Loading...
HomeMy WebLinkAbout83-02 Repealing Ord 72-35 and Adopting ORD 83-2 (Antenna Television Systems).r DIRECTORY OF ORDINANCE 83-2 OF THE CITY OF COSTA MESA, CALIFORNIA SECTION 19-05 Scope of Chapter SECTION 19-10 Definitions SECTION 19-20 Franchise to Install SECTION 19-30 Minimum Cable Television System Services SECTION 19-40 Technical Performance Standards SECTION 19-50 Two -Way Capability and Operation SECTION 19-60 Construction and Operation of Service SECTION 19-70 Penalties and Requests for Extensions of Construction Deadlines SECTION 19-80 Removal and Abandonment of Property by Grantee SECTION 19-90 Changes Required by Public Improvements SECTION 19-100 Franchise Fee SECTION 19-120 Interconnection SECTION 19-130 New Developments in Technology SECTION 19-140 Right to Privacy of Subscribers SECTION 19-150 Complaint Procedure, Remedies for Inadequate Service and Notices SECTION 19-160 Application for Franchise SECTION 19-165 Franchise Term: Duration and Termination SECTION 19-170 Approved Proposal to be Binding on Grantee SECTION 19-180 Costs to be Borne by Grantee SECTION 19-190 Rates, Charges and Rate Increases SECTION 19-200 Faithful Performance Bond SECTION 19-210 Indemnification of the City SECTION 19-220 Inspection of Property and Records SECTION 19-230 Non -Exclusivity of Franchise SECTION 19-240 Services SECTION 19-250 Limitations of Franchise SECTION 19-260 Rights Reserved to the City SECTION 19-270 Uses Permitted to Grantee SECTION 19-280 Acceptance of and Effective Date of Franchise SECTION 19-290 No Impairment of Contract SECTION 19-295 Equal Opportunity Employment and Affirmative Action Plan SECTION 19-300 violations ORDINANCE NO. 83-2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, REPEALING ORDINANCE NO. 72-35 AND ADOPTING ORDINANCE NO. 83-2 RELATING TO FRANCHISES FOR COM- MUNITY ANTENNA TELEVISION SYSTEMS. THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: TITLE 19 CHAPTER I CABLE COMMUNICATIONS SYSTEM ALSO KNOWN AS COMMUNITY ANTENNA TELEVISION SYSTEM SECTION 19-05 - SCOPE OF CHAPTER Any person, firm or corporation, operating, or seeking to operate, a cable communications system, also known as a community antenna television system (CATV) business within the City, the nature of which requires approval of the City Coun- cil of a franchise contract, shall be subject to all of the regulations contained herein or in any other applicable ordinances of the City. SECTION 19-10 - DEFINITIONS For the purpose of this Ordinance, the following terms, phrases, words, abbreviations, and their derivations shall have the meaning 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. A. "CITY" shall mean the City of Costa Mesa, a municipal corporation of the State of California, in its present incorporated form or in any latter reorganized, consolidated, enlarged or reincorporated form. B. "COUNCIL" shall mean the governing body of the City of Costa Mesa or any future board constituting the legislative body of the City. C. "CHIEF ADMINISTRATIVE OFFICER" shall mean the City Manager, City Admin- istrator, or other designation of the City's Chief Executive Officer, or any designee thereof. D. "FRANCHISE" shall mean and include any authorization granted hereunder in terms of a franchise, privilege, permit, license or otherwise, to con- struct, operate, and maintain a cable communications system within all or a specified area in the City. Any such authorization, in whatever form granted, shall not mean and include any license or permit required for the privilege of transacting and carrying on a business within the City as required by other Ordinances and laws of this City. E. "PERSON" shall mean any natural person and all domestic and foreign cor- porations, associations, syndicates, joint stock corporations, partner- ships or every kind, clubs, business or ccmmon law trusts, and societies. F. "GRANTEE" shall mean the person, firm or corporation granted a franchise by the Council under this Ordinance, and the lawful successor, transfer- ree and assignee of said person, firm or corporation. G. "STREET" shall mean the surface, the air space above the surface and the area below the surface of any public street, other public right-of-way or public place, including public utility easements. H. "PROPERTY OF GRANTEE" shall mean all property owned, installed, or used within the City by a Grantee in the conduct of a cable communications system business under the authority of a franchise granted pursuant to this Ordinance. I. "SUBSCRIBER" or "USER", shall mean any person or entity receiving for any purpose any service of the Grantee's cable camunications system includ- ing, but not limited to, the conventional cable television system service of retransmission of television broadcast, satellite broadcast, radio signals, Grantee's original cablecasting, and other locally originated programming and services, such as leasing of channels, data and facsimile transmission, pay television, public service cammunication, and other ser- vices which may arise during the course of this franchise. J. "COMMUNITY ANTENNA TELEVISION SYSTEM (CATV), also known as a cable com- munications system, means a system of antenna, satellite receiving and transmitting apparatus, coaxial cables, fiber optics, wires, wave guides, and/or other conductors, amplifiers, electronic processors, equipment and facilities designed, constructed or used for the purpose of providing over -the -air, satellite delivered and locally originated television or FM radio service by cable within the City of Costa Mesa. Such a definition does not include those services which are classified as MDS (Multiple Distribution Systems), DBS (Direct Broadcast Satellite), or STV (Sub- scription Television) services, all of which are delivered via microwave from a central originating point directly to a subscriber without the use of wires. K. "GROSS RECEIPTS" as used in the following categories, shall mean any and all compensation, in whatever form, grant, subsidy, exchange, or other- wise, directly or indirectly received by a grantee, not including any taxes on services furnished by the Grantee, imposed directly on any sub- scriber or user by a city, county, state or other governmental unit, arra collected by the Grantee for such entity. Gross receipts includes, but is not limited to, the following: CWM 1. "GROSS ANNUAL BASIC SUBSCRIBER RECEIPTS" shall mean any and all com- pensation and other consideration received directly or indirectly by the Grantee from subscribers in payment of the regularly furnished service of the cable television system in the transmission of broad- cast television, radio signals, satellite delivered programming, and original cablecast programming of the Grantee designated as the "basic service." 2. "GROSS ANNUAL NON -BASIC SERVICE RECEIPTS" shall mean any and all com- pensation and other consideration received directly or indirectly by the Grantee from subscribers or users in payment for the receipt of signals whether for "pay television", "facsimile" transmission, "security services", "return" or "response" communication, and whether or not transmitted encoded or processed to permit reception by only selected subscribers, and designed as an optional service, or non - basic service. 3. "GROSS ANNUAL ADVERTISING RECEIPTS" shall mean any income, compensa- tion or other consideration received by Grantee from any advertising on the cable television system. 4. "GROSS ANNUAL LEASE RECEIPTS" shall mean any fees or income received by Grantee for the lease or rental, and compensation for any service in connection therewith, such as studio and equipment rental, pro- duction costs, and air time of any channel permitted or designated by the Federal Communication to be so leased or rented. SECTION 19-20 - FRANCHISE TO INSTALL A non-exclusive franchise to install, construct, operate, and maintain a cable television system on streets within all or a specific portion of the City may be granted by the Council to any person, whether operating under an existing franchise, who or which offers to furnish and provide such system under and pur- suant to the terms and provisions of this Ordinance. No provision of this Ordinance may be deemed or construed as to require the granting of a franchise when in the opinion of the Council it is in the public interest to restrict the number of Grantees to one or more. SECTION 19-30 - MINIMUM CABLE TELEVISION SYSTEM SERVICES Any and all cable television systems for the City of Costa Mesa shall be designed and installed to meet all of the standards expressly set forth throughout this Ordinance. In addition, as a minimum, the system(s) shall be constructed to provide the following: A. 52 channels on a subscriber network. B. Interactive capabilities which shall be implemented per Section 19-50 of this Ordinance. C. A separate institutional network with switching capabilities between the subscriber network. - 3 - D. Upstream and downstream capabilities and services on all networks. E. Eight local channels for educational, library, governmental, religious, public and local origination use, with provisions for future additional channel allocation based upon usage and demand. F. A fully -equipped state-of-the-art local television production studio located within the city limits. G. A dedicated mobile television production van. H. Free installation and services for all public buildings as determined by the City. I. The wiring and installation of dedicated television origination equip- ment at City Hall for coverage of City Council and other meetings and/or hearings. J. Programming services that include: - national and international news services - financial and stock market information - sports channels - weather services - children's programming - movie channels - pay cable services - cultural programming - foreign language programming - programming for handicapped - processed FM stereo programming - educational programming from local public schools and higher educa- tion facilities K. Emergency override features. L. Dedicated quantities of portable television equipment which may be "shared" or "pooled" by public and institutional users. M. A sufficient quantity of dedicated portable television equipment for the public agencies of the City to allow those agencies to produce pro- gramming designed for internal distribution. N. Sufficient technical personnel to operate the studio and mobile van, and to provide technical assistance to community users in the prepara- tion, production and broadcasting of local programming. O. An internship program in cable television production to serve the City's educational and municipal agencies. P. On-going financial support for the development, operation, and promotion of the public access channels. - 4 - Q. Interconnection of subscriber amt/or institutional networks with those of adjacent and/or nearby communities, and county -wide agencies and/or services, pursuant to the provisions of Section 19-120. R. Addressable convertors and/or electronic trapping of cable signals shall be provided to all subscribers. The term "dedicated" as used in this Section, shall mean that the equipment which is dedicated is to be used solely for the purpose specified and is not shared with any other cable system owned or operated by the Grantee(s). SECTION 19-40 - TECHNICAL PERFORMANCE STANDARDS The CATV system shall be designed, installed, maintained and tested in accor- dance with the best CATV industry practice and, as a minimum, shall conform with the technical performance standards contained, herein. In addition, should the Federal Communications Commission (FCC), or other State or Federal authority having jurisdiction, impose CATV system technical performance standards contained herein, or requiring a higher level of CATV system performance, those standards are hereby incorporated herein by reference. If, for any reason, the reference FCC or other technical standards shall become reduced in the regional scope or service level, the more stringent stan- dards herein shall remain in effect. A. Performance of the CATV system as measured at the input to any subscriber terminal with matched 75 ohm termination shall be as follows: 1. The frequency boundaries of cable television channels delivered to the input of the subscriber terminals shall conform to those set forth in FCC 73.603(a), or subsequent FCC standard. 2. If no frequency converter is supplied to the subscriber, the visual carrier frequency shall be maintained 1.25 MHz ±25 KHz above the lower frequency boundary of the cable television channel. If a fre- quency converter is supplied to the subscriber by the cable tele- vision company, the following requirement shall be applied at the interface between the converter and the subscriber's terminal equip- ment: when the visual carrier at the output of the converter has been tuned to a frequency 1.25 MHz above the lower frequency boundary of a cable television channel with the converter stabilized at an ambient temperature between 20°C arra 25°C, the frequency of the visual carrier shall not vary more than ±250 KHz for a period of at least three (3) hours, during which period the ambient tempera- ture may vary t5°C about the initial ambient temperature. 3. The aural center frequency of the aural carrier shall be 4.5 MHz ±1 KHz above the frequency of the visual carrier. 4. The visual signal level across a 75 ohm terminating impedance as viewed from subscriber terminals shall not be less than 1500 micro- volts (+3.5dBmv) at each subscribers outlet. - 5 - 5. The visual signal level on each channel shall be maintained within: (a) 3 decibels of the visual signal level of and visual carrier within 6 MHz nominal frequency separation, and, (b) 12 decibels of the visual signal level on any other channel, and, (c) a maximum level such that signal level degradation due to overload in the subscriber's receiver does not occur, and (d) 12 decibels over any twenty-four (24) hour period. 6. The rms voltage of the aural signal shall be maintained between 13 and 17 decibels below the associated visual signal level. 7. The peak -to -peak variation in visual signal level caused by unde- sired low frequency disturbances (hum or repetitive transients) generated within the system, or by inadequate low frequency response, shall not exceed five percent (5%) of the visual signal level. 8. The amplitude characteristic shall be within a range of t2 deci- bels from 0.75 MHz to 5.0 MHz above the lower boundary frequency of the cable television channel, referenced to the average of the highest and lowest amplitudes within these frequency boundaries. 9. The ratio of visual signal level to system noise shall be not less that 42 decibels. 10. The ratio of visual signal level to any undesired co -channel tele- vision signal operating on proper offset assignment shall be not less than 36 decibels. 11. The ratio of visual signal level to the rms amplitude of any coherent disturbances such as intermodulation products or discrete -frequency interfering signals not operating on proper offset assignments shall not be less than 46 decibels. 12. The terminal isolation provided each subscriber shall be not less than 18 decibels, but, in any event, shall be sufficient to prevent reflec- tions caused by open -circuited or short-circuited subscriber terminals from producing visible picture impairments at any other subscriber terminal. 13. As an exception to the general provision requiring measurements to be made at subscriber terminals, and without regard to the class of cable television channel involved, radiation from a cable television shall be measured in accordance with procedures outlined in FCC regulations, and shall be limited as follows: FREQUENCIES Up to and including 54 MHz over 54 up to and including 216 MHz Over 216 MHz RADIATION LIMIT DISTANCE (microvolts/meter) (feet) 15 100 20 10 15 100 14. The CATV system shall be rated for continuous, twenty-four (24) hour per day operation. 15. The FM signal level across a 75 ohm terminating impedance as viewed from subscriber's terminals shall be not less than 100 microvolts (-20 dBmV) nor greater than the highest permitted Channel 6 aural signal level. 16. The FM signal on each channel shall be maintained within: (a) 3 decibels of the FM signal of any FM signal on an adjacent (200 MHz spacing) channel, and, (b) 6 decibels of the FM signal level of any other FM signal carried on the system. 17. The CATV system shall, as a minimum, be operational in full canpli- ance with the applicable specifications contained herein, over the radio frequency spectrum from 50 to 400 MHz inclusive. Further, the system shall be designed such that fifty-two (52) channel operation is possible fran the outset utilizing the 50 to 400 MHz spectrum. 18. The CATV system shall, as a minimum, be capable of operating in full compliance with the applicable specifications herein, a return signal capacity in all portions of the system, over the frequency range of 5 to 30 MHz. 19. The Grantee shall, at all times during the franchise, properly install and maintain adequate shielding, filtering and grounding at affected installations within the CATV system to eliminate system interference from local radio/television broadcase stations, commercial, government and aeronautical radio stations and/or from fundamental frequncy over- load by radio amateur or citizen's radio service transmissions which are in compliance with the Federal Camnunications Commission regula- tions. B. Nonbroadcast signals carried on the CATV system shall meet the following broadband requirements. The RF modulated signals associated with these baseband signals shall meet all requirements of Subsection A, above. 1. overall baseband system video frequency response shall be t2 deci- bels over a DC to 4.2 MHz bandwidth. 2. Baseband video tilt shall not exceed two percent (2%) at the vertical or horizontal rate. - 7 - 3. Overall baseband system video signal-to-noise ratio shall be not less than 42 decibels over a DC to 4.2 MHz bandwidth. 4. Video synchronizing waveform shall comply with the following applic- able standard (latest edition or its equivalent): (a) 2:1 interlace monochrome - EIA RS -330 (b) Full interlace monochrome - EIA RS -170 (c) Color - FCC 73.699 Figure 6 5. Where applicable, minimum television camera, (live and film) perform- ance shall be: (a) Resolution (luminance) - 350 line center (vertical); 500 line center, 400 line corners (horizontal) (b) Scan linearity - two percent (2%) maximum error (horizontal and vertical) (c) Registration (color only) two tenths percent (0.2%) in centered circle of 0.8 picture height; four tenths percent (0.4%) overall. (d) Video tilt - two percent (2%) maximum (horizontal rate) 6. overall audio system frequency response shall be t3 decibels over the frequency range 50 to 10,000 Hz. 7. overall audio system signal-to-noise ratio shall be not less than 50 decibels over the frequency range 50 to 10,000 Hz. 8. overall audio system harmonic distortion shall not exceed two percent (2%) at any frequency from 50 to 10,000 Hz. C. The local origination studio(s) provided by the Grantee shall meet the following minimum requirements: 1. 600 square -foot (net) space minimum. 2. 12 -foot ceiling height minimum. 3. 3,200° Kelvin tungsten halogen professional television production lighting system with a minimum of 200 foot-candles luminance. 4. Acoustical noise level under normal studio operating conditions not to exceed NC -25. 5. A minimum complement of television production equipment to include the following, or approved equivalent: * three (3) 3 -tube color television cameras with full remote control and ENG portable capability * all necessary studio lighting to meet the specifications noted above and with individual light dimming capability * a video switcher with chrcma key, special effects and downstream capability * a character generator with multiple font sizes, automatic vertical and horizontal scroll * one time base corrector (TBC) for signal processing of videotape recorders during editing * time base corrector(s) (TBC) for on -cable playback of all video- tape players * a 3/4" videotape editing system with multiple source capability and SMPTE time code features * two designated 3/4" videotape players * one 3/4" portable videotape recorder/player with rechargeable batteries * an audio mixing board with a minimum of four -channel input/output capability, two turntables, one two -channel tape recorder, one cassette tape recorder, four lapel microphones, two cardiol studio mics * a sync generator * a multiplexer, to include, one 16mm and one 8mm sound projector, and two 35mm slide projector capability * one vectorscope * two waveform monitors * all necessary video and audio monitors * all necessary mounting racks and consoles * all wiring, amplifier, terminal and processing equipment * all necessary test and maintenance equipment * a supply of spare parts to keep all equipment in a continual state of operation D. on the last regular working day of each of the first three (3) operating quarters of each year, the Grantee shall submit to the City Manager sys- tem performance data taken within the previous seven (7) days. Measure- ments for said data shall be taken at the same test points selected to satisfy Subsection E, below, during the last annual system performance test that the data has been submitted to the City. Quarterly test data shall be limited to: 1. Visual signal level for all channels carried. 2. Visual signal-to-noise measurements on one active lowband and one active highband VHF channel. 3. Visual hum modulation on one channel or pilot carrier. Quarterly tests shall be performed on a scheduled basis. A representa- tive of the City shall be permitted to accompany the Grantee during quarterly measurement activities. The Grantee shall not be permitted to make any system adjustments during quarterly measurement activities with- out noting such adjustments on the test data form. E. The Grantee shall, during the last month of the fourth operating quarter of each year, perform annual CATV system performance tests. 1. Such tests shall be in full compliance with FCC regulations. 2. Such tests shall be independently witnessed and the resultant data analyzed by a representative of the City if directed by the City Manager. 3. All necessary test instrumentation shall be supplied by the Grantee. A current certificate of calibration by an independent calibration laboratory shall be supplied for each test instrument. All costs for instrumentation and calibration shall be borne by Grantee. 4. Measurement locations for system compliance with Subsection A, above, except those rquirements regarding twenty-four (24) visual signal amplitude and channel amplitude characteristics, shall include: (a) end of each system major trunk, and, (b) end of each system trunk branch four (4) or more trunk amplifiers deep Actual test locations shall be selected to measure performance of the system in the franchise area and shall be (or as closely as possible to simulate) actual subscriber locations. 5. Measurements regarding twenty-four (24) hour visual signal level and channel amplitude characteristics shall be made as required by the FCC. 6. Measurement for system compliance with Subsection B, above, shall be made where practical on all origination equipment employed in the system. - 10 - 7. Measurement techniques shall be either (a) those suggested by the FCC, or, (b) those developed and mutually agreed to in writing by the City and the Grantee prior to system testing. If such agreement is not reached prior to testing, the City shall prescribe acceptable methods of measurement. 8. Concurrent with annual performance tests, the City representative shall inspect all system headend facilities and outside plant for adherence to best industry installation, workmanship and safety practice. 9. If said proof of performance tests, or construction standards show that the cable television system is below the performance standards outlined in this franchise, the City shall give notice thereof to Grantee and Grantee shall have thirty (30) days to corect said defi- ciency. Grantee will notify the City when such correction has been made and the engineering firm emploved in the previous test will retest to ensure canpliance. In the event the resultant tests reveal Grantee has failed to correct said deficiency(s), or if thirty (30) days has elapsed and Grantee has not corrected the deficiency, the City may request mutually agreed upon independent engineers to demon- strate, at the Grantee's cost, the appropriate correction to the Grantee. Grantee shall then have sixty (60) days or other approved reasonable time required, to correct deficiency. If at the end of the approved time the deficiency still has not been corrected, the City shall have the option of assessing liquidated damages in the amount of Two Thousand Dollars ($2,000) per day for each and every day the deficiency exists. F. The Grantee shall maintain the system so it consistently operates within the substantial compliance of the technical standards herein; substantial compliance being defined as ninety-five percent (95%) of the channels received shall meet all applicable technical standards simultaneously at the time of measurement, and one -hundred percent (100%) of the local origination equipment shall meet all applicable technical standards specified herein. SECTION 19-50 - TWO WAY CAPABILITY AND OPERATION The CATV system shall be constructed with full two-way capability (upstream and downstream transmission and reception) of both audio and video signals. In Year 3 of the franchise, (Year 1 begins with the award of franchise) and in no event later than the end of Year 3, Grantee shall subunit to the City Manager, for City Council approval, a plan for implementation of the two-way energ3ization of the subscriber network. Such a plan shall include, as a minimum, all subscriber services to be offered, the data for implementation and marketing of those ser- vices, and the fees to be charged subscribers for each and every service and/or level of service proposed. Following City Council approval, Grantee shall implement those two-way ser- vices by no later than the end of Year 4 of the franchise. Failure to meet any of the provisions of this section shall subject the Grantee to liquidated damages of $1,000 per day for each and every day's delay beyond the deadline(s) noted herein. Additionally, this franchise term shall be reduced four (4) days for each day of delay as provided in Section 19-70. SECTION 19-60 - CONSTRUCTION AND OPERATION OF SERVICE A. Within thirty (30) days after acceptance of any franchise, the Grantee shall proceed with due diligence to obtain all necessary permits and authorizations which are required in the conduct of its business, includ- ing, but not limited to, any utility joint use attachment, agreements, microwave carrier licenses, and other permits, licenses and authorizations to be granted by duly constituted regulatory agencies having jurisdiction over the operation of cable television systems, associated microwave transmission/reception facilities and/or satellite canmunications facilities. B. Within one -hundred twenty (120) days after award of franchise, Grantee shall commence construction and installation of the cable television system. C. As part of their proposal to the City of Costa Mesa, the franchise appli- cant shall indicate a proposed construction schedule for the completion of the installation of the cable television system throughout the entire City of Costa Mesa. Service to the areas prescribed in that proposal shall be provided within the period stated and failure on the part of the Grantee to complete each of the matters set forth therein, shall be grounds for termination of the franchise. The proposed construction schedule shall not, in any event, exceed two (2) years, except that, by resolution, and in accord with Section 70 of this Ordinance, the City, in its discretion, may extend the time for the commencement and completion of installation and construction for additional periods in the event the Grantee, acting in good faith, experiences delays by reason of circum- stances beyond his control. D. By acceptance of the franchise granted hereunder, Grantee agrees that failure to comply with any time requirements referred to in Subsections A, B, and C of this section, or as may be extended by Council, the pen- alty provisions specified in Section 19-70 shall apply. E. 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 propety or on privately -owned property unless and until first securing the written approval of the City Manager. F. The City shall have the right, free of charge, to make additional use, for any public or municipal purpose, whether governmental or proprietary, of any poles, conduits or similar facilities erected, controlled, or maintained exclusively by or for the Grantee in any street, provided such use does not interfere with the use by Grantee. - 12 - G. In those areas of the City where the transmission or distribution facil- ities of the respective public utilities providing telephone, communica- tion, and electric services are underground, or hereafter are placed underground, the Grantee shall likewise construct, operate, and maintain all of his transmission and distribution facilities underground, with the exception of "active electronic equipment," which, upon design and loca- tion approval from the City Manager, may be placed above ground. Whenever any active electronic component is so located above the surface of the ground, all efforts will be undertaken by Grantee to ensure that such location does not endanger the public safety or welfare, and, is so located as to not physically detract from the surroundings. The terns "underground" shall include a partial underground system. 1. The method of underground construction to be utilized by the Grantee, whether by trenching, boring, cutting, or other method, and the res- toration of street, parkways, alleys, and other City right-of-ways utilized for the placement of the franchisee's conduits and/or ancil- lary equipment, must first be submitted to the City Manager for approval. The construction methods approved will be subject to the required permit fees and City inspection as may be required by other ordinances, rules, regulations and specifications of the City hereto- fore or hereafter adopted, including, but not limited to, those per- taining to works and activities in, on, over, under and about streets. 2. Grantee shall provide a method of employee/subcontractor identifica- tion, acceptable to the City, for all such individuals who may make personal contact with Costa Mesa residents for the purposes of con- struction, marketing, or other services of the cable television system. 3. Prior to construction of, or rebuilding of, the cable system, the Grantee shall notify in writing each resident in the area in which construction is to commence, and shall deliver to each resident, notice of such construction either in person by a representative of the Grantee, or by mail, at least forty-eight (48) hours in advance of such construction work. 4. The Grantee shall perform all backfilling and return property to original condition within twenty-four (24) hours, except by specified written approval of the City Engineer. 5. All landscaped public and private areas shall be returned to a con- dition as existed prior to the construction work and the Grantee shall maintain such area until, in the opinion of the City Engineer, the plant materials are reestablished. 6. The Grantee, nor any subcontractor employed by the Grantee, shall not remove any tree or trim any portion either above, at, or below ground level, of any tree within any public place without the prior consent of the City. The City shall have the option to see that the work is accomplished with the actual cost thereof to be paid by the Grantee. If such trimming is not performed by the City, the Grantee - 13 - shall be responsible for any and all damages to any tree as a result of trimming, or to the land surrounding the tree, whether such tree is trimmed or removed. 7. Any Grantee awarded a franchise within the City of Costa Mesa agrees to the City's acceptance and approval of any and all subcontracting firms employed by the Grantee within the City. Such acceptance and approval by the City shall not be unreasonably denied. Additionally, any and all subcontracting firms employed by the Grantee shall adhere to the complaint procedures required of the Grantee, as expressed in Section 19-150 of this ordinance. In the event the City determines that any subcontractor employed by the Grantee is performing unsatisfactory or inferior work, as deter- mined by the City Engineer, or is the cause for numerous complaints, the City Manager shall issue a Stop Work order for all permits issued to the Grantee and/or any subcontractors for construction. The Grantee shall, within thirty (30) days of such notice employ another subcontractor that meets the provision of this subsection. If the City of Costa Mesa invokes its right to revoke the license of any subcontractor employed by the Grantee, then the Grantee shall be given an automatic extension of any construction deadline for thirty (30) additional says from the date of receipt of written notification of any such action by the City. H. Grantee shall, except as provided herein, provide services to the entire residential area of the City, including future annexations, in accord with Subsection C of this section, and herein referred to as the "SUB- SCRIBER NETWORK". Any limitations on system extensions, or exclusions, must first be approved by Council and referenced as part of the Grantee's proposal, or adopted by Council resolution and attached hereto as addi- tional Exhibits. Services to annexed areas must be provided within one (1) year of annexation. I. Grantee shall furnish the City with as -built drawings of the entire cable television system, including a microfiche copy of said plans. Within thirty (30) days of completion of construction of five (5) miles of City streets, and for each five (5) miles thereafter until the system is com- pleted, Grantee shall file as -built drawings with the City Engineer. J. In the event any changes, or modifications are made to the cable system that would alter the City's as -built plans, Grantee shall, after seeking City approval of such changes, file revised plans to reflect the changes within thirty (30) days of completion of the changes. K. Grantee agrees to maintain a local business office within the City of Costa Mesa of the purposes of conducting its local activities. Grantee further agrees to maintain a 24-hour toll-free answering service for ser- vice related problem calls, as well as separate toll-free telephone num- bers for the System Manager, the Sales/Marketing Department, and Service - 14 - Department. A minimum of three (3) lines shall be maintained for ser- vice -related calls, and, in the event the City determines through sub- scriber complaints, that those are insufficient to meet current demands, Grantee shall add such additional lines as may be necessary to provide prampt, efficient response to subscriber inquiries. All such telephone numbers indicated above shall be listed in directories or the telephone canpany serving the City, and be so operated that com- plaints and requsts for repairs or adjustments may be received at any time, day or night, seven (7) days a week. All canplaints shall be acknowledged and responded to within twenty-four (24) hours of receipt. SECTION 19-70 - NONCOMPLIANCE WITH TIME REQUIREMENTS AND REQUESTS FOR EXTENSIONS OF ANY OTHER DEADLINE In addition to remedies available to the City under Sections 19-50, 19-60 and 19-130 in this Ordinance or under any other law, the following provisions shall also apply: A. For failure to cammence construction in accordance with Section 19-50, 19-60 and 19-130 of this Ordinance, unless the Council approves the delay because of reasons beyond the control of the Grantee, the franchise term shall be reduced four (4) days for each day of delay. B. For failure to begin service to subscribers or complete construction and installation of the system as provided for in Section 19-50, 19-60, 19-120, 19-130, or 19-180(c) of this Ordinance, or as provided for in the Grantee's proposal to the City and adopted or amended, unless the Council approves the delay became of reasons beyond the control of the Grantee, the fran- chise term shall be reduced four (4) days for each day of delay. C. Any requests for extensions of the Grantee's construction deadlines due to acts of God, acts of the public enemy, fires, floods, epidemics, quarantine restrictions, strikes, lockouts, freight embargoes, unusually severe weather, or from any other cause beyond the reasonable control of Grantee and/or its employees, agents or contractors, must be requested from the City Manager in writing within fourteen (14) days after the cause of such delay first occurs. Such requst must specify the exact reason for the delay and the total number of extension days requested. Whenever and wherever possible, such requests for extensions of the required construction deadlines shall be supported with written justifi- cation of the cause for such delay, such as newspaper articles, letters from vendors, agents, contractors, etc. Within fourteen (14) days of receipt of such a request, the City Manager will reply in writing, approving, partially approving, or denying the request. D. By acceptance of a franchise granted hereunder, Grantee agrees that fail- ure to comply with any time requirement referred to herein, or in any franchise agreement, will result in damage to the City, and that it is and will be impractical or impossible to determine the actual amount of such damage in the event of delay; and therefore, in addition to any - 15 - other remedy or damage suffered by City, Grantee shall pay the City the sum of One Thousand Dollars ($1,000) per day for each and every day's delay beyond the time prescribed, or any extensions approved by City, for completion of any of the acts required to be done by Grantee concerning construction schedules and customer services. Such requests for extensions of the proposed or required construction deadlines shall be supported with written justification of the cause for such delay, such as newspaper articles, letters from vendors, agents, contractors, etc. Within fourteen (14) days of receipt of such a request, the City Manager will reply in writing, approving, partially approving, or denying the request. SECTION 19-80 - REMOVAL AND ABANDONMENT OF PROPER'T'Y OF GRAN'T'EE A. In the event that the use of any part of the CATV system is discontinued for any reason for a continuous period of twelve (12) months, or in the event such a system or property has been installed in any street or public place without complying with the requirements of Grantee's franchise, or this chapter, or the franchise has been terminated, cancelled, revoked, or expired, the Grantee shall promptly, upon being given ten (10) days' notice, remove frau the streets for public places all such property of such system other than any which the City Engineer may permit to be aban- doned in place. In the event of such removal, the Grantee shall promptly restore the street or other area from which such property has been removed to a condition satisfactory to the City Engineer. City may exercise its right to have property abandoned by the Grantee removed at Grantee's expense. B. Any property of the Grantee remaining in place thirty (30) days after the termination, cancellation, revocation, or expiration of the franchise shall be considered permanently abandoned. The City Engineer may extend such time, not to exceed an additional thirty (30) days. C. Any property of the Grantee to be abandoned in place shall be abandoned in such manner as the City Engineer shall prescribe. City may exercise its right to have property abandoned by the Grantee removed at Grantee's expense. Upon permanent abandonment of the property of the Grantee in place, the property shall became that of the City, and the Grantee shall submit to the City Engineer an instrument in writing, to be approved by the City Attorney, transferring to the City the ownership of such prop- erty, except as may be included within the provisions of any utility joint use attachment agreements. D. Grantee shall be obligated to participate in the undergrounding of all aerial or above -ground facilities at such time as underground utility districts are formed by the City. SECTION 19-90 - CHANGES REQUIRED BY PUBLIC IMPROVEMENI'S The Grantee shall from time to time protect, support, dislocate, temporarily or permanently as may be required, remove or relocate, without expnse to the City - 16 - or any other governmental entity, any facilities installed, used, and maintained under the franchise, if and when made necessary by any lawful change of grade, alignment, or width of any public street, including the construction of any subway or viaduct, by the City or any other governmental entity, or made necessary by any other public improvement or alteration in, under, on, upon, or about any public street or other public property, whether such public improvements or alteration be at the insistence of the City or another governmental entity, and whether such improvement or alteration is for a government or proprietary function, or made necessary by traffic conditions, public safety, street vacation or any other pub- lic project or purpose of City or any other governmental entity. The decision of the City Engineer under this section shall be final and binding upon Grantee. SECTION 19-100 - FRANCHISE FEE Any Grantee granted a franchise under this Ordinance shall pay to the City, during the life of such franchise, a sum equal to five percent (5%) of the annual total gross receipts and in addition thereto, such other sums as may be provided for elsewhere in this Ordinance. If, during any part of the franchise term, there is in effect a Federal or State limit regulating the franchise fee percentage to a lesser amount, such a limitation shall apply but only for that time period such limit is legally operational. Franchise fee payment by the Grantee to the City shall be made by the Grantee to the City quarterly and delivery of same to the Director of Finance. The Grantee shall file with the Finance Director, within ninety (90) days after the expiration of the Grantee's fiscal year or portion thereof during which such franchise is in force, a balance sheet and statement of profit and loss cer- tified to by a certified public accountant, or person otherwise satisfactory to the Finance Director, showing in detail the gross subscriber receipts, as defined herein, of Grantee during the preceding fiscal year, or portion thereof. It shall be the duty of the Grantee to pay to the City, within fifteen (15) days after the time for filing such statements, the sum hereinabove prescribed for the fiscal year. The City shall have the right to inspect and audit the Grantee's fiscal records. The City may require an independent audit of the Grantee's records to verify the franchise fee payment, at Grantee's expense. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further additional sums payable under this Section or for the performance of any other obligation hereunder. SECTION 19-120 - INTEROONNECTION The Grantee shall make all reasonable efforts to electrically interconnect the Costa Mesa CATV system with CATV systems in other Orange County communities for the purposes of sharing programming and services. Such an interconnect shall be effected by coaxial cable, fiber optic cable, microwave, or other bi-directional signal transportation means as appropriate to permit programming interchange in compliance with the technical provisions of the City's CATV Franchise Ordinance. Within two (2) years of the effective date of this Ordinance, the Grantee shall contact all franchised operators in the communities adjacent to Costa Mesa for the purposes of exploring and securing a mutually acceptable system interconnect - 17 - agreement and report the results of said activity to the Costa Mesa City Manager. Said report shall state each contacted operator's name, city, and response, list all programming activity available to Costa Mesa residents via such an interconnect agreement as well as list programming to similarly be transmitted from Costa Mesa to the adjacent community and explain the substance of the govern- ing business agreement reached with the other operators. A. If an adjacent operators) "IS" agreeable to the Grantee's inquiry for interconnect, the City Council regulating the franchise of the adjacent operator(s), and the City Council of Costa Mesa, must first mutually approve all details, plans and other agreements before implementation of the interconnect. In accord with provisions of this ordinance, the Council may adopt such an agreement by resolution. B. If an adjacent operators) "IS NOT" agreeable to the Grantee's inquiry, a letter report, stating that all reasonable attempts to gain an inter- connect agreement were made but unsuccessfully, shall similarly be filed with the City of Costa Mesa. C. In the case of adjacent new CATV systems constructed in communities after the Costa Mesa system, the Grantee shall have six (6) months after the new system becomes operational to make the required inquiries and attempt at an interconnect agreement. D. In the case of adjacent CATV systems operated by the Grantee, the Grantee shall have two (2) years from acceptance of this franchise in which to provide a plan to interconnect with the Costa Mesa system, the implemen- tation of which shall be mutually accepted and agreed to by the cities where such franchises operated by the Grantee exist. E. Grantee shall not interconnect its cable television system to other fran- chised cable television systems for the purpose of receiving or trans- mitting new commerial services, without prior approval of City. Such approval shall not be unreasonably withheld. City may condition its approval upon Grantee's provision of an intercon- nection plan which included the following: F. By acceptance of this franchise, Grantee agrees to cooperate with the City of Costa Mesa and the County of orange to implement a "County -Wide" interconnection plan. Such plans and the costs for implementation of the plan must be mutually agreed to by all parties prior to such inception. 1. Description of the technical features of the interconnection link. 2. Indication of the sharing of costs to implement the interconnection. 3. Description of the services to be received by Grantee's system from other cable television systems, and/or transmitted from Grantee's system to other systems. 4. Description of the rates and charges to be established by each parti- cipating system for the new commercial services, including the method for establishing any sharing of revenues that may be generated on a cooperative basis, such as advertising revenues. 5. Description of the impact of new revenues on franchise fees, sales taxes, and/or other financial considerations that normally are com- puted for revenues generated exclusively within a single franchise area. SECTION 19-130 - NEW DEVELOPMENTS IN TECHNOLOGY The Grantee shall upgrade its facilities, equipment and service so that its system is as advanced as the current state of the technology will allow. The Grantee shall install additional channel capacity as required to keep channel capacity in excess of the reasonable demand thereof by users. At all times the cable system shall be no less advanced than any other system of comparable size operated by the Grantee(s), excepting only systems which are experimental, pilot, or demonstration. Upon determination by the City that additional channel capacity or current technological upgrading is required, the City, after conferring with the Grantee, shall establish a reasonable schedule and conditions for implementation of the required changes to the CATV system. In determining the schedule and conditions for implementation of this section, the Council shall consider the Grantee's documentation of the economic viability of the proposed changes. In the event of such consideration, the Council, acting in good faith, may request an independent financial analysis of the proposed system upgrade, in which case both the Grantee's and City's financial studies shall form the basis for final determination of the proposed schedule and conditions for implementation of the proposed changes. Any failure on the part of the Grantee to comply to either the agreed upon schedule or conditions shall result in the application of the provisions of Section 19-70. In accord with Section 19-70 of this Ordinance, the Council, in its discre- tion, may extend the time for the commencement and completion of the terms of this section for additional periods in the event the Grantee, acting in good faith, experiences delay by reason of circumstances beyond his control. SECTION 19-140 - RIGHT TO PRIVACY OF SUBSCRIBERS As used in this section, "valid authorization" shall mean written approval from the subscriber for a period of time not to exceed one (1) year. A. Each franchise shall strictly observe and protect the rights of privacy and of property of subscribers and users at all times. Information on individual subscribers, individual subscriber preferences of any kind, viewing habits, political, social or ecomonic philosophies, beliefs, creeds, religions or names, addresses or telephone numbers shall not be revealed to any person, governmental unit, police department, investi- gating agency, company, other agency or entity, unless upon the authority - 19 - of a court of law, or, upon prior written permission of the subscriber, excepting for subscriber complaint information as required in Section 19-150 of this Ordinance. The request for permission must be contained in a separate doucment with a prominent statement that the subscriber is authorizing the permission in full knowledge of its provision. Such authorization shall not in any event be required as a condition of receiving service. B. A franchisee may release the number of its subscribers but only as a total number and as a percentage of the potential subscribers throughout the City. When indicating the number of subscribers viewing a particular channel at a particular time, franchise shall indicate only the total number of subscribers viewing during the relevant time and the percentage of all subscriabers which they represent, but never the identity of a particular subscriber. C. A franchise may maintain such information as is necessary to bill sub- scribers for the purchase of any system service. D. Neither a franchise nor any other person shall initiate in any form, the discovery of any information on or about a subscribers premises without prior valid authorization from the subscriber potentially affected. E. A subscriber may, at any time, revoke any authorization previously made, by delivering to franchise in writing, by mail or otherwise, his/her decision to so revoke. Any such revocation shall be effective upon receipt by franchisee. F. No monitoring of any subscriber terminal shall take place without speci- fic prior valid authorization by the use of the terminal in question, provided, however, the franchise may conduct systemwide or individually addressed "sweeps" for the purpose of verifying system integrity, security monitoring, and/or other addressable premium service implementation or verification which the subscriber has contracted for. In no event shall residential aural or visual monitoring of any kind take place without a clear indication to the subscriber that such monitoring is taking place. G. A franchise may, without prior subscriber approval, monitor those sub- scriber terminals which are connected to utility monitoring devices which measure utility usage and which have been first approved by the City Council. H. Prior to implementation of any interactive subscriber response mechanism, the Grantee must first demonstrate to the City Council that such a system can operate effectively and provide absolute protection against any invasion of privacy. I. A franchisee shall not tabulate any test results, nor permit the use of the system for such tabulation, which would reveal the commercial pro- duct preferences or opinions of subscribers, members of their families or their invitees, licensees or employees, without prior valid author- ization of the subscriber. - 20 - J. Each canpilation, publication, tabulation or other dissemination of each piece of information made or permitted to be made in violation of this Section shall be considered a separate violation and any person who vio- lates this Section is guilty of a misdemeanor punishable by a fine not exceeding $3,000 and/or imprisonment in the County Jail for up to one (1) year. K. As noted in (A) of this section, a franchise may, without prior subscriber approval, maintain and release that information required in Section 19-150, (A) (1-4) to the City Manager and/or his designee for the purposes of resolving subscriber complaints. SECTION 19-150 - COMPLAINT PROCEDURE, REMEDIES FOR INADEQUATE SERVICE, AND NOTICES A. The following procedure shall be adhered to in the event of subscriber complaints or complaints by City residents: 1. Grantee shall establish procedures for receiving, acting upon and resolving complaints to the satisfaction of the City Manager. The Grantee shall furnish a notice of such procedure to each subscriber and/or resident as follows. (a) Grantee shall establish a separate procedure for handling and resolving construction -related complaints during the initial construction of the cable system, and a separate procedure for handling and resolving service -related problems once the system construction is canplete. Such procedures must first be approved by the City Manager and/or his designee. (b) Pursuant to Section 19-60 (G) (3), and the requirements of this Section, the Grantee shall provide each homeowner with copies of the approved construction complaint procedure in addition to the construction notices required in Section 19-60. 2. Maintain a written record, or "log" listing date and time of customer complaints, identifying the subscriber and determining the nature of the complaints and when and what action was taken by the Grantee in response thereto; such record shall be kept at Grantee's local office, reflecting the operations to date for a period of at least three (3) years, and shall be available for inspection during regular business hours without further notice or demand by the City Manager. 3. In the event that a customer complaint is not resolved to the mutual satisfaction of the customer or the Grantee, either customer or the Grantee may request that the matter be presented to the City Manager for a hearing and resolution. 4. When there have been similar camplaints made or where there exists other evidence which, in the judgment of the City Manager casts doubt on the reliability or quality of cable service, or the Grantee's abil- ity to meet the technical standards herein adopted, the City Manager - 21 - shall have the right and authority to compel the Grantee to test, analyze, and report on the performance of that part of the system involved in the problem. Such test or tests shall be made and the reports of such test or tests shall be delivered to the City no later than fourteen (14) days after the City formally notifies the Grantee. Such report shall include the following information: (a) the nature of the complaint which precipitated the special test (b) what system component was tested (c) the equipment used and procedures employed in such testing (d) the names of the individuals performing and witnessing the testing (e) the date, time, and location of testing (f) the results of such testing (g) the methods in which such complaints were resolved Any other information pertinent to the special test shall also be recorded. The resultant report shall be submitted to the City Mana- ger and will form the basis for resolution. In the event either the subscriber or Grantee determines that the resolution was unsatisfac- tory, either may appeal the issue to the City Council for a final and binding resolution. 5. Pursuant to Section 19-60, the Grantee shall respond to all service - related calls within 24 -hours of receipt, and attempt to make repairs and/or resolve the ccmplaint as quickly as possible. 6. In the event service to any subscriber is interrupted for 24 -hours or longer, except in circumstances where prior permission of the City or service interruption has been received, the Grantee will rebate one - hundred percent (100%) of the basic monthly service charges for that monthly billing period. 7. In the event service to any subscriber is interrupted for 48 -hours or longer, except in circumstances where prior permission of the City for service interruption has been received, the Grantee will rebate one - hundred percent (100%) of the total monthly service charges for that monthly billing period. 8. As used in this Section, the term "interrupted" shall mean loss of sig- nals, (audio, video, voice, data, etc.) on fifty-one percent (51%) of all channels and/or services to which the resident subscribes. SECTION 19-160 - APPLICATION FOR FRANCHISE A. Each application for a franchise to construct, operate, or maintain any cable television system(s) in the City shall be filed with the City Clerk and shall contain the following: - 22 - 1. The name, address and telephone number of the applicant: 2. A detailed statement of the corporate or other business entity organ- ization of the applicant, including but not limited to, the following, and to whatever extent requiring by the City: (a) the names, residence and business address of all officers, directors and associates of the applicant. (b) the names, residences, and business addresses of all officers, or being entitled to have or control of 5% or more of the owner- ship of the applicant arra the respective ownership share of each such person or entity. (c) the names arra addresses of any parent or subsidiary of the appli- cant, namely, any other business entity owning or controlling applicant in whole or in part or owned or controlled in whole or in part by the applicant, and a statement describing the nature of any such parent or subsidiary business entity, including but not limited to cable television systems owned or controlled by the applicant, its parent arra subsidiary and the areas served thereby. (d) a detailed description of all previous experience of the appli- cant in providing cable television system service and in related or similar fields. (e) a detailed and complete financial statement of the applicant, prepared by an independent certified public accountant, for the fiscal year next preceding the date of the application hereunder, or a letter or other acceptable evidence in writing from a recog- nized lending institution or funding source, addressed to both the applicant and Council, setting forth the basis for a study performed by such lending institution or funding source, and a clear statement of its intent as a lending institution to provide whatever capital shall be required by the applicant to construct and operate the proposed system in the City, or a statement from a certified public accountant, certifying that the applicant has available sufficient free, net an uncommitted cash resources to construct and operate the proposed system in this City. (f) a statement identifying, by place and date, any other cable television franchise(s) awarded to the applicant, its parent or subsidiary; the status of said franchise(s) with respect to com- pletion thereof; the total cost of completion of said system(s); and the amount of applicant's and its parent's or subsidiary's resources committed to the completion thereof. 3. A detailed description of the proposed plan of operation of the appli- cant which shall include, but not be limited to the following: (a) a detailed map indicating all areas proposed to be served, and a proposed time schedule for the installation of all equipment - 23 - necessary to become operational throughout the entire area to be served. (b) a statement or schedule setting forth all proposed classifica- tions of rates and charges to be made against subscribers and all rates and charges as to each of said classifications, including installation charges and service charges. (c) a detailed, informative, and referenced statement describing the actual equipment and operational standards proposed by the applicant and that such standards of operations are in compli- ance with Section 19-40 of this Ordinance. (d) a copy of the form of any agreement undertaking, or other instru- ment proposed to be entered into between the applicant and any subscriber. (e) a detailed statement setting forth in its entirety any and all agreements and understandings, whether formal or informal, written, oral, or implied, existing or proosed to exist between the applicant and any person, firm, or corporation which materi- ally relate or pertain to or depend upon the application and the granting of the franchise. 4. A copy of any agreement covering the franchise area, if existing between the applicant and any public utility subject to regulation by the California Public Utilities Commission providing for the use of any facilities of the public utility, including but not limited to poles, lines, or conduits. 5. Any other details, statements, information or reference pertinent to the subject matter of such application which shall be required or requested by the Council, or by any provision of any other ordinance of the City and any of its Charter. 6. A nonrefundable application fee in the amount of Eight Thousand Dollars ($8,000), which shall be in the form of cash, certified or cashier's check, or money order, delivered to the City Clerk's office at the time specified for filing applications. B. The Council may, by advertisement or any other means, solicit and call for applications for cable television system franchises, and may determine and fix any date upon or after which the same shall be received by the City, or the date before which the same must be received, or the date after which the same shall not be received, and may make any other determinations and specify any other times, terms, conditions, or limitations respecting the soliciting, calling for, making and receiving of such applications. C. Upon receipt of any application(s) for a cable communications system fran- chise, the Council may refer the same to an independent cable television consultant, approved by the Council, who shall make an evaluation and prepare a report and recommendation respecting such application(s), and cause the same to be completed and filed with the Council. - 24 - D. If the Council decides to further consider the application(s), it shall set a public hearing for the consideration of competing applications; fixing and setting forth a day, hour, and place certain when and where any persons having any interest therein or objections may file written protests and/or appear before the Council and be heard, and directing the City Clerk to publish notice of said hearing at least once within ten (10) days prior to the hearing in a newspaper of general circulation within the City. E. In making any determination hereunder as to any application for a new franchise or renewal thereof, the Council may give due consideration to the quality of the service proposed, rates to subscribers, income to the City, experience, character, its management and owners, technical and performance quality of equipment, willingness and ability to meet con- struction and other deadlines, and to abide by policy decisions, franchise requirements, and any other considerations deemed pertinent by the Council for safeguarding and promoting the interests of the City and the public. F. At the time set for the hearing, or at any adjournment thereof, the Coun- cil shall proceed to hear all written protests and/or support. Thereafter, the Council shall make one of the following determinations: 1. That such application(s) be denied, which determination shall be final and conclusive; or, 2. That City staff and an Independent Consultant enter into negotiations for the determination of the terms of the final franchise agreement with one or more of the applicants, and that the time for such nego- tiations be limited to a time not to exceed ninety (90) days and that the proposed final franchise agreement be brought back for Council approval, at which time the Council may: (a) Award a non-exclusive franchise to one or more of the appli- cants by authorizing execution of the franchise agreement(s). (b) Reject all applications and request new and/or proposals. G. The Council may at any time demand and applicants shall provide such supplementary, additional or other information as the Council may deem reasonably necessary to determine whether the requested franchise should be granted. SECTION 19-165 - FRANCHISE TERM: DURATION AND TERMINATION A. Any franchise granted by the Council under this Ordinance shall be for a maximum term of fifteen (15) years from the date of Council award of the franchise. B. If Grantee wishes to renew this franchise, within two (2) years of the expiration date of the franchise, Grantee shall file notice of request for renewal of the franchise. Such request shall, at the minimum, specify the following: - 25 - 1. Justification, based on prior experience, for the extension. 2. Number of years of the requested franchise renewal. 3. Changes, modifications, improvements, such as an increase in channel capacity, services provided, or other additions/deletions Grantee is proposing to provide during the term of the requsted renewal. 4. Proposed rate schedules for all services and level of services proposed. 5. Any and all other information the City Manager shall deem relevant to the request. Within ninety (90) days of receipt of the Grantee's application for franchise renewal, the City shall schedule a review of the request with Grantee. A final decision and agreement between Grantee and the City shall be resolved at the earliest possible date, but in no event, later than eighteen (18) months prior to the expiration of the existing fran- chise, unless the Council agrees to an extension. In the event agreement is not concluded prior to that time, notice shall be given to the Grantee of the City's intent not to renew the franchise and of the City's intent to solicit interested applicants to apply for the franchise period. C. The City may terminate any franchise granted pursuant to the provisions of this Ordinance in the event of the failure, refusal or neglect by Grantee to do or comply with any material; requirement or limitation con- tained in this Ordinance, or the franchise agreement, or any material, rule or regulation of the Council or City Manager validly adopted pursu- ant to the Ordinance. D. The City Manager may make written demand that the Grantee camply with any such requirement, limitation, term, condition, rule or regulation. If the failure, refusal or neglect of the Grantee continues for a period of thirty (30) days following such written demand, the City Manager may place his request for termination of the franchise upon the next regular Council meeting agenda. The City Manager shall cause to be served upon such Grantee, at least ten (10) days prior to the date of such Council meeting, a written notice of his intent to request such termination and the reason therefore, and the time and place of the meeting, notice of which shall be published by the City Clerk at least once ten (10) days before such meeting in a newspaper of general circulation within the City. E. The Council shall consider the request of the City Manager and shall hear any persons interested therein, and shall determine, in its discretion, whether or not any failure, refusal or neglect by the Grantee was with just cause. F. If such failure, refusal or neglect by the Grantee was with just cause, the Council shall direct the Grantee to comply within such time and manner and upon such terms and conditions as are reasonable. - 26 - G. If the Council finds there has been such failure, refusal, or neglect by Grantee, the Council may declare that the franchise is terminated and forfeited. The Council may impose any other remedy it deems appropriate unless there be compliance by the Grantee within such period as the Council may fix, or reduce the length of the franchise. H. In the event of any holding over after expiration of any franchise granted hereunder, without the prior consent of the City, the Grantee shall pay to the City reasonable compensation and damages, including liquidated damages, of not less than one -hundred percent (100%) of its gross revenue during said period. I. The termination and forfeiture of any franchise shall in no way affect any of the rights of the City under the franchise or any provisions of law. J. Any franchise granted under this Ordinance shall terminate automatically without further notice or action by the City, upon the filing for any relief under the Federal Bankrupcy Code, or the making of an assignment for benefit of creditors or the appointment of State Court receiver, whether voluntary or involuntary. SECTION 19-180 - COSTS TO BE BORNE BY GRANTEE T1ie Grantee shall assume the following costs associated with this franchise: A. Costs of publication of this franchise as such publication is required by law. B. Costs associated with the City employing an independent Consultant to assist with the development of the franchise ordinance and any negotia- tions required to grant, amend, or enforce the provisions of the franchise. C. Costs of an independent engineering firm to witness the design, installa- tion and proof of performance testing of the system as a verification of the Grantee's adherence to the terms and conditions of the franchise. If said proof of performance tests show that the cable television system is below the performance standards outlined in this franchise, the City shall give notice thereof to Grantee and Grantee shall have thirty (30) days to correct said deficiency. Grantee will notify the City when such correc- tion has been made and the engineering firm employed in the previous test will retest to ensure compliance. In the event the resultant tests reveal Grantee has failed to correct said deficiency(s), or if thirty (30) days has elapsed and Grantee has not corrected the deficiency, the City may request mutually agreed upon independent engineers to demonstrate, at the Grantee's cost, the appropriate correction to the Grantee. Grantee shall then have sixty (60) days or other approved reasonable time required, to correct deficiency. If at the end of the approved time the deficiency still has not been corrected, the City shall have the option of assessing liquidated damages in the amount of Two Thousand Dollars ($2,000) per day for each and every day the deficiency exists. D. All fees related to construction of the CATV facilities, including, but not limited to, City excavation permit fees, construction inspection fees, and other Ctiy costs related to CATV installation and construction. - 27 - E. City costs of advertising and noticing for any public hearings related to rate increases or changes in this franchise. SEMON 19-190 - RATES, CHARGES, AND RATE INCREASES The service rates and installation and connection charges for CATV system use, will be contained in the Franchise Agreement, provided that said rates and charges may be changed from time to time by resolution of the City Council, pursuant to this Section. All such rates and charges contained in the Franchise Agreement shall remain in effect with no increase for a period of three (3) years from the effective date of said Agreement. All rate and charge increase requests submitted or proposed by Grantee after said three (3) year period shall be based upon the following criteria which shall be considered and evaluated by the City Council. A. The initial rates as hereinabove set may be adjusted after the initial three (3) year period and at such time thereafter as hereunder specified, based upon the Consumer Price Index (CPI), Urban Wage Earners, prepared by the Bureau of Labor Statistics of the United States Department of Labor, ralating to all items, Series A, for the Los Angeles/Long Beach area (1967=100), in accordance with the following formula: 1. The Grantee shall submit to the City each year a report of the most recent CPI information for the twelve (12) month period preceding the report. 2. The number of points of increase or decrease in the CPI for said twelve (12) month period, divided by the index base of one hundred (100) shall be used as the total annual percentage increase in the CPI. 3. The Grantee may request and the City shall thereon grant an annual rate increase in the amounts requested by Grantee, provided that: (a) The amount of such annual rate adjustment divided by the current subscriber rates shall not exceed seventy-five percent (75%) of the total annual percentage increase in the CPI as determined under subparagraph 2 above. (b) The Grantee provides the City with written financial statements showing that the rate adjustment is justified by increased ex- penses incurred by the Grantee in the operation of its CATV system. 4. Any application by the Grantee for a rate increase shall be accom- panied and supported by the following information: (a) Copies of financial reports and income statements certified by a certified public accountant (CPA) for at least the preceding three (3) years. If the Grantee is a subsidiary of another firm, simi- lar financial data shall be furnished for the parent corporation. (b) An itemization of capital assets, both tangible and intangible, the accounting basis for depreciation and the depreciation sched- ule. If intangible assets such as goodwill are being amortized, the amortization period shall be stated. (c) A detailed breakdown of operating, marketing, and general and administrative costs by category for each of the three (3) pre- ceding years. (d) The number of subscribers for "basic cable service" and "premium cable service" for each of the three (3) preceding years. (e) The number of cable plant -miles and dwelling units passed by the cable plant for each of the three (3) preceding years. (f) A statement as to any allocation of funds to parent canpany over- head or operating costs, and the basis for such allocation. B. Upon receipt of a rate increase request, accompanied by all of the sup- porting information of a) above, it shall be the obligation of the City Council to act upon this request within a period of sixty (60) days frau the date upon whichh all supporting materials have been sumitted in ade- quate form. Prior to taking action on the request at least one (1) noticed public hearing shall be held upon the rate increase. The Council shall approve, partially approve, or disapprove, any increase of rates or rates for additional services on the basis of the following consideration. 1. Performance of the Grantee in abiding by the terms and conditions of this Ordinance. 2. Whether the Grantee has adequately served or serviced the subscribers in the City and the community in general. 3. Rates for comparable CATV service(s) in surrounding canmunities. 4. Revenue and profits from services offered. 5. Operating and construction expenses of the system. 6. Completeness of the information submitted by Grantee in support of the request for increases. 7. Other such evidence or testimony as may arise during the public hearing. The decision by the City Council approving, partially approving, or dis- approving the request for increase shall not be unreasonably withheld and such decision shall be in resolution form, which shall contain findings indicating the basis for the decision and any new rates or charges thereby approved and adopted. Any increase in rates or charges thereby approved shall become effective thrity (30) days after the date of approval of the resolution. - 29 - C. In the event a rate increase is granted as requested, the Grantee shall refrain from applying for further increases for a period of fifteen (15) months from the effective date of the prior increase. If the rate request is denied, or a lesser increase than requested is approved, the Grantee shall refrain from applying for further increases for a period of six (6) months from the date of the resolution denying the request or approving the lesser request. SECTION 19-200 - FAITHFUL PERFORMANCE BOND A. The Grantee shall concurrently with executing the franchise agreement, file with the City Clerk and shall during the first five (5) years of such franchise (year 1 begins with the award of the franchise), maintain in full force and effect a corporate surety bond or other adequate surety agreement in the initial amount of Five Million Dollars ($5,000,000.00). The principal sum of said performance bond may be reduced each year by twenty -percent (20%) of the first (1st) through the fifth (5th) annual anniversary date of the award of the franchise. Said reduction shall not be made whenever Grantee is in violation of any of the provisions of Ordinance No. 83-2, Title 19, Chapter One, or of the franchise agreement granted pursuant to this Ordinance. The bond or agreement shall be so conditioned that in the event that Grantee fails to comply with any one or more of the provisions of this Ordinance or of such franchise, then there shall be recoverable jointly and severally from the principle and surety any damages of loss, or costs suffered or incurred by the City as a result thereof, including attorney's fees and costs of any action or proceeding, and including the full amount of any compensation, indemnification, cost of removal or abandonment of any property or other costs which may be in default, up to the full principal amount of such bond. Said condition shall be a continuing obligation during the term of the bond and thereafter until Grantee shall have satisfied in full any and all obligations to the City which arise out of or pertain to said franchise. Neither the provisions of this Section, nor any bond accepted by the City thereunder shall be construed to excuse faithful performance by the Grantee, or limit the liability of the Grantee under any franchise issued pursuant to this Ordinance or for damages either to the full amount of the bond or otherwise. B. In addition to the provisions of Subsection (A), the Grantee shall deposit as a Security Fund the amount of One Hundred Thousand Dollars ($100,000.00) cash with the City of Costa Mesa, or in a federal or state of California bank or savings and loan association in the name of the City of Costa Mesa. Interest accrued in the fund may be utilized in maintaining the balance at One Hundred Thousand Dollars ($100,000.00), and any amount in excess of said balance may be withdrawn by the Grantee. In the event Grantee shall fail to comply with any or more of the provi- sions of the Ordinance, then the City shall have the right to withdraw from such cash deposit any damages suffered by the City, as a result thereof, including the full amount of any compensation, liquidated dam- ages, indemnification, or cost of removal or abandonment of property as prescribed by this Ordinance which may be in default, up to the full amount of the cash deposit. - 30 - 1. Within fifteen (15) days after written notice to Grantee by the City that the City has withdrawn any amount from the Security Fund, Grantee shall deposit or pay to the City a sum of money sufficient to restore such Security Fund to the original amount of one Hundred Thousand Dollars ($100,000.00). 2. If the Grantee fails to pay the City any monies due within the time frame fixed in this Chapter or the franchise, or fails after ten (10) days written notice to pay the City any taxes due and unpaid; or fails to repay the City within ten (10) days written notice, any damages, penalties, costs or expenses which the City may be campelled to pay by reason of any act, omission or default of Grantee; or fails after ten (10) days written notice to canply with any provision of this Chapter or the franchise which the City reasonably determines can be remedied or partially cured by an expenditure from the Security Fund, the City may immediately withdraw the amount thereof, including any penalties from the Security Fund. Upon such withdrawal, the City shall in writing notify Grantee of the amount and date thereof. In the event the Security Fund is insufficient to pay the City for any compensation, damages, penalties, costs of expenses owing to the City pursuant to this Chapter or the franchise, and the Performance Bond is in effect, the bond may be drawn upon by the City for any amount due the City over and above the amount held in the Security Fund. 3. The Security Fund shall became the property of the City in the event that a franchise is terminated by the City by reason of a violation of this Chapter or breach of the franchise pursuant to the provi- sions contained herein. 4. Upon application to the City, the Grantee shall be entitled to the return of all monies remaining in the Security Fund at the expira- tion of the franchise or any renewal thereof, provided there is no outstanding default of monies owing on the part of the Grantee to the City. C. Neither the provisions of this section, nor any bond accepted by the City pursuant hereto, nor any damages recovered by the City hereunder, shall be construed to excuse faithful performance by the Grantee or limit the liability of the Grantee under any franchise issued hereunder or for damages, either to the full amount of the bond or otherwise. In the event Grantee shall fail to comply with any one or more of the provi- sions of the Ordinance, then the City shall have the right to withdraw frau such cash deposit any damages suffered by the City a a result thereof, including the full amount of any campensation, liquidated damages, indemnification, or cost of removal or abandonment of property as prescribed by this Ordinance which may be in default, up to the full amount of the cash deposit. Grantee shall, as a condition of this Section, maintain the balance in such a cash account so that any amounts withdrawn by the City pertinent to this Section shall be replaced by the Grantee within fifteen (15) days' notice of withdrawal by the City. - 31 - SECTION 19-210 - INDEMNIFICATION OF THE CITY AND INSURANCE A. The Grantee shall agree, in a form satisfactory to the City Attorney, to indemnify and hold harmless the City, its officers and employees from and against any and all claims, demands, liabilities, actions, suits and proceedings, including all attorney fees and expenses, arising out of the performance of the francise agreement by or on behalf of the Grantee, or arising out of any failure by the Grantee to secure a consent frau the owners, authorized distributors or licensees of programs to be delivered by the Grantee's CATV system, irrespective of the amount of the compre- hensive liability insurance policy required hereunder. B. The Grantee shall file with the City Clerk, and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a general comprehensive liability insurance policy, in protection of the City, its officers, boards, com- missions, agents and employees, in a form satisfactory to the City Attor- ney, protecting the City and all persons against all liability for loss or damage for bodily injury, death and property damages, occasioned by the operations of Grantee or any agent, employee or subcontractor of Grantee under such franchise, with minimum liability limits of one Mil- lion Dollars ($1,000,000) combined single -limit. C. The policies mentioned in B. shall name the City, its officers, boards, commissions, agents and employees, as additional insured and shall con- tain a provision that a written notice of cancellation or reduction in coverage of said policy shall be delivered to the City thirty (30) days in advance of the effective date thereof, and shall provide that such coverage is primary to any other insurance of City. SECTION 19-220 - INSPECTION OF PROPER'T'Y AND RECORDS A. At all reasonable times, the Grantee shall permit any duly authorized representative of the City to examine all property of the Grantee together with any appurtenant property of the Grantee situated within or without the City, and to examine and transcribe any and all maps and other records kept or maintained by the Grantee or under its control which deal with the operations, affairs, transactions or property of the Grantee with respect to its franchise, except for that subscriber demographic data protected under Section 19-140 of this Ordinance. If any such maps or records are not kept in the City, or upon reasonale request made available in the City, and if the City Council determines that an examination thereof is necessary or appropriate, then all travel and maintenance expense neces- sarily incurred in making such examination shall be paid by the Grantee. B. The Grantee shall prepare and furnish to the City Manager at the time and in the form prescribed by said officer, such reports with repsect to its operations, affairs, transactions or property, as may be reasonably necessary or appropriate to the performance of any of the rights, func- tions or duties of the City or any of its officers in connection with the franchise. - 32 - C. The Grantee shall at all times make and keep in the City full and complete plans and records, including technical maintenance manuals, showing the exact location and description of all cable communications equipment and component parts installed or in use in the cable system installed within the City. SECTION 19-230 - NON -EXCLUSIVITY OF FRANCHISE Every franchise granted under this Ordinance shall be non-exclusive. Neither the granting of any franchise hereunder nor any of the provisions contained herein shall be construed to prevent the City from granting any identical or similar franchise to any other person, firm, or corporation, within all or any portion of the City. SECTION 19-240 - SERVICES Services shall be offered to all City residents in accordance with the pro- visions of the franchise agreement and the Grantee shall not reduce the level of service provided, but may, at its discretion, substitute programming to offer subscribers an equal or higher quality array of services. SECTION 19-250 - LIMITATIONS OF FRANCHISE A. No privilege or exemption shall be granted or confered by any franchise granted under this chapter except those specifically prescribed herein. B. Any privilege claimed under any such franchise by the Grantee in any public street or other public property shall be subordinate to any prior or subsequent lawful occupancy or use thereof by the City or any other governmental entity and shall be subordinate to any easements therein, whether created prior or subsequent to the granting of any franchise hereunder. C. Any such franchise shall be a privilege to be held in personal trust by the original Grantee. It cannot in any event be sold, transferred, leased, or assigned or disposed of, in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, consolidation, or otherwise, without the prior consent of the Council, after receipt of any contractual documents, and then only under such conditions as may be pre- scribed by Council. Any such transfer or assignment shall be made only by an instrument in writing, a duly executed copy of which shall be filed in the Office of the City Clerk within thirty (30) days after any such transfer or assign- ment. The consent of the Council shall not be arbitrarily refused, pro- vided, however, the proposed assignee must show financial responsibility and must agree to comply with all of the provisions of this chapter and of the franchise agreement, and, provided, further, that no such consent shall be required for a transfer in trust, mortgage, or other hypotheca- tion to avoid or evade the other provisions of this chapter affecting transfers. A request for Council consent must be accompanied with a fee to assist in defraying City investigation expenses in an amount to be determined by the City. - 33 - In the event the Grantee is a corporation, prior approval of the City Council shall be required where there are actual changes in control, or where ownership of more than five -percent (5%) of the voting stock of Grantee is acquired by a person or group of persons acting in con- cert, none of whom already own fity-percent (50%) or more of the voting stock, single or collectively. Any such acquisition occurring without prior approval of the Council shall constitute failure to comply with a material requirement of this Ordinance within the meaning of Section 19-165 (C) herein. The entry into a "Close Corporation" management agreement by the corporation and/or its stockholders shall be deemed a sale, transfer, or assignment within the meaning of this Section. D. Time shall be of the essence of any such franchise granted hereunder. The Grantee shall not be relieved of his obligation to canply promptly with any of the provisions of this chapter or by any failure of the City to enforce prompt campliance. E. Any right of power in, or duty impressed upon, any officer, employee, department, or board of the City shall be subject to transfer by the City to any other officer, employee, department, or board of the City. F. The Grantee shall have no recourse whatsoever against the City for any loss, cost, expense, or damage arising out of any provision or require- ment of this chapter or of any franchise issued hereunder or because of its enforcement. G. The Grantee shall be subject to all requirements by City Ordinance, rules, regulations and specifications heretofore or hereafter enacted or estab- lished, and shall canply with all applicable state and federal laws and regulations heretofore or hereafter enacted or established. H. Any such franchise granted shall not relieve the Grantee of any obligation involved in obtaining pole space from any department of the City, utility company, or from other maintaining poles in streets. I. Any franchise granted hereunder shall be in lieu of any and all other rights, privileges, powers, immunities, and authorities owned, possessed, controlled or exercisable by Grantee, or any successor to any interest of Grantee, of or pertaining to the construction, operation or maintenance of any cable communications system in the City, and the acceptance of any franchise hereunder shall operate, as between Grantee and the City as an abandonment of any and all of such rights, privileges, powers, immunities, and authorities within the City, to the effect that, as between Grantee and the City any and all construction, operation and maintenance by any Grantee of any cable communication system in the City shall be, and shall be deemed and construed in all instances and respects to be, under and pursuant to said francise, and not under or pursuant to any other right, privilege, power, immunity or authority whatsoever. SECTION 19-260 - RIGHTS RESERVED TO THE CITY A. Nothing herein shall be deemed or construed to impair or affect, in any way, to any extent, the right of the City to acquire the property of - 34 - the Grantee, either by purchase or through the exercise of the right of eminent domain, at a fair and just value, which shall not include any amount for the franchise itself for any of the rights or privileges granted, and nothing herein contained shall be construed to contract away or to modify or abridge, either for a term in perpetuity, the City's right of eminent domain. In the event the City wishes to acquire part or all of the cable communi- cations system either by purchase or through the exercise of the right of eminent domain, City and Grantee will each appoint one appraiser to estab- lish the value of the equipment to be acquired by City. The two (2) appraisers will select a third (3rd) appraiser who will be chairman of the appraisal board. The board will, by majority vote, determine the value of the system to be acquired by the City. This value will be final and bind- ing on both City and Grantee and will be used as the purchase price of just compensation in any purchase by the City or eminent domain proceeding between City and Grantee. In the event of purchase by the City, or a change of Grantee, the current Grantee shall cooperate with the City, or with a representative appointed by the City, to operate the system for a temporary period in maintaining continuity of service. B. There is reserved to the City every right and power which is required to be herein reserved or provided by any other ordinance of the City, and the Grantee, by acceptance of any franchise, agrees to be bound thereby and to comply with any action or requirements of the City in its exercise of such rights or power, heretofore or hereafter enacted or established. C. There is reserved to the City the power to amend any section or part of this chapter so as to require additional or greater standards of con- struction, operation, maintenance, level of service, or otherwise, on the part of the Grantee, when such action can be shown to be in the public's safety and/or welfare. D. Neither the granting of any franchise nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right of power of the City, now existing or hereafter granted. E. The Council may do all things which are necessary and convenient in the exercise of its jurisdiction under this chapter and may determine any question of fact which may arise during the existence of any franchise granted hereunder. The City Manager and/or his designee, is authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of any Grantee under this chapter, between the City, and the Grantee, in the best interest of the public. F. All notices which City may give to Grantee or which Grantee may give to City, shall be given in writing and may be given by First Class Mail, postage prepaid, addressed to Grantee's most recent address on file with the City, and addressed to the City at the official City Hall address. - 35 - Such notices, so sent by mail shall be deemed given one (1) day after deposit in the United States mail if so deposited in Orange County or Los Angeles County; otherwise they shall be deemed given upon receipt. G. In the event the Federal Communications Commission (FCC) elects to dereg- ulate any area of cable communication over which it currently exercises proprietary jurisdiction, or grant authority to municipalities to regulate in these areas, any franchise issued pursuant to this Ordinance shall be automatically amended, without any additional act by any party to it, to reflect these new municipal regulatory powers, and the City may, if it so elects, adopt rules and regulations in these areas. SECTION 19-270 - USES PERMITTED TO GRANTEE Any franchise granted pursuant to the provisions of the chapter shall author- ize and permit the Grantee to engage in the business of operating and providing a cable communication system in the City, and for that purpose to install, erect, construct, repair, replace, reconstruct, maintain and retain in, on, under, upon, across and along any public street, such wires, cables, conductors, conduits, ducts, vaults, manholes, amplifiers, appliances, attachments, and other property as may be necessary and appurtenant to the cable communications systems; and, in addition, so to use, operate and provide similar facilities or properties rented or leased from other persons, firms or properties rented or leased from other persons, firms or corporation including but not limited to any public utility or other Grantee franchised or permitted to do business in the City. The Grantee may make a charge to subscribers for installation of or connection to its cable communication system and a fixed monthly charge as filed and approved as herein provided. No increase in the rates and changes to subscribers, as set forth in the schedule files and approved with Grantee's application, may be made without the prior approval of the Council. SECTION 19-280 - ACCEPTANCE OF AND EFFECTIVE DATE OF FRANCHISE A. No franchise granted pursuant to the provisions of this chapter shall become effective until all things required in this Section and Sections 19-200 and 19-210, are done and completed, all of such things hereby declared to be conditions precedent to the effectiveness of any such franchise granted hereunder. In the event any of such things are not done and completed in the time and manner required, the Council may declare the franchise null and void. SECTION 19-290 - NO IMPAIRMEN'T'S OF CONTRACT Pursuant to Section 53066.1(p) of the California Government Code enacted by the statutes of 1982, neither the City nor any Grantee shall be entitled, with respect to any franchise agreement, to raise the defense of impairment of con- tract in any case where the due and proper exercise of police power, or the limits thereof, is at issue. - 36 - SECTION 19-295 - EQUAL OPPORTUNITY EMPLOYMENT AND AFFIRMATIVE ACTION PLAN In the carrying out of the construction, maintenance and operation of the cable television system, the Grantee shall not discriminate against any employee or applicant for employment because of race, creed, color, sex or national origin. The Grantee shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, sex or national origin. Such affirmative action shall include, but not be limited to, the following: Employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Grantee shall post in conspicuous places, available to employee and applicants for employment, notice setting forth the provisions of this nondiscri- mination clause. The Grantee shall, in all solicitations or advertisements for employees placed by or on behalf of the Grantee, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex or national origin. The Grantee shall incorporate the foregoing requirements in all of its con- tracts for work relative to construction, maintenance and operation of the cable television system, other than contracts for standard commercial supplies or raw materials, and shall require all of its contractors for such work to incorporate such requirements in all subcontracts for such work. SECTION 19-300 - VIOLATIONS A. From and after the effective date of this chapter, it is unlawful for any person to construct, install or maintain within any public street in the City, or within any other public property of the City, or within any privately -awned area within the City which has not yet become a public street on an adopted general plan of arterial highways or on any tenta- tive subdivision map approved by the City, any equipment or facilities for distributing any television signals or radio signals through a cable television communications system, unless a franchise authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this chapter, and unless such franchise is in full force and effect, provided that that certain agreement between City and Dickinson Cable, dated April 6, 1981, shall be deemed to satisfy the requirements of this Section to obtain a franchise. B. It is unlawful for any person, firm or corporation to make any unauthor- ized connection, whether physically, electrically, acoustically, induc- tively, or otherwise, with any part of a franchised cable communication system within this City for the purpose of taking or receiving television signals, radio signals, pictures, programs or sound. C. It is unlawful for any person, firm, or corporation to make any unauthor- ized connection, whether physically, electrically, acoustically, induc- tively, or otherwise, with any part of a franchised cable communication - 37 - system within this City for the purpose of enabling himslef or others to receive any television, radio signal, picture, program or sound, without payment to the owner of said system. D. It is unlawful for any person, without the consent of the owner, to will- fully tamper with, remove or injure any cables, wires, or equipment used for distribution of television signals, radio signals, pictures, programs or sound. E. A violation of the foregoing subsections, A, B, C, or D shall constitute a misdemeanor and is punishable by imprisonment in the county jail not exceeding six (6) months, and/or by a find not exceeding Five Hundred Dollars ($500) for each and every offense. PASSED AND ADOPTED this day of . CITY 9E-7 MESA Cyr ATTEST: ATTEST: Ci y C er o the City of Costa 7 a r STATE OF CALIFORNIA ) OOUNTY OF ORANGE ) ss CITY OF OJSTA MESA ) I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing ordi- nance No. 83-2 was introduced and considered section by section at a regular meeting of said City Council held on the 17th day of January 1983, the amended ordinance was introduced and considered section by section at a regular meet- ing eeting of said City Council held on the 7th day of February, 1983, and thereafter passed and adopted as a whole at a regular meeting of said City Council held on the 22nd day of February, 1983, by the following roll call vote: AYES: OOUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 23rd day of February, 1983. Cit Clerk and ex -officio Clerk o the City Council of the City of Costa fesa