient toll-free telephone line capacity during normal business hours to assure efficient handling of consumer inquiries. (b) Emergency toll-free telephone line capacity on a twenty-four (24) hour basis, including weekends and holidays. (c) A business and service office, open during normal business hours and adequately staffed to accept subscriber payments and respond to service requests and complaints. Evening and weekend hours should be scheduled as needed to respond to consumer needs. (d) An emergency system maintenance and repair staff, capable of responding to and repairing major system malfunction on a twenty-four (24) hour basis. (e) Grantee shall schedule service and installation appointments within a specified four (4) hour time period, whenever possible. 6 D. New Section 6.6 is hereby added to Ordinance No. 1108 to read as follows: Section 6.6 Requests for Cable Service and Repairs. (a) The Grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Scheduled inter- ruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum use of the system, preferably between midnight and 6:00 a.m. A written log or an equivalent stored in computer memory and capable of access and reproduction, shall be maintained for all service interruptions and requests for cable service. (b) The Grantee shall maintain a repair force of technicians normally capable of responding to subscriber requests for service within the following time frames: (i) System outage: Within two (2) hours, including weekends, of receiving subscriber calls which by number identify a system outage of sound or picture of one (1) or more channels, affecting all the subscribers of the system or a con- siderable number thereof. (ii) Isolated outage: Within twenty-four (24) hours, including weekends, of receiving requests for service from five (5) or more customers in the same geographical area identifying an isolated outage of sound or picture for ore (1) or more channels. (iii) Inferior reception quality: Within forty-eight (48) hours, including weekends, of receiving a request for service identifying a problem concerning picture or sound quality. (c) Grantee shall be deemed to have responded to a request for service under the provisions of this section when a technician arrives at the service location, if necessary, or other- wise begins work on the problem. In the case 7 of a subscriber not being home when the tech- nician arrives, response shall be deemed to have taken place if the technician leaves written notification of arrival. E. New Section 6.7 is hereby added to Ordinance 1108 to read as follows: Section 6.7 Verification of Standards. Upon reasonable notice, the Grantee shall demonstrate compliance with any or all of the standards required in Section 6.4 and 6.6 above. The Grantee shall provide sufficient detail to permit the Grantor to verify the extent of compliance. Non-compliance with Standards. A repeated aid verifiable pattern of non- compliance with the consumer protection standards of Sections 6.4 and 6.6, after Grantee receipt of due notice and an opportunity to cure, may be termed a breach of the franchise, subject to any and all remedies as prescribed herein and applicable law. SECTION 7. Regulation of Rates. A. Ordinance No. 1108 is hereby amended by deleting Sections 7.1 through 7.6, inclusive, in their entirety and replacing said sections with the following: Section 7. Regulation of Rates. During the effective period of the Cable Communications Policy Act, as the same relates to rate regulation, Grantee is not regulated by Grantor in the establishment of rates for any class of service. In the event that'the deregulation of rates, mandated by said Act or any successor or replacement thereto is ever repealed or held unconstitutional, or amended to allow for limited regulation of rates, Grantor reserves the right to reinstitute a rate regulation system as contained in any Franchise, as originally granted. If rate regulation is reinstated, the preceding sentence shall not be construed to mandate or authorize a rate "rollback" to previously existing regulated rates. B. Ordinance No. 1134 is hereby amended by deleting sections 10.1 through 10.9, inclusive, in their entirety, and replacing said sections with the following: Section 10. Regulation of Rates. During the effective period of the Cable Communications Policy Act, as the same relates to rate regulation, Grantee is not regulated by Grantor in the establishment of rates for any class of service. In the event that the deregulation of rates, mandated by said Act, or any successor or replacement thereto, is ever repealed or held unconstitutional, or amended to allow for limited regulation of rates, Grantor reserves the right to reinstitute a rate regulation system as contained in the Franchise, as originally granted. If rate regulation is reinstated, the preceding sentence shall not be construed to mandate or authorize a rate "rollback" to previously existing regulated rates. SECTION 8. Security Fund. Ordinance No. 1108 is hereby amended by deleting section 10.2 in its entirety. SECTION 9. Faithful Performance Bond. A. Ordinance No. 1108 is hereby amended by revising Section 10.3 thereof to read as follows: Section 10.3 Faithful Performance Bond. Upon the effective date of the transfer of the franchise, the Grantee shall furnish proof of the posting of a faithful performance bond running to the Grantor, with a good and sufficient surety approved by the Grantor, in the penal sum of sixty thousand ($60,000) conditioned that the Grantee shall well and truly observe, fulfill, and perform each term and condition of the franchise. Written evidence of payment of required premiums shall be filed and maintained with Grantor. B. Ordinance No. 1134 is hereby amended by revising Section 5.5 thereof to read as follows: Section 5.5 Faithful Performance Bond. Upon the effective date of the transfer of the franchise, the Grantee shall furnish proof of the posting of a faithful performance bond running to 9 the Grantor, with a good and sufficient surety approved by the Grantor, in the penal sum of sixty thousand ($60,000) conditioned that the Grantee shall well and truly observe, fulfill, and perform each term and condition of the franchise. Written evidence of payment of required premiums shall be filed and maintained with Grantor. SECTION 10. Damages and Defense. Ordinance No. 1108 is hereby amended by revising Section 10.4 (a) to read as follows: Section 10.4 Damages and Defense. (a) The Grantee shall hold harmless the Grantor from all damages and penalties arising directly or indirectly as a result of the exercise of the franchise. These damages and penalties shall include, but shall not be limited to, damages arising out of the construction, operation, maintenance or reconstruction of the Cable Communications System authorized herein, whether or not any act or omission complained of is authorized, allowed, or prohibited by this franchise, except to the extent such damages or penalties arise out of or are caused by the negligence or intentional act or omission of the Grantor, or its employees, agents or representatives. SECTION 11. Right to Purchase the System. Section 11.1 of Ordinance No. 1108 is amended by deleting said Section in its entirety and inserting in its place the following: "Upon the revocation, expiration, or earlier termination of a franchise granted hereunder, the Grantor shall be entitled to acquire ownership of the cable system in accordance with the provisions as to new franchises in Section 627 of the Cable Communications Policy Act of 1984." SECTION 12. Right of Inspection of Records. Ordinance No. 1108 is hereby amended by the deletion of Section 11.2 thereof. 10 SECTION 13. Revocation. Ordinance No. 1108 is hereby amended by revising Section 13.1 thereof to read as follows: Section 13.1 Revocation. In addition to any rights set out elsewhere in this ordinance, the Grantor reserves the right to revoke the franchise in a manner consistent with the procedures established in the franchise granting ordinance. SECTION 14. Subsequent Action by State or Federal Aaencies. A. Ordinance No. 1108 is hereby amended by revising Section 14.6 thereof to read as follows: Section 14.6 Subseauent Action by State or Federal Agencies. Should the State of California, the Federal Communications Commission, or any other agency of the Federal government subsequently require the Grantee to perform or cease to perform any act which is inconsistent with any provisions of the franchise, the Grantee shall notify Grantor. Upon receipt of such notification, the Grantor shall determine if a material provision of the franchise is affected. Upon such determination, the City Council and the Grantee agree to negotiate in good faith toward any reasonable and appropriate modification or amendment of the franchise to the extent necessary to carry out the full intent and purposes hereof in relation to the rights and benefits of the City and the Grantee. B. Ordinance No. 1134 is hereby amended by revising Section 16.3 thereof to read as follows: Section 16.3 Subseauent Action by State or Federal Agencies. Should the State of California, the Federal Communications Commission, or any other agency of the Federal government subsequently require the Grantee to perform or cease to perform any act which is inconsistent with any provisions of the franchise, the Grantee shall notify Grantor. Upon receipt of such notification, the Grantor shall determine if a material provision of the franchise is affected. Upon such determination, the City Council and the 11 Grantee agree to negotiate in good faith toward any reasonable and appropriate modification or amendment of the franchise to the t t ex en necessary to carry out the full intent and purposes hereof in relation to the rights and benefits of the City and the Grantee. SECTION 15. Franchise Not Exclusive Ordinance No. 1134 is hereby amended by the deletion of Section 3.5 (a). SECTION 16. Franchise Acceptance Ordinance No. 1134 is hereby amended by the of Section 3.6 thereof. SECTION 17. Liability Insurance and Indemnification Ordinance No. 1134 is hereby amended by revising Section 5.6 thereof to read as follows: Section 5.6 Liability Insurance and Indemnification. Upon the effective date of the transfer of the Franchise, Grantee shall furnish proof that Grantor and Grantee are covered under a broad form policy of liability insurance issued by a company authorized to do business in California. Grantee shall provide evidence that Grantor's coverage is in the minimum amount of three million dollars ($3,000,000). Grantee shall also provide workers' compensation coverage consistent with California statutory requirements. Evidence of such coverage shall be filed with the Grantor. Grantee shall receive thirty (30) days advance written notice of any proposed alteration of a material provision of the insurance policies on which it is carried as a named insured, as well as on coverage required to be maintained by this section. Such advance notice shall also be required as to any proposed or actual cancellation of any such policies of insurance. SECTION 18. Construction Cost. Ordinance No. 1134 is hereby amended by the deletion of Section 6.7 thereof. 12 SECTION 19. System Design and Performance Requirements A. Ordinance No. 1134 is hereby amended by the deletion of Sections 7.1 and 7.2 thereof. B. Ordinance No. 1134 is hereby amended by the addition of new Section 7.1 System Configuration and Channel Capacity. Section 7.1 System Configuration and Channel Capacity. The cable communications system shall consist of single cable trunk which shall be activated to deliver. signals at frequencies up to four hundred (400) MHz. To the extent the cable communication system does not have such capability as of the date of this Ordinance, the System shall be upgraded in order to provide activated service at such capability within twelve (12) months from the transfer of the Franchise to American. Of the channel capacity of such cable system, the Grantee shall allocate and provide fifty-two (52) downstream and two (2) upstream channels for residential use, and two (2) downstream and two (2) upstream channels for institutional use. Upon the activation of such capacity, Grantee may de- activate any second trunk of "dual-cable" which exists within the system. Grantee shall provide additional channel capacity for residential and/or institutional use upon a showing of measurable market interest and economical and technical feasibility. C. Ordinance No. 1134 is hereby amended by revising Section 7.3 to read as follows: Section 7.3 Satellite Earth Stations. Grantee shall provide a reasonably sufficient number of earth stations to receive signals from operational communications satellites that generally carry programs available to the cable system, throughout the life of the Franchise. D. Ordinance No. 1134 is hereby amended by revising Section 7.4 to read as follows: Section 7.4 Caoacity for Interactive Residential Services. Grantee shall provide, in the initial system configuration, the capacity for interactive residential services including, but not limited to, security alarm monitoring, home shopping, energy management, home banking, teletext, information access and retrieval, subscriber polling, video 13 games and one-way or interactive education. All customer equipment necessary for such services, such as addressable interactive converters, home terminals and home detectors, shall be provided to subscribers by Grantee in accordance with established and uniform rate schedules. Grantee shall be under no obligation to provide or activate the services described in the foregoing paragraph, or other similar residential services, unless and until there is a showing of technical and economic feasibility for such service. E. Ordinance No. 1134 is hereby amended by revising Section 7.5 to read as follows: Section 7.5 Canacitv for Institutional Services. Grantee shall provide in the capacity and configuration of the cable communications systems the channels for institutional use designated in Section 7.1 hereof. The system shall provide all features reasonably necessary to maintain message privacy and security, which may include, but not be limited to, addressable taps and converters, data encryption and signal scrambling. F. Ordinance No. 1134 is hereby amended by revising Section 7.6 to read as follows: Section 7.6 cablecasting Facilities. Grantor acknowledges that the cablecasting facilities which have been put in place by Rogers as the same exist as of the date of this Amendment, comply with Grantor's requirement for cablecasting facilities. American shall be required during the term of the Franchise to maintain the cablecasting facilities• at their present level, and to repair or replace such facilities as the need arises to maintain such level. G. Ordinance No. 1134 is hereby amended by revising Section 7.7 thereof to read as follows: Section 7.7 Interconnection. upon a showing of measurable market interest and of economic and technical feasibility, Grantee shall enter into good faith negotiations toward creating an interconnect channel with other cable systems located in Los Angeles County, whether operated by Grantee, its affiliates, or unrelated operators. 14 H. Ordinance No. 1134 is hereby amended by revising Section 7.12 thereof to read as follows: Section 7.12 Technical Standards. Grantee shall comply at all times with the technical standards of the FCC rules and regulations, Part 76, Subpart K. Grantee shall use the technical standards set forth in Exhibit "A" hereto, and incorporated herein by this reference. City may utilize the adherence to the technical standards listed in Exhibit "A" as one measure of Grantee's quality of service. I. Ordinance No. 1].34 is hereby amended by revising Section 7.13 thereof to read as follows: Section 7.13 Performance Testing. (a) Grantee shall perform all tests necessary, to comply with, and to determine compliance with, the technical standards established by the FCC. Grantee shall also perform all tests necessary to determine compliance with the technical standards set forth in Exhibit "A". In addition, at any time after commencement of service to subscribers the Grantor may request that the Grantee perform additional tests on the basis of substantial numbers of complaints received or other evidence indicating an unresolved controversy or significant noncompliance, and such tests shall be limited to the particular matter in controversy. The Grantor shall endeavor to arrange its requests for such special tests so as to minimize hardship or inconvenience to Grantee or to the subscriber. The costs of any such tests, and any necessary retests, shall be borne by Grantee. SECTION 21. Renewal or Extension. New section 14.5 is hereby added to Ordinance No. 1134 to read as follows: 14.5 Renewal or Extension after Transfer. As part of the transfer approval process, American has requested an extension of the cable communications franchise. Grantor declined to extend the franchise at that time, but did agree to entertain an application for renewal or extension after American has operated the system for a period of twenty four (24) months. Grantor shall promptly review said application, if filed, and then set 15 appropriate public hearings. The primary focus of Grantor's review will be the performance of American in operating the system. Grantor shall review the quality of service as indicated by the number and type of service complaints and the results of periodic system performance tests. At the time such an application for renewal or extension is considered, Grantor shall also consider reducing the amounts of security (performance bonds and/or letter of credit) deemed necessary for the balance of the franchise term. If Grantor determines that Grantee has complied with the provisions of the Franchise, it shall grant a minimum extension of six (6) additional years from and after the scheduled expiration of the franchise. If Grantor determines that there are areas of performance that are not satisfactory at the time such application is considered, it shall make findings as to such deficiencies and continue the consideration of the application for an appropriate period, not to exceed 120 days, for Grantee to cure said deficiencies. SECTION 22. Fiscal Year. Section 5.9 of Ordinance No. 1134 is hereby amended to read as follows: Section 5.9 Reporting Periods. The fiscal year of Grantee shall be from July 1 through June 30. All reports and payments required of Grantee by Grantor, whether annual or quarterly, shall be made to coincide with Grantee's fiscal year. SECTION 23. Support for Local Programming. Ordinance No. 1134 is hereby amended by revising Section 9.2 thereof to read as follows: Section 9.2 Grantee Support for Local Programming. Grantee shall provide the following or equivalent support for local programming.: (a) Grantee shall provide free of charge con- sulting and training services on production and program format and the use of public ac- cess, governmental and educational channels. (b) Grantee shall offer and conduct a free workshop, not less than four times a year to provide training in the technical and con- ceptual skills required for community tele- 16 vision production. Announcements of the date, time and place of said workshops shall be made over the public access and community affairs channels no less than six times daily for a two-week period prior to the workshop. Notice of the workshop shall also be published in the subscriber's program guide or a newspaper of general circulation in City. Attendance at and completion of such a workshop or evidence satisfactory to the Grantee of equivalent training or experience may be a prerequisite to using production facilities and equipment. (c) A full-time, professional staff shall be employed by the Grantee to conduct training programs, to promote the public use of the public channels, community affairs, and other cablecasting channels, to advise such users on the programming and production matters and to otherwise fulfill the Grantee's community programming obligations hereunder. (d) Grantee, in conjunction with access users, community organizations and volunteers, shall produce and cablecast on the system, no later than twelve (12) months following the date of transfer of the Franchise to American, an average minimum of ten (10) original hours of community programming per week. It is the intent of Grantor and Grantee that "community programming" shall be defined as programming originating in or concerning the cities previously franchised to Rogers Cablesystems of California, Inc. (i.e. Bell Gardens, Downey, Lynwood, Paramount, Santa Fe Springs, and La Mirada). If the average number of community programming hours produced and cablecast falls below the number stipulated, Grantor shall have the right to require Grantee to increase its community programming production staff within ninety (90) days of written notice of non-compliance. For the purposes hereof, the measurement of average number of hours produced and cablecast shall be calculated twice yearly in February and July, and shall include the period between the previous July 1 and December 31 and January 1 and June 30 respectively. Grantee shall make expenditures in support of community programming each year up to 2% of its gross revenues related to the operation of the system for the previous years. 17 J t (e) Grantee shall consult with of Grantor regarding ideas for local programming. In the event that Grantor desires programming that Grantee feels would not interest its audience in the Southeast Los Angeles County area, Grantor may contract for production and narrowcasting of such programming to its residents. Grantee shall perform such production and broadcast tasks at its cost. (f) Grantee shall maintain the availability of an access studio in Lynwood. Grantee may relocate the studio so long as it remains within the corporate limits of Lynwood. Grantee shall have the possession and ownership of the equipment presently in said studio. Grantee shall maintain, and replace as necessary, the cablecasting equipment in the Lynwood studio. SECTION 24. "Most Favored Nation" Clause. New Section 18 is hereby added to Ordinance No. 1134 to read as follows: Section 18. "Most Favored Nation" Clause. If, within one year after the effective date of this ordinance, American is approved as a transferee by any of the following cities: Paramount, Bell Gardens, Santa Fe Springs or Downey, on terms and conditions that Grantor deems would be more beneficial to it, Grantor may elect to accept, on a pro rata basis, the total terms and conditions offered to any of the other cities mentioned herein. Grantor shall have only the options of (1) keeping the terms and conditions contained in this ordinance and the accompanying agreement or (2) rejecting the terms and conditions contained in this ordinance and the accompanying agreement and instead, accepting, on a pro rata basis, the terms and conditions offered to any of the other cities herein mentioned. Paramount's interactive demonstration program and the Lynwood access studio are special incentives that are available only to those cities and to which this Section shall not apply. 18 a SECTION 25. Right to Purchase the System. Ordinance No. 1134 is hereby amended by deleting Section 15 in its entirety and replacing said section with the following: Section 15.1 Riaht to Purchase System. Grantor, in compliance with the Cable Communications Policy Act of 1984 and California law governing eminent domain and upon payment of fair market value, may condemn the Franchise, property and plant of Grantee. SECTION 26. Subsequent Ordinances. Ordinance Nos. 1253 and 1274 are hereby repealed in their entirety. SECTION 27. Installation of Cable Television Facilities in new Subdivisions. Ordinance No. 1108 is hereby amended by adding the following provision as Section 5.11 thereof: Section 5.11 Installation of Cable Television Facilities in New Subdivisions. In the case of a new subdivision, each cable television system operator granted a franchise by the City to service such area shall be given reasonable advance notice and reasonable access and opportunity to place its transmission and distribution facilities in utility trenches opened by such subdivider. Further in such case, in the event more than one cable television system operator is so franchised, each such operator shall be given equal access and opportunity to place its underground facilities in such trenches. The cost for initially opening such trenches and providing access thereto to such cable television system operators shall be borne by the subdivider. SECTION 28. The Cable Communications Policy Act of 1984 contains several provisions treating cable television system franchises in effect on the date of the Act differently than franchises granted after the enactment of the Act. By enacting this Ordinance, and approving the transfer of an existing franchise to American Cablesystems of California, Inc., neither Grantor nor Grantee intend the Franchise be construed as a new Franchise outside the scope of the "grandfather" clauses of the Cable Communications Policy Act. 19 ~. - .. SECTION 29. Franchise Fee. .Section 5.2 of Ordinance No. 1134 is hereby amended to read as follows: Section 5.2 Franchise Fee. Following the transfer and acceptance of the Franchise, the Grantee shall pay to the Grantor a franchise fee of five per cent (5%) of gross revenues. These payments shall be computed and paid on a quarterly basis, and due no later than thirty (30) days following the end of each quarter of Grantee's fiscal year. Grantee shall make said franchise fee payments to Grantor without any offset or credit for any franchise fee prepayment made by any predecessor grantee. SECTION 30. The City Clerk shall certify to the adoption of this Ordinance and shall clause the same to be processed in the manner required by law. nr PASSED, APPROVED and ADOPTED this ~~ day of October , 1987. ~--- ~~-MAYOR ATTEST: CITY CLERK 20