CC - Item 3C - Amending Cable T.V. Provisions Of Municipal CodeWALLIN, KRESS, REISMAN & KRANITZ
LAW OFFICES
2600 TWENT"-E-GHTH SIR T. SVITE 16
SANTA MONICA, CALIFORNIA 00405-6205
TELEPHONE 13101 450-9582
FACSin,LE 13101 050-0506
MEMORANDUM
DATE: June 7, 2000
TO: Frank G. Tripepi, City Manager
FROM: Cary S. Reisman, Assistant City Attornex
-SUBJECT: ORDINANCE NO. 807 AMENDING-CABLE-TELEVISION-PROVISIONS
OF MUNICIPAL CODE • CHAPTER 5.28
PURPOSE: The purpose of this item is consider and introduce amendments to the
Rosemead Cable Television Ordinance, Chapter 5-28 of the Rosemead Municipal Code,
- preparatory to adopting the franchise renewal agreement with Charter Communications
Entertainment II.
BACKGROUND: The City's franchise agreement with Charter Communications is
-----scheduled to-expire-on-June-27-,2000. The-original-agreement,-to-which-Charter-succeeded,
was a nonexclusive fifteen year cable television franchise granted to Falcon Communications.
.-Ownership of the cable company has changed several times over the years. Charter
Communications has been the owner-and operator of the cable system since October, 1995.
At the end of 1998, the City Council approved Paul G. Allen's purchase of Charter. During
review and negotiations leading up to approval, City Staff negotiated with Charter regarding
renewal of Charter's franchise. A public hearing, attended by Mel Matthews of Charter, was
- --held-in December, 19987 The negotiations and hearing resulted in an agreement in principle--
for the renewal which the-Council-approved-.:
The federal Ca
renewals. The
" Whether the cable operator has "substantially complied" with the material
terms of the franchise and with applicable law.
Whether the quality of the operator's service has been "reasonable in light of
community needs".
tip; t r
JUN 1.3 2000
ITEM No. 112, C,
must consider the following four factors:
WALLIN, KRESS, REISMAN & KRANITZ
LAw orr,c63
Frank G. Tripepi, City Manger
June 7, 2000
Page 2
Whether the cable operator has the financial, legal and technical ability to
provide the services, facilities, and equipment set forth in the proposal.
" Whether the operator's proposal is reasonable to meet the future needs and
interests of the community, taking into account the cost of those needs.
ANALYSIS: Under the Cable Act, a city can only deny a franchise renewal if the incumbent
company has substantially failed to offer reasonable levels of service, has failed to comply with
the terms of the franchise, or lacks the financial, legal or technical ability to provide services
reasonable to satisfy community needs.. No_substantial-failures on the_part of_Charter _
Communications came to light during the hearing proceedings, and staff has not been made
aware of any such failures since.
As of the date of preparation of this staff report, the proposed agreement is still being reviewed
by Charter. We will provide final copies of it to the Council next week for consideration at the
- - - - Council meeting on June 13,-2000. -The franchise agreement will be-on the agenda for the-
June 27 meeting. The renewal agreement will extend Charter's franchise for an additional ten
years. It clarifies the method of computation of franchise fees. It continues low income Senior
Citizen discounts for basic cable service with a differing percentage based upon the type of
service supplie-d.- It-pro_v,ides_for_recovery.of-.the_City.'s-franchise-renewal-costs_from-the-cable-
company, and that such costs will not be passed through to subscribers. It provides for
- - - educational and government access, equipment grants; including provision of new character
- - - generating equipment to post city notices and video equipment, as well as programming _
support and technology upgrades. It also clarifies customer service requirements and provides
for rate regulation if the FCC again permits municipalities to regulate rates. It contains a
"favored nations" clause. And it provides for installation and provision of cable television and
__--cable-modems-in all designated-City and-public service buildings without-cost to the City-or--
other agencies.
Staff has prepared the renewal agreement and corresponding Ordinance updates to reflect the
--negotiations-, -negotiations, and-to-account forchanges in the-laws'since-the original-Ordinance was adopted
Attached are 1) a copy of Ordinance No. 807; 2) a redlined copy of the Ordinance showing the
` changes from-the"existing Ordinance; 3) a full copy of Chapter 5.28 of the Rosemead
Municipal Code; and 4) a copy of the draft Franchise Agreement which is being reviewed by
Charter.
RECOMMENDATION: Introduce Ordinance No. 807, receive the renewal agreement,
and consider adoption of both at the City Council meeting on June 27, 2000.
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ORDINANCE NO. .~DZ_
AN, ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
AMENDING CHAPTER 5.28 OF THE ROSEMEAD MUNICIPAL CODE,
PROVIDING FOR THE ESTABLISHMENT AND GRANTING OF FRANCHISES
FOR THE MAINTENANCE AND OPERATION OF CABLE TELEVISION
SYSTEMS AND FOR THE CONTINUING REGULATION AND
ADMINISTRATION OF THESE FRANCHISES.
THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY ORDAIN
AS FOLLOWS:
Unless expressly repealed or amended by the following sections, the existing provisions of
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Chapter 5.28 of the Rosemead Municipal Code entitled the "Cable Television Franchise Law of the
City of Rosemead," shall continue to be applicable.
SECTION I. Chapter 5.28 of Title 5 of the Rosemead Municipal Code is hereby amended in
the following particulars:
Section 5.28.020 DEFINITIONS is amended in the following particulars only:
A. The definition of "Additional Subscriber Service " is hereby amended to read as follows:
"Additional Subscriber Service" means any service not included in-basicsubscriber-television-
service, basic subscriber radio service or institutional service, as defined in this section, including, but
not limited to, pay cable, interactive services, cable modem services, and cable telephone services.
B. The def nition of "Cable communications system" or "system, " is hereby amended to read
23 asfollows:
24 "Cable communications system" or "system," sometimes referred to as "cable TV system,"
25 "CATV system" or "broadband communications network," means a system of antennas, cables,
26 amplifiers, towers, microwave links, cablecasting studios, and any other conductors, converters,
27 equipment or facilities, designed and constructed for the primary purpose of distributing video
28 programming to home subscribers, and the secondary purpose of producing, receiving, amplifying,
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storing, processing, or distributing audio, video, digital, or other forms of electronic or electrical
signals. Such term does not include:
1. A facility that serves only to transmit television signals of one (1) or more television
broadcast stations;
2. A facility that serves Subscribers without using any Public Right-ofWay;
3. A facility of a common carrier, which is subject in whole or in part to the provisions of
Title II of the Federal Telecommunications Act of 1996, except that such facility shall be considered
Cable communications system to the extent such facility is used in the transmission of Video
Programming directly to Subscribers, unless the extent of such use is solely to provide interactive on-
demand services; or
4. An open video system that complies with Section 653 of the Federal Telecommunications
Act of 1996: or
5. Any facilities of any electric utility used solely for operating its electric utility system.
C. The definition of "Channel" is hereby amended to read as follovvs:
"Channel" means a radio frequency band capable of carrying combinations of video, audio,
digital or other non-video signal, including a digitally compressed channel.
-D. -The defiiziiion of "Gross Annual Revenue "is deleted. A it", definition is added as
follows:
_ _ `'Gross Revenue'=means-all cash or other consideration-received=directly or indirectly by a
grantee and its affiliates, subsidiaries, parent and any person in which a_grantee has a financial-_
interest, or from any source whatsoever, arising from or attributable to the sale or exchange of cable .
services by a grantee within the City or in any way derived from the operation of its system,
including, but not limited to, "Basic Subscriber Television Service," "Basic Subscriber Radio
Service," "Institutional Service," "Additional Subscriber Service," Premium and Pay Services, leased
channel fees, converter rentals or sales, revenue from cable Internet services, cable modem rentals or
sales, revenue from telephone and other services which may be provided over the Cable
Communications System, studio rental, and advertising revenues. Such gross revenues shall not be
reduced for any purpose other than as provided in this Chapter and shall be the basis for computing
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the fee imposed pursuant to Section 5.28. 100 of this Chapter. Such gross revenue shall not include
converter deposits, modem deposits, or refunds to subscribers by the grantee, or items excluded by
I Federal law.
E. The definition of "Year" is amended to read as follows:
"Year" means the remaining portion of 2000. Thereafter, "year" means a full calendar year.
Section 5.28.030 Grant of franchise is amended in the following particulars only:
Subsection B is amended to read as follows:
B. Basis for Award of Franchise. Pursuant to Federal and State law, the City Council may
base its award of a cable communications system franchise on the following criteria:
1. For every New Franchise:
12 a. Quality of service; and
13 b. Equal service for all areas of the City, without regard to income of the residents; and
14 c. Adequate public, educational, and governmental access channel capacity, facilities, and
16 financial support; and
16 d. Adequate assurance that the cable operator has the financial, technical, and legal
17 -qualifications to provide cable service.
18 e. Any other consideration that will safeguard the local public interest. -
19 _-2. For every.Franchise-Renewal-~-=
20 a. Whether the cable operator has substantial ly_complied, with the material terms of the-
21 franchise and with applicable-law.-
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b. Whether the quality of the operator's service has been reasonable in light of community
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needs.
c. Whether the cable operator has the financial, legal and technical ability to provide the
services, facilities and equipment set forth in the proposal.
d. Whether the operator's proposal is reasonable to meet the future needs and interests of the
community, taking into account the cost of those needs.
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I Subsection E. Duration is amended to read as follom,s:
2 E. Duration. The term of the franchise and all rights, privileges, obligations and restrictions
3 pertaining thereto shall not exceed ten (10) years from the effective date of the franchise unless
4 terminated sooner as hereinafter provided. No franchise shall be effective unless, within thirty (30)
5 days after approval by the Council, the grantee files in the appropriate office of the city a written
6 acceptance of the franchise.
7 Subsection I is added to read as follouvs:
8 I. Open Access. It is the policy of the City to encourage open access so that its residents may
9 utilize any Internet Service Provider, whether they receive their Internet Service by means of satellite
10 transmission, cable television, other Fiber Optic cables, or other means. If Federal Law permits
11 franchising authorities to require open access, the grantee shall permit open access to the fullest
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12 extent permitted by law.- - - -
14 Section 5.28.060 Operation and maintenance is amended in the following particulars only:
15 Subsection A is amended to read as follows: -
16 A. Open Books and Records. The grantee shall maintain an office within five (5) miles of the
17 Crty and shall manage all of its operations in accordance with a policy of totally open books and
18 records,_Thegrantor shall.have the right to inspect at any time during normal business hours, all
19 -books.-records, maps plans, income_tax retiuvsfnancial statements,:service complainflogs, - _
20, performance test results and other_like_materials_of_the_grantee_which:relateaoahe_operation_of.the
21 franchise. Access to the aforementioned records shall not be denied by the grantor on the basis that 22 the records contain proprietary information.
23 Subsection C 2 is amended to read as follotivs:
24 C. Reports.
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26 2. Monitoring and Compliance Reports. No later than April 15th of each year, the grantee
27 shall provide a written report of the FCC performance tests for the Cable Television System required
28 in Part 76, Section 76.601 of FCC Rules and Regulations. In addition, the grantee shall provide, .
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11 reports of the test and compliance procedures established by the franchise agreement, no later than
11 thirty (30) days after the completion of each series of tests.
Subsection D is amended to read as follows:
D. Maintenance and Complaints.
1. The grantee shall maintain an office within five (5) miles of the City which shall be open
during all usual business hours, shall have a publicly listed toll-free telephone number, and be so
operated to promptly answer subscriber telephone calls and to act upon complaints and requests for
repairs or adjustments, on a twenty-four (24) hour basis. A written log shall be maintained listing all
complaints and their disposition. Grantee shall maintain a location within the City for the making of
payments, which shall be open during normal business hours and a reasonable number of evening and
weekend hours, unless grantee establishes to the satisfaction of grantor, hardship sufficient to excuse
-grantee from this requirement-- - -
- 2. The grantee shall render efficient service, make repairs promptly, and interrupt service only
for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be
preceded by notice and shall occur during period of minimum use of the system. A written log shall
be maintained for all service interruptions. -
3_ The grantee shall not refuse to provide service to any customer or prospective customer
conditioned upon such person providing a Social Security number to grantee if such person provides
'-a driver's license number_or Calif6- iia I D numbei. Existing customersofthe-grantee-will not be-
asked more than the-last.four-digits_of.their_Social-Security number_or_driver's.license/California I.D.
number.- After establishment of an account, existing customers, may-set up an individualized Personal-
Identification Number (PIN) for use in verifying identity. No number will be required as a
prerequisite to ordering routine repair service by existing customers. .
4. The grantee shall maintain a repair force of technicians capable of responding to subscriber
complaints or requests for service within twenty-four (24) and forty eight (48) hours after receipt of
the complaint or request, respectively. Repair service appointments shall be offered in four hour
blocks. No charge shall be made to the subscriber for repair service unless the problem was caused
by an act of the subscriber.
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5. The grantor shall ensure that all subscribers, programmers, and members of the general
public have recourse to a satisfactory hearing of any complaints, where there is evidence that the
grantee has not settled the complaint to the satisfaction of the person initiating the complaint. The
grantor shall establish procedures for handling and settling complaints.
Section 5.28.070 Regulation of franchise and rates is amended in the following particulars only:
A new preamble is added, preceding subsection A, to read as folloirs:
Regulation of rates and other terms for the provision of service to customers as set forth
hereinbelow shall be subject to and limited by applicable restrictions imposed by Federal and State
law. If and when such restrictions are removed or modified, enforcement of provisions hereof which
are not currently fully enforceable shall be enforced to the maximum extent permitted by law.
Section 5.28.140 Miscellaneous Provisions is amended in the following particulars only: - - - -
14 Subsection A is amended to read as follows:
A. Compliance with Laws. Notwithstanding any other provision of this Ordinance or the
16 franchise to the contrary, the grantee at all times shall comply with all.laws and regulations of the -
17 state and federal government or any. administrative agencies thereof-, provided, however, if any such
18 state or-federal law or regulation. shalI require-the grantee to perform any_ervice, or shall permit the
- 19 -grantee to'perform nhy`service-or shall-prohibit the grantor from enforcing-provisions-of-this- - - _
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Qrdinance_or_the_frane-..Or-.or shall prohibit the grantee _from performing any service in conflict with
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the terms of the.franchise_or of any lavL or.regulation of the grantor, then, as soon as possible
following knowledge thereof, the grantee shall notify the grantor of the point of conflict believed to
exist between such regulation or law and the laws or regulations of the grantor or the franchise.
If the grantor determines that a material provision of this chapter is affected by any- - -
subsequent action of the state or federal government, the grantor shall have the right to modify and/or
interpret any of the provisions of this chapter to such reasonable extent as may be necessary to carry
out the full intent and purpose of this chapter consistent with said regulation or law.
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Section 2. This Ordinance has been determined to be exempt from the California
Environmental Quality Act pursuant to State Guidelines § 15061 (b)(3) as a project that has no
potential for causing a significant effect on the environment.
Section 3. The City Clerk shall certify to the adoption of this Ordinance.
PASSED, APPROVED and ADOPTED this _ day of , 2000.
City of Rosemead
ATTEST:
City Clerk---- - - - - - - - - - - - -
City of Rosemead
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REDLINE COPY
ORDINANCE NO. 807
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
AMENDING CHAPTER 5.28 OF THE ROSEMEAD MUNICIPAL CODE,
PROVIDING FOR THE ESTABLISHMENT AND GRANTING OF
FRANCHISES FOR THE MAINTENANCE AND OPERATION OF CABLE
TELEVISION SYSTEMS AND FOR THE CONTINUING REGULATION AND
ADMINISTRATION OF THESE FRANCHISES.
THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY
ORDAIN AS FOLLOWS:
Unless expressly repealed or amended by the following sections, the existing provisions
of Chapter 5.28 of the Rosemead Municipal Code entitled the "Cable Television Franchise Law
of the City of Rosemead," shall continue to be applicable.
SECTION I. -Chapter 5.28, of Title 5 of the Rosemead.Municipal Code is hereby _
amended in the following particulars:.
Section 5.28.020 ^DEFINITIONS is amended in the following particulars only:
A -The definition of 'Additional Subscriber Service "is hereby. amended to read as
follows:
"Additional Subscriber Service" means any service not included in basic subscriber
television service, basic subscriber radio service or institutional service, as defined in this
section, including, but not limited to, pay-cablepay cable, interactive services, cable modem
services, and cable telephone services.
B. The definition of "Cable communications system" or "system, " is hereby amended to
read as follows:
"Cable communications system" or "system," sometimes referred to as "cable TV
system," "CATV system" or "broadband communications network," means a system of antennas,
cables, amplifiers, towers, microwave links, cablecasting studios, and any other conductors,
converters, equipment or facilities, designed and constructed for the primary purpose of
distributing video programming to home subscribers, and the secondary purpose of producing,
receiving, amplifying, storing, processing, or distributing audio, video, digital, or other forms of
electronic or electrical signals.
Such term does not include:
1. A facility that serves only to transmit television signals of one (1) or more television
broadcast stations;
2. A facility that serves Subscribers without using any Public Right-ofWay;
3. A facility of a common carrier, which is subject in whole or in part to the provisions of
Title H of the Federal Telecommunications Act of 1996, except that such facility shall be
considered a Cable communications system to the extent such facility is used in the transmission
of Video Programming directly to Subscribers, unless the extent of such use is solely to provide
interactive on-demand services; or
4. An open video system-that-complies with Section-653 of the Federal--
Telecommunications Act of 1996; or _
5. Any facilities of an _electric utility used solely for operating-its electric utility system.--
C. The definition o 'Channel f is hereby amended to read.as olloivs:-=-=
----"Channel"means-a"e'_x Mega' efff- "''T radio frequency band,, ~ iieh is capable of
- carrying combinations of video signal,' aiidio,-digifal or other
non-video signals; a digitally compressed channel.
D"The definition of 'Gross Annual Revenue "is deleted. A new definition is added as
follows:
"Gress annual revenues" Faeans the ap itial"Gross Revenue" means all cash or other
consideration received directly or indirectly by a grantee and its affiliates, subsidiaries, parent,
and any person in which a grantee has a financial interest, or from any source whatsoever, arising
from or attributable to the sale or exchange of cable services by a grantee within the City or in
any way derived from the operation of its system, including, but not limited to, "Basic Subscriber
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Television Service," "Basic Subscriber Radio Service," "Institutional Service," "Additional
Subscriber Service," Premium and Pay Services, ]eased channel fees, converter rentals or sales,
revenue from cable Internet services, cable modem rentals or sales, revenue from telephone and
other services which may be provided over the Cable Communications System, studio rental, and
advertising revenues. Such gross revenues
of the saable eemiffluniGations system, exsept that any sales, exeise or other taxes eellested-fef
diFeet pass thfoug to 1......1 state er federal gavemment shit net b 1 a a shall not be
reduced for any purpose other than as provided in this Chapter and shall be the basis for
computing the fee imposed pursuant to Section 5.28. 100 of this Chapter. Such gross revenue
shall not include converter deposits, modem deposits, or refunds to subscribers by the grantee, or
items excluded by Federal law.
E. The definition of 'Year °is amended to read as follows:
"Year" means the remaining portion of 49542000. Thereafter, "year" means a full
calendar year.------ - - - - - -
Section 5.28.030 Grant of franchise is amended in the following particulars only_
- Subsection B is amended to read as follows:
- '--B.'Bdsis for Award`ofFranchise.-Piirsuanfto r l:a °°°~t a c
5446HFederal and State law, the City Council may base its award of a cable communications -
- ` system franchise on-the-following cnteria: - '
. `=1- 1`. For every New Franchise: -
a. Quality of service; and
4Cam perienee and F."„'„ ial sibil:ty of the plie "t. and
b. Equal service for all areas of the City, without regard to income of the residents; and
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c. Adequate public, educational, and governmental access channel capacity, facilities,
and financial support; and
d. Adequate assurance that the cable operator has the financial, technical, and legal
qualifications to provide cable service.
e. Any other consideration that will safeguard the local public interest.
2. For every Franchise Renewal:
a. Whether the cable operator has substantially complied with the material terms of the
franchise and with applicable law.
b. Whether the quality of the operator's service has been reasonable in light of
community needs.
c. Whether the cable operator has the fmancial, legal and technical ability to provide the
services, facilities and equipment set forth in the proposal.
d. Whether the operator's proposal is reasonable to meet the future needs and interests of
- the-conummity,-taking into accountthe cost of those needs - - - - -
- " - Subsection E: Duration is amended to read as follows:- - ' - - - - -
E. Duration. The term of the franchise and all rights, privileges, obligations and
restrictions pertaining thereto shall' not exceed ten (1-50) years from the effective date of -
- the franchise unless terminafed sooner as hereinafter provided. Tlie No franchise shall be._
effective date of the - a ordinanee shall unless; within thirty (30) days after- -
- office of the city a w ntten acccp_
_ept ance-of the franchise, 44ia •.~:a -
Subsection I is added to read as follows:
1. Open Access. It is the policy of the City to encourage open access so that its residents
may utilize any hitemet Service Provider, whether they receive their Internet Service by means of
satellite transmission, cable television, other Fiber Optic cables, or other means. If Federal Law
permits franchising authorities to require open access, the grantee shall pernrit open access to the
fullest extent permitted by law.
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Section 5.28.060 Operation and maintenance is amended in the following particulars only:
Subsection A is amended to read as follows:
A. Open Books and Records. The grantee shall maintain an office within five (5) miles
of the fitan^"i°iteryCity and shall manage all of its operations in accordance with a policy of
totally open books and records. The grantor shall have the right to inspect at any time during
normal business hours, all books, records, maps, plans, income tax returns, financial statements,
service complaint logs, performance test results and other like materials of the grantee which
relate to the operation of the franchise. Access to the aforementioned records shall not be denied
by the grantor on the basis that the records contain proprietary information.
Subsection C 2 is amended to read as follows:
C. Reports. - - - - -
2.. Monitoring and Compliance Reports. No later than April 15th of each year, the - I -
- grantee shall provide a written report of the FCC performance tests for the Home Subseribe
NetrvRFkCable Television System required in Part 76; Section 76.601_of FCC Rules and
Regulations. In addition, the grantee_ shall provide, in aesefdanee with Seetion , reports of the
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- - - test and compliance procedures established-by the franchise agreement, no later than thirty (30)-
days after the completion of each series of tests - -
--=Subsection D is=amended°to read as follows. - - - _ _ _
= D. Wain' tenance4nd Complaints.
1. The grantee shall maintain an office inwithin five (5) miles of the ftaishise
territeF~City which shall be open during all usual business hours; shall have a publicly listed
toll-free telephone number, and be so operated to r_promptly answer subscriber telephone
calls and to act upon complaints and requests for repairs or adjustments, on a twenty-four (24)
hour basis. A written log shall be maintained listing all complaints and their disposition.
Grantee shall maintain a location within the City for the making of payments, which shall be -
open during normal business hours and a reasonable number of evening and weekend hours,
unless grantee establishes to the satisfaction of grantor, hardship sufficient to excuse grantee
from this requirement.
2. The grantee shall render efficient service, make repairs promptly, and interrupt service
only for good cause and for the shortest time possible. Such interruptions, insofar as possible,
shall be preceded by notice and shall occur during period of minimum use of the system. A
written log shall be maintained for all service interruptions.
3. The grantee shall not refuse to provide service to any customer or prospective
customer conditioned upon such person providing a Social Security number to grantee if such
person provides a driver's license number or California I.D. number. Existing customers of the
grantee will not be asked more than the last four digits of their Social Security number or driver's
license/Califomia I.D. number. After establishment of an account, existing customers may set-up
an individualized Personal Identification Number (PIN) for use in verifying identity. No number
- - - will be required as a prerequisite to ordering routine- repair-service by-existing customers..
4. The grantee shall maintain a repair force of technicians capable of responding to
subscriber complaints or requests for service wrthiotwenty_four (24) aiid forty eight (48) hours a
-after receipt of the complaint or request, respectively.- Repair service, appointments shall be
- offered in four-hour blocks. No charge shall be made to the.subscriber for -
.repair service unless the problem was caused by an act of the subscriber:
5-The grantorshall'ensure'that-allsubscribers; programmers; and_membersofthe- -
general public hate recourse to a satisfactory hearing-of any complaints, where-there is -evidence------------
that the grantee has not settled the complaint to the satisfaction of the person initiating the
complaint. The grantor shall establish procedures for handling and settling complaints.
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Section 5.28.070 Regulation of franchise and rates is amended in the following particulars
only:
A new preamble is added, preceding subsection A, to read as follows:
Regulation of rates and other terms for the provision of service to customers as set forth
hereinbelow shall be subject to and limited by applicable restrictions imposed by Federal and
State law. If and when such restrictions are removed or modified, enforcement of provisions
hereof which are not currently fully enforceable shall be enforced to the maximum extent
permitted by law.
Section 5.28.140 Miscellaneous Provisions is amended in the following particulars only:
Subsection A is amended to read as follows:
A. Compliance with Laws. wee Notwithstanding any other provision of this
Ordinance or the franchise to the contrary, the grantee at all times shall comply with all federal
a ^.e „fr.n:c mia i.,w aswell~as A eib' E)-a=.:
K - :.i laws and ie`gulations.
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'herete f re er here„Ae: adopted t„ of r, fr hi of the state
and federal government or any administrative agencies thereof, provided, however,-if any such -
state or federal law or regulation shall. require the grantee to-perform any service, or shall permit
-----the -grantee to perform any service,, or shall prohibii the grantor from enforcing provisions-of this
Ordinance or the franchise, or shall prohibit the grantee from performing any service in conflict
with-tite'terms"of the franchise or of any law & egulation of the grantor, then, as soon as
--possible following-knowledge tliereof, the grantee shall notify the grantor of the point of conflict
believed to exist between such regulation or law and the laws or regulations of the grantor or the
franchise.
if the grantor determines that a material provision of this chapter is affected by any
subsequent-action of the state or federal government, the grantor shall have the right to modify
and/or interpret any of the provisions of this chapter to such reasonable extent as may be
7
necessary to carry out the full intent and purpose of this chapter consistent with said regulation or
law.
Section 2. This Ordinance has been determined to be exempt from the California
Environmental Quality Act pursuant to State Guidelines § 15061 (b)(3) as a project that has no
potential for causing a significant effect on the environment.
Section 3. The City Clerk shall certify to the adoption of this Ordinance.
PASSED, APPROVED and ADOPTED this _ day of 2000.
Mayor _
- - City of Rosemead - - -
ATTEST:
City Clerk=
= City of Rosemead
5.28.010
Chapter 528
used in the present tense include the future
tense, words in the plural number include the
CAB
LE COMMUNICATIONS
singular number, and words in the singular
FRANCHISES
number include the plural number. The word
"shall" is always mandatory and not merely
Sections:
directory.
- 5.28.010
Short title.
"Additional subscriber service" means any
528.020
Definitions.
service not included in basic subscriber tele-
5.28.030
Grant of franchise.
vision service or basic subscriber radio service
5.28.040
Design and construction
or institutional service, including
but not
provisions.
,
limited to, pay-cable.
. 5.28.050
Service provisions.
"Agency subscriber" means a subscriber
528.060
Operation and
who receives a service in a government or
maintenance.
public agency, school or nonprofit corporation.
528.070
Regulation of franchise
"Basic subscriber radio service" means the
- - -
and rates.--
Provision- to . all- subscribers of such- audio -
- -
5.28.080
Regulation of franchise.
services as the retransmission of broadcast AM
528.090
Community Access
or FM radio signals, the retransmission of
Corporation.
shortwave, weather, news, time and other
5.28.100--
- General-financial-and -
----similar--audio--broadcast-channels; -and-the -
insurance provisions.
transmission of cablecast ANI or FIvI radio -
528.110_
-_-.Rights reserved to the
signals, as permitted by the FCC,
grantor.
"Basic subscriber television service" means
--5:28.120
Rights of individual
- the-total-of all of the following:
protected.
I. The retransmission to all subscribers of
528.130
Termination and renewal.
all broadcast television channel signals autho- -
5.28.140
Miscellaneous provisions.
rized by_the, FCC-and provided for. in franchise
- 528.150
Franchise appLcatious.
agreement;
-
2. The provision to all subscribers of non-
5.28.010
Short title.
broadcast open channel signals, originating
- = - -This chapt
er shall be known and -in be-
from sources outside the cable communica- - ` -
cited as the "City of Rosemead Cable Commu- tions system;
nications Franchise Ordinance." (Prior code § 3. The cablecasting to all subscribers of
6700) the local origination channel, and the public,
educational and government access channel
528.020 Definitions. signals:
For the purposes of this chapter, the fo]- 4. The transmission to all subscribers of
other cablecast open-channel signals.
]owing words, terms, phrases and their deriva- all Basic subscriber television service may be
tions shall have the meanings eiven herein.
When not inconsistent with the context, words offered to subscribers in one or more tiers or
combination of programs.
91
5.28.020
"Broadcast signal" means a television or
institutions, or from institutions to residential
radio signal that is transmitted over the air to
subscribers.
a wide geographic audience and is received by
"Commercial subscriber" means a subscrib-
a cable communications system off-the-air or
er who receives a service in a place of busi-
by microwave link.
ness where the service may be utilized in
- "Cable communications system" or "sys-
connection with a business, trade or profes-
tem," sometimes referred to as "cable TV
sion.
system," "CATV system" or "broadband com-
"Community access corporation" means the
munications network," means a system of
nonprofit, public corporation, hereinafter de-
antennas, cables, amplifiers, towers, micro-
fined, whose duties shall include the financing,
' wave links, cablecasting studios, and any other
management and programming of the commu-
conductors, converters, equipment or facilities,
nity and public access channels.
designed and constructed for the primary
"Converter" means an electronic device
purpose of distributing video programming to
which converts signal carvers from one form
home subscribers, and the secondary purpose
to another.
-------of-producing, receiving, amplifying, storing,
- -"Educational-channel" or -educational- ac- -
processing, or distributing audio, video, di.i-
cess channel" means any channel where edu- -
tal, or other forms of electronic or electrical
cational institutions are the only designated
signals.
programmers. -
- -
- °Cablecast sirral" means-a non=broadcast
--"FCC"meanstheFederal:Communications..--
signal that originates within the facilities of
Commission, or a designated representative.
the cable communications system.
"Franchise agreement" means a signed and
"Channel" means a six Megahertz (MHz)
notarized statement on the part of both grantor
--frequency band, which is capable of carrying
and grantee accepting and agreeing to all of
- either one standard video signal, a number of
the provisions of a franchise granted pursuant -
audio, digital or other non-video signals, or
to this chapter, including referenced speciftca-
- -some combination of-such-signals.
tions; franchise.applicationsj and other related - -
"City" means the city of Rosemead, Cali-
material. The franchise agreement may modify
- fomia;_and.all.of_the.territory_.within its_pres_
terms- of-this _chapter__by_mutuaLagreement,
ent and future corporate boundaries.
with any such modification requiring confer-
- '
"City Council"-means the Council of-the-
mation-by-appropriate ordinance-amendment.
city of Rosemead, or such representative per-
"Government channel" or "government ac-
son or entity as may be designated initially or
cess channel" means any channel where local
at some future date to act on cable commu-
government agencies are the only designated
nications matters.
programmers.
"Closed circuit" or "institutional service"
"Grantee" means the person or entity to
means such video, audio, data and other ser-
which a franchise henceforth is granted for the
vices provided to institutional users on an
construction, operation, maintenance, and
individual application, private channel basis.
reconstruction of a Cable Communications
These may include, but not be limited to, two-
System, and the lawful successors, transferees,
way video, audio or digital signals among
or assignees of said corporation or entity.
92 - -
5.28.020
"Grantor" means the city of Rosemead as
"Person" means any corporation, partner-
represented by the City Council acting within
ship, proprietorship, individual or organization
the scope of its jurisdiction.
authorized to do business in the state of Cali-
"Gross annual revenues" means the annual
fornia, or any natural person.
gross revenues received by the grantee from
"Private channel" or "closed-circuit chan-
all sources of operations of the cable commu-
nel" means any channel which is available
nications system, except that any sales, excise
only to subscribers who are provided with
or other taxes collected for direct pass-through
special converter or terminal equipment to
to local, state or federal government shall not
receive signals on that channel.
be included.
"Programmer" means any person or entity
"Leased channel" or "leased access chan-
- who or which produces or otherwise provides
nel" means any channel available for lease and
program material or information for transmis-
programming by persons or entities other than
sion by video, audio, digital or other signals,
the grantee, including those portions of the
either live or from recorded tapes or other
other access channels not in use by their des-
storage media, to subscribers, by means of the
__.tgnated programmers._
- - -
.-Cable Communications System.
"Local origination channel" means any
"Public access channel," "community access
channel where the grantee is the only desia
channel" or "community channel" means any
nated programmer and provides video pro-
channel where any member of the general
grams-to-su scn ers.--- _
-
- ublic or-an : ponco-_m___'mercial -organization
"Monitoring" means observing a one-way
may be a programmer,. without charge,- on a
communications signal,. or the absence of a
y -
first-come, first-served,. nondiscriminatory
signal,-where the"-observer is neither the sub-
basis. _
scriber nor the programmer, whether the signal
"Resident" means any person residing in the
is observed by visual or electronic means, for -
city as otherwise defined by applicable law.
any .purpose whatsoever.
"Residential subscriber" means a subscriber
on-broadcastsignal"_means a signal that ,
--who received.a-service-in=an individual=dwell - - -
is transmitted bya cable communications sys-
ing unit, where the service is not to be utilized
tem and that is not involved in an over-the-air _
in connection_with.a business,-.trade _or-profes= "
broadcast transmission path.
sion.
- =-='Open channel-'-means any channel that can
"School" means any educational institution
be received by all subscribers, without the
including primary and secondary schools,
necessity for special equipment.
colleges and universities, both public and
"Pay-cable" or "pay-television" means the
private.
delivery to subscribers, over the cable com-
"Section" means any section, subsection or
munications system, of television signals for
provision of this franchise ordinance.
a fee or charge to subscribers over and above
"Streets and public ways" means the surface
the charge for basic subscriber service, on a
of and the space above and below any public
per program, per channel, or other subscription
street, sidewalk-, alley or other public way of
basis.
any type whatsoever, now or hereafter existing
as such within the city.
93
5.28.020
"Subscriber" means any person, firm, cor-
services of cable communications system as
poration or other entity who or which elects to
required by the provisions of this chapter and
subscribe to, for any purpose, a service provid-
the franchise agreement. The franchise shall
ed by the grantee by means of or in connec-
include those provisions of the grantee's ap-
tion with the Cable Communications System.
plication for franchise that are finally negotiat-
"Tapping" means observing a two-way
ed and accepted by the grantor and grantee in
communications signal exchange, where the
writing.
observer is neither of the communicating
The franchise shall be granted under the
parties, whether the exchange is observed by
terns and conditions contained herein, consis-
visual or electronic means, for any purpose
tent with grantor statutory requirements, which _
whatsoever. -
are incorporated by this reference as if fully
"Year" means the remaining portion of
set forth herein. In the event of conflict be-
1984. Thereafter, "year" means a full calendar
tween the terms and conditions of the fran-
year. (Prior code § 6701)
chise and the terns and conditions on which
the grantor can grant a franchise, the statutory
-5.28.030--"Grant of franchise. -
requirements shall, without exception, control.
A. Public Hearing. The City Council shall
The franchise shall be subject to the general
hold a duly noticed public hearing prior to
ordinance provisions now in effect or hereafter
granting any cable_communicatio_ns_system--; _
made effective. Nothing in the franchise. shall
franchise. Notice of the hearing shall be pub
be deemed to waive-the requirements of the
_ - ' - -lished-at least ten days prior to the hearing in _
various codes and ordinances of the city re-'
-
a-newspaper of general circulation in the city - -
warding permits, fees to be paid, or manner of -
o
- - B. -Basis for Award of Franchise:-Pursuant -
construction: - -
to California Govenunent Code Section 53066,
D. -Use of Public Streets and Ways. For the - -
the City Council may base its award of a cable -
Purpose of operating and maintaining a cable---.-
communications system franchise on the fol
communications system in the city, the grantee
- - ' 4 lowmg criteria
may-erect,-install; construct, repair; replace,
_
1. Quality of service;
reconstruct and retain in, on, over, under,
- ----.2- -Rates to the subscriber-
upon; across=and along the p`nblic streets and
3._ Income to t
hc city;
ways.within the.city -such wires, cables, con;_
_
T 4. Experience and financial responsibility
ductors, ducts, conduits, vaults, manholes,
of the applicant; and
amplifiers, appliances, pedestals, attachments
5. Any other consideration that will safe-
and other property and equipment as are nec-
guard the local public interest.
essary and appurtenant to the operation of the
C. Grant. In the event that grantor shall
cable communications system. Prior to con-
erant to the -ran e a nonexclusive, revocable
struction or alteration, however, the grantee
franchise to construct, operate, maintain and
shall in each case-file plans with the appropri-
reconstruct a cable communications system
ate city agencies and utility companies, and
within the city, said franchise shall constitute
receive written approval before proceeding.
both a ri lit and an obligation to provide the
E. Duration. The term of the franchise and
all rights, privileges, obligations and restric-
94
5.28.030
tions pertaining thereto shall be fifteen (15)
certified and sworn to as correct by the grant-
years from the effective date of the franchise
ee.
unless terminated sooner as hereinafter provid-
Every such transfer as heretofore described,
ed. The effective date of the franchise granting
whether voluntary or involuntary, shall be
ordinance shall be thirty (30) days after pas-
deemed void and no effect unless grantee shall
sage by the Council unless the grantee fails to
within sixty (60) days after the same shall
file by that time in the appropriate office of
have been made, file such certified copy as is
the city a written acceptance of the franchise,
required.
in which event it shall be null and void.
H. Change in Control. The grantee shall
F. Franchise Nonexclusive. The franchise
promptly notify the grantor of any proposed
--granted shall-be nonexclusive. The grantor
change in, transfer of or acquisition by, any
specifically reserves the right to grant, at any
other party of control of the grantee with
time, such additional franchises for a cable
respect to which the consent of the grantor is
communications system as it deems appropri-
required, pursuant to subsection G of this
ate.
section. Such change in control shall make the
- G.- Franchise- Nontransferable-The -fran-
-fianchise subject to revocation unless and until
chise shall not be sublet or assigned, nor shall
the grantor shall have consented thereto. For
any of the rights or privileges therein granted
the purpose of determining whether it will
or authorized be leased, assigned, sold or
consent to such change, transfer or acquisition
transferred either in whole c r in part, nor shall._
of control, the grantor may inquire-into the
title thereto, either legal.or equitable, or any
qualifications of the prospective controlling
right, interest or property therein, pass to or -
- -
-
party, and the grantee shall assist the grantor
vest in any person, except the grantee,- either
in.any- such- inquiry. The city may condition - - -
by act of the grantee or by operation of law, _
the transfer upon the terms and conditions-as
- without the prior consent of the cityexpressed
it deems appropriate.
_ = . - by ordinance: The granting of such -consent--
- For the purposes of this section, a presump-
_.__shalLnot=render unnecessary:any=subsequent=
---red_.
_rol wilFbe e-stablished upon-- - -
- uve change in cont o
-
_
consent.
the sale or transfer of ten percent or more of
If the_orantee shall ,-.in violation of this sec-
- = - ~
_ ode - - - -
the=--mt--e's=ownershiP`stock=(Prior - c-
tion, transfer the franchise prior to obtaining
6702)
- - city -consent; -a11 of the profits of the cable
communications system from the date of fran-
5.28.040 Design and construction
chise transfer until the date of city consent
provisions.
shall be returned to the system's subscribers,
A. System Design Concept. The cable
on a pro rata basis.-
communications system shall be constructed
The grantee, upon transfer as heretofore de-
in accordance with the provisions of the fran-
scribed shall, within sixty (60) days thereafter,
chise aereement.
_ file" with the city" a copy of the deed, agree-
B. Initial Geographical Coverage. The
ment, mortgage, lease or other written instru- grantee shall design and construct the cable
ment evidencing such sale, transfer or lease, communications system in such manner as to
95 - -
1
have the eventual capability to service every
2. Service need not be provided in any
single-family dwelling unit, multiple-family
area power and telephone utilities are not
dwelling unit, agency and business establish-
available.
ment within the area of the franchise. Service
3. The grantee shall provide a detailed
shall be provided to subscribers in accordance
construction plan indicating progress schedule,
with the schedules and line extension policies
area construction maps, test plan, and project-
specified in the franchise agreement. The
ed dates for offering service. In addition, the
initial route of cables serving institutional
grantee shall update this information on a
subscribers shall be approved by grantor, and
monthly basis, showing specifically whether
confirmed in the franchise agreement.
schedules are being met and the reasons for-
C. Cablecasting Facilities. The grantee
-any delay.
shall provide cablecasting facilities in actor-
F. Penalties for Delay in Construction. The
dance with the provisions of the franchise
grantor may at its sole option, apply any or all
agreement.
of the following penalties in connection with
D. Interconnection. The grantee shall pro- -
-
delays in system construction:
- e-ction-
- vide the imerconn-
-capabIlity specified in
1. Reduction in the duration of the fran-
the franchise agreement. The grantor may, in
chise on a month-to-month basis for each
the future, require the grantee to participate in
month of unexcused delay. exceeding six
interconnecting- the cable communications _
months;---
to- other cable systems in the-greater---
.system
- - `2. -Forfeiture7of-performance bonds - for
Los Angeles metropolitan area. Such intercon-
unexcused delays exceeding one year; _ _
nection may be reguiued wheri both the grantor-,.
3. Termination-of the franchise for unex-- - - -
and the-franchising authority--forthe -other---- -
-cused delays exceeding eighteen (18) months; - - -
_ cable system(s) agree that such interconnection
4:-- If,-after - nine-months-of the .effective . -
is desirable, and also on the number of than
-date of the franchise; grantee has not com- _
-nels to be transmitted and received by each
menced construction and arartt a does not
- - -
commence construction wtthin thirty (30) days
When such interconnection is required, the
of written notice of such failure from grantor, .
-=cost=shall=be=borne=by-both grarttees; in the
subject to the procedural provisions of Section
_ proportion of number of channels received to
5.28.070(E)-grantor may-:impose a. financial
total number of channels transmitted and re-
penalty not to exceed one thousand dollars
ceived, under the assumption that benefits
($1,000.00) per day for each day the grantee
accrue primarily through receipt of additional
fails to initiate construction.
channels.
G. Provision of Service. After service has
In the case of regional or state-wide inter-
been established by activating trunk cables for
connection, the same principle shall apply.
any area, the grantee shall provide service to
E. System Construction Schedule.
any requesting subscriber within that area
1. The grantee shall begin to offer basic
within sixty (60) days from the date of re-
subscriber television and radio service in ac-
quest.
cordance with the schedule contained in the
H. Undergrounding of Cable. The
franchise agreement, or sooner.
undergrounding of cables is encouraged. In
- - - - 96
5.28.040
any event, cables shall be installed under-
L. Emergency Requirements. The grantee
ground at grantee's cost where existing utili-
shall design and construct the system to pro-
ties are already underground. Previously in-
vide for a restricted audio override of the
stalled aerial cable shall be undergrounded in
audio portion of all channels during emergen-
concert with other utilities, when such other
cies. An emergency power source shall be
utilities may convert, from aerial to under-
provided by the grantee. Equipment redundan-
ground construction.- - -
cy shall be provided as required to meet per-
I. Construction Components and Tech-
formance standards during periods of emergen-
niques. Construction components and tech-
cy or component failure.
niques shall be in accordance with the fran-
M. Construction Codes. The grantee shall
- - chise agreement.- _
strictly adhere to all building and zoning codes
J. - Technical and Performance Standards.
currently or hereafter in force. The grantee
System technical and performance standards
shall arrange its lines, cables and other appur-
shall be in accordance with the franchise
tenances, on both public and private property,
agreement
- "
in such a manner as to cause no unreasonable
ce -
- --K Test and-ComPfian Procedure. The
interference with the use of said public or
-
grantee shall submit, concurrent with its fran-
private property by any person. In the event of
chise application, a detailed test plan describ-
such interference, the grantor may require the
ing the methods and schedules for testing the
removal of the grantee's lines, cables and
cable-commumcations_system.on an ongoing
appurtenances-from the property-in question.------
basis to determine-compliance with the provi- -
N. Repair of Streets and Public Ways. Any -
"sions of the franchise.agreement. The tests for
and" all,, streets and .public. ways which are
residential. services_ shall. be --performed.--
-disturbed or damaged during the construction - -
- --periodically, at intervals no greater than-every
of the cable communications system shall be _
six _ months, on
a minimum of twenty (20)
promptly repaired by the grantee, at its ex-
subscriber -television receivers, located -
pence, and to the satisfaction of the grantor.
throughout theservice area. At least eight of
•
- O 'Ere Erection of~P-o]e-s Prohibited. Thegran
t- _ _ -
these locations shall be at the far end of the
ee shall not erect, for any reason, any pole on
--distiibution=tmnk-cables=The=tests=shall=be==
or-along-any street`or-public-way-in=an`exist=
witnessed by representatives of the grantor,
ing aerial utility system. If additional poles in
and written test reports shall be submitted to
an existing aerial route are required, grantee .
the grantor. If more than ten percent of the
shall negotiate with the utility for the installa-
locations tested fail to meet the performance
tion of the needed poles. Any such addition
standards, the grantee shall be required to
shall require the advance written approval of
indicate what corrective measures have been
the grantor. The grantee shall negotiate the
taken, and the entire test shall be repeated for
lease of pole space and facilities from the
at least twenty (20) different locations. A
existing pole owners of all aerial construction,
second failure of more than ten percent may
under mutually acceptable terms and condi-
result, at the grantor's option, in an order to
tions. The grantor shall utilize its best offices
reduce subscriber rates due to degraded ser-
to assist in arriving at equitable pole rental
vice.
agreement.
5.28.0-40
P. Restoration of Streets. Whenever the
directed by the grantor so that the same shall
grantee shall disturb the surface of any street,
not interfere with the public work of the
alley, public highway or ground for any pur-
grantor, and such removal or replacement shall
pose mentioned herein, it shall restore the
be at the expense of the grantee herein.
same to the condition in which it was prior to
R. Trimming of Trees. Nothing contained
the opening thereof, and when any opening is
in this franchise shall be deemed to empower
made by the grantee in any hard surface pave-
or authorize grantee to cut or trim any trees,
ment in any street, alley or public highway,
ornamental or otherwise, in any of the streets,
the grantee shall promptly refill the opening
alleys or public highways, but grantee may cut
and restore the pavement. The grantor may
or trim trees as necessary only pursuant to a
- refill and/or repave in case of neglect of the
prior agreement with the owner of property
grantee. The cost thereof, including the cost of
which-is adjacent to the street area in which
inspection and supervision, shall be paid by
such tree stands.
the grantee. All excavations made by the
S. Street Vacation or Abandonment. In the
grantee in the streets, alleys and public high-
event any street, alley, public highway or
ways--shall-be properly safeguarded for the "
- -'-portion- thereof -used 'by the-grantee shall be
prevention, of. accidents. The work hereby
vacated by the grantor, or the use thereof
required shall be done in strict compliance
discontinued by the grantee, during the term
- with the rules, regulations and ordinances of
of this franchise, the grantee shall forthwith
the grantor. as now or.hereafrer.providedr=_
:remove iu.facilities_therefrom unless-specifi
Q. Reservations of Street Rights. Nothing
cally permitted to continue the same and on -
in the frarichise s1fall_be construed to-prevent
the removal thereof restore, repair-or recon--
the grantor from constructing sewers, grading,
struct the street.area where- such, removal has
_ _ - paving, repairing and/or altering any street;
- occurred, and place the street area where such
_ alley_or_ public highway, or laying down, re-
removal has occurred in such condition as may
pairing-or removing water mains or construct-"
be required by the grantor.- In- the event of =
- - ing maintaining=or-establishing=any-oother
= failure; neglect.or-refusalof=the'grantee;=after
public work. All such work shall be done
thirty (30) days notice by the grantor to repair,
insofar=as-practicable in-such-manner as not
--improve=or=maintain-such-street-portion;-the -
to unnecessarily obstruct, injure or prevent the
grantor may do such work or cause it to be
-free use and operation of the poles, wues,
done, and the cos[ thereof as found and de
conduits, conductors, pipes or appurtenances
clared by the grantor shall be paid by the
of the grantee. If any such property of the
grantee and collection may be made by court
- -
grantee herein shall interfere with the con-
action or otherwise.
struction or repair of any. street or public im-
T. Movement of Facilities. In the event it
provement, whether it be construction, repair
is necessary temporarily to move or remove
or removal of a sewer or water main, the
any of the grantee's wires, cables, poles or
improvements of a street or any other public
other facilities placed pursuant to the fran-
improvement, all such poles, wires, conduits
chise, in order lawfully to move a large object,
or other appliances and facilities shall be re-
vehicle, building or other structure over the
moved or replaced in such manner as shall be
streets, alleys or highways of the grantor,
- - 9
8 -
5.28.040
grantee upon reasonable notice shall move at
may be provided, either within the basic sub-
the expense of the person requesting the tem-
scription rates, or on a premium basis.
porary removal such of his facilities as may be
F. Local Origination Channel(s). The
required to facilitate such movements. (Prior
grantee shall operate the cablecasting studios
code § 6703)
on a high-quality, professional basis for the
purpose of providing cablecast programming
5.28.050 Service provisions.
responsive to local needs and interests. The
A. Services to be Provided. The cable
emphasis for the local origination channel(s)
communications system shall provide, as a
shall be on providing programming that is
minimum, the services listed in the franchise
unavailable to viewers on broadcast television.
agreement. Services shall not be reduced with-
channels. - - - -
_ out prior approval of grantor.
G. Government Access Channel. The
B. Basic Subscriber Television Service
grantee shall provide one or more channels for
(BSTS). The basic subscriber television set-
the use of the grantor at no charge to the
vice shall include the FCC-required services,
grantor. The grantee shall make every effort to
the distant Television broadcast signals, the
-provide advice and technical expertise to aid - -
imported non-broadcast signals, and the provi-
_ in the utilization of the channel(s).
sion of all other cablecast open-channel sip
H. Educational Access Channel. The grant-
n
als. -This service shall - be provided to all
ee shall provide one or more channels for the . .
_
- = subscribers=atthe- estabhshed.BSTS-month]
mouse of the local educational-institutions at no
subscription rates.- Tiers of service may be
charge. The grantee shall make every effort to. -
_proy deddifferent _rates,_to.offer residents
provide advice and technical expertise to aid
- -abroader-choice.
in the utilizauon of die-chan- el
L (s)_ _ -
_ C.. Basic Subscriber Radio Service (B -RS)
Public Access Channel The- g-rantee -
The basic subscriber radio service shall m-
.
shall make at least=one channel available to
s
- - elude the provision of all _ desip ated aiidio -
_3
the ublic at-no char ge-The ublic access"- - ` -
P o P
e_manaaed=and-o
_ - (s-)'shall--b- Perated bY f~"'a°•
eices; including=broadcast=FI4Iand-AM~ =channel
=
~s rv
_
radio, and cablecast FM signals. This service
an independent, nonprofit public corporation, -
established monthly subs cription.rate.
D. Institutional Service (IS). The institu-
tional service shall include the provision of
transmission and/or reception services to insti-
tutional users, on a leased channel basis at es-
tablished IS rates. Services may include the
distribution of video or non-video signals.
E. Additional Subscriber Services. Addi-
tional subscriber services, not included in the
BSTS and BSRS services specified above,
scribed later in this chapter. The grantee shall
make available for programmers of the public
'
access channel the facilities listed in the fran-
chise agreement,_ under terms of a mutual
agreement with the Community Access Corpo-
ration.
J. . Service to Public Buildings. Grantee
shall, at cost, provide and maintain one cable
television drop to eacl `city facility, library and
public school located within the authorized
franchise service area upon request for service.
5.28.050
K. Service to Nonprofit Schools. Grantee
shall, at cost, provide and maintain one cable
television drop to each private, nonprofit
school site within the authorized franchise
service area.
As used in this section, "private, nonprofit
schools" -means- schools that satisfy the re- .
quirements of Section 12154 of the Education
Code of the state of California and which are
exempt from taxation under Section 214 of the
Revenue and Taxation Code of the state of
California. (Prior code § 6704)- - -
shall likewise be furnished simultaneously to
the grantor.
C. Reports.
1. Annual Report. No later than April 15th
of each year, the grantee shall present a writ-
ten report to the grantor which shall include:
a. - A- fully-audited and certified financial
report for the previous calendar year, including
gross subscriber revenues from each category
of service, net income and end-of-year balance
sheet;
b. A summary of the previous year's activ-
ities, including, but not limited to, subscriber
5.28.060 Operation and maintenance.
totals and new services;
A. Open Books and Records. The grantee
c. A summary of complaints received and
---shall maintain-an -office'within tfie franchise
handled;--
territory and manage alt of its operations in
d. Projected plans for the future.
accordance with a policy of totally open books
2. Monitoring and Compliance Reports.
and records. The grantor shall have the right
No later than April 15th of each year, the
insp^ct at any_-tirne.duting notmal.business-
grantee sfiall provide a written report-of the
hours, all books, records, maps, plans, income
FCC performance tests for the Home Subscrib-
- - er Network required in Part 76; Section 76.601
: tax retpms; fmanctal-statements, service com-=.___-__- _eq__
plaint logs,-performance.testresulis and-other__
_ of FCC Rules and Regulations. In addition, the
_like materials ofthe- grantee=which relate to
grantee shall provide in- accordance- with.,_-_ -
- -
;the operation of the franchise. Access to -the
-
- -
Section 5, fe
_ Ports of thetest and
- compliance
-
aforementioned rec°or -dsshall not be _dby
- denie
~Procedures established by a
tha franchise agree-
_
the gran
- -"tor=ori`the basis"tti`rtfie`-recoilson-
a
=ment=' no°l ate ra an?th i -
- Try:(3 0)'days aft` -
eithe -
` - - - -
rain proprietary information.'
completion of each series of tests. _
-----B-Eommunications with-Revelatory Apen=-
- t-=Additional--Reports =The a-rantee=shall- - -
cies. Copies of all petitions, applications, _
prepare and furnish to the grantor, at the times _
' `
communicati ons and reports submitted by the
and in the form prescribed,-s- such additional
P
grantee to the Federal Communications Com-
reports with respect to its operation, affairs,
mission, Securities and Exchange Commission,
transactions or property, as may be reasonably
or any other federal or state regulatory com-
necessary and appropriate to the performance
mission or agency having jurisdiction in re-
of anv of the rights, functions or duties of the
spect to any mat ters affecting cable communi-
grantor in connection with this franchise.
cations operations authorized pursuant to this
D. Maintenance and Complaints.
franchise, shall also be submitted simulta-
1: The jiantee shall maintain an office in
neously to the grantor. Copies of responses
the franchise territory which shall be open
from the regulatory agencies to the grantee
during all usual business hours, have a public-
ly listed toll-free telephone, and be so operated
- 100
5.28.060
to receive subscriber complaints and requests
for repairs or adjustments on a twenty-four
(24) hour basis. A written log shall be main-
tained listing all complaints and their disposi-
tion.
they will not interfere with any installations of
the grantor or any public entity.
3. All lines, equipment and connections in,
over, under and upon the streets and public
ways and private property in the city, wherev-
2. The grantee shall render efficient ser-
er situated or located, shall at all times be kept
vice, make repairs promptly, and interrupt
and maintained in a safe and suitable condi-' '
service only for good cause and for the short-
tion, and in good order and repair. (Prior code
est time possible. Such interruptions, insofar
§ 6705)
as possible, shall be preceded by notice and
shall occur during period of minimum use of
- 5.28.070 Regulation of franchise and
the system. A written log shall be maintained
rates.
for all service interruptions.
A. Charges Permitted and Regulated. The
3. The grantee shall maintain a repair
grantee may make such charges for services
force of technicians capable of responding to
provided to subscribers as are permitted by the
subscriber complaints or requests for service,
franchise agreement or by subsequent approval
within twenty-four (24) hours after receipt of
of the grantor. The grantee shall receive no
_ the complaint or request. No -charge-shall be
remuneration whatsoever for its subscribers for
made to the subscriber for this service.
_or in.connection with any service_provided-to-
4.: The-grantor-shall ensure that altsub-
su~___
bscribers -without -approval of-the grantor V
scribers, programmers, and me-mbers of_the
_ _ -
-
New-se rvices are encouraged-and reasonable
general-public have recourse to a satisfactory
charges for-such =new.:_services shall-not be -
haaring-of'a`ny complaints, where there is_-
unreasonably limited or denied.
evidence that the grantee has not settled the - B.- Schedule of Rates Th.-e-initial•sche
dule
.
comp]amt=-to .the_sausfaction of-the p° son
- r
-
_
.
- -
of rates to be utilized by the !
tee shall be
_ initiating-
the °comp]aint. -The' grantor shall
_
those in the grantees franchise aPPllcadon,._
=
estabhsh-procedures for handlingand=settlmo--- - =
'
- a - - - and shall be film` for a period: of at least two_
- - - -complaints. - - -
years after commencement of service. within_
E. -Safe
-
- -
- - - - =
the=city:=The scFiedule oof rates-shall include
1. The grantee shall, at all times, employ
installation and monthly charges for-providing-
the- standard" of-care=attendant -to=the risks=_- - -
- basic service, closed-circuit service, rates for
- --involved and shall install and maintain in use
additional services, any special rates for large
commonly accepted methods and devices for
institutions, motels, multiple-family dwelling
preventing failures and accidents which are
units, or any other type of special subscriber.
likely to cause damage, injury or nuisance to
No additional charge shall be made for the -
the public or to employees of the grantee.
provision of any converter without prior ap-
t. The grantee shall install and maintain
proval of the grantor. All rates.shall be pub-
its wires, cables, fixtures and other equipment
lished and nondiscriminatory, and be uniform
in accordance with requirements of the Nation-
to all persons and organizations of like classes,
al Electrical Code, and in such manner that
under similar circumstances and conditions.
10
1
5.28.070
Nothing in this provision shall be construed to
grantee's requests for rate increases during the
prohibit the reduction or waiving of charges in
term of this franchise:
conjunction with promotional campaigns for
1. Grantee's substantial fulfillment of all
the purpose of attracting subscribers, nor the
material requirements of the franchise;
granting of reduced rates to nonprofit institu-
2. Quality of service, as indicated by the
tions, nor shall this provision be interpreted to
number and type of service complaints,
- - prohibit the establishment of a graduated' scale
grantee's response to complaints, and the
of charges and rate schedules which vary with
results of periodic system performance tests;
volume of usage, to which any subscriber or
3. Prevailing rates for comparable services
programmer included within a particular clas-
in other cable systems of similar size
and _
sification shall be entitled.
.
complexity;
C. Change in Rates.-Increases in rates for
4. Rate of return on grantee's financial
basic service shall be requested no more often
investment and equity, as compared to busi-
than annually by grantee. Upon receipt of a
nesses of equivalent cumulative basis for all
rate increase request, grantor shall schedule a
system revenues and costs, including services
-public hearing prior to arriving at a-decision.
'such as pay-television services that may be
Upon request from grantor,- grantee shall pro-
exempt from local rate regulation. Upon re-
vide and grantor shall consider relevant fman-
quest from grantor, grantee shall provide all
cial and other information necessary to deter-
information as shall be reasonably- necess
n ~ _mmethe,justification,for.the_requested-in-:--
-to determine system revenues andcosts;
- -crease. Failure to provide such requested infor
= 5- Performance of grantee in introducing
- mation shall be grounds for denial-of the` rate
new services and expanding the cable system's - - - -
- „increase. Within-ninety_(90) days after_receipt-•-
capability,-as compared-to: other systems `of`
of the rate increase request grantor expressed _similaz. size and; compleztty=
-
J - by city'council'resolunon,"shall
approve the
. E. Remedies for Franchise Violations.
: _ request in. full; approve the request id part, or y
' - 1. In addition to the penalties for delays in
_ disapprove-the request.-In any=event; gr ioi~- -construction as---- -_ctfied= inJSecuon_
` - shall provide "findin s as to the basis for its
5.28.040 grantor reserves the-right to.im-_-
- -..decision If_no=grantor:-action=has-occurred-
-pose=tfie-following- penalties in the event
within ninety (90) days after receipt of the rate
grantee. violates any other material=provision--.-----~-
- increase request, unless grantor and grantee
_ of the franchise, provided that grantee has-not - - -
- agree in writing to an extension of time, the .
commenced corrective action within thirty (30)
request shall be deemed to have been ap-
days of service of written notice by certified
proved.
mail to, or personal service on, the general
D. Rate Regulation Criteria. Grantor shall
manager of grantee:
- take into consideration for rate regulation
a. Impose-a financial penalty, not to ex-
purposes all costs associated with the construe-
teed one thousand dollars ($1,000.00) per day - _ . _ _.....m- _ .
- tion and-operation -of the-cable communica-
or per incident, for grantee's individual willful
tions system. Grantor may also consider any
and repeated violation of the franchise or
or all of the following factors in determining
failure to take corrective action with respect to
whether to approve, modify or disapprove
a violation of any proy,ision of the franchise;
102
b. Require grantee to make rate rebates or .
payments to the customers or classes of cus-
tomers in such amount and on such basis as
grantor may deem reasonable, provided, how-
ever, that payment or rebates to customers
shall be made only in the event of.
- i. Billing error on an individual or class
basis. The refund shall be equal to the actual
amount of the error,
ii. An unexcused interruption or abandon-
ment of service in excess of forty-eight (48)
hours. The rebate shall equal a pro rata portion
of the subscriber monthly fee or be determined
upon some other reasonable basis;
c. Require grantee to correct or otherwise
- - remedy the violation prior fo any rate increase
becoming effective.
2. In the event the stated violation is not
reasonably curable within thirty (30) days the
5.28.070
5. The determination of the City Manager
or other person designated by the City Council
shall be subject to appeal to the City Council
within fifteen (15) days of service of notice in
writing of said determination to grantee. A
notice of appeal shall be delivered to the City
Clerk within this time period and shall specify
the grounds for the appeal. Grantor and grant-
ee may agree to waive the conduct of a hear-
ing provided for in subsection (E)(4) of this
section and proceed directly to a final determi-
nation by the City Council as provided for in
this subdivision.
6. The City Council, in the case of an ap-
peal or direct jurisdiction, shall hold a hearing
affording grantee full due process of law. The
hearing shall be set within thirty (30) days of
the receipt of the request therefor. _
- franchise will not be terminated or revoked or--`penalty, shall- make written findings -of fact-
:-.a-Penalty -imposed if the ag-rantee-provides, which address the considerations referenced in
:".withirfthe thirty-(30)-days; aplan, satisfactory subsection (E)(3) of this-section.
_ to_the_grantor,=.to_remedy the violation and= °8. Nothing'hereinshall prevent either the
- -
continues to demonstrate good-faith in.seekino orantoc_or the
a_ o grantee- from obtaining- ugunc- _
to correct the violation. . - _ uve relief to enforce the provisions -of the.--
-franchise.-
grantor ing which remedy or reme- shall take into consideration the nature-- from conducting _hearings and
for - . -
the impact of the violation, the nature-of the- :-served by-the same cable system
_ remedy required in order to further prevent F. Advance Charges, Deposits and Late such violations, and such other matters as the Payment Charges. Grantee may require pay-
grantor may deem appropriate. ment of charges and deposits as follows:
4. Within ten days after receipt of a writ- 1. The grantee may require subscribers to
ten notice of a violation from grantor, grantee pay for service in advance of the beginning of-
may request a hearing before the City Manama each month.
er or other person designated by the City 2.- Nothing in this provision- shall be con- _
Council. Such a proceeding shall afford full stmed to prohibit charges for initial installation
due process of law and shall be held within and reconnection or to prohibit grantee from
thirty (30) days of the receipt of the request requiring reasonable deposits for equipment.
therefor.
_ ----103--
5.28.070
3. Grantee may require subscribers to pay
5.28.080 Regulation of franchise.
a late payment charge on any bill not paid by
The grantor shall have responsibility for
its due date. Such late payment charge shall
regulation in the following areas:
not exceed one and one-half percent of the
A. Administering and enforcing the provi-
overdue amount or fifty cents ($0.50), which-
sions of the cable communications system
ever is greater.
franchise(s);
- Installation and Reconnection: Except
.
B. Coordination of the operation of gov-
as otherwise provided in the franchise agree-
ernment and educational channels;
ment, the grantee may make a charge to sub-
C. Providing technical, programming and
scribers for the installation of service outlets
operational support to public agency users,
and for the reconnection of service outlets.
such as city departments, schools and health
The rates for such connection or reconnection
care institutions;
shall be authorized by the grantor as provided
D. Establishing procedures and standards
in subsection B of this section. The grantee
for institutional operations and services, use of
may waive all , or a portion of such charges for.
- - -
= dedicated-channels,_and_sharing_ -of -public
connection or reconnection, as provided in
facilities;-
subsection B of this section. -
E._ Planning expansion and growth of cable
- H. Discdnnection: There sfiall tie no charge
.
for disconnection of any installation or-outlet
'
services; -
F Analyzing_the_possibility-gintegrating'
:,zz
,
If any_suti
scnber fails to pay-a prop rly-due ----c- - - - - - -
cable communications with other city, state or
- . = month]y fee or charge the grant e may dis
regional telecommunications- networks;
_
_
connectthe subscriber s s m cc
as_follows
- - -
.
H
G ` Forroulauna and recomineiiding lono - -
-1.- No-service shall-be-
• - ' - - h
range telecomm unications pohcy for the city y
=th(L deLnquent fee..isaixty (60)_4ays overdue H. _,COllecaiig the d sYgnated franchise fe - _
-
~
or unul ten days
af er written notice-to-the:
(Prior code §_6707)-
-
-subscriber of intent to disconnect for failure to
"
Tpay whichever is later _
_ - 518.090--- Community Access- R(
" 2. In the case of pay-cable services only,
_
- -
Cor
Poration.
-
- - =no=service=shall=b- disconnected until=the
_
hn uent fee is thi
del in rtY (30) days overdue or
At grantors sole option grantor may ensure
_
`
v until ten days.after written notice to the sub-
that the public access and
otfie_ r community -
scriber of intent to disconnect for failure to
channels are governed by an independent
pay, whichever is later.
nonprofit corporation, termed the Community
Upon payment of the delinquent fee or
Access Corporation (CAC), such that these
_ charge and the payment of. a reconnection
channels may be free of censorship, open to
- charge; the grantee shall promptly reinstate the
all residents of the city and available for all
subscriber's cable service. (Prior code § 6706),_
forms of public expression, community
infor-
- -
mation, and debate o_ n public issues. (Prior
code § 6708)
104 - -
5.28.100
5.28.100 General financial and
B. Letter of Credit. Within thirty (30) days
insurance provisions.
of the effective date of the franchise, grantee
A. Payment to the Grantor.
shall deliver to grantor an irrevocable and
1. As compensation for the franchise to be
unconditional letter of credit in form and
granted, and in consideration of permission to
substance acceptable to grantor, from a bank
use the streets and public ways of the city for
approved by grantor in the amount of twenty-
the. construction; operation, maintenance and
five thousand dollars- ($25,000.00). Such- a
reconstruction of a cable communications
letter shall be maintained on deposit through-
system within the city, and to defray the costs
out the term of this franchise. The use of the
of franchise regulation, the grantee shall pay
letter of credit by grantor to satisfy any penal-
to the grantor an an nual amount equal to five
ties shall be in full compliance with the proce-
percent of the grantee's gross annual revenues.
dural provisions of this chapter.
2. Payments due the grantor under this
C. Faithful Performance Bond. Upon the
provision shall be computed quarterly, for the
_ effective date of the franchise, grantee shall
31st, June
recedin carter as of March
- g 4_ "
p
furnish proof of the posting of a faithful per-
-
-
`
-
st
.
30th, September 30th and December 31
_
corporate - -
formance bond 'which-may be a
Each quarterly payment shall be due and pay-
surety bond, running to the grantor, in the
able no later than thirty (30) days after the___
penal sum of three hundred thousand dollars
- dates listed in-the previous _ sentence. Each
($300,000.00)_ The faithful performance bond
brief =shall,be:a.form approved by t}ie C>ty Attorney - y_
payment shall be' accompanied by--a--
-
report.showing the basis for the computation
- - -
Upon demonstration by grantee to the satisfac-
y
and such other relevant facts: as-may- be-re
=con .-of grantor that-all the construction to be = - _
- - --quired`by the grantor:- ' ° -
- undertaken to the city pursuani to the franchise
3 No acceptance of any-payment shall be
agreement has in fact been completed and the -
construed as an accord that the amount paid is
system is fully operational the bond "shall be _
- in fact -the` c6r_ma 'amount,- nor shall such _
-
-`reduced'to'-a-sum`of'sixty-thousand-dollars°.-"
- -
(560;000 00)°'Such =bondfor_a-sum-of=sixty
- =acceptance of payment be construed as'a re -
lease of any claim the grantor may have for---
-
thousand dollars ($60,000.00) shall be main=
--further or-additional sums payable unde-r the
.
rained-b th e_aratitee-throu hout_the=term of_--_
y° ~ g
_
_ provisions. of-this -p rmit. -All=amounts paid
=?hts franchise -
shall be subjectto audit and recomputation by
_ D -Damaoes and Defense° -
the grantor.
1. The grantee shall hold harmless the
4. Following the issuance and acceptance
grantor for all damages and penalties arising
of the franchise, the grantee shall initiate fran- -
directly or indirectly as a result of the exercise
' chise fee payments to the grantor. These pay-
of the franchise. These damages and penalties
ments are to be considered advances of pay-
shall include, but shall not be limited to, dam-
ments due in later.years of the franchise inas--
_ .
ages arising out of copyright infringement,
,
.
much as they exceed the actual franchise pay-
defamation, and all other damages` arising out
ments during any year:
of the construction of the cable communica-
tions system authorized herein, whether or not
105 - -
1
5.28.100
any act or omission complained of is autho-
5.28.110 Rights reserved to the
rized, allowed or prohibited by this franchise.
grantor.
2. The grantee shall pay all expenses in-
A. Right to Purchase the System. Grantor,
curred by the grantor in defending itself with
in compliance with California law governing
regard to all damages and penalties mentioned
eminent domain and upon payment of fair
in subsection (D)(1) of this section. These
market value, may condemn the franchise,
expenses shall include all out-of-pocket ex- -
- - - -
property and plant of grantee.
penses, such as attorney fees, and shall also
B. Grantor shall have the right to purchase
include the reasonable value of any services
those portions of the system within the city
rendered by any employees of the grantor.
only upon revocation or expiration of the
" E. Liability Insurance and Indemnification.
initial terms of the franchise or an v renewal or
upon the effective date of the franchise,
extensions thereof. Purchase price to grantor
grantee shall furnish proof that grantor and
shall not include any sum for the value of the
grantee have been added as named insureds to
franchise and such plant and property shall be
the liability insurance policy. The policy shall
valued according to book value of all capital
" 'remain in°force,' in'the minimum amounts of
- -
""investments attritiuiable thereto, less deprecia-
two million dollars ($2,000,000.00), in the
tion.
areas of general and owner's liability and
C. Right of Inspection of Records. There
property damage. Grantee shall also provide
shall be kept in the grantor's offices aseparate _
worker s=-compensation-coverageyconsistm- -
-
-
iecord for the-franchise,- which reeord shall
_ with California statutory requirements- and
show the thi=s hereafter set forth. The grant- -
motor vehicle insurance coverage of two mil-
ee shall provide such information in such form.
__lion -dollars , (52,000,000 00)., Insurance cover
as-may „be required -by the grantor for said
-age during system-construction, fire coverage
- _
_
`v
-
-
.
_
and exteded coverage shall all provide fo7'
n
- - - - _ -
1. The true and entire cost of construction -
= one unfired (100)-percent-cover-age of the `of equipment, of maintenance and of the ad- -
_ a replacement value of-the'assets=The insurance = rstration and opecatio`n thereof; the-amount
shall provide that itantee shall" receive thirty -
-
of stock issued, _if .any;- -amount-of cash
- -
--------{30) days_wntten:hotice:prior_to-any_alteration_
- _ - ' - - - - - - -
pai d-in-the=nnmber-and-par-value-of-shares;
of amaterial provision of the insurance or any
- - - -
the amount and character. of. indcbtedness,-if
reduction in coverage of the insurance by this -
- - - -
any the rate of taxes, the dividends declared;
section. Such notice shall also be required in
the character and amount of all fixed charges;
the case of cancellation of any coverage re-
the allowance, if any, for interest, for wear - -
quired by this section.
and tear or depreciation' all amounts and
The liability insurance policy shall be main-
sources of income;
tained throughout the duration of this fran-
2. The amount collected annually from the
chise, with a copy filed with grantor. (Prior
city treasury and the character
and extent of
code § 6709)
,
the service rendered therefor to the city;
- - - - - - - 106
5.28.110
3. The amount collected annually from
other users of service and the character and
extent of the service rendered therefor to them.
The books of records kept by the grantor
shall be open to public examination at any
time during the business hours of the grantor's
office.- The information, in addition to any
further data which may be required by the
grantor, shall be furnished by the grantee to
the grantor upon request, and at the grantee's
- - - - own cost and expense. -
The grantor shall have the right to inspect
all books, records, maps, plans, income tax re-
turns, financial statements, and other like
material of the grantee at any time during
- normal business hours_----- -
D._ Right of Inspection of-Construction.
The grantor shall have the right to inspect all -
construction or installation work performed
5.28.120 Rights of individual
protected.
A. Discriminatory Practices Prohibited. The
grantee shall not deny service, deny access, or
otherwise discriminate against subscribers,
programmers or general citizens on the basis,
of race, color, religion, national origin, sex or
age. The grantee shall strictly adhere to the
equal employment opportunity requirements of
the federal and state govemments, as ex-
pressed in Section 76.13(a)(8) and 76.311 of
Chapter 1 of Title 47 of the Code of Federal
Regulations. The grantee shall comply at all
times with all other applicable federal, state
and city laws, and all executive and adminis_-
trative orders relating to nondiscrimination.
B. Cable Tapping Prohibited. Neither the
grantee, nor any other person, agency or entity
- shall tap, or arrange for tapping of anycable,
~sublect to the provisions of the-franchise and
--line, signal input -devrce'or-stibscnber outlet
to make such tests as itshall find necessary to
- - or receiver for any purpose' whatsoever.
ensure compliance with theterms of.this fran - _
C Pik acy and_Other. HumanRights: The - -
chtse and other pertinent provisions of law bgrantee and the grantor shall maintain` constant`
E Right of Intervention Th grantor shall - - -
_vrglance_withregard-to,possible abuses;of the -
-have the`right-of=intervention=m-any suit or - - - -
right of privacy or other human rights of any
--_.proceeding to which-the grantee is party; and - -
subscriber, programmer or general citizen
- -the grantee shall not-oppose.such mtevention - - -
. - resultmg_from any device- or signal associated LL'y
- by the grantor
with the cable communications system. _The- _ .e.
F: Right to Require Removal of.Property -
grantee shall notplace m any private residence
At the expiration of the term for which the
_ any equipm nt capable of two-way communi
'=franchise'isg anted'or-upon-its-revocation-or "
cations without the- written consent of the -
expiration,'as provided for'herein,"the grantor residents, and will not utilize the two-way
shall have the right to require the grantee to communications capability of the system for
remove, at its own expense, all portions of the unauthorized subscriber surveillance of any
cable communications system from all streets kind. -
and public ways within the. city. (Prior code § D. Permission of Property -Owner Re-
6710) - - quired. No cable, line, wire, amplifier, con-
verter or other piece of equipment owned by
the grantee shall be installed by the grantee
without first securing the written permission
5.28.120
of the owner of any property involved. If such such judgment becomes final after all appeals
permission is later revoked, whether by the
are exhausted according to law.
original or a subsequent owner, the grantee
2. If grantee violates any provision con-
shall remove forthwith any of its equipment
twined in subsection A of this section, grantor
which is both visible and movable and
shall give written notice of the default to
promptly restore the property to its original
grantee.
condition. -
3. Grantee shall be given thirty (30) days,
E. Sale of Subscriber Lists Prohibited. The
after such written notice, to correct such de-
grantee shall not sell, or otherwise make avail-
fault, or to commence appropriate corrective
able, lists of the names and addresses of its
action. Such notice and period to cure need
subscribers,-or any list which identifies, by
--not be repeated if the same were previously _
name, subscriber viewing habits," to any per-
provided to grantee as a prerequisite to other
son, agency or entity, for any purpose whauo-
remedies. The franchise shall not be revoked
ever, without the specific authorization of the
pursuant to this section if, within the thirty
grantor, expressed by resolution, after a public
(30) days, grantee provides a plan satisfactory
- -hearing which-shall be announced by written
` to grantor to iemedy the violaticn'and grantee
notice published in a -newspaper of general
continues to demonstrate good faith in seeking
circulation at least ten consecutive days before
to correct the violation.
the date of the hearing. (Prior code § 6711)
4. _If grantee-fails-to correct such -default-..-- - -
default-
--,-or to-commence=appropriate corrective-action - -
f ~r -`5.28.130 Termination and renewal. -
as provided in subsection (A)(3) of this seo-
-'A -.Revocation
-tron grantor may elect to.tmpose a penaltyas
r
- - I. -In addition to any rightsset forth else--
---provided-in -subsection -E of-this- section,- or----°-'-
` antor may elect to terminate this-franchise r - -
. where in this chapter; the grantor reserves gr
_the _ -
~ right to revoke the franchise and all rights and
as follows:
-
privileges pertaining thereto, in the event that
a Crrantor shall hold a i hearin to
pi g
grantee wilful] orn:reatedl "_vio- -
- _Y rene , y_
considei th LLopnon of revocation of the franc
lates any material provision of the franchise;-
chtse _
-
- - =-o
s= - - - - = _
shall=give ~grarrtee at least ten_ - -
= b
Griwt
r
.
b _-The. grantee's construction schedule rs days advance written notice_o_f_such hearing
delayed for over eighteen 18) months, due to
(
c Grahto
r .'stall publish notice of, such:
any cause which is s within the " - grantee's rea-
hearing in a newspaper of general circulation
sonable control; or
in the city at ]east ten days in advance of such
c. The grantee becomes insolvent, is invol-
- hearing
untarily adjudged as bankrupt, or files a volun-
d. Grantee shall be afforded all due pro-
tary petition for relief under the Bankruptcy
cess of law, including the right to appear and
Act; or . _
b hard at the hearing;
d. The grantee is adjudged to have prat-
e If after such hearing grantor determines
tired any fraud or deceit upon the grantor" and
that the franchise should be revoked, grantor
shall advise grantee of its decision in writing.
5.28.130
Grantee shall have a period of thirty (30) days,
receiver or trustee shall have fully complied
beginning the next day following written no-
with all the provisions of the franchise and
tice to grantee of such decision, within which
remedied all defaults thereunder, and
to file any appropriate legal action. During
2. Such receiver or trustee, within. the one
such thirty (30) day period, the franchise shall
hundred twenty (120) days, shall have execut-
remain in full force and effect, unless the term
ed an agreement, duly approved by the court
thereof expires sooner;
having jurisdiction in the premises, whereby
f. Absent a court order to the contrary and
such receiver or trustee assumes and agrees to
upon the, expiration of the thirty (30) day
be bound by each and every provision of the
period set forth in subsection (A)(4)(e) of this
franchise.
- section, the grantor may by ordinance or reso-
C. Expiration. 'Upon expiration of the
lution declare a forfeiture of the franchise,
initial term of the franchise and consistent
whereupon all rights of the holders of the
with subsection D of this section, grantor shall
franchise shall immediately be divested with-
have the right, at its election to:
out a further act upon the part of the grantor,
1. Renew or extend the franchise;
and the grantee shall -upon-demand of'agrantor -
2:- Invite additional franchise applications
forthwith remove its structure or property from
or proposals;
_ the streets to such condition as the grantor
3. Allow the franchise to terminate without
may reasonably require and-upon failure-to do
.further action.
-
so to grantor may perform-the work_and-
-
- The: grantee shall make ira condi-tion'of -
_
collect the costs thereof from the grantee.- The
each contract entered into by itthat the grantor -
costs.thereof shall be -a lien upon =allplant and -shall havethe right to ezercise'these:opnons
- property of the grantee Such -lien _shall_not,
D.--Renewal-or:-Extension-The franchise-___ "
attach to the property. of the grantee located on--
may be_;eiiewed.or.extended by the grantor at - ; = -
%
" the poles or other utilities until removal of
_
any time during the term of the franchise, -
such-property from- the pole=Should grantor ---upon applioattori of the grantee, maccordance -
- d
decide to_take_over-and~opetaw the system -
with the`-then extstino rules-of th FCC; and-Y-
- - grantee-shall be compensated consistent with
applicable law.
the pro j - ris_of_Section 5.28150. - - =
= 1 -Grant a shall sutimifit apphcati
on for
B. Receivership. The grantor shall have the
renewal at ]cast nine. months:prior_to the-date
right-to -revoke the francfiis"e "o"e}iundred-=
of expiration-
twenty(120) days after the appointment of a
2. The grantor shall schedule a hearing on
receiver, or trustee, to take over and conduct
the question of renewal,.with such hearing to
the business of the grantee, whether in receiv-
take place at least six months before expiration
ership, reorganization, bankruptcy or other
of the franchise. At least ten days advance
action or proceeding, unless such receivership
written notice of such hearing shall be given
or trusteeship shall have been vacated prior to
to grantee and shall be published in a newspa-_
- - the expiration of the_one liadred twenty (1) 0)
per with local circulation. At such hearing, the
days, or unless:
grantee shall have full due process of law
1. Within one hundred twenty (120) days
including the opportunity to appear and be -
after his or her election or appointment, such
heard.
- 109- - - - - -
5.28.136
3. Based upon information introduced at
ing provisions of the franchise except as pro-
the hearing, and any other relevant information
vided in subsection F of this section.
that it may obtain from the grantee, the city
C. Captions. The captions to sections
shall make a determination as to whether the ,
throughout this chapter are intended solely to
grantee has substantially complied with mate-
facilitate reading and reference to the sections
rial requirements of the franchise. Such deter-
and provisions of this chapter. Such captions
_ mination shall be made= no less than two
shall-not affect the meaning or interpretation
months before the franchise expires, and a
of this chapter.
copy of the written determination supplied to
D. No Recourse Against the Grantor. The
grantee.
grantee shall have no recourse whatsoever
E. Continuity- of Service Mandatory. It
against the grantor or its officials, boards,
shall be the right of all subscribers to receive
commissions, agents or employees for any -
all available services insofar as their financial
loss, costs, expense or damage arising out of - -
and other obligations to the grantee are hon-
any provision or requirement of the franchise
ored. In the event that the grantee elects to
or because of the enforcement of the franchise.
~._.....-_._---.overbuild; rebuild; modify;"of`sell"the system,"
n..__---__-w.-_._-._.-._------__...._-_.r...._.___
E.'~Nonenforcement by the Grantor. The
or the grantor revokes or fails to renew the
_
grantee shall not be relieved of its obligation
franchise, the grantee shall do everything
to comply with any of the provisions of this
reasonable in its power to insure that all _sub-
permit by reason of -any failure of the grantor-.
_scnbers receive,continuous;, uninterrupted.--- --to•enforce prompt compharice=-- - -
services regardless of the circumstances, dur
F.- Subsequent Action by State or Federal .
-ing the-lifetime of.the franchise: In the-event Agencies; Should the stater of California, the
_ of purchase by the_.grantor,-or..a-change-of--- -
----FCC;-or any other agency of the federal-gov=-- _
-rantee the current gr
- antee -shall cooperate - - - - -
_emm nt_subsequently requiie the-grantee to
t .
-with the grantor to" o rate the system fora
perform or cease to perform any which is
-reasonable`tempor - perto3 ; m maintairiino
inconsistent with" any provisions of the fran- ` -
ig receipt of.such _notification, -the grantor
31MI ucwuiuiic u a uia~ Lia ptuvniUII ui we
528.140. Miscellaneous provisions. _ franchise is affected..Uponsuchvetermination,,; . _ ;
v A -Compliance,. with Laws:. The grantee the grantor shall have the righi to modify, or,... _
shall comply with all federal and state of
California laws, as well as all city ordinances,
resolutions, rules and regulations heretofore or
hereafter_ adopted or established during the
entire term of the franchise.
B. Severa_bilirv, If any sectionof the fran-
chise is held to be invalid or pre-empted by
federal or state regulations or laws, such find-
ing or pre-emption shall not affect the remain-
amend anv of the sections of the franchise to
such reasonable extent as may be necessary to
carry out the full intent and purpose of the
franchise. The grantor may terminate the fran-
chise in the event the grantor determines that
substantial and material-compliance with the
original proposed terms of the franchise has
been frustrated by such state or federal -ov-
emment. (Prior code § 6713)
- - -110
1 '
5.28.150
5.28.150 Franchise applications.
A. Franchise Applications. Applicants for
a franchise shall submit to the grantor, or to
a designated agency, written application utiliz-
ing the standardized format provided by the
grantor, at the time and place designated by
the grantor for-accepting applications, and -
including the designated application fee. Any
applicant which presently has an application
on file with the city may modify that applica-
-Lion to contain the provisions of this chapter.
B. Franchise Processing Fee. The grantee
shall be required to reimburse the grantor for
reasonable costs, including legal and consul-
tant fees, expended in soliciting and evaluating
applications, and processing the franchise
award, to the extent that such costs are not
recovered from application fees. (Prior code § .
(714).
Y - - -
1 -7-
- - - - - - 111 - - - -
5.32.010
Chapter 5.32
to any amusement, show, entertainment, lec-
ture or other enterprise not regularly carried on
CHARITABLE AND RELIGIOUS
for private profit or gain by such person, firm,
SOLICITATIONS
association or corporation at a fixed place of
business in the city, or solicit any contribution
Sections:
or gift in connection with any such amuse-
5.32.010 -
Soliciting-Permit
ment, show, entertainment, lecture or other
required.
enterprise where such sale or solicitation is for
532.020
Selling or soliciting
other than a charitable purpose and is made to
-
tickets-Permit required.
persons other than the bona fide members of
--5.32.030
Permit application.
-the firm, association or corporation, causing
532.040
Investigation.
such solicitation or -sale,- or for or on whose
5.32.050
Permit granting or
behalf such solicitation or-sale is made,. and
denying.
where, in connection with any such amuse-
532.060
Exception.
ment, show, entertainment, lecture or other
-.._-5.32.070 '
--"Revocation of permit.
-enterprise it is-represented;--advertised,'lield `
n.32.0au Sohcitauon by marl. out, implied or made to appear that such sale,
5.32.090. Telephone solicitation. solicitation; contribution or gift or any part of
532.100 - Appeals. _ the proceeds therefrom shall belong to or be
-
_.:devoted-or-used:for:the:benefir,of_any_person,
_-5.32.010- =Soliciting=Permit required -
firm, association or corporation. (Prior code § - - -
= Noperson without firsChaving applied for'--
6
- - -
and receiving apermit from the City'Manager
-
- as provided in -this chapter shall make. any
5 32 030Permit application
appeal to the public fora charityor charitable
Any person desiring to do-any of the acts
--or religious purpose, either-by soliciting or '
-mentioned in Section 5.32.010 or 5.32.020
collectmg-gifts contnbuttons donations or = shall file an application with the Ctry K4nag -
- -
subscriptions, or by_promoting or conducting
en The-application shall set.forth the follow-.
--o - -8ny 581e, ba7= or ezhl5iti on or by 03other
ing informati on: o _ -
means =whatsoever~at= any,- place- or-- to=any .
_
_ -----A:= Name--and- addressof_ the-applicant, w---
person in the city. (Prior..code_§ 6500)
whether-the_ applicant-is. affiliated with. or-
working for any other organization than the
5.32.020 Selling or soliciting
one for which this solicitation is intended;
tickets-Permit required.
B. Location of national, state and local
No person without first having applied for
headquarters, if any;
- and receiving a permit from the City Manager
C. The names and addresses of all persons _
_-_-as-provideddn-this chapter shall-sell or solicit
-directly interested in or-who in.any_ manner
for or on behalf of any person, firm, associa-
tion or corporation, by telephone or otherwise,
D. The main purpose for which the pro-
for the sale of any ticket or right to admission ceeds of the solicitation,-sale, bazaar, exhibi-
i'
DRAFT
AGREEMENT
AN AGREEMENT GRANTING A NON-EXCLUSIVE FRANCHISE
RENEWAL TO CHARTER COMMUNICATIONS ENTERTAINMENT
- LC, TO OPERATE A CABLE TELEVISION SYSTEM IN THE CITY-.
r - - - OF = ROSEMEAD AND SETTING FORTHCONDITIONS
- ACCOMPANYING THE GRANTING-- OF THE- FRANCHISE'
RENEWAL. = ,.F
DRAFT
TABLE
SECTION 1:
GRANT OF FRANCHISE
SECTION 2:
DEFINITIONS
SECTION 3:
GENERAL REQUIREMENTS
SECTION 4:
SERVICE REQUIREMENTS
SECTION 5:
SYSTEM UPGRADE
SECTION 6:
CONSTRUCTION AND TECHNICAL STANDARDS
SECTION 7:
SERVICE AND RATES
SECTION 8:
TRAINING AND HIRING REQUIREMENTS
------SECTION 9:-~-
--REGULATION------
SECTION 10:
SEPARABILITY
- --------SECTION-L-1::~-
--FORCE N1f1JEURE; GRA-NTEE'S-IN?ABILITY TO PERFORM - - - - = - - -
- SECTION 12:-
HOLD HARMLESS---
SECTION 13:_.
ARBITRATION - - -
EXHIBIT A:.
RESERVED FOR COMMERCIAL PLAN
- EXHIBIT B
SYSTEM-UPGRADE CAPABILITIES -
EXHIBIT C:
RESERVED FOR DETAILED UPGRADE PLAN
EXHIBIT D:
GRANTEE COMMITMENT TO EG ACCESS FACILITIES AND
EQUIPMENT
EXHIBIT E:
FREE PUBLIC BUILDING INSTALLATIONS
DRAFT
1 n ~
_ DRAFT -
AGREEMENT
THIS AGREEMENT, made and entered into this _ day of 2000, at
Rosemead, California, by and between the City of Rosemead, a municipal corporation of the State
of California ("City" or "Grantor"), and Charter Communications Entertainment IL LLC, a
Delaware Limited Liability Corporation, ("Charter" or "Grantee").
WITNESSETH
--'_WHEREAS, the City of Rosemead, pursuant to Chapter 5.28 of the Rosemead Municipal
Code (`the Ordinance"), is authorized to grant one or more non-exclusive revocable franchises to
operate; construct; maintain-and reconstruct a cable television system within the-City, and -
WHEREAS, the- City has.negotiated with- Charter_for_renewal of_the,franchise which was
= granted to°Falcon Communications in 1985; and after public hearings, City has determined that it-- - -
is in the best interest of the City and its residents to grant a franchise renewal to Charter. -
NOW. THEREFORE, City hereby grants to Charter a cable television franchise in
accordance with the provisions of the Ordinance and this Agreement.
- L.L*' '
Rosemead/Charter Franchise Agreement June 6, 2000
DRAFT
1. GRANT OF FRANCHISE
1.1 Grant. Charter Communications Entertainment II, LLC, d.b.a. Charter
Communications, is hereby granted for itself, its successors and assigns, subject to the terms
and conditions of this Agreement and the Ordinance, the franchise, authority, right and
privilege, for a ten (10) year period from.and after the effective date hereof, to construct,
operate and maintain a cable television system within the streets and public ways within the
City of Rosemead.
1.2 Riaht of Grantor to Issue Franchise. Grantee acknowledges and accepts the right
of Grantor to issue a non-exclusive franchise as herein provided.
x1.3-Effective Date of Franchise. The effective date of the renewal of this franchisee
shall be the date of execution of this Agreement by Grantor and Grantee.
1.4-Duration: -The-term of the-renewal shall be ten (10) years-from the-effective-date
hereof ea which time-if shall expire and be-of no force aid effect -Renewal 'at-the expiration of. -
said _term. if. any,, shall be in accordance-with the Ordinance,-as-amended; subject to state and
federal law:-_- -
w.T
1.2) Franchise Not Exclusive. This franchise shall not be construed as any limitation -
upon the right of Grantor; through its proper officers, to grant to other persons or
- -corporations rights, privileges and authority similar to or different from the rights, privileges
and authority herein set forth, in the same or other streets and public ways or public places by
franchise, permit or otherwise; provided. however, that such additional grants shall not -
operate to materially modify, iev0e`6-rterminate any rights granted to Grantee herein.-" "
DRAFT
Rosemead/Chaner Franchise Agreement June 6, 2000
DRAFT
1.6 Franchise Acceptance. The Grantee and its parents, subsidiaries and affiliates, by
executing this Agreement, guarantee performance by Grantee of all of Grantee's obligations
hereunder imposed by the Ordinance and this Agreement.
2. DEFINITIONS
For the purpose of this Agreement, the following words, terms, phrases, and their
derivations 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 and not merely directory. The definitions contained"ii the Y
Ordinance are incorporated herein as if fully set forth. In case of conflict, these definitions
-
- 2. LAgreement'° or:`.`Franchise Agreement" or "Franchise Renewal Agreement" means'
this.agreement.and_any amendments or renewals thereof
" - - 2.2 =`Grantee"- or "Charter'-means Charter Communications -Entertainment II, LLC-, or-
any person or entity whom or which succeeds Charter in accordance with the provisions of
this franchise and the Ordinance.
23 "Grantor" or "City" means the City of Rosemead or its delegate acting within the
scope of its jurisdiction.
2.4 "Initial Service Area" means all residential housing units in the City of Rosemead
--which are within 200 feet-of an existing portion of the Cable System: - - -
2.5 "Section" means any section, subsection or provision of this franchise agreement.
DRAFT
Rosemead/Charter Franchise Agreement June 6, 2000
DRAFT
3. GENERAL REQUIREMENTS
3.1 Governing Requirements. Grantee shall comply with the requirements of this
-i - -
Agreement and the Ordinance and all provisions of state and federal law. In the event of an),
conflict between this Agreement and the Ordinance, any mandatory provisions of the
Ordinance in effect at the time. of the adoption of a franchise agreement shall control;
however, the franchise agreement shall control as to any definitions and as to any optional
provisions. (Optional provisions include provisions which state "to the extent or if provided
for in the franchise agreement.") If the Ordinance provides for an optional provision but the
franchise agreement is silent as to that provision, then the provision shall be deemed not
applicable to the franchise agreement. Amendments to the Ordinance shall riot affect amp----
franchise agreement entered into prior to the effective date of the amendment, unless required
--or per-m- itted to-be effective` earlier pursuant-to applicable-state or federal-.law,- or both.parties
to the franchise agreement also.amend the agreement to incoiporate the- prop isions of the
-
amended ordinance.
.3.2 Franchte Fee. "The Grantee'shall paytb-the Grantoran atuiual°franchise fee'of - -
-
five percent (5%) of Gross Revenue as defined in the Ordinance. -
3.3 Pavment of Franchise Fees. Franchise fees shall be payable quarterly, within thirty
(30) days following the quarter for which payment is due.
3.4 Recovery of Processing Costs. Within sixty (60) days after receipt from Grantor
of a written itemization. Grantee shall reimburse Grantor for its reasonable costs incurred
during the franchise renewal/franchise transfer process not to exceed the sum of Ten
Thousand Dollars ($10,000). Such reimbursement will not be passed through to subscribers.
Rosemead/Charter Franchise Agreement
DRAFT
.-4- June 6, 2000
DRAFT
3.5 Pavment 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 construed as a release of any claim the Grantor may have for further or additional
sums payable under the provisions of this Agreement. All amounts paid shall be subject to
audit and recomputation by the Grantor.
3.6 Insurance
(a) Grantee shall procure and maintain for the duration of the Franchise,
insurance against claims for injuries to persons or damages to property which may arise from
or in connection with the operation of the Franchise by the Grantee; its agents,
'--representatives,-emploveesorsubcontractors-
- (b) Grantee shall maintain limits no less than:
- T - -
T-
1)a_: Genera]:Liability"Two Milli on Dollars (2_;000000),per_occurrence for_
bodily personal injury and_property damage.- If Commercial General Liability Insurance or
other form with a general aggregate limit is used,either the general aggregate limit-shall apply
L-' `separately to this Franchise or_the.general aggregate-limit shall-be-twice the required: - _
- occurrence'limn. ~
(2) Automobile Liability: One Million Dollars ($1,000,000) per person, two
Million Dollars ($2,000,000) per accident for bodily injury and property damage.
(3) Workers' Compensation insurance as required by the State of California
and Employer's Liability Insurance. -
- (c) Any deductibles or self-insured retentions must be declared to and~ - - - "
approved by Grantor. At the option of the Grantor, the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects Grantor, its officers, officials, employees and
Rosemead/Charter Franchise Agreement -5-
T -
June 6, 2000
AFT
volunteers or the Grantee shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
(d) The general liability and automobile liability policies are to contain all the
following provisions:
(1) Grantor, its officers, officials, employees, agents and volunteers
are to be covered as insureds as respects to any liability arising out of activities performed by
or on behalf of Grantee; products and completed operations of Grantee; premises owned,
occupied or used by Grantee; or automobiles owned, leased, hired or borrowed by Grantee.
The coverage shall contain no special limitations on the scope of protection afforded to
_-Grantoi, its officers;'officials.-employees.-agents-or volunteers; "and-shall-name Grantoi as
additionally insured.
2) For any claim related to this.Agreement;:Grantee's tnsurance:,.__ -
cOV&aae shall be primary insurance as respects Grantor, its officers;-officials;: employees;
- =-agents and volunteers.-Any insurance or,self-insurance maintained.by Grantor:-its officers =
- _ = ==officials: employees; agents-or--,,,olunfeers shall be excess of-Grantee's insurance and shall-nor--. contribute with rt.
(3) Any failure to comply with reporting or other provisions of the
policies including breaches of warranties-shall-not affect coverage provided to Grantor, its
officers, officials, employees. agents or volunteers.
Grantee's insurance shall appl}_separately _ to each insured against
- -_._-whom claim is made or suit is brought, except with respect to the limits of the insurer's -
liability.
DRAFT
Rosemead/Charter Franchise Agreement
June 6, 2000
DRAFT
(5) Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended, voided, canceled by either parry, reduced in
coverage or in limits except after thirty (30) days prior written notice by certified mail, return
receipt requested, has been given to Grantor.
(6) Insurance shall be placed with insurers which are "admitted" in the
State of California and have a current A.M. Best's rating of no less than ANII, unless
otherwise acceptable to the Grantor. -
- (7) Grantee shall furnish the Grantor with original endorsements
effecting coverage required by this section. The endorsements are to be signed by a person
- authorized-by that insurer to bind-coverageon its behalf-The endorsements are tube on- T~-
_ forms provided by Grantor. All endorsements are to be received and approved by Grantor
° - - before-activitycommences -
(e)_ Grantor reserves the ri,ht to-adjust 'the-limn coverage requiremenfs no
more often-than _every three-(3)years.-Any-such adjustment by the_Grartor will be no greater
than the increase in tlie Los Angeles Metropolitan Area Consumer Price Index (all consum(Frs)
for such three (3) yearperiod.
(f) Grantee shall submit to Grantor documentation of the required insurance
including a certificate of insurance signed by the insurance agent and companies named, as
well as all properly executed endorsements.
(g) Grantee hereby indemnifies Grantor for any dainaee resulting to-it from--
failure of either Grantee or any subcontractor to take out and maintain-such insurance.-
.).7 Indemnification - - -
DET
Rosemead/Charter Franchise Agreement -7- June 6. 2000
DRAFT
(a) Grantee shall indemnify, hold harmless, release and defend Grantor. its
officers, employees and agents from and against any and all actions, claims, demands,
damages, disability, losses, expenses including attorney's fees and other defense costs or
liabilities of any nature that may be asserted by any person or entity including Grantee from
any cause whatsoever arising from the activities of Grantee, its subcontractors, employees and
agents hereunder. Grantee shall be solely responsible and save Grantor harmless from all
matters relative to payment of Grantee's employees including compliance with Social Security,
viithholding, etc.
(b) This indemnification obligation is not limited in any way by a limitation on
-the amount-of type-of dama-Les of compensation payable by or for Grantee-under Workers'
- Compensation; disability or other employee benefit acts, acceptance of insurance certificates
regutred under, tfiis: Agreement, or. the-terms;-applicability or limitations of any insurance held
- -
by-Grantee- - _ _ _ - - - - , - -
c Grantor does not and shall notzwatve any rights=agatnsi Grantee which it
_ may have-by reason ofthis- indemnification,-because of the acceptancebyGrantor or th,e
deposit with Grantor by Grantee, of any of the insurance policies described in this Section.
(d) This indemnification by Grantee shall apply to all damages and claims for
-damages-of any kind suffered by feason_of any of the aforesaid operations referred to in this
Section, regardless of whether or not such insurance policies shall have been determined to be
applicable to any of such damages or claims for'damages.
V- - - - - ---(e) Grantee shall not be-required-to iridemnify Grantor for negligece or
misconduct on the part of Grantor or its officials, boards, commissions, agents, or employees
(hereinafter "such acts"). Grantor shall hold Grantee harmless from any damage resulting
- Rosemead/Charter Franchise Agreement -g- June 6, 2000
DRAFT
from any such acts of the Grantor or its officials, boards, commissions, agents or employees in
utilizing any government or educational access channels, equipment, or facilities and for any
such acts committed by Grantor in connection with work performed by Grantor and permitted
by this Agreement, on or adjacent to the Cable System.
• 3.8 Securi . Grantee shall maintain with Grantor a letter of credit and a faithful
performance bond in accordance with the Ordinance.
4. SERVICE REQUIREMENTS
4.1 General. The Grantee shall meet or exceed all the material construction and
service requirements set out in this franchise agreement. It is the Grantor's intent that
°Grantee shall not be penalized for minor breaches of the terms hereof so lone as its best
efforts are maintained.
Y - - _ _o..v
_
_resi_dence._==:-
Service:=Gra- -riteeslialhoffer.all-ofits=Cable_Service-to:every _
-_in_the Initial'ServiceA rea tn_accordance;wifli the termsof_thts Agreement arid'the Cable
Ordinance
- _ -_r-- 43°Residential Service=Extension: - Grantee shall-extend4he Cable-System-avits sole
-cost and expense in accordance with this Agreement and the Cable Ordinance: If during the - -
term of this Agreement, new residences are constructed in an area of the City adjacent to, but
- outside of. Grantee's Initial Service Area, Grantee shall extend its plant to provide service to
those residences to the extent required by the Cable Ordinance and this Agreement. Grantee
shall in all cases provide a service drop of 200 feet-or less to residential Subscribers at no
_ _ -more than-Grantee's:staridard"installation'price:"Service'drops"of more than-200 feet shall be
_ providedat a cost equal to Grantee's standard installation price plus Grantee's actual cost
DRAFT - -
Rosemead/Charter Franchise Agreement -9- `June 6, 2000
RAFT
(limited to time and materials expended) for the portion of the drop extending beyond 200
feet.
4.4 Multiple Dwelling Units. Grantee agrees that it shall offer Cable Service to all
multiple dwelling units located within the City, including without limitation all apartments,
convalescent hospitals, retirement homes and similar housing structures or institutions.
Subject to the conditions stated in this Agreement and the Cable Ordinance, and other
requirements mandated by law, if any, Grantee shall offer all such Subscribers Cable Services
on the same terms and conditions that such services are offered to single family residences,
and shall provide service extension to the structure (but not to individual units) on the same
terms and conditions defined in paragraph 4.3 immediately above.
4.5 Specified Service Extension. Grantee shall, at its sole cost and expense, extend
- he Cable System and provide one service drop (regardless of length) to the structure (but not
- to individual units) of each and even, Multiple dwelling unit in the City, provided that the
owner of the structure provides service consentsas reasonably required by Grantee.
- -4.6 Commercial.-Industrial and Non-Residential Service. Grantee shall offer Cable -
j Service to all commercial,- industrial, and non-residential customers on the following terms:
Within ninety (90) days following a request for service from any potential commercial,
industrial or non-residential customer (or group of customers), Grantee shall (i) provide the
potential customer(s) requesting service with a written estimate of the costs of providing such
customer(s) with service, and (ii) offer to provide such customer(s) ,vith service, provided,
however, that the customer(s) shall elect to either: (a) agree to pay Grantee`s actual costs
(limited to time and materials expended) of extending the Cable System to such customer, or
,(b) enter into a contract which will reasonably assure adequate revenues to provide Grantee
DRAFT
Rosemead/Charter Franchise Agreement _10- June 6, 2000
DRAFT
with recovery of the full costs and expenses of constructing and operating any required line
extension. Grantee shall provide the City with one (1) copy of the written cost estimates and
any terms of agreement proposed with each such potential customer.
4.7 Commercial/Industrial Service Extension. Within one (1) year of the Effective
Date, Grantee shall prepare and submit for approval by the City a plan for extending the Cable
System at Grantee's sole costs and expense to provide Cable Service to all commercial and
industrial areas of the City. ("Commercial Plan" The Commercial Plan shall provide a
schedule of appropriate milestones for extending the Initial Service Area with the goal of
providing Cable Service to all non-residential areas within five (5) years of the Effective Date.
In developing such a plan, Grantee shall-take into account the City's existing "and anticipated -
non-residential needs for Cable Services (and related communications services), any plans that
- - the City discloses respecting planned development of it-residential areas, and-the cost- -
and efficiencies of extending the Cable System to such areas: The plan shall also identify any -
proposed terms. and conditions-to be imposed upon non-residential subscribers that are
additional to or different from those that pertain to other subscribers in the City; if any,-which - -
terms and conditions shall be reasonable. To the extent that Grantee demonstrates in such
plan that it is not technically or economically feasible to provide Cable Service to any
particular area, then Grantee-may propose in its plan that such service not be provided to such
area. Grantee shall submit the Commercial Plan for approval by the City, which approval shall
not be unreasonably denied. Upon approval, the plan shall be filed as Exhibit "A" to this-
- -Aereement and become apart hereof.
4.8 Under!zroundine of Cable. Grantee shall install its cables underground where all
other utilities are underground, and shall convert its aerial plant to underground in concert
CRAFT
Rosemead/Charter Franchise Agreement -1 1- June 6, 2000
` DRAFT
with other utilities, at its cost except when a utility conversion assessment district is formed, in
which case. Grantee shall participate only when it receives a pro-rata share of funds from the
district.
5. SYSTEM UPGRADE
5.1 UvLrade of the Cable Svstem. Grantee has recently completed an upgrade of the
existing Cable System ("1998 Upgrade") to provide a system with the capabilities described in
Exhibit "B" attached hereto.
Attached to this Agreement as Exhibit "C" is a detailed plan of the system upgrade.
Said plan includes the following: "(I) equipment specifications and design performance- -
criteria; (2) a system map which delineates any expansions of the prior Service Area and the
reasons for not serving any areas-in the City, and-(3)-a schedule for implementing-the-specific-T-~
new service milestones contemplated by this Agreement:
Grantee's maps (submitted with its upgrade plan), using standard industry
designations, shall at a minimum disclose (i) cable routes; (ii) locations and identifications of
aerial and above and below ground appurtenances (such as risers -vaults, pedestals and power
supplies) and (iii) physical locations and identifications of system components, including but
not limited to, cables and active and passive electronics. Grantee need not disclose the
electrical values of its taps, splitters or directional couplers; however, the City shall have the
right to review such materials at Grantee's office. -
- The City shall have the sole discretion to approve all plans, to assure that they are
consistent with applicable statutes, ordinances, codes, regulations, determinations and rulings,
including without limitation the Rosemead Municipal Code, zoning ordinances and traffic
DRAFT
Rosemead/Charter Franchise Agreement -12- June 6, 2000
DRAFT
safety standards. Where plans and specifications are not in compliance with such statutes,
ordinances, codes, regulations, determinations and rulings, Grantee shall modify or revise such
plans and specifications so as to achieve such compliance. Grantee must comply with the
requirements of applicable State and local statues, ordinances, codes and regulations
governing the location of subsurface installations, including without limitation the provision of
Section 4216 et sea. Of the California Government Code, with respect to notification to or
from a regional notification center (such as Underground Service Alert) concerning proposed
excavation work. If, after construction, the City determines that the planned placement of
specific equipment by Grantee may cause a negative aesthetic impact, then Grantee will make
- ~ reasonable efforts to minimize such animpact within technical design constraints -
Notwithstanding approval of any plans, nothing in this Agreement or in the Cable Ordinance
shall be construed as a license: right of privilege granted by the City Co use any public ri_l t-of- -
-way for any purpose other than the-provision-of cable television services.
52 Program Origination Points. Grantee shall establish upon completion of the 1998__.
Upgrade. an origination point from Rosemead City Hall and from the Emergency Operations
Center, or other mutually-agreeable locations that will permit live character-generated
programming and live and/or pre-recorded video programming to originate at such locations
on access channels controlled and programmed by the City or its designee. Grantee shall
provide, install and maintain at no charge all necessary modulators, demodulators and
associated electronic equipment and all necessary transmission paths (via cable or other
suitable technology) from the said locations to the system headend and downstream on the
basic service access channels. Grantee shall establish at no charge, all necessary equipment
DRAFT
Rosemead/Charter Franchise Agreement -1 June 6, 2000
DAFT
and paths to provide Community College programming to Rosemead subscribers through
Pasadena City College or other agreed programming provider.
53 Emereencv Alert System. Grantee shall provide and maintain throughout the term
of this Agreement the system capability to transmit an emergency alert signal to all
participating subscribers, consistent with Federal Communications Commission requirements
or, if there are no such requirements, in the form of an audio override capability to permit the
City to interrupt and cablecast an audio message on all channels simultaneously in the event of
disaster or public emergency declared under federal or state law or under the City's Municipal
Code. This system shall be activated via a telephone call to Grantee's unlisted telephone
- - number or-by-other suitable means-and shall be designed to permit the introduction of an
emergency video crawl on all channels. Grantee shall provide a written protocol for using -
- - such s}Fstem within=sixt),-(60)-days-ofthe Effective-Date---_
5.4• Emergency Power and Standbv Power.. Grantee shall provide and maintain -
throughout the term of this Agreement a generator and an automatic transfer-switch at its _
-headquarters to allow-for-emergency powering of-the headend electronics in event of local
power outage. Standby power supplies shall also be installed on all major trunk and-subtrunks
to provide emergency power within the standard limits of commercially available power
- supply units. The emergency and standby power supplies shall be maintained and routinely
tested by Grantee as appropriate.
5.5 Addressable Technoloav. Grantee shall. in its development of an upgrade plan,
provide for the use of addressable technology in the delivery of its programming sen ices.
Grantee shall make good faith efforts to provide equipment when available which allows for
the use of the special features of consumer electronics equipm
am TRU AI
hcre-in-picture" Ii. Rosemead/Charter Franchise Agreement -14- June 6. 2000
DRAFT
and "watch-an d-record" and other common VCR and TV functions in a "user-friendly"
manner.
5.6 Digital Technologv. Grantee shall establish and maintain the capability
throughout the entire Cable System to transmit information digitally. Grantee shall
nonetheless continue to transmit current channels and services in analog form unless otherwise
agreed between the City and Grantee in accordance with practices in neighboring cable
systems. It is anticipated that, upon completion of the upgrade, Grantee will transmit some
channels and services in a digital format. Grantee shall provide the necessary equipment to
decode all such digital signals transmitted on the Cable System.
- - - 5.7 Two-Wav Capability. -The Cable System shall have the capability throughout the
entire system to transmit video, voice and/or data services in two directions simultaneously
-\vitifthe additions of return modules. Two-way services shall be instituted when (i) it is
consistent-with federal and state-laws,,-and (ii) it is economically and.fechnically feasible,-
- - however, that however, that it shall be Grantees burden to demonstrate to the Citys satisfaction -
= . _ - - _that-it is not economically or technically feasible to institute such service. - - -
5.8 Cable Modems. Grantee shall establish the capability throughout the entire
Cable System for subscribers to utilize cable modems to attain connections to the Internet for
an additional fee. Grantee may supply cable modems to subscribers for a monthly rental fee or
shall permit subscribers to utilize their own cable modems if permitted by federal law. If
franchising authorities are permitted torequire that cable television franchisees provide open
access by Internet Service Providers to provide internet service utilizing the franchisee's cable
system, Grantee shall permit open access to the fullest extent permitted by law.
DRAFT
Rosemead[Charter Franchise Agreement -15- June 6. 2000
Mft~
RAFT
5.9 Interconnection. Upon Grantor request, Grantee shall negotiate in good faith
to interconnect the cable television system with neighboring cable systems in the future, with
consideration for technical and economic concerns. Grantee shall keep Grantor advised of
negotiations. Notwithstanding the above. Grantee is committed to, and shall, interconnect the
cable system with all cable systems operated by Grantee or its affiliates in the San Gabriel
Valley area. Grantee shall provide a fiber optic interconnection of the Rosemead hub and the
Grantee's studio facility in the City of Alhambra.
5.10 Status Monitoring. Grantee shall provide an automatic status monitoring system
or functional equivalent when the Cable System has been activated for interactive service.
provided that such"status monitoFiine iss iec6nically and economically feasible.l
5.11 Parental Control Lock. Grantee shall provide subscribers, upon request, with a
pareal control locking device or digital code that permits inhibiting the viewing of premium =
channels.
5.12- Right of Inspection The City_shall hav e.the right to_inspect_all-construction.---
- _ = reconstruction or instal lationwork performed subject to-theptovision of the Franchise and
other applicable law.
6. CONSTRUCTION AND TECHNICAL STANDARDS
6.1 Construction Standard
(A) Compliance with Safetv Codes
- - - ,-All construction practices shall be in-accordance with all applicable sections of the
Occupational Safety and Health Act of 1970 and any amendments thereto as well as all state
and local codes where applicable.
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Rosemead/Chatter Franchise Agreement -16- June 6, 2000
- - -
- - DRAFT
(B) Compliance with Electrical Codes
All installation of electronic equipment shall be of a permanent nature, durable and
installed in accordance with the provisions of the National Electric Safety Code as amended.
(C) Antennas and Towers
Antenna supporting structures (towers) shall be designed for the proper loading zone
as specified in R.S.-22A Specifications.
(D) Compliance with Aviation Requirements
Antenna supporting structures (tower) shall be painted, lighted; erected and
maintained in accordance with all applicable rules and regulations of the Federal Aviation
Administraiion and all other applicable state or local codes and regulations. - -
(E) Construction Standards and Requirements
- - All of the Grantee's plant and equipment, including but not limited to the antenna site - -
head=end-and distribution-system; towers,:house connections, structures; poles;=wire.,cable - -
_ coaxial cable, fixtures and_appurtenances-shall =be_ installed,. located,: erected, constructed:.
- - reconstructed; replaced; removed: -repaired;-maintained and-operated' in-accordance with good=---
engineering practices, performed by experienced maintenance and construction personnel so
as not to endanger or interfere with improvements the City may deem proper to make. or to
interfere in any manner with the rights of any property owner, or to unnecessarily hinder or
obstruct pedestrian or vehicular traffic on City properties..
(F) - -Safetv. Nuisance. Requirements--
- The Grantee shall at all-times employ'ordinary care and shall install and maintain in use--
commonly accepted methods and devices preventing failures and accidents which are likely to
cause damage, injury or nuisance to the public. DRAFT
Rosemead/Charter Franchise Agreement -1 7- June 6. 2000
6.2 Network Technical Requirements DRAFT
The Cable System shall be upgraded as needed to meet or exceed the technical
specifications and capabilities of systems operated by the Grantee in neighboring communities
and operated so as to meet the following general objectives:
(1) Capable of continuous twenty-four (24) hour daily operation;
(2) Capable of operating over an outdoor temperature range of -20 degrees F to
+120 degrees F without catastrophic failure or irreversible performance changes over
variation in supply voltages from 105 to 130 volts .AC;
(3) Capable of meeting all specifications as set forth herein over an outdoor
temperature ranee of0 degrees F to +120 degrees F over variations in supply voltages from - - _
105 to 130 volts AC;
(4)_~ Operated insuch a manner as to avoid causing interferencewiih reception of--` - -
-off:the-air si rials;by nori=subscribe's:to the"net-work: "
(d) Designed installed and operated in accordance with FCC rules. and regulations
- = and industry'standards so as to assure the delivery to all subscribers of video and-audio signals
without noticeable degradation directly attributable to the performance of the cable system. T
6.3 Performance Monitoring
Test procedures used in verification of the performance criteria set forth herein, if not
as set forth in paragraph 76.609. Subpart K of the FCC Rules and Regulations. shall be in
accordance with good engineering practice and shall be fullv described in an attachment to the -
annual certificate filed upon request with the City.
To the extent that the report of measurements as required above may be combined
with any reports of measurements required by the FCC or other regulatory agencies. the City
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Rosemead charter Franchise Agreement -1 8- June 6, 2000
DRAFT
shall accept such combined reports, provided that all standards and measurements herein or
hereafter established by the City are satisfied.
At any time after commencement of service to subscribers the City may require
additional tests, full or partial repeat tests, different test procedures, or test involving a
specific subscriber's terminal. Requests for such additional tests will be made on the basis of
complaints received or other good faith evidence indicating an unresolved controversy or
significant non-compliance by the Grantee, and such tests will be limited to the particular
matter in controversy. The City will endeavor to so arrange its requests for such special tests
so as to minimize hardship or inconvenience to Grantee or to the subscriber.
6.4 Favored Nations
In the event Grantee shall enter into any other cable television franchise with other
cities in the San Gabriel Valley.of Los Angeles County providing:for tectuiological---~`
improvements-or upgradeorspecial customer services not currently available or planned to be
available--in the Ci Grantee shall noti the City of same within thirry (39) days of the
- - _----effective date of the other franchise. ° _ - _ _ - _ - _ - -
Following notification. discussion and agreement between Grantor and Grantee about
the desired improvements, Grantee shall submit a schedule for providing these system
enhancements; provided, however, that Grantee is able to recoup its costs in a manner
consistent with the terms agreed upon in the other communities. The City may grant
extensions, where necessary, upon application by,the Grantee, which shall demonstrate cause
for the extension. -
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Rosemead/Charter Franchise Agreement -19- June 6, 2000
6.5 Street Occupancw DRAFT
Grantee shall utilize existing poles, conduits and other facilities whenever possible, and
shall not construct or install any new, different, or additional poles, conduits, or other facilities
whether on public property or on privately-owned property until the written approval of the
City is obtained, which approval shall not be unreasonably withheld. However, no location of
any pole or wire holding structure of the Grantee shall be a vested interest and such poles or
structures shall be removed or modified by the Grantee at its own expense whenever the City
determines that the public convenience would be enhanced thereby.
Grantee shall notify the City at least ten (10) days prior to the intention of the Grantee
to commence am construction in any streets. The City shall cooperate with`the Grantee in-
granting any permits required, providing such grant and subsequent construction by the
= Grantee shall not undulyinterfere Nviih=the use. of such streets and-thafproposed construction - l
_ shall-lxe-done in accordance with the pertinent provisions of the-resolutions -o_f_the City. -
- All transmission lines, equipment and structures shall be so installed and located as to
cause minimum interference 'with the, rights and reasonable convenience of pro-pem owners
and at all times, shall be kept and maintained in a safe, adequate and substantial condition, and
in good order and repair. The Grantee shall. at all times, employ ordinary care and shall install
and maintain hi use commonly accepted methods and devices for preventing failures and---
accidents which are likely to cause damage, injuries, or nuisances to the public. Suitable
barricades. flags, lights, flares or other devices shall be used at such times and places as are
reasonably required for the safety of all members of the public-Any poles or other fixtures- - -
placed in any public way by the Grantee shall be so placed with the approval of the Cin.
Engineer in such a manner as not to interfere with the usual travel on such public way.
11 June 6, 2000
Rosemead/Cnaner Franchise Agreement -20- DR. T
DRAFT
Grantee shall, at its own expense, and in a manner approved by the City, restore to
City standards and specifications any damage or disturbance caused to the public way as a
result of its operations or construction on its behalf.
Whenever, in case of fire or other disaster, it becomes necessary in the judgment of the
Fire Chief.or the Police Chief to remove any of the Grantee's facilities, no charge shall be
made by the Grantee against the City for restoration and repair, unless such actions result
from the negligence, gross negligence or willful disregard by the City.
Grantee or its designee shall have the authority to trim trees on public property at its
own expense as may be necessary to protect its wires and facilities, subject to the supervision
- -and-direction-of the-City.- Trimming of trees on-private-propem shall-require-consent of the
property owner or a court order.
The Grantee at_its-expense shall-protect-support; tempoarilT disconnect, relocate;.or_ -
remov_e any proper t y of Grantee when, in the opinion of the City the same is required by
-
reason of traffic conditions, public safeny, street vacation, freeway or street construction-*.
change or establishment of street grade,-installation of sewers, drains, water pipes, power line, ` - _ - '
signal line, transportation facilities, tracks or anv other types of structure or improvements by
governmental agencies whether acting in a governmental or a proprietary capacity, or any
- - other structure or public improvement,- including but not limited to movement of buildings
urban renewal and redevelopment, and any general program under which the City shall
undertake to cause all such_ properties to be located beneath the surface of the ground. The
Grantee shall in all cases have the privilege,-subject to the corresponding obligations, to -
abandon any property of Grantee in place.
- - - -
Rosemead/Charter Franchise Agreement 1- June 6, 2000
DRAFT
Upon failure of Grantee to commence, pursue or complete any work required by law
or by the provisions of this Resolution to be done in any street, within the time prescribed and
to the satisfaction of the City, the City may, at its option, cause such work to be done and the
Grantee shall pay to the City the cost thereof in the itemized amounts reported by the City to
-Grantee within thirty (30) days after receipt of such itemized report.
7. SERVICE AND RATES
7.1 Programming and Services
Grantee shall provide Grantor with a list of programming and other services offered,
- - which list shall be updated-each time 'a change-is-made.-Grantee shall-notreduce the number
of program services offered or eliminate any service without thirty (30) days prior written
--notice to the"Grantor and'System=subscr=ibePs: - - - - - 7-' ' - - - - -
_ 7.2--- Leased Chanriel-Service
Grantee shall offer commercial ]eased access on reasonable terms and conditions and _
m accordance with applicable law. _ - - -
73 Office-and Phone - _ _
The Grantee shall comply with the Ordinance regarding handling of customer
complaints, repairs, maintenance and service requests.
7.4 Senior Citizen Discount
Lo" income residents whose head of household. is sixty-five years of aae or older shall
be entitled to receive a ten percent (10%) discount on expanded basic cable televisiomservice, -
or for such residents who subscribe to limited basic service only, a twenty-five percent (25%)
discount on their limited basic television service bill. Low income status shall be determined
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Rosemead/Charter Franchise Agreement -22- June 5, 2000
DRAFT
by the City based upon the criteria utilized by the City in determining entitlement to
discounted trash pickup service.
7-5 Notification of Service Procedures
The Grantee shall fumish each subscriber at the time service is installed- written
instructions that clearly set forth procedures and furnish information concerning the
procedures for making inquiries or complaints, including the Grantee's name, address and
local telephone number. Grantee shall give the City thirty (30) days prior notice. of any rate
increases, channel lineup or other substantive service changes.
7.6 Rate Revision
To the extent-thafFEderal or State law or regulation may now, or hereafrer be
amended to, authorize the City to regulate the rates for any particular service tiers, service
= packages; equipment, or. -any- other services provided by Grantee; the City shall-have the right 7_ -
-
- - -to exercise rate regulation to the full-extent authorized.by_-law, or to.refram-from exercising
such regulation for any period of time, gat the sole discretion of the City.,-. If and when
exercising rate regulation,-the City-shall-abide by the terms-and-conditions seffofth by
FCC - -
8. TRAINING AND EMPLOYMENT REQUIREMENTS
_ 8.1 Equal Employment Opportunity. Throughout the term of the franchise. Grantee .
shall conduct its business as an Equal Employment Opportunity Employer. In addition,
throughout the term of the franchise, the Grantee shall maintain-a policy that all employment
decisions, practices and procedures are based on merit and ability without discrimination in
violation of state or federal law on the basis of an individual's race, color, religion, age, sex.
Rosemead/Charter Franchise Agreement
F
June 6. 2000 -
DRAFT
national origins, or physical or mental handicap. The Grantee's policy shall apply to all
employment actions including advertising, recruiting, hiring, promotion, transfer,
remuneration, selection for training, company benefits, disciplinary action, lay-off and
termination. The Grantee shall carry out this policy through continued dedication to a
determined and sustained effort to provide equal employment opportunities to all.
8.2 Transfers and Assienment. The Cable System and the Franchise granted
hereunder shall not be assigned or transferred, either in whole or in part, or leased, or sublet in
any manner, nor shall title thereto, either legal or equitable or any right, interest or property
therein, pass to or vest in any person without the prior written consent of the City. The
-------proposed assignee must show technical ability, financial capability, legal qualifications and
general character qualifications as determined by the City Council and must agree to comply
-----with all provisions of the Franchise except that no City consent shall be required for a transfer
- - - - in trust: mortgage or other hypothecation as a whole or part to-secure an indebtedness of
Grantee nor shall City consent be required for changes in the structure. of the corporations
comprising theJjoint venture or partnership so long as Grantee's-existing principal partners__ -
remain the principal provider of the services hereunder, nor shall City consent be required if
Charter is dissohved or redistributed. The City Council shall be deemed to have consented to
a proposed transfer or assignment in the event its refusal to consent is not communicated in
writing to Grantee within the time provided by federal law, following receipt of written notice
of the proposed transfer or assignment. Such consent shall not unreasonably be withheld.
8.3 Grantee shall promptly notify the City Council of any actual or proposed change
in, or transfer of, or acquisition by any other party of, control of Grantee. The word "control"
as used herein is actual management control in whatever manner exercised. Every change,
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Rosemead/Charter Franchise Agreement -24- June 6, 2000
D F -
transfer, or acquisition of control of Grantee except as herein provided, shall make the
franchise subject to cancellation unless and until the City Council shall have consented thereto,
which consent will not unreasonably be withheld. For the purpose of determining whether it
shall consent to such change, transfer or acquisition of control, the City Council may inquire
into the qualifications of the prospective controlling parry and Grantee shall assist the City
Council in any such inquiry.
8.4 A rebuttable presumption that a transfer of control has occurred shall arise upon
the acquisition or accumulation by any person or group of persons of 10% of the General
Partnership interests of Grantee.
- 8.5 The consent or approval of the City Council to any transfer of the Franchise shall
not constitute a waiver or release of the rights of the.City in and to the streets, and any
- = = -transfer shall by its terms, be expressly subordinate to the terms and-conditions of this- - -
n
- - Franchise Agreement_. - - -
8.6. In no event shall a transfer of ownership or-control be-approved-,without -the
-successor in interest becoming a signafory to this Franchise Agreement.-
- -
8.7 Notwithstanding the foregoing, Grantee may shift ownership for tax purposes
where there is no actual chan,ae in equitable ownership interests upon notice to Grantor not
less than thirty (30) days prior to the change.
9. REGULATION
9.1 Franchise Reeulatiori The franchise granted under this Agreement shall be
subject to regulation by Grantor in accordance with the provisions of the Ordinance as limited
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Rosemead/Charter Franchise Agreement -25- June 6, 2000
s
DRAFT
by state and federal law. Grantor, may, at its sole option, enter into joint regulatory
agreements with other Grantors in adjacent jurisdictions served by the same cable system.
9.2 Remedies for Franchise Violations.
(a) In addition to the remedies for delays in construction as specified in the
Ordinance, Grantor reserves the rieht.to impose the following remedies in the event Grantee
violates any other material provision of the franchise, provided that Grantee has not
commenced corrective action within thirty (.i0) days written notice by certified or registered
mail to the general manager of the Grantee.
(1) Impose liquidated damages, not to exceed One Thousand Dollars ($1,000) per day
per incident, for Grantee's violation of the franchise or failure to take corrective action with
respect to a violation of any provision of the franchise. The parties agree that in the case of a
franchise violation, it would-be impracticable to fix the amount of actual damages and the
amount calculated in accordance kvith this paragraph is presumed to-be-the atnountof damage- - - -
sustained by-the C ity and.its.residents in accordance 3A,ith,Section1671_of the California Civil -
Code: - - - -
(2) Require Grantee to make rate rebates or payments to the customers or classes of
customers in such amount and on such basis as Grantor may deem reasonable.
(3) Require Grantor to correct or otherwise remedy the violation prior to any rate
increase becoming effective.
(b) In the event the stated violation is not reasonably curable within sixty (60) days,
the franchise will_rioi be ienriinated.oi= revoked bra re"tnedy imposed pursuant to the' " - - -
Ordinance if the Grantee provides, within the said sixty (60) days, a plan, satisfactory to the
r
Rosemead/Charter Francnise Agreement -26- June 6, 2000
good faith in seeking to correct
Grantor, to remedy the violation and continues to DRAFT
said violation.
(c) In determining which remedy or remedies for Grantee's violation are appropriate,
Grantor shall take into consideration the nature of the violation, the persons or persons
- bearing the impact of the violation, the nature of the remedy required in order to prevent
further such violations and such other matters as the Grantor may deem appropriate; provided,
however, that adequate remedies must be imposed if service is in any way materially lessened,
or if any material provision of this franchise is not complied with.
(d) Within ten (10) days after receipt of a written notice of a violation from Grantor,
Grantee may request a hearing before a Grantor-de-signated-hearing officer in -a full public--- - - -
proceeding affording due process. Such hearing shall be held within thirty (30) days of the
receipt of the request therefore. If Grantee is found to be culpable,-Grantee may be assessed -
Cit}'s costs reasonably incurred in conducting the hearing- _ - - -
• -
'-=10--SEPARABILITY - -
10.1 If any material section of the Ordinance, and/or this Agreement, as determined -
by the Grantor, are held to be invalid or preempted by federal or state regulations or laws, the
Grantor shall negotiate with Grantee appropriate modifications to this Agreement to provide
reasonable relief from such invalidity or preemption. If the parties are unable to reach
agreement on such modifications; and if in Grantors opinion Grantor may be bound legally
witfi rE-spect-to arbitration of the specific dispute. then-the dispute will be.submitted to an- - - -
arbitrator. in accordance with California law, who will determine what modifications are
appropriate and the arbitrator's decision shall be binding on the parties.
DRAFT
Rosemead/Charter Franchise Agreement -27- June 6, 2000
1
DRAFT
11. FORCE MAJEURE: GRANTEE'S INABILITY TO PERFORM
11.1 In the event Grantee's performance of any of the terms, conditions, obligations
or requirements of this franchise or the Ordinance is prevented or 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 imposed as a result thereof,
provided Grantee has notified Grantor in writing within thirty (30) days of its discovery of the
occurrence of such an event. Such causes beyond Grantee's reasonable control or not
reasonably foreseeable shall include, but shall not be limited to: unusually severe weather, such
as wind, flood, lightning; or natural disasters. such as fire, earthquake or volcanic eruption; or
war, riots, civil disturbances; all strikes of similar work stoppaees failure or the threat of " - -
failure of utility poles. satellites, and similar equipment; restraint by order of a court or other
public authority; or an action or nonaction by or inability to obtain any necessar}r authorization
- - - or approval required-front anygoyernniental agency, authority or public utility, or agent - -
thereof, which by exercise of reasonable due diligence and foresight the party could not= - - -
reasonably` have avoided or`e-Jpected to avoid'and which by exercise-of the-diligence is-unable==== to overcome.
12. HOLD HARMLESS
12.1 The Grantee on behalf of itself. its successors and assigns, shall defend, indemnify
and hold harmless the Grantor, its officers, boards, commissions. agents and employees, and
each of Them, against and-froth any and all claims, demands, actions, suits: liabilities an - - - - - -
judgments of ever; kind and nature and regardless of the merits of the same, arising out of or
related to the exercise or enjoyment of the franchise grantedpursuant t_pt1iis Agreement and
Rosemead/Charter Franchise Agreement -29- June 6, 2000
DRAFT -
the Ordinance, including costs of investigations, attorneys' fees and court costs in the defense
of any actions, to the extent that such claims or demands are alleged to be the result of any
error, omission, intentional act or negligent act of Grantee or any persons employed by
Grantee, even if that Grantee employee is in error or by misinformation alleged to be from a
Grantor employee; however, Grantee shall not be responsible for defending and/or
indemnifying, etc., the Grantor for any actions arising from the Grantors use of the City
channel.
13. ARBITRATION
Grantee and Grantor agree that any disputes arising under this franchise shall be
submitted to arbitration in accordance with the rules of the American -Arbitration Association
=and that judgment upon the at;ard rendered by tthe arbitrator may be entered in any court
-T-{T
--having jurisdiction thereof. The parties-also agree to the-following:;- -
- - a None of the arbitrators appointed shall 77-
-possess an} direct-or indirect-interest- of any..
nature- whatsoever in any of the parties to the arbitration nor shallany of the arbitrators have been employed by any of such parties for a period-of five (5) years preceding the arbitration.
(b) Within ten (10) business days from the receipt of notice given by any party that a
dispute has risen under this franchise.- the parties shall jointly appoint an arbitrator who shall
be l:nowledeeable about the cable television business. If a single arbitrator cannot be agreed
upon within said time period, then within five (d) days of the expiration of said ten (10) days -
period: each of the parties shall select one arbitrator: -The sole function of the arbitrators so
selected shall be to appoint a neutral third arbitrator who shall thereafter conduct the
arbitration. Except for the selection of the neutral arbitrator, the two arbitrators so appointed
-A
Rosemead/Charter franchise Agreement -29- June 6. 2000
DRAFT-
shall not participate in the arbitration process. If the two arbitrators cannot auree on the third
arbitrator within ten (10) business days of the expiration of said five (5) day period, then the
neutral arbitrator shall be appointed by the American Arbitration Association.
(c) The neutral arbitrator shall be knowledgeable about the cable television business
and shall conduct the arbitration, including any hearings, in accordance with the rules of the
American Arbitration Association.
(d) The rules and regulations of the American Arbitration Association shall govern the
arbitration except to the extent they are contrary to the terms of this agreement to arbitrate
and except as contrary to the California Code of Civil Procedure, sections 1280 and following.
-..--The"decision of the arbitrator shall be final a id binding on all parties and shall not
be subject to appeal or attack except as set forth in California Code of Civil Procedure,
section 128b.2. - -
(e) The -arbitration shall take place within Southern. a. - - IN WITNESS
-WHEREOF. Grantor and Grantee have executed this Aucement_the date and year-first__, -
wntten above.- _
APPROVED AS TO FORM: CITY OF ROSEMEAD By
Robert L. Kress
City Attorney
ATTEST:
Margaret Clark
Mayor
CHARTER COMMUNICATIONS
ENTERTAINMENT II. LLC
Nancy Valderrama
City Clerk
Rosemead/Charter Franchise Agreement
By
Vi'MP'residenL T
-30- June 6. 2000
DRAFT
EXHIBIT A IS TO BE GENERATED BY CHARTER WITHIN NINETY DAYS OF
THE EFFECTIVE DATE -
EXHIBIT C IS TO BE GENERATED BY CHARTER PRIOR TO THE EFFECTIVE
DATE
~a
Rosemead/Charter Franchise Agreement -31- June 6, 2000
EXHIBIT D
GRANTEE COMMITMENT TO
- EG ACCESS FACILITIES AND EQUIPMENT -
Rosemead/Charter Franchise Agreement June 6, 2000
DRAFT
EXHIBIT D: GRANTEE COMMITMENT TO EG ACCESS FACILITIES AND
EQUIPMENT
- 1. INTERCONNECTION OF PUBLIC BUILDINGS -
Grantor shall connect, at no installation charge, the buildings listed in Exhibit E, to the closest
node of the rebuilt Cable System, under the following conditions:
. . (A) An activated one-way (downstream) connection and the highest tier of basic cable service
at no installation or monthly charge shall be provided to all public buildings listed in Exhibit "E". For
monitoring purposes, at least one such location shall be established at City Hall, to be designated by
Grantor, to provide all channels available on the system.
2. CABLE MODEM SERVICE
-Grantee shall-install,-at no-installation-charge and_no monthly-tee,-cable-drops,-cable.modems
and Internet Service at the fastest. speed which a subscriber could purchase, in each of the public
-biiildinffs listed'in Exhibit"E" (except those-buildings listed-with an-asterisk With-the. exception--
,
of City Hall. such cable modems shall not be "networked. .If the City Hall cable modem is connected--
to'a nenvorE. the City shall-pay-a fee-of $4.95. for each 17mail address after the first_one..
EDUCATIONAIYAND GOVERNMENT (EG) ACCESS-CHANNELS.----__ _
Grantee shall make three (3) video channels available exclusively for EG use (not including the
the public access channel which is currently programmed by Grantee). These channels shall be
dedicated to such use-for the term of the Franchise renewal, provided the Grantee may utilize any
portions of these channels during any time-when-they-are nt.scfieduled for EG use: Grantor and
Grantee shall establish rules and procedures for such scheduling in accordance with Section 611 of the
Cable Communications Policy Act of 1984.
Rosemead/Charter Franchise Agreement - Fxhibit D D-1 June 6, 2000
DRAFT-
4. PROVISION OF EG ACCESS EQUIPMENT AND FACILITIES
(a) No later than thirty (30) days after the effective date of this Agreement, Grantee shall
provide and install at no charge, new character generation equipment and associated video equipment at
a designated location in Grantor's City Hall, and in the City's Emergency Operations Center, for use in
_-_eeneratina GovernmentalAccess text announcements on. Channel-5. 5, the Cable System's Government
Access Channel. Not earlier than five (5) years after the effective date of this Agreement, Grantor may
request, and Grantee shall provide and install at no charge, upgraded replacement character generation
equipment and associated video equipment at the designated locations.
(b) No later than ninety (90) days after the effective date of this Agreement, Grantee shall
provide a video playback unit in a location within the City Hall complex designated by Grantor.
Grantee also shall install an upstream link-from this location to the Cable System headend to permit
--playback to the Government Access channel.
_ _ (c) Grantor,may request from Grantee an EG_Access equipment ~rant,in an amount not to
- exceed thirty thousand dollars ($30,000) for EG Access support.-Grantee shall provide`the'requested- -
funds within six 60 dad T of the rccei t of a written re quest. Any-capital rant provided shall be
T rz utilized for EG Access equipment and facilities, which are defined to include, but not be limited to, data
communications terminal and interface equipment as well as video equipment.
(d) No earlier than sixty (60) months after the effective date of this agreement. Grantor may
request,an additional_ capital grant for EG Access support_
(e) If permitted by applicable law, the Grantor shall not oppose any "pass-through" of the EG
Access capital grants provided in (a) through (d) above. ~r
Rosemead/Charter Franchise Agreement- Exhibit D D-2 June 6. 2000
DRAFT
(f) Any request by Grantor for capital grants for special projects shall be in accordance with an
operating plan prepared by Grantor.
(g) Charter will provide audio/video coverage of up to four City, events each calendar year and
will produce video suitable for playback on the EG access channel.
5. EG OPERATIONS
Grantor may negotiate agreements with neiahboringjurisdictions served by the same Cable
. - System, educational institutions, or others to share operating expenses as appropriate. Grantor and
Grantee may negotiate an agreement for management of EG facilities, if so desired by the parties.
6. TITLE TO EG EQUIPMENT
Grantors hall retain title to all EG egmpmentprovided with funding made available in
accordance with paragraph 4 above 77
7.--- -==RELOCATION°OF-EG_CIL4,NNEL5 - -
- If Grantee relocates any EG Access channel to a different channel number, Grantee shall -
-reimburse Grantor for any out-of-pocket Grantor cosis incurred-as-a rresuli of tiie' relocation. 'Grantee
shall provide Grantor and all subscribers with at least thtm (30) days written notice of such relocation.
8. PROMOTION OF EG ACCESS
Grantee shall allow the Grantor to place bill stuffers in Grantee's subscriber statements at a
cost to the Grantor not to exceed Grantee's cost, not more than twice per year upon the written request---
of the Grantor and at such times that the placement of such materials would not effect Grantee's cost
for the production and mailing of such statements. The Grantor agrees to pay Grantee in advance for
-A-
Rosemead/Charter Franchise Agreement - Exhibit D D-J June 6, 2000
_ DRAFT- . -
the actual cost of such bill stuffers. Grantee shall also make available access information provided by
Grantor in subscriber packets at the time of installation and at the counter in the System's business
office. Grantee shall also distribute, at no charge to Grantor, through advertising insertion equipment,
promotional and awareness commercial spots produced at the Grantor's cost and submitted by the
Grantor in a format compatible with such equipment once Grantee has acquired and activated such
capability. Grantee shall also include a listing of the known programming to be cablecast on EG
Access channels in any program guide of services for the Cable System.
11, 11
d r~ T
Rosemead/Charter Franchise Agreement - Exhibit D D-4 _ June 6, 2000
DRAFT
EXHIBIT E
FREE PUBLIC BUILDING INSTALLATIONS
SERVICE TO ROSEMEAD INSTITUTIONS
In order to ensure that all public agencies in Rosemead be provided access to cable television
service, and cable internet access, Grantee offers a converter box and the highest tier of basic cable
television service, and a cable modem and unlimited access cable internet service, free of charge, to
one non-networked location in each of the following institutions: .
1. Rosemead City Hall - (Network Connected)
8838 E. Valley Boulevard
- 2. Garvey Park
-7933-Emerson Place
3. - Rosemead Park
4343 Encinita Avenue
- 4. ---Zapopan Park & Center-
3018-N-Charlotte--Avenue`-
Rosemead Community-Recreation_Center -
-=3936-N.=Muscatel-Avenue
6 Dinsmoor _Heritage. :House
9632 Steele Street - - -
3953 Muscatel Avenue
8. Garvey School District
2730 N. Del Mar Avenue
9. Rosemead School District
3907 N. Rosemead Blvd#230
10.~-, Bitely Elementary School 777-
7501 7501 E. Fern Street
f FvY' t ~ -
rR4
11. Duff Elementary School
7830 Dorothy Street
12. Emerson Elementary-School
7544 E. Emerson Place
13. Rice Elementary School-
2150 N. Angelus Street
14. Sanchez Elementary School
8470 Fern Street
15. Williams Elementary School
2444 N. Willard Avenue
16. Willard Elementary School
-3152 N. Willard Avenue
17. Garvey Intermediate School
2720 N. Jackson Avenue _ ` ° -
18. Temple Intermediate School
-
- ------8470 Fern-Str•-eef ` - -
19. - Encinita-Elementary. School-
-
15_Encinifa-Avenue. mar= -
20-J4nsdnElementa"ry-School- - _v -
8628-Marshall:Street
, -
_-Savannah .Elementary.School
3720 Rio Hondo Avenue _
22. Shuey Elementary School
8472 Wells Street
23. Muscatel Intermediate School
4201 N. Ivar Street
24. =--:--Rosemead High.School_.,
9063 E. Mission Drive
25. El Monte & Rosemead Adult School -
4105 Rosemead Boulevard
26. Don Bosco Technical Institute
1151 San Gabriel Boulevard
27. Southeast Community Adult Center
7422 E. Garvey Avenue
28. West San Gabriel Valley- Consortium/Career Partner
3505 N. Hart Avenue _
06/09/00 16:30 To:City Manager From:Maria G. Ramos Page 2/4
-.r
California
Contract Cities
Association
10810 Paramount Blvd., Suite #202 • Downey, California 90241 (562) 861-3908 • FAX (562) 8612389
c-nuil c xB'Qaol ;.,n
June 9, 2000
TO: MAYORS, COUNCILMEMBERS, CITY MANAGERS AND
ADMINISTRATORS
FROM: HAROLD E. HOFMANN, PRESIDENT
RE: RESOLUTION OPPOSING A SALES TAX FOR PROPERTY TAX SNVAP
AS RECOMMENDED BY THE CCCA EXECUTIVE BOARD
The Executive Board considered and adopted "The Fiscal Impact of the Proposed Sales
Tax/Property Tax Swap on Member Cities" prepared and reconwiended by the City Managers
sub-committee on fiscal reform. The report is the result of the recent survey of contract cities as
to thew actual sales tax and assessed valuation data from 1995-96 through the cunTemt fiscal year
with projections of their growth in these two areas for the nest live years. In addition,
addressing the "fiscaliztion of land use" they provided recent building pennit history.
The results of this survey stand in stark contrast to the results of the League's survey taken
earlier this year. From both a retrospective and prospective analysis the overwhelming m?jority
of responding cities to the Contract Cities survey would be financially harmed by the proposed
sales tax/property tax swap. The swap would result in a substantial transfer of revenues from the
cities to the Slate. Furthermore, the survey results do nol support the allegation of gross
imbalance in favor of commercial construction of cities' laud use decisions.
The attached resolution was also considered and adopted by the Executive Board. We eucau'age
your city to take quick action to adopt the resolution at your earliest council uleetime and
distribute it as soon as possible.
A
06/09/00 16:30 To:City Manager From:Maria G. Ramos
f..l
RESOLUTION NO.
A RESOLUTION OF THE CITY OF
, CALIFORNIA, OPPOSING
A SALES TAX FOR PROPERTY TAX SWAP
Page 3/4
WHEREAS, a Commission appointed by the former Spoaker of tho Statc Assembly
proposed a sales tax for property tax swap is a means to diversify local revenues, to remove
incentives for the approval of retail land uses and to encourage land use decision making for
additional housing,; and
WHEREAS, the League of California Cities Board of Directors endorsed a strategy
whereby the League would negotiate, if necessary as part of an overall fiscal reform package, the
exchange of all or part of fitture sales tax revenues derived front newly developed retail
properties in a city in return for an increased percentage of property tax on such proposals; and
WHEREAS; the League of California Cities Tax Reform Task Force now reconunencis
that the sales tax for property tax swap be dropped and be replaced by fiscal incentives for
housing land use and a greater local government share of the property tax without a swap of sales
lax and
WHEREAS. a recently completed survey of its membership by the California Contract
Cities Association concluded that eighty percent of file cities oppose a swap, out.), four percent
believed their city would be better off in the future by supporting a sales tax for property tax
swap and sixty-nvo percent of the surveyed cities believed the State would inadequately
umplonncnt such a swap even if it were a desirable public policy objective; and
WHEREAS; a fiscal analyst for the League of California Cities concluded that eleven of
sixteen cities he analyzed would benefit front a sales tax for property tax swap: however, a more
comprehensive survey of forty member cities of the California Contract Cities Association
concluded that 75% of the cities would actually be worse off with collective losses exceeding
$45 million had the swap been hn place over tine last four years; and
WI IEREAS, the California Contract Cities Association survey also found that the cities
snrveved over the last three years had approved a total of 8,907 single family homes, 1,609
multiple tannily dwellings, 28.5 million square feet of industrial development, 5.7 million square
fxt of commercial devolopmcut and 1.2 million square feet of office buildings; and
WHEREAS, approval of the new housing and non-retail commercial uses dwarfs the 5.7
million square feet of new retail uses in the same cities, thereby, refitting the theory that cities
routinely choose retail over not-retail land uses, including housing and industrial uses; and
WHEREAS, the Executive Board of the California Contract Cities Association has
adopted a Resolution opposing any proposal to swap sales tax for property tax;
NOW, THEREFORE. THE CITY COUNCIL OF THE CITY OF
DOES HEREBY RESOLVE AS FOLLOWS:
C,
06/09/00 16:30 To:City Manager Prom:Maria G. Ramos Page 4/4
s'
SECTION 1. That the City firnily opposes a sales tax for property tax swap as proposed
by Speaker's Commission and as originally considered, embraced, then rejected by the League
of California Cities Board of Directors.
SECTION 2. That the City strongly supports the following principals for the protection
of local home rule:
Constitutional protection for current rovcuucs sources; and
2. That the return of ERAF be consistent with the fomiula in AB 1661 (one-half per
capita and one-half based upon ERAF loss); and
3. Support reform efforts that will create new and wvestricted general revenue
sources that are constitutionally protected; and
4. Constitutionally reform, strengthen and simplify the un&uided mandates
reunbursement process.
SECTION 3. That copies of this action by the City of . be sent to
Assembly and Senate Members representing the City, the Governor and the office of the League
of California Cities in Sacramento.
ADOPTED AND APPROVED THIS DAY OF 2000.
Mayor
ATTEST:
City Clerk
el