Loading...
HomeMy Public PortalAboutOrd. 1134 ORDIN?~1`+CE NG. _71 "t~ Ali GhDINP.NCE granting a franc'r,ise to California GablesystemS, Inc., lt5 sUCCeSSOrS, anG aSS1Q P.S t0 USE? the Streets and public ways within the City of Lynwooc for 'the operation of a cable television s_tstem for fifteen years under certain terms and conditions and fixing an effective date; and to otherwise ^rovide with respect thereto. iiiE CITY CGi~~i;;CIL GF TEE CITY CF LY'~G:~CGG LGES G:.DAIi~ nS FCLLOwS: SECT'IGP+ 1. TITLE This Crdinance shall be kn.cwn and may be cited as the "City of Lynwood California Cablesystems, Znc., Cable Television Franchise Ordinance". SECTICCd 2 INTENT The City Cuur.cil of the City of Lynwood hereby finds, determines and declares: (a) The City Council preciously enacted Crdinance No. 110fi, which authorized the City to grant one or more non-exclusive, revocable franchises to operate, construct, maintain and reconstruct a cable television systes~',aitP,in the City; and -i- (b) The City, along with six other cities in the regicn, sought and received applications for a regional cr local cable television system; and {c) After cue evaluation of the applications by the Council, its staff and ccnsultar.t, and after the receipt of public input at meetings of the Council, the City has determined that it is in the best interest of the City and its residents to grant a non-exclusive, revocable Franchise to California Cablesystems, Inc.; and {d) The award of this Franchise is made on the basis of the folloe~ing criteria revie~red during the evaluation prccess: (1) The euality of service; and (2) The subscr±ber rates; and (3) Fotential incorr.e to the City; and (4) Experience of the applicant; and (5) Financial responsibility of the applicant. (e) Subsequent to the decision to jointly request proposals for a regional cable television syste;a, the City of Lynwood has determined to award its own franchise at. this time; and (f) the decision of the City of Lynwood to award an individual franchise as well as the decision of one of -~- the original group of cities to witr,draw from further participation on a joint basis, made it necessary to require the Grantee to r:odify its proposal to support local programming „eels; ar.d {g) The modification to the support for local programming needs will allow for annual re-assessment cf needs by a local, non-profit corporation, which will i,ave the authority to determine the level of grants to local groups for access and other purposes as well as the authority to contract with Grantee or ethers for technical assistance and equicment. SLC'I'IGty' 3. GFANT CF F'FiP.IyCHZSE 3.1 Grant. California Cablesystems, Inc., a corporation with its principal place of business at 1E052 Beach Boulevard, hunting ton Beach, California 92647, hereinafter called the Grantee, is hereby granted for itself, its successors and assigns, subject to the terms and conditions of this Grdinance, the Franchise, authority, right, and privilege-, for a fifteen-year period fro.,. and after the effective date hereof, to construct, operate, maintain and reconstruct a cable television system within the streets and public ways within the City of Lynwood. -3- Grantor ag_^ees that the tra;sfer of the Franchise to another subsidiary cortrolied by U.S. Cablesystems, Inc. resulting from the corporate reorganization of U.S. Cablesystems, Inc. pursuant _.o the acquisition of U9 Columbia, Inc., shall not require Grantor's prior approval. 3.2 Right of Grantor to Issue Franchise. Grantee by its acceptance of the Franchise shat acknowledge and accept the right of Grantor to issue a Franchise and shall agree that it shall not now or at any time hereafter challenge this right in any way or in any City, State or Federal court. 3.3 Effecti~ae Date of Franchise. The effective date of the Franchise shall be October 15, 1981. 3.4 Duration. The term of the Franchise shall be fifteen (15) years commencing on October 15, 1981, and ending on October 14, 1996. On such date the Franchise shall be of no force and effect unless previously extended cr renewed in accordance with the provisions of Section 14 i:ereof. 3.5 Franchise blot Frclusive. Thi s Franchise s.iall not be construed as any limite.tion upon the right of the Grantor, through its proper officers, to Brant to other persons or corporations rights, privileges, or authority similar to or .! different from the richts, privileges, ar,d autt;ority herein set forth, in the same or other streets and public ways or public places by franchise, perr.:it, or otherwise, provided, however, that such additional grants shall not operate to materially modify, revoke or terminate any rights granted to Grantee herein. (a) If within one year after the effective date of this Ordinance, Grantee is awarded a final, binding cable television franchise by any municipality ir. the counties of Los Angeles, San Eernardino, Grange, Fiverside, San Diego, or Imperial, the terms and conditions of which Grantor deems would be more beneficial to it, Grantor may elect to negotiate with Grantee to obtain such terms ar.d conditions, provided, however, that such negotiations shall take into account all relevant facts and circumstances, including but not lir~itep to the tect:nical and economic feasibility of such terms and conditions and tY,e rates and charges for services. if Grantor elects to enter into such negotiations, Grantee shall not be penalized for ary delays ir, its completion of construction due to the pendency of the negotiations. 3.6 Franchise Accectance. The Grantee and its parent Corporation shall, within sixty (6 G) days after passage of this Ordinance, file in the office of the City Clerk a written acceptance of this Grdir,ance executed by Grantee and its Farent Corporation, in a form approved by the City Attorney. Zhe Farent Corporation, by executing and filing the Acceptance, guarantee=_ performance by Grantee of all Grantee's obligations hereunder and agrees to perform those obligations on Grantee's behalf, if so ordered by Grantor, in the event Grantee for any reason which is within its control or reasonably foreseeable fails to perform them. Failure of Grantee and its Farent Corporation to accept the Franchise as provided herein shall cause the Franchise to become null and void, If cities from the group of cities of Eell Gardens, Downey, Lynwood, Paramount, Fico fiivera and Santa Fe Springs rer.resenting fewer than a combined total of 50,000 households have enacted Grdinances granting Franchises tc California Cablesystems, Inc. to operate, construct, maintain, and reconstruct. a cable television system by tr.e effective date cf this Franchise as set forth in Section 3.3 hereof, Grantee and Grantor shall renegotiate the terms and conditions of this Franchise. 3.7 Use of Public Streets and Ways. F'or the purpose of operatinc and maintaining a cable television system in the -6- City, the Grantee may erect, install, construct, repair, replace, reconstruct, and retain in, on, over, under, uron, across, and along the public streets and ways wit`,in the City such wires, cables, conductors, ducts, conduits, vaults, manhcles, amplifiers, appliances, pedestals, attachments, and other property and equipment as are necessary ar:d appurtenant to the oaeration of the Cable Communications System. Fricr to censtructicn or alterations, however, the Grantee shall in each case file plans with the appropriate City agencies and utility companies, and receive written approval before proceeding. SECTI02d 4. DEr'INITIGtiS For the purposes of this Grdinance, the follcwing words, terms, phrases and their derivatives shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always mandatory ar.d not merely directory. ~.1 "City" means the City of Lynwocd, ar.d all *_he territory ~.aithin its present and future corporate boundaries. -7- l ORDIiANCE 2~:C. 1134 fl.~ ~~. AN ORDI'~AT?CE GRA2dTING A P;;Gt:-L~CL'uSIL'E FP.Ai~CI3ISL- :~:' r'ALIrGRi`1'lA Ci->ELESYSTEMS, Ir+C. , TG OPGRP.'IE A CABLE TELL~ISICi~ SYS"_Ehi IIO 1'HE CITY GF LYitidCG~' AL•D SL-T1'I2vG FCf:Tfi CGLaEITIO2tiS :;CCCDiPF>I`iY"I\G THE GS:AZaTIu;G GF `Ii3E FBAcCF_ISE. r 4.2 "City Council" means the Council of the City of Lynwood, or such representative person or entity as may be designated initially or at some future date to act on cable television matters. 4.3 "FCC" means the Federal Communications Ccmmission, cr a designated representative. 4.4 "Cable Television Svstem", "Cable Communications System", "Cable System" or "System" sometimes referred to as "Cable TV Systems", "CF,TV System" or "Broadband Communications ietwork", means a system of antenna cables, amplifiers, towers, microwave links, cablecasting studios, and any other conductors, converters, equipment or facilities, designed and constructed for the primary purpose of producing, receiving, amplifying, storing, prccessing, or distributing audio, video, digital, or other forms of electronic or electrical signals. 4.5 "Grantee" means the person or entity to which a franchise henceforth is granted for the construction, operation, maintenance, and reconstruction of a cable television system, and the lawful successors, transferees, or assignees of said corpcratior, or entity. -5- 4.6 "Granter" means the City of Lynwood represented by the City Council acting within the scope of its jurisdiction. 4.7 "Subscriber" means any person, firm, corporation, or other entity who or which elects to subscribe tc, for any purpose, a service provided by the Grantee by means of cr in connection with the cable television system. 4.6 "Residential Subscriber" means a subscriber who receives a service in an individual dwellino unit, where the service is not to be utilized in connection with a business, trade, or profession. 4.5 "Commercial Subscriber" means a subscriber who receives a service in a place of business, where the service may be utilized in connection with a business, trade or profession. 4.10 "Agency Subscriber" means a subscriber who receives a service in a government or public agency, school, or non-profit corporation. 4.11 "Frocrammer" means any person cr entity who or which produces or otherwise provides program material or information for transmission by video, audio, digital, or -9- other sicnals, eithier live or from recorded taxes or other sterace media, tc subscribers, by means cf the cable television system.. 4.12 "Channel" means a six megahertz (M}z) freeuency bane, which is capable of carrying either or.e standard video signal, a number of aucic, digital cr other non video signals, or some combination of such signals. 4.13 "Local Crigir.ation Channel" rneans any channel where the Grantee is the only designated programmer, and provides video prcgra;r~s to subscribers. 4.14 "Public Access Channel", "Community Access Channel" cr "Ccmrunity Channel" means any channel where any member of the general public or any non-commercial crganizatior. may be a programmer, without charge, on a first-come, first-served, non-discriminatory basis. 4.15 "F.C]UCat10Ra1 Channel". °r:C:UCatlOndl ACCe~.:, Channel" means any channel where educational institutions are the only designated programmers. 4.16 "Government Channel" or "Government Access Channel" means any channel where local government agencies are the only desicnated programmers. -10- 4.17 "Leased Channel" or "Leased Access Channel" means any channel available for lease and progra,<<ming ty persons or entities other than the Grantee, includir•g, at Grantee's option, those pcrtions of the other access char.•neis not in use by their designated proerammers. 4.15 "Oven Channel" means any charnel that can be received by all subscribers, without a premium charge. 4.19 "Private Channel", OL "C10Sed-Girt ii J.t Channel" mearis any channel wt,ich is available only to subscribers who are provided with special converter cr terminal ecuipment to send or receive signals or. that channel. 4.2C "Converter" means an electronic device which. converts signal carriers from one form to ancther. 4.21 "Broadcast Signal" means a television or radio signal that is transmitted over-the-air to a wide geographic audience and is received by a cable television system off-the-air, ty microwave link, by satellite receiver, or ty other means. 4.22 "Nor:-broascast Signal" means a signal that is transmitted ty a cable television system and that is not involves in an over-the-air troascast transmission path. -11- 4.23 "Cablecast Sicnal" means a non-broadcast signal that originates within. the facilities of the cable television system. 4.24 "Basic Subscriber Television Service" means all subscriber services provided by Grantee including the delivery of broadcast signals, covered by tre recular monthly charge paid by all subscribers, excluc:ing optional services for which a separate charge is made. Basic Subscriber Television Service may be offered to subscribers in one or more tiers, or combinations of programs. 4.25 "Easic Subscriber Radio Service" means the provision to all subscribers of such audio services as the retransmission of broadcast Fhi radio signals, the retransmission of stsortwave, weatl-,er, news, time and other similar audio troadcast channels, and the transmission of cablecast F6; radio signals, as permitted by the FCC. 4.26 "Institutional Service" means such video, audio, data an8 other services provides to institutional users on ar. individual application, private chennel basis. These may include, but are rot limited to, two-way video, audio or digital signals among institutions, or from institutions to residential subscribers. -12- 4.27 "Adcitional Subscriber Service" means any service not included in "Easic Subscriber Television Service", or "basic Subscriber fiadio Service" or "Institutional Service", including, t)Ut nOt 11IDited t0, "Pay-Cable". 4.28 "Fay-Cable" or "Fay-Television" means the delivery tc subscribers, over the cable television system, of television sicnals for a fee or charge to subscribers ever and above the charge for basic subscriber service, or. a per program, per char.r.el, or other subscription basis. 4.ZS "Streets and Fublic Svavs" means the surface cf and the space above and below any public street, sidewalk, alley, easement, parkway, right-of-way, or other public ways of any tyre whatsoever, now or hereafter existing as such within the City. 4.30 "F.esident" means any person residing in the City as otherwise defined by applicable law. 4.~1 "b;onitoring" means observing a one-way ccr::munications sicnal, or the absence of a signal, where the observer is neither the subscriber nor the programmer, whether the signal is observed by visual or electronic means, for any purnese whatsoever. -ls- 4.32 "TacLing" means observing a two-way communication signal exchange, where the observer is neither of the communicating parties, whether the exchange is observed by visual or electronic means, for any purpose whatsoever. 4.33 "Year" means a full calendar year commencing from the effective cafe of the Franchise, as provides ir, section 3.3 hereof. 4.34 °SeCtlOn" means any sectlOn, SubSeCtlOri, Or prOV1S1Gn of this Grsinance. 4.35 "School" means any public educational institution including arimary and secondary schools, colleges and universities and all similarly situated private and parochial educational institutions which have receives the appropriate accreditation from the State of California, and where recuired, from other authorized accrediting agencies. 4.36 "Franchise Aareement" means a siones ans notarized statement on the part of both Grantor and Grantee accepting and agreeinc to all cf the provisions of the Franchise herein granted, including referenced specifications, franchise ap~:lications, and othe_* related material. The Franchise Agreement may modify terms of this Ord nance by mutual agreement with an} such modification confirmed formally by appropriate ordinance amenement. -14- 4.37 "Community Access Corporation" means the non-profit, public corporation, hereinafter defined, whose duties shall include the financing and management of the Community and Fublic Pccess Channels. 4.38 "Gross Annual Revenues" means the annual gross revenues received by the Grantee from all sources of operation of the cable television system within the City limits of Grantor including any installation charges and any interest on deposits, but shall exclude any deposits and any sales, excise or other taxes, cr other payments collected for direct pass-through to local, state or federal government. 4.39 "Ferson" means any corporation, partnership, proprietorship, individual or organization authorized to do business in the State of California, or any natural person. SECTION 5. GENERAL RE~UIREh1ENTS 5.1 Governinc Requirements. Grantee shall comply frith tree reouiremer.ts of this Ordinance and Orc:inarce tdo. 1108, and all offerings contained in Grantee's Franchise P.pplication except as specifically modified by this Grdinance and/or the Franchise Agreement. In the event o£ any conflict, the -1~- provisions of this Ordinance shall first govern, followed by the provisions of Ordinance No. 11G8, the Franchise Agreement and the Grantee's Franchise Application in that order. 5.2 Franchise Fee. Following the issuance and acceptance of the Franchise, the Grantee shall pay to the Grantor a franchise fee of five percent (5~) of gross annual 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. 5.3 Advance on Franchise Fees. Commencing caith the effective date of the rranchise, Grantee shall initiate a one-time franchise fee payment to Grantor of $52,325. This payment is to be considered an advance of payments due in later years and shall be credited as franchise fees become due. Such advance fee shall be expended for regulatory costs, and shall not be recoverable from the Grantor in the event that the aggregate of future franchise fees does not exceed the total amount of the advance. S.a Letter of Credit. Withia thirty (3 G) days of the effective date of the Franchise, Grantee shall deliver to Grantor an irrevocable and unconditional letter of credit in form and substance acceptable tc Grantor, from a banK -16- M approved by Grantor in the amount of $1GO,000. Such a letter stall be maintained cr. deposit thrcughout the term of this Franchise. The use of the letter of credit by Grantor to sa*_isfy any penalties shall be in full compliance with the provisions of Sections 6.3, 12.4 and 17 of this Ordinance. 5.5 Faitr,ful Ferformance Eond. Lpon the effective date of the Franchise, Grantee shall furnish proof of the posting of a faithful performance bond, which may be a corporate surety bona, running to the Granter, in the penal sum of w600,000. Zhe faithful performance bend shall be a form. approved by the City fittorney. upon demonstration by the Grantee to t;:e satisfaction of the Grantor that fully one-half of the construction to be undertaken in the City pursuant to the Franchise P.greemer.t has in fact been completed, the bond shall be reduced to a sum of ~a300,000. Lpon der:~cnstratior. by Grantee to the satisfaction of Grantor that all the construction to be undertaken in the City pursuant to tine Franchise Agree,~~ent has in fact been completed and the sys*_em is fully operational, the bond shall be reduced to a sum of $60,OGG. Such bond for a sum of $60,000 shall be maintained by the Grantee throughout the term of this Franchise. 5.6 Liability Insurance and Zndemnificatien. Lpon the effective date of the Franchise, Grantee shall furnish -17- ~ t ~. proof that Grantor and Grantee have beer. added as named insureds to the liability insurance Policy. Said policy shall remair. in force, in the minimum amou;,ts of $11,GCO,OUG, in t'r,e areas cf general and owners liability and property damage. Grantee shall also provide worker's cor,~pensation coverace consistent with California statutory recuirements and motor vehicle insurance coverage of $1C,000,600. Insurance coverage during system. construction, fire coverage an6 extended coverage shall all provide for lOC€ coverage of the replacement value of the assets. Grantee shall receive 30 days written notice prior to any alteration of a material provision cf the insurance or any reduction in coverage of the insurance by this Section. Such notice shall also be reauired in the case of cancellation of any coverage required by this Section. The liability insurance colicy shall be maintained throughout the duration of this Franchise, with a copy filed with Grantor. 5.7 P.ecoverv of Franchise Costs. (a) Grantee, within sixty {00) days after receipt from Grantor of a written itemization, shall reimburse Grantor for its reasonable costs incurred during the franchise process to the extent not recovered by application fees. -ls- (b) The Grantor shall be entitled to er,ploy the services of consultants as necessary to aid in the analysis of all matters relative to the rranchise. If Grantor and Grantee so agree prior to the hiring of the censultar.t, all reasonable fees of the consultant shall be equally borne by both parties, regardless of the outcome of any specific matters under consideraticn. 5.6 Fayment to Grantor. No acceptance of any payment shall be construed as an accord that the amount paid is .in fact the correct amount, nor shall such acceptance of payment be construes as a release of any claim the Grantor may have for further or adcitional sums payable under the provisions of this Grdinance. A11 amounts paid shall be subject to audit anc rr-computation by the Grantor. 5.9 keporting Ferioas. The fiscal year of Grantee shall run from September 1 to August 31. All reports and payments recuired of Grantee by Grantor, whether annual or quarterly, shall be mace to coincide with Grantee's fiscal year. -13- SECTICh b. CONSTkCCTIOiv Ail; SEk~'ICE RE~liIkEMET:TS b.l General. Subject to the provisions of Section 17 hereof, the Grantee shall r.eet or exceed all the material censtruction and service requirements set forth in this Grdinance and in addition shall meet or exceed those material service reauirements set forth in Grantee's Franchise Application. The Grantee shall meet the service requirements (as set forth in Section E) regardless of whether subscriber penetration and/or revenue projections contained in the Application Drove to be correct. Zt is the Grantor's intent that Grantee shall not be penalized for a:inor breaches cf the terms hereof so long as its best efforts are r,:aintained. 6.2 censtruction Schedule. Grantee shall complete system construction ar,d offer service to all residents within twenty-one months after beginning construction. Grantee acknowledges that it has valid pole line attachment agreements in force with the appropriate utilities. Grantee s;:all begin filing for pole make-ready permits with the utilities within bC days cf the effective cafe cf the Franchise and complete all such applications within 9U days of the effective date of the Franchise. For purposes of this Section, construction sP,all be deemed to have commenced with the issuance o*_ the first pole release or -2C- clearance from a utility. Grantee anticipates a period of 5 months after the effective date cf the Franchise will be sufficient to acuire all necessary permits and clearances recuired to begin ccnstruction. After beginnine ccnstruction, Grantee shall complete approximately thirty-five percent {35~) of the cable system in the first year, and sixty-five percent (65~) in the second year. Construction shall be concucted in accordance with Grantee's proposed construction schedule attached hereto as Schedule A. Service shall be offered to all residents and institutions within an area no later than ninety (~0) days after the cables have been energized therein. E.3 Fer.alties for Dela,~ in Construction. Grantor may at its sole option apply any of the following penalties in connection with delays in system constructioh due to causes which are within Grantee's reasonable control cr which are reasonably foreseeable. (a) Seduction in the duration of the Franchise on a month-for-month basis for each month of unexcused delay exceeding three (3) months; {b) Forfeiture of faithful performance fonds for unexcused delays exceeding one year; -21- (c) Termination of the Franchise for unexcused delays exceeding eighteen. (lc) months. (d) If, after nine (S) m,enths of the effective date of the Franchise, Grantee has r.ot commenced construction and Grantee Ices not commence construction within thirty (30) days of written. ^etice of such failure from Grantor, subject to the procedural provisions of Section 12.4, Granter may impose a financial penalty not to exceed Five Thousand Dollars ($5,000) per day for each day the Grantee fails to initiate construction. Grantee shall make a good faith and diligent effort to obtain all necessary permits and clearances. h~ithin two (2) months, four (4) months, six (6) months, ar,d eight (£) months after tree effective bate of this Franchise, Grantee shall report to Grantor its estimate of the initial construction. bate. The initial construction date estimated within nine (5) months from the effective date of the Franchise may be uses by Grantor as the presumptive construction starting da*_e, with all construction requirements based on that date provided, t,owever, that Grantee map adjust its estimated initial construction date upon a showing of delays which are beyenb its reasonable control or which are not reasonably foreseeable. -22- For any schedule delay that may occur, the burden of proof shall be on the Grantee to demonstrate that such delay was beyond its reasonable control or was not reasonably foreseeable. `Ihe imposition by Grantor of any such penalties shall be in acccrdance with the procedures set forth in Section 12.4 hereof. E.4 Fight of Znscecticr, of Cor.structicn. Grantor shall have the right tc inspect all construction or installation work performed subject to the provisions of the Franchise and to make such tests as it shall find necessar•:~ to ensure compliance with the terms of the Franchise and ott-,er pertinent provisions of law. 6.5 Precision of Fesider.tial Service. Subject to the provisions of Section 10.3 hereof, Grantee shall provide all residential services to all residents of the City at ur,iforr:. installation chances and monthly rates, within the schedules of Section E.2 hereof. New residences ir. active cable areas shall be offered service within ninety (5 C) days after occupancy. 6.6 Provision of Institutior:al Services. Grantee shall provide access to all services on the Institutional i:etwork to all accredited public agencies, public. and private educational institutions, and hospitals and to such lawful, -23- licensed commercial ventures within the Citv which are passed by the network. 6.7 Construction Cost. Grantee has estimates in its franchise apclication that the construction cost of the cable television syster: servinc the City and adjacent communities will be as follows: Antennas, Zowers and Microwave headend and Dubs $ 1,740,000 satellite Earth Stations Distribution Flant 13,335,060 Drops, Converters & Customer Fremises Ecuipr;ent 14,2S0,000 Buildings and Lana --- Leasehold Ircprcvements 157,606 Cablecasting Eeuicment 3,775,000 Test Ecuipment, Tools & Spare, Farts 251,060 Vehicles is5,000 Other 1,515.600 TOTAL $36,165,000 Grantor ar:c Grantee jointly ackr.owlesce that Grantee's projected investment was a factor in the evaluation cf franchise acplications. Grantee acrees that if *_he actual system construction cents are more than ten percent {10€) below the estimates costs, Grantor may at its sole optics -24- require Grantee to provide additional facilities to the extent of the difference between. the actual construction costs and the estimated construction costs less ten percent (10~) thereof. In the evert the actual construction costs exceed the estimated construction costs by more than ten percent (10€), Grantor shall give due consideration to rate increases requested by Grantee to the extent of the difference between the actual construction costs and the estimate6 construction costs plus ten percent (10€) thereof. Grantee agrees to provide such ecuipment and services as were proposed in its Fpplication or the equivalent thereof. In the event that equivalent ecuipment is proposed in lieu of major technical components of the system, Grantor shall be given fifteen (15) days advance notice thereof c,"ith appropriate e};planations therefor. Grantor's approval of such substitution proposals shall not be unreasonably withheld and its decision shall be given to Grantee, in writing, within: fifteen. 15) day= of receipt of Grantee's notification. 6.E Erection of 'roles. If adc.itio:al poles ir, an existing utlllty SySteii rCllte aLe reCU1L2C, GLantee sha 11 neCGtlate with the utilit cor:aan. fx =he installation of the needed poles or Grantee may at ins o_~tion, subject to the prior approval of the Grantor, cc~s=root necessary poles. The Grantee shall negotiate the lease of pole scace and _-~_ facilities from the existing pole owners for all aerial co,nstractior., under mutually acceptable terms and conditions. Zhe Grantor shall utilize its best efforts tc assist in arrivinc at ar. equitable pole rental agreement. 6.9 Zrimming of Trees. In the conduct of its business, Grantee shall be aliccved to trim trees in orcer to provide space for its facilities. Such tree trimming shall be done in compliance with existing City Cscinances ar,d in a safe and efficient manner with due regard for the health of the trees involved. Grantee shall exercise diligence to assure that trees are trimmed as little as possible and follow practices desiened to cause the minimum. amount of trauma to the trees being trir-,;med. All refuse created by tree trir,:r,ir.g shall be rescued and disposed of by Grantee in an acceptable manner. 6.10 Cooperation of Grantor. Grantor plecges to fully assist Grantee in obtaining all licenses, permits, certifications, release=_, authorizations and/or agreements required by governmental agencies or utilities for the construction ar.d operation of system. Grantor understands that time may well be of the essence in obtaining the aforementioned permissions and aorees to provide its assistance with all due diligence. Grantor also acrees to -2E- ,i evaluate and act on all Grantee applications for- Grantor pers,its, licenses, certificates, releases, authorizations and/or agreements with all due spew ans not to unnecessarily withhold the Granting cf same. SECTIGn %. SyStEr; DESIGN A1;D ?EFFCkN.AhCE kECliIkEI~iE2:T5 7.1 System Configuration. The cable communications system shall consist of at least two in'*_erconnectes networks, a dual-trunk residential network and a single-trunk institutional network. 5oth networks shall provide activates bidirectional communications capability in their initial configurations, except that one trunk cable of the residential network may be inactive initially. 7.2 Channel Capacity. T1-,e cable system shall be installed to deliver signals at frequerLCies up to four hundred (40C) megat;ertz (i•:&z) , with specifizd channel capacity as indicates below. Cable Pietwork Resisentiai (each cable) kesidential (each cable) Institu=ior.al Institutional Single TV Channel Signal Direction Frecuency Fanee Capacity Cuttound 59-33G D1hz G2 plusrT: bang, Inbcund 5-32 hSHz 4 videc equivalent Cuttcund 150-300 hlhz 25 Inbound 5-108 Mi.z li -2i- t.3 Satellite Earth Stations. Grantee shall provide four (4? earth satellite stations initially. Grantee shall provide a reasonably sufficient member of earth staticr.s to receive signals from all operational communications satellites that generally carry programs available to the cable system, throughout the life cf the Franchise. 7.4 Car:acitV for Interactive Fesidential Services. Grantee sh".all provide, in the initial system conficuration, the capacity for interactive residential services including, but nct limited to, security alarm monitoring, home shopping, energy management, home banking, teletext, information access and retrieval, subscriber polling, video games and or.e-way or interactive education. P.11 customer equipment necessary for suer, services, such as addressable interactive converters, home terminals and home detectors, shall be provided to subscrigers by Grantee in acccrdance with established ar.d uniform rate schedules. 7.5 CaFacity for Institutional Services. Grantee shall provide, in the initial system configuration, the capacity for one-way and interactive institutional communications services including, but not limited to video, voice and data communication=. the system shall have the capacity to Provide a full range of channelization and multiplexing -2E- ~. options to meet the needs of the institutional users. '!'he system reasonably necessary to maintain security, which may include, but addressable taps and converters, scram'oling. trcadest spectrum of shall prcvide all features message privacy and is not limited tc, data encryption and signal Grantee shall prcvide and r.~air,tain all Grantee crovided customer-premises ecuipmer.t necessary to interface with the cable comr.;unications system at a cost to be determined by Grantee. Equipment commercially available and not directly linked to the cable system, such as data terminals, video cameras and microphones, may be supplied by Grantee or, proviced no harm is caused or results to t'r.e cable coms:unicatior,s system, by the cable system user. i.b Cablecasting Facilities. Grantee shall provide the followinc cablecasting facilities er their equivalent far the cable system serving the City and neighboring communities, at. the estimated costs shown: Estimated Facility Quantity Cost Local Grigir.ation and 2 $256,000 Access Studios Motile Prcduction units 2 25C,OG0 Playback Control Facilities Lot 324,500 Stereo F'•; Facilities 1 15,000 Editing Facilities Lot 105,000 TCTAL $°44,500 -2:- 6 Grantee a5rees that if the actual construction costs of tt,e cablecasting facilities are more than ten percent (10~) telow the estimated construction costs, Grantor may at its scle cption recuire Grantee to prcvide assiticnal facilities to the extent of the difference between the actual construction costs and the estimates construction costs less ten percent {10€) thereof. In the event the actual construction costs exceed 'the estimated construction costs by more than ter, percent (10$), Grantor sF,al1 Bice due consideration. to a rate increase recuest by Grantee to the extent of the difference between the actual construction costs and the estimates construction. costs plus ten percent (10~) thereof. 7.7 Interconnection. Grantee shall interconnect the cable television system with all other cable systems in Los Anceles County operated by Gr~r.tee cr an affiliate of Grantee. As a minimum, the interconnection shall provi8e the capacity to transmit three (3) video channels anal *_wo (2) data channels in both directions. The interconnection shall be completes within. two (<) years of cca;mencement of construction of the system. Upon the recuest of the Grantor, Grantee shall begin negotiations with cable system operators in other adjacent cities to achieve interconnection. Lrithin six (5) months of any Grantor recuest, Grantee shai:L report to Granter *_he results of the negotiations. -3G- A 7.f; Energencv Alert Capability. Grantee shall provide the system capability to transmit an emergency alert sicnal to all participating subscribers. Grantee shall also provide an emergency aucio override capability to per,~,it Grantor to interrupt anc cablecast an audio message on all channels simultaneously in the evert of disaster or public emergency. 7.9 Standby Power. Grantee shall provide standby power generating capacity at the cable communications system control center and at all hubs. Grantee shall maintain standby power syste~ci supplie=_, rated at least at four (4) hours duration, throughout the distribution networks. i.10 Parental Control Lock. Grantee shall provioe subscribers, upon recuest and at no monthly chance, wilt: a parental control locking device cr diy-ital cede that per;~~its inhibiting the viec,ir~c of premium channels. Grantor reserves the right to impose a deposit ecual to the cost of the parental control lock. i.11 Status h;on.itoring. Grantee shall provide an auton~atrc status monitoring system as an !nteyral part of both the residential and the institutional cable networks. -:51- 7.12 Technical Standards. The Federal Communications Commission (FCC) F.ules and Regulations, Fart 76, Subpart F; (Technical Standards), shall aaply. Eowever, because of the recent develocmer:t of interactive anc other innovative services, modifications of FCC standards, as presented in the specifications telow, are considered as necessary to meet system service objectives. lica'tle Technical Standards. (1) kesider,tial Network, Forward Signals--Class I Channels. The residential network shall be capable of carrying 42 Class I television channels and the full FM broadcast band. The combined forward trunk and distribution system shall deliver signals to each subscriber's TV receiver that will meet or exceed the following specifications at the mean system temcerature of + or - 70°F. This shall include the effects of drop cables, interior splits, ar.d any terminal equipment such as descramblers and set-top converters. h. Carrier to idoise, 4 hi'r.z, bandwidth 43 dE B. Cross h:odulation Patio 53 dB C. fiura Ratio 1$ G. Carrier tc Comcosite Triple Eeat 55 dB E. Carrier to Discreate 'Triple beat (CW Carriers) 60 dE -32- F. Carrier to Second Grder Beat 60 db G. Chrcminarce-Luminance Delay Listortion +~- 225ns (All Channels) h. Carrier to Echo Ratio (greater than 2 microseconds displacement) 40 dB I. Differential Gain 2$ J. Differential Phase 2% K. Customer Signal Levels--the signal level delivered to the customers' TV receiver, except as modified by peak to valley +1dEmV Min. scecifications +lOdBmV t~iax. L. Level differential between adjacent channels ~,. FM level shall be essentially uniform and carried at approximately the same level as the channel 6 Sound Carrier n. Isolation between Subscribers In ar,y event, sufficient isolation shall be provided to prevent interference between terminal ecuipment and other portions of the system. 3dB i4ax . 2CdB A;ax. (L) Residential and Institutional P:etwcrks, Reverse Signals -- The reverse channels of Beth the residential and ir,stitutionai networks shall have the capability of providing return signals from any subscriber tap to the extre,~,e end of any area without noticeable signal degradation or interference. F.. The system capability shall include transmission of color video, black and white video, and both low and high speed data, whether analog or digital. -33- b. Zf necessary to prevent the build-up of noise ar.d 8istortior. croducts, the area shall be divided into sections, and subtrunks nun to a central hub within the area. Eouivalent alternatives such as addressable taps or switches may be utilized. C. No more than +54 dBmV output level shall be reo_uired out of any customer modem. to r,;eet the system specifications. D. Fthere applicable, the end of the system specifications shall ir:clude the effects of any signal reprocessing equipment necessary to achieve forward transmission. E. Eor Class Z signals, the signal delivered to the subscriber's T'V receiver, after being transmitted to the headend, processed ar,d retransmitted down a forward channel, shall meet the specifications of Section 1.12(1) hereof. 7.13 Performance TestinG. (a) Grantee shall perforr; all tests necessary *_o determine comtliance with the technical standards of FCC 76.601. 'Tests shall include the following, as a minimum: Fre-Construction Zr,itial Proof of Performance Annual Compliance Tests Tests ir. hesponse to Subscriber Complaints bior.thly 6:onitor Tests -34- Written records of test results shall be maintained, and shall be available for Grantor inspection upon recuest. ib) The tests for the kesidential network shall be performed periodically, at intervals of no oreater than every six months, on a minimum of 20 subscriber television receivers, located ti~rcuyhout t'r:e service area. At least E of these lccatior.s shall be at the far end of the distribution trunk cables. The tests shall be witnesses by representatives cf the Grantor, ans written test reports shall be submitted to the Grantor. If rz;ore than 1GE of the lecations tested fail to meet the performance standards, the Grantee shall be recuired to indicate what corrective measures have beer. taken, and the entire test st-,all be repeated for at least 20 different locations. If a second test results in failure of more than 10~, the Grantor may at its sole option reduce subscriber rates due to degraded service, unless the circumstances of the failure are caused by conditions which are beyond the Grantee's reasonable control or which are not reasonably foreseeable. In ir~pcsir.g this penalty Grantor shall corply witi; the provisions of Section 12.4 hereof. ?. 14 narrowcast.no Caoatility. The system shall pace the capability to direct procramming to residents of the City only, recardless of whether the same cable system serves adjacent jurisdictions. -3s- SECTIG?~ 8 SEn~'ICE P.ND PROGRFd•2MIhG RE~[iUIkEI-?EivTS 8.1 Initial Services and Fro~;ramminq. G__*antee shall provide, as a mini,~,um, the initial services ar.d programming listed in this Section, Ii any listed service shall become unavailable, or cannot be provided under existing or subsequent FCC reculaticns, Grantee shall prcvide, where possible, substitute prograrzs,ir.g ccnsidered at least as attractive to cable system subscribers. Grantee shall not reduce the nurz;ber cf program services withcut prior written notification to ar,d approval by Grar.tcr. Grantor's approval shall not be unreasonably withheld and its written decision shall be given to Grantee within thirty (3G) days frem receipt of its notification. Grantee may add r.ew services at any time, subject to Grantor approval of any new rates or rate increase necessitated by the added services. Grantee may combine programming into composite chant;els to improve efficiency of channel utilization or to attract a larger viewinc audience. E.2 basic Subscriber Television Services. Grantee shall provide basic Subscriber Television Services in three price tiers. Grantor acknewlecges that the provision of some services are based on Grantee obtaining FCC waivers and -36- licensing anc/cr entering into acreements with other entities. Grantee shall make every effort to provice these services, at the earliest opportunity. Tier Z service shall .induce, as a m,ir.imurr~, all of the following: (1) Carriage of all Los Angeles area television brcadcas*_ stations, inducing: Charnels 2, 4, 5, 7, ~, 11, 1~, ~2, ~E, 34, 52 and cF (Los Angeles) Channels 1S, SO (San Eernarcino) Channel 40 (Fontana) Channel 50 (Yuntingtc^ EeacY,) (t) Carriage of one (1) non-local television broadcast station: KhEX, San Antonio, Texas (_) Carriage of one (1) video programming service distributed by communications satellite: Women's Channel (4) Carriage of ten (1G) alphanumeric programr.~ir,g services: Ciassifiec Ads Community Eulletin Eoard Consumer Information Events Guide Emercency Information Yandicapped, Yuman Services -37- Frocram Guide Shopping Guide Travel Information 4veather fiadar (5) Carriage of the following local, community and access vireo programming services to the extent that said programmino is actually provided and funded by means of the procedures set forth in Section 5 hereof: Community Trews Industrial Programming, Job InfejCareer Cevel. Spanish Language (~) Family fiealth (~) Industrial Access Public Access Educational Access Government Access Local Grigir.ation Tier IZ service shall include, as a minimum, all of the following: (1) Carriage of six (6) non-local television broadcast stations; XETV, Tijuana, Piexico XEFT, Tijuana, Mexico idTV, Toronto, Canada WGN, Chicago (Ch. ~) WCF,, 2:ew York (Ch. 9) 4;T6S, Atlanta (Ch. 17) -3E- {2) Carriage of nineteer. (19) video programming services distributed by communications satellite: Alpha Arts American bducational 'Ielevisior. 2:etwork (AEZV) Appalachian Community Service `;etwork (ACS Di) Black Entertaina~er.t Television (EET) Cable t2exs Ne_.wcrk {C?'•:? Ca~1e-Satellite ?~u'clic Affui.s Network (C-SPAN) CBS Cade Entertainment and Sports Frc_rar,ming Network (ESFty) Las Vegas Live MocSern Satellite Network (DiSN) T+ational Christian P]etwork (NCN) 2:ew Frirre 'Iitr~e -- Cinemerica (~:FZ) Nickelodeon Fecple That Love Televisior, Network (PT L) Fublic Service Satellite Consortium Satellite Frogram Ietwork (SFi:) Telefrance USA Network (Madison Scuare Garden/Calliope) (3) Carriage cf three {3) alphanumeric programming services: Natior:aljInternational News Spanish Newswire Sports hews -39- (4) Carriage of two (2) local, co,.r~unity and access video program;,~ing services includinc but net limited to ,t'r,e following: kegicnal Education Access kegienal Government F:ccess liar III (interactive) service =_hall ir.ciude all Tier II programming, and in adc.ition the following; (1) Interactive capability for hen:e barking, hone shopping, energy r,;arayement, inforr,~atior. retrieval and ot,`,er advanced services. (2) Teletext. services. &.s Fay 5elevision Services. Ir. acdition to the Basic Subscriber Television Services, Grantee shall offer the following. optional Fay-Television Services or equivalent programming of the same general class to the extent it is available: fiome Box Office ho.~,e box Gffice -- Cinemax Showtime The P;ovie Channel Fla inbow Home Theater *;etwork FBS Fav-Cable Selec*_ TV keuter Ilik -4C- c.4 Interactive b.esidential Services. Grantee shall offer optional security zlarm monitoring services initially to all subscribers. Grantee shall offer cptienal home shopping, home bankinc, data lase access and retrieval, and interactive educational programs to all subscribers when feasible. E.5 i:easec Channel Service. Grantee shall offer leased channel service at non-discriminatory rates ar,d on reasonable terms and conditions. Grantee shall not use its po=_ition as a cable television system operator to refuse leases channel service to any acplicar.t who may wish to offer z service competitive with services d fered b_ Grantee. 5.E Easic Sdscriber Facio Service. Grantee shall provide basic Subscriber Fadio Service inducing the fd lowing: 25 local r`D: raaio stations F.etransmission of short-wave broadcasts 1di;Fi, Chicago JISAL (religious) Seebura T;orld F:adio Local Origination ar.d Access -41- 8.7 Institutional fietwork Service. All proposed services within tr,e technical, financial ana geographical capacity of the institutional network shall be offered to ail institutions. Frovieed, however, that Grantee upon notice to Grantor shall be entitled tc establish reasonable classifications of subscribers and users. Services shall include, tut not be limited to, video, audio, data ant telemetry communications, with either one-way cr interactive transmission. 6.8 Advance Chances, Deposits and Late Fava~er.t C'r,arges. Grantee may recuire payment of charges and deposits as follows: (a) The Grantee may reauire subscribers to pay for service in advance of the beginning of each month. (b) Nothing in this provision shall be construed to prot:ibit chances for initial installation and reconnection or to prohibit Cran.tee from retaining reasonable deposits for ecuipment. (c) Grantee ::,ay require subscribers to pay a late payr,:ent charoe oa any bill not pair ty its due cote. Such late payment charge shall be 1-1/2% cf the overdue amount or $.SC, whichever is greater. -4~- 8.9 Disconnection. disconr:ection of an subscriber fails to charge, the Grantee as follows: There shall be no y installation or c pay a properly due may disconnect tY,e charge fcr utlet. If any monthly fee or subscriber's service (a) ?~o service shall be disconnected until the delinquent fee is sixty (E G) days overdue or until ten (1C} days after written notice to the subscriber of intent to disccnr.ect for failure to pa}, whichever is later. (b) In the Case of Fa}'-Cable Services Only, no service shall be disconnected until the delinquent fee is thrity (3 G) days overdue or until ten (10) days after written notice to the subscriber of inter:t to disconnect for failure to pay, w':,ich=_cer is later. tipor. payment of t'r.e delinquent fee or charge and the payment of a reconnection charge, the Grantee shall pror,ptly reinstate the subscriber's cable service. SiCS'IGC, S SutFCF_7 FCF. LCCAL. FROGfiP.~-1P:Ii~G 5.1. xlncing ar,c Leterr:lr:atlor. ~ecarclr.ti local Frocram~„zn~. (a) The City Council herety fines and determines that the public interest in com,;,ur,ity access programming and local ~rcyram development necessitates the utili- -43- zation of a r.onpr'cfit corporation. to be designated by Grantor to funs and oversee community access progras.ming and local program development, and other reasonably related programs and functions. The City Council further finds and deter,~:in.es that the use of such a nonprofit corporation funded in whole or in part by Grantee ~~-ill allow funding decisions to be made in the best interests of the public, taking into account developing needs and technolocical advances. (b) The City Ccuncil finds and determine-s that tY:e public interest in a fair and just apportionment of the use of the pu d is access and community channels necessitates the creation of a Cesmur.ity Access Corporation. (c) The City Council further finds anti determir;es that the public interest in optimal educational use of the cable television systen necessitates the payment required of Grantee by Section ~.2(e). (d) The City Council hereby finds and detera;ines that tying the payment required by Section 9.2 (d) to cross revenues is necessary to protect the value of Grantee's prograr;:ming support commitment from. the pressures of ir,fiation. -44- 9.2 Grantee support for Local Frogramming. Grantee shall provide the following or equivalent support for iocai programming, as a minimum: (a) Feasonable use of all cablecasting access facilities and channels by nen-commercial, tax exempt organizations at no charge. (b) heasonable and nondiscriruinatory use of Grantee's local origination facilities, when available, by non-commercial, tax exempt organizations at no charge. (c) The provision of local origination staff per the Grantee's Franchise Application except as modified herein. and as modified by the Franchise P.areement. (d) Fayment to a nonprofit corporation to be designated by Grantor cf a minimum of $57,713 per year in full performance of its capital and operating proposals for community access programming and local origination contained in Grantee's PYanchise Application. Fayment shall be made at said level for the first 4 years of the Franchise and thereafter the payment shall be the greater of $57,713 or 4°s of gross annual revenues, Faymer,t shall be made in accordance, with the payment schedule included in the Franchise Agreement. -QS- ~. (e) Fayment of a total of $37,376 to Grantor, payable over the first two years of the Franchise, per the payment schedule included in the Franchise Agreement, for television equipment and supplies for local schools. Said funds are specifically provided ir. full satisfaction of capital and operating proposals for schools contained in Grantee's Franchise Application. Grantor shall consult with school officials and a determine how such available funds will be distributed and used by schools to the end that the cable system authorized by the Franchise can be best utilized by the schools as part of their educational program. 9.3 Community Access Corporation. An indeper.der,t nor.-profit corporation, termed the Community Access Corporation (CAC), shall be formed to manage t'r.e use cf the Fublic Access and other Community Channels of the cable television system. The initial CAC Eoard of Lirectors shall include broad representation. of tine City's educational, cultural, social, community and business orgar.izatior.s. The CAC Eoard of Directors shall, within sixty (60) nays of incorporation, submit to Grantor a plan and rules for the management, operation, anfi use cf the Fublic Access ar.d Community Channels. Said plan of operation. shall include provision fen adecuate insurance to -46- to obtained with CAC funds, to protect Grantor and Grantee from liability associated with Community Access Programming. Grantor ar,d Grantee sha11 be provided with such insurance coverage as is reasonably necessary and is in accord with incustry practice with respect to Community Access Progran,mine. SECTICZv 10. kATES ARD ChAfiG`cS 10.i Fror•otior.al Discounts. Z'he rates quotes in Secticn. 10 are maximum rates only. Grantee reserves the right to provide s_ecial discounts or reduce rates without the prior approval of Grantor. 10.E Basic Service -- nesider,tial Subscribers. Zhe initial rates and charges for basic Service to residential sutscriters shall not exceed the fcllcwing: Installation Tier I(Single Cab1e)* Charge First TV Cutlet $1:.95 Aerial First TV Outlet 39.95 Ur.der- groans P.dditional TV Outlets (ea.) l0.CG Fri (with TV) 10.00 Ccnverter (Po Deposit} -- Althougt; Company reserves the right to charge if there is excessive damage. A.onthly fiate $S.SG 5.50 2.95 2.55 2.50-4.00 -97- Relocation Reconnection Tier II (Dual Cable) First TV Outlet Ac,ditional TV Cutlets Fbi (with Tv) Converter F,elccation Reconnectior. Tier III (Interactive) First TV Outlet Adciticnal Cutlet Fri (with TV) Converter Relocation Reconnection No converter charge Grantee reserves the converter deposit if loss of converters. 1G.00 -- 14.95 -- Installation t~^ionthly Charge Fate Aerial 5 Buriec $5.50 Same as Tier I " 4.95 L.95 ^ r: o Charge ~, ~~ - - Ir.stailation N:onti,ly Charge Rate Same as Tier I $11.50 6.45 " 2.95 " ro Charge ~~ ~~ wi11 be imposed initially. However, right tc institute a reasonable it experiences excessive damage to or -4fi- 1G.3 basic Service -- Apartment, Commercial and Public Facilities. Tt,e initial rages and charges for Basic Service t o apartments, commercial organizatio ns and public f acilities shall ret exceea the foliowinc: Installation Monthly Charge kate Apartments - Bulk Rate First Cutlet Cost Negetiated Commercial - All Tiers First G'utlet Cost Negotiated Gcvernment & Fcucaticnal Facilitie s First Gutlet ,(per facility) No Charge No Charce 1U.9 Pay-Television Service. The initial rates and charnels for Pay-Televisicn Servic es shall not ex ceea the folloc~ing " Installation i~ionthly Charce Fate Ho,;~e Theatre Network Free Ir,tially $ 3.°.5 Rainbow ~ $i9.95(Later) 7.95 The Movie Channel 9.95 hcme box Office 8.95 Home Box Gffice - Cinemax 8.95 Showtime "' 8.95 Galavision 7.95 Select TV 18.95 -99- Subscribers taking both Ecme Eox Cffice ar.d Cinemax will receive a monthly $i.00 cisccur.t. Subscribers receiving two or more services shall receive a monthly discocr.t of at least gi.00. 1G.5 Security P.larm idonitorin installaticn charces and rates mcnitorir.g services shall not Gptions Services ~ Sir,cle F.larR~, fire, medical or police y Service. The initial for hor,~e security alarm exceed the following: Installation ^;or,•thly Fate $ 49.95 $ 9.95 B Eoubie F.larm (any 2) 99.°.5 h;ax. 1G.95 C Triple F.larm 119.95 Max. 11.95 10.6 Studio and Equipment Usage. Grantee shall not exceed the fol.lowir,g initial rates for access studio and vireo eccipr.,ent use: (1) nonccmmercial L'sers Fates Studio Froduction Time i~o Charge Femote Froduction Time ?'do Charge Supervision and Instruction No Charge System Playback Costs too Charge Editing Ccsts ho Charge -50- (2) Commercial Users Studio Frcduction Time Remote Production, Time Supervision and Ir,structicn System Playback Costs Editing Costs Negotiated Negotiated 2egotiated Negotiated Negotiates 10.' Institutional Services. The proposed rates for Institutional itetwerk vireo and data communications services shall be approximately the following: Cable/PAC: $3C per month plus $1 each 1000 packet Cable-Lease: $30 per month plus $50 each D,F,z Cable-video: $2f per n;onth plus $2t per T4RC hour Cable-t;or.i tor: $300 per year 10.° t~saintenance of Initial bates. Grantee shall not increase the initial rates for a period of three (~) years from the effective sate of the Franchise. The maintenance of initial rates shall include 'ray-television Services rates, and Grantee shall not utilize F'CC or other preemption of Fay-Cable rates to increase such rates prier to the expiration of the period above. tipon the expiration, of said three (3) years period, these rates and charges for -51- those services for w}:ich rate regulation is not preempted by the YCC shall be subject to regulation. by Grantor. kates relating to advertising or the instituticr.al netwcrk services provided to commercial subscri.'~ers shall be exempt from rate reculation. 10.S kate L;ereculatien. Grantee shall r.ot, and by acceptance of the franchise agrees not to, avail itself of its on ion of electinc exempticr, from local rate regulation pursuant to Government Code Section 53666.1, or any successcr legislation. hotting herein s!;all prevent Grantor and Grantee from agreeing tc a deregulation of rates upon apprcpriate terms and conditions. SEClICi: 11. FCiRCI-:AsIT:G, '1kP,Ii;Z\G A?:C L:?i~LCYriE\T F'.E~UIFE?•iEI~'iS 11.1 Local Furchasir,q and F.irinq Fclicv. Grantee shall establish a pclicp of employinc City residents within its own. operations, and of utilizinc City-based firms for purchases and construction subr_ontracts, to the maxi*r:um extent possitle. Grantee shall provide Grantcr with a written. repoct of local purchasing anc hiring achievements at least annually for the duration of the Franchise. -52- 11.2 Equal Emclovment Opeortur.ity and Affirmative Ection Frocra.^..s. Throughout the term of the Franchise, Grantee shall conduce its business as an Equal En:plcyment GpportunityjAffirrcative potion Er,~ployer. Zn. addition, throu5hoot the term cf the Frar.c:;ise, the Grantee sY:all maintain a policy that all employment decisions, cractices, and procedures are based o^ merit and ability without discrimination in violation of state or federal law on the basis of an individual's race, color, religion, ace, sex, national oricin, or physical cr mental handicap. Tire Grantee's policy shall apply to all employment actions inclucir,g advertising, recruiting, hiring, promotion, transfer, re;,~uneration, selection for training, company benefits, disciciinary action, lay-off, and termination. The Grantee shall carry out this policy through continues dedication to a determines and sustained effort to provide equal employment opportunities tc all by taking affirmative action *_o employ and advance in employment cualified women, mir.crities, persons who are physically or mentally handicapped, and veterans. The Grantee shall provide to t;;^,e City a written Affirmative Actior. Program to carry out this polio}~ no later than sixty (EO) days after the effective sate of this Franchise. -~3- 11.3 Employment Training Frogram. Grantee shall, during the entire term of the Franchise, conduct ar, aggressive training program to train local residents, particularly the unskilled and semi-skilled, for employment in the cable industry. SECTIC& 12. fiEGliZAT 12.1 F'rancriise Regulation. The Franchise granted under this Ordinance shall be subject to reculation by Grantor in accordance with the provisions of Ordinance ?do. 11G8. Grantor may, at its sole option, enter into jcir.t regulatory agreements with other Grantors in adjacent jurisdictions, served by the same cable system. 12.2 Rate kegulatior,. Subject to the provisions cf sections E.7 and 7.E hereof, Granter shall take into consideration for rate regulation purposes all costs associated with the construction and operation of the cable television system including those payments made pursuant to Section 9 hereo{. Grantor may also consider any or all of the followinc factors in determining whether to approve, modify or disapprove Grantee's requests for rate increases during the term cf this Franchise: (a) Grantee's substantial fulfillment of all material requirements of the Franchise. -SS- (b) duality of service, as indicated by the number and type of service complaints, Grantee's response to complaints, and the results of periodic syste!r: oerformar.ce tests, (c) Prevailing rates for comparable services in other cable systems of similar size and complexity. (d) Fate of return. on Grantee's financial ir.vestmer.t anc ecuity, as compared to businesses of equivalent risk. 'Ihe rate of return shall be calculates cn a cumulative basis for all system revenues and costs, including services such as Fay-Zelevisien Services that r.ay be exempt from local rate regulation. Upon request from Grantor, and pursuant to the provisions of §12.5 hereto, Grantee shall provide all information as shall be reasonably necessary to cetermine syste,:. revenues and costs. (e) Ferformar.ce cf Grantee in introducing r.ew SerV1CeS and eXDanding the Cd:~le SyStem'S Capablllty', as compared to other systems of similar size and complexity. 1=.~ Chance in kates. Increases ir. rates for basic service shall be requested no more often than annually by Grantee. Lpon receipt of a rate increase request, Grantor shall schedule a public hearing prier to arrivir:g at a -55- decision. ti~on recuest from Grantor, Grantee shall provide and Crar.tor shall consider relevant financial and other information necESSary tc deter*.rine the justification. for the recuested increase. Failure to provide such requESted information shall be grounds for denial of the rate increase. 6tiithin ninety (50) days after receipt of the rate increase recuest, Grantor, expressed by City Council resolution, shall approve the recuest in full, approve the rEquest in part, or disaprroce the requESt. Ir, ar.y event, Grantor shall provide fincings as to the basis for its decision. If no Grantor action has occurred within ninEty (5C) cays after rECeipt of the Late increase rECUest, unlESS Grantor ar,c Grantee aoree in writing to an er:ter,sion of time, the request shall be deemed to have bEEn approved. lc.? Remeeies for Franchise Violations. (a) In addition to the penalties for delays in cor~structicn as speci±ied in Section. E.3 hereof, Grantor reserves the right to impose the fellowing penalties in the event Grantee violates any other r;aterial provision of the Franchise, provided that Grantee has not cora~;encEd corrective action within thirty (3U) days of service of written notice by certified mail to, er personal service on, the general manacer of Grantee, Imposition of the following penalties shall be in aceordar.ce with Section 17 hereof. Grantor may: -5E- r (1) Impose a financial penalty, not to exceed One Thousand Dollars ($lOGO) per day or per incident, for Grantee's individual willful and/er repeated violation of the Franchise or failure to take corrective action with respect to a violation of any provision of the Franchise. (c) F.equire Grantee to make rate rebates or payments to the customers or classes of customers in such amount and on such basis as Grantor may dEeIi, rEa5Onable, pr0V1QeG, h04icVer, that payments or rebates to customers shall be made only in the event of: (a) billing error on an individual or class basis. The refund sha11 be equal to the actual amount of the error. (b) an unexcused interruption cr abandon- ment of service in excess of 48 hours. The rebate shall equal a prorata portion of the subscriter monthly fee or be dEterr,.ined open some other reasonable basis. (3) F.ecuire Grantee to correct or otherwise remedy the violation prior to any rate increase becemina effective. -f7- ~- (b) In the event the stated vici-ation is not reasonably curable within thirty (3 G) days, the Franchise will not be terminated or revoked cr a penalti° imposed pursuant to Section 6.3 hereof or this Section if the Grantee provides, within the said thirty (3C) days, a plan, satisfactory to the Grantor, to remedy the violation, and cor,tin.ues to demonstrate cool fait'r; in seei:ing to ccrrect said vioiatien. (c) In determining which remedy or rer.~edies for Grantee's viclation are appropriate, Grantor shall take into consideration the nature of the viclation, the perscn or persons bearine the impact of the viclation, the nature of the remedy required in order to further prevent such violations, ar:c such other natters as the Grantor may deem, appropriate. (d) *Aithir. ten (1C) cat's after receipt of a ~+~ritten notice of a violation from Grantor, Grantee may rec.uest a hearing before the City N:anacer or other person. designated by the City Cou~;cil. Such a proceeding shall afford full due process of law and stall be held within thirty (30) days of the receipt of the recuest therefor. (e) 'Ihe determination of the City b;aaager or otl-ier person desigr.atec by the City Council shall be subject - to appeal to the City Council within 15 days of -Sb- e , service of notice in writing of said determination to Grantee. A notice of appeal s.`,all be delivered to the City Clerk within said time period and shall specify the grounds for the appeal. Grantor and Grantee may agree to waive the conduct of a hearing provided for in Section 12.4(d) and proceed directly to a final determination, by the City Council as provided for in 'this part. (f) Zhe City Council, in the case of an appeal or direct jurisdiction, shall hold a hearing affordinc, Grantee full due process of law. Said hearing sr:a11 be set within thirty (30) days of the receipt of the recuest therefor. (g) the City Council, in determining ar.y penalty, shall make written fincincs of fact which address the considerations ref erer.ced in Section 12.4 (c) hereof. (h) hothing herein shall prevent either the Grantor or the Grantee frem obtaining injunctive relief to enforce the provisions of tine r'ranchise. (i) Ivething herein. shall prevent Grantor from conducting hearings and providing for remedies on a joint basis wit., other cities served by the same cable system. -5:- .° 12.5 Public L'isclosure. 6:1-,enever, pursuant to the Franchise, Grantee shall make available for inspection 6y Grantor or submit to Grar,tcr repor*_s containing information considered proprietary by the Grantee, Grantor shall not disclose or release such reports or information to the public without Grantee's prior written consent or unless recuired to do so by statute cr Court cyder. Grantor shall provide Grantee with 24 hours notice prior to inspecting books or records of Grantee. SECTIGC: 13. fiIGF.Zb GF IhLIVIGOP.LS FFGTECTED 13.1 Liscriminatory Practices Prohibited. 'Ihe Grantee shall not deny service, deny access, or otherwise discriminate against subscribers, procra,~,n:ers, or general citizens on the basis of race, color, religion, ^ational origin, sex or age. The Grantee sr.all strictly adhere tc the equal employment opportunity requirements of the federal government, as expressed in Section 76. 13(a)(n) and 76.311 of Chapter 1 of Title 97 of the Code of Federal F.egulations. ~ihe Grantee s,`,ali comply at all times •.,-itt. all Other applicable rederal, State, and Clty laws, ana ail executive and administrative cyders relating to, non-discrimination. -GO- 13.2 Cable aPpinc Prohibited. I:either the Grantee, nor any person, agency, or entity shall, without the sUbSCLibEr's COnSent, tap, OL arranGe fGr the taFping, Of ar,y cable, 1ir.e, signal input device, or subscriber outlet or receiver for any purpose except routinE maintenance of the system, polling witY; audiencE participation, or audience viewing surveys to support advErtising research rECarriny viewers wherE individual viewer behavior cannot be identifies. 13.3 Invasions of Privacy am of FErsonal Richts Prohibited. In the conduct of providing its services or pursuit of any collateral commercial enterprise resulting therefrom, Grantee shall take any and all necessary action to prevent an invasion of a subscriber's or ceneral citizen's right to privacy cr other cersonal rights a=_ such rights are delimiter and refined by applicable law. Grantee shall not without lawful court order or other applicable valid legal authority u*_iiize the system's interactive two-way ecuipment or capability for unaut'r,orized personal surveillance of any subscriber or ceneral citizEn. 13.4 Permission of Proper Frovired in Section 3.7 Gwners Fecuired ExceGt as bio cable line, wire, amplifier, converter, or ether piece of equipr,~ent owned by Grantee -61- shall be ins*_ailec by Grantee -ithout first securinc the written perr,,ission of the owner of ar.y z;rcperty involves; provided, however, that where the property owner has granted an easement or a servituce tc ancther and the servituce by its terms contemplates uses such as Grantee's inter,dsd use, Grantee shall not be recuired to secure the written permission of the owner for the installation of cable television equipr::ent or facilities unless Grantee elects to de so. Zf permission is later revoked, whether by the criginal or a su.'~.sequert owner, the Grantee shall remove forthwith any of its equipment which is visible anc movable ar.d promptly restore the property tc its original condition. 13.5 Sale of Personalized Lata Fe=trioed. The Grantee shall not sell o_ ot'r.erwise make available lists of the name= and addresses of =_ubscribers, or any list which identifies, by name, subscriber viewing habits, or personalizea data pertainrnc to a subscr_ber's use of any of Grantee's services without tt:e ccnsent, express or implied, of the subscriber tc which the personalized data Cert8lnS. ror purpOSes Of this ~eCt10P, °DFrSOnallZed data" shall mean the name ar,d address of an individual subscriber directly associated with data obtained or, his or her use of specific services provided by or through the -E2- Grantee. i:Cthing herein shall be construed to prevent, as a normal incidEnt cf cor~r,,ercial enterprise, the salE or aVallablllty Of "nCn-peLSOna112eC" Or "aggregated cata" WhiCi: is riGt pEr50 P.a11ZEC data a5 Clef lnEG ClerEln. 13.E Landlord - Tenant. Grantee shall be recuirEd to provide service to individual units of a multiple housinc facility with all services offered to other dwelline units wit.,ir. the City, sd long as the owner of the facility consEnts iP. writing, if. requested by Grantee, to the following: (a) 7o GrantEE's provicirc of the service tc units of tr,e facility ; (b) To reasonable conditions and times for installation,, maintenance, and inspection of the system on the facility premises; (c) To reasonable conditions promulga*_ed by Grantee tc protect Grantee's equip,~.ent and to Encourage widespread use of the syste„~; and (d) To not demand or accept payment from GranteE for cermitting Grantee to provide service to the facility ar.d to not discriminate ir, rental charges, cr otherwisE, between tenants who receive cable service anal tt:ose who de not. ~~ -53- SECI~IGC' 14. TEP~'IivP.SIOA: A?d- FE2iEjvF.L 14.1 z.evocation (a) In adciticn to any rigl-:ts se*_ forth elsewhere in this Grdinar.ce, the Grantor reserves the right to revoke the Franchise, and all richts and privileges pertaining thereto, in the event that: (1) The Grantee willfully or repeatedly violates any material provision of the Franchise; or (2) The Grantee's construction schedule is delayed for over eichteen (1E) months, due to any cause which is. within the Grantee's reasonaule control; Or (3) Subject to the provisions of Section 14.E hereof, the Grantee becor,;es insolvent, is involuntarily aajudued as L-ankrupt, or files a voluntary petition for relief under the EankrUptC~/ PCt; OL (4) Zhe Grantee is adjudced tc have practiced any fraua or deceit ucon the Grantor and such judgment becomes final after all apceals are exhausted accordiro to law. (b) If Grantee violates any provision contained in Section 14.1(a)(1)-(4) hereof, Grantor shall give written notice of the default to Grantee, -69° (c) Grantee shall be given thirty (3C) days, after _uch written notice, to correct such default, oz to commence appropriate corrective action. Such notice and period to cure need not be repeated if the same were previously provided to Grantee as a prerequisite to other remedies pursuant to Section 12.4 (a) hereof. Zhe Franchise shall not be revoked pursuant to this Section if, within said thirty (3G) days, Grantee provides a plan satisfactory to Grantor to remedy *_he violation and C-rantee continues to der.,onstrate goo c. faith in seeking to correct saki violation. (d) If Grantee fails to correct such default or to commence appropriate corrective action as provided in Section 14.1(c) hereof, Grantor may elect to impose a penalty, as provided in Section 12.4 hereof, or Grantor may elect to terminate this Franchise as fellows: (1) Grantor shall hole a public hearing to consider the option or revocation of the Franchise; (2) Grantor shall gyve Grantee at least ten (1G) days advance written notice of such hearing; (3) Grantor shall publish notice of such hearing in a newspaper of general circulation, in the City at least ten {1G) days ir. advance of such hearing; -65- (4) Grantee shall be afforded all due trocess of iaw, includinc the richt to appear and be heard at the hearine; (~) It after such hearing Grantor cetermines that the Franchise should be revoked, Grantor shall advise Grantee of its decision in writing. Grantee shall have a pericd cf thirty (3C) daps, becinning the next day fcllc.:ir.g written notice to Grantee of such decision, withir. r:hich to file any appropriate legal action. Luring such thirty (30) day period, tY:e Franchise shall remain in full fcrce and effect, unless the term thereof expires socner. (6) Fits-r,t a court orcer to the contrary and upon the expiration of the thirty (3Cj day cericd set forth in Section 14.1(4)(5) hereof, the Grantor ;r,ay by ordinance cr resolution declare a forefeiture of the Franchise, whereupon all rights of the holders of the Franchise shall inmediatel'y be divested without a further act upon the i:art of the Grantor, and the Grantee shall upon demand cf Grantor fortiswith remove its structure or property from tr:e streets and restore t'r.e streets to suer, condition as the Grantor may reasonably require and upon failure -66- to do so, the Grantor nay perfcrm the work and ccllect the costs therecf from the Grantee. The costs thereof shall be a lien upon. all plant and property of the Grantee. Such lien shall not attacr. to the property of the Grantee lccated on the poles or ether utilities until rer„„oval of such property from the pole. Should Grantor decide to take over ar.d operate the syste„~, Grantee shall be compensated consistent with the provisions of Section i5.1 herecf. 15.2 keceivership. The Granter shall have the right to revoke the Franchise one hundred and twent} (120) days after the appointment of a receiver, or trustee, to take over anc conduct the business of the Grantee, whether in receivership, reorganization, bankruptcy, or other action or proceebing, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred ar.d twenty (12C) days, or unless: (a) Within one hundred and twenty (120) days after his electicn or appointment, such receiver or trustee shall pace fully complied with all the previsions of the rranchise and remedied all defaults thereunder; and, -5 i- (b) Such receiver or trustee, within said one hundred and twenty (12G) days, shall have executed an agreement, duly approved by the court having jurisdiction in the premises, whereby such receiver or trustee assumes and agrees to to found by each and every provision of the Franchise. 14.3 Exciration. upon expiration. cf the initial ter„~ of the Franchise and consistent with Section 14_.4 hereof, the Grantor shall have the right, at its election to: (a) renew or extend the Franchise; (b) invite additional franchise apclications or proposals; or (c) terminate the Franchise without further action.. the Grantee shall make it a condition cf each contract entered into L'y it that the Grantor shall have the richt to exercise these options. 14.4 Lenewal or Extension. Zhe Franchise may be renewed or extended ty the Grantor at any time during the term of the Franchise, upon application of the Grantee, in accor6ance with the then exis*_ir.g rules of the FCC, and applicable law. (a) Grantee shall sutmit its application for renewal at leas*_ nine (5) months prior to the date of c-};piration. -68- (b) Zhe Granter shall schedule a hearing on the cuestion of renewal, with such hearing tc take place at least six (b) months before expiraticn cf the Franchise. At least ten (1G) cat's advance written notice of such hearing shall he given to Grantee and shall be published in a newspaper witY: local circulation. rt such hearing, the Grantee shall have full due process of laa including the opportunity to appear and be heard. (c) Based ucon information introduced at the hearing, anti any other relevant information that it may obtain from the Grantee, the City shall make a determinaticn as to whether the Grantee has substantially coraplien with material recuirements of the Franchise. Such determination shall be made not less than two (2) months before the Frar.c'r.•ise expires, and a copy of the written deter:r,ir.ation supplied to Grantee. 14.5 Ccntinuity of Service Aiandatory. It shall be the rigi~t of all subscricers to receive all available services inscfar as their financial and other obligations to the Grantee are honored. In the event that the Grantee elects to overbuild, rebuild, modify, or sell the syste,~~, cr the Grantor revokes or fails to renew the Franchise, the Grantee shall co everything reasonable in its power to -69- insure that a17. subscribers receive continuous, uninterrupted service regardless of the circumstances, during the lifetime of the Franchise. In the evert of purchase by the Grantor, cr a change of Grantee, the current Grantee shall cecperate with the Grantor to operate the system for a reasonable ter:porary period, in maintaining continuity of service to all subscribers. SECiiCr+ 15. F.IGcT TG FG'kCFF.SE TE?B S:5`IED~l 15.1 Granter, in compliance with California law governing eminent domain and upcn payment of fair market value, may condemn the Franchise, property and plant cf Grantee. M 15.2 Granter shall have the right tc purchase those portions of the system within the City of Lynwood only upcn revocation or expiration of the initial term of the Franchise cr any renewal or extensions thereof. Purchase price to C-rantor shall not include any sum for the value of the Franchise and such plant and property shall be valued according co bock value of all capital investments attributable thereto, less depreciat.icn. 15. In the event Grantor shall terminate the Franchise pursuant to the provisions of ~ecticn 1E.3 hereof, it shall reimburse Grantee for the fair market value of the system, including both tangible and intangible assets. -7U- SECTION 15. S-FF~nF.EILITY 16.1 N;otkithstandinc any c_h~:r provisions of this Franchise to the contrary, Grantee shall at all tines comply with all laws anG regulations of the State ano federal governments or any administrative agency thereof. 16.2 If any Section, subsection, sentence, clause, phrase or word of this Franchise is for any reason held im~alid or unconstitutional by any court or governmental body of competent jurisdiction, such Section, subsection, sentence, clause, phrase or wore shall be deemed a separate, distinct, and independent provision anc such hclcing shall not affect the validity of the remaining provisions hereof. 16.3 Should the State of California, the FCC or any other. agency of the federal government subsequently require the Grantee to perforrr, or cease to perform any act which is inconsistent with any provisions Gf the Franchise, tine Grantee shall so notify the Grantor. Upon receipt of such notificatior„ the Grantor shall determine if a material provision of the Franc'r,ise is affected. Upen such determination, the Grantor shall have the right to ?r,odify or amend anv of the Sections of the Franchise to such reasonable extent as may be necessary to carry out the full -il- intent and our~ose of the Franchise. The Grantor may terminate the Franchise in ti:e event the Grantor determines that substantial ar.6 material compliance .pith the original proposes terms cf the E`ranchise has been frustrated by such State or Federal recuire::~ent. SECTIOPd 17. FOkCE NiAJEuFE; GRAPiTEE'S INAEILITY TG FEFiFGFvr In the event Grantee's performance of any of the terms, conditions, obligations, or recruirements of this Franchise or of Grdinance too. 11CE is prevented cr impaired due to any cause beyond its reasonable control or not reasonably foreseeable, such inability to perform shall be deemed to be excused and no penalties or sanctions shall be imposes as a result thereof, provided Grantee has notified Grantor in writing within fifteen (15) days of its discovery of the occurrer:ce of such an event. Such causes beyond Grantee's reasonable control or r.ct reasonably foreseeable shall include, cut shall not be limited tc, Pots of Gob, civil emergencies and labor unrest or strikes. PASSED, AFFRGVFD A?dD ADGFTED this _15_th day of SPb mb r .~ 15E1. /s/ JOHN D. BYORK _ Mayor of the City of Lynwood ATTEST: /sLLaurene Coffey City Clerk -72- FGFiNi V-A SC„ELULF. A FRP.?:C&ISE TEkkITGFY AND CGtdST~liCTIGi': SCYEDL'LE 1. F.pplicant is applying for a Franchise for the entire service arEa. 2. P.pplicant will indicate cenfo.*_;Hance with cable service recuirements of Introduction, Paragraph E, and provide amplifying details. A.ny exception to the requirements shall be noted specifically. Applicant will conform with all cable service requirements refe a edto and specified in "Instructions to Applicants", Section 6 ("Gallo Service fiEquirements") a) Cablesysterr.s will provide service to all existing resicentiai dwEllings within the initial service area which is defined as the "territory of all member cities." Cable SELVICE will be provided to all residents within the initial service area at rates outlined in Form VIII, F. and b within. 21 months from the final aware of the F'rar,chise by all the Cities. Service will be offered to coc.mercial, industrial and other r,on-residential users within the initial service area. Zf the user is established in a residential area and is uassed by the residential netwcr'r, the standard rates outlined on Form VIII, A and 5 will apply. Non-residential users of the service establishes in areas zoned et'r,er than residential and not gassed by the residential network will be cbarged the standard rates outlined plus rust pay in advance, or. acceptance of a written cuote, a proportion of the capital cost of extending the plant. Cablesystems will attempt to defray some of the costs by ,~,arketing the service to other potential users onion to submitting a Quote. b) Cablesystems' construction schedule will deliver uniform residential service to ail member Cities concurrently and on a basis proportional to each City's share of total cable miles. This assumes that al'_ City Ordinances are approved in the same timE frame. ,.ctivities in the eighth month (following award of the Fran.chrse) would center arouna tr,e installation of interconnecting trunks which will pass primarily throuch Downey, `rico rivera, Santa re Springs ar.d • • • `y Paramount. Distribution trunks and feeders along the interconnect truck route will be placed as we].1. During the ninth month, activity woulc move to Bell Gardens, Lynwood and Commerce where major distribution trunks and associated feeders will be constructed to extend service into these areas, The first subscribers are scheduled to be connected early in the tenth mer.th. Construction will proceed in phases from the tenth month onward, each phase representing about one month of work for three construction crews. Total chases Per City (Prorosed) Bell Gardens - Commerce - 3 Downey - 14 Lynwood - 7 `raramount - 5 Ficc Rivera - 5 Santa re Springs - 3 Since each of the seven Cities must ratify separate Grdinances, it is possible the E'ranchises may be granted over an extended time period. "rcwevcr, should Cablesystems be approved by a majority of the cities and sufficient assurance exists that the remaining Frar:chise will be granted, Cablesystems is prepared 'to start construction planning, pole cermit application, and pole make ready in all member cities to assure concurrent delivery cf service to all cities in the shortest possible time. c) Service will be provided to new residential developments immediately upon first occupancy (barring labor difficulties and%cr Acts of God which may cause constriction delays ar.d provided sufficient notice of occupancy is given.) d) Service will be extended to all portions of residentially zoned areas annexed by the cities regardless of housing density. 'phis Schedule is tc be interpreted in light of circumstances develocing subsecuent to the submission of its application by California Cablesystems, Inc. These circumstances include the decision of tt;e City of Commerce tC aWarC lt5 ):•r anChl e t0 anC %I1 t'=L COmpa nl~. 2~OtWlt'C15 tandlr,g the provisions of Section 5.1 'Hereof, if the provisions of t'r,is Schedule conflict with any provision of this Ordinance, Grdinance P:o. LIOfi or the Franch.i.se Agreement, the provisions of those documents shall take precedence. , Y TASLE CF' CC'tiTENTS SLCTIGi: l: SECTZGr; c: SECTICti 3: SECTIGI: S: SECT'I^vii 5: SECTZCi: E: SECTIGD 7 SLCTIGi: E: SECTION SEC'i'iGN '_G ScCTICN 11: SECT iCP: 12 SLCT1Gh 1?: SECTIGI: 14: SECTIGt•7 15: SEC7IG*< 16: SECTION 17: `T'ITLE I2:TEI~T GkANT OF F'kP.i~CY.ISE DEF IiIITIGPiS GE:E::P,L kE~liIREMEivTS CG't:STFliCTIC'2v APL SE,kVICE FE~GIREiQEi~TS SYSTEM DESIGri AND PERFOki~1?NCE F:E~UIF.EN'.E2•;TS SEkVICL AIvD PkGGT.P1~iP1II~G kE~L'IkEt-'iEMTS SL'FFOkT FOk LCCAL FRGGF.Ah1.1ZPaG kF.IES ANL C'r,P.kGES F'ukCI:ASING, TkP.ININC. P.tiL HIkItvG kE~liIkEDF.NTS RLGULAT Iia: kIGFTS GF Ii~%IVIliliALS PkCTECTE;, T~k[~,It:hTIGi~ AIL F.ENESvAL, kZGHT TG PUkCfiASE THE SYSTEbI SLFAkAEiLITY i FCRCE t~1?JEukE; G:.Aiv1Ei'S ID.PyILITY TC FEkFCRM