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HomeMy WebLinkAboutO-1284ORDINANCE NO. 1284 CABLE TELEVISION SYSTEM FRANCHISE AGREEMENT ESTABLISHING A UNIFORM CITY OF FAIRHOPE CABLE TELEVISION FRANCHISE AGREEMENT. WHEREAS, Ala. Code §11-43-62 authorizes and empowers the City of Fairhope (herein after referred to as the City) to grant, by resolution or ordinance, franchises for the installation of poles or conduits within the boundary lines of public roads, highways or rights of way for the operation of community antenna television facilities within incorporated areas of City of Fairhope and the police jurisdiction of the City if allowed by law, which franchises may be conditioned upon reasonable rules and regulations: and WHEREAS, the City has previously granted a number of franchises to several persons and entities, in varying form and subject to various conditions; and WHERAS, the City believes that it is in the best interests of the citizens of City of Fairhope for the City to grant uniform franchises for the installation of poles or conduits within the boundary lines of public roads, highways or rights of way for the operation of community antenna television facilities within the incorporated areas of City of Fairhope and within the police jurisdiction if allowed by law, to make reasonable rules and regulations governing the granting of such franchises are to be conditioned and to levy and collect a franchise fee on the gross revenue derived within the areas covered by any such franchise, from any such community antenna television franchise holders; now therefore BE IT RESOLVED BY THE CITY Council OF FAIRHOPE, that the following rules and regulations governing the grant of franchises for the installation of poles or conduits within the boundary lines of public roads, highways or rights of way for the operation of community antenna television facilities within the incorporated areas of City of Fairhope and within the police jurisdiction if allowed by law, be and the same are hereby adopted, that all such franchises hereinafter granted by the City shall be conditioned upon such rules and regulations and that the franchise fee upon the gross revenue derived within the area covered by any such franchise set out in such rules and regulations be and the same is hereby levied upon each such franchise holder: DONE, This the 12TH day of December, 2005. Section 1 Section 1.1 Definitions.................................................................. 5 Section 1.2 Requirement for Franchise.........................................7 Section 1.3 Term of Franchise, Renewal.......................................7 Section 1.4 Enforcement of Franchise .......................................... 8 Section 1.5 Conflict with Laws......................................................9 Section 2 Section 2.1 Procedure for Granting Franchise ............................ 9 Section 3 Section 3.1 Construction and Installation...................................10 Section 3.2 Conditions for Use of Street or Roads......................11 Section 3.3 Operation and Maintenance.....................................13 Section 3.4 Obscene Programming.............................................14 Section3.5 Rates.........................................................................14 Section 3.6 Removal on Subscriber's Request ............................14 Section 3.7 Rights of Individuals Protected................................15 Section 3.8 Procedure for Remedying Franchise Violations ... ... 16 Section 4 Section 4.1 Franchise Fee...........................................................18 Section 4.2 Emergency Use of the Facilities/ Public Access...................................................19 Section 4.3 Performance and Payment Bonds ............................ 20 Section 4.4 Indemnification.........................................................20 Section 4.5 Books and Records of Grantee.................................21 Section 4.6 Rights Reserved to the City.......................................22 Section 4.7 Grantee Acknowledgment.........................................22 Section 5 Section 5.1 Sale or Lease of Franchise ................... Section 5.2 Revocation of Franchise ....................... Section 5.3 Rights upon Revocation or Non -Renewal ............................ Section 5.4 Removal and Abandonment of Property................................. Section 6 Section 6.1 Institutional network, access channels ... Section 6.2 Proof of Performance Testing ................ K Section 7 Section 7.1 General Technical Standards and Customer Service Practices .............................. 25 Section 7.2 Technical Standards ................................................. 26 Section 7.3 Test and Compliance Procedure .............................. 26 Section 7.4 Emergency Requirements ......................................... 26 Section 7.5 Programming Decisions...........................................26 Section 7.6 Cable System Office Hours and Telephone Availability ..................................... 26 Section 7.7 Installations, Outages and service Calls ................. 28 Section 7.8 Repairs and Interruptions.........................................30 Section 7.9 Communications Between Grantees And Subscribers.......................................................31 Section 7.10 Complaint log .......................................................... 33 Section 7.11 Lockout device......................................................... 34 Section 7.12 Periodic Subscriber Survey ..................................... 34 Section 7.13Line Extension Policy...............................................34 Section 7.14Mobility Limited Subscribers..................................34 Section 7.15 Customer Service Reporting Requirements...........................................................34 Section 7.16Dispute Resolution...................................................36 3 SECTION 1 Section 1.1 DEFINITIONS Unless otherwise specially provided, or unless clearly required by the context, the words and phrases defined in this section shall have the following meanings when used in this Resolution and franchise agreement: (1) BASIC CABLE SERVICE: Any service tier which includes the retransmission of local television broadcast signals, or as may be further defined by the rules and regulations of the Federal Communications Commission (2) CABLE ACT: collectively means the Cable Communications Policy Act of 1984, 47 U.S.C. 521 et seq., as amended by the Cable Television Consumer Protection and Competition Act of 1992, as amended by the Telecommunications Act of 1996, and as may be further amended or replaced. (3) CABLE TELEVISION SERVICE: Shall mean (1) the one-way transmission to subscribers of (i) video programming, or (ii) other programming service, and (2) subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service. (4) CATV or CABLE ANTENNA TELEVISION SYSTEM or COMMUNITY ANTENNA TELEVISION FACILITIES OR CABLE SYSTEM: Shall mean a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but such term does not include (A) a facility that serves only to retransmit the television signals of 1 or more television broadcast stations; (B) a facility that serves subscribers without using any public right-of-way; (C) a facility of a common carrier which is subject, in whole or in part, to the provisions of title II of the Communications Act of 1934, except that such facility shall be considered a cable system (other than for purposes of 47 U.S.C. section 541(c)) to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive -on -demand services; (D) an open video system that complies with 47 U.S.C. section 573; or (E) any facilities of any electric utility used solely for operating its electric utility system. (5) MAYOR: Shall mean the Mayor of the City of Fairhope (6) CHANNEL: Shall mean a portion of the electromagnetic frequency spectrum (or any other means of transmission, including but not limited to optical fibers) which is used in a cable system and which is capable of delivering a television channel. (7) COUNCIL: Shall mean the City Council of Fairhope, the governing body of City of Fairhope, Alabama. (8) CITY: Shall mean City of Fairhope, Alabama, which is governed by the Fairhope City Council. C! (9) FCC: The Federal Communications Commission. (10) FRANCHISE: Shall mean the franchise granted under the provisions of the Code of Alabama 1975, as amended which authorizes the installation of poles or conduits within the boundary lines of public roads, highways or rights of way for the operation of community antenna television facilities within the incorporated and unincorporated areas of City of Fairhope. (11) GRANTEE: Shall mean has been granted by the City or anyone who succeeds in accordance with the provisions of the franchise. to whom a franchise (12) GROSS REVENUES: Shall mean all revenues received by the grantee and its subsidiaries, from or in connection with the operation of the cable antenna television system to provide cable antenna television services in the City of Fairhope pursuant to this franchise agreement, including, but not limited to, gross annual basic cable service receipts, gross annual premium channels receipts, pay -per -view programming receipts, video programming, game programming, any interactive fee receipts provided that the interactive services qualify as a cable antenna television service pursuant to applicable law, all other service receipts, gross annual advertising receipts allocable to the City of Fairhope based on a percentage of subscriber base in the City divided by the subscriber base of the cable antenna television system and such percentage will then be multiplied by the cable television systems' total advertising revenue to determine the allocable gross revenue stemming from advertising, gross annual receipts from use of leased access commercial channels, installation and reconnection fees, and converter and other equipment rentals, or other revenue in any way derived from the operation of the cable antenna television system to provide cable services, with no deduction allowed for the cost of property or services sold, the cost of materials, labor or services, or other expenses, or any deduction for losses or bad debt reserved. Gross Revenues shall not include: (1) any tax, fee, assessment or charge of any kind imposed by any governmental authority appearing as a separate line item on the subscriber statements and collected for direct pass -through to federal, state or local authorities; (2) refundable deposits collected from subscribers or any other person; (3) any item which the Grantee may itemize on subscriber statements pursuant to the Cable Act, as amended, including without limitation, costs associates with the provision of facilities and equipment for public, educational or governmental access (PEG) channels or the use thereof required of the Grantee under this franchise and any costs associated with any other franchise agreement or license requirements. (13) PERSON: Shall mean an individual, partnership, association, joint stock company, trust, corporation, or governmental entity. (14) SERVICEAREA: Shall mean the geographical area within City of Fairhope and within the police jurisdiction of the City of Fairhope if allowed by law and within which the Grantee is authorized to construct, operate and maintain a cable antenna television system under the franchise agreement. (15) STREET or ROAD: Shall mean the surface of and the space above and below any publicly owned or maintained property or right of way, street, road, highway, freeway, land, path, alley, court, sidewalk, parkway or drive, now or hereafter existing within City of Fairhope or its police jurisdiction if allowed by law. (16) SUBSCRIBER: Shall mean any person or entity lawfully receiving any portion of cable antenna television service of a Grantee pursuant to this resolution. Section 1.2 REQUIREMENT FOR FRANCHISE (a) No person shall engage in the construction, operation, or maintenance of a CATV system or provide CATV service in the City or the police jurisdiction if allowed by law unless such person or the person for whom such action is being taken shall hold a valid franchise granted by the City. (b) Any franchise granted by the City pursuant to these rules and regulations shall not be deemed to be an exclusive right of permission. The City expressly reserves the right to grant similar nonexclusive franchises to other persons. (c) In the event the City enters into a franchise, permit, license, authorization, or other agreement of any kind with any other person or entity other than the Grantee to enter into the City's Public Rights -of -way for the purpose of constructing or operating a cable system or providing cable service to any part of the City, the material provisions thereof shall be reasonably comparable to those contained herein, in order that one operator not be granted an unfair competitive advantage over another, and to provide all parties equal protection under the law. Section 1.3 TERM OF FRANCHISE, RENEWAL (a) The duration of a franchise agreement granted pursuant to this Resolution shall not be more than fifteen (15) years from its effective date. This Franchise will become effective on the date it is signed by the Mayor (the "Effective Date"), provided that all conditions precedent are satisfied. For all conditions precedent to be satisfied, the Grantee must accept this Agreement within thirty (30) days of its enactment by the City Council and publication of said Resolution in full once a week for three (3) consecutive weeks in one (1) or more newspapers of general circulation within the City at Grantee's sole cost and expense. Grantee's acceptance shall be in writing and by delivery of all payments, insurance certificates, bonds, applications, acceptance fees, and performance of all other requirements set forth in this Franchise and the Regulations. (b) Any proceedings undertaken that relate to the renewal of the Grantee's franchise shall be governed by and comply with the provisions of 47 U.S.C. Section 546 (Section 626 of the Cable Act), as amended, unless the procedures and substantive protections set forth therein shall be deemed to be preempted and superseded by the provisions of any subsequent provision of federal or state law. (c) In any proceeding under paragraph Section 1.3(b), above, the prospective Grantee shall be afforded adequate notice and the prospective Grantee and the City, or its designee, shall be afforded fair opportunity for full participation, including the right to introduce evidence, including evidence related to issues in 1.3 (b) of this section, to require the production of evidence, and to question witnesses. A transcript shall be made of any such proceeding and the cost of such will be borne solely by the Grantee. (d) At the completion of a proceeding under this subsection, the City shall issue a written decision granting or denying the proposal for renewal based upon the record of such proceeding, and transmit a copy of such decision to the prospective rel Grantee. Such decision shall state the reasons therefore. If the City denies renewal of the franchise, it shall issue findings of fact and conclusions of law setting forth the basis for denial. Procedures for renewal or denial of a franchise shall be in conformance with the Cable Act, as well as other applicable statues and due process requirements. Section 1.4 ENFORCMENT OF FRANCHISE (a) A Grantee shall not be excused from complying with any of the terms or conditions of the franchise by any failure of the City upon any one or more occasions to insist upon or to seek compliance with any such terms or conditions. Further, Grantee shall comply with the City Tree Ordinance, Right -of Way Ordinance all city ordinances, state laws and federal laws whether now existing or later enacted. (b) Whenever the City shall set forth any time for any action to be performed by or on behalf of Grantee, said time shall be deemed of the essence and any failure of Grantee to perform with in the time allotted shall be sufficient grounds for the City to revoke the franchise. (c) A Grantee agrees by filing an application for a franchise that they will not assert, at any time, in any claim or proceeding that any condition or term of the franchise is unreasonable, arbitrary or void or that the City had no power or authority to make such term or conditions, but shall be required to accept the validity of the terms and conditions of the franchise in their entirety. (d) Grantee shall not, as to rates, charges, service, service facilities, rules, regulations, or in any other respect make or grant any undue preference or advantage to any Person, nor subject any Person to prejudice or disadvantage. (e) All notices, reports, or demands required to be given in writing under this Franchise will be deemed to be given when delivered personally to the Person designated below, or when five (5) days have elapsed after it is deposited in United States mail in a sealed envelope, with registered or certified mail, postage prepaid thereon, or on the next business day if sent by express mail or overnight air courier addressed to the party to which notice is being given, as follows: If to the City: City Clerk and City Attorney City of Fairhope Post Office Drawer 429 Fairhope, AL 36533 If to Grantee: 7 Section 1.5 CONFLICT WITH LAWS (a) Whenever any law of the State of Alabama or of the United States, or of any agency of either, shall be in direct conflict with and supersede any provision of these rules and regulations, then for so longs as such state or federal law or regulation shall be in force and effect, any affected provisions of this franchise granted hereunder shall be suspended and be of no force and effect and the Grantee shall not be required to comply with such provision; however, the validity of the remaining portions or provisions shall not be affected thereby. In the event this franchise imposes burdens different than those imposed by any other law, but within the power of the City to impose said burdens, the more restrictive provision shall apply. (b) If any section, sentence, clause or phrase of these rules and regulations or of any franchise granted hereunder is held unconstitutional or otherwise invalid, such infirmity shall not affect the validity of the remaining portion of these rules and regulations or a of any franchise granted hereunder. Provided, however, that in the event that the FCC declares any section of the franchise invalid, then such section or sections shall be renegotiated by the City and the Grantee. SECTION 2 Section 2.1 PROCEDURE FOR GRANTING FRANCHISE (a) Any person desiring a franchise shall apply to the City for such a grant. The application for a franchise shall be in writing, in the form approved by and containing such information as required by the City and must be accompanied by a nonrefundable application fee of Five Thousand Dollars ($5,000.00) by cahier's check, certified check or money order payable to City of Fairhope. (b) Upon receipt of said franchise application, the City shall provide notice of said application and conduct a public hearing to determine if the grant of the franchise would be in the best interest of the citizens of City of Fairhope, considering the capability of the applicant, the proposed coverage of the service area, the effect on competition, whether the applicants owns other CATV systems or broadcast facilities, and other factors as the City deems relevant. (c) The application shall contain a statement under oath that the applicant will comply with all legal, financial and technical provisions of these rules and regulations and all requirements of the FCC and any other state or federal regulatory agencies. (d) The application shall define the proposed service area of the applicant with specific time standards for the establishment of service to suit the service area. SECTION 3 Section 3.1 CONSTRUCTION AND INSTALLATION (a) After receipt of an initial franchise, a Grantee shall proceed with due diligence, within sixty (60) days after receipt of the franchise, to obtain all necessary permits and authorizations which are required for construction and installation of the CATV System, within that area designated as the franchise service area, and the conduct of the Grantee's business. (b) Within ninety (90) days after obtaining all necessary permits and authorizations, Grantee shall begin the construction of the cable antenna television system and shall act with reasonable diligence so that it will accomplish significant construction of its cable antenna television system within one (1) year after commencement of construction. (c) Failure on the part of the Grantee to commence and diligently pursue construction of its cable antenna television system or failure to commence rendering service to the subscribers within one (1) year after the commencement of construction shall be grounds for termination of the franchise. The City may extend the time for the commencement and completion of construction and installation of service for additional periods in the event the Grantee, acting in good faith, experiences delays by reasons of circumstances beyond its control. (d) Grantee must file two (2) copies of a map, with the Office of the Mayor of the City of Fairhope on or before January 31" of each year showing the areas of the City being served by Grantee's cable antenna television system, said map being accurate as of the end of the calendar year immediately proceeding the date of filing. (e) Within the service area of a Grantee, whenever it shall receive a request for service from at least four subscribers within six hundred and sixty (660) feet to its energized cable, the Grantee shall extend such system to such subscribers at no cost to the subscribers for system extension other than the usual connect fees for all subscribers. The six hundred and sixty (660) feet shall be measured from the point where Grantee's energized trunk cable within a public right of way or easement is closest to the requesting subscriber's residence. Notwithstanding the provisions of this subsection, not extension shall be required if such extension shall be required if such extension would require addition of energized trunk cable to Grantee's existing plant. (f) The cable antenna television system shall be constructed and operated in accordance with all adopted City, state and national construction and electrical codes. Section 3.2 CONDITIONS FOR USE OF STREETS OR ROADS (a) All transmissions and distribution structures, lines and equipment erected by a Grantee within the City shall be located as to cause minimum interference with the proper use of streets, highways, and public rights -of -way, and to cause minimum interference with the rights and reasonable convenience of property owners who abut any of said streets, highways or public rights -of -way. No open trenching shall be allowed in developed areas without the prior written approval of the City. (b) Except when absolutely necessary to service a subscriber and not simply because it shall be more convenient, economical or profitable for a Grantee to so operate, and then only when expressly permitted in writing by the City under such conditions as it shall prescribe for the public welfare, a Grantee shall not erect or authorize or permit others to erect any poles or facilities within the streets, highways or public rights -of -way within the City for the conduct of its cable antenna television system but shall use the existing poles and other equipment of the appropriate electrical 9 power and telephone and other utility companies under such terms and agreements as Grantee negotiates with these companies. (c) No poles, cables, equipment or wires for the construction, maintenance and operation of the cable antenna television system shall be installed upon any public street, highway, easement or right-of-way within the City until the proposed location, specifications and manner of installation of such poles, cables, equipment or wires shall have been set forth upon a written plat or map which shall be submitted to the Mayor and approved by the Mayor. The Mayor shall be deemed to have given his approval if he does not notify the Grantee of his disapproval within forty-five (45) days of his receipt of such map or plat. (d) Whenever the State of Alabama, the City or other properly constituted authority shall require the relocation or re -installment of any property of any Grantee in any of its streets, highways or public rights -of -way within the City, it shall be the obligation of Grantee upon thirty (30) days written notice of such requirement to immediately remove and relocate or reinstall such property as may be reasonably necessary to meet the requirements of the State of Alabama, the City or such properly constituted authority. Such relocation, removal or reinstallation by a Grantee shall be at no charge or expense to the State of Alabama or the City or such properly constituted authority. (e) Whenever in any place within the City all electric and telephone utilities are located underground, it shall be the obligation of a Grantee to locate or to cause its property to be located underground in any place within the City after a Grantee shall have previously installed its property, nevertheless, a Grantee shall at the same time or immediately thereafter remove and relocate its property also underground, in such places. In areas of the City where utilities are underground, the Grantee may locate certain equipment above ground upon a showing of necessity to and receiving written authorization from the City. Facilities of a Grantee placed underground at the property owners request shall be installed at the additional expense of the property owner. (f) In case of disturbance of any street, road, highway, public right of way or utility easement within the City caused by Grantee, Grantee shall at its own cost and expense and in a manner approved by the State of Alabama, City or other properly constituted authority, place and restore such street, road, highway, public right-of-way or utility easement in as good condition as before the work involving such disturbance was done, all in accordance with standards, rules and regulations of the Alabama Department of Transportation, City or other properly constituted authority having jurisdiction over such highways, roads, streets, public rights -of -way and utility easement or any division thereof. (g) The Grantee shall, at its own expense, and after forty-eight (48) hours written notice thereof, protect, support, temporarily disconnect, relocate in the same street or other public place, any property of the grantee when required by the City or the Alabama Department of Transportation by reason of traffic conditions, public safety, street closing or abandonment, highway or street construction, change of establishment of street grade, or installation of sewers, drains, water pipes, power lines, signal lines or any other type of structures or improvements; and the City or the Alabama Department of Transportation by reason of traffic conditions, public safety, street closing or abandonment, highway or street construction, change of establishment of street grade, or installation of sewers, drains, water pipes, power lines, signal lines or any other type 10 of structures or improvements; and the City or the Alabama Department of Transportation shall not be liable for any disturbances of the Grantee's installation resulting therefrom. The Grantee shall carry out the instructions and directions of the City Engineer or the Alabama Department of Transportation District Engineer, whenever it is necessary to raise or remove any of the Grantee's wires or cables temporarily for the purpose of moving or removing a structure on the public highways, streets or roads of the City or of the State, respectively. The Grantee shall do such tree trimming or other maintenance work as shall be necessary to maintain its lines and cables and other property in good working order. All matters mentioned herein shall be performed at the Grantee's expense. (h) Grantee shall, on the request of any person holding a building moving permit issued by the City, temporarily raise or lower its wires to permit the moving of such building. The expense of such temporary removal or raising or lowering of the wires shall be paid by the person requesting the same and Grantee shall have the authority to require such payment in advance. Grantee shall be given not less than forty- eight (48) hours advance written notice to arrange for such temporary wire changes. In the event of a disagreement between a Grantee and a holder of a permit, such disagreement will be resolved by the City. (i) If at any time in case of fire or disaster within the City, it shall become necessary in the judgment of the Mayor, the Chief of Police of the City of Fairhope, the officer in charge of he Volunteer Fire Department, or other agency of the City to cut or move any of the wire cables, amplifiers, appliances or other fixtures of a Grantee, this may be done and the repairs thereby rendered necessary shall be made by the Grantee, at its own expense and without charge against the City, such Volunteer Fire Department, or City agency. 0) Grantee's work, while in progress, shall be properly executed at all times with suitable barricades, flags, lights, flares, or other devices as are reasonably required to protect all members of the public having occasion to use the portion of the streets involved, or adjacent property. Any opening or obstruction in the streets shall be guarded and protected at all times by the placement of adequate barriers, fences or boarding, the bounds of which shall be clearly designated by warning lights of approved types. (k) Grantee shall upon proper request locate lines within 48 hours of said request. If the request to locate lines involves an emergency, Grantee shall locate the lines immediately. Section 3.3 OPERATION AND MAINTENANCE (a) The Grantee shall install and maintain a cable antenna television system which shall be in accordance with standards delineated by the FCC to the end that the subscribers in the City shall receive high quality and reliable cable service. (b) The cable antenna television system shall be installed, operated and maintained in accordance with FCC rules and regulations and all other applicable laws, rules and regulations. In particular, the system shall be maintained at all times in compliance with FCC Technical Standards as set forth in Part 76 of the FCC Regulations or any amendments thereto which may subsequently be adopted. These shall be considered minimum technical standards and overall technical performance of 11 the system shall be assessed in relation to these minimum standards and the Grantee's application setting forth the technical specifications it proposes to provide. (c) Failures or malfunctions of the system shall be corrected by the Grantee promptly after notice of such failure or malfunction except or unless such failure or malfunction shall be over a substantial portion of Grantee's system and shall have been caused by storm, fire, lightening, explosion, civil unrest or other similar catastrophe. (d) In order to limit failures and malfunctions of the cable antenna television system to a minimum and that the same might be promptly corrected at all times after notice of malfunction or failure, Grantee is required to maintain an office in the City which shall be open during normal business hours of every day, Monday through Friday, inclusive, and that office shall have a listed telephone number which shall be toll free to all subscribers. The telephone shall be so operated that complaints or requests for repairs or adjustments because of malfunctions can be received at any time, including Saturday, Sunday and Holidays. (e) Grantee shall at all times keep and maintain in, or in close proximity to, the City an adequate inventory of maintenance and repair parts for the cable antenna television system as will assure the continuity of the service of the cable system to subscribers in the City on a prompt and efficient basis and without being subjected to delays by having to obtain necessary parts and equipment from distant points; Grantee shall keep available at all times maintenance and repair crews in sufficient number and capability as may be necessary and sufficient to give prompt, reasonable, and capable maintenance and repair service to the cable antenna television system in accordance with good engineering practices. Grantee shall provide such adjustments and repairs as are necessary to provide a quality signal to the subscriber within twenty-four (24) hours of the time the report of trouble is made, and repair person shall be available for such purpose during normal business hours and on an emergency basis, and must respond to a cable outage call within twenty-four (24) hours after such call is received. (f) The Grantee shall so operate and maintain its cable antenna television system where there will be no interference with television or radio reception through individually owned receiving antennas. (g) The City shall, if it deems it necessary, have the right and privilege to inspect the connection, installation, operation and maintenance of the cable antenna television system by the Grantee in order to satisfy itself as to the proper performance of the terms of this franchise agreement. (h) The Grantee shall permit the pro-rata reduction of monthly charges for customers who notify the Grantee of individual service disruption. The adjustment period shall commence upon notification. Disruptions of twelve (12) hours or more shall be considered a full day of service for purposes of this subsection. Appropriate billing adjustments shall also be made for known system shutdown or failure of the entire system where such shutdown or failure of the entire system where such shutdown or failure shall be for a duration of more than twenty-four hours. (i) It is the intent of this section to apply the more restrictive of any standard empowered or authorized by 47 C.F.R. 70.309, or the terms of this franchise, and if any conflict exists between said standard, the Grantee agrees to comply with the more restrictive provisions. 12 Section 3.4 OBSCENE PROGRAMMING Cable services which are obscene or otherwise not protected by the Constitution of the United States of America shall not be transmitted by the Grantee. Section 3.5 RATES At any time during the term of a franchise the City may, upon a finding in accordance with applicable FCC regulations or federal law, undertake the process to regulate rates charged for cable service, unless and until such time as such proceedings are completed, Grantee agrees to comply with all FCC regulations and to supply information regarding rates to the City upon request and each and every time Grantee proposes or establishes any rate changes. Section 3.6 REMOVAL ON SUBSCRIBER'S REQUEST On the permanent termination of cable service to any subscriber the Grantee shall promptly remove all of its facilities and equipment from the premises of such subscriber if the subscriber shall so request. In any event, the facilities of the Grantee shall be so constructed and designed that by the use of ordinary household tools and without special skills or knowledge and without reasonable risk of harm, the subscriber may be capable at any time of disconnecting the system of Grantee from the subscriber's television set or receiver so that said set or receiver may be used independently of the Grantee's system. Section 3.7 RIGHTS OF INDIVIDUALS PROTECTED (a) Disclosure of Personally Identifiable Information Regarding Subscribers: Grantee shall not disclose personally identifiable information concerning any subscriber without prior written or electronic consent of the subscriber concerned and shall take such actions as are necessary to prevent unauthorized access to such information by a person other than the subscriber or Grantee unless authorized in 47 U.S.C. Section 551. (b) Monitoring or Cable Tapping: It shall be unlawful to tap or monitor a system line without authorization from the parties whose communication might be overheard; provided, however, the Grantee may provide for system -wide, non - individually addressed "sweeps" or the Grantee's acquisition of information for purposes of verifying system integrity, controlling return path transmissions, or billing for pay services. (c) Discriminatory or Preferential Practices Prohibited: The Grantee shall not, in its rates or charges, or in making available the services or facilities of its system, or in its rules or regulations, or in any other respect, make or grant preferences or advantages to any subscriber or potential subscriber to the system, or to any user or potential user of the system, and shall not subject any such persons to any prejudice or disadvantage. This provision shall not be deemed to prohibit promotional campaigns to stimulate subscriptions to the system or other legitimate uses thereof, nor shall it be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classification shall be entitled. 13 (d) Open Access: The entire system of the Grantee shall be operated in a manner consistent with the principle of fairness and equal accessibility of its facilities, equipment, channels, studios, and other service to all citizens, businesses, public agencies, or other entities having legitimate use for the system, and no one shall be arbitrarily excluded from its use. Allocation of use of said facilities shall be made according to the rules or decisions of regulatory agencies affecting the same. (e) Disclosure to Subscribers: If Grantee identifies the City on Subscriber's bills, in accordance with the Cable Act, the City requires Grantee to include the following in its entirety: (Name of Grantee) operates under the authority of a franchise with: City of Fairhope Fairhope, Alabama 36532 Phone: (251) 990-0100 (Name of Grantee) (Customer Telephone Number of Grantee) (f) Notification to Subscribers: (1) Grantee shall provide written information on each of the following areas at the time of installation of service, at least annually to all subscribers, and at any time upon request: (i) products and service offered; (ii) prices and options for programming services and conditions of subscription to programming and other services; (iii) installation and service maintenance policies; (iv) instructions on how to use cable services; (v) channel positions of programming carried on the system; and (vi) billing and complaint procedures, including the address and telephone number of the local franchise authority. (2) Subscribers will be notified of any changes in rates, programming services or channel positions as soon as possible through announcements on the cable system and in writing. Notice must be given to subscribers a minimum of thirty (30) days in advance of such changes if the change is within the control of the Grantee. In addition, the Grantee shall notify subscribers thirty (30) days in advance of any significant changes in the other information required by Section 3.7 (f)(1)(i), (ii), (iii), (iv), (v), (vi). (g) Notification to the City: the City will be notified of any changes in rates, programming services or channel positions as soon as possible in writing. Notice will be given to the City a minimum of thirty (30) days in advance of such changes if the change is within the control of the Grantee. In addition, the Grantee shall notify the City thirty (30) days in advance of any significant changes specified in Section 3.7 (f)(1)(i), (ii), (iii), (iv), (v), (vi). Grantee will forward such notification to the following at the following addresses: 14 Office of the Mayor City of Fairhope Post Office Drawer 429 Fairhope, Alabama 36533 Section 3.8 PROCEDURE FOR REMEDYING FRANCHISE VIOLATIONS. In accordance with the Regulations, the following shall apply but shall not be an exclusive remedy: A. Whenever Grantor has reason to believe that Grantee has violated any provision of this Franchise Agreement or the Regulations, the City shall first notify the Grantee of the violation and demand correction within a reasonable time, which shall not be less than twenty (20) days in the case of the failure of a Grantee to pay any sum or other amount due the City under this Franchise, and thirty (30) days in all other cases, unless otherwise agreed to by the City. If a Grantee fails to correct the violation within the time prescribed, or if a Grantee is unable to correct the violation and fails to commence corrective action within the time prescribed and to diligently remedy such violation thereafter, the Grantee shall then be given written notice of not less than twenty (20) days of a public hearing to be held before the Council. Said notice shall indicate with reasonable specificity the violation alleged to have occurred. B. At the public hearing, the Council shall hear and consider all relevant evidence and thereafter render findings and a decision based upon the evidence. C. In the event the City finds that a Grantee has corrected the violation or promptly commenced correction of such violation after notice thereof from the City and is diligently proceeding to fully remedy the violation, or that no violation has occurred, the proceedings shall terminate and no penalty or other sanction shall be imposed. D. In the event the City finds that a violation exists and that a Grantee has not corrected the same in a satisfactory manner or did not promptly commence and diligently proceed to correct the violation, the City may impose liquidated damages assessable from the Security Fund in Section 2.6 of this Franchise, as follows: 1. For System construction schedule violations including, but not limited to, provisions relating to initial construction schedule or System upgrade construction schedule, one thousand dollars ($1,000) per day of non-compliance. 2. For all other violations, two hundred dollars ($200) per day per violation. The Grantee acknowledges that the damages that may be incurred by the City as a result of a violation of this Agreement or the Regulations may be difficult to determine and further agrees that these liquidated damage amounts are not intended as a penalty, but rather represent an estimate of the damage that might be incurred by the City and that said amounts are fair and reasonable. Grantee further agrees that the liquidated damage provisions herein shall not in any way be a limit against actual damages recoverable by the City as a result of any such violation by Grantee and that the amount of liquidated 15 damages imposed against the Grantee shall be in addition to any monetary obligations that are owed by Grantee under this Agreement or the Regulations. E. If the City elects to assess liquidated damages, then such election shall constitute the City's exclusive remedy for a period of sixty (60) days. Thereafter, if Grantee remains in non-compliance, the City may pursue any other available remedies under this Franchise, the Regulations or under other applicable laws. F. In the event that a Franchise is cancelled or terminated by reason of the default of a Grantee, the Security Fund deposited pursuant to this Franchise shall remain in effect and available to the City until all pending claims or penalties are resolved or settled, after which point any remaining amounts in the security fund shall revert to the possession of the Grantee. G. The rights reserved to the City with respect to the security fund or bond requirement as set forth in this Franchise are in addition to all other rights of City, whether reserved by this Franchise or the Regulations, or authorized by law, and no action, proceeding, or exercise of a right with respect to such security fund shall affect any other right the City may have. H. In instances of repeated violations, whether remedied or not, the City shall serve special notice outlining additional remediation requirements. Failure to cure, measured by repeated instances of the same violation, shall be evidence of an evasive practice and may lead to revocation under Section 11 of the Regulations. SECTION 4 Section 4.1 FRANCHISE FEE (a) General Payment: Grantee shall pay semiannually to the City during the life of the franchise a sum equal to five percent (5%) of its Gross Revenues. Grantee shall file with the City on such form as prescribed by the City within sixty (60) days after the end of each semiannual period a report, under oath at the risk of perjury, of the gross revenues in the service area during the preceding semiannual period, and shall, at the same time, pay to the City a sum equal to five percent (5%) of the gross revenues for the said semiannual period. In the event that any payment is not made on such date, interest on such payment shall apply from such date at the rate of twelve percent (12%) per annum. If at any time in the future the federal law and/or state law changes to allow a franchise fee of more than five percent, the City may adjust such fee accordingly, but only every five years. If at any time in the future the federal law and/or state law changes to allow a city to charge business license fees or other fees or taxes in addition to the franchise fee, the city may charge such fees as allowed by law, but the City may only adjust such fees every five years. (b) Early Termination: If Grantee's franchise should be terminated or forfeited prior to the end of any semiannual period, Grantee shall submit to the City within twenty (20) days of such termination or forfeiture the report and payment required by Section 4.1(a) above for such partial semiannual period. (c) Inspection of Records: the City shall have the right to inspect Grantee's record's showing gross revenues from which its franchise payments are computed. The right of audit and re -computation of any and all amounts paid under the 16 franchise shall be always accorded to the City. No exercise by the City of such right of inspection shall be deemed a waiver by it of any right hereunder or of its right to a true accounting of all amounts due or owned to it by Grantee. (d) Effect of Acceptance: Subject to applicable law, no acceptance of any payment by the City shall be construed as a release of or an accord of satisfaction of any claim the City might have for further or additional sums payable under the terms of the franchise or for any performance or obligation of grantee thereunder. (e) The payment of any and all fees by Grantee, is in addition to any ad valorem tax which the City may levy upon the Grantee's real or personal property, and is in addition to any other tax which may lawfully be levied by other governmental entities. Section 4.2 EMERGENCY USE OF THE FACILITIES/PUBLIC ACCESS (a) Emergency Use: In the event of an emergency or disaster the Grantee shall, upon request of the Chairman, make available its facilities to the City at no cost to the City for emergency use during the period of such emergency or disaster and shall provide such personnel as necessary to properly operate under the circumstances. Grantee shall provide for the transmission of Emergency Alert System notifications to its subscribers, including emergency messages broadcast by the Federal Emergency Management Agency, Alabama Emergency Management Agency and the City of Fairhope Emergency Agency. Grantee shall be required to be in compliance with all FCC regulations and applicable federal and state regulations governing the transmission of information during emergency situations. Specifically, Grantee shall be required to be in compliance with 47 C.F.R. Part 11, Subpart A, Section 11, which requires Grantee to transmit or rebroadcast information originating from the City of Fairhope Emergency Management Agency or Local Area Emergency Alert Plan. (b) Free Service to City Buildings and Public Schools: Upon written request, Grantee shall provide one (1) installation and provide service free of charge of one outlet of basic cable service, within Grantee's service area, to such governmental facilities, law enforcement stations and public school buildings as requested by the City, provided that such facilities are located no more than 125 feet from Grantee's existing cable system. (c) Educational and Governmental Access Channel Capacity: In accordance with the Cable Act, the City requires Grantee to provide, upon the basic cable service tier, at a minimum the following for educational and governmental access pursuant to the provisions of the cable act: One (1) downstream video channel for Educational and Governmental access, which programming is controlled by the City. Use of Grantee's facilities for educational and governmental access upon the cable antenna television system will be made available to promote educational programs, City of Fairhope City meetings and all other lawful news information which the City may desire at any and all times. Further, Grantee shall allow the broadcast or rebroadcast of City of Fairhope meetings, in a timely manner, in order to allow the citizens of City of Fairhope to be fully informed of the business of their City government. 17 Grantee shall make reasonable efforts to coordinate the broadcast of educational and governmental access programming upon the cable antenna television system at the same time and upon the same channel designations as such programming is broadcast upon other cable antenna television systems in City of Fairhope. Section 4.3 PERFORMANCE AND PAYMENT BONDS (a) Grantee shall, on such dates as set by the City, file with the City and at all times thereafter maintain in full force and effect for the term of construction, at the Grantee's sole cost and expense, corporate surety bonds with a company and in a form approved by the City and in amounts set by the City conditioned upon the faithful performance by Grantee of all the terms and conditions of its franchise for the construction thereof. . (b) Grantee shall, on such dates as set by the City, file with the City and at all times thereafter maintain in full force and effect for the term of franchise, at the Grantee's sole cost and expense, corporate surety bonds with a company and in a form approved by the City and in amounts equal to three months tax liability conditioned upon payment of all taxes due hereunder. (c) If the City shall, under other terms of the franchise, revoke the franchise of Grantee other than by reason of the involuntary acquisition by the City of Grantee's property, then, in that even, the City shall be entitled to recover under the terms of such bond the full amount of any loss occasioned to the City by reason of such breach or violation to the full amount of such bond. (d) No recovery by the City of any sum pursuant to the performance bond required in this section shall be any limitation on the liability of the Grantee to the City under the terms of this section, except that any sums so received by the City shall be deducted from any recovery which the City might have against the Grantee. Section 4.4 INDEMNIFICATION (a) Grantee shall at his sole cost and expense fully indemnify, defend and save harmless the City, its officers, boards, and employees against any and all claims, demands, suits, actions, liability and judgments for damage arising out of the construction, operation and maintenance of the cable antenna television system franchise, and against all liabilities for damages by reason of, or arising out of, any failure by Grantee to secure consents from the owners, authorized distributors or licenses of programs to be transmitted or distributed by the Grantee, and against any loss, cost, expense, and damages, including reasonable attorney's fees, arising out of the exercise or enjoyment of this franchise, irrespective of the amount of comprehensive liability policy required hereunder. This indemnity shall not apply to damages occasioned solely and exclusively by acts of the City, its agents or employees. (b) Within thirty (30) days after the granting of the franchise and at all times during the term of the franchise, Grantee shall obtain, pay all premiums for, and file with the City executed duplicate copies and receipts evidencing the payment of premiums for the following: IV A general comprehensive public liability insurance policy indemnifying, defending and saving harmless the City, its officers, boards, agents or employees from any and all claims by any person whatsoever on account of injury to or death of a person or persons occasioned by the operations of the Grantee under franchise herein granted or alleged to have been so caused with a minimum of liability of One Million Dollars ($1,000,000.00) for personal injury or death of any two or more persons in any one occurrence. Renewal certificates of such insurance shall be promptly forwarded to the City as such renewals are made, and such insurance shall be kept in force and effect during the term of this grant or franchise. The Grantee and/or the insurance company shall file with the City a written notice of any material alteration or cancellation of any insurance coverage at least thirty (30) days prior to the effective date of such alteration or cancellation. Property damage insurance indemnifying, defending and saving harmless the City, its officers, boards, agents, and employees from and against all claims by any person whatsoever for property damage occasioned by the operation of a Grantee under franchise granted by City caused with a minimum liability of Five Hundred Thousand Dollars ($500,000.00) for property damage to two or more persons in any one occurrence. Said policies of insurance shall name the City as an additional insured. (c) Grantee shall indemnify, defend and save harmless the City, its officers, boards, agents, and employees from and against all claims of any person whatsoever for copyright infringement occasioned by the sole operation and control of a Grantee under the franchise herein granted or alleged to have been so caused or occurred. (d) Such insurance as provided for this section shall be kept in full force and effect by the Grantee during the existence of the franchise and until after the removal of all poles, wires, cables, underground conduits, manholes, and other conductors and fixtures incident to the maintenance and operation of the cable antenna television system as defined in the franchise. (e) All of the foregoing insurance certificates shall be in form satisfactory to the City and shall be issued and maintained by companies authorized to do business in the State of Alabama and acceptable to the City and they shall require thirty (30) days written notice of any cancellation or reduction in coverage to both the City and Grantee herein, and a copy of said certificates shall be filed with the City. Section 4.5 BOOKS/RECORDS OF GRANTEE (a) All books and records of a Grantee concerning its operations within the City necessary for the enforcement of the provisions of this franchise, shall be made available for inspection and audit upon demand by the City within thirty (30) days after any request for such inspection or audit has been made. (b) Copies of all rules, regulations, terms and conditions established by a Grantee for the operation of a cable antenna television system under the franchise shall be filed with the City. Section 4.6 RIGHTS RESERVED TO THE CITY Without limitation on the rights which the City might otherwise have, the City does hereby expressly reserve the right, powers, and authority to exercise its 19 governmental powers now or hereafter to the full extent that such powers may be vested in or granted to the City, including but not limited to the power and authority to amend these rules and regulations pursuant to its lawful governmental powers; to determine any question of fact relating to the meaning, terms, obligations or other factors of this franchise; and to grant additional franchises within the City to other persons for the conduct of a cable antenna television system. Section 4.7 GRANTEE ACKNOWLEDGEMENT (a) A Grantee expressly acknowledges that upon accepting a franchise, it does so relying upon its own investigation and understanding of the power and authority of the City to grant the franchise. (b) By acceptance of the franchise Grantee acknowledges that it has not been induced to enter into the franchise by any understanding or promise, or other statement whether verbal or written by or on behalf of the City or by any other third person concerning any term or condition of the franchise not expressed herein. ,SF.C:TION 5 Section 5.1 SALE OR LEASE OF FRANCHISE (a) No transfer of control of the cable antenna television system, whether by force or voluntary sale, lease, assignment, foreclosure, attachment, merger, or any other form of disposition, shall occur or be considered valid without first giving prior written notice and receiving the written approval of the City. The notice shall include full identifying particulars of the proposed transaction. For the purpose of determining whether it shall consent to such change, transfer, or acquisition of control, the City may inquire into the qualification of the prospective controlling party and the Grantee shall assist the City in any such inquiry. The City shall have one hundred and twenty (120) days form the date the notice is received by the City within which to approve or disapprove, by resolution, the proposed transfer of control. The City will not unreasonably withhold its approval. (b) Approval of such transfer shall be expressly conditioned upon full compliance with the material terms of the franchise agreement and this Resolution. The transferee shall agree in writing to comply with all provisions of this Resolution and the franchise agreement. (c) For the purpose of this section, the term "control" is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person or group of unaffiliated persons of twenty-five percent (25%) of the voting shares of the Grantee. Section 5.2 REVOCATON OF FRANCHISE (1) Subject to the provisions of this section, the City reserves the right to revoke, at any time, any franchise granted hereunder and rescind all rights and privileges associated therewith in the event that: 20 (a) Grantee has not substantially complied with a material provision of this Resolution, the franchise agreement, or of any supplemental written agreement entered into by an between the City and the Grantee; or (b) Grantee has made a material false statement in the application for the franchise, knowing it to be false, or Grantee commits a fraud in its conduct or relations under the franchise with the City; or (c) Grantee becomes insolvent, enters into receivership or liquidation, files for bankruptcy or assignment for benefits of creditors, or is unable to pay its debts as they mature, unless the Grantee is in due process of contesting such debts; or (d) Grantee fails to substantially comply with a material provision of any federal or state statue, or of any material rules or regulations that govern telecommunications; or (e) Grantee exhibits a pattern of failing to comply with service standards as adopted herein or in the franchise agreement; or (f) Grantee fails to comply with any federal or state judgment arising directly from the exercise of Grantee's rights under its franchise; or (g) Grantee fails to provide or maintain in full force and effect the bond and insurance policies required by this Resolution and franchise agreement; or (h) Grantee assigns, sells or transfers its title or interest in its franchise without the consent of the City. (2) In the event that the City shall make a preliminary decision to revoke a franchise granted hereunder, it shall give the Grantee a minimum of sixty (60) days written notice of its intention to terminate and stipulate cause. A public hearing shall be scheduled for the end of said (60) day period. If during said period, the cause shall be cured to the satisfaction of the City, the City shall declare the notice to be null and void. If the cause is not cured to the satisfaction of the City, before a franchise may be terminated, the Grantee must be provided with an opportunity to be heard before the City in a public hearing in accordance with due process procedures. After the public hearing, if the City, by majority vote, determines that the franchise should be terminated, it shall issue a written decision containing its findings of fact and stating the specific grounds for termination. The decision to terminate a franchise shall be subject to judicial review as provided by law. (3) A Grantee shall not be declared in default or be subject to any sanction under any provision of this Resolution and franchise agreement in any case where the City determines that the action justifying such sanction is without the Grantee's knowledge or authorization or outside its control. Section 5.3 RIGHTS UPON REVOCATION OR NON -RENEWAL In the event the City determines that a franchise should not be renewed at its expiration or that a franchise should be revoked for cause as permitted hereunder, the Grantee shall be allowed six (6) months from the date of such determination, or such 21 longer period as the City may permit, to negotiate the sale of its cable antenna television system within the City to another cable antenna television system service provider at a price acceptable to the Grantee, provided that such sale shall be approved by the City pursuant to Section 5 herein. In the event a sale to a cable antenna television system service provider acceptable to the City is not then negotiated within the time allowed, then an independent expert shall be appointed to determine the fair market value of the Grantee's system. The appointment of said expert shall be by mutual agreement between the City and the Grantee; provided, however, that if the City and the Grantee are unable to reach an agreement within sixty (60) days of the written decision of termination, then the matter of appointing an expert shall be submitted, within ten (10) days immediately following expiration of the former sixty days (60), to the American Arbitration Association [unless the City and the Grantee mutually agree upon some other arbitrator(s)], and the expert designated by the American Arbitration Association or such other arbitrators shall be appointed. The cost of employing the arbitrator or arbitrators and the cost of arbitration, if required, shall be borne equally by the Grantee and the City. Upon determination of the fair market value of the Grantee's system by the appointed independent expert, the Grantee shall be required to sell its system to any entity which offers said fair market value and which has obtained the approval of the City to purchase said system. Section 5.4 REMOVAL AND ABANDONMENT OF PROPERTY (a) If the use of any part of Grantee's cable antenna television system is discontinued for any reason for a continuous period of twelve (12) months, or if such cable system as installed does not comply with the requirements of these rules and regulations, or if Grantee's franchise is terminated or revoked the City may in its discretion require that said system be sold to a franchise designated by the City at a purchase price equal to the system's fair market value as determined in subsection (b) hereof. (b) Any dispute between the City and the Grantee over determination of the system's fair market value shall be determined in accordance with Section 5.3 above. (c) In the event that the City does not elect to require Grantee to sell its cable antenna television system to a successor franchise pursuant to subsection (a) above, the City may nevertheless require Grantee to remove its property from any public right-of-way, easement or from City -owned property. The City shall give Grantee at least thirty (30) days prior notice hereunder, and Grantee shall at the expiration of said thirty (30) day period promptly comply with said notice. The City may in said notice permit the Grantee to abandon specified property in place, in such manner as the City may prescribe. Any other remaining property remaining in place shall be deemed permanently abandoned, unless the City for good cause shown extends such period of time as reasonably necessary for the removal of such property. On permanent abandonment of any property in place, title to such property shall vest with the City. Grantee shall execute such deeds or other documents, satisfactorily to the City, as may be necessary to effectuate the transfer. SECTION 6 Section 6.1 INSTITUTIONAL NETWORK, ACCESS CHANNELS A. Every Grantee shall, to the extent required in its Franchise Agreement and 22 subject to applicable law provide or fund on an equal basis with other Cable providers an Institutional Network that provides two-way broadband, voice, video and data capabilities for non-commercial use by governmental or educational organizations designated by the City. B. Every Grantee shall to the extent required in its Franchise Agreement and subject to applicable law, provide channel or bandwidth capacity, service, and capital funding, for separate Public, Educational and Government Access Channels, and provide such Access Channels to each of its Subscribers who receive all or any part of the Cable Services offered on its System. Section 6.2 PROOF OF PERFORMANCE TESTING To ensure high quality Service on an Institutional Network and Access Channels, the results of proof of performance testing throughout the System and on all Channels in accordance with applicable federal law will be made available to the City upon request throughout the term of a Franchise Agreement. Every Grantee will monitor Channels throughout the System, including Access Channels, consistent with the FCC rules, to determine the level of technical quality of Access Channels and to ensure the level of technical quality on such Access Channels is the same as on other Channels. In the event that a programmer of any Access Channels makes a Complaint, the Grantee shall immediately investigate the Complaint and determine whether the Grantee is in compliance with the technical standards set forth in section 7.2 of this Ordinance. The procedures set forth in section 7.3 of this Ordinance shall apply with respect to technical testing of Access Channels. SECTION 7 Section 7.1 GENERAL TECHNICAL STANDARDS AND CUSTOMER SERVICE PRACTICES A. This Ordinance incorporates technical standards and establishes customer Service practices that a Grantee must satisfy. In addition, a Grantee shall satisfy any additional or stricter customer service requirements established by FCC regulations, or other federal, state or local law or regulation that may be adopted or amended from time to time. B. In accordance with applicable law, a Grantee shall maintain such equipment and keep such records as are required to enable the Grantor to determine whether the Grantee is in compliance with all standards required by these regulations and other applicable laws. Section 7.2 TECHNICAL STANDARDS The technical standards used in the operation of a System shall comply, at minimum, with the technical standards promulgated by the FCC relating to Cable Systems pursuant to the FCC's rules and regulations and found in Title 47, Sections 76.601 to 76.617, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. The results of any tests required by the FCC, this Ordinance, or a Franchise Agreement shall be made available to the City 23 upon request. Section 7.3 TEST AND COMPLIANCE PROCEDURE Tests for a System shall be performed in accordance with the FCC's rules and regulations. Representatives of the City may witness the tests and written test reports shall be made available to the City upon request. If more than ten percent (10%) of a Grantee's locations in the City tested fail to meet the performance standards, the Grantee shall be required to indicate what corrective measures have been taken and the entire test shall be repeated. Section 7.4 EMERGENCY REQUIREMENTS Each Grantee must provide emergency alert override capabilities in a manner consistent with the FCC's emergency alert System ("EAS") rules and consistent with any State and/or regional emergency alert System plans adopted in response to the FCC's EAS rules that are applicable to the Franchise Area. Section 7.5 PROGRAMMING DECISIONS In accordance with applicable law, each Grantee shall provide programming from each of the broad programming categories listed in accordance with the Franchise Agreement. All programming decisions remain within the sole discretion of each Grantee provided that each Grantee complies with federal law regarding notice to Grantor and Subscribers prior to any Channel additions, deletions, or realignments, and further subject to the Grantee's signal carriage obligations pursuant to 47 U.S.C. §§ 531-536, as may be amended and subject to the City's rights pursuant to 47 U.S.C. § 545, as may be amended. Grantor and Grantee may agree as part of a Franchise Agreement to terms and conditions concerning the programming surveys. Section 7.6 CABLE SYSTEM OFFICE HOURS AND TELEPHONE AVAILABILITY A. Every Grantee shall maintain a customer service office within the Franchise Area, which shall include a place where Subscribers may pay their bills, pick-up and return converter boxes and comparable items and receive information on the Grantee and its Services. Such service office shall be open during Normal Business Hours. Every Grantee also shall maintain a publicly listed toll -free or collect call telephone access line that is available to Subscribers twenty-four (24) hours a day, seven (7) days a week. The local or toll -free numbers shall be listed, with appropriate explanations, in all widely utilized local phone directories. B. Every Grantee shall have trained representatives available to respond to Subscriber telephone inquiries during Normal Business Hours. The term "trained representatives" shall mean employees of the Grantee who have the authority and capability while speaking with a Subscriber to, among other things, answer billing questions, adjust bills, and schedule service and installation calls. C. All employees of the Grantee shall identify themselves when answering an incoming call or inquiry, or when working in the field. Supervisory personnel must use their best efforts to respond to Subscriber requests to speak with a "manager or 24 supervisor" within two hours of the request under Normal Operating Conditions and during Normal Business Hours and supervisory personnel will respond no later than the next business day. D. After Normal Business Hours, the telephone access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after Normal Business Hours must be responded to by a trained representative on the next business day. E. Upon request, a Grantee shall prepare and distribute to the Grantor a calendar of holidays and business days on which the operator will be closed. Grantee shall also provide reasonable prior notice to Subscribers through answering service/machine, voice mail messages, bill messages, or through its Cable System regarding hours or dates when its offices will not be open. In addition, during such "closed" periods, the Grantee shall provide voice messages and notice on its premises of the emergency and after hours contact numbers. F. Under Normal Operating Conditions, telephone answer time by a customer service representative or automated response unit, including wait time, shall not exceed thirty (30) seconds. If a call must be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met no less then ninety percent (90%) of the time as measured on a quarterly basis under Normal Operating Conditions. G. Under Normal Operating Conditions, Subscribers will receive a busy signal less than three percent (3%) of the time. H. The period of three (3) hours following major outages (more than 25% of the Subscribers) or periods of natural disasters are not included in the response requirements above, provided that Grantee has used reasonable best efforts to provide voice -mail information about the outage on phone answering equipment and the System bulletin board (assuming outage is not City-wide) and the City has been promptly notified that an outage was in progress, including beginning and ending times, area of outage, location and cause of problem. I. Grantee shall respond to all Subscriber or user inquiries or complaints within ten (10) days of the inquiry or Complaint, except to the extent a more stringent standard is set forth for specific types of activities, inquiries or Complaints herein or in the Franchise Agreement. J. On a semi-annual basis, the Grantee, upon request, will provide the Grantor with reports for hold time, busy signals, and abandonment rate and, if requested by the Grantor, the Grantee will meet with the Grantor to review such reports. The Grantor may allow periods of excused non-compliance if the Grantee can provide reasonable documentation that these periods of non-compliance were not under Normal Operating Conditions. (1) The Grantee will be deemed in compliance if: met or exceeded; or (a) During any such semi-annual period each criterion has been (b) If each criterion has been met or exceeded during four (4) 25 months within any such semi-annual period. (2) Should the Grantee be found to be in non-compliance, the Grantor shall notify the Grantee in writing and specify the basis for the finding. Upon notification, the Grantee shall have thirty (30) days to cure such non-compliance. (3) If the Grantee, based upon the available monthly data, fails to cure the non-compliance within the thirty (30) day period, the Grantor may commence enforcement and penalty procedures. Section 7.7 INSTALLATIONS, OUTAGES, AND SERVICE CALLS Under Normal Operating Conditions, each of the following standards must be met no less than ninety-five percent (95%) of the time as measured on a quarterly basis: A. Unless requested by the Subscriber and agreed to by Grantee, a Grantee shall only perform service calls, installations, and requested changes in Service — e.g., upgrades, downgrades, equipment changes, disconnections -- during Normal Business Hours. Disconnections for non-payment may only be performed during Normal Business Hours. In addition, maintenance service capability enabling the prompt location and correction of substantial System malfunctions or outages shall be available twenty-four (24) hours a day, seven (7) days a week. B. To the extent practical, at the time an appointment is scheduled, the Grantee shall inform the Subscriber of service procedures, required payments, possible delays, phone or field verification procedures which are related to the appointment and/or possible rescheduling/cancellation. C. The appointment window alternatives for standard installations and service calls will be within a maximum four (4) hour time block during Normal Business Hours. Grantees may schedule service calls and other installation activities outside of Normal Business Hours for the express convenience of a Subscriber, if so requested. D. No Grantee may cancel an appointment with a Subscriber after the close of business on the business day prior to the scheduled appointment. E. If a Grantee's representative is running late for an appointment with a Subscriber and will not be able to keep the appointment as scheduled, all reasonable efforts will be made to contact the Subscriber. The appointment must be rescheduled, as necessary, at a time that is convenient for the Subscriber. F. The Grantee may phone the Subscriber within the appointment window to verify that the appointment is still needed. If the subscriber telephone is answered by a machine or service, the Grantee must leave a message with a direct or separate dispatch number the Subscriber may use to call back to confirm or reschedule the appointment. G. Appointments may not be canceled or rescheduled until field personnel of the Grantee make every reasonable effort to verify that the Subscriber or other authorized adult is not at the address for the appointment. H. Upon verification that a Subscriber is not at the address during the scheduled appointment window, the Grantee shall leave a door tag or similar notice with the name of the person leaving the notice, the time the person determined that the Subscriber was not at home; and a telephone number the Subscriber may call back to confirm or reschedule an appointment. I. Any vehicle used for the installation, construction, maintenance, or repair of a Cable System shall bear the identification of the contractor or the applicable Grantee in a conspicuous place and manner. J. Reconnections due to erroneous disconnection based on billing or technical errors must be completed at no charge within twenty-four (24) hours of notification by the affected Subscriber. K. Reconnections after a disconnection attributed to non-payment of bills must be completed within seven (7) business days of Grantee receipt of back payment. L. Installations or reconnections may not be considered completed nor may customers be billed for Services until all ordered, upgraded, or reconnected Services, are in full working order. M. A Subscriber's preference as to the point of entry into a residence shall be observed whenever feasible. Runs in building interiors shall be as unobtrusive as reasonably possible and outlets shall be located for the convenience of the Subscriber. The Grantee shall use due care in the process of installation and shall repair any damage to the Subscriber's property caused by installation work. Such restoration shall be undertaken as soon as possible after the damage is incurred, shall be subject to reasonable Subscriber approval of the corrective action, and Grantee shall use its best efforts to complete the corrective action within no more than thirty (30) days after the damage is incurred. Should such restoration not be corrected within thirty (30) days, the Grantee shall notify the Subscriber as to the cause for the delay and the date when such action shall be completed. N. Failure of the Grantee to maintain adequate budget, sufficient staff or properly trained staff shall not constitute justification for failure to comply with these provisions. Section 7.8 REPAIRS AND INTERRUPTIONS A. Every Grantee will begin working on Service interruptions and outages within a reasonable timeframe but in no event later than twenty-four (24) hours after the Service interruption becomes known. (1) Any reports of "no picture/no sound" must be responded to within twenty-four (24) hours of such report. (2) Work not requiring the Operator to enter Subscriber premises (or property) shall not require the Subscriber to be available for an appointment and shall not be delayed on account of the Grantee's inability to arrange an appointment with the Subscriber. B. Work on all other requests for Service must begin by the next business day after notification of the problem and must ordinarily be completed within seventy-two (72) hours of the initial request. If for reasons beyond the Grantee's control a longer 27 time for the completion of such repairs is necessitated, the Grantee shall exercise all due diligence to complete the work in the shortest period of time possible. C. Outside repairs to cable plant that cannot be made by the initial service technician dispatched shall be re -scheduled within twenty-four (24) hours of the originally scheduled service call. The Subscriber does not need to be home for outside plant and line repairs. D. A Grantee may interrupt Service only for good cause and for the shortest time possible, including interruption for System upgrade, maintenance and repair. Routine maintenance shall occur at times that affect the fewest number of Subscribers. The Grantee shall post override notices on the System to advise Subscribers in advance of planned Service interruptions. To the extent that specific neighborhoods will be affected by a planned outage, such as during an upgrade, the Grantee shall provide advance notice through telephone calls and/or door hangers. E. A Grantee shall provide a pro rata credit for Service for each Service interruption exceeding four (4) hours in any twenty-four (24) hour period, unless it is demonstrated that the Subscriber caused the outage, or the outage was planned as part of an upgrade or other work of which the City and the Subscriber received appropriate prior notification. A Subscriber is entitled to a full refund for any Cable System or equipment impairment to pay per view events. These credits and refunds shall be made available upon request by Subscriber, or automatically credited if technically possible. F. Technicians that are employed by a Grantee and capable of performing service related emergency repairs and maintenance must be available twenty-four (24) hours a day, including weekends and holidays. G. Service Call Charges. Unless otherwise agreed to, no charge shall be made to a Subscriber for any service call relating to Grantee owned and Grantee maintained equipment after the initial installation of Cable Service unless the problem giving rise to the service request can be demonstrated by Grantee to have been: (1) Caused by the negligence or malicious destruction of cable equipment by the Subscriber; or (2) A problem established as having been non -cable in origin. H. An "identified outage" is construed as reports of no picture/no sound from three (3) or more Subscribers in close geographic proximity or along the same trunk or feeder line within twenty (20) minutes of each other. I. Within ten (10) minutes of an identified outage, the Grantee will post appropriate messages, including areas or zip codes affected, on an automatic response unit or phone system. Such messages should also provide instructions for Subscribers whose navigation devices may have become deauthorized as a result of the outage. J. Within one (1) hour of an identified outage, service technicians will respond and use all available reasonable means to correct the outage in the shortest possible amount of time. The Grantee shall maintain and forward to the City upon request reports on the cause, area, duration and repair of the outage. NM K. Cable drop lines, cable trunk lines, or any other type of outside wiring that comprise part of the Grantee's Cable System that are located underground, shall be placed in such locations pursuant to City Code, and the surrounding ground shall be restored as close as is practical to the condition to which it existed immediately prior to such construction within seventy-two (72) hours after connection to the Cable System, or such time as agreed to by the property owner. Additional time may be allowed for the completion of such restoration if individual circumstances warrant. Except for the Grantee's maintenance facilities, no cable drop line, cable trunk line, or any other type of outside wiring shall be permitted to lay upon the ground within the City, except for the express purpose of being immediately connected to the cable system of the Grantee. The requirements of this subsection shall apply to all installation, reinstallation, service or repair commenced by the Grantee within the City during normal operating conditions. The City shall determine in its sole discretion whether operating conditions were not within the control of the Grantee. Section 7.9 COMMUNICATIONS BETWEEN GRANTEES AND SUBSCRIBERS A. Notifications to Subscribers: (1) In accordance with applicable law, every Grantee shall provide written information to Subscribers on each of the following topics at the time of installation, at least annually to all Subscribers, at any time upon request, and at least thirty (30) days prior to making significant changes in such information: (a) Products and services offered; (b) Prices and options for programming services and conditions of subscription to programming and other services and facilities. To avoid confusion as to the total cost of Cable Service, at the time of installation, all Subscribers must be quoted prices that include Franchise Fees and any other fixed costs (such as FCC regulatory fees and public access support payments). Nothing in this section prohibits or restricts use of rates without franchise fees and/or other fixed cost elements in area wide advertisements; (c) Installation and maintenance policies including, when applicable, information regarding the Subscriber's home wiring rights and information describing ownership of internal wiring during the period service is provided; (d) Instructions on how to use Services; (e) Channel positions of programming offered on a System; (f) Billing and Complaint procedures, including the name, address and telephone number of the contact person; (g) The availability of Converters, Lockout Devises or other signal control devices; (h) The Grantee's practices and procedures for protecting against invasions of privacy; and 29 (i) The address and telephone number of the Grantee's office to which Complaints may be reported and, when applicable, the Grantee's community unit identifier as specified by the FCC. (2) Grantee promotional materials, announcements and advertising of Service to Subscribers, including pay -per -view or event programming, shall clearly and accurately disclose price terms. In the case of telephone orders, the Grantee shall take appropriate steps to ensure that price terms are clearly and accurately disclosed to potential customers before the order is accepted. (3) Subscribers will be given thirty (30) days advance notice of any changes in rates, programming services, or channel positions through any written means that is reasonably likely to bring such information to the attention of Subscribers. In addition, every Grantee shall notify Subscribers thirty (30) days in advance of any significant changes in other information required by this section. B. Billing. (1) Bills must be clear, concise, and understandable. Bills must be itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. (2) Bills must clearly show a specific payment due date. (3) If a Grantee chooses to itemize, as a separate line item on bills, Franchise Fees or other government imposed fees attributable to the total bill, such fees must be shown in accordance with any applicable law concerning the Grantee's ability to itemize such fees. Bill language related to Franchise Fees must be given to the Grantor in advance for review and comment. (4) Bills must also clearly delineate all activity during the billing period including optional charges, rebates, and credits. Nothing in this section prohibits or restricts a Grantee from offering packages of programming to subscribers and to identify such packages on the Subscriber bill. (5) The billing statement must clearly and conspicuously indicate the past due date, and if applicable the date certain that a Subscriber's Service will be disconnected and a telephone number for the subscriber to call to make payment arrangements or otherwise resolve the billing dispute. (6) Negative option billing is prohibited unless applicable federal law specifically requires that the Grantee be permitted to engage in such practice. (7) In case of a billing dispute, a Grantee must respond to a written complaint from a Subscriber within thirty (30) days. Credits for service shall be issued no later than the Subscriber's next billing cycle after determination that the credit is warranted. C. Late payment for Cable Service. 30 (1) Each bill shall specify on its face in a fashion emphasizing same such as bold face type, underlined type or a larger font: "For payments received after [date] a $ processing fee for late payment may be charged." (2) No processing fees for late payment, however denominated, shall be added to a Subscriber's bill less than twenty-one (21) calendar days after the mailing of the bill to the Subscriber. All such charges shall be separately stated on the Subscriber's bill and include the word "late" in the description of them. Section 7.10 COMPLAINT LOG Subject to the privacy provisions of 47 U.S.C. § 521 et seq., Grantor and every Grantee shall prepare and maintain written records of all Complaints made to them and the resolution of such Complaints, including the date of such resolution. Such written records shall be on file at the office of each Grantee. Every Grantee shall make available to Grantor a written summary of such Complaints and their resolution upon request. Section 7.11 LOCKOUT DEVICE A. Every Grantee shall provide to any subscriber upon request for sale or lease a Lockout Device for blocking both video and audio portions of any Channel(s) of programming entering the Subscriber's premises. B. Scramblingiblocking. Grantee shall at all times scramble both the audio and video portions of all Channels with predominately adult orient programming. Section 7.12 PERIODIC SUBSCRIBER SURVEY A. Every Grantee shall allow Grantor to insert into Grantee's monthly Subscriber billing statements a written survey on an annual basis. The Grantor shall be responsible for any costs incurred by a Grantee that are related to the conduct of such surveys. Upon the request of grant, and at Grantor's expense, each Grantee shall facilitate utilization of its current Subscriber mailing list for the purpose of conducting additional Subscriber surveys. B. The Grantor may periodically elect to supplement such annual Subscriber surveys with a statistically -valid telephone survey. Sections 7.13 LINE EXTENSION POLICY No resident shall be refused service arbitrarily. Unless otherwise set forth in the Franchise Agreement, whenever a Grantee receives a request for Cable Service in an unserved portion of the Franchise Area when there are at least twenty (20) dwelling units (which shall be interpreted to include businesses that have contractually agreed to subscribe to Cable Service) within one linear cable mile of the Grantee's nearest trunk or distribution cable from which it is technically feasible to extend Service, or the dwelling unit is within one hundred twenty-five (125) feet of Grantee's distribution cable, it shall extend its Cable System to such Subscriber at no cost, other than the published standard installation fee charged to all Subscribers. 31 Section 7.14 MOBILITY LIMITED SUBSCRIBERS Unless otherwise agreed in a Franchise Agreement, upon the request of mobility -limited Subscribers, a Grantee shall arrange for delivery, pickup or exchange or replacement of Converters or other equipment at the Subscriber's address, or by the use of a satisfactory equivalent means such as provision of a pre -paid postage mailer. Section 7.15 CUSTOMER SERVICE REPORTING REQUIREMENTS Based on a substantial number and a documented pattern of verbal or written Complaints received by Grantor, Grantor may require a Grantee to prepare and furnish to Grantor reports and any other reasonable information relevant to the Complaints, including, at minimum, the following: A. A telephone report containing the following information relevant to the question of whether the Grantee's telephone answering system complies with the standards of this Ordinance: (1) Total number of calls received for the System in the Franchise Area; (2) Total number of calls abandoned for the System in the Franchise Area; (3) Total percentage of calls abandoned; (4) Average time on hold before calls were abandoned; (5) Average speed of calls answered; (6) Percentage of calls answered within thirty (30) seconds; and (7) A description of significant events impacting telephone response times. In addition to the above, the grant may request that such reports contain graph(s) that depict a Grantee's performance with respect to the first six (6) items above for up to a three-year period prior to the date the report was requested. B. The number of free standard installations that were issued for failure to arrive for standard installations. C. A significant Service interruptions report that tracks information on a monthly basis to include: (1) Total number of Service interruptions; (2) Time of all Service interruptions; (3) Total hours that the System was out -of -service as related to planned maintenance or Channel line-up changes performed by the Grantee; and 32 (4) Estimated number of Subscribers affected by each incident. In addition to the above, the City may request that Service interruption reports contain graph(s) that depict a Grantee's performance with respect to the items above for up to a three-year period prior to the date the report was requested. D. Results of any technical testing on the System. Section 7.16 DISPUTE RESOLUTION A. Every Grantee shall establish procedures for receiving, acting upon, and resolving customer Complaints, and crediting customer accounts, without intervention by the Grantor. Such procedures shall prescribe the manner in which any Subscriber may submit a Complaint by telephone, fax, e-mail or in writing to the Grantee that it has violated any provision of these customer service standards, any terms or conditions of the customer's contract with the Grantee, or reasonable business practices. B. The Grantee's Complaint procedure shall be filed with the Grantor prior to its acceptance of a new or renewed Franchise. C. The Grantee's investigation of a Subscriber Complaint shall be concluded in no more than fifteen (15) business days after receiving the Complaint, at which time the Grantee shall notify the subscriber of the results of its investigation and its proposed action or credit. D. The Grantee shall also notify the Subscriber of his/her rights to file a Complaint with the Grantor in the event the Subscriber is dissatisfied with the Grantee's decision, and shall thoroughly explain the necessary procedures for filing such Complaints with the Grantor. The Grantor will review all Complaints against Grantee regarding quality of Service, equipment malfunctions, billing disputes, and property damage. In conducting its review, the Grantor may request additional information from the Grantee and/or Subscriber. The Grantor shall issue a determination letter within fifteen (15) days after examining the material submitted or such other time as deemed reasonable by the Grantor. The Grantor's termination shall be final, subject to the rights, remedies and procedures set forth in section 10.3 Section 7.17 SEVERABILITY If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise invalid by a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. 33 Section 7.18 EFFECTIVE DATE This Ordinance shall be in full force and effect upon its adoption and publication as provided by law. ADOPTED THIS 12tn Ce ATTEST: �eniece W. Johnson, City er surer C L L OR � �0 n. W Ia. U O a` V 0 z O 1— o DAY OF December , 2005 OF FAIRHO M 34 Date: STATE OF ALABAMA COUNTY OF BALDWIN [CABLE COMPANY NAME] (Title) The foregoing instrument was acknowledged before me on , 2005, by , the Mayor of the City of Fairhope, Alabama on behalf of the City. Notary Public STATE OF ALABAMA COUNTY OF BALDWIN The foregoing instrument was acknowledged before me on , 2005, by , the City Clerk of the City of Fairhope, Alabama on behalf of the City. Notary Public STATE OF ALABAMA COUNTY OF BALDWIN The foregoing instrument was acknowledged before me on , 2005, by , the of on behalf of the Grantee. Notary Public 35 EXHIBIT ONE AREA SERVICE MAP MAP OF THE CITY OF FAIRHOPE CORPORATE LIMITS UZ EXHIBIT TWO FRANCHISE FEE PAYMENT WORKSHEET REVENUE SOURCE NUMBER OF SUBSCRIBERS GROSS REVENUE 5% FRANCHISE FEE YTD Installation Basic Service Premium Pay -Per -View Advertising Franchise Fees Internet Service Other TOTAL 37