Loading...
HomeMy WebLinkAboutOrd 834-1980ORDINANCE NO. 83~1-B0 AN ORDINANCE OF THE CITY OF SOUTH SAN FRANCISCO PROVIDING FOR THE GRANTING OF FRANCHISES FOR COMMUNITY ANTENNA TELEVISION SYSTEMS AND PROVIDING TERMS AND'CONDITIONS FOR THE OPERATION OF SUCH COMMUNITY ANTENNA TELEVISION SYSTEMS AND FEES THEREFOR: AND REPEAL~ING-ORDINANCE NO. 547, AN ORDINANCE ON THE SAME SUBJECT. THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES ORDAIN AS FOLLOWS: SECTION I - DEFINITIONS For the purpose of this Ordinance, the following terms, phrases, words, abbreviations and their deriviations 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 South San Francisco, a Municipal Corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form. (b) "Council" shall mean the present governing body of the City of South San Francisco or any future board consisting of the legislative body of the City. (c) "Chief Administrative Officer" shall mean the City Manager, City Administrator, 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 construct, operate and maintain a cable television system within all or a specified area in the City. (e) "Person" shall mean any natural person and all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts and societies. (f) "Grantee" shall mean the person, firm or corporation granted a franchise by the City Council under this Ordinance; and the lawful successor, transferee or assignee or 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 television system business under the authority of a franchise granted pursuant to this Ordinance. (i) "Subscriber" or "User" shall mean any person or entity receiVing and paying a monthly fee for any service of the Grantee's cable television system. (j) "Cable Television System;" "CATV" and CTV" for the purpose of this Ordinance, are terms describing a system employing antennae, microwave, wires, waveguides, coaxial cables or other conductors, equipment or facilities, designed, constructed or used for the purpose of: 1. Collecting, amplifying and distributing local and distant broadcast television or radio signals; 2. Distributing original cablecast programming not received through television broadcast signals; 3. Distributing television pictures, film and video-tape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers; 4.Receiving and distributing all other signals: Digital, voice and audio-visual; 5.Receiving and delivering any and all other services which may be authorized or permitted by the Federal Communications Commission; provided, however, that any of the services permitted hereunder to be performed, as described above, shall be those performed by the Grantee for subscribers, as herein defined, in the operating of a cable television or CATV system franchised by the City and not otherwise. (k) "Gross Annual ReceiptS" shall mean any and all compensation, in whatever form, grant, subsidy, exchange or otherwise, received directly or indirectly by Grantee from subscribers or users in payment for cable TV system services received within the City of South San Francisco, excluding any taxes or services collected by the Grantee for any governmental entity. Gross Annual Receipts shall not include: 1. Any copyright liability collected by Grantee for payment to the Federal Copyright Tribunal. 2. Any refundable portion of any deposits which are collected from subscribers to guarantee the careful use of and the final return of special tuning devices such as, but not limited to, converters and descramblers, provided by Grantee for the purpose of increasing the number of channels received by subscribers or to provide ancillary services or signals to subscribers. 3. Payments made by Grantee to program suppliers which may be exempted by Council action from "Gross Annual Receipts" so as to encourage Grantee to provide such additional optional service$~ desired by its subscribers. (1) "Basic Service" where referred to in this Ordinance shall mean a minimum of twelve (12) television channel retransmissions of Grantee receivable by all television sets via the standard twelve-channel VHF tuner. -3- (m) "Optional Services" shall include all other retransmissions, organiza- tions, digital, video or audio communications which Grantee may provide but which are not required to be accepted along with the basic service by the customer. (n) "Converters and Descramblers" shall refer to equipment Grantee may install for customers in order that the customer may receive optional service, other than equipment necessary to receive basic service. SECTION 2 - EXCLUSIVE USE OF TELEPHONE FACILITIES When, and in the event that, the Grantee of any franchise hereunder constructs, operates and maintains a CATV system exclusively through telephone company facilities constructed, operated and maintained pursuant to a state granted telephone franchise and offers satisfactory proof that in no event during the life of such franchise shall the grantee make any use of the streets independently of such telephone company facilities, said Grantee shall be required to comply with all of the provisions hereof as a "licensee" and in such event whenever the term "grantee" is used herein, it shall be deemed to mean and include "licensee." SECTION 3 - FRANCHISE TO INSTALL AND OPERATE A non-exclusive franchise to install, construct, operate and maintain a cable television system on or under the streets within all or a specific portion of the City may be granted by the Council to any person who offers to furnish and provide such system under and pursuant to the terms and provisions of this Ordinance. The CATV system shall be installed and maintained in accordance with the best accepted standards of the industry. No provisions of this Ordinance may be deemed or construed so 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 4 - CABLE TELEVISION SERVICE (a) Basic Service: The cable television system permitted to be installed and operated hereunder shall: -4- 1. Be operationally capable of providing the basic service as referred to in Section l(j) and (1) above. 2. Distribute color television signals which it receives in color without the introduction of material degradation on color fidelity and intelligence. 3.Utilize equipment designed and rated for twenty-four (24) hours per day continuous operation. 4. Provide a nominal signal level of 2,000 microvolts at the input terminals of each TV receiver. 5. Have a signal-to-noise ratio no less than forty (40) decibels. 6.Maintain hum modulation of the picture signal at less than five percent (5%). 7.Use components having a VSWR of one and four-tenths (1.4) or less. (b) Optional Services: The cable television system permitted to be installed and operated hereunder may also engage in the business of optional services described in Section l(m) above. (c) Subscriber Complaints: In addition to other service regulations adopted by the Council, and excepting circumstances beyond Grantee's control such as acts of God or riots and civil disturbances; and in providing the foregoing services, the Grantee shall: 1. Limit system failures to a minimum time duration by locating and correcting malfunctions promptly, but in no event longer than twenty-four (24) hours after occurrence, irrespective of holidays or other non-business hours. 2. Upon complaint by a subscriber, make a demonstration satisfactory to the Chief Administrative Officer that a signal is being -5- delivered which is of sufficient strength and quality to meet the standards set forth in the regulations of the Federal Communications Commission. 3. Render efficient service, making repairs promptly and interrupting service only for good cause and for the shortest time possible. Planned interruptions, insofar as possible, shall occur during periods of minimum use of the system. 4. Maintain an office in the City, which office shall be open during all the usual business hours, with its telephone listed in directories of the telephone company serving the City, and be so operated that complaints and requests for repairs or adjustments may be received at any time, day or night, seven (7) days a week. 5. Maintain records identifying dates of customer complaint, identifying and describing the nature of the complaint, and when and what action was taken by Grantee in response thereto; said records shall be kept at Grantee's local office for a period of two (2) years from the date of the complaint, and shall be available for inspection during regular business hours by the Chief Administrative Officers or any member of Council, (d) Municipal Service: 1. The Grantee shall provide, where possible, at the request of the Chief Administrative Officer (and upon City reimbursement of Grantee's actual cost (cost negotiable)), use of Grantee's studio, equipment and technical services for production of live and video-taped municipal programs, subject to scheduling requirements of the Grantee. 2. With respect to the basic television services, the Grantee shall provide all subscriber services and a tie-in connection, without -6- cost, when the system passes such facilities and as designated by the Council, to: (i) Public schools and community colleges within the City, and (ii) Buildings owned and controlled by the City, used for public purposes and not for residential use (fire and police stations excepted). (e) Compatibility and Connectibility: 1. It is the desire of the City that all cable television systems franchised hereunder shall, insofar as financially and technically possible, be compatible one with another with systems adjacent to the City. 2. Whenever it is financially and technically feasible and upon request of the City, Grantee shall so construct, operate and modify the system so as to tie the same into all other systems within and adjacent to the City. (f) Uses permitted: Any franchise granted pursuant to the provisions of this Ordinance shall authorize and permit the Grantee to engage in the business of operating and providing a cable television system in the City, and for that purpose to effect, install, construct, repair, replace, reconstruct, maintain and retain in, on, over, under, upon, across and along any street, such poles, wires, cable, conductors, ducts, conduit, vaults, manholes, amplifiers and applicances, attach- ments and other property as may be necessary and appurtenant to the cable television system; and, in addition, to so use, operate and provide facilities or properties rented or leased from other persons, firms or corporations including but not limited to, any public utility or other Grantee franchised or permitted to do business in the City. SECTION 5 - FRANCHISE PAYMENTS In consideration of the granting and exercise of a franchise to use the streets, -7- as herein defined, for the operation of a cable television system, Grantee shall pay to the City, during the life of the franchise, two and one-half percent (2~%). of its gross annual receipts as defined herein. Such payment shall be annually on or before March 31. (a) The City shall have the right to inspect the Grantee's revenue records under the franchise and the right to audit and recomputation of any and all amounts payable under this Ordinance; the cost of said audit shall be borne by Grantee when the same results in increasing, by more than two percent (2%), the Grantee's annual payment to the City. (b) 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 or additional sums payable under this Ordinance or for the performance of any other obligation hereunder. SECTION 6 - FRANCHISE TERM: DURATION AND TERMINATION (a) The franchise granted by the Council under this Ordinance shall not be longer than a term of fifteen (15) years from the date of its acceptance by the Grantee. (b) The City may terminate any franchise granted pursuant to the provisions of this Ordinance in the event of the willful failure, refusal or neglect by Grantee to do or comply with any material requirement or limitation contained in this Ordinance, or any material rule or regulation of the Council or Chief Administrative Officer validly adopted pursuant to this Ordinance. (c) The Chief Administrative Officer may make written demand that the Grantee do or comply 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 Chief Administrative Officer may place his request for termination of the franchise upon the next regular -8- Council meeting agenda. The Chief Administrative Officer 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 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. (d) The Council shall consider the request of the Chief Administrative Officer 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 without just cause. (e) 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. (f) If the Council shall determine such failure, refusal or neglect by the Grantee was without just cause, then the Council may, by resolution, declare that the franchise of such Grantee to be terminated and forfeited unless there be com- pliance by the Grantee within such period as the Council may fix. (g) The termination and forfeiture of any franchise shall in no way affect any of the rights of the City under the franchise or any provision of law. (h) In the event of any holding over after expiration or other termination of any franchise granted hereunder, without the prior consent of the City, expressed by resolution, the Grantee shall pay the City reasonable compensation and damages of not less than one hundred percent (100%) of its gross receipts, less substantiated operating expenses, during said period. SECTION 7 - APPLICATIONS FOR FRANCHISE (a) Each application for a franchise; other than one seeking renewal of a current franchise; to construct, operate or maintain any cable television system in this City shall be filed with the City Clerk and shall contain or be accompained by the following: -9- (ii) (iii) (iv) The name, address and telephone number of the applicant. A detailed statement of the corporate or other business entity organization of the applicant including, but not limited to, the following and to whatever required by the City: (i) The names, residences and business addresses of all officers, directors and associates of the applicant. The names, residence and business addresses of all officers, persons and entities having, controlling or being entitled to have or control five percent (5%) or more of the ownership of the applicant and the respective ownership share of each such person or entity. The names and addresses of any parent or subsidiary of the applicant, 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 or subsidiary and the areas served thereby. A detailed description of all previous experience of the applicant in providing cable television system service and in related or similar fields. (v) A detailed and complete financial statement of the applicant, prepared by a Certified Public Accountant, -10- e for the fiscal year next preceding the date of the application hereunder, or a letter or other acceptable evidence, in writing from a recognized lending institution or funding source, addressed to both the applicant and the Council setting forth the basis of a study performed by such lending institution or funding source, and a clear statement of its intent as a lending institution or funding source 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 and uncommitted cash resources to construct and operate the proposed system in this City. (iv) A statement identifying by place and date any other cable television franchise(s) awarded to the applicant, its parent or subisdiaries, the status of said franchise(s) with respect to completion thereof; the total cost of completion of such system(s); and the amount of applicant's and its parent subsidiary resources committed to the completion thereof. A detailed description of the construction, installation, maintenance and operation of the proposed CATV system which shall include, but not be limited to the following: (i) A detailed map indicating all areas proposed by be served and a proposed time schedule for the installation of all -11- (ii) (iv) equipment necessary to become operational throughout the entire area to be served. A statement or schedule setting forth all proposed classifica- ~ tions of rates and charges to be made to subscribers and all rates and charges as to each of said classifications, including installation charges and service charges. A detailed, informative and referenced statement describing the actual equipment and operational standards proposed by the applicant. In no event shall said operation and performance standards be less than those contained in Ti]tle 47, Subpart K, (Sections 76.601 et seq.), Rules and Regulations, Federal Communications Commission, adopted February 2, 1972, and as amended. A copy of the form of any agreement, undertaking, or ather instrument proposed to be entered into between the applicant and any subscriber. (v) A detailed statement setting forth in its entirery any and all agreements and undertakings, whether formal or informal, written, oral or implied, existing or proposed to exist between the applicant and any person, firm or corporation which materially relate or pertain to or depend upon the application and the granting of the franchise. 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. -12- 5. Any other details, statements, information or references pertinent to the subject matter or such application which shall be required or requested by the Council, or by any provision of any other ordinance of the City. 6. An advance deposit of the application fee in the sum of fifteen thousand dollars ($15,000) which shall be in the form of cash, certified or cashier's check or money order. The application fee shall be an amount equal to the actual costs incurred by the City in studying, investigating or otherwise processing the application. The advanced deposit shall not be returnable or refundable in whole or in part, except to the extent that such fee exceeds the actual costs incurred by the City in studying, investigating and otherwise processing the application; provided, that any applicant who shall deliver to the City Clerk a written withdrawal of or cancellation of any application hereunder, not later than the seventh (7th) day next following the day such application is received by the City Clerk, shall be entitled to have returned and refunded eighty percent (80%) of such sum, less any actual costs or expenses incurred by the City by reason of such application. 8. The Grantee shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of a franchise pursuant to the provisions of this Ordinance. Such payment shall be made within thirty (30) days after the City furnishes the Grantee with a written statement of such expenses. -13- 9. Upon receipt of any application for franchise, the Council shall refer the same to the Chief Administrative Officer who shall prepare a report and make his recommendations respecting such application and cause the same to be completed and filed with the Council within one hundred eighty (180) days, which time may be reasonably extended by the Council. 10. In making any determination hereunder as to any applicati~on, the Council may give due consideration to the quality of the service proposed, rates to subscribers, income to the City, experience, character, background and financial responsibility of any applicant, its management and owners, technical and performance quality of equipment, willingness and ability to meet construction and physical requirements, and to abide by policy conditions, franchise limitations and requirements and other considerations deemed pertinent by the Council for safeguarding the interests of the City and the public. The Council, in its discretion, shall determine the award of any franchise on the basis of such consideration and without competitive bidding. 11. If the Council shall determine to reject such application, such determination shall be final and conclusive and the same shall be deemed rejected. 12. If the Council shall determine to further consider the application, the following shall be done: 1. The Council shall decide to specify the terms and conditi~Ons of any franchise to be granted hereunder and as herein provided. 2. The Council shall pass its resolution of intention to consider the granting of such a franchise, giving notice of receipt of -14- 13. 14. 15. the application and describing the character of the franchise desired, stating the name of the proposed Grantee, the terms and conditions upon which such franchise is proposed to be granted, that copies of the proposed franchise may be obtained at the office of the City Clerk, fixing and setting forth a day, hour and place certain when and where any persons having any interest therein or objection to the granting thereof may file written protest and appear before the Council and be ~heard; and directing the City Clerk to publish said resolution at least once within ten (10) days of the passage thereof, in a newspaper of general circulation within the City. At the time set for the hearing, or an adjournment thereof, the Council shall proceed to hear all written protests. Thereafter, the Council shall make one of the following determinations: 1. That such franchise be denied; or 2. That such franchise be granted upon the terms and conditions as specified in the resolution of intention to grant the same; or 3. That such franchise be granted but upon terms and conditions different from those specified in the resolution of intention to grant the same. If the Council shall determine that a franchise be granted, such determin- ation shall be expressed by ordinance granting a franchise to the applicant. If the Council shall determine upon granting a franchise upon terms and conditions different from those specified in the resolution of intention to consider granting the same, then such determination shall be expressed by resolution adopted prior to granting a franchise by ordinance. -15- SECTION 8 - FRANCHISE EXTENSION OR RENEWAL Any franchise granted under this Ordinance may be extended or renewed by the Council, and the Council shall proceed in accordance with the provisions of this Ordinance to determine the terms and conditions upon which said extension or renewal may be granted; provided, however, that the Council may, at its option, waive compliance with any or all of the requirements of Section 7 hereof. SECTION 9 - FAITHFUL PERFORMANCE BOND (a) The Grantee shall, concurrently with the filing of and acceptance of award of any franchise granted under this Ordinance, file with the City Clerk and at all times thereafter maintain in full force and effect for the term of such franchise or any renewal thereof, at Grantee's sole expense, a corporate surety bond in a company and in a form approved by the City Attorney, in the amount of not less than Fifty Thousand Dollars ($50,000) renewable annually, and conditioned upon the faithful performance of Grantee and upon the further condition that in the event Grantee shall fail to comply with any one or more of the provisions of this Ordinance, or of any franchise issued to the Grantee of the provisions of this Ordinance, or of any franchise issued to the Grantee hereunder, there shall be recoverable jointly and severally from the principal and surety of such bond, any damages or loss suffered by the City as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the Grantee as prescribed herebywhich may be in default, plus a reasonable allowance for attorney's fees and costs, up to the full amount of the bond; said condition to be a continuing obligation for the duration of such franchise and any renewal thereof and there- after until the Grantee has liquidated all of its obligations with the City that may have arisen from the acceptance of such franchise or renewal by the Grantee or from its exercise of any privilege therein granted. The bond shall provide -16- that thirty (30) days prior written notice of intention not to renew, cancellation or material change, be given to the City. (b) Neither the provisions of this Section nor any bond accepted by the City pursuant hereto, nor any damages recovered by the City thereunder, shall be construed to excuse faithful performance of 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. SECTION 10 - INDEMNIFICATION OF CITY (a) The Grantee shall, concurrently with the filing of an acceptance of award of any franchise granted under this Ordinance, furnish to the City and 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 liability insurance policy in an amount established by the City Council of not less than One Hundred Thousand Dollars ($100,000) or more than Five Million Dollars ($5,000,000) (except that City may increase or decrease said amount upon survey of the exposures by qualified insurance representatives) in a company approved by the City Manager and in a form satisfactory to the City Attorney, indemnifying and saving harmless the City, its officers and employees from and against any and all claims, demands, actions, suits and proceedings by others, against all liability to others, including but not limited to any liability for damages by reason of or arising out of any failure by the Grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the Grantee's CATV system and against any loss, cost, expense and damages resulting therefrom, including reasonable attorney's fees, arising out of the exercise or enjoyment of its franchise, irrespective of the amount of the comprehensive liability insurance policy required hereunder. -17- (b) The Grantee shall, concurrently with the filing of an acceptance of award of any franchise granted under this Ordinance, furnish to the City and 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, commissions, agents and employees in a company approved by the City Manager and a form satisfactory to the City Attorney, protecting the City and all persons against liability for loss or damage for personal injury, death and property damage, oocasioned by the operations of Grantee under such franchise with minimum liability limits of Five Hundred Thousand Dollars ($500,000) for personal injury or death of any one person and One Million Dollars ($1,000,000) for personal injury or death of two or more persons in any occurrence; and not less than Five Hundred Thousand Dollars ($500,000) for damage to property resulting from any one occurrence. City may increase or decrease said amounts upon survey of the exposures by qualified insurance representatives. (c) The policies mentioned in the foregoing paragraph shall name the~City, its officers, boards, commissions, agents and employees as additional insureds and shall contain a provision that a written notice of cancellation or reduction in coverage of said policy shall be delivered to the City, twenty (20) days in advance of the effective date thereof; if such insurance is provided by a policy which also covers Grantee or any other entity or person other than those above named, then such policy shall contain ~he standard cross-liability endorsement. (d) Grantee shall, at the sole risk and expense of Grantee, upon demand of the City, made by and through the City Attorney, appear in and defend any and all suits, actions or other legal proceedings whether judicial, quasi-judicial, administrative, legislative or otherwise, brought or instituted or had by third persons or duly constituted authorities, against or affecting the City, its officers, boards, commissions, agents or employees and arising out of or I[ ' ' -18- pertaining to the exercise or the enjoyment of such franchise or the granting thereof by the City. Grantee shall pay and satisfy and shall cause to be paid and satisfied any judgment, decree, order, directive or demand rendered, made or issued against Grantee, the City, its officers, boards, commissions, agents or employees in any of these premises; and such indemnity shall exist and continue without reference to or limitation by the amount of any bond, policy or insurance, deposit, undertaking or other assurance required hereunder, or otherwise; provided that neither Grantee nor City shall make or enter into any compromise or settlement of a claim, demand, cause of action, suit or other proceeding without first obtaining a written consent of the other. SECTION 11 - INSPECTION OF PROPERTY 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. If any such maps or records are not kept in the City, or upon reasonable request made available to the City, and if the Council shall determine that an examination thereof is necessary or appropriate, then all travel and maintenance expense necessarily incurred in making such examination shall be paid by the Grantee. (b) The Grantee shall prepare and furnish to the Director of Public Services and the City Clerk at the times and in the form prescribed by either of said officers such reports with respect to its operations, affairs, transactions of property as may be reasonably necessary or appropriate to the performan~ce of any of the rights, functions or duties of the City or any of its officers in connection with the franchise. -19- (c) The Grantee shall at all times make and keep in the City full and complete plans and records showing the exact location of all CATV system equipment installed or in use in streets and other public places in the City. (d) The Grantee, upon request of the Director of Public Services, shall submit a current map or set of maps drawn to scale, showing all CATV system equipment installed and in place in streets and other public places of the City. SECTION 12 - ACCEPTANCE OF THE FRANCHISE (a) No franchise granted under this Ordinance shall become effective for any purpose unless and until written acceptance thereof shall have been filed with the City Clerk. Written acceptance, which shall be in the form and substance approved by the City Attorney, shall also be and operate as an acceptance of each and every term and condition and limitation contained in this Ordinance or in such franchise or otherwise specified as herein provided. (b) The written acceptance shall be filed by the Grantee not later than 12:01 o'clock p.m., on the fortieth (40th) day next following the effective date of the ordinance granting such franchise. (c) In default of the filing of such written acceptance as herein required, the Grantee shall be deemed to have rejected and repudiated the franchise. Thereafter, the acceptance of the Grantee shall not be received nor filed by the City Clerk. The Grantee shall have no rights, remedies or redress in the premises unless and until the Council, by resolution, shall determine that such acceptance be received or filed and then upon such terms and conditions as the Council may impose. (d) In any case, and in any instance, all rights, remedies and redress in these premises which may or shall be available to the City, shall at all times be available to the City and shall be preserved and maintained and shall -20- continuously exist in and to the City and shall not be in any manner or means modified, adridged, altered, restricted or impaired by reason of any of these premises or otherwise. (e) Any franchise granted and accepted under this Ordinance shall be in lieu of any and all other rights, privileges, powers, immunities and authorities owned, possessed, controlled or exercisable by the Grantee pertaining to the construction, operation and maintenance of cable television systems in the City. SECTION 13 - LIMITATIONS OF FRANCHISE (a) Every franchise granted under this Ordinance shall be non-exclusive. (b) No privilege or exemption shall be granted or conferred by any franchise granted under this Ordinance except those specifically prescribed herein. (c) Any privilege claimed under such franchise by the Grantee in any street or other public property shall be subordinate to any prior lawful occupancy of the streets or other public property. (d) 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, l~eased, assigned or disposed of in whole or in part, either by forced or involuntary sale or by voluntary sale, merger, consolidation or otherwise, without prior consent of the Council, expressed by resolution, and then only under such conditions as may therein be prescribed. Any such transfer or assignment shall be made only by an instrument in writing such a bill or sale or similar document, 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 assignment. The said consent of the Council may not be unreasonably refused; provided, however, the proposed assignee must show financial responsibility as determined by the Council and must agree to comply with all provisions of this Ordinance; and provided further, that no such consent shall be required for a transfer in trust, mortgage or other hypothecation, in whole or in part, to secure -21- an indebtedness except that when such hypothecation shall exceed fifty percent (50%) of the market value of the property used by the Grantee in the conduct of the cable television system, prior consent of the Council shall be required for such a transfer. Such consent shall not be unreasonably withheld. In the event that Grantee is a corporation, prior approval of the City Council, expressed by ordinance, shall be required where there is an actual change in control or where ownership of more than fifty percent (50%) of the voting stock of Grantee is acquired by a person or group of persons acting in concert, none of whom already own fifty percent (50%) or more of the voting stock, singly or collectively. Any such acquisition occurring without prior approval of the City Council shall constitute a failure to comply with a provision of this Ordinance within the meaning of Section 5 of this Ordinance. (e) Time shall be of the essence of any such franchise granted hereunder. The Grantee shall not be relieved of his obilgation to comply promptly with any of the provisions of this Ordinance by any failure of the City to enforce prompt compliance. (f) Any right or power in or duty impressed upon any officer, employee, depart- ment or board of the City shall be subject to transfer by the City to any other officer, employee, department or board of the City. (g) The Grantee shall have no recourse whatsoever against the City for any loss, cost, expense or damage arising out of any provision or requirement of this Ordinance or of any franchise issued hereunder or because of its enforcement. !{h) The Grantee shall be subject to all requirements of City laws, rules, regulations and specifications heretofore or hereafter enacted or established. (i) Any such franchise granted shall not relieve the Grantee of any obligations involved in obtaining pole or conduit space from any department of the City, utility company or from others maintaining utilities in streets. -22- (j) 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 television 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, all construction, operation and maintenance by any Grantee of any cable television system in the City shall be; and shall be deemed and construed in all instances and respects to be under and pursuant to said franchise and not under or pursuant to any other right, privilege, power, immunity or authority whatsoever. SECTION 14 - 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 the Grantee either by purchase or through the exercise of the right of eminent domain, at a fair and just value and nothing herein contained shall be construed to contract away or to modify or abridge whether for a term or in perpetuity, the City's right of eminent domain. (b) There is hereby reserved to the City every right and power which is required to be herein reserved or provided by any law and the Grantee, by its acceptance of the franchise, agrees to be bound thereby and to comply with any action or requirements of the City in its exercise of such rights or powers heretofore or hereafter enacted or established. (c) There is hereby reserved to the City the power to amend any section of this Ordinance so as to require additional and greater standards of construction, operation, maintenance or otherwise on the part of the Grantee to reflect -23- techincal and economic changes occurring during the franchise term and to enable the City and the Grantee to take advantage of new developments in the cable television industry so as to more effectively, efficiently and economically serve the public. (d) Neither the granting of any franchise nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City. (e) The Council may do all things which are necessary and convenient in the exercise of its jurisdiction under this Ordinance and may determine any question of fact which may arise during the existence of any franchise granted hereunder. The Chief Administrative Officer, with the approval of the City Attorney, is hereby authorized and empowered to adjust, settle or compromise any controvesy or charge arising from the operations of Grantee under this Ordinance, either on behalf of the City, the Grantee or any subscriber in the best interest of the public. Either the Grantee or any member of the public who may be dissatisfied with the decision of the Chief Administrative Officer may appeal the matter to the Council for hearing and determination. The Council may accept, reject or modify the decision of the Chief Administrative Officer and the Council may adjust, settle or compromise any Controversy or cancel any charge arising from the operations of the Grantee or from any provision of this Ordinance. SECTION 15 - COUNCIL TO ADOPT RULES AND REGULATIONS (a) Standards of Operation: 1. The Council may adopt rules, regulations and standards governing the operation of cable television systems in the City. Such rules, regulations and standards shall apply to and shall govern the operations of the Grantee of any franchise hereunder and are expressly declared a part of any franchise hereunder. 24 e e The standards adopted shall govern the engineering, construction, installation, service and maintenance of all cable television systems in the City, including but not limited to standards governing carrier levels, signal-to-noise ratios, hum modulation, distortion levels, channel interactions and interreactions. Provided the same do not materially alter the content of the franchise without consent of the Grantee, the Council may at any time adopt new rules or regulations or standards or may amend, modify, delete or otherwise change its respective rules or regulations or standards previously adopted in the following manner: The Council shall pass its resolution of intention stating or describing the rules or regulations or standards to be adopted, amended, modified, deleted or otherwise changed and fixing and setting forth a day, hour and place certain when and where any persons having any interest therein or objection thereto may appear before the Council and be heard. Such resolu- tion shall direct the City Clerk to publish the same at least once within ten (10) days of the passage thereof in a newspaper of general circulation within the City and to mail a copy of the same to any Grantee or applicant for a franchise not more than thirty (30) days nor less than fifteen (15) days prior to the time fixed for hearing thereon. At the time set for such hearing or at any adjournment thereof, the Council shall proceed to hear and pass upon such comments as may be presented. Thereafter, the Council, by its resolution, may adopt, amend, modify, delete or otherwise change its respective rules, regulations and standards. Such determination by the Council shall be final and conclusive. -25- Any rule or regulation or standard as adopted, amended, modified, deleted or otherwise changed by the Council shall become effective upon the tenth (lOth) day following the adoption of such resolution, unless a longer period shall otherwise be provided in such resolution. (b) Rates 1. Prior to granting any franchise hereunder, the Council, by resolution, shall establish and fix all rates and charges for the basic service herein defined allowable to Grantee such as: (i) Charges for installation, relocation and reconnection. (ii) Subscribe service rates. (iii) Service charges for separate classifications of service (e.g., additional connections, etc.). (iv) Hotel, motel, multiple dwelling buildings. (v) Deposits and monthly service fees applicable to basic service converters. In the case that the franchise award is a renewal of extension of the franchise to a current holder, then the rates, charges or deposit amounts for the service or converters noted above shall remain the same as those established by the most recent Council action affecting same. 2. Following any time period set by Council resolution, if applicable, stating the period for which rates shall not change, the following procedure for future rate adjustments shall be applicable: (i) Grantee shall file a notice of intention to adjust basic service rates and charges forty-five (45) days prior to the proposed effective date for the new rates. The proposed rates shall not increase above the existing rates by an amount in excess of seventy-five percent (75%) of the percentage increase in the -26- CPI occurring since the previous rate adjustment. (I.D.C.P.I. - San Francisco-Oakland Consumer Price Index, Urban Wage Earner and Clerical Worker, published bi-monthly by the United States Bureau of Labor Statistics). At the time of notification, the most recent available CPI statistics will be compared with the CPI statistics utilized in computing the existing rate. Adjustments under this provision shall not be made more than once annually. Should more than twelve (12) months elapse between adjustments, then Grantee shall be entitled to a rate adjustment equivalent to not more than seventy-five percent (75%) of the C.P.I. increase since the last rate was established between the C.P.I. statistic available forty-five (45) days prior to the proposed effective date of the increase. (ii) An increase in subscriber rates and service within the limits of (i) shall be persumptively assumed to be permissible and justifi- able unless it has been previously determined by Council resolution that the Grantee is not performing in accordance with the provisions of this and other applicable ordinances or resolutions pertaining to its cable television franchise. (iii) The Chief Administrative Officer shall review the notice of intention and determine, within ten (10) days, whether the proposed rate increase is within the limits of the seventy-five percent (75%) of said C.P.I. increase and endorse thereon his determi nati on. (iv) The Chief Administrative Officer shall file with the City Council a copy of the notice of the intention together with his determin- ation regarding the C.P.I. percentage increase. -27- (v) If the City Council shall not determine, within thirty (30) days of the determination by the Chief Administrative Officer, that the notice of intention requires review, then the new rates shall become effective on the appropriate date. (vi) Grantee may seek rate adjustments in excess of an amount indicated by (i) above by way of the public hearing/Council action process. An increase in excess of the seventy-five percent (75%) of the C.P.I. increase formula may be justifiable if business expense of Grantee were severely impacted by Council action (as in Section 10 or Section 11(a) (3)) or other changes in governmental regulations (whether local, state or federal) which require extensive additional capital or operating expenditures or an agreed upon increase in the level of service. 3. The City Council may, at any time, set a hearing for the purpose of reviewing and adjusting said rates and charges upon written notice to the Grantee and publication thereof thirty (30) days prior to said hearing. 4. Rates and charges for "Optional Services" shall be established by Grantee and shall not be subject to the provision of this Section. (c) If copyright liability is imposed by any court with jurisdiction thereof or by the Congress, Grantee shall have the right to increase its rates for affected subscriber services to offset such copyright liability. Any increase in the rate schedule because of the imposition of copyright liability shall be limited to the actual amount of liability imposed by a court having jurisdiction thereof or by the Congress. If such copyright liability is imposed by a court with jurisdiction thereof or by the Congress, Grantee shall file notice thereof with City's Director of Finance together with supporting evidence. City's Chief Administrative Officer shall verify the amount of the copyright liability so imposed and upon making -28- said verification, issue an approval to increase the rates in said sum, same to be effective thirty (30) days after notice of the rate increase is issued to subscribers stating the amount of the monthly increase. SECTION 16 - PERMITS AND~CONSTRUCTION (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, including but not limited to, any utility joint use attachment agreements, microwave carrier licenses and any Other permits, licenses and authorizations to be granted by duly constituted regulatory agencies having jurisdiction over the operation of cable television systems or associated microwave transmission facilities. In connection therewith, copies of all petitions, applications and communica- tions submitted by the Grantee to the Federal Communications Commission, Securities and Exchange Commission or any other federal or state regulatory commission or agency having jurisdiction in respect to any matters affecting Grantee's cable television operations, shall also be submitted simultaneously to the Chief Administrative Officer. (b) Within ninety (90) days after obtaining all necessary permits, licenses and authorizations, including right of access to poles and conduits, Grantee shall commence construction and installation of the cable television system. (c) Within one hundred eighty (180) days after the commencement of construction ~nd installation of the system, Grantee shall proceed to render service to subscribers and the completion of the installation and construction shall be pursued with reasonable diligence thereafter so that service to all of the areas designated and scheduled on the map and plan of construction made part of the franchise, shall be provided as set forth therein. -29- (d) Failure on the part of the Grantee to commence and diligently pursue each of the foregoing requirements and to complete each of the matters set forth herein, shall be grounds for termination of such franchise. By resolution, the Council 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, experience delays by reason of circumstances beyond his control. (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 property or on privately owned property unless and until first securing the written approval of the Director of Public Services. Whenever Grantee shall not utilize existing poles, conduits and other facilities or whenever existing conduits and other facilities shall be located beneath the surface of the streets or whenever the City shall undertake a program designed to cause all conduits and other facilities to be located beneath the surface of the streets in any area or throughout the City in the exercise of its police power or pursuant to the terms hereof, upon reasonable notice to Grantee, any such conduits or other facilities of Grantee shall be constructed, installed, placed or replaced beneath the surface of the street. Any construction, installa- tion, placement, replacement or changes which may be so required shall be made at the expense of Grantee, whose costs shall be determined as in the case of public utilities. (f) The City shall have the right, at its expense, to make additional use for any public or municipal purpose whether governmental or proprietary, or any poles, conduits or similar other facilities erected, controlled or maintained exclusively by or for Grantee in any street provided such use by City does not interfere with the use by Grantee. -30- (g) In those areas of the City where the transmission or distribution facilities of all of the respective public utilities providing telephone, communication and electric services are underground, or hereafter are placed underground, the Grantee likewise shall construct, operate and maintain his transmission and distribution facilities underground. The term "underground" shall include a partial underground system; provided that upon obtaining the written approval of the Director of Public Services, amplifiers in the Grantee's transmission and distribution lines may be placed in appropriate housings upon the surface of the ground. (h) The Grantee, at his expense, shall protect, support, temporarily disconnect, relocate or remove any property of Grantee when, in the opinion of the Director of Public Services the same is required by reason of traffic conditions, public safety, street vacation, freeway or street construction, change or establishment of street grade, installation of sewer drains, water- pipes, power line, signal line, transportation facilities, tracks or any other types of structure or improvements by governmental agencies, whether acting in a governmental or a proprietary capacity, or any other Structure or public improvement, including but not limited to movement of buildings, urban renewal and redevelopment, and any general program under which the City shall undertake to cause all such property to be located beneath the surface of the ground. The Grantee shall, in all cases, have the privilege, subject to the corresponding obligations, to abandon any property of Grantee in place as herein provided. Nothing hereunder shall be deemed a taking of the property of Grantee and Grantee shall be entitled to no surcharge by reason of anything hereunder. (i) Upon the failure, refusal or neglect of Grantee to cause any work or other act required by law or hereunder to be properly completed in, on, over or under any street within any time prescribed therefore or upon notice given, -31- where no time is prescribed, the Director of Public Services may cause such work or other act to be completed in whole or in part and upon so doing, shall submit to Grantee an itemized statement of the costs thereof. The Grantee shall, within thirty (30) days after receipt of such statement, pay to the City the entire amount thereof. (j) In the event that: 1. The use of any part of the system of Grantee is discontinued for any reason for the continuous period of thirty (30) days without prior written notice to and approval by the City; or 2.Any part of such system has been installed in any street or other area without complying with the requirements hereof; or 3.Any franchise shall be terminated, cancelled or shall expire; then theGrantee shall, at the option of the Director of Public Services and at the expense of Grantee and at no expense to the City, and upon demand of the Director of Public Services, promptly remove from any street or other area all property of Grantee and Grantee shall promptly restore the street or other area from which such property has been removed to such condition as the Director of Public Services shall approve. The Director of Public Services may, upon written application therefor by Grantee, approve the abandonment of any such property in place by Grantee and under such terms and conditions as he may prescribe. Upon abandonment of any such property in place, Grantee shall cause to be executed, acknowledged and delivered to the Director of Public Services such instruments as the City Attorney shall prescribe and approve transferring and conveying the ownership of such property to the City. SECTION 17 - MISCELLANEOUS PROVISIONS (a) A franchise granted to provide service within the City shall authorize -32- and permit the Grantee to solicit, sell, distribute and make a charge to subscribers within the City for connection to the cable television system of Grantee and shall also authorize and permit the Grantee to traverse any portion of the City in order to provide service outside the City. (b) A franchise easement, license or other permit granted to anyone other than the Grantee to traverse any portion of the City in order to provide service outside the City shall not authorize nor permit said person to solicit sell, distribute or make any charge to subscribers within the City nor to render any service or connect any subscriber within the City to the cable television service system of Grantee. (c) Grantee shall be subject to all provisions of the other ordinances, rules, regulations and specifications of the City heretofore or hereafter adopted, including but not limited to those pertaining to works and activities on, over, under and about streets. Any privilege claimed under any franchise granted pursuant to this Ordinance in any street or other public property shall be subordinate to any prior lawful occupancy of the streets or other public property. Grantee shall also be subject to the provisions of general laws of the State of California, as hereafter amended, when applicable to the exercise of any privilege contained in any franchise granted under this Ordinance, including but not limited to those pertaining to works and activities in and about State Highways. (d) Grantee shall be prohibited from directly or indirectly doing any of the following: 1. Engaging in the busi~ness of selling at retail, leasing, renting, repairing or servicing television sets or radios. 2. Imposing a fee o~ charge for any service or repair to subscriber- owned receiving devices except for the connection of its service. -33- 3. Soliciting, referring or causing or permitting the solicitation or referral of any subsCriber to persons engaged in any business herein prohibited to be engaged in by Grantee. 4. Providing information concerning the viewing patterns of ~dentifiable individual subscribers to any person, group or organization for any purpose. (e) If the Federal Communications Commission or the Public Utilities Commission of the State of California or any other federal or state body or agency shall now or hereafter exercise any paramount jurisdiction over the subject matter of any franchise granted under this Ordinance, then to She extent such juris- diction shall preempt or preclude the exercise of like jurisdiction by the City, the jurisdiction of the City shall cease and no longer exist. The preemption or preclusion of the exercise by the City of any of its police power shall not diminish, impair, alter or affect any contractual benefit to the City or Grantee nor any contractual obligation of the Grantee under any franchise issued hereunder. Any and all minimum standards governing the operation of Grantee and any and all maximum rates, ratios and charges specified herein or in any franchise issued hereunder, existing now or at any time in the future, including such times as any paramount jurisdiction shall preempt or preclude that of the City, and any and all rights, powers, privileges and authorities of the City to determine, establish or fix any of the same are each and all hereby declared by the City and by any Grantee accepting any franchise hereunder to be contractual in nature and to be for the benefit of the City. (f) When not otherwise prescribed herein, all matters herein required to be filed with the City shall be filed with the City Clerk. -34- (g) No person, firmor corporation within the service area of the Grantee and where trunk lines are in place, shall be refused service; provided, however, that the Grantee shall not be required to provide service to any subscriber who does not pay the applicable connection fee, service charge or previous deliquent balances. (h) In those existing developed areas and portions of the City where construction of cable television and distribution facilities were not required by the original franchise and in areas and portions of the City which were or are developed subsequent to the grant of the original franchise, the Grantee shall extend the cable television and distribution facilities under the terms and conditions of the Line Extension Policy, a copy of which is attached hereto as Exhibit A. SECTION 18 - EQUAL EMPLOYMENT OPPORTINITY AND AFFIRMATIVE ACTION PLAN In 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, color, sex, national origin, marital status, ancestry, age, political or religious opinion or affiliation, or non- related physical and/or mental handicap. 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 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 employees and applicants for employment, notices setting forth the provisions of this non- discrimination clause. -35- 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, color, sex, national origin, marital status, ancestry, age, political or religious opinion or affilia- tion, or non-related physical and/or mental handicap. SECTION 19 - VIOLATIONS (a) From and after the effective date of this Ordinance, it shall be unlawful for any person, firm or corporation 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 owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the City, or any equipment or facilities for distributing any television signals or radio signals through a cable television system, unless a franchise authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this Ordinance and unless such franchise is in full force and effect. (b) It shall be unlawful for any person to make or use any unauthorized connection whether physically, electrically, acoustically, inductively or otherwise with any part of a franchised cable television system within this City for the purpose of enabling himself or others to receive, use or intercept any television or radio signal, picture or sound or other service provided by Grantee, without payment to the owner of said system. (c) It shall be unlawful for any person, without the consent of the owner, to willfully attach to, tamper with, remove or injure any cables, wires or equip- ment used for distribution of television signals, radio signals, pictures, program or sound or other services provided by Grantee. 1. The City of South San Francisco recognizes the applicability of Section 1-5930, or succeeding Sections of the California Penal -36- Code, as it pertains to the theft of basic and premium cable TV services. 2. The City of South San Francisco recognizes the applicability of Section 484 or succeeding sections of the California Penal Code, as it pertains to the theft of descramblers or convertors. In part, the Section reads: "Every person...who shall fraudulently appropriate property which has been entrusted in him...intent to commit theft by fraud is presumed if one who has leased or rented the personal property of another pursuant to a written contract fails to return the personal property to its owner within twenty (20) days after the owner has made written demand." SECTION 20 - SEVERABILITY If any section, subsection, sentence, clause or phrase of this Ordinance is, for any reason, held illegal, invalid or unconstitutional by the decision of any court or competent jurisdiction, such decision shall not affect the validity of the remaining portions hereof. The Council hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared illegal, invalid or unconstitutional. The invalidity of any portion of this Ordinance shall not abate, reduce or otherwise affect any consideration or other obligation required of the Grantee of any franchise granted hereunder. SECTION 21 - REPEAL OF ORDINANCE No. 547. Ordinance No. 547, entitled "An Ordinance of the City of South San Francisco Providing for the Granting of Franchises for Community Antenna Television Systems; Providing Terms and Conditions for the Operation of Such Community Antenna Television Systems and Fees Therefor" adopted June 6, 1966, is hereby repealed. -37- · ( ¢ SECTION 22 - PUBLICATION AND EFFECTIVE DATE This Ordinance shall be published once, as required by law, in the "Enterprise- Journal," a newspaper of general circulation published in the City of South San Francisco and shall take affect and be in force thirty (30) days from and after its passage. Introduced this 6th day of August , 1980. Passed and adopted as an ordinance of the City of South San Francisco at a regular meeting of the City Council of the City of South San Francisco this ~Nth day of AU§U~t 1980, by the following vote: AYES: Councilmen Ronald G. Acosta, Mark N. Addi~go~ Fman-~l~ N, namonte, Gus Nicolopulos; and Counrtlwoman Robprta C~rrt Tpglia NOES: None ABSENT: None ATTEST: ~Ci ty~C1 ~ Ordinance this 20th day of August As Mayor of the City of South San Francisco, I do hereby approve the foregoing , 1980. Mayor -38- EXHIBIT A LINE EXTENSION POLICY Existing Developed Areas Ae Whenever Grantee shall receive a request for service from at least ten (10) residents within 1,320 cable feet of its existing trunk cable and those residents do subscribe for such service, Grantee shall extend the cable system to provide that service at no cost to the subscribers for the extension, other than the usual installation and connection fee applicable to all subscribers, provided that such construction is not required to be placed underground. Be No person, firm or corporation in Grantee's service area shall be arbitrarily refused service. However, in consideration of the capital costs involved and the benefits accruing only to the local individual subscriber or subscribers rather than to all subscribers in the service area, unusual costs such as require- ments for undergrojnd construction of the system or of service connections, or a density of less than ten (10) subscribers per 1,320 feet of extension, or more than 150 feet of aerial service connection, service may be made available on the basis of the applicable costs of materials, labor and easements. Grantee shall prepare a written agreement specifying the work to be done and the amount to be paid by the person(s), firm or corporation requesting the service and that amount shall be paid to Grantee before any consideration of the extension is required to begin. In the event that underground construction is requested or required, the cost paid to Grantee shall be the amount that the actual construction costs exceed the estimated costs of standard overhead construction to provide the equivalent service. In the event that the requests for service is made by less than ten (10) subscribers per 1,320 feet of extension, the (additional) costs paid to Grantee shall be one hundred percent (100%) of the construction costs less a credit of ten percent (10%) for each participating subscriber, not to exceed a total credit of one hundred percent (100%). However, if additional subscribers are subsequently provided service, they shall pay their proportionate share of the original extension costs and the initial/existing subscriber shall be entitled to rebates in a means provided for in their written agree- ment with Grantee. II. New Developments Extension of the system to furnish the service within a new single- family and/or multi-family residential developments will be made by Iii' i ~ Grantee in advance of receipt for request for service in accordance with the following provisions: A. General Grantee will construct, own, operate and maintain an under- ground cable television distribution system only along public streets, roads and highways which Grantee has the legal right to occupy, and on public lands and private property across which rights-of-way and easements satisfactory to Grantee may be obtained without cost to Grantee. B. Installation Grantee will install the cable television distribution system in trench, conduit and substructure provided by, or at the cost of, the developer of the subdivision or development according to City standards and the technical requirements of the cable television distribution system. 2. Grantee will complete at its own expense: ao The installation of the distribution cables, amplifiers and all other equipment necessary for the construction and operation of the underground distribution system, as described in II A above. Underground service connections will be made on the basis of the actual costs of time and materials. That portion of the system extension which may extend beyond the boundaries of the subdivision or development to the existing distribution system main trunk cable that is not excess of 200 feet. That portion of the required extension of the system in excess of 200 feet outside the boundaries of the subdivision or development will be constructed underground or overhead as is required by the City of South San Francisco Rules and Regulations applicable to CATV and will be charged to the developer according to the provisions of C below. C. Advances by the Developer The developer shall pay or shall promise to pay to Grantee before the start of construction, the cost of extending the system beyond the boundaries of the subdivision or development, to the existing system main trunk cable of the distribution system to the extent that such extension is in excess of 200 feet from said main trunk cable. 2. Extension of the system in excess of 200 feet will require a written agreement specifying the terms under which Grantee will -2- install the extension and that the developer will pay the costs. These costs are intended to be non-refundable. However, it is recognized that extensions made might later be used to provide service to other subscribers along that extension or to other subscribers of future or existing development beyond the subject subdivision or development. Therefore, the refundable status of the costs paid by the developer, for the extensions of the system beyond the boundaries of the subdivision or development in excess of 200 feet, shall be stated on the written agreement between Grantee and the developer. -3-